Ledger types

Various kinds of accounts/ledgers are used by an organization to define each class of items for which money or the equivalent is spent or received. It is used to organize the finances of the entity and to segregate expenditures, revenue, assets and liabilities in order to give interested parties a better understanding of the financial health of the entity.

The ledgers are basically of five types:

Assets Accounts
Equity Accounts
Expense Accounts
Liability Accounts
Revenue Accounts

Clicking on the arrow button beside the name of the ledger will provide a detailed view and description of the account and assets under that particular ledger type (see figure 1).

(Figure 1 - Ledger types page)

Apart from these five account types, you can also define new account types as per the requirement. In order do that, you need to click on the add button provided in the toolbar (see figure 2).

(Figure 2 - Ledger types entry pop up)

Different fields of the pop up are:

Ledger Type : enter the name of the ledger type which is to be created

Parent Ledger Type : if the ledger type is to be categorized under a different ledger type, select the name of the ledger type here

Description : enter the nature of the ledger type