explain ledger step by step
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In bookkeeping and accounting, a ledger is a book (or record) for collecting historical transaction data from a journal and organizing entries by account.
The ledger provides the transaction history and current balance in each accounting system account, throughout the accounting period. At the end of the period, ledgers, therefore, serve as the authoritative source of data for building a firm's financial accounting reports.
The Income statement is mostly a summary of account activity for the period in the firm's Revenue and Expense Accounts.
The Balance sheet is mostly a summary of the current balances in the firm's Assets, Liabilities, and Equities accounts, as they stand at the period end.
Sections below further define, explain and illustrate ledger. Note especially that the term appears in context with related terms and concepts, including the following:
General Ledger
Nominal Ledger
Journal
Daybook
Posting
T-account
Controlling Account
Accounting Cycle
Account
Chart of Accounts
Debit
Credit
Continuous Accounting
Sub-Ledger
Master Account
The ledger provides the transaction history and current balance in each accounting system account, throughout the accounting period. At the end of the period, ledgers, therefore, serve as the authoritative source of data for building a firm's financial accounting reports.
The Income statement is mostly a summary of account activity for the period in the firm's Revenue and Expense Accounts.
The Balance sheet is mostly a summary of the current balances in the firm's Assets, Liabilities, and Equities accounts, as they stand at the period end.
Sections below further define, explain and illustrate ledger. Note especially that the term appears in context with related terms and concepts, including the following:
General Ledger
Nominal Ledger
Journal
Daybook
Posting
T-account
Controlling Account
Accounting Cycle
Account
Chart of Accounts
Debit
Credit
Continuous Accounting
Sub-Ledger
Master Account
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