Business Glossary

record of a business entity's accounts. The general ledger contains the accounts that make up the entity's financial statements. Separate accounts exist for individual assets, liabilities, stockholders' equity, revenue, and expenses. In some cases, control accounts summarize detail appearing in a subsidiary ledger (e.g., individual customer accounts tying into the accounts receivable account). A trial balance is prepared of the general ledger accounts at the end of the accounting period to assure that total debits equal total credits. The general ledger may be in bound or loose-leaf form, magnetic tape, in computer memory, or other form.

formal ledger containing all the financial statement accounts of a business. It contains offsetting debit and credit accounts, the totals of which are proved by a trial balance. Certain accounts in the general ledger, termed control accounts, summarize the detail booked on separate subsidiary ledgers.

central accounting record of an organization, summarizing changes in financial position as transactions are posted during an accounting period. Accounts owned by a bank's customers are kept separately in the bank's bookkeeping department on subsidiary accounts, or control accounts, which are used to update the general ledger. Control accounts may list customer accounts by type, maturity, collateral, and so on, although most banks follow the accounting format required by the Comptroller of the Currency and other regulatory agencies in listing accounts for the Reports of Condition and Income (call reports). The general ledger is also the basis for financial disclosures in the call report filed with banking regulatory agencies, stockholders, and other outside organizations.

formal ledger containing all the financial statement accounts of a business. It contains offsetting debit and credit accounts. Certain accounts in the general ledger, termed control accounts summarize the details booked on separate subsidiary ledgers.