General Ledger

Author: Suhaib AhmadPublished Date: Last Update:
Organizing Transactions by Account

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.

3

Post Journal Entries

Learn how journal entry amounts and references are transferred to the correct ledger accounts.

Learn the Posting Process →

The General Ledger Workflow

These four stages connect journal entries with account balances and the trial balance.

1

Record

Record the complete transaction in the general journal with equal debits and credits.

2

Post

Transfer each debit and credit amount to the appropriate general ledger account.

3

Balance

Calculate the updated balance of every account after all entries have been posted.

4

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.

Featured General Ledger Guides

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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
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