Resource Description


Ledger is the book that contains all sets of accounts such as Personal, Real and nominal account.  This is the most important book for any business and hence it is called as the king of all books.  It is also known as the book of final entry.

The main difference between journal and ledger is that journal does not serve as the basis for the preparation of Trial balance but Trial balance can be prepared with the help of balances from ledger which also serve as the basis for the preparation of financial statements such as income statement and balance sheet.


The important feature of ledger is that the balances from personal accounts and real accounts are carried forward to the next accounting year but the balances from nominal accounts are not carried forward.  They are closed by transferring to Trading and Profit and loss account.

Then in this Unit, detailed explanation was given for procedure for posting, procedure for balancing an account, how to deal with an opening entry and compound entry.

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