GENERAL LEDGER &

TRIAL BALANCE
Source: https://keydifferences.com/wp-content/uploads/2015/07/journal-vs-ledger.jpg
GENERAL LEDGER
 GENERAL LEDGER
• The general ledger is a
grouping of all accounts
used in the preparation
of financial statements.
• It is also called as the
“book of final entry”

(illustration fr
https://www.double-entry-bookkeeping.com/wp-content/upl
oads/general-ledger-example-account.png)
 GENERAL LEDGER
• The GL is the controlling account because
it summarizes all the activities that have
taken place.
• All the balances in the GL are used in the
preparation of the financial statements.
Source: https://cdn.wallstreetmojo.com/wp-content/uploads/2019/01/T-Account-1.jpg
 T-Account
• Is a simplified form of ledger.
• It is a graphic representation of what
is happening in an account.
• The basic form of the ledger is like
the letter “T”
Source:https://images.slideplayer.com/25/7709503/slides/slide_36.jpg
 The Journal Page 1

Date Account titles and explanation PR Debit Credit

1 2018
2 Nov. 1 Cash 110 450,000
3 ABC, Capital 310 450,000
4 To record initial investment.
5

The Ledger

Account: Cash Account No. 110

Date Explanation JR Debit Credit Balance

1 2018
2 Nov. 1 J-1 450,000 450,000

Account: ABC, Capital Account No. 310

Date Explanation JR Debit Credit Balance

1 2018
2 Nov. 1 J-1 450,000 450,000

POSTING – transferring from the GJ to the GL

TRIAL BALANCE
 Source: https://www.accountingformanagement.org/wp-content/uploads/2016/12/adjusted-trial-balance-img1.png

• A trial balance is a
report that shows
the ending
balances of each
account from the
general ledger at a
certain point of
time.