Utilities of ledger
Following are
the utilities of ledger:
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.
From the
ledger balances extracted, a thorough analysis of account balances can be made
which helps to have control over the business transactions.
With the
balances of ledger accounts, trial balance can be prepared to check the
arithmetical accuracy of entries made in the journal and ledger.
From the
ledger balances extracted, financial statements can be prepared for
ascertaining net profit or loss and the financial position.
Related Topics
Privacy Policy, Terms and Conditions, DMCA Policy and Compliant
Copyright © 2018-2024 BrainKart.com; All Rights Reserved. Developed by Therithal info, Chennai.