Common use of A general ledger Clause in Contracts

A general ledger. After a transaction is entered in a journal, that information also should be transferred to the proper accounts contained in the general ledger. The general ledger summarizes chronologically the activity and financial status of all the accounts of an organization. The process of transferring transaction information from a journal to a ledger is known as “posting.” The entries in the journal and ledger should be cross-indexed to permit the tracing of any recorded transaction (i.e., an “audit trail”). Periodically, a “trial balance” is performed, to test the mathematical accuracy of the ledger and to prepare a statement of the financial position of an organization as of a particular date.