Define a ledger.

A ledger is a book or computer file that contains records of financial transactions for a business or organization. It typically includes details such as the date of the transaction, the amount of money involved, and a description of the transaction. Ledgers are used to track and monitor the financial activities of a company and are essential for preparing financial statements and reports.

A ledger is a central accounting book or record that contains financial transactions posted from a journal. The ledger is used to keep track of the individual accounts and their balances. Each account in the ledger represents a specific asset, liability, equity, income, or expense.

The ledger is used to create financial statements, such as the balance sheet and the income statement. The balance sheet shows the financial position of a company at a specific point in time, while the income statement shows the financial performance of a company over a period of time.

Ledgers can be either physical books or electronic records. In a physical ledger, each account is assigned a page or a series of pages. In an electronic ledger, each account is stored in a computer file.

There are two main types of ledgers: general ledgers and subsidiary ledgers. A general ledger contains the summary of all financial transactions, while a subsidiary ledger contains the details of transactions for a specific account.

For example, a company might have a general ledger account for "Accounts Receivable" and a subsidiary ledger account for each customer. The general ledger account would show the total amount of money that the company is owed by its customers, while the subsidiary ledger accounts would show the amount of money that each customer owes.