What is ledger balance?

A ledger balance refers to the amount of funds available in an account after all transactions have been accounted for. It is the current balance shown on a financial statement or account statement at a specific point in time.

The ledger balance is calculated by adding up all the deposits or credits made to the account and subtracting the withdrawals or debits. It is important for individuals and businesses to regularly monitor their ledger balance to ensure they have enough funds to cover their expenses and avoid overdraft fees.

The ledger balance may not always match the available balance shown on a bank statement, as pending transactions or holds may not be reflected in the ledger balance. It is important to review the transaction history to accurately determine the actual amount of funds available in the account.

Overall, maintaining an accurate ledger balance is essential for managing finances effectively and avoiding any potential financial problems.