ledger

A ledger is a book or record used by a company to track its financial transactions, specifically money paid and received. It is a fundamental tool in bookkeeping, which is the process of recording these monetary transactions.12

There are different types of ledgers:
* General Ledger: This is the main ledger that contains individual or controlling accounts for all assets, liabilities, net worth, revenue, and expenses of a business.3
* Subsidiary Ledger: This ledger is supplementary to the general ledger and keeps detailed accounts of a specific class of items.4

Journals record daily transactions, and these entries are then transferred to the appropriate accounts in the ledger. From the ledger, financial statements like the income statement and balance sheet are prepared. A debit is an entry on the left-hand side of an account, typically representing an addition to an expense or asset.25