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What is a General Ledger?

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General Ledger is a Group of accounts that are stored in a book or in electronics means containing all the transactions related to a business.A General ledger contains information that are required for the preparation of final accounts. All account of a business brought together for easy management of accounting is called general ledger.The term GL is used in short for General Ledger.

A general ledger generally contains the accounts of assets,liability,capital, expense and Income. While considering all account balance in a general ledger, The total of debit balance should be equal to credit balance as in double entry system as every business transactions have equal debit and credit.

A general ledger creates a systematic accounting environment in a business which helps to create the trail balance quickly. A general ledger arrange accounts chronologically,transactions are categorized and summarized in pages or electronic files called accounts. In a general ledger  We create separate pages for each account and in computerized accounting ledger information shows in electronic file format.

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