What is a ledger account?

A ledger account is an account which contains a record of the business transactions. It is actually a separate record inside the general ledger which is assigned to a particular asset, equity item, liability, revenue type or an expense type.

Examples of ledger accounts are:

• Cash
• Accounts receivable
• Inventory
• Fixed assets
• Accounts payable
• Salaries and wages
• Office expenses
• Income tax expense