Ledger
Business transactions are first entered in Journal or subsidiary books. The
next step is to transfer the entries to respective accounts in Ledger. In
other words, all entries recorded in Journal or Subsidiary Books are
classified and in order to ascertain the position of a particular account, all
transactions relating to that particular account are collected at one place in
the Ledger. In short, a ledger is a book which contains all accounts of the
business enterprise whether Personal, Real, Nominal.
“The book which contains a classified and permanent record of all the
transactions of a business is called the Ledger”
- L.C.
Cropper
Advantages of Ledger:
a) Easy to understand the collective effect of all transaction
b) Easy excess of information
c) Help in preparing Trial balance
d) Help in preparing Trading and Profit & Loss A/c
e) Help in preparing Balance Sheet
