Business glossary
General ledger
The central record containing a business’s account balances and transaction entries.
Example
An invoice, customer payment, supplier bill and bank fee affect different ledger accounts. The ledger brings those account entries together for a reporting period.
How it differs from related terms
A general ledger is broader than an invoice list. It records more than customer billing and supports the preparation of financial statements. Reconcile its receivable and payable balances with the detailed customer and supplier records.
Frequently asked questions
What is an example of general ledger?
An invoice, customer payment, supplier bill and bank fee affect different ledger accounts. The ledger brings those account entries together for a reporting period.
How should general ledger be interpreted?
A general ledger is broader than an invoice list. It records more than customer billing and supports the preparation of financial statements. Reconcile its receivable and payable balances with the detailed customer and supplier records.