Ledger
Ledger (alternatively known as general ledger; hereinafter, the Ledger) is the book of final entry that represents all financial accounts of a legal entity. The Ledger's data is originated from book of original entry and taken either directly or through financial reports such as income statement.
On the contrary to any book of original entry that groups data in chronologically-recorded financial transactions, the Ledger groups data in separate financial accounts. Each financial account on the chart of accounts has its separate section, usually one or more pages, in the Ledger. This section lists all the debits or credits made against the financial account. Every ledger section is totaled periodically, but at least once, at the end of every fiscal year.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Ledger. A group of accounts that records data from business transactions.
Related concepts
- Bookkeeping. Recording, filing, and retrieving of financial data, as well as producing those financial reports that are required by laws.
