The general ledger is the master record of all accounts of an entity, organised by the chart of accounts, from which the trial balance and financial statements are produced. Detailed transactions often sit in sub-ledgers that post summarised entries to it.
Sub-ledgerA sub-ledger holds the detailed transactions of one area, such as loans, receivables, payables, fixed assets or securities, and posts summarised totals to the general ledger. The sub-ledger to ledger reconciliation checks that the two agree.
Chart of accounts (CoA)The chart of accounts is the structured list of every account in the general ledger, with codes grouped into assets, liabilities, equity, income and expenses. Groups often map local accounts to a group chart for consolidation and reporting.
Journal entryA journal entry records a transaction in the books with equal debits and credits, a date, accounts and a description. Manual journals posted at period end are a classic audit focus because they can bypass system controls.
Trial balanceA trial balance lists the closing balance of every general ledger account at a date to check that total debits equal total credits. It is the starting point for preparing financial statements and for audit work.
Chart of accounts (CoA)The chart of accounts is the structured list of every account in the general ledger, with codes grouped into assets, liabilities, equity, income and expenses. Groups often map local accounts to a group chart for consolidation and reporting.
Trial balanceA trial balance lists the closing balance of every general ledger account at a date to check that total debits equal total credits. It is the starting point for preparing financial statements and for audit work.