Utilities of ledger
the utilities of ledger:
account helps to get all information about a particular account like sales,
purchases, machinery, etc., at a glance. For example, where there are several
transactions with a debtor, the net amount due from a debtor can be known from
the ledger account.
ledger balances extracted, a thorough analysis of account balances can be made
which helps to have control over the business transactions.
balances of ledger accounts, trial balance can be prepared to check the
arithmetical accuracy of entries made in the journal and ledger.
ledger balances extracted, financial statements can be prepared for
ascertaining net profit or loss and the financial position.