Accounting Resource
What Is a General Ledger?
The general ledger is the complete record of all posted accounting entries by account.
How It Works
Each journal entry posts debits and credits to ledger accounts.
Every account has a running balance that updates after each posting.
What You Can See
Transaction date and source.
Debit and credit movement.
Running account balance and references.
Step-by-Step Guidance
- Post source documents accurately.
- Review ledger by account weekly.
- Investigate unusual balances before month-end.
Small-Business Use Case
A retailer used the ledger to find repeated bank charges that were being posted to miscellaneous expenses. Reclassifying them gave a cleaner expense analysis.
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FAQ
Is the general ledger the same as trial balance?
No. Trial balance is a summary of ledger balances at a point in time.