Question

What do you understand by Ledger?

Answer 1

A ledger is a principal book of accounts containing separate accounts for each debtor, creditor, asset, liability, income, and expense. It records all transactions classified and summarised, with each account given its own page. It is known as the “book of final entry” because entries are posted here from the journal. The ledger helps ascertain balances and prepares the final accounts, such as trial balance and financial statements.