1. Definition and Role of the General Ledger
While journals record transactions in order of time, the General Ledger (GL) groups transactions by account type. It is often called the “book of final entry.” The general ledger maintains the current balance for every single account in the company’s chart of accounts.
2. The T-Account Conceptual Model
For teaching and quick analysis, accountants use the T-Account, a simplified version of a ledger account that looks like the letter “T”.
                          Account Name
==============================================================
               Debit (Left Side) | Credit (Right Side)
                                 |
  2026-04-01 Cash Sale   $5,000  | 2026-04-05 Paid Rent    $1,200
  2026-04-10 From Debtor $2,000  | 2026-04-12 Bought Supply  $400
                                 |
---------------------------------+----------------------------
  Total Debits           $7,000  | Total Credits           $1,600
==============================================================
  Ending Balance Balance $5,400  |

3. The Running-Balance Ledger Format
In real-world computer systems and formal paper ledgers, companies use a running-balance format. This layout updates the account balance after every single entry.
Account: Accounts Receivable                                    Account No: A105
=================================================================================
Date         Explanation          Ref      Debit ($)     Credit ($)   Balance ($)
---------------------------------------------------------------------------------
2026-05-01   Opening Balance      —                                   4,200 (Dr.)
2026-05-04   Credit Sales Invoice SJ09        1,800                   6,000 (Dr.)
2026-05-18   Cash Received        CR44                       2,500    3,500 (Dr.
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