There are two types of account in accounting system, one is balance sheet account which carries remain balance to the next year and another one is profit & loss account which becomes zero at the end of each & every year.
Balance Sheet Account: Balance sheet account includes three ledger accounts i.e. asset, liability, capital/Equity.
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Ledger is a collection of different accounts like sales, purchase, income, expense etc. Every transaction should be placed in their respective ledger.
Ledger includes few accounts like assets, liabilities, income and expense, account receivable, accounts payable etc.
Here is an example: