General Ledger

The general ledger is the main record that contains all accounts and their transactions.

It summarizes postings from journals and provides account balances used to prepare trial balances and financial statements.

- Used in day-to-day bookkeeping and journal entries to record transactions correctly.
- Used when preparing trial balances and reconciling accounts.

- Example: Accountants use **General Ledger** when recording transactions and preparing the trial balance.

- Why it matters: Ensures accurate records, supports reliable reporting, and reduces posting and reconciliation errors.