Ledger Balance

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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.

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  1. How do you calculate credits and debits in the general ledger?

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