Ledger - LEDGER Ledger is the main book of accounts It is...

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LEDGER Ledger is the main book of accounts. It is the most important book of accounting system. It contains an account for each asset, liability, Proprietorship,revenue and expances account to which the transa- ctions recorded in the book of orginal entry are posted. Ledger is the ultimate destination of all transctions.It is also called book of “ final -entry” . In ledger the information is classified by nature and relevan- ce. The ledger includes all the basic accounts needed for the preparation of the financial statements. MAIN FEATURES OF LEDGER Following are some of the main features of ledger. It is the principal or primary book of accounts. The transactions are classified under appropriate heads called accounts. The information contained in the ledger account can be used to draw the conclusion regarding status of any account. The acconts contain the encoded and summaries of all the related transactions. It is the basic of prepairing the finl account. It helps us in achieving the objectives of accounting. It gives answers to the following pertinent questions What are the total sales to the individual customer ? What are the total purchases from an indivisual supplier ? How much amount is owed by others ? What is the amount of profit or loss made during a particular period ? What is the financial position of the firm on a particular date ? The ruling of each account in ledger is as follows Dr Cr Date Particulars F. Amount Date Particulars F. Amount To name of credit A/c Rs. By name of debit A/c 1
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