The word "ledger" refers to a record-keeping book or digital document where financial transactions, such as sales and purchases, are systematically recorded. In accounting, a ledger serves as the main source of a company's financial history, allowing businesses and individuals to track their income and expenses over time. Each entry in a ledger typically contains details like date, description, and amount involved in the transaction.
The term "ledger" originates from the Middle English word "legere," meaning "to lay down." This reflects the way transactions are laid out or recorded in an organized manner.