100 General Ledger Interview Questions & Answers

August 24, 2025

Preparing for a General Ledger job interview? Whether you’re applying for a role as a GL accountant, financial analyst, or accounting manager, it’s important to walk in prepared with both technical knowledge and problem-solving skills. Employers want candidates who can handle reconciliations, journal entries, month-end and year-end close processes, and who understand accounting principles, compliance, and reporting accuracy.

In this article, we’ve compiled 100 of the most common General Ledger interview questions, along with sample answers to help you prepare effectively. From questions about adjusting entries and trial balances to handling audits and resolving discrepancies, this guide will give you the confidence to stand out in your interview. Let’s get started!

1. What Is A General Ledger (GL)?

The General Ledger (GL) serves as the central repository for all financial transactions of a business. It contains a comprehensive record of every financial activity, categorized by account. Each account in the GL reflects a specific type of transaction, such as assets, liabilities, equity, revenues, and expenses. The GL is essential for maintaining accurate financial records, facilitating financial reporting, and ensuring compliance with accounting standards. It allows businesses to track their financial health, generate financial statements, and provide insights for decision-making. This structured approach aids in monitoring performance and supports audit processes.

2. What Is The Purpose Of The General Ledger In Accounting?

The General Ledger serves as the central repository for a company's financial transactions. It records all financial activities, including revenues, expenses, assets, liabilities, and equity. By maintaining a comprehensive record, the General Ledger allows accountants to track financial performance, prepare financial statements, and ensure compliance with accounting standards. It provides a detailed view of each account's balance and transactions, facilitating accurate reporting and analysis. This enables management to make informed decisions based on financial data. Additionally, the General Ledger supports audit trails and internal controls, enhancing the integrity of financial reporting.

3. How Does The GL Differ From A Subledger?

The General Ledger (GL) is the primary accounting record that consolidates all financial transactions of a business, providing a comprehensive view of its financial position. In contrast, a subledger is a detailed record that supports specific accounts within the GL, such as accounts receivable or accounts payable. Each subledger contains individual transaction details, which are summarized and reflected in the GL. While the GL offers a macro perspective, subledgers provide granularity, allowing for better tracking and management of specific accounts. This distinction helps ensure accuracy and facilitates reconciliation between detailed transaction records and the summarized financial statements.

4. Can You Explain The Difference Between General Ledger And Trial Balance?

The General Ledger (GL) is a comprehensive record of all financial transactions within a company, organized by accounts. It contains detailed entries for every account, including debits and credits, which form the basis for financial reporting. In contrast, a Trial Balance is a summary report that lists the balances of all accounts in the General Ledger at a specific point in time. The primary purpose of the Trial Balance is to ensure that total debits equal total credits, serving as a preliminary check for the accuracy of the GL. While the GL provides detailed transaction data, the Trial Balance offers a snapshot of account balances, facilitating the preparation of financial statements.

5. What Types Of Accounts Are Maintained In The General Ledger?

In the General Ledger, various types of accounts are maintained to provide a comprehensive view of a company's financial activities. These accounts typically include Asset Accounts, which track resources owned by the business, such as cash, inventory, and property. Liability Accounts record obligations, including loans and accounts payable. Equity Accounts represent the owner's interest in the business, including retained earnings and capital contributions. Revenue Accounts capture income generated from sales or services, while Expense Accounts track costs incurred during operations. This classification helps in accurate financial reporting and analysis, ensuring clarity in tracking financial performance and position.

6. What Is The Difference Between Balance Sheet Accounts And P&L Accounts In GL?

Balance Sheet Accounts Represent A Snapshot Of A Company’s Financial Position At A Specific Point In Time. These Accounts Include Assets, Liabilities, And Equity, Reflecting What The Company Owns And Owes. On The Other Hand, Profit And Loss (P&L) Accounts, Also Known As Income Statements, Track Revenue And Expenses Over A Period, Indicating The Company’s Operational Performance. While Balance Sheet Accounts Are Permanent Accounts That Carry Forward Balances To The Next Period, P&L Accounts Are Temporary, Resetting At The End Of Each Accounting Period To Reflect New Revenue And Expenses. This Distinction Is Crucial For Understanding Financial Health And Performance.

7. How Are Journal Entries Posted To The General Ledger?

Journal entries are posted to the General Ledger by first recording transactions in the journal, which serves as a chronological record. Each entry includes a date, accounts affected, debits, and credits. Once the entry is prepared, it is reviewed for accuracy. After verification, the amounts are transferred to the General Ledger accounts by using the appropriate account codes. This process can be performed manually or through automated systems. In automated systems, software can streamline the posting process, ensuring that debits and credits are accurately reflected in the respective accounts, maintaining the integrity of financial reporting.

