Types of Ledger

There are many Ledgers but these can be expressed in terms of three Types of Ledgers named as Sales Ledger, Purchases Ledger and General Ledger.

1. Sales Ledger or Accounts Receivable / Debtor Ledger

Sales Ledger records credit sales transactions that are related to sales made on account to our customers. It helps us in understanding how much cash amount is receivable from our customers for the Credit Sales.

2. Purchase Ledger or Accounts Payable / Creditor Ledger

It shows the accounting records related credit purchases from suppliers of the business. It provides information on how much money is payable by the business to its suppliers or creditors.

3. General Ledger

It is a Control Ledger or Master Ledger in which Different Types of Accounts such as Assets, Liabilities, Equity, Income & Expenses are recorded.