Example of General Ledger

The general ledger is the primary record of transactions for a business, and is a primary record of accounting data. The general ledger is based on a series of credits and debits, intended to produce a balance which accurately shows an equal value on both sides of the balance sheet. This is called double entry accounting, and is the traditional Western method of account record keeping. The principles related to the general ledger are also the basis of the standard accounts balance process. General ledgers are also used as primary methods in bookkeeping, usually the most reliable comprehensive method of accounting for small business.

Examples of General Ledger:

To illustrate the posting of transactions in the general ledger, consider the following transactions taken from the example on general journal entries:

Date	Account Names	Debit	Credit
10/1	Cash	8700
	Capital		8700

10/8	Car parts	3700
	Accounts payable		3700

10/15	Expenses	2000
	Cash		2000

10/17	Cash	200
	Accounts Receivable	200
	Revenue		400

10/18	Expenses	375
	Car parts		375

10/25	Cash	625
	Accounts receivable		625

10/28	Accounts payable	700
	Cash		700

The above journal entries affect a total of seven different accounts and would be posted to the T-accounts of the general ledger as follows:

General Ledger

(T-Accounts)

Cash

Oct	1	8700
	17	400
	25	625

Oct	15	2000
	28	700

Accounts Receivable

Oct

700

Oct

625

Car Parts

Oct

3700

Oct

375

Accounts Payable

Oct

700

Oct

3700

Capital

Oct

8700

Revenue

Oct

400

Expenses

Oct	15	2000
Oct	18	375

https://en.wikipedia.org/wiki/General_ledger
https://www.wisconsin.edu/fadmin/sfs/89GLManual_01_07.pdf
https://www.finance.upenn.edu/ftd/documentation/mje_manual.pdf