What is a Ledger?
A ledger is an accounting book that facilitates the transfer of all journal entries in a chronological sequence to individual accounts. The process of recording journal entries into the ledger is called posting.
Type of ledger collect information from
General Ledger
The general ledger accumulates information from journals. Each month all journals are totalled and posted to the General Ledger. The purpose of the General Ledger is therefore to organise and summarise the individual transactions listed in all the journals.
Debtors Ledger
The Debtors Ledger accumulates information from the sales journal. The purpose of the Debtors Ledger is to provide knowledge about which customers owe money to the business, and how much. More information on Debtors Ledger
Creditors Ledger
The Creditors Ledger accumulates information from the purchases journal. The purpose of the Creditors Ledger is to provide knowledge about which suppliers the business owes money, and how much.
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