Advantages of ledger
Ledger is a primary or main book which includes all the accounts in which the transactions recorded in the books of original entry are transferred. Ledger is also called the ‘Book of Final Entry’ or ‘Book of Secondary Entry’, because the transactions are lastly incorporated in the Ledger. The following are the advantages of ledger.
Preparation of Trial Balance:
It is not probable to arrange a Trial Balance without ledgers. Because, a Trial Balance is prepared by taking up the ledger accounts balance.
With the help of ledger balances, Trial balance can be prepared to know the arithmetical accuracy of accounts.
Complete information at a glance:
All the transactions pertaining to an account are collected at one place in the ledger. By looking at the balance of that account, one can understand the collective effect of all such transactions at a glance.
The data supplied by various ledger accounts are summarized, analyzed and interpreted for obtaining various accounting information.
Result of Business Operations
It facilitates the preparation of final accounts for ascertaining the operating result and the financial situation of the business apprehension.