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Bookkeeping › Books of Prime Entry

What is a ledger?

Beginner

Answer

A ledger is the collection of accounts where transactions are classified and summarized. The nominal (general) ledger holds impersonal accounts (income, expenses, assets, liabilities, capital); the sales and purchases ledgers hold personal accounts for customers and suppliers. Ledgers are written up from the books of prime entry.
Real-world example After listing invoices in the day book, the bookkeeper posts them into the ledger accounts.

Common follow-ups: What is the nominal ledger? | How are ledgers written up?