What Is A Need And Importance Of Ledger?


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Maintaining of ledger is a must in every accounting system. It is necessary as will be clear from its advantages.

Transactions relating to a particular person, item or heading of expenditure or income are grouped in the concerned account at one place.

When each account is periodically balanced it reflects the net position of that account.

Ledger is the stepping stone for preparing Trial Balance - which tests the arithmetical accuracy of the accounting books.

Since the entries recorded in the journal are referenced into ledger the possibility of errors of defalcations are reduced to the minimum.

Ledger is the destination of all entries made in journal or sub-journals.

Ledger is the "store-house" of all information which subsequently is used for preparing final accounts and financial statements.

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