Ledgers
A ledger is a record of accounts. These accounts are recorded separately showing their beginning/ending balance. A journal lists financial transactions in chronological order without showing their balance but showing how much is going to be charged in each account. A ledger takes each financial transactions from the journal and records them into the corresponding account for every transaction listed. The ledger also sums up the total of every account which is transferred into the balance sheet and income statement. There are 3 different kinds of ledgers that deal with book-keeping. Ledgers include:
- Sales ledger, which deals mostly with the accounts receivable account. This ledger consists of the financial transactions made by customers to the business.
- Purchase ledger is a ledger that goes hand and hand with the Accounts Payable account. This is the purchasing transaction a company does.
- General ledger representing the original 5 main accounts: assets, liabilities, equity, income, and expenses
Read more about this topic: Bookkeeping
Famous quotes containing the word ledgers:
“Those who believe in their truth—the only ones whose imprint is retained by the memory of men—leave the earth behind them strewn with corpses. Religions number in their ledgers more murders than the bloodiest tyrannies account for, and those whom humanity has called divine far surpass the most conscientious murderers in their thirst for slaughter.”
—E.M. Cioran (b. 1911)