Free General Ledger Templates (Word, Excel)
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FAQ
What is a general ledger and what does it record?
A general ledger is the master accounting record that holds every financial transaction a business makes. It tracks debits, credits, and running balances across accounts like assets, liabilities, revenue, and expenses, forming the basis for financial statements and a complete, traceable history of company finances.
How is a general ledger organized?
It is organized into separate accounts, each grouped under categories such as assets, liabilities, equity, income, and expenses, often identified by a chart of accounts. Every entry records a date, description, debit or credit amount, and updated balance so transactions stay traceable.
What is the difference between a general ledger and a journal?
A journal records transactions in chronological order as they happen, while the general ledger sorts those entries by account to show balances. The journal is the first record, and posting to the ledger organizes the information for reporting and reconciliation.
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