USES OF LEDGER

A ledger account is a means of accumulating in one place all the information about changes in a specific assets a liabilities or owner equity. for example A ledger account for the assets cash provides a record of the amount of cash receipts, cash payments and the current cash balance . BY maintain a cash account management can keep track of the amount of cash available for meetings payroll and for making current purchases of assets or service this record of cash is also useful in planning future operations and in advance planning of applications for bank loans . Its simplest from an account has on;y three elements a little consisting of the name of the particular assets liabilities or owner equity. A left side which is called the debit side and a right side which is called the credit side this form of account is called a T-account.