Ledger is book or register in which all the accounts of a business are grouped, each one on separate page. Each account has a unique reference number which is helpful in posing process.

Smaller businesses use a single ledger to manage all its transactions.

General Ledger

A ledger which contains general or main accounts is called General Ledger. Main accounts are those whose balances are displayed in major financial statements. General journal is divided into following imported categories:

  1. Assets
  2. Liabilities
  3. Owner's equity
  4. Revenue
  5. Expense
  6. Gains
  7. Losses

Subsidiary Ledger

Subsidiary ledgers are detailed records of some of the accounts in general ledger like accounts receivable and accounts payable. Following are the important subsidiary ledgers:

  1. Accounts Receivable Subsidiary Ledger
  2. Inventory Subsidiary Ledger
  3. Accounts Payable Subsidiary Ledger

by Irfanullah Jan, ACCA and last modified on

XPLAIND.com is a free educational website; of students, by students, and for students. You are welcome to learn a range of topics from accounting, economics, finance and more. We hope you like the work that has been done, and if you have any suggestions, your feedback is highly valuable. Let's connect!

Copyright © 2010-2024 XPLAIND.com