General Ledger

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General ledger accounts are used to post the economic activities. Posting is the name of transferring accounts from the book of prime entry to related ledger accounts. When all the transactions for a given period have been Journalized, the next step is to classify them according to the account affected. Ledger is a Book of Account that keeps separate record for each account. Ledger is the book of secondary entry.  An account in its simplest form is a T-shape. It should be noted that journal contains a chronological record while Ledger contains a classified record of all economic activities.

general ledger

>>> General Ledger Format


Video Lecture: General Ledger in Urdu & Hindi-Workbook Practice



Types of General Ledger

There are two types of ledger accounts


1. Standard General Ledger

Since the ledger keeps record of transactions that affect one head of account, therefore, it should provide all the information that a user may need. Usually the ledger is required to provide following information.

(a) Account #                   (b) Title of Account                         (c) Page #                              (d) Date

(e) Description                  (f) Reference                                    (g) Amount

general ledger accounting

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Standard General Ledger Format

2. Running Balance General Ledger

An alternative ruling of a ledger, which is generally adopted by commercial banks and some other business houses, is the entire ledger us divided into six columns.

general ledger quickbooks

 Download Format

Running Balance Ledger Format


>> Practice General Ledger Examples


General Ledger Posting Process

The process of posting is simple and involves following Four Steps:

  1. The debit part of journal entry is recorded on the debit side of the relevant account by credit account name (Source).
  2. The credit part of Journal Entry is recorded on the credit side of the relevant account by debit account name (Source).
  3. In the reference column of the general journal the code or page number of ledger account are noted.
  4. In the reference column of the ledger account the page number of the journal is noted.


Balancing General Ledger Account

This is Four Step process for Standard General Ledger Format.

  1. Find the total of debit side and find the total of credit side. Put bigger value both sides in Total.
  2. Calculate the difference between the two sides. This is the Balance (The balancing figure between the two sides).
  3. Write the balance on the smaller side with key words “Balance c/d”. However, the balance will be known by the larger side i.e. if the debit side is greater than the credit side, the balance will be known as debit balance and vice versa.
  4. Bring down the debit balance on the debit side writing the words in Description column “Balance b/d”. Similarly, bring down the credit balance on the credit side be writing the words in the Description column “Balance b/d”.


>> Normal Balance using for Debit and Credit Treatment.


>> Practice Multiple-Choice Questions specially design for General Ledger conceptual practice…


>>> General Ledger Problems and Solutions.


General Ledger Example


Post following entries to Cash Standard Ledger Account and Cash Running Balance Ledger Account:


Solution 1. Cash Standard General Ledger Account:

general ledger example


Solution 2. Cash Running Balance Ledger Account:

general ledger chart of accounts


>>> Practice General Ledger Quiz 1 and Quiz 2.


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Sehgal, A., & Sehgal, D. (n.d.). Advanced Accountancy (Vol. I & II). New Delhi: Taxmann Publication Pvt. Ltd.

Shukla, M. C., Grewal, T. S., & Gupta, S. C. (2008). Advanced Accountancy (Vol. I & II). New Delhi: S Chand & Co.

Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2012). Accounting Principles (10th ed.). Hoboken: John Wiley & Sons, Inc.

Williams, M., & Bettner, H. (1999). Accounting (The basic for business decisions). (11th, Ed.) USA: Irwin McGraw- Hill.



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  3. We are really excited about Journaling. I write in three journals. How many do you use?

  4. General ledger is important concept of accounting. Thank you sir, i understand this concept better in this excellent website. Keep continue these type of writing Sir.

  5. A general ledger is a ledger that serves as a central repository for accounting data transferred from all sub ledgers like accounts payable, accounts receivable, cash management, fixed assets, purchasing and projects.

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