Ledger is a main and principal book which has different sets of accounts. Ledger is called as the mirror of all transactions relating to a particular period.All the entries relating to particular accounts are summarized in to that accounts. There may be so many account heads in a business firm. To know the total transactions relating to all the accounts, we have to see the ledger which is having all the accounts. For example business firms have different account heads like:- Purchase account, Sales Account, Freight Account, Salary account, Wages Account, Printing & stationery account, Rent account, Commission account,  Bank interest account, Office maintenance expenses account, Conveyance expenses account, Traveling expenses account, Advertisement expenses account etc.

Now, question arises that how a person will know the exact position of a particular account? Answer is very simple if we summarize all the entries from different day books in to the related accounts then only we can know the right position. It means the transaction relating to a particular account are first recorded in purchase day book, sales day book,bank book, cash book, journal register etc. but to collect all these entries at one place, we have to take the help of ledger which contains all these accounts.

Different sets of ledgers may be kept by the company as per their requirement. For example:- Customer’s ledger, Supplier’s ledger, Loans and advances ledger and General ledger etc. Every page of ledger contains the following particulars:-

  1. Page number of ledger account
  2. Name of account
  3. Date
  4. Particulars
  5. L/F
  6. Amount Dr.
  7. Amount Cr.
  8. Balance with a sub column Dr. or Cr.

Totals of  Debit and credit side of all accounts are done on daily or weekly or monthly basis as per the requirement of the company and then the balancing is done. Separate ledgers are prepared for a new financial year.

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