What is General ledger and Trial balance?

A general ledger is a comprehensive record of all financial transactions for a business, organized by accounts such as assets, liabilities, equity, revenues, and expenses. It serves as the foundation for financial reporting and includes detailed entries that show the company's financial activities over a specific period. A trial balance, on the other hand, is a summary report that lists all the general ledger account balances at a particular point in time, ensuring that total debits equal total credits, which helps identify any discrepancies in the accounting records. Together, they are essential tools for accurate financial management and reporting.