What is Ledger Cash?

Ledger cash is the net amount of cash when all of an organization's cash accounts have been combined. This is the amount that appears in the cash line item within the assets section of a firm's balance sheet (as noted in the following exhibit). Depending on the size of a business, the ledger cash balance may be compiled from a large number of cash accounts, possibly denominated in several currencies. The actual amount of cash on hand can vary from the ledger cash amount if a business does not conduct bank reconciliations on a regular basis.