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A general ledger is a summary of all transactions that occur in a company (this is not entirely accurate, the general ledger shows you the balances and debits and credits to each specific account but does not provide detailed information on the transaction itself, the Journal is where the transactions are listed and then posted amounts are taken from the journal and put in the general ledger.)
The General Ledger, sometimes referred to as the Nominal Ledger is the main accounting record of a business which uses double-entry accounting. It generally includes such accounts as current assets, fixed assets, liabilities, revenues, expenses, capital, etc.
The general ledger is the group of accounts that support the value of accounts listed on the major financial records, such as Trial Balance, Balance Sheet, Statement of Owners Equity, Income Statement, etc.
The general ledger may be supported by one or more subsidiary ledgers that provide more detailed information on accounts listed. For example, an account payable (or receivable) subsidiary ledger will contain more specific information on each individual account.
For Example, say your General Ledger shows that you have a debit balance of $1500 in Accounts Receivable, this is a general amount, the subsidiary ledger will break down how much each customer actually owes. An example may be:
Customer A owes you $500
Customer B owes you $400
Customer C owes you $300
Customer D owes you $300
The general ledger shows the full balance while the subsidiary ledger provides more detailed information
What else can I help you with?
What is another name for General Ledger?
Another name for the General Ledger is Nominal Ledger.
The principal ledger that contains all the balance sheet and income statement accounts is the general ledger?
general ledger
What is the purpose of the general ledger?
what is the purpose of the ledger?
What is a general ledger also known as?
A nominal ledger
What is difference between Nominal Ledger general ledger?
General ledger is just another name given to nominal ledger. Nominal ledger is a ledger that maintains impersonal accounts like sale , purchase, capital etc.
What record that contains all accounts of company?
general ledger, general journal, special ledger, special journal, column balance ledger.
Should general ledger be capitalized if refering to it like General Ledger entries?
In general, "general ledger" should not be capitalized when used in a sentence unless it is part of a title or a heading. Therefore, you would typically write "general ledger entries" in lowercase. However, if you are referring to a specific system or software that uses "General Ledger" as part of its official name, then capitalization would be appropriate in that context.
When to capitalize General Ledger?
"General Ledger" should be capitalized when it refers to a specific accounting system or document, as it is a proper noun in that context. For example, you would write, "The General Ledger for the month of January is complete." However, when using the term generically to describe the concept of a ledger, it can be written in lowercase, such as "We need to update the general ledger."
How is subsidiary ledger different to the general ledger?
A subsidiary ledger is a group of similar accounts whose combined balances equal the balance in a specific general ledger account. The general ledger account that summarizes a subsidiary ledger's account balances is called a control account or master account. For example, an accounts receivable subsidiary ledger (customers' subsidiary ledger) includes a separate account for each customer who makes credit purchases. The combined balance of every account in this subsidiary ledger equals the balance of accounts receivable in the general ledger. Posting a debit or credit to a subsidiary ledger account and also to a general ledger control account does not violate the rule that total debit and credit entries must balance because subsidiary ledger accounts are not part of the general ledger; they are supplemental accounts that provide the detail to support the balance in a control account.
Do subsidiary ledger systems need to be reconciled with the general ledger?
yes
What is sub ledger?
A General Ledger is the main ledger & all other ledgers like, Account Receivable, Account Payable Ledgers are all sub ledgers. Previously there used to be only one ledger ie the General Ledger, but as Business grew, the number of accounts too multiplied, so, the General Ledger started getting fatter, therefore the need to bring out accounts of similar nature out of General ledger & create sub-ledgers. However, there is a representative account for the subledgers in the General Ledger, which maintains only the balances of the various accounts in the Sub-Ledgers.So, by doing this the Trial Balance can always be created from the General Ledger only.
Who invented the general ledger?
It is not known who invented the general ledger but use of it can be traced back to Genoa in 1340. General ledgers are used in accounting.
