The general ledger is a collection of accounts used to track the financial transactions of the business. The general ledger is divided into groups which are Assets, Liabilities, Equity, Sales, Cost of Sales and Expenses. Each group would have sub categories and the number of accounts is determined by the individual needs of the business. Usually there are two considerations when making a decision to create general ledger accounts. The first is whether Canada Revenue Agency requires specific information on a single type of purchase such as meals. The second consideration is management of the business and what information is of particular importance to monitor sales and or costs.
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