What is Ledger?
A ledger is a book or file that records transactions grouped by account, such as a customer, a supplier or an expense, with a running balance for each.
Updated
Meaning
English
A ledger is a book or file that records transactions grouped by account, such as a customer, a supplier or an expense, with a running balance for each.
Roman Urdu
Ledger woh bahi hai jisme har account ka alag hisaab likha jata hai, jaise customer, supplier ya Expense, aur har ek ka balance saath chalta hai.
Also called account book, bahi, general ledger.
Example
A wholesaler keeps one ledger page per supplier. Each purchase adds to what is owed, each payment reduces it, and the last line shows the balance.
Ledger, khata and day book
A ledger is organised by account. A khata is a customer ledger for credit sales. A day book is organised by date and lists everything that happened in a day, which the ledger accounts then pick up. Supplier ledgers show what you owe, customer ledgers show what you are owed.
Keep the ledger balance and the physical records in agreement: every ledger entry should point to a bill, a purchase or a payment receipt.
In Nafaa
Nafaa keeps a customer khata and a supplier ledger, each with a running balance, and a day book that lists the day's movements. See digital khata and day book.
Related terms
- Khata
A khata is a ledger, traditionally a paper register, that records what each customer owes a shop on credit and what they have paid back.
- Day Book
A day book is the daily record of every transaction in a business, in the order they happened: sales, receipts, payments and expenses.
- Accounts Payable
Accounts payable is the money a business owes its suppliers for goods or services it has received but not yet paid for.