General Ledger Account Analysis

Posted by Ana Orwel on Tuesday, April 28, 2009

The double entry system followed in the general ledger pays off during the general ledger account analysis. The general ledger tends to incorporate time as an element to the whole accounting process. This is why the general ledger is structured in 4 ways:

a) Accounting time
b) Order of liquidity
c) Account number
d) Accounting periods

Accounting period allows comparing two different accounts and at the same allows the comparison of the same account with itself over a period of time. This uses to detect the unusual changes in the balances.

General ledger account analysis usually includes exploration of the entries which were posted to the particular account during the accounting period. This exploration includes analysis of entry date, essence of entry and other information.

Find more information on general ledger here.