What is a Ledger in Accounting?

As an accountant, you should be familiar with accounting books. Now the understanding of the general ledger is comprehensive bookkeeping, which is a collection of accounts that are used in a company, and these accounts must be arranged regularly according to account classification. Click here what is a ledger for more detailed information about ledger in accounting.

What is the difference between an account and a ledger?


The group name of an amount of money based on expectations, goals, and requirements, Example: Expense Account, contains the amount of money on various costs, and when added will be on the debit side. There are five accounts, namely, assets, debt (debt), capital, income, and expenses.


Books that record the sum of all values with the current balance in each account, these ledgers can be filled out in general journals. So it is like there is a mixed notebook (General Journal), and then from the blended notes, it will be divided into each subject (Big Book).

What is the purpose of the ledger?

A general ledger is a tool used to record changes that occur in an account that is caused by a financial transaction. This book contains estimates that summarize the effect of financial transactions on changes in some accounts such as assets, liabilities, and company capital.

What are Ledger and its features?

It is essential to remember about the estimated number of books that are needed/recorded by different companies because it depends on the company’s wealth and finance, type of activity, transaction volume, and information the company wants.

The data in the ledger is not detailed because the accounts in the ledger do not reflect complete data, such as financial accounts, accounts receivable, and merchandise inventory. To see the reports needed, other considerations are grouped in a book or a collection of cards called subsidiary ledgers or subsidiary ledgers. That way, there is a debt subsidiary ledger, accounts receivable subsidiary ledgers, and merchandise subsidiary ledgers.

What is Ledger’s example?

The complete list of accounts that appear and are used in General Journals and ledger entries is called the Chart of Accounts (CoA). In the Big Book, each active account from the CoA list is neatly arranged. These accounts are numbered sequentially according to the type of account itself. For example, because cash, reports, and inventory accounts are part of Current Assets, generally, each of these accounts is given a starting number “1”. Then for accounts such as buildings, vehicles, and the accumulated depreciation that is part of Fixed Assets are generally provided the first number “2”, and so on.

What is the importance of ledger?

Ledger is essential because it could help you to :

  • Summarize transaction data that has been recorded in general journal books.
  • Classifying financial data and to find out the number or condition of the actual account or account, whether there is a difference or not.
  • It is classifying transactions that exist in previous journals or general journals.
  • As for completeness in the preparation of financial statements.

What are the items on the ledger?

Real or real accounts are the accounts that appear on the balance sheet, such as assets, debt, liabilities, and capital. (Definition and Easy Way to Calculate Cost of Goods Sold)

Nominal accounts or nominal accounts are the accounts contained in the income statement, which includes income and expense accounts. (Complete Direct and Indirect Method Cash Flow Statement With Examples and Descriptions)

How many types of the ledger are there?


The T-form of an accounting ledger is the simplest ledger and is only shaped like a large T. The left side will show the debit side and the right side shows the credit side. The account name is placed on the top left, and the account code is placed on the top right.

Skontro Form

The accounting ledger control is a general ledger called the two-column form. Skontro means next to or next to two, namely next to debit and next to credit.

Forms of Staff in a Single Balance Column

The type of single-columned staff balance in an accounting ledger in the way of a book that is used if there is a need for an explanation of many real-time transactions.

Staffle Form in Double Balance Column

The form of staffle in a double balance column in an accounting ledger is in the way of a book that is almost the same as a single balance column. The only difference in this book is that the balance column is divided into two columns, the debit column, and the credit column.

That’s a brief explanation of the meaning, function, and form of the accounting ledger. The general ledger must be owned by every company to help manage finances well. To make ledgers easily, you can use Journal accounting software. By using journals, you can not only make ledgers, but you can also make entire financial reports instantly.