The general ledger
Objective: Trace ledger balances back to journal entries.
Recommended first: T-accounts
Posting copies each journal line into its account in the general ledger. The ledger shows every movement for one account in date order, with a reference to the journal entry and a running balance.
Tracing is a core bookkeeping skill: start from a ledger balance and follow each row back to its entry and source document. The simulator's ledger view links every row to the entry that created it.
Traceability is what makes a ledger trustworthy. Every row should lead back to one journal entry, and every entry to a source document. Auditors and reviewers start from a balance and work backward, so a ledger without references is hard to rely on. The ledger simulator in this course shows each row's entry ID and lets you open the entry.
Running balances help catch errors early: a sudden jump or a sign change usually points to the row that caused it.
Check your work
- Can you trace this balance to specific entries?
- Does each row reference its entry?
- Does the running balance stay on the normal side?
Entry J-14: Dr Accounts Receivable $900 / Cr Service Revenue $900 posts one row to each ledger, both referencing J-14.
| Account | Debit | Credit |
|---|---|---|
| Accounts Receivable | $900.00 | |
| Service Revenue | $900.00 |
Common mistakes
✗ Posting to the wrong ledger even though the journal entry was right.
✓ Check the account code on every posted row.
Guided practice
Use hints freely here.
Item 1 of 1
Accounts Receivable from postings
Starting from zero, a business sends invoices of $500.00, $1,650.00, $450.00 and collects $650.00 and $200.00. What is the Accounts Receivable balance, and how much service revenue was recognized?
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Independent practice
Try these without hints. Completing the lesson needs at least one independent item solved without revealing the answer.
Item 1 of 2
Fix a posting to the wrong ledger account
On Mar 27, 2026, Maple Street Tutoring finds that a correctly journalized $370.00 supplies purchase on account was posted to the Supplies Expense ledger instead of the Supplies ledger. Record the correcting entry.
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Key terms
- General ledger
- The collection of all accounts with their detailed postings.
- Posting
- Copying journal lines to their ledger accounts.
References and provenance
- OpenStax, Principles of Accounting, Volume 1: Financial Accounting (accessed 2026-10-29)
Original lesson written for Bookkeeping Exercises (AI-assisted drafting). Calculations are verified by the platform's automated accounting tests. Not yet reviewed by a credentialed accountant. Updated 2026-10-29.