What is ledger? Features of Ledger

Introduction

Ledger is a principal or primary book of accounts. It is the most important book in accounting system. It contains all the accounts (assets, liabilities, capital, revenue and expenses) to which the transaction recorded in the books of original entry are transferred (posted). Ledger is the ultimate destination of all transactions. It is also called book of  "final entry". In ledger, the information is classified by nature and relevance. It may be maintained as bound book or loose leaf sheet or  (in case of computerized accounting) in floppy diskettes.

Definitions

William pickles - "A ledger is the most important book accounts and is the (final) destination of the entries made in the subsidiary books"

Features of Ledger

These are the following important features of ledger:-

1. It is the principal or primary book of accounts.
2. The transaction are classified under appropriate heads, called accounts.
3. The transaction contain the condensed and summarised record of all the related transactions.
4. The information contained in the Ledger Account can be used to draw  the conclusion regarding the status of any accounts.
5. It is the basis of preparing final accounts. Hence, it cannot be avoided.