Frequently Asked Questions
What is a Ledger?
A Ledger is a record of financial transactions. It can be either manual or electronic. A Ledger typically includes the date of the transaction, the amount of money involved, and the party responsible for the transaction. Ledgers are used to track financial activity and ensure accuracy and accountability.
What are some common Ledger entries?
Common Ledger entries include cash receipts, cash payments, credit card charges, and bank deposits.
What is the purpose of a Ledger?
The purpose of a Ledger is to track financial activity and ensure accuracy and accountability. It can be used to verify that transactions have occurred, calculate Financial Statements, and investigate possible financial fraud.
How do I create a Ledger?
There are many different ways to create a Ledger. You can use a manual system, such as a notebook, or an electronic system, such as a spreadsheet. You can also use specialized software to create and manage your ledger.
What is the difference between a Ledger and a Balance Sheet?
A Ledger is a record of financial transactions, while a balance sheet summarizes a company's financial position. A Balance Sheet includes total assets, total liabilities, and net worth.