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General ledger

Also called: Nominal ledger

What is a general ledger?

The general ledger holds the accounts for assets, liabilities, capital, income and expenses.

The double entry is made in the general ledger.

It holds one total for all the credit customers and one for all the credit suppliers. The detail behind those totals is in the sales ledger and the purchases ledger.

Example

At the end of a month a sales day book totals £860.00. Ignore VAT. In the general ledger, Trade receivables is debited with £860.00 and Sales is credited with £860.00.

Why it matters

The trial balance is copied from the balances in the general ledger. An error left there goes on into the year-end accounts.

Practise it

  1. The general ledger and the two subsidiary ledgers10 min, easyPremium
  2. 2Day books8 min, easyFree
  3. How to post the sales day book to the general ledger8 min, easyPremium
See the first roomThe general ledger and the two subsidiary ledgers

Ledger Drill is practice, not tax or accounting advice. If this looks wrong, tell us at [email protected].