ledger
LEJ-er
/ˈlɛdʒər/
A book or other collection of financial accounts of a particular type.
A ledger is a principal book or computer file for recording and totaling economic transactions by account type. It's where all the transactions from journals are summarized, providing a clear picture of each account's balance.
The story behind the word. The word 'ledger' comes from the Middle English 'legger,' which meant a large book, and ultimately from the Old English 'leggen,' meaning 'to lay' or 'to lie.' This refers to a book that 'lies' permanently in one place, holding the crucial financial records. Imagine a heavy, important book that stays put!
Word relationships
- account book: More general term for a book containing accounts; 'ledger' implies a specific structure for summarizing transactions.
- register: A register is a record of items or events; a ledger is specifically for financial accounts.
Commonly confused with
- journal: A 'journal' is where transactions are first recorded chronologically; a 'ledger' is where these transactions are then categorized and summarized by account.
Collocations
- general ledger
- sales ledger
- purchase ledger
- subsidiary ledger
- balance the ledger
Example sentences
- "Every transaction, once recorded in the journal, is then posted to the appropriate account in the general ledger." The general ledger in accounting.
- "The antique ledger, with its faded ink and meticulous entries, offered a fascinating glimpse into the merchant's business from two centuries ago." A historical ledger.
- "Modern accounting software has largely replaced physical ledgers with digital versions, making tracking and analysis much more efficient." Digital ledgers.
Memory hook
A LEDGER is a book where financial records are 'LAID' out and KEPT. Laid-out records
When not to use
Don't use 'ledger' for a casual notebook or a simple list of items; it specifically refers to a formal record of financial accounts.
Fun facts
- The term 'ledger' was originally used for a large book, often one that was kept permanently in one place, like a church bible or a merchant's main account book.
- In modern blockchain technology, a 'distributed ledger' is a key concept, referring to a decentralized database shared across multiple sites.
Related words
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