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