There are basically three different types of ledger. They are sales ledger, purchases ledger and general ledger. Sales ledger is the book or set of books that contain all credit customers personal accounts. Purchases ledger is the book or set of books that contain all credit suppliers personal accounts. General ledger contains all other accounts (real and nominal accounts)
The book that contains the accounts in book keeping is known as ledger. Ledgers are also referred to in accounting as the principal books of accounts. Accounts are basically of three types; real, personal and nominal. The Real accounts are those that are concerned with property and assets. Personal accounts are those that refer to accounts of a person and nominal accounts are concerned with incomes, gains and expenses and losses. The purchase and sales books are not ledgers but are records of those transactions, whereas a cash or bank book is a kind of subsidiary book. Journals are books in which the entries are originally made and then transferred to the respective accounts of the ledgers. There can be a whole range of ledger accounts including goods account, creditors account, profit and loss account, trading account, salaries account etc. At the end of the year a statement of the position of assets and liabilities is prepared known as the balance sheet.
Ledger is one of the most important documents of accounting. It is the main accounting record for a business. This record makes use of the double entry bookkeeping.
It is basically a collection of a group of accounts that supports all the items which are shown in the major financial statements like Balance sheet etc. All the accounts are grouped in seven basic categories which are: Assets, liabilities, Owner's equity, Revenue, Expense, Gains and losses.
