The ledger is a permanent summary of all amounts entered in supporting journals (day books) which list individual transactions by date. Usually every transaction, or a total of a series of transactions, flows from a journal to one or more ledgers. Depending on the company's bookkeeping procedures, all journals may be totaled and the totals posted to the relevant ledger each month. At the end of the accounting period, the company's financial statements are generated from summary totals in the ledgers.[2]
Sales ledger (debtors ledger): records accounts receivable. This ledger records the financial transactions between the company and its customers. This shows which customers owe money to the business, and how much.
Purchase ledger (creditors ledger): records transactions between the company and its suppliers (i.e. usually purchases by the company). This shows to which suppliers the business owes money, and how much.
For every debit recorded in a ledger, there must be a corresponding credit, so that overall the total debits equal the total credits.
Etymologyedit
Ledger from 1828
The term ledger stems from the English dialect forms liggen or leggen, meaning "to lie or lay" (Dutch: liggen or leggen, German: liegen or legen); in sense, it is adapted from the Dutch substantive legger, properly "a book lying or remaining regularly in one place". Originally, a ledger was a large volume of scripture or service book kept in one place in church and openly accessible. According to Charles Wriothesley's Chronicle (1538), "The curates should provide a booke of the bible in Englishe, of the largest volume, to be a ledger in the same church for the parishioners to read on."
In application of this original meaning the commercial usage of the term is for the "principal book of account" in a business house.
Distributed ledger, sometimes called a shared ledger, is a consensus of replicated, shared, and synchronized digital data geographically spread across multiple sites, countries, and/or institutions.[5]
Notesedit
^From the English dialect norms liggen or leggen, to lie or lay; in sense adapted from the Dutch substantive legger
^Haber, Jeffry (2004). Accounting Demystified. New York: AMACOM. p. 15. ISBN0-8144-0790-0.
^"What is a Ledger?". Online Learning for Sports Management. Retrieved 27 September 2018.
^Whiteley, John. "Mr". Moncton Accountant | John Whiteley CPA. John Whiteley CPA. Retrieved 1 July 2017.[permanent dead link]
^ Distributed Ledger Technology: beyond block chain (PDF) (Report). UK Government, Office for Science. January 2016. Retrieved 29 August 2016.
Look up ledger in Wiktionary, the free dictionary.
Business Owner's Toolkit: General Ledger 2012-03-15 at the Wayback Machine from Wolters Kluwer
General Ledger Entries from NetMBA Business Knowledge Center
February 15, 2024
ledger, other, uses, disambiguation, ledger, book, collection, accounts, which, accounting, transactions, recorded, each, account, opening, brought, forward, balance, list, transactions, each, recorded, either, debit, credit, separate, columns, usually, with, . For other uses see Ledger disambiguation A ledger 1 is a book or collection of accounts in which accounting transactions are recorded Each account has an opening or brought forward balance a list of transactions each recorded as either a debit or credit in separate columns usually with a counter entry on another page and an ending or closing or carry forward balance Macon Knoxville Store Ledger 1825 1831 Contents 1 Overview 2 Etymology 3 See also 4 Notes 5 References 6 Further readingOverview editThe ledger is a permanent summary of all amounts entered in supporting journals day books which list individual transactions by date Usually every transaction or a total of a series of transactions flows from a journal to one or more ledgers Depending on the company s bookkeeping procedures all journals may be totaled and the totals posted to the relevant ledger each month At the end of the accounting period the company s financial statements are generated from summary totals in the ledgers 2 Ledgers include 3 Sales ledger debtors ledger records accounts receivable This ledger records the financial transactions between the company and its customers This shows which customers owe money to the business and how much Purchase ledger creditors ledger records transactions between the company and its suppliers i e usually purchases by the company This shows to which suppliers the business owes money and how much General ledger consists of the five main 4 citation needed account types assets liabilities income expenses and equity For every debit recorded in a ledger there must be a corresponding credit so that overall the total debits equal the total credits Etymology edit nbsp Ledger from 1828The term ledger stems from the English dialect forms liggen or leggen meaning to lie or lay Dutch liggen or leggen German liegen or legen in sense it is adapted from the Dutch substantive legger properly a book lying or remaining regularly in one place Originally a ledger was a large volume of scripture or service book kept in one place in church and openly accessible According to Charles Wriothesley s Chronicle 1538 The curates should provide a booke of the bible in Englishe of the largest volume to be a ledger in the same church for the parishioners to read on In application of this original meaning the commercial usage of the term is for the principal book of account in a business house See also editBookkeeping Debits and credits Specialized journals Final accounts Distributed ledger sometimes called a shared ledger is a consensus of replicated shared and synchronized digital data geographically spread across multiple sites countries and or institutions 5 Notes edit From the English dialect norms liggen or leggen to lie or lay in sense adapted from the Dutch substantive legger Haber Jeffry 2004 Accounting Demystified New York AMACOM p 15 ISBN 0 8144 0790 0 What is a Ledger Online Learning for Sports Management Retrieved 27 September 2018 Whiteley John Mr Moncton Accountant John Whiteley CPA John Whiteley CPA Retrieved 1 July 2017 permanent dead link Distributed Ledger Technology beyond block chain PDF Report UK Government Office for Science January 2016 Retrieved 29 August 2016 References edit nbsp This article incorporates text from a publication now in the public domain Chisholm Hugh ed 1911 Ledger Encyclopaedia Britannica 11th ed Cambridge University Press Further reading edit nbsp Wikimedia Commons has media related to Ledgers nbsp Look up ledger in Wiktionary the free dictionary Business Owner s Toolkit General Ledger Archived 2012 03 15 at the Wayback Machine from Wolters Kluwer General Ledger Entries from NetMBA Business Knowledge Center Retrieved from https en wikipedia org w index php title Ledger amp oldid 1206274786, wikipedia, wiki, book, books, library,
