What is a general ledger account

General Ledger (Ledger) is the main consolidated accounting register, which reflects data for the reporting year for all accounting accounts used by the company. It consists of General Ledger Accounts. For each account in General Ledger are recorded from the corresponding registers (order logs, etc.):

  • balance as of January 1 of the reporting year;
  • debit (in correspondence with the credited account) and credit (one amount) turnover per month;
  • balance at the end of the month.

The amounts of debit and credit turnover, as well as debit and credit balances for all accounts in General Ledger, must be equal, respectively. Accounts in the general ledger help to estimate the company’s expenses.

General Ledger Account Definition

In the Ledger of account, entries are made based on the log – loss on the accounts of the first order. The algorithm for recording invoices is as follows:

  • The main book opens for a year.
  • First, the balance for each account as of January 1 of the reporting year is transferred to it according to the General Ledger of the previous year, which should be arranged in ascending order of code numbers.
  • For each account of synthetic accounting, and in necessary cases for a sub-accountant, one or three sheets are opened, depending on the number of accounts corresponding to the debit of this account (sub-account).

General Ledger Accounts — Examples

If two or three sheets are opened for a particular account based on the results of the previous year, then the left edge of the second and third sheets is cut off along the “total debt” line so that they represent inserts. The only source for recording turnover in General Ledger is the order logs for the reporting month. The data of the order logs must be carefully checked against the corresponding accounts before entering them in General Ledger.

General Ledger Control Accounts

When transferring credit turnover to the debit of the corresponding accounts, the credited account and the number of the order log are specified. After recording individual credit amounts in General Ledger, the total credit turnover of this account is entered for the reporting month line. To avoid skipping the entry of amounts in General Ledger, make appropriate marks in the order log. Then output the balance at the end of the reporting period.

General Ledger Control Accounts — Examples

At the same time, it is advisable to check the identity of the balance at the beginning of the month for the journal – order and General Ledger. For accounts that have debit and credit balances, their amount is shown expanded. After writing all the necessary amounts in General Ledger, the date is put on each order log and signed by the person who made the entries in General Ledger. This control is very important. 

What is a general ledger account

Useful tips for accountants with little experience work need in any enterprise and in any organization. Therefore, “Economics and accounting” remains one of the most popular economic specialties. We have prepared a simple checklist that will help you not to get confused for a young specialist to a new job.

  1. A new job — especially if it’s the first one is always exciting. Try to collect yourself and not be nervous about nothing. You know everything. You were taught that. But be sure to refresh your knowledge before going to work — this way you will feel more confident. A lot of useful information can be found on professional sites.
  1. Learn as much as possible about the company. First of all, about its financial condition, activities, achievements, read the news, which may not always be positive. Objectively evaluate all this information. It is important to be aware of the company’s events from the first day. Also, get to know the people you will be working with: from the manager to the rank-and-file staff, even from other departments.
  1. Read the primary documents of your work area and the program that you will be working in. Study the accounting policy of the company, so you will understand what you need to research first, and which theory should be “studied” to get the necessary (may be missing) knowledge. If the company does not have an order on accounting policy, initiate its preparation. In general, if you see that there is not enough regulatory documents-report this to the manager, take the initiative!
  1. Ask as many questions as possible to your supervisor, mentor, or colleague. Be sociable, honest, and open to new information. This is the only way to quickly get up to speed and get familiar with the general principles of accounting services in the company or the work of your new Department. Don’t be afraid — your colleagues will help you.

To make the process of adapting to new responsibilities more effective, take notes. At least for the first time. Let the most important information be at your fingertips. You will remember everything in time. If you can’t remember the theory right away, Google it. In addition, there are many useful resources on the Internet — keep learning and developing. This will help you become a chief accountant much faster.