Ledger

A ledger is a principal record of all financial transactions a company conducts. In accounting, it is the book or digital file that contains all balance sheet and income statement accounts. The general ledger is the central repository, while subsidiary ledgers track detailed information for specific accounts such as accounts payable, accounts receivable, and inventories. Each transaction is first recorded in a journal and then posted to the appropriate accounts in the ledger, using the double-entry bookkeeping system in which every debit has a corresponding credit.

Accounts in the general ledger are balanced, and the aggregate of balances is used to prepare a trial balance, financial statements, and tax documents. The chart of accounts provides the naming and ordering of ledger accounts and helps organize financial information by category.

Beyond traditional accounting, the term ledger is used in computing as part of distributed ledger technology (DLT). A distributed ledger is a synchronized record of transactions across multiple sites, maintained by a network rather than a single central authority. Blockchain is a widely known example. Features include decentralization, immutability, and transparency, with applications in finance, supply chains, and digital identity.

Ledgers can be physical books or digital systems. They are essential for auditability, regulatory compliance, internal control, and financial reporting.