Ledger

A ledger is a book or digital record containing all financial transactions of a business, organized by account. The general ledger is the master record from which financial statements are prepared.

Each transaction is recorded in the ledger using double-entry bookkeeping, with debits and credits. Modern accounting software maintains digital ledgers automatically. The ledger provides the foundation for financial reporting and analysis. Transactions are posted as journal entries that roll up into a trial balance, often in a core banking system.

Related Terms

Balance Sheet

A balance sheet is a financial statement that reports a company's assets, liabilities, and sharehold...

Debit

In banking, a debit is a transaction that decreases the balance in your account. On your bank statem...

Credit

In banking, a credit is a transaction that increases the balance in your account. On your bank state...

Reconciliation

Reconciliation is the process of comparing two sets of records to ensure they match - typically comp...

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