A general ledger
contains all the accounts for recording transactions relating to a company’s assets, liabilities, owners’ equity, revenue, and expenses. In modern accounting software
, the general ledger works as a central repository for accounting data transferred from all subledgers
or modules like accounts payable
, accounts receivable
, cash management, fixed assets, purchasing and projects. The general ledger is the backbone of any accounting system which holds financial and non-financial data for an organization.
The collection of all accounts is known as the general ledger. Each account is known as a ledger account. In a manual or non-computerized system this may be a large book.