TeachMeFinance.com - explain
Ledger -- The principal book of accounts in which all transactions
of each day are entered under appropriate heads so as
to show the debits and credits of each account.
historic accounting definition (British)...
This is the principal book of account, and in it
the items are classified under the various headings
to which they belong, accounts being kept fos
persons from whom goods are purchased, persons
to whom goods are sold, the various expenser
incurred in conducting the business, the goods dealt in, and the real property of the firm, such as
machinery, fittings and fixtures, the capital and
reserves, and the Profit and Loss Accounts and
Balance Sheets. It is entered by each transaction
being posted to the debit of the account which is
the receiving account in respect to the transaction,
and to the credit of the account which is the
sending account of the particular transaction.
Ledgers, in the case of a business of any size,
are divided into
(a) Purchases, Bought, or Credit Ledger.
(b) Sales, Sold, or Debit Ledger.
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