General ledger is an accounting ledger that are commonly maintained in any business or company or organization. General ledger means a group of head of accounts. Each head of account is classified with main head of account and sub-head of account related to the main head of account. All accounting transactions both debit and credit are entered in the General ledger head of account wise in the respective folios. Each folio is formatted with specific heading like main head of account, sub-head of account, date, particulars, debit and credit.
All the entries to the General ledger is coming through payment cashbook, receipt cashbook, bank reconciliation etc., General ledger is closed at the end of the month. General ledger becomes the source for preparing monthly accounts, quarterly accounts, half-yearly accounts and annual accounts.
