Ledger Balance

A ledger balance is the amount of money that is left in an account after all transactions have been processed. It can be positive or negative, and it is used to track the financial activity of an account.

The ledger balance is calculated by adding all of the debits and subtracting all of the credits. Debits are entries that decrease the balance of an account, while credits are entries that increase the balance of an account.

The ledger balance is important because it provides a snapshot of the financial health of an account. It can be used to track the amount of money that is coming in and going out of an account, and it can be used to identify any potential problems.

There are two types of ledger balances: the beginning balance and the ending balance. The beginning balance is the amount of money that is in an account at the start of a period. The ending balance is the amount of money that is in an account at the end of a period.

The ledger balance is used in a variety of financial applications, including accounting, budgeting, and financial planning. It is a critical tool for tracking the financial activity of an account and for making informed financial decisions.