General Ledger Definition

The general ledger is used with double-entry accounting systems to document financial transactions. Information about transactions is categorized into accounts. The accounts are used to build financial statements.

General Ledger Extended Definition
The general ledger serves as a place to record your business’s transactions. The general ledger includes a date, name, description, and balance for each account.

The main accounts used in a general ledger are:

  • Assets
  • Liabilities
  • Owner’s equity
  • Revenue
  • Expenses

You need a general ledger to generate financial statements.

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