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Ledger

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Title: Ledger  
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Subject: Bookkeeping, Debits and credits, Vertcoin, Bitcoin, Ledger art
Collection: Accounting Journals and Ledgers
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Ledger

General ledger.

A ledger[1] is the principal book or computer file for recording and totaling economic transactions measured in terms of a monetary unit of account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

Contents

  • Overview 1
  • Etymology 2
  • See also 3
  • Notes 4
  • References 5
  • Further reading 6

Overview

The ledger is a permanent summary of all amounts entered in supporting journals which list individual transactions by date. Every transaction flows from a journal to one or more ledgers. A company's financial statements are generated from summary totals in the ledgers.[2]

Ledgers include:

For every debit recorded in a ledger, there must be a corresponding credit so that the debits equal the credits in the grand totals.

Etymology

Ledger from 1828

The term ledger stems from the English dialect forms liggen or leggen, meaning to lie or lay (Dutch: liggen of leggen, German: liegen oder legen); in sense it is adapted from the Dutch substantive legger, properly a book laying or remaining regularly in one place. Originally, a ledger was a large volume of scripture or service book kept in one place in church and openly accessible. According to Charles Wriothesley's Chronicle (1538), "The curates should provide a booke of the bible in Englishe, of the largest volume, to be a ledger in the same church for the parishioners to read on."

In application of this original meaning the commercial usage of the term is for the "principal book of account" in a business house.

See also

Notes

  1. ^ From the English dialect forms liggen or leggen, to lie or lay; in sense adapted from the Dutch substantive legger
  2. ^ Haber, Jeffry (2004). Accounting Demystified. New York: AMACOM. p. 15.  

References

  •  

Further reading

  • Business Owner's Toolkit: General Ledger. (n.d.). Business Owner's Toolkit. Retrieved March 29, 2011, from http://www.toolkit.com/small_business_guide/sbg.aspx?nid=P06_1450
  • General Ledger Entries. (n.d.). NetMBA Business Knowledge Center. Retrieved March 30, 2011, from http://www.netmba.com/accounting/fin/process/ledger/
  • General Ledger: Small Business Accounting . (n.d.). Starting a Small Business - BusinessTown Small Business Assistance. Retrieved March 31, 2011, from http://www.businesstown.com/accounting/basic-general.asp


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