A general ledger is the master set of accounts that summarize all transactions occurring within an entity.

The general ledger contains a debit and credit entry for every transaction recorded within it, so that the total of all debit balances in the general ledger should always match the total of all credit balances. If they do not match, the general ledger is said to be out of balance, and must be corrected before reliable financial statements can be compiled from it.

General ledger account is an account that contains record of balance sheet and transactions related to income statements. For example it includes the Investments, Equipments, Cash, Land, and Account Receivable Inventory.