LEDGER ENTRY Meaning and
Definition
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A ledger entry refers to a transaction record or an accounting entry that is made in a ledger, which is a book or digital system used to keep track of financial transactions. It serves as a crucial component in double-entry bookkeeping, where each transaction is recorded twice, ensuring accurate and balanced financial statements.
In simpler terms, a ledger entry represents the process of making an entry into the accounting system to record a financial transaction. These entries consist of pertinent information such as the date, description, and monetary value of a transaction. They are characterized by debits and credits, indicating whether money is being received or spent, and demonstrating which accounts are affected.
Furthermore, ledger entries are crucial for maintaining accurate financial records and facilitating financial analysis. They provide a clear trail of how money flows into and out of a business, enabling companies to monitor their financial health and make informed decisions. Additionally, ledger entries assist in the identification of errors or discrepancies, ensuring financial statements are free from mistakes and fraud.
Overall, a ledger entry plays a fundamental role in maintaining financial records and is an essential tool for accountants, businesses, and individuals to manage and track their financial transactions accurately.
Common Misspellings for LEDGER ENTRY
- kedger entry
- pedger entry
- oedger entry
- lwdger entry
- lsdger entry
- lddger entry
- lrdger entry
- l4dger entry
- l3dger entry
- lesger entry
- lexger entry
- lecger entry
- lefger entry
- lerger entry
- leeger entry
- ledfer entry
- ledver entry
- ledber entry
- ledher entry
Etymology of LEDGER ENTRY
The word "ledger" originated from the Middle English word "leger" which came from the Old English word "leger" or "lecgan" meaning "to lay down". The term "ledger" referred to a book or register where accounts and financial transactions were recorded.
The word "entry" is derived from the Middle English word "entree" which came from the Old French word "entree" meaning "a way in" or "entrance". In the context of accounting, "entry" refers to the act of recording a transaction or an item in a ledger.
Therefore, "ledger entry" is a term that evolved from the historical usage of ledgers to record financial transactions and the act of making an entry in such a ledger.
Similar spelling words for LEDGER ENTRY
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