Define Ledger. Also write down the list of “sub-division of Ledger”

The ledger is a book which contains a classified record of all similar transactions of the business, brought from the journal or from books of original entry.

Note: the record kept in ledger is called “classified record” or “condensed record”.

Types of ledger

 

Ledger accounts can be prepared in the following two ways:

1-      “T” accounts form/Traditional/Standard/Conventional form (British)

2-      Running Balance Form/Modern Form (American)

 

Different names of ledger

Ø  Secondary book

Ø  Book of final entry

Note: ledger is King of all books of accounts.

Sub-division of Ledger:

1.      Debtors’ Ledger or customers’ Ledger or sales Ledger.

2.      Creditors’ Ledger or Suppliers’ Ledger or purchase Ledger

3.      General Ledger or nominal Ledger.