Ledger



 

          Ledger Accounts


  • Ledger account is a summary  of all the transactions relating to journal entries.  
  • It shows their net effect in a given period  in various accounts.
  • Ledger is known as principal book of accounts. 
  • The ledger accounts are prepared based on journal entries passed.
  • The financial statements can be prepared from the ledger balances
  • It can be prepared for ascertaining net profit or loss and the financial position.
  • Normally one page or one sheet may be provided for one account. 
  • Where computerized accounting is followed, once the transactions are recorded in the journal, ledger accounts are  automatically prepared.

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