The ledger is an account statement book of final entry wherever transactions are recorded in separate accountings.

Common Ledger is an article of final entry summarizing all of a company's financial (fiscal) transactions, by canceling debit and credit accountings.

Ledger in Accounting

The ledger is something that helps a lot of people keep up with the income they for like a hair parlor they have to put in the ledger book what they pay everybody what they spend for the parlor what they make goes in it to thus that they know how often they can spend on things for the hair parlor and that has just something to use for us.

An article in which the monetary transactions of a business concern are based in the form of credits and debits entry is known as ledger (article in which all accountings of the business concern are saved. Effectively, a ledger is a sorting and summarization of financial (fiscal) transactions and the foundation for the preparation of the income statement and balance sheet. A ledger as well allows 1 to see the balance in a given account at a particular time in the business).


The process of accounting system includes a separate enter for each item that comes out in the financial arguments. E.g., the separate record is maintained for the cash asset, displaying all decrease and increases in cash consequent from the many transactions in which cash is paid or received. The related record is maintained for every other asset; because every liability; since all proprietors equity share and for every expenses and revenue account coming out in the earnings report.

Meaning of Ledger

The word ledger has different meanings depending on it is practice:

A ledger is an accounting system book of final accounting entry where transactions are named in separate accountings.

The general ledger is a book of final entry summarizing all of a company's financial (fiscal) transactions (dealings), by canceling credit and debit accountings.

A ledger is as well a slab of stone laid level over a sculpture.

The word ledger is as well practiced for a horizontal timber in a scaffold; connected to the verticals and sustaining the putlogs in the accounts.

Ledger Entry Example

Write out the account of Manohar from the following transactions:


Oct 1   Sold him the commodities worth Rs. 900.

Oct 5   Received from him Rs. 350 on account. Allowed him discount Rs. 10.

Oct 7   Bought from him goods worth Rs.300.

Oct 8   Returned to him goods worth Rs.25.

Oct 12   Received from him further cash Rs.100.

Oct 15   Sold him goods worth Rs.100.

Oct 18   Manohar returned goods worth Rs. 25.

Oct 20   Sent him cash Rs. 125.

Oct 26   Bought from him goods worth Rs. 125.

Ledger Entry Example

Next Chapters

Single Entry Accounting
Depreciation Dividends in Accounting
Double Entry Accounting
Cash Book
Discount Assets
Ledger in Accounting
Final Accounts
Liability Debenture
Journal Entry
National Income
Trial Balance Payroll Accounting
Drawings in Accounting
Petty Cash Book
International Trade Admission of a Partner
Book Keeping
Bill of Exchange  

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