What is Ledger in banking?

Ledger. It is also known as the principal book of accounts as well as the book of final entry. It is a book in which all ledger accounts and related monetary transactions are maintained in a summarized and classified form. All accounts combined together make a ledger and form a permanent record of all transactions. It is...

What causes transactions in a ledger account?

The transactions are caused by normal business activities such as billing customers or through adjusting entries. The ledger account may be in the form of a written record if accounting is done by hand or in the form of electronic records when accounting software packages are used.

What is a subsidiary ledger?

Transactions from subsidiary ledgers are periodically summarized and transferred to the general ledger, which contains transaction data for all accounts in the chart of accounts. Preparing a ledger is important as it serves as a master document for all your financial transactions.

What is a distributed ledger?

( cryptocurrencies) A distributed ledger, a public financial transaction database, typically using a blockchain . To be clear: there's only one ledger, but that ledger is not stored in any one central location. Rather, identical copies exist on every node —a copy on every computer.