Question

Answer in one sentence only :
What do you mean by Ledger?

Answer 1

Ledger is the book where the transactions of similar nature pertaining to a person, asset, liability, income or expenditure are drawn from the journal or subsidiary book where the transactions are recorded in a chronological order an posted account wise in the ledger account.

Ledger maintains all types of account, i.e. Personal, Real and Nominal account.

When transactions are recorded in the journal (Book of Original entry), these are transferred or posted to their respective accounts in ledgers. These are called Book of Secondary Entry.

Ledger contains all accounts of a business enterprise, irrespective of whether they are personal, real or nominal.