Liability Ledger

DEFINITION of 'Liability Ledger'

The central file that contains a comprehensive list of all of a bank's loans and borrower discounts. This ledger can be subordinate to a bank's general ledger accounting system that is stored on computer. The liability ledger is stored in the bank's loan department.

BREAKING DOWN 'Liability Ledger'

The sum total of all of the loans on a bank's liability ledger constitute the majority of a bank's earning assets. If the liability ledger is not computerized, then it is stored on individual ledger cards for each customer. However, this practice has become largely obsolete.

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RELATED FAQS
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    Learn about the double entry method of bookkeeping and how it works in the general ledger. Every accounting transaction has ... Read Answer >>
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    Keeping records for most organizations require a double-entry bookkeeping system, which revolves around transactions in the ... Read Answer >>
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    Learn more about accounting software and general ledger features. Find out how to choose the right program for small business ... Read Answer >>
  4. What is the difference between accrual accounting and accounts payable?

    Understand the difference between accrual accounting, an accounting method, and accounts payable, which is a ledger entry ... Read Answer >>
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