GL (General Ledger) is the master record of all a company's financial transactions, providing a high-level summary of assets, liabilities, equity, revenue, and expenses for financial statements. SL (Sub-ledger or Subsidiary Ledger) provides detailed breakdowns of specific, high-volume accounts—such as accounts receivable, payable, or inventory—feeding summarized totals into the GL.
Understanding the interplay between the general ledger (GL) and subsidiary ledgers (SL) is crucial for accurate financial management. They work together to provide a complete and balanced view of your company's finances.
A general ledger is your master chart of accounts that shows a list of transactions, you cannot run a business without it. A sub-ledger explains transactions and feeds into the general ledger. You do not have to have a sub-ledger. However, we find that many small businesses do better when using sub-ledgers.
General ledger (GL) reconciliation involves comparing the sub-ledgers and resolving discrepancies. SL reconciliation may involve comparing individual sub-ledger entries with supporting documents.
In FAMIS, Subsidiary Ledger (SL) accounts are six-digit numbers used to track revenues, expenses, budgets and encumbrances for a single department and purpose.
A Stop Loss is an instruction to close a trade at a specific rate or amount. If the market reaches your requested rate and you have lost the predetermined amount, the Stop Loss will trigger and automatically close your position. SL is mandatory on every position with the exception of non-leveraged BUY positions.
For example, an accounts receivable subledger contains individual customer transactions, providing a granular view of outstanding balances. In contrast, the general ledger maintains summarized data for various financial categories, offering a broader but less detailed perspective.
Both general ledger and subledger accounts are used to record financial transactions. The primary difference between the two is that the general ledger is a set of master accounts, whereas the subledger is a set of accounts that is a subset of the general ledger.
Typically, the accounts of the general ledger are sorted into five categories within a chart of accounts. These five categories are assets, liabilities, owner's equity, revenue, and expenses.
The GL can be mainly categorized into five Types of General Ledger Accounts:
An accounting journal entry is a mechanism for recording an accounting transaction in a company's accounting records, such as accounts receivable, cash, investments, equipment, inventory, land, and so on.
There are two types of ledgers: general ledgers (containing information on all accounts) and subsidiary ledgers (specific to certain general ledger accounts). The chart of accounts serves as a business blueprint and includes five categories: Asset accounts (what a company owns) Liability accounts (what a company owes)
The general ledger to subledger reconciliation process generally consists of the following steps:
The three golden rules of accounting are (1) debit all expenses and losses, credit all incomes and gains, (2) debit the receiver, credit the giver, and (3) debit what comes in, credit what goes out.
Examples of General Ledger Accounts
asset accounts such as Cash, Accounts Receivable, Inventory, Investments, Land, and Equipment. liability accounts including Notes Payable, Accounts Payable, Accrued Expenses Payable, and Customer Deposits.
Typically, businesses use many types of accounts to keep track of their financial information and current value. These can include asset, expense, income, liability and equity accounts.
Here's the difference: General Ledger (GL): • The master record of all financial transactions. Provides a summary of accounts (Assets, Liabilities, Income, Expenses, Equity). Used to prepare financial statements. Sub-Ledger (SL): • A detailed record that supports specific GL accounts.
A general ledger or GL code is a unique identification code that allows businesses to classify and track their financial activity. It helps organizations record information on purchases, sales, and other transactions to create more accurate accounting records.
There are four primary actions in the celebration of the Sacrament of Reconciliation, all of which contribute in some way to the healing that takes place: confession of sin; expression of contrition or sorrow for sin; doing penance ("satisfaction"), which expresses a desire to avoid sin; and absolution from sin.
Here are 8 steps that will help you understand how to do bank reconciliation:
Ability to:
The accounts payable subsidiary ledger is a breakdown of the total amount of payables listed on the general ledger. In other words, the subsidiary ledger contains the individual payables owed to each of the suppliers and vendors, as well as the amounts owed.
Sometimes, the general ledger is also known as the book of final entry.
The GL is the central record for all financial activity. AR to GL reconciliation specifically identifies and investigates differences between the AR subledger (which tracks all customer invoices, payments, and related adjustments) and the GL (which feeds into official financial statements).