Ledger is known to be an important book that falls under double entry system. It is vital to understand that ledger is a permanent book which is used to record and it contains all accounts that occur in business.  Whatever financial transaction takes place it is necessary to record in ledger. So, it is termed as book of accounts.

An account that is available in ledger book is known as ledger account. It is a systematical approach which would contain various financial transactions. Ledger account would consists of financial information such as how much a person owes to or from business, the value of assets related to business and amount of income and expenses. The ledger book contains complete details of classified information related to financial transactions.

Ledger accounts can certainly be divided into main types:

  1. Balance sheet ledger accounts
  2. Income statement ledger accounts

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