How Do You Prepare A General Ledger?
Before answering the question “How to prepare a general ledger”, let us remember what this accounting concept means. We can understand general ledger as a list of accounts which are used in the accounting of a particular business. This ledger includes balance sheet and income statement accounts, which summarize all the financial data and changes to the financial data for the particular period of time, i.e. usually it is a month. We can specify three main steps in preparing this ledger: • Its preparation is one of the steps in the accounting cycle and this is done only after all the business transactions which occurred during the accounting period were recorded or journalized in the general journal. So the first step is preparing this edger is to journalize business transactions. • Afterward general journal records are posted into the general ledger accounts. The account is also an accounting concept and is used to record change in individual type of asset, liability, equity, income or
