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Accounting Definition General Ledger 
Nanonets
FEBRUARY 28, 2024
Welcome to our latest blog post, where we embark on a deep dive into the intricacies of the General Ledger (GL) — the bedrock of any business's financial system. We will start with the basics: What exactly is a General Ledger, and why is it paramount to your business's financial health?
Accounting Tools
SEPTEMBER 10, 2023
Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook What is a General Ledger? A general ledger is the master set of accounts that summarize all transactions occurring within an entity. There may be a subsidiary set of ledgers that summarize into the general ledger.
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Accounting Tools
JUNE 25, 2024
What is a T Account? A T account is a graphic representation of a general ledger account. The name of the account is placed above the "T" (sometimes along with the account number). The grand total balance for each "T" account appears at the bottom of the account.
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Accounting Tools
OCTOBER 28, 2023
Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook What is an Account Balance? An account balance is the current total in an account. General Ledger Account In accounting, the account balance is the current residual balance in an account.
Accounting Tools
MAY 19, 2023
Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What is a Ledger Account? A ledger account contains a record of business transactions. Terms Similar to Ledger Account A ledger account is also known as an account.
Accounting Tools
JULY 19, 2023
What is an Accounting Schedule? An accounting schedule is a supporting document that provides additional details or proof for the information stated in a primary document.
FinOps Foundation
OCTOBER 31, 2024
This total cost visibility improves accountability, ownership, and enables better decision-making around SaaS procurement. Some considerations include amending the definition of FinOps , updating elements of the Framework including Principles , Domains , Capabilities , and Personas.
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Accounting Tools
JUNE 7, 2023
Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook What is an Account? An account can have several meanings in the accounting profession. Account Record An account can be the record in a system of accounting in which a business records debits and credits as evidence of accounting transactions.
Accounting Tools
JUNE 12, 2023
Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What is a Subsidiary Ledger? A subsidiary ledger stores the details for a general ledger control account. Types of Subsidiary Ledgers A subsidiary ledger can be set up for virtually any general ledger account.
Future Firm
NOVEMBER 9, 2022
This is my complete guide to accounting automation in 2023. So if you want to: Learn the 8 benefits of automated accounting. Save time by automating your accounting processes. Automate all 15 areas of your accounting. What is Accounting Automation? Will Automated Accounting Replace You? Let’s get started.
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Accounting Tools
OCTOBER 4, 2023
This journal is most commonly found in a manual accounting system , where it is necessary to keep high-volume purchasing transactions from overwhelming the general ledger. For example, the debit relating to a purchase of office supplies would be to the supplies expense account.
Accounting Tools
SEPTEMBER 11, 2023
Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What is a Transaction? A transaction is a business event that has a monetary impact on an entity's financial statements , and is recorded as an entry in its accounting records.
Accounting Tools
JULY 25, 2023
Journalizing is the process of recording a business transaction in the accounting records. Journalizing can result in entries to the general ledger or to subsidiary ledgers. Ideally, the entry should note the impacted accounts, the debits and credits entered, a journal entry number, and a narrative comment.
Accounting Tools
JULY 8, 2023
Related Courses Accountants’ Guidebook Bookkeeping Guidebook The Balance Sheet What are Contra Accounts? A contra account offsets the balance in another, related account with which it is paired. Contra accounts appear in the financial statements directly below their paired accounts.
75 
Accounting Tools
DECEMBER 20, 2023
What is an Accounting Entry? An accounting entry is a formal record that documents a transaction. In most cases, an accounting entry is made using the double entry bookkeeping system , which requires one to make both a debit and credit entry, and which eventually leads to the creation of a complete set of financial statements.
75 
Accounting Tools
JUNE 8, 2023
Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What is the Accounting Cycle? The accounting cycle is the actions taken to identify and record an entity's transactions. The accounting cycle for individual transactions is noted below.
Accounting Tools
JULY 13, 2023
The unadjusted trial balance is the listing of general ledger account balances at the end of a reporting period, before any adjusting entries are made to the balances to create financial statements. The unadjusted trial balance is used as the starting point for analyzing account balances and making adjusting entries.
Accounting Tools
MAY 21, 2023
Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What is a Journal Entry? A journal entry is used to record a business transaction in the accounting records of a business. The general ledger is then used to create financial statements for the business.
Accounting Tools
OCTOBER 23, 2023
Related Courses Bookkeeping Guidebook Purchasing Guidebook What is a Purchase Ledger? The purchase ledger is a subledger in which purchases are recorded. The purchase ledger is part of the accounting department's database; it is not maintained by the purchasing department.
Accounting Tools
APRIL 28, 2024
Accounting for Sales Returns and Allowances This line item is the aggregation of two general ledger accounts , which are the sales returns account and the sales allowances account. Both of these accounts are contra accounts , which means that they offset gross sales.
Accounting Tools
JUNE 19, 2023
A post-closing trial balance is a listing of all balance sheet accounts containing non-zero balances at the end of a reporting period. If any revenue, expense, gain, loss, or summary account balances appear in the trial balance subsequent to the closing process, it is because they are associated with the next accounting period.
Accounting Tools
AUGUST 6, 2023
Year-end adjustments are journal entries made to various general ledger accounts at the end of the fiscal year , to create a set of books that is in compliance with the applicable accounting framework. Adjustments to general ledger accounts that have been reconciled as part of the closing process.
Accounting Tools
JULY 27, 2024
The deferred asset concept is not applied when a business uses the cash basis of accounting , since expenditures are recorded as expenses as soon as they are paid for under that method. Thus, these items would be charged to expense at once under the cash basis of accounting. They are as follows: Avoid initial recordation.
