Ledger and Accounting

 Debtors Ledger :It contains the accounts of all the customers to whom the goods have been sold on credit. it is also known as Sales Ledger.

Creditors Ledger. It contains the accounts of all the suppliers or creditors who have supplied goods to the business on credit.it is also known as Bought Ledger.

General Ledger or Main Ledger :where all the transaction posted in double entry system.It contains all the accounts of business other than those of debtors and creditors. Accounts of all assets (other than debtors),Liabilities (other than creditors), capital, revenue, and expenses are recorded in this ledger.

As per Accounting Cycle ,Transaction are first Recorded in Journal, from where they are posted to the relevant accounts in the Ledger (included AP Transaction and AR Transaction) in the end of accounting year these accounts are balanced and Trial balance prepared to check arithmetical accuracy of accounts. After preparing Trial Balance Final accounts prepared to achieve the objectives of accountancy.

Final Accounts includes
                  a. Trading ,Profit and Loss Accounts
                  b. Balance Sheet
Financial Statement Prepared to show periodic performance of a business organisation and it's financial position at the end of such period.usually Profit and Loss and Balance Sheet collectively known as Financial Account.

Profit and Loss Accounts which all gains and losses are collected in order to ascertain the excess of gains over the losses or excess of loss over the gains.