What is the difference between a ledger and a trial balance?
A ledger is often defined as a book of accounts. Today a ledger is most likely an electronic record or file containing a group of accounts. For example, a company’s general ledger is the record containing all of its asset, liability, owner equity, revenue, expense, gain, and loss accounts. Each of these accounts will contain the amounts that are pertinent to the account.
A trial balance is a listing of the name and the balance of each of the accounts in the general ledger. The trial balance is not a financial statement. Rather, it is an internal report that documents which accounts have debit balances and which accounts have credit balances and proves that the total of the debit balances is equal to the total of the credit balances.
Learn more about Bookkeeping.
About the Author: Harold Averkamp (CPA) has worked as an accountant, consultant, and university accounting instructor for more than 25 years.He is the author of the 2010 Master Accounting Download Package which has been praised for it's ability to simplify accounting in a way that anybody can understand.
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-Ledger shows a decresion or incresion of an account in a period of time
- Trial balance shows all balances of account in the end of period of time
what do you understand by the term pro rata?
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