General Ledger: A Complete Beginner’s Learning Hub
Learn how the general ledger organizes journal entries by account, updates debit and credit balances, supports subsidiary ledgers, and provides the information needed to prepare a trial balance and financial statements.
General Ledger Learning Path
Follow this order to understand how journal entries are posted, organized, and summarized by account.
Understand the Ledger
Learn the purpose of the general ledger and how it differs from the general journal.
What Is a General Ledger? →Learn Ledger Accounts
Study account titles, reference numbers, debit entries, credit entries, and running balances.
Explore Ledger Account Format →Post Journal Entries
Learn how journal entry amounts and references are transferred to the correct ledger accounts.
Learn the Posting Process →Calculate Account Balances
Determine ending balances and use them to prepare the trial balance.
Study Account Balances →The General Ledger Workflow
These four stages connect journal entries with account balances and the trial balance.
Record
Record the complete transaction in the general journal with equal debits and credits.
Post
Transfer each debit and credit amount to the appropriate general ledger account.
Balance
Calculate the updated balance of every account after all entries have been posted.
Summarize
List the ending balances in a trial balance to verify total debits and total credits.
Explore General Ledger Topics
Use these guides to learn ledger formats, posting, balances, control accounts, and subsidiary ledgers.
What Is a General Ledger?
Learn what the general ledger is and why it is the central record of account activity.
Read the Complete Guide →General Journal vs General Ledger
Understand the difference between chronological transaction recording and account-based organization.
Compare Journal and Ledger →Ledger Account Format
Learn the account title, account number, date, explanation, reference, debit, credit, and balance columns.
Study the Ledger Format →How to Post Journal Entries
Follow the complete process for transferring debit and credit amounts from the journal to ledger accounts.
Learn the Posting Process →T-Accounts and the Ledger
Understand how simplified T-accounts represent the debit and credit sides of ledger accounts.
Explore T-Accounts →Account Balances
Learn how debit and credit entries are combined to calculate each account’s ending balance.
Study Account Balances →Debit and Credit Balances
Understand normal balances and how unusual balances may indicate errors or special transactions.
Explore Normal Balances →Control Accounts
Learn how summary accounts connect the general ledger with detailed subsidiary ledger records.
Study Control Accounts →Subsidiary Ledgers
Understand how detailed customer, supplier, inventory, and fixed asset records support control accounts.
Explore Subsidiary Ledgers →Accounts Receivable Subsidiary Ledger
Learn how individual customer balances support the accounts receivable control account.
Explore Receivable Ledgers →Accounts Payable Subsidiary Ledger
Understand how individual supplier balances support the accounts payable control account.
Explore Payable Ledgers →Cash Ledger Account
Learn how cash receipts and cash payments are posted and how the cash balance is calculated.
Explore the Cash Ledger →Asset Ledger Accounts
Understand how cash, receivables, inventory, prepaid expenses, and fixed assets are tracked.
Explore Asset Ledgers →Liability Ledger Accounts
Learn how payables, accrued liabilities, loans, and other obligations are posted and balanced.
Explore Liability Ledgers →Equity Ledger Accounts
Understand how capital, stock, retained earnings, withdrawals, and dividends are tracked.
Explore Equity Ledgers →Revenue Ledger Accounts
Learn how sales, service revenue, returns, discounts, and other income accounts are maintained.
Explore Revenue Ledgers →Expense Ledger Accounts
Understand how payroll, rent, utilities, depreciation, supplies, and other expenses are tracked.
Explore Expense Ledgers →General Ledger Errors
Learn how to identify incorrect postings, duplicate entries, omissions, transpositions, and balance errors.
Review Common Ledger Errors →General Ledger Examples
Practice posting transactions and calculating account balances through complete worked examples.
View Worked Examples →Turn Journal Entries into Organized Account Balances
The general ledger brings all activity for each account together. Accurate posting, clear references, and properly calculated balances create the foundation for the trial balance, adjusting entries, and financial statements.
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Frequently Asked Questions About the General Ledger
What is a general ledger?
A general ledger is the central collection of accounts used to organize and summarize the debit and credit activity recorded by a business.
What is the difference between a journal and a ledger?
A journal records transactions in chronological order. A ledger organizes those transaction amounts by account so each account balance can be calculated.
What does posting to the ledger mean?
Posting means transferring debit and credit amounts from journal entries to the appropriate ledger accounts while preserving references between the records.
What is a subsidiary ledger?
A subsidiary ledger contains detailed records supporting a summary control account, such as individual customer balances supporting accounts receivable.
How is the general ledger used to prepare a trial balance?
After all transactions are posted and account balances are calculated, the ending balances are listed in the trial balance to compare total debits with total credits.
Continue Your Accounting Learning Path
After learning how entries are posted and account balances are calculated, continue with the trial balance to verify that total debit balances equal total credit balances.
Continue to Trial Balance