Commerce Exam  >  Commerce Videos  >  Accountancy Class 11  >  What is a Ledger?

What is a Ledger? Video Lecture | Accountancy Class 11 - Commerce

82 videos|105 docs|42 tests

FAQs on What is a Ledger? Video Lecture - Accountancy Class 11 - Commerce

1. What is a ledger?
A ledger is a record-keeping system that is used to track and record financial transactions. It is a core component of accounting and helps to maintain an accurate and transparent record of all financial activities within an organization.
2. What are the types of ledgers?
There are three main types of ledgers: general ledger, subsidiary ledger, and control ledger. The general ledger is the primary ledger that contains all the financial transactions of a company. Subsidiary ledgers are used to record specific transactions such as accounts receivable, accounts payable, or inventory. Control ledgers are used to track and verify the accuracy of the general ledger.
3. How does a ledger work?
A ledger works by recording every financial transaction that occurs within an organization. Each transaction is classified into different accounts, such as cash, accounts receivable, or inventory. These accounts are organized in a chart of accounts, and each transaction is recorded with a debit entry and a corresponding credit entry. The ledger helps in summarizing and analyzing the financial position of a company.
4. What is the importance of a ledger in accounting?
The ledger is of utmost importance in accounting as it provides a comprehensive and organized record of all financial transactions. It helps in monitoring cash flow, tracking expenses and revenues, preparing financial statements, and ensuring compliance with accounting standards. The ledger also aids in identifying errors, detecting fraud, and facilitating auditing and tax reporting processes.
5. How is a ledger different from a journal?
A ledger and a journal are both used in accounting, but they serve different purposes. A journal is the first step in recording financial transactions and is used to initially record the details of each transaction. On the other hand, a ledger is a consolidated record that summarizes and classifies those transactions based on different accounts. The ledger serves as a central repository of all financial data, while the journal is more focused on capturing transaction details.
82 videos|105 docs|42 tests

Up next

Explore Courses for Commerce exam
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Related Searches

Previous Year Questions with Solutions

,

Exam

,

Summary

,

study material

,

video lectures

,

MCQs

,

Important questions

,

shortcuts and tricks

,

Sample Paper

,

Objective type Questions

,

pdf

,

past year papers

,

Extra Questions

,

What is a Ledger? Video Lecture | Accountancy Class 11 - Commerce

,

Semester Notes

,

Free

,

What is a Ledger? Video Lecture | Accountancy Class 11 - Commerce

,

What is a Ledger? Video Lecture | Accountancy Class 11 - Commerce

,

mock tests for examination

,

ppt

,

Viva Questions

,

practice quizzes

;