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Explain the meaning of ledger and its features?

Category : Accounting | Answer: 1 29 Days Ago

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All the accounts identified on the basis of transactions recorded in different journals/ books such as Cash Book, Purchase Book, Sales Book etc. will be opened and maintained in a separate book called Ledger. So a ledger is a book of account; in which all types of accounts relating to assets, liabilities, capital, expenses and revenues are maintained. It is a complete set of accounts of a business enterprise

 Ledger is bound book with pages consecutively numbered. It may also be a bundle of sheets.

 Features of Ledger 

  • Ledger is an account book that contains various accounts to which various business transactions of a business enterprise are posted.
  • It is a book of final entry because the transactions that are first entered in the journal or special purpose Books are finally posted in the ledger. It is also called the Principal Book of Accounts.
  • In the ledger all types of accounts relating to assets, liabilities, capital, revenue and expenses are maintained.
  • It is a permanent record of business transactions classified into relevant accounts.
  • It is the ‘reference book of accounting system and is used to classify and summarise transactions to facilitate the preparation of financial statements.
29 Days Ago
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