Your accounting software will reserve space in the general ledger for each general ledger account.
There are also separate general ledger accounts for miscellaneous items that don't have their own column in the journals, but are entered in a 'miscellaneous' column.įor example, Cash, Accounts Receivable, Accounts Payable, Sales, Purchases, Telephone Expense and Owner's Equity are all examples of general ledger accounts. Tools for keeping an accurate general ledgerįor each account title shown on your sales and cash receipts journal columns and your cash disbursements journal columns, there is a general ledger account. In addition, your financial statements are built from the general ledger. This accounting-must functions as a permanent summary of all your supporting journals, such as the sales and cash receipts journal and the cash disbursements journal. It terms of your company's books, it all boils down to the general ledger.
Closing your books and maintaining your general ledger should be one of your top priorities. The general ledger reflects a permanent summary of all your supporting journals, such as the sales and cash receipts journal and the cash disbursements journal.
