Question

Utilty of ledger.............??

Answer 1

Answer:

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The utility of Ledger are as follows :-

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•Ledger provides information about the assets of the firm because a record of every assets is kept in the ledger.

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•Ledger gives a clear picture of the purchases and sales made during the accounting period.

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•Ledger provides knowledge about incomes and expenses of the business.

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•Ledger is helpful in judging the airthmatical accuracy of accounts. The trial balance is prepared from Ledger.

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•Ledger serves as the basis of preparing the profit and loss account. Therefore, it helps in knowing the profit and loss during the accounting period.

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