Question: A Ledger Is Called A Book Of?
- First Entry
- Secondary Entry
- Middle entry
- Primary Entry
Answer: Secondary Entry
A Ledger Is Called A Book Of Secondary Entry because ledger accounts are prepared after the journal. It is also known as the Primary Book and principal book because the trial balance and final accounts of the company are prepared from Ledger accounts. A ledger Account is also known as the book on final entry because in this step accounts are summarized, maintain and classified. This is the permanent record of all transactions. It is the most important step of Accounting cycle or because with its help, we made trail balance which is the base of the preparation of the financial statement of the company. A ledger Account is prepared from Journal accounts. In ledger account, there are six types of accounts; Assets, Liabilities, Capital, Revenue, Expenses, and Drawings. Assets, Expenses, and Drawings record in debut side while Liabilities, Capital and Revenue are recorded on the Credit side. Mostly, companies use T format account of Ledger in which there are two columns, left and right. The Left side represents the debit accounts while right side represents the credit accounts.