Ledger accounts

Ledger accounts

Businesses do not make a new balance sheet after every transaction, instead of that the business records the transactions on the ledgers. The information which is in the ledgers comes from the journals. The information is transferred from the journal to the ledger.

The businesses make the following ledger accounts:

Ledger accounts for each asset

Ledger accounts for each expense

Ledger account for each liability

Ledger account for each income

Ledger account for each debtor

Ledger account for each creditor