What is a general ledger?
submitted by Demetrius A. Funkytown

Frobvious Reasons

A general ledger is the main accounting record. It summarizes all the financial transactions of a business. It's organized by accounts like assets, liabilities, equity, revenues, and expenses.

JibblyGibbly

You can think of the general ledger as the master book where all the company's financial activities are recorded and categorized. It's kind of the backbone of financial reporting.

naw_wait

The general ledger, aka GL, has all the journal entries for each account. It gives you a full record, so it helps you prepare financial statements.

Wiaddababy Itzaboy

The general ledger is like a giant spreadsheet that tracks every financial activity across different accounts. It helps accountants make sure the books are balanced and accurate.

Boss Hogg

The general ledger is "general," because it incorporates all the accounts. It's made up of subsidiary ledgers and journals. Everything from those sub accounts goes on the general ledger.

It can be used to make an audit trail.

Nevva

It helps us see the total value of each account, like knowing the total cash on hand or total sales made during a period. It's a main account for gathering totals of smaller accounts.

Julius Squirrels

It's basically a big ledger that keeps track of all the debits and credits for every account. It helps you keep the accounting equation happy (Assets = Liabilities + Equity).