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A general ledger may be maintained on paper, on a computer, or in the cloud. [2] A ledger account is created for each account in the chart of accounts for an organization and is classified into account categories, such as income, expense, assets, liabilities, and equity; the collection of all these accounts is known as the general ledger.
A ledger [1] is a book or collection of accounts in which accounting transactions are recorded. Each account has: an opening or brought-forward balance; a list of transactions, each recorded as either a debit or credit in separate columns (usually with a counter-entry on another page) and an ending or closing, or carry-forward, balance.
A worksheet, in the word's original meaning, is a sheet of paper on which one performs work. They come in many forms, most commonly associated with children's school work assignments, tax forms, and accounting or other business environments. Software is increasingly taking over the paper-based worksheet.
Some of these were similar to accounting ledger paper. They became known as green sheets or spreadsheets. With the advent of computers in business, estimators began using spreadsheet applications like VisiCalc , Lotus 1-2-3 , and Microsoft Excel to duplicate the traditional tabular format, while automating redundant mathematical formulas.
Different countries have developed their own accounting principles over time, making international comparisons of companies difficult. To ensure uniformity and comparability between financial statements prepared by different companies, a set of guidelines and rules are used.
Financial accounting reports the results and position of business to government, creditors, investors, and external parties. Cost Accounting is an internal reporting system for an organisation's own management for decision making.