Points of importance of a ledger are as under:

1. Necessary information : With the help of ledger, the necessary information of an account can be obtained at any particular date.

2. Transaction : Summary of transaction can be known with the help of ledger, e.g.,
(1) Information regarding the total purchase, total sales, total purchase return or sales return of the specific period can be obtained.
(2) Information regarding the amount receivable from which customers (debtors) and the amount payable to which traders (creditors), on a particular date, can be obtained.
(3) Accountwise information regarding the expenses and incomes can be obtained on any particular date.
(4) Accountwise information regarding the amount of capital invested and the value of different assets in a specific period can be obtained.

3. Mathematical checking : Mathematical checking of accounts is possible, by preparing a ‘Trial balance’ from the balance of each account of a particular date.

4. Policy related decision: For the policy related decision of the business, collection of necessary information and summary statements to be prepared, are on the basis of the ledger.

5. Clear position: Ledger is a reflection or an image of the transactions entered into. Only on the basis of this, a trader will have a clear picture of his position.