The following are the important utilities of ledger accounts
1. Recording Of Transactions
Ledger account keeps a permanent record of all financial transactions in a classified manner.
2. Providing Information
Ledger account shows detailed financial information of a business regarding debtors and creditors, assets, and incomes and expenses.
1. Recording Of Transactions
Ledger account keeps a permanent record of all financial transactions in a classified manner.
2. Providing Information
Ledger account shows detailed financial information of a business regarding debtors and creditors, assets, and incomes and expenses.
3. Preparation Of Trial Balance
Ledger account helps to prepare a trial balance in order to check the arithmetical accuracy of the recording of the financial transactions of the business.
4. Preparation Of Profit And Loss Account
Ledger account helps to prepare profit and loss account so as to ascertain the profit or loss of the business.
5. Preparation Of Balance Sheet
Ledger account helps to prepare the balance sheet with a view to show the financial position of the business.