4.1 General Ledger
Definition
A general ledger, or GL, is a means for keeping record of a company’s total financial accounts
- The General Ledger is divided into 3 sections, namely the Balance Sheet Section, the Nominal Accounts Section and the Final Accounts Section
- The Balance Sheet Section is made up of the following accounts which are mostly reflected in the Balance Sheet:
- Capital
- Drawings
- Asset accounts
- Liability accounts
- The Nominal Accounts Sections is primarily made up of income and expense accounts which are reflected in the income statement
- The Final Accounts Sections is made up of the following accounts which are created and closed at the end of the financial year
- The Trading Account
- The Profit and Loss Account
Tasks
Complete the general ledger accounts for the journals you completed in the previous chapter.
