After recording the transactions in general journal, then these transactions posted to the General Ledger where we can find the balance of any account. For example, if we need to find out the balance of Cash Account then general ledger is the place where cash ledger will show all the transactions made with cash and at any time balance of cash account. Ledger accounts are very helpful for creating a trial balance which is the next step in the accounting cycle after general ledger. Trial balance shows the balances of all ledger accounts the business dealing with.

General ledger shows the transaction date, description of the transaction, the page number of the journal from which the transaction initiated, debit and credit and the new balance.

The posting to the general ledger is shown below (continue with our example from general journal – rent has been paid with cash $2000; lets say that cash account has an opening balance of $5,000)

posting to general ledgerAs can be seen above, the posting from the journal to the ledger are:

  1. Transfer the date of the transaction
  2. Transfer the page number
  3. Enter transaction amount and calculate account balance
  4. Enter the GL NO. in the journal as a checking process once the amount has been posted
  5. Repeat for all accounts

Back to previous stepContinue to next step


After reading this article you will be able to: