The general ledger is the record of movements of a specific accounting account.

FacturaDirecta is the best way to keep your accounting up to date. Create an account and start for free.

It is very useful to know and control and monitor the increases and decreases that a specific accounting account has experienced.

The general ledger book is not mandatory for companies but is very useful, from an accounting point of view, because it collects all the movements of the general ledger accounts during a specific accounting period.

How are movements recorded?

Traditionally, entries to a general ledger account were made with the classic “T” format

The entries and exits of the account are recorded on the right side of the “T” (credit) or on the left (debit) depending on the type of movement and the accounting account.

Currently they are recorded in the form of a table and collect more information in addition to account movements, such as the date and concept of the movement:

Balance of a general ledger account

The balance of a general ledger account is the difference between the debit and credit, so that the balance will be:

• Debtor: when the debit is greater than the credit.

• Creditor: when the credit is greater than the debit.

• Null: when the result of the difference is zero.

We hope this information is very useful to you.