<div style="text-align: justify;"><b style="font-size: small; line-height: 20px;"><u>Overview</u></b><font size="2"><br></font></div><div style="text-align: justify;"><font size="2">A <font color="#009900"><b>general ledger</b></font> contains all the accounts for recording transactions relating to a company's assets, liabilities, owners' equity, revenue, and expenses. In <b><font color="#009900">SPS</font></b>, the general ledger works as a central repository for accounting data transferred from all subledgers or modules like accounts payable, accounts receivable, fixed assets, and purchasing. The general ledger is the backbone of any accounting system which holds financial and non-financial data for an organization. The collection of all accounts is known as ledger account.</font></div><div style="text-align: justify;"><font size="2"><br></font></div><div style="text-align: justify;"><font size="2">The statement of financial position and the statement of income and comprehensive income are both derived from the general ledger. Each account in the general ledger consists of one or more pages. The general ledger is where posting to the accounts occurs. Posting is the process of recording amounts as credits (right side), and amounts as debits (left side), in the pages of the general ledger. Additional columns to the right hold a running activity total (similar to a chequebook).</font></div><div style="text-align: justify;"><font size="2"><br></font></div><div style="text-align: justify;"><font size="2">The listing of the account names is called the chart of accounts. The extraction of account balances is called a trial balance. The purpose of the trial balance is, at a preliminary stage of the financial statement preparation process, to ensure the equality of the total debits and credits.</font></div><div style="text-align: justify;"><font size="2"><br></font></div><div style="text-align: justify;"><font size="2"><i><a href="http://en.wikipedia.org/wiki/General_ledger" title="General Ledger in Wikipedia" target="_blank">General Ledger in Wikipedia</a></i></font></div><div style="text-align: justify;"><br></div>