General ledger entries are coming from various accounting sources or records like cashbook for payment, receipt cashbook,journal day book and bank control account. General ledger entries will consist of both debit and credit transaction.
Though general ledger entries are to be posted daily from other accounting records, balancing of the general ledger entries are to be made for every month.
What is balancing of general ledger entries?
General ledger is a ledger which consists of folios or pages allotted for each and every head of account for both payments and receipts. In these individual head of account folios or pages of the general ledger, entries will be made on transaction basis or daily basis. At the end of the month all the debit entries and the credit entries in the general ledger for each head of account have to be summed up and balance to be arrived.
If the total of the debit entries are more than the credit entries then the particular head of account is called as debit balance. If the total of the credit entries are more than the debit entries then the particular head of account is called as credit balance. This is called balancing of general ledger entries.
Balancing of general ledger entries are to be made while compiling the accounts every month.
After balancing the head of account in the general ledger either the debit balance or the credit balance will be taken to Trial balance.
Balancing of general ledger entries will also be done at the time finalizing quarterly accounts, half-yearly accounts and annual accounts.
