What is ledger balance?

[niyati]

I’m trying to understand basic bookkeeping terms and came across ledger balance. What exactly does it mean in bookkeeping? Is it the same as the running total of all transactions? And how does it differ from the current or available balance used in banking?

 

[maria]

A ledger balance is the total amount of money in an account at the end of a business day, reflecting all processed deposits and withdrawals. It represents the account's financial position based on cleared transactions, essentially the opening balance for the next business day

 

[Jarwish]

Ledger balance is the balance of a bank account at the end of a business day. It includes all deposits and withdrawals posted before the bank’s cut-off time. It does not reflect pending transactions and remains unchanged until the next business day’s updates are processed.

 

[danisjohn]

Ledger balance is the amount of money in a bank account at the end of a business day. It includes all cleared deposits and withdrawals but excludes pending transactions. This balance remains unchanged until the next business day when new transactions are processed and reflected in the updated ledger.

 

[Gsusangrey]

A ledger balance is the total amount of money in an account at the start of a business day, including all cleared transactions. It reflects settled funds, excluding pending deposits or withdrawals.