Ledger - A bookkeeping account or record that keeps track of operations on the balance sheet and income statement is known as an accounting ledger. Self Balancing System - Each ledger's Trial Balance can be derived independently in a self-balancing system. It's the inverse of the Total Debtors Account in the Sales Ledger and the Total Creditors Account in the Bought Ledger. This method makes ledgers self-balancing by introducing adjustment accounts. Following ledgers are prepared under a self-balancing system:Debtors Ledger: This ledger should only hold trade debtors' accounts (customers). Creditors Ledger: This ledger should only store trade creditors' accounts (suppliers). General Ledger: Other than trade debtors and trade creditors, the general ledger should contain all remaining accounts.