Question

Ledger is an account book in which ______________.

• A. only real accounts are opened
• B. only real and personal accounts are opened
• C. all the real, personal and nominal accounts are opened
• D. None of the above

Answer 1

The correct option is C all the real, personal and nominal accounts are opened

Business transactions are first entered in Journal or Special Purpose Subsidiary Books. The next step is to transfer the entries to respective accounts in ledger. In other word, all entries recorded in journal or special purpose subsidiary books are classified and in order to ascertain the position of a particular account, all transactions relating to that particular account are collected at one place in the ledger. In short, a ledger is a book which contains all accounts of the business enterprise whether Real, Personal or Nominal. Ledger is called the "Principal Book'. It is also called the book of final entry because the transactions which are first entered in journal or subsidiary books are finally incorporated in the ledger.