A ledger is a book or computer program where a company’s financial transactions are recorded in chronological order. It serves as the backbone of a company’s accounting system, providing a detailed account of all the money flowing in and out of the business.

The ledger is essential for businesses to track their income, expenses, assets, and liabilities accurately. It helps in creating financial statements such as balance sheets and income statements, which are crucial for decision-making and assessing the financial health of the company.

Moreover, a well-maintained ledger can help businesses identify any discrepancies or irregularities in their financial transactions, enabling them to take corrective actions promptly. In essence, a ledger is a vital tool that provides a comprehensive and organized overview of a company’s financial activities, ensuring transparency and accountability in its financial reporting.#25#