general ledger example

A general ledger example illustrates how financial transactions are recorded and organized in accounting. The general ledger serves as the central record for all financial activities of a business, including assets, liabilities, equity, revenue, and expenses. In an example, when a company makes a sale, the transaction is recorded as a debit in the cash account and a credit in the sales revenue account. This ensures that the accounting equation (Assets = Liabilities + Equity) remains balanced. Understanding general ledger examples is essential for businesses to track financial performance, generate reports, and maintain accurate financial records.