A general ledger is a grouping of perhaps hundreds of accounts that are used to sort and store information from a company’s business transactions. The general ledger is organized as follows: Balance sheet accounts (assets, liabilities, equity), and Income statement accounts (revenues, expenses, ...
These categories are listed in the chart of accounts which is included in the general ledger. Each category has its own separate accounts which record specific transactions. These are referred to as subledgers or subledger accounts. For example, assets may include a cash account, accounts receiva...
A general ledger is used to monitor all the transactions and accounts of a business. It is considered as the foundation of a company’s accounting system. A general ledger contains every transaction of a business and so it is used forrecord-keepingduring the life of a company. It is furthe...
A general ledger (GL) is a set of numbered accounts a business uses to keep track of its financial transactions and to prepare financial reports. Each account is a unique record summarizing a specific type of asset, liability, equity, revenue or expense. Achart of accountslists all of the ...
What Is a General Ledger Used For? Business owners (and their accountants) use the general ledger to get a detailed view of every transaction for the month, quarter, or year. For example, suppose a review of thetrial balanceshows an unexpected balance in fixed assets at year-end. In that...
Learn more about what a general ledger is and how to use it. Read our guide to the general ledger basics and what it should include.
The balances and activity in the general ledger accounts are used to prepare a company’s financial statements. Definition of General Journal A general journal is used to record unique journal entries that cannot be processed in a more efficient manner. For example, checks written, sales invoices...
What is a GL code? General ledger codes are numerical names you assign to an account. For example, the GL code for an accounts receivable might be account #105. Electric bills might be #203. This coding system can be used to group related accounts. For example, all utility accounts migh...
General Ledger acts as a master record for all financial transactions of your company. A ledger is typically segregated into five categories - Assets, Li
What Are the Different Methods of General Ledger Management? What Is an Expense Ledger? What Are the Different Types of Ledger Paper? What is a Savings Account? What Is a Joint Account? What is a Checking Account? Discussion Comments