Often referred to as the GL Account.
A general ledger represents the record-keeping system for a company’s financial data, with debit and credit account records validated by a trial balance.
It provides a record of each financial transaction that takes place during the life of an operating company and holds account information that is needed to prepare the company’s financial statements. Transaction data is segregated, by type, into accounts for assets, liabilities, owners’ equity, revenues, and expenses.
Key Details:
- The general ledger is the foundation of a company’s double-entry accounting system.
- General ledger accounts encompass all the transaction data needed to produce the income statement, balance sheet, and other financial reports.
- General ledger transactions are a summary of transactions made as journal entries to sub-ledger accounts.
- The trial balance is a report that lists every general ledger account and its balance, making adjustments easier to check and errors easier to locate.