A ledger is a chronological record of all financial transactions made by a business. It is used to keep track of income, expenses, assets, and liabilities, and is essential for creating financial statements such as the balance sheet and income statement.

In a ledger, each transaction is recorded in a separate account, with debits on one side and credits on the other. The ledger helps businesses maintain accurate and up-to-date financial records, which are essential for making informed decisions and tracking the financial health of a company.

There are two main types of ledgers: the general ledger and the subsidiary ledger. The general ledger contains all accounts related to a company’s financial transactions, while the subsidiary ledger breaks down specific accounts, such as accounts receivable or accounts payable.

Overall, a ledger is a crucial aspect of accounting that helps businesses monitor their financial performance and make informed decisions to ensure long-term success.#25#