A ledger is computer file or principal book for recording and counting economic transactions dignified in term of monetary units of account. The ledger is an accurate record of all amounts entered in journal by date. Ledgers generally include sales ledger, purchase ledger and general ledger. Sales ledger records transactions of accounts receivables. It records transactions made by the customer to the company. Purchase ledger records transaction of money spent by the company for purchasing. General ledger five main account types, assets, liabilities, capital, income and expenses.
On the basis of purpose, there are main three types of ledgers, general, debtors and creditors. The general ledger collect data from journals. Each month, transactions made in journals are totaled and then posted in general ledger. Therefore the main purpose of general ledger is to summarize and organize individuals transactions made in all journals. The debtor ledger receive record of transactions from sales journal. The purpose of sales ledger is to receive information about customers. The creditor ledger get information from purchase ledger. Creditor ledger provide information about the suppliers.