The journal tells the week in order; the general ledger tells the whole year of an account. It groups entries by account and shows opening balance, debit movement, credit movement and closing balance. That is where a total becomes a controllable story.
Questions it answers
- Where did the balance come from?
- Which entries increased or reduced it?
- Was an invoice settled?
- Did an event post twice?
- Which amount is old?
- Does the balance come from opening or this year?
- Which evidence supports the line?
1. From journal to accounts
Every journal entry is reported to its accounts. The CGNC describes a ledger of individual and collective accounts showing opening balance, cumulative debit, cumulative credit and period-end balance separately.
| View | Order | Question |
|---|---|---|
| Journal | date | what happened that day? |
| General ledger | account | why does this account have its balance? |
| Trial balance | account summary | are totals and balances coherent? |
| Source evidence | transaction | what supports the line? |
Journal and ledger movement totals must agree. A difference signals a posting or processing problem.
2. Read a customer example
Assume a MAD 3,000 customer invoice followed by a MAD 2,000 transfer. The customer account is debited 3,000 on invoicing and credited 2,000 on settlement, leaving a MAD 1,000 debit absent other events.
| Date | Description | Debit | Credit | Balance |
|---|---|---|---|---|
| 05/04 | Invoice F-104 | 3,000 | — | 3,000 D |
| 20/04 | Part transfer | — | 2,000 | 1,000 D |
Matching links invoice and payment. Do not clear the remaining 1,000 without a credit, payment, waiver or other supported treatment.
3. Use the ledger to investigate
Start with the unusual balance, then descend to lines and evidence.
- Check opening balance.
- Filter period and establishment.
- Spot duplicates and round amounts.
- Compare description, account and evidence.
- Match certain counterparts.
- Isolate old and unexplained items.
- Document the proposed correction.
A debit supplier or credit customer is not automatically wrong: it can reveal advance, credit or miscoding. It requires explanation.
Do not post an entry merely to beautify a balance
An unexpected balance starts an investigation. Any correction returns to the event, evidence and approval procedure.
4. Connect operations without confusing them
To control a sales or payment account, compare ledger with the corresponding external or operating report. Explain scope, date, VAT, fee and cut-off differences.
- Sales: gross report, credits and income accounts
- Card: transactions, processor receivable, fees and bank
- Cash: daily closes and account 516
- Stock: quantity movements and value accounts
- Customers: invoices, settlements, credits and balance
BelloPOS can supply recorded operating detail. The general ledger comes from accounting and contains many more accounts.
Mistakes to avoid
- Confusing journal and ledger.
- Reading closing balance only.
- Clearing without proof.
- Ignoring opening balance.
- Matching just because amounts equal.
- Comparing different periods.
Frequently asked questions
What is a general ledger?
The set of individual and collective accounts tracing opening balance, debits, credits and closing balance.
How does it differ from the journal?
The journal orders by date; the ledger groups the same entries by account.
What does matching do?
It associates corresponding movements such as invoice and settlement while retaining any remainder.
Is an unusual balance an error?
Not necessarily. It may be valid or flag a coding, payment or evidence issue.
Does BelloPOS produce the ledger?
No. It provides selected sales, payment and stock detail for accounting to reconcile.
What to take away
The ledger turns a balance into an audit trail. Read opening, movements, counterparts and evidence before calling the account right or wrong.
Sources
The figures and rules quoted above come from these pages, read on the date given in the article.
Explain sales accounts with detail
Retain stable, dated reports to reconcile sales, card and cash accounts.
Read next
Other practical guides on the same subject: