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General ledger

General ledger is the master record containing every account used by a business. Journal entries are posted here after they are recorded, so each account holds a running total of its transactions.

Also known asthe ledger · GL

ByHoang TruongUpdated

FrameworkDouble-entry bookkeeping

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A four-step flow diagram traces the life of a transaction from recording to verification. Journal entries (the chronological record) are posted to the general ledger account by account, where they accumulate into individual account balances, which are then extracted as a trial balance — an equality check confirming that total debits equal total credits. The three connectors between steps are labelled "posted to", "accumulate into", and "extracted as", describing what happens at each transition.

Where it fits
SubjectFinancial AccountingCoreTopicDouble-Entry & the Bookkeeping CycleCore

Check yourself

PracticeCORE

In the accounting cycle, what distinguishes the general ledger from the general journal?

Select an answer to check your understanding.
General Ledger (GL) — Definition & Role in Accounting