Ledger Account

Tax Glossary Definition

Ledger Account

A ledger account is a book or digital record that maintains a detailed summary of all financial transactions related to a particular account. It helps in tracking debits and credits, preparing financial statements, and ensuring accurate accounting.

Example: A salary ledger records all debits (salary payments) and credits (recoveries or adjustments) for employee payroll, providing a complete view of salary-related transactions.

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