A general ledger, also known as the nominal ledger, is one of the main accounting record of a business using double-entry bookkeeping system. The accounts book contains accounts for items including current assets, fixed assets, liabilities, revenue and expense items, gains and losses etc.
It is a summary of all of the transactions that take in the company. It is made by posting transactions recorded in the general journal.
A general ledger can be divided into certain categories in which all accounts are grouped. They are:
It acts as a base for making important financial statements including income statement and balance sheet. It also helps to make a trial balance, which further ensures that total debit and credit amounts are equal.
A general ledger is further divided into sub-categories including:
Accounting firms provide services starting at a point where the clients wants them to. These firms also help by developing the accounting system further and making it more transparent and systematic.