Question

What is a general ledger account?

Answer 1

A general ledger account is an account in which a specific type of transaction is recorded.These transactions can be related to all the transactions that are combined into balance sheet and profit and loss account.A seperate general ledger account is created for each type of transaction.

Examples of general ledger accounts that are commonly used are:

Balance sheet accounts:

Cash,Accounts receivable,Marketable securities,Fixed assets,Accumulated depreciation,Accounts payable,Accrued liabilities,Sales taxes payable,Debt,Common stock,Retained earnings

Income statement accounts:

Sales,purchases,cost of goods sold,intrest expense,advertising expense etc.