A ledger is a book or collection of accounts in which account transactions are recorded. Each account has an opening or carry-forward balance and would record transactions as either a debit or credit in separate columns and the ending or closing balance.

What is a ledger book used for?

A ledger is a book containing accounts in which the classified and summarized information from the journals is posted as debits and credits. It is also called the second book of entry. The ledger contains the information that is required to prepare financial statements.

What is ledger example?

A ledger account contains a record of business transactions. It is a separate record within the general ledger that is assigned to a specific asset, liability, equity item, revenue type, or expense type. Examples of ledger accounts are: Cash. Accounts receivable.