Ledger is a book of accounts in which data from transactions recorded in journals are posted and thereby classified and summarized. The ledger is typically divided up into following: A) Purchases/Creditors Ledger is the subsidiary ledger in which creditors accounts are recorded; also known as the bought ledger. B). Sales/Debtors Ledger is the subsidiary ledger in which debtors accounts are recorded; also known as the sold ledger. Each debtors account is debited with sales and credited with cash received, discounts allowed and returns inward. C) General/Impersonal Ledger is a book of final entry summarizing all of a company’s financial transactions, through offsetting debit and credit accounts, e.g. liability, reserve, capital, income and expense accounts; and D) Private Ledger is confidential and records items such as capital, loans, mortgages, director’s salaries etc.