What is General Ledger?
Accounting Basics
Explained Simply
The general ledger organises transactions into individual accounts (e.g., Cash, Accounts Receivable, Revenue, Rent Expense). Each account shows debits, credits, and running balances. In modern accounting software like Accounter, the general ledger is maintained automatically as you record transactions. At any point, you can generate a trial balance from the ledger to check that debits equal credits. The ledger feeds directly into financial statements.
Related Terms
- Chart of AccountsA chart of accounts is a structured list of all the accounts used by a business to classify and record financial transactions in the general ledger.
- Trial BalanceA trial balance is a report listing all accounts in the general ledger with their debit or credit balances, used to verify that total debits equal total credits.
- Journal EntryA journal entry is a record of a financial transaction in the accounting system, showing the accounts affected, the amounts debited and credited, and the date of the transaction.