2.Benefits
of General Ledger
- The general
ledger provides the position of the business at any given point of time.
For example an Cash ledger will reflect the cash in hand as on date,
the bank ledger will reflect the bank balance.
- It facilitates
Bank Reconciliation since all the transactions pertaining to a single bank
account are recorded in a single place. A
- lso since the
ledgers are classified at the time of creation itself, an
organization can view all its debtors ledgers at one go.
- For auditors,
the general ledger is an insight to an organization’s transactions.
Detailed analysis of ledgers can give the auditors a deep understanding of
the business.
The very base of accounting is
Journal entry and General Ledger is the skilful grouping and presentation of
the Journal entries. General ledgers provide structure to accounting and
facilitate preparations of trial balance which in turn facilitates preparation
of financial statements.
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