Accounting Tools
APRIL 4, 2023
Related Courses Bookkeeping Guidebook Corporate Cash Management How to Audit Cash Optimal Accounting for Cash What is the Petty Cash Book? In most cases, the petty cash book is an actual ledger book, rather than a computer record. This format makes it easier to record petty cash activity in the general ledger.
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Billing Platform
SEPTEMBER 25, 2023
Consisting of a series of steps, the accounts receivable process refers to the money owed to a business for the purchase and delivery of goods or services. Accounts receivable (AR) provides the critical link between making the sale and receiving payment. Once the payment is made, it is posted to the corresponding invoice(s).
Accounting Tools
OCTOBER 14, 2023
Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What is a Subsidiary Account? A subsidiary account is an account that is kept within a subsidiary ledger , which in turn summarizes into a control account in the general ledger.
Accounting Tools
JUNE 9, 2024
An extended trial balance is a standard trial balance to which are added columns extending to the right, and in which are listed the following categories: Initial balances per general ledger. These are the account totals as of the end of the accounting period , as compiled from the general ledger.
Accounting Tools
OCTOBER 26, 2023
Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook What is a Control Account? A control account is a summary-level account in the general ledger. This account contains aggregated totals for transactions that are individually stored in subsidiary-level ledger accounts.
Accounting Tools
APRIL 21, 2023
Related Courses Accounting for Leases What are the Criteria for a Capital Lease? This results in the recordation of the asset as the lessee's property in its general ledger , as a fixed asset. A capital lease is a lease in which the lessor only finances the leased asset, and all other rights of ownership transfer to the lessee.
Accounting Tools
SEPTEMBER 29, 2023
Collect Cost Information This information typically comes from the general ledger for actual costs , but the information can also be compiled through an activity-based costing system or some less formal collection methodology. Related Articles Budgetary Accountability Lifetime Cost Profit Planning Strategic Budgeting
Accounting Tools
SEPTEMBER 28, 2023
Related Courses Payables Management What is the Accounts Payable Ledger? An accounts payable ledger contains the detail for all invoices received from suppliers. The ledger tracks the specific payable information for each invoice, which includes the invoice number, invoice date, supplier name, and amount paid.
Accounting Tools
OCTOBER 22, 2024
The total of the transactions in the subledger roll up into the general ledger. For example, a subledger may contain all accounts receivable , or accounts payable , or fixed asset transactions. A summary-level entry is periodically recorded in the general ledger. Ending balance usage.
Accounting Tools
JULY 17, 2024
The imprest balance is the amount of cash stated in the general ledger for the petty cash account. Instead, when cash is issued to replenish a petty cash box , the debit is to the expenses for which cash was paid, while the credit is to the general cash account. This amount does not change.
52 
Accounting Tools
AUGUST 4, 2023
What is an Expense Account? Expense accounts store information about different types of expenditures in an organization’s accounting records. The phrase most commonly refers to travel and entertainment expenses, and also applies to a type of account. Both definitions are noted below.
Accounting Tools
JUNE 12, 2023
Audits have become increasingly common as the complexity of the two primary accounting frameworks , Generally Accepted Accounting Principles and International Financial Reporting Standards , have increased, and because there have been an ongoing series of disclosures of fraudulent reporting by major companies. Accounts payable.
Accounting Tools
APRIL 25, 2023
Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook What is a Clearing Account? A clearing account is a general ledger account that is used to temporarily aggregate the amounts being transferred from other temporary accounts.
Accounting Tools
MARCH 24, 2023
Related Courses Bookkeeping Guidebook Credit and Collection Guidebook How to Audit Receivables What is the Accounts Receivable Ledger? The accounts receivable ledger is a subledger in which is recorded all credit sales made by a business.
Accounting Tools
MAY 11, 2023
Related Courses Records Management What are Accounting Records? Accounting records are the original source documents , journal entries , and ledgers that describe the accounting transactions of a business. Accounting records support the production of financial statements.
Accounting Tools
JANUARY 18, 2024
What is a Journal in Accounting? The general journal is used to record more general, lower-volume transactions. Once entered into a journal, transactions are then posted to general ledger accounts. Entries made into a journal employ double-entry accounting , where balancing debits and credits are used.
Accounting Tools
SEPTEMBER 27, 2023
What is an Accounting Entity? An accounting entity is a business for which a separate set of accounting records is maintained. The accounting entity concept is used to establish the ownership of assets and obligation for liabilities , as well as to determine the profitability of a specific set of economic activities.
Accounting Tools
MARCH 11, 2024
What is an Accounting Worksheet? An accounting worksheet is a document used within the accounting department to analyze and model account balances. A worksheet is useful for ensuring that accounting entries are derived correctly. If the outcome is correct, the entries are then input into the general ledger.
Accounting Tools
APRIL 4, 2023
Related Courses How to Audit Payroll Optimal Accounting for Payroll Payroll Management What is a Payroll Journal? A payroll journal is a detailed record of accounting transactions related to payroll. The payroll staff creates journal entries that are recorded in the payroll journal, especially from the periodic payrolls.
40 Accounting Tools
OCTOBER 3, 2023
Related Courses Accounting for Inventory How to Audit Inventory What is the Purchases Account? The purchases account is a general ledger account in which is recorded the inventory purchases of a business.
Accounting Tools
FEBRUARY 3, 2024
A cash receipts journal is a subsidiary ledger in which cash sales are recorded. This journal is used to offload transaction volume from the general ledger , where it might otherwise clutter up the general ledger. The cash receipts journal is most commonly found in manual accounting systems.
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