General Ledger Defined
Adams Stirling PLC


A "general ledger" is a report that shows all transactions that occurred in an association's account over a specified period of time. (Civ. Code §5200(a)(3)(D).) The general ledger is the core of the association's financial records since every transaction flows through the general ledger.

Every account that is on the association's chart of accounts is included in the general ledger, which should be set up in the same order as the chart of accounts. While the general ledger does not include every single accounting entry in a given period, it does reflect a summary of all transactions made.

The system used in recording entries on a general ledger is called a system of debits and credits. For every debit, there should be an equal and offsetting credit.

Associations must use accrual or modified accrual accounting for the general ledger. (Civ. Code §5200(a)(3).)

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Adams Stirling PLC