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What are the 9 terms of a general ledger?
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- What Is A General Ledger?
- How A General Ledger Works
- How A General Ledger Functions with Double-Entry Accounting
- What Does A General Ledger Tell You?
- A Balance Sheet Transaction Example
- An Income Statement Transaction Example
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 statemen...
A general ledger is the foundation of a system employed by accountants to store and organize financial data used to create the firm’s financial statements. Transactions are posted to individual sub-ledger accounts, as defined by the company’s chart of accounts. The transactions are then closed out or summarized in the general ledger, and the accoun...
A general ledger is used by businesses that employ the double-entry bookkeeping method, which means that each financial transaction affects at least two sub-ledger accounts, and each entry has at least one debit and one credit transaction. Double-entry transactions, called “journal entries,” are posted in two columns, with debit entries on the left...
The transaction details contained in the general ledger are compiled and summarized at various levels to produce a trial balance, income statement, balance sheet, statement of cash flows, and many other financial reports. This helps accountants, company management, analysts, investors, and other stakeholders assess the company’s performance on an o...
If a company receives payment from a client for a $200 invoice, for example, the company accountant increases the cash account with a $200 debit and completes the entry with a credit, or reduction, of $200 to accounts receivable. The posted debit and credit amounts are equal. In this instance, one asset account (cash) is increased by $200, while an...
The income statement follows its own formula, which works as follows. When a company receives payment from a client for the sale of a product, the cash received is tabulated in net sales along with the receipts from other sales and returns. The cost of sales is subtracted from that sum to yield the gross profitfor that reporting period. The income ...
- Will Kenton
- 2 min
What is a General Ledger (GL)? In accounting, a General Ledger (GL) is a record of all past transactions of a company, organized by accounts. General Ledger (GL) accounts contain all debit and credit transactions affecting them.
A general ledger or accounting ledger is a record or document that contains account summaries for accounts used by a company. In other words, a ledger is a record that details all business accounts and account activity during a period.
The general ledger (also called a general journal or GL) summarizes all the financial information you have about your business. It lists every accounting transaction for you to review. In the past, the general ledger was literally a ledger—a large book where financial data was recorded by hand.
A general ledger is a system used to document all of a company’s financial transactions over a specific period. The most common types of general ledger accounts are asset, liability, equity, and operating and non-operating revenue and expense accounts.
General Ledger Definition. The General Ledger is a vitally important accounting tool that tracks all financial transactions for a company. It includes all revenue and expenses, as well as assets and liabilities. This information is used to track a company’s overall financial health and performance.
