Plain definition
The general ledger is the central record containing the accounts used to build the trial balance and financial statements. It collects posted journal entries by account and period. Subledgers may hold transaction detail, but their balances should reconcile to related general-ledger control accounts.
The general ledger is where posted entries become period balances. A sales system or payroll file may hold detail, but the ledger is the record from which the trial balance and statements are built. A late manual entry can therefore change a report already thought complete.
Illustrative example
Monetary examples use Saudi riyals (SAR). The same principles apply in other currencies.
Suppose June profit was reported as and the period is locked. Two days later, finance identifies an omitted June marketing expense of . Recording it would reduce June profit to .
The reviewer checks the service evidence and proposed journal, decides how the closed period and issued reports should be corrected, and authorises the required steps. The ledger preserves the posting date and audit trail instead of letting the number change unnoticed.
Why it matters
A complete general ledger provides the trace from a reported balance back to recorded entries and evidence.
Practical consequence
Close access by period, then produce a report of entries posted after close or directly to sensitive accounts. Review the reason, evidence, preparer, approver, and report impact before reopening a period.