Definition
The entire group of accounts maintained by a company is called the ledger.
Ledgers are of various types, such as
- Subsidiary ledger,
- Perpetual ledger,
- Periodic ledger,
- General ledger,
- Control ledger.
Importance of Ledger
The helps of a ledger in the recording process are pointed out below:
- It keeps in one place all the information about changes in specific account balances.
- It provides a permanent record book of all accounts.
- It provides management with the balances in various accounts.
- It is the source of all accounts.
- It acts as a register book all accounts.
