A record of all financial transactions made by the company

Detail

Usually represented by computer software the general ledger is a record of all transactions made by the company

In the trading context transactions occur when any event occurs that may cause a transaction:

• A trade is executed
• A trade is revalued
• A trade delivers
• An invoice is raised or received
• A cash payment is made or received

Transactions are represented, in double entry book keeping, as debits on one or more accounts and credits on one or more account - the debits always matching the credits for a specific transaction

Being able to assign p&l and cash flow events to general ledger accounts is a critical part of any end to end trading system