What Does Ledger Balance Mean?


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Lakshmipriya Nair Profile
Ledger balance is the name of an account balance. It refers to the result of the total debit and credit activity as of a specific date and time. It is an account at the beginning of each day after all activity for the previous day has been posted to the account. It is also known as the current balance. It is therefore a reference to the customer's account balance just as it is on a Bank Statement. Bank Statement is nothing but a form prepared by the bank and sent to the depositor to show transactions in the account.

A ledger balance is different from an Available Balance. A ledger balance is maintained with the sole function of assisting the squaring off of book balances. Thus a ledger balance is the result that is derived after all the transactions have been posted to the customers' account, regardless of whether the funds actually have been collected or paid.

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