What is ledger?


The entire group of accounts maintained by a company is called the ledger.

Ledgers are of various types, such as

  1. Subsidiary ledger,
  2. Perpetual ledger,
  3. Periodic ledger,
  4. General ledger,
  5. 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.