Meaning of ledger :

A ledger refers to a book or electronic record that holds detailed and organized records of all financial transactions for a business.

1. General Ledger: this term refers to a set of records that all businesses have, which allows them to synthesize what they see written in journals about transactions.


2. Sales Ledger: refers to an account’s book that captures sales on credit to clients who owe the business money.


3. Purchases Ledger: A ledger containing information about the goods or services purchased on credit by a company can be considered this.


4. Cash Ledger: These are kept separately at any given time and therefore they should also go beyond their own amount field where cash movement transpires.


5. Private Ledger: Refers to a set of accounts that have limited access, including owners equity and salaries, and are kept secluded from other ledgers.

1. Personal Accounts: Relate to individuals, firms, or companies. Examples include customer accounts (Accounts Receivable) and supplier accounts (Accounts Payable).


2. Real Accounts: Stand for assets and properties owned by the business. Cash, machinery, buildings and inventory are examples of such.


3. Nominal Accounts: Refer to income, expenses, losses and gains. Accounts for sales, rent, salaries or utilities are just a few examples of this kind of account.