Courses » SS1 » SS1 Accounting » The Ledgers – Meaning And Types - SS1 Accounting Lesson Note

The Ledgers – Meaning And Types - SS1 Accounting Lesson Note

Ledgers refer to the books or records that are used to store all financial transactions of a business in a systematic and organized manner. A ledger contains a detailed record of all transactions for each account in the business, including the account name, date of the transaction, and the amount involved. There are two main types of ledgers, namely the general ledger and the subsidiary ledger.

The general ledger contains all the accounts of a business, including assets, liabilities, equity, revenue, and expenses. It serves as a summary of all transactions and provides a complete financial picture of the business. Each account in the general ledger has its own unique identification number or code. This type of ledger is usually maintained by the accountants or the financial department of the business.

On the other hand, the subsidiary ledger is used to keep detailed records of a specific type of transaction or account, such as accounts receivable or accounts payable. It provides a more detailed breakdown of transactions for specific accounts, which is useful for tracking and managing them. The subsidiary ledger is typically maintained by the departments that are responsible for the specific accounts, such as sales or procurement.  Ledgers are crucial to the accounting and financial management of a business as they provide a comprehensive record of all transactions, which is necessary for monitoring and managing the financial health of the business. 

Recommended: Questions and Answers on The Ledgers – Meaning And Types for SS1 Accounting
Please share this, thanks:

Add a Comment

Notice: Posting irresponsibily can get your account banned!

No responses