Glossary · Bookkeeping basics
General ledger (GL)
A general ledger is the complete record of every transaction in a business, organized by account. Each account in the chart of accounts has its own page of debits and credits with a running balance. The financial statements, such as the balance sheet and profit and loss, are summaries of the general ledger.
Glossary / General ledger · Also called nominal ledger, book of final entry
How it works
Every invoice, bill, payment, deposit, cheque and journal entry ends up as lines in the general ledger. A sale might add to the Sales Income account and Accounts Receivable at the same time. The ledger keeps both lines and the balance of each account after them.
Accountants use the general ledger report to check the detail behind a balance: why the phone expense looks high, or what makes up the balance in a clearing account. In manual bookkeeping, entries were first written in a journal and then posted to the ledger. Software does the posting for you as soon as a transaction is saved.
Worked example: The Office Supplies account for a month
A company starts May with $0 in Office Supplies. It writes a $45 cheque for printer paper on May 4, enters a $120 bill for toner on May 12, and gets a $20 credit for a returned item on May 20.
The general ledger for that account shows three lines and ends May at $145. Running the profit and loss for May shows Office Supplies of $145, the same figure.
| Date | Entry | Debit | Credit | Balance |
|---|---|---|---|---|
| May 4 | Cheque, paper | $45 | $45 | |
| May 12 | Bill, toner | $120 | $165 | |
| May 20 | Vendor credit | $20 | $145 |
In AcboBooks
The General Ledger report lists every account's postings over a period with opening and closing balances, and the Account Register shows one account with a running balance. Clicking an account on the Profit & Loss or Balance Sheet opens its register for the same dates.
Related terms
- Chart of accounts (COA)
- Journal entry (JE)
- Double-entry bookkeeping
- Trial balance (TB)
- Debits and credits (Dr / Cr)
Related on this site
Updated October 25, 2026. General information, not tax, legal or accounting advice. Rules and rates change; check with the IRS, the CRA, your state or province, or your accountant.
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