how to post ledger in accountancy
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Journal is just a chronological record of all business transactions. But, if we want to know the net effect of various transactions affecting an item, we need to go through the whole journal. It takes time. You know that time is money in business.
Therefore, to overcome this difficulty, we maintain another book called ‘Ledger.’
Ledger is a book which contains, in a summarized and classified form, a complete record of all transactions. Since it contains complete information about various transactions, it is called the ‘Principal Book’. Final accounts of a business are prepared on the basis of ledger.
Therefore, to overcome this difficulty, we maintain another book called ‘Ledger.’
Ledger is a book which contains, in a summarized and classified form, a complete record of all transactions. Since it contains complete information about various transactions, it is called the ‘Principal Book’. Final accounts of a business are prepared on the basis of ledger.
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