Ledger Balance

AAA

DEFINITION of 'Ledger Balance'

The balance of a customer account as shown on the bank statement. The ledger balance is found by subtracting the total number of debits from the total number of credits for a given accounting period. The ledger balance is used solely in the reconciliation of book balances.

INVESTOPEDIA EXPLAINS 'Ledger Balance'

The ledger balance should not be confused with the customer's available balance, which is the amount of funds available for withdrawal. The ledger balance includes any and all checks outstanding that have not yet cleared the account. This is partly why it differs from the available balance.

RELATED TERMS
  1. Nonledger Asset

    Something of value owned by an insurance company that is not ...
  2. Balance Sheet

    A financial statement that summarizes a company's assets, liabilities ...
  3. Asset

    1. A resource with economic value that an individual, corporation ...
  4. General Ledger

    A company's main accounting records. A general ledger is a complete ...
  5. Book Value Reduction

    Reducing the value at which an asset is carried on the books ...
  6. Inherent Risk

    The risk posed by an error or omission in a financial statement ...
Related Articles
  1. Intangible Assets Provide Real Value ...
    Markets

    Intangible Assets Provide Real Value ...

  2. What Is A Cash Flow Statement?
    Markets

    What Is A Cash Flow Statement?

  3. Financial History: The Evolution Of ...
    Professionals

    Financial History: The Evolution Of ...

  4. Introduction To Fundamental Analysis
    Markets

    Introduction To Fundamental Analysis

Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  3. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  4. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  5. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  6. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
Trading Center