Enumerate four advantages of Ledger. - Vidyadip

Question

Enumerate four advantages of Ledger.

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Answer

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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