General Ledger

Definition

The master accounting record containing all financial transactions, organized by account. It's the single source of truth for a company's finances, assuming someone entered everything correctly.

Example Usage

Closing the books required ensuring every transaction in subsidiary ledgers properly posted to the general ledger.

Origin

Fundamental component of double-entry bookkeeping dating to the Renaissance

Fun Fact

The general ledger must always balance—debits equal credits—which is either beautifully elegant or infuriating when you're $0.27 off at midnight on close day.

Source: Fundamental accounting principles

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