What Are the Different Types of Ledger Books?

Osmand Vitez

Ledger books are among the most common — and most important — documents in a company’s accounting system. While many different types of ledgers exist, the most common are the sales, purchases, cash, and general ledgers. Each of these ledger books holds a specific type of business transaction, making it easy for the company to find information at a later time. Accountants are responsible for preparing the company’s books and recording transactions accordingly. Financial statements are the final result of the information taken from a company’s accounting books.

Ledgers are used to keep track of financial transactions.
Ledgers are used to keep track of financial transactions.

The sales ledger books contain all transactions that relate to the selling of inventory or services to customers. Accountants record the transaction date, a short description, and the amount of the sale. The ledger usually contains data for a given month as this is the most common procedure in accounting systems. Other information — such as sales discounts, returns, or other allowances — may be in this ledger as well. Only data related to the company’s sales should be in this accounting book at any given time.

Accountants are responsible for preparing the company’s books and recording transactions accordingly.
Accountants are responsible for preparing the company’s books and recording transactions accordingly.

Purchases have their own separate book in an accounting system. These ledger books only contain information on the money a company spends to acquire the items needed to run business operations. Accountants list information similar to the sales ledger book, that is, transaction date, a short description, and the dollar amount for items purchased. A subledger may also exist here, called accounts payable. This subledger lists all the vendors to whom the company owes money for purchased goods or services.

Cash ledger books contain all transactions for activities that use cash. The purpose of this ledger is to help a company reconcile its bank accounts at month end. In some cases, this ledger may not have copious activity during the month given the size and nature of the business. Accountants usually record cash transactions, and then, they may give the ledger to an individual who reconciles the bank account. The separation of duties among accountants who handle the cash ledger helps prevent improprieties — such as fraud or embezzlement — from occurring.

The general ledger is a catchall for transactions that do not fall under the purpose of the other ledger books. Accountants often use this ledger as a last resort for business transactions. Recording too many transactions here can result in lost information or data that takes some time to comb through when finding information. Accountants often set specific rules for using a general ledger.

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Discussion Comments


@raynbow- I certainly understand your concerns, because accounting can be very difficult. Ledger books are part of the coursework, and I have always found them to be very confusing. However, you can prepare yourself for success in your accounting class.

Before your class even starts, you should get your text book ahead of time and review it. Pay special attention to the chapters on the different types of ledger books, because you will use this information frequently during the course. Understanding how ledger books work and what they are used for is also very important to grasping accounting.

Once your accounting class begins, you shouldn't be afraid to talk to your instructor. He or she understands that some students will have difficulties with the coursework, and will appreciate your candid feelings about the class. He or she will also be willing to help you along if you have questions or begin having difficulties with terms and concepts.

If you begin to struggle in the accounting class, getting a tutor is a great idea. Working one-on-one with someone who has extensive knowledge will be very beneficial in helping you understand the course contents and getting good grades on tests.


I have to take an accounting class next year as part of a training course, and I am really worried about it. I had some accounting in high school, but I never felt like I grasped the subject very well. I also got a low grade in the class. What can I do to prepare for my upcoming accounting class and to avoid doing poorly in it?

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