This ledger helps businesses track outstanding receivables and manage cash flow efficiently.
The general ledger is usually divided into at least seven main categories: assets, liabilities, owner's equity, revenue, expenses, gains and losses.
The purpose of the trial balance is, at a preliminary stage of the financial statement preparation process, to ensure the equality of the total debits and credits.
Additional columns to the right hold a running activity total (similar to a chequebook).
[9] The general ledger should include the date, description and balance or total amount for each account.