Since the ledger account is prepared under the

double-entry system, it helps to prepare a trial

balance that provides a check on the arithmetical
accuracy of the recording transactions in the
books of accounts. The ledger is a book of
accounts relating to all the
financial transaction of the business.
Objectives Of Ledger Accounts
The following are main objectives of ledger
accounts

1. To Provide Classified Financial

Information
The ledger is a permanent book of record which
contains a number of accounts of different
subjects. Its purpose is, therefore to provide
classified financial information about the subjects
such as a person, asset and an expense or income.

2. To Provide Check On Arithmetical

Accuracy
The fundamental double-entry principle provides
that debit is always equal to credit or vice verse.
Since the ledger account is prepared under
the double-entry system, it helps to prepare
a trial balance that provides a check on the
arithmetical accuracy of the recording
transactions in the books of accounts.

3. To Help Ascertain Profit Or Loss

The ledger is a book of accounts relating to all the
financial transaction of the business. It contains
the accounts of all expenses, losses, incomes and
gains. Therefore it helps to prepare the profit
and loss account of the business so as to
ascertain the profit earned or loss suffered during
a specified period.

4. To Help Reveal The Financial Position

The ledger also contains the accounts of the
financial transactions relating to capital, all
liabilities and assets of the business. With the help
of the balances of these accounts and profit and
loss of the business, a balance sheet may be
prepared to show its financial position at a certain
point in time.
Meaning Of Ledger And Ledger Accounts
The final destination of all entries made in the journal is the ledger as they are all
subsequently transferred to it. The ledger is the most important book under
the double-entry system. Ledger is a permanent book of record, which contains all
accounts relating to the financial transactions of a business. Therefore, it is also called
the book of accounts. An account contained in the ledger book is called ledger account.
A ledger account is a statement shaped liked an English alphabet 'T' that systematically
contains all financial transactions relating to either a particular person or thing for a
certain period of time. Ledger account provides financial information such as how much
a particular person owes to or from the business, what is the value of particular asset the
business possesses at a point in time, or what is the amount of particular head of
expense or income business has incurred or earned during a particular period. , The
ledger book, therefore, contains the details of all classified information of financial
transactions of the business. It is also called the principal or main book of accounts. It
collects records and provides the financial information of the business in a classified
manner so as to ascertain the profit and loss and financial position of the business at
a certain point of time.