What Is a Gl Balance

Key Takeaways. A general ledger is a record of all of the accounts in a business and their transactions. Balancing a general ledger involves subtracting the total debits from the total credits. All debit accounts are meant to be entered on the left side of a ledger while the credits on the right side.

What is GL account for?

A general ledger (GL) is a set of numbered accounts a business uses to keep track of its financial transactions and to prepare financial reports. Each account is a unique record summarizing each type of asset, liability, equity, revenue and expense.

How many numbers are in a GL account?

When setting up new GL accounts, it’s important to define your account numbers correctly, especially for reporting purposes. Account numbers must be a minimum of four and a maximum of ten numbers.