Question

Ledger is known as the book of original entry.

• A. True
• B. False

Answer 1

The correct option is B False

A ledger is known as the book of final entry or secondary entry whereas, a Journal is known as the book of original entry because all the transactions of a business are first of all recorded in the Journal from the source document and from the Journal, these entries are posted to the Ledger accounts. Hence, a ledger is known as the book of secondary entry or final entry, as they are posted from the Journal and the balances of these accounts are used to prepare the financial statements of the business.