Define: Leger

Leger is a legal term that refers to a written document or record that contains a chronological account of events or transactions.

While both a leger and a journal are used to record financial transactions, a leger provides a summary of these transactions, whereas a journal provides a detailed account of each individual transaction.

Yes, it is generally recommended to maintain a leger for your business as it helps in keeping track of financial transactions, ensuring accuracy, and providing a clear overview of your business’s financial health.

Yes, a leger can be used as evidence in a legal dispute, especially in cases involving financial matters. It serves as a reliable record of transactions and can support your claims or defences.

The retention period for a leger may vary depending on the jurisdiction and the nature of your business. It is advisable to consult with a legal professional or accountant to determine the specific retention requirements applicable to your situation.

Yes, electronic leger systems are widely accepted and can be used as a valid alternative to physical books. However, it is important to ensure that the electronic system complies with legal requirements and provides adequate security measures to protect the integrity of the data.

If your leger gets lost or damaged, it can create difficulties in maintaining accurate financial records. It is crucial to have backup copies or electronic versions of your leger to mitigate the risk of data loss. In case of damage, you may need to consult with a legal professional to determine the best course of action.

While it is generally recommended to maintain accurate and unaltered leger records, there may be instances where corrections or amendments are necessary. In such cases, it is important to clearly indicate the changes made, provide an explanation, and ensure that the original information remains accessible.

It is generally advisable to maintain separate ledgers for personal and business transactions to ensure clarity and accuracy. Mixing personal and business transactions in a single leger can complicate financial reporting and may create difficulties in case of audits or legal disputes.

While it is not mandatory to have a lawyer specifically for maintaining a leger, consulting with a legal professional can provide valuable guidance on legal requirements, record-keeping best practices, and ensuring compliance with relevant laws and regulations.