General ledger
In one sentenceThe set of accounts to which entries are posted from the journal, so that each account shows its debit and credit movements and its balance.
Simply put
If you want to know “how much is in the bank?” or “how much does a certain customer owe?”, don't search the journal entry by entry; open the account in the general ledger.
Each account has an opening balance, its debit and credit movements, and its current balance. The trial balance is prepared from the ledger balances.
Worked example
The bank account in a store's general ledger for March.
Opening balance for the month (debit)50,000 SAR
Deposits during the month (debit)30,000 SAR
Payments during the month (credit)45,000 SAR
Closing balance for the month (50,000 + 30,000 − 45,000)35,000 SAR
Don't confuse it with
General journalIt records transactions by date, while the ledger collects them by account.