A ledger in accounting is a crucial tool used by businesses to record and track their financial transactions. It is a complete collection of accounts used by a company to keep all financial records organized. The ledger contains various accounts such as assets, liabilities, revenue, and expenses.

One of the main purposes of a ledger is to provide a detailed record of all transactions that occur within a company. This helps in maintaining accurate financial records, assessing the financial health of the business, and making informed decisions based on the financial data.

Each transaction is recorded in the ledger in a specific account using a double-entry system, where every debit has a corresponding credit. This ensures that the ledger remains balanced and accurate.

Overall, a ledger is an essential tool in accounting and bookkeeping, providing businesses with a clear overview of their financial position and helping them make informed financial decisions.#25#