GlossaryAccounting & Bookkeeping
General Ledger
Also called: GL, ledger
What is General Ledger?
The general ledger holds every posted transaction organised by account, so each account shows its opening balance, movements and closing balance. It is the book the financial statements are built from.
Why General Ledger matters
The ledger is where questions get answered. A P&L says repairs cost ₹1.8 lakh; only the ledger says which repairs, on what dates, paid to whom.
How General Ledger works in practice
Review the largest expense ledgers monthly rather than only at year end. Odd entries are far easier to explain within weeks of posting than at audit.
Frequently asked questions
The journal records transactions in date order; the ledger reorganises the same entries by account.