What is ledger ?-Definition of all finance terms

Definition of ledger

Ledger is the accumulation of a whole group of comparable records in double-entry bookkeeping. Likewise called a book of final entry, a ledger records grouped and condensed money-related data from journals as charges and credits and demonstrates their present adjustments. It is one of the essential functions for managing records in the execution of double-entry transactions.

Brief Explanation of ledger

According to the nature of transitions, it has been used by accountants, which shows a managed record of transactions. This record serves as the basis for preparing a company’s external financial reports. There is a number of functions that have been done due to this. After maintaining this ledger, all these mentioned records or transactions have been trailed and adjusted for the integrated results. The purpose of managing this ledger and its record is to execute the final step, which is reporting all the mentioned transactions to the final consumer of that record, whether it’s a business analyst or an external user.

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