Definition

Noun: A general ledger is the primary, comprehensive accounting record for a business or organization. It contains a complete summary of all financial transactions, organized into individual accounts. Each account within the general ledger records the offsetting debits and credits for a specific asset, liability, equity, revenue, or expense.

Usage

The general ledger serves as the central repository from which financial statements are prepared. It is the core component of a double-entry bookkeeping system. - The accountant posted the journal entries to the general ledger. - All transactions must eventually be recorded in the general ledger. - The integrity of the balance sheet depends on an accurate general ledger.

Advanced Usage

• "To close the general ledger": To finalize the accounting records for a period (e.g., a month or year) by posting all adjusting entries and preparing the accounts for the next period.
  • The finance team works late at the end of the quarter to close the general ledger.
• "General ledger account": A specific record within the general ledger, such as "Cash," "Accounts Payable," or "Sales Revenue."
  • Please verify the balance in the Accounts Receivable general ledger account.

Variants and Related Words

• Subsidiary Ledger (Sub-ledger) (noun): A detailed ledger that summarizes transactions for a specific type of account (e.g., accounts receivable, accounts payable). The total of a subsidiary ledger must match the balance in its corresponding control account within the general ledger.
• Chart of Accounts (noun): A structured list of all the account names and numbers used in a company's general ledger.

Synonyms

• Nominal Ledger: (Chiefly British) Another term for the general ledger.
• Main Ledger: Emphasizes its primary, central role in the accounting system.

Related Phrases

• "Post to the general ledger": The process of transferring summarized transaction data from journals or sub-ledgers into the appropriate general ledger accounts.
  • After reviewing the journal, the bookkeeper will post to the general ledger.
• "General ledger balance": The net amount (debit or credit) in a specific account within the general ledger at a point in time.
  • The general ledger balance for the cash account should match the bank statement.

Noun

1. the ledger that contains all of the financial accounts of a business; contains offsetting debit and credit accounts (including control accounts)