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

Written by Irfanullah Jan