In accounting, a ledger is a book or digital record that stores bookkeeping entries. It is a permanent summary of all amounts entered in supporting journals (day books) which list individual transactions by date. Ledgers may contain detailed transaction information for one account, one type of transaction, or all transactions. The ledger is a collection of all the accounts and transactions of a company. The ledger shows the account’s opening balance, all debits and credits to the account for the period, and the ending balance. Ledgers include the sales ledger (debtors ledger), purchase ledger (creditors ledger), and general ledger. The general ledger is the complete collection of all the accounts and transactions of a company. It consists of the five main account types: assets, liabilities, income, expenses, and capital. The ledger is a crucial source of financial records and serves as a master document for all financial transactions. It reports revenue and expenses in real-time, helps to stay on top of spending, and enables to compile a trial balance and create financial statements. The ledger is used to generate the key financial statements such as the income statement, cash flow statement, and balance sheet for the company. The process of taking the list of journal entries and entering them into the ledger is called posting.