General Ledger

A general ledger (GL) is the master accounting document that serves as a central repository for all of a company's financial data. It provides a complete, itemized record of every financial transaction over the life of the company, with debit and credit account records validated through a trial balance.

Organized according to the company's Chart of Accounts (COA), the general ledger contains all the individual accounts needed to produce the primary financial statements, including the balance sheet and the profit and loss statement. Each transaction is recorded through a journal entry, which posts debits and credits to the respective accounts within the ledger.

The general ledger is the definitive single source of truth for a company's financial data. The process of closing the books at the end of an accounting period involves reconciling sub-ledgers and ensuring the general ledger is accurate and complete, forming the basis for all financial reporting and analysis.