Enumerate four advantages of Ledger.
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Advantages of Ledger:
- Provides Complete Information of a Particular Account: Complete information relating to a particular account is available at one place in the Ledger.
- Information of Incomes and Expenses: In ledger, a separate account is maintained for each income and expense. The amount of total income and total expenses is known from the ledger account.
- Preparation of Trial Balance: Ledger helps in preparing Trial Balance which ensures arithmetical accuracy of the transactions recorded in books of account.
- Helpful in Preparing Final Accounts: After preparing Trial Balance, Final Accounts are prepared to know the profitability and financial position of the business.
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