General Ledger Definition, Function, How to Make General Ledger

What is a general ledgerThe general ledger is nothing but a ledger in accounting. The following is the complete definition, function, and how to create a general ledger. Read more on the ActivelyShare Blog.

As a layman, maybe not many know what a general ledger is.

The general ledger is a very important component in accounting because it contains the records of all financial transactions.

To know more about general ledgers in the world of accounting, let’s look at the following review.

What is General Ledger?

The General Ledger is the accounting record that compiles each company’s financial transactions to provide accurate entries for the financial statements.

Double-entry bookkeeping requires a balance sheet to ensure that the debits equal the total credits.

The function of the general ledger is to help achieve this goal by compiling journal entries and enabling accounting calculations.

In addition, the general ledger also acts as a recording system for all financial data of the company whose debit and credit account records have been validated by the trial balance.

The general ledger also provides information regarding the records of every financial transaction that occurs during the company’s operations.

In addition, it also has company account information that accountants need to make company financial statements.

Each transaction data in the general ledger is also separated by type, then needs to be entered into the accounts of assets, owner’s equity, liabilities, income, and expenses.

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