A ledger form an integral part of the accounting records. A ledger consists of various individual ledger accounts. Recording of a financial transaction occurs in the book prime/first entry, either a cashbook (banking / cash transaction) or a journal (non-banking / non-cash transactions) and posted to individual ledgers account(s) in the ledger - book of second entry.

Chapter 5: Ledgers

Payfast

A general ledger represents the record-keeping system for a company’s financial data, with debit and credit account records validated by a trial balance. It provides a record of each financial transaction that takes place during the life of an operating company and holds account information that is needed to prepare the company’s financial statements. Transaction data is segregated by type into accounts for assets, liabilities, owners’ equity, revenues, and expenses.

Skill Level: Intermediate