General Ledger transactions are posted to an Accounting Key. This accounting key consists of the Account String and the Object Code. Each of its six segments capture a different element (who, what, ...

The general ledger is used differently depending on the account in question, but the balance sheet is the best-known use of it, so we’ll start with that as an example.

The general ledger is a vast historical data archive of your company’s financial activities, including revenue, expenses, adjustments, account balances, and often much more. The detailed transactions ...

For example, let's say a business pays cash to buy new inventory from its suppliers. The bookkeeper credits (adds) the inventory account on the general ledger for the cost of that new inventory.

For example, let's say a business pays cash to buy new inventory from its suppliers. The bookkeeper credits (adds) the inventory account on the general ledger for the cost of that new inventory.

For example, if your general ledger shows a cash balance of $150,000 but your bank statement shows a balance of $145,000, your reconciliation will help you identify and resolve the $5,000 difference.