General Ledger: What It Is, How to Use It, Example

What Is a General Ledger?

By Jeremy Bowman – Updated Aug 8, 2025 at 4:15 PM

Key Points

General ledger records each transaction both as a debit and a credit, ensuring balance.
Understanding the general ledger aids in interpreting financial statements like balance sheets.
Investors can review basic principles of the general ledger to grasp a company's financial health.

Accounting records known as ledgers are 5,000 years old, dating back to ancient Mesopotamians who recorded quantities on tablets using rows and columns. The double-entry accounting system, also known as the general ledger, dates back to the 1300s in Genoa, Italy. The system is still commonly used today.

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An accounting ledger book. — Image source: Getty Images

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About the Author

Jeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011. Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University. One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.

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