What is the accounting general ledger?
The accounting general ledger is one of the 3 compulsory accounting books, along with the journal and the inventory book. It contains all the accounts used by the company in its bookkeeping and comes in 2 formats:
- The general ledger: this contains accounts for classes 1 to 7.
- The subsidiary ledger: the customer subsidiary ledger details the 411 accounts and the supplier subsidiary ledger details the 401 accounts.
The accounting ledger is a mandatory document that must be kept for at least 10 years. It is therefore frequently chosen by companies in dematerialised form.
What is the purpose of an accounting general ledger?
The accounting general ledger is a mandatory document that records all the financial transactions of a company. It is used by managers and chartered accountants, who help to record transactions.
Drawing up financial statements
It is used to keep the company’s general accounts and to draw up the financial statements (balance sheet, income statement, cash flow statement).
Comparing movements
Drawing up an accounting general ledger allows you to observe the correspondences between the various movements (credits and debits).
Check the nature of the operations
The accounting general ledger makes it possible to check the nature and details of all transactions, which helps to identify any errors.
What makes up the ledger?
The accounting ledger is generally divided into two sections: debit and credit. Transactions recorded on the debit side are those that increase assets or expenses, while transactions recorded on the credit side are those that increase liabilities or income.
All the following information are recorded in the register:
- Account number
- Account name
- Date of the transaction
- Title of the operation
- Amount
- Debit or credit
- Accounting journal
- Operation reference
- Lettering code