1. A collection of accounting records in which all of an accounting entity’s financial transactions are entered. It is divided into ‘ledger accounts’ each of which records transactions of a particular type, for example, transactions with a particular debtor of the accounting entity or transactions relating to a particular type of fixed asset. Every transaction of the accounting entity must in principle appear as a credit entry in one ledger account and as a debit entry in another account. An accounting system may also have other accounting records called ‘books of prime entry’, from which the records in the ledger are prepared. The final accounts of the accounting entity may be prepared from the records in the ledger alone. Transactions are not necessarily entered individually in the ledger but may be aggregated in some convenient way, for example, each individual retail sale for cash is not recorded, only the total sales for a day. Also called ‘financial ledger’ when it is necessary to distinguish it from other types of ledger. 2. A collection of accounting records made up by double-entry bookkeeping concerning transactions and events other than those recorded in a financial ledger, for example, a stock ledger recording values of stocks and work in progress, or a cost ledger used for recording production costs.


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