How a General Ledger Works?

Business & Management
#1

A general ledger is the cornerstone of an accounting system that stores and organizes financial data required to prepare financial statements for a company. Individual sub-ledger accounts are established by the company’s chart of accounts, and transactions are posted to them.
The transactions are subsequently closed off or summarised in the general ledger, and the accountant creates a trial balance, which is a summary of the balances of each ledger account. The trial balance is reviewed for mistakes and modified as necessary by posting more entries, and the adjusted trial balance is then utilized to create the financial statements.