General Ledger In Bookkeeping

Posted by Ana Orwel on Tuesday, April 28, 2009

General ledger in bookkeeping system plays a very important role. It is main book where the financial data is specifically categorized into accounts.

The accounts are then divided into 3 categories:

• assets,
• liabilities and
• capital or equity.

Whenever a financial transaction occurs, it is entered into the general journal and after this the entries from general journal are posted into the general ledger under various accounts.

After this the account balance is calculated for the preparation of financial statements. The general ledger is generally used by the companies who have a double entry bookkeeping method. It is very helpful for the generation of financial reports in the bookkeeping system.

Find more information on general ledger here.