Ledger

A book of secondary or final entry, containing individual accounts. The term "ledger account" refers to an individual account in the ledger. A ledger may be bound book, a loose-leaf-type book, or  computer printout.

Chart of accounts - is the official list of the ledger accounts in which transactions of a business are to be recorded.

The accountants prepare the list of the chart of accounts, arrange according to the preparation of balance sheet accounts, statement of owners equity, followed by the income statements accounts.

Example below:

Balance Sheet Accounts

Assets  (100-199)
100 Cash
101 Bank of America Checking
111 Accounts Receivable
113 Supplies
114 Prepaid Insurance
121 Equipment

Liabilities (200-299)
201 Accounts Payable
202 Notes Payable

Statement of Owner's Equity Accounts

Owner's Equity 300-399)
311 Shehla, Capital
312 Shehla, Withdrawal

Income Statement Accounts

Revenue (400-499)
411 Income from Services

Expenses (500-599)
500 Wages Expense
502 Rent Expense
503 Advertising Expense
504 Utilities Expense

Example: The Journal Entry is

Date    Description                        Debit                Credit
2013
Jan. 1  Cash ................................$50,000
             Shehgarlynn, Capital...............................$50,000
               To record the original investment of Shehla.  

Posting to the ledger accounts using T-Accounts

     Cash                                    
Debit    Credit
$50,000

Total balance of $50,000 on debit side

Shehgarlynn, Capital
Debit             Credit
                    $50,000

Total balance of $50,000 on credit side.