Ledger
What is a Ledger?
A ledger is a ‘book’ of accounts.
![ldg1](https://seeaccountingnow.online/wp-content/uploads/2020/04/ldg1.jpg)
How it Works
The double-entry accounting system is based upon a series of accounts.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/ldg2.jpg)
Collectively, these accounts form something known as the general ledger.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/ldg3.jpg)
The accounts within the general ledger are known as ledger accounts.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/ldg4.jpg)
Each ledger account is attached to one of the various account categories contained in the general ledger.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/ldg5.jpg)
They provide a separate record of transactions in each area of the system.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/ldg6.jpg)
Each transaction is recorded with either a debit entry or a credit entry.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/ldg7.jpg)
The account will also have a balance.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/ldg8.jpg)
© R.J. Hickman 2020