The a book which contains various accounts. It contains of the Enterprise whether real or personal or nominal to which the transaction recorded in the books of original entry are transferred. All debit and credit aspects. Which are recorded in the journal are transferred to the respective Accounts in the ledger.
Advantages of ledger
A. It provides complete information about all accounts in one book
B. It is easy to ascertain how much money is due to suppliers ledger and how much money is due from customer
C. It enables to ascertain, what are the main items of revenues/incomes
D. It enables to ascertain what are the main items of expenses.
E. It enables to know the kind of assets the Enterprise holds and their respective valued
F. It facilitates preparation of trial balance and thereafter preparation of financial statement i.e. profit and loss Accounts and balance sheet.
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