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- DictionaryLedg·er/ˈlejər/
noun
- 1. a book or other collection of financial accounts of a particular type: "the total balance of the purchases ledger"
- 2. a flat stone slab covering a grave: "the ledger stone of William Averie"
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What is a ledger?
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Why do companies use a general ledger?
What is a general ledger account?
ledger: [noun] a book containing accounts to which debits and credits are posted from books of original entry.
Ledger definition: an account book or digital file of final entry, in which business transactions are recorded. See examples of LEDGER used in a sentence.
LEDGER definition: 1. a book in which things are regularly recorded, especially business activities and money received…. Learn more.
LEDGER meaning: 1. a book in which things are regularly recorded, especially business activities and money received…. Learn more.
- What Is A General Ledger?
- How A General Ledger Works
- How A General Ledger Functions with Double-Entry Accounting
- What Does A General Ledger Tell You?
- A Balance Sheet Transaction Example
- An Income Statement Transaction Example
A general ledger represents the record-keeping system for a company’s financial data, with debit and credit account records validated by a trial balance. It provides a record of each financial transaction that takes place during the life of an operating company and holds account information that is needed to prepare the company’s financial statemen...
A general ledger is the foundation of a system employed by accountants to store and organize financial data used to create the firm’s financial statements. Transactions are posted to individual sub-ledger accounts, as defined by the company’s chart of accounts. The transactions are then closed out or summarized in the general ledger, and the accoun...
A general ledger is used by businesses that employ the double-entrybookkeeping method, which means that each financial transaction affects at least two sub-ledger accounts, and each entry has at least one debit and one credit transaction. Double-entry transactions, called “journal entries,” are posted in two columns, with debit entries on the left ...
The transaction details contained in the general ledger are compiled and summarized at various levels to produce a trial balance, income statement, balance sheet, statement of cash flows, and many other financial reports. This helps accountants, company management, analysts, investors, and other stakeholders assess the company’s performance on an o...
If a company receives payment from a client for a $200 invoice, for example, the company accountant increases the cash account with a $200 debit and completes the entry with a credit, or reduction, of $200 to accounts receivable. The posted debit and credit amounts are equal. In this instance, one asset account (cash) is increased by $200, while an...
The income statement follows its own formula, which works as follows. When a company receives payment from a client for the sale of a product, the cash received is tabulated in net sales along with the receipts from other sales and returns. The cost of sales is subtracted from that sum to yield the gross profitfor that reporting period. The income ...
- Will Kenton
- 2 min
Definition: A ledger is a written or computerized record of all the transactions a business has completed. These transactions are recorded in the ledger in different accounts. This list of accounts is most often called the chart of accounts. Large companies tend to have many accounts in their chart of accounts while smaller companies might only ...
Define ledger. ledger synonyms, ledger pronunciation, ledger translation, English dictionary definition of ledger. n. 1. a. A book in which the monetary transactions ...
