The ledger is a book which contains a condensed and classified record of all the pecuniary transactions of the business generally brought, transferred or posted from the books of original entry.Ledger is called the king of all books of accounts because all entries from the books of original entry must be posted to the various accounts in the ledger. It should be noted that journal contains a chronological record while ledger contains a classified record of all transactions.
Maintaining the record of financial transactions and financial day to day business activities is called bookkeeping. The basic purpose of bookkeeping is to maintain the financial records of a business clean, transparent and up to date. Bookkeeping provides the basic financial information which later
Ledger: Learning Objectives: Define and explain the term ledger. What are the main advantages of ledger? What is the difference between ledger and journal? Explain the method of posting. What are the different methods of preparing a trial balance? Why a trial balance is
Advantages of Ledger Learning Objectives: What are the main advantages of ledger? The following are the advantages derived from ledger: It is the ledger through which successful application of double entry system of bookkeeping is ensured. Each and every transaction is divided into two
Definition and Explanation of Cash Book: Learning Objectives: Define and explain cash book. How a cash book is balanced. Prepare a format of the simple cash book. Cash book is a book of original entry in which transactions relating only to cash receipts and
Definition and Explanation of Ledger: Learning Objectives: Define and explain the term “ledger” What are the features or characteristics of ledger? When all the transactions of a given period have been journalised, the next thing is to classify them according to the accounts affected.
Definition and Explanation of Accounting: Learning Objectives: Define and explain accounting. What are the main functions of accounting? Accounting is defined as “the art of recording, classifying and summarizing in terms of money transactions and events of a financial character and interpreting the results