A journal entry shows a record of a transaction and the accounts that are impacted
But what if we want to know the balance in an account?
The general ledger provides a chronological record of all the company’s transactions and the balance for each of a company’s accounts (as listed in the chart of accounts)
Once we post a journal entry, the general ledger gets automatically updated
QS: Have you been exposed to a general ledger before? If yes, what is it?