Page 83 - Book-keeping for Secondary Schools Student’s Book Form One

Ledgers

Chapter Five

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Ledgers

Introduction

Ledgers plays a crucial role in accounting and financial management for

enterprises. They serves as a key component of the accounting process, because
the balances from ledgers form contents of financial statements. Posting of entries
to the ledger involves posting the entries to both subsidiary and general ledgers.

In this chapter, you will learn concept of a ledger and the posting of entries to
the ledgers. The competencies developed will enable you to post entries from
various books of prime entries to respective ledger accounts and balance the
ledger accounts.

in determining financial performance and
Think position. This section presents the meaning

On the ways in which your parents or of a ledger, types of ledgers, the importance
guardians are keeping monetary records of ledgers, the classification of accounts and
of their properties and obligations. the posting of entries to the ledger.
Meaning and format of a ledger

Concept of a ledger Meaning of a ledger
Concept of a ledger is fundamental to Ledger is a book used to record
accounting. A ledger is a principal book or transactions. It is used for keeping track
digital record where business transactions of expenses, revenue, receipts, payments,
are systematically and chronologically and other financial matters. It is, therefore,
recorded. It serves as a permanent and a record in which accounts are kept. The
comprehensive repository of all transactions. ledger is often referred to as the main book
It provides a clear and organised picture of of accounts. This is because balances that
the enterprise's balances that will be used are used for the preparation of financial

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