What Is GL Accounting?

How do you do GL account reconciliation?

The reconciliation process at the account level typically comprises the following steps:Beginning balance investigation.

Match the beginning balance in the account to the ending reconciliation detail from the prior period.

Current period investigation.

Adjustments review.

Reversals review.

Ending balance review..

What is general ledger with an example?

A common example of a general ledger account that can become a control account is Accounts Receivable. The summary amounts are found in the Accounts Receivable control account and the details for each customer’s credit activity will be contained in the Accounts Receivable subsidiary ledger.

What accounts are on the general ledger?

General Ledger AccountsAssets (Cash, Accounts Receivable, Land, Equipment)Liabilities (Loans Payable, Accounts Payable, Bonds Payable)Stockholders’ equity (Common Stock, Retained Earnings)Operating revenues (Sales, Service Fees)Operating expenses (Salaries Expense, Rent Expense, Depreciation Expense)More items…

Why we do GL reconciliation?

General Ledger Reconciliation Using GAAP Principles Provides a basis to check all other financial statements for accuracy. Offers a complete, accurate record of your company’s financial activity. Helps you spot theft within 30 days of its occurrence, hopefully while the losses are still small and manageable.

How do you start a general ledger?

When creating a general ledger, divide each account (e.g., asset account) into two columns. The left column should contain your debits while the right side contains your credits. Put your assets and expenses on the left side of the ledger. Your liabilities, equity, and revenue go on the right side.

How many types of ledger accounts are there?

three typesThe three types of ledgers are the general, debtors, and creditors. The general ledger accumulates information from journals. Each month all journals are totaled and posted to the General Ledger.

How reconciliation is done?

To do a bank reconciliation you would match the cash balances on the balance sheet to the corresponding amount on your bank statement, determining the differences between the two in order to make changes to the accounting records, resolve any discrepancies and identify fraudulent transactions.

What is GL accounting process?

What Is a General Ledger? A general ledger represents the record-keeping system for a company’s financial data with debit and credit account records validated by a trial balance. The general ledger provides a record of each financial transaction that takes place during the life of an operating company.

Is General Ledger and T accounts the same?

Understanding T-Account The visual appearance of the ledger journal of individual accounts resembles a T-shape, hence why a ledger account is also called a T-account. A T-account is the graphical representation of a general ledger that records a business’ transactions.

What is GL period?

Learn about GL periods. There are fifteen periods available in a fiscal or calendar year. The first GL period is Period 00/YY. It stores the beginning balances generated by the system in the OBACT journal and budget entries. … The Accounts Payable and General Ledger closing period is Period 13/YY (optional).

What is general ledger reconciliation?

General Ledger Reconciliation is the process performed by accountants to verify the integrity of account balances on the company’s general ledger of accounts.

How many types of reconciliation are there?

fiveThere are five main types of account reconciliation: bank reconciliation, customer reconciliation, vendor reconciliation, inter-company reconciliation and business-specific reconciliation.

Is the general journal the same as the general ledger?

The journal consists of raw accounting entries that record business transactions, in sequential order by date. The general ledger is more formalized and tracks five key accounting items: assets, liabilities, owner’s capital, revenues, and expenses.

What is GL posting?

Posting is the process of recording amounts as credits (right side), and amounts as debits (left side), in the pages of the general ledger. … Additional columns to the right hold a running activity total (similar to a chequebook).