accounting ledger example

An accounting ledger example illustrates how businesses record financial transactions in a systematic way, ensuring accuracy and transparency. Each transaction affects at least two accounts—one is debited, and the other is credited—keeping the accounting equation balanced. For instance, in a sales transaction, the Cash account is debited, and Sales Revenue is credited. This method helps businesses track financial activity, prepare financial statements, and maintain an organized record of all income and expenses. A well-maintained ledger is essential for efficient financial management, tax compliance, and strategic decision-making.