8. What Is A Chart Of Accounts (COA)?

A Chart Of Accounts (COA) is a structured listing of all accounts used in an organization’s general ledger. It provides a systematic way to categorize financial transactions and helps in organizing financial data for reporting. Each account in the COA is assigned a unique identifier or code, facilitating easy reference and management. The COA typically includes categories like assets, liabilities, equity, revenue, and expenses, ensuring that all financial activities are tracked accurately. This framework aids in the preparation of financial statements, budgeting, and auditing processes, providing clarity and consistency in financial reporting.

9. How Does A Chart Of Accounts Relate To The General Ledger?

The Chart of Accounts (COA) serves as a structured list of all accounts used by an organization, categorizing them for financial reporting. Each account in the COA corresponds to a specific area of financial activity, such as assets, liabilities, equity, revenues, and expenses. The General Ledger (GL) utilizes the COA to organize financial transactions systematically. Every transaction recorded in the GL is assigned to an account from the COA, ensuring that all financial data remains consistent and easily traceable. This relationship facilitates effective financial management, reporting, and analysis, providing a clear view of an organization's financial health.

10. What Is The Purpose Of GL Codes?

GL codes serve as unique identifiers for each account within the General Ledger, facilitating accurate classification and tracking of financial transactions. These codes streamline the recording process by ensuring that entries are posted to the correct accounts, thus maintaining the integrity of financial data. They also enhance reporting capabilities, as users can quickly generate financial statements and analysis based on specific codes. Furthermore, GL codes simplify the auditing process by providing clear, organized records, making it easier for auditors to trace transactions back to their original entries. This level of organization is essential for effective financial management and compliance.

11. Can You Explain The Difference Between Manual And Automatic Journal Entries?

Manual journal entries are created by accountants or financial personnel who input transactions into the General Ledger directly. This process requires careful attention to detail, as errors can easily occur during data entry. It often involves drafting entries based on source documents such as invoices, receipts, or bank statements.

On the other hand, automatic journal entries are generated by accounting software or systems based on predefined rules or triggers. These entries often include recurring transactions, such as depreciation or payroll, which are processed without manual intervention. Automatic entries reduce human error and save time, allowing accountants to focus on more complex tasks while ensuring that routine transactions are recorded accurately and efficiently.

12. What Is A Reversing Entry In The General Ledger?

A reversing entry is a journal entry made in the General Ledger to cancel out or reverse the effects of an earlier entry. This is typically done at the beginning of a new accounting period. Reversing entries are often used for accruals or deferrals, such as when adjusting entries for expenses or revenues are made at the end of a period. By reversing these entries, accountants can simplify the recording of transactions in the subsequent period, ensuring that the same amounts are not inadvertently included again. This practice helps maintain accuracy in financial reporting and prevents potential discrepancies in financial statements.

13. Why Is Accrual Accounting Important In GL?

Accrual accounting is crucial in General Ledger because it aligns revenue and expenses with the time they are incurred, providing a more accurate financial picture. This method enables businesses to match income with related expenses, leading to better financial analysis and decision-making. It reflects the company's economic activities more accurately by recognizing revenues when earned and expenses when incurred, regardless of cash transactions. This approach helps stakeholders assess financial performance and liquidity, ensuring compliance with accounting standards like GAAP or IFRS. It also allows businesses to forecast future cash flows and manage their resources effectively.

14. What Is The Role Of Suspense Accounts In The General Ledger?

Suspense accounts serve as temporary holding accounts in the General Ledger when there are uncertainties regarding the proper classification of transactions. They are used to record amounts that cannot be immediately assigned to a specific account due to lack of information or missing documentation. Once the necessary details are obtained, the amounts are transferred from the suspense account to the appropriate accounts, ensuring accurate financial reporting. This practice helps maintain the integrity of financial records and ensures that transactions are not overlooked, allowing for smoother reconciliation and audit processes.

15. What Are Control Accounts In GL?

Control accounts are summary accounts in the General Ledger that consolidate and summarize the balances from individual subledgers. They serve as a tool to manage and maintain the accuracy of financial records by allowing businesses to track the total amounts of various accounts, such as accounts receivable and accounts payable, without requiring detailed transactions to be recorded directly in the General Ledger. By monitoring these control accounts, accountants can ensure that subledger totals match the General Ledger balances. This practice aids in simplifying the reconciliation process and enhances financial reporting accuracy, as discrepancies can be identified promptly.

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16. What Is The Importance Of Closing Entries In The General Ledger?

17. Can You Explain The Difference Between Single-Entry And Double-Entry Bookkeeping?

18. How Do Subledger Postings Affect The General Ledger?

19. What Is The Difference Between Debit And Credit In GL?

20. What Is The Purpose Of An Opening Balance In GL?

21. What Are The Key Elements Of A Journal Entry?

22. How Do You Record Accruals In The General Ledger?

23. How Would You Record Prepaid Expenses In The GL?

24. What Is The Journal Entry For Depreciation?

25. How Do You Record Provisions In GL?

26. What Is The Difference Between Adjusting Entries And Closing Entries?

27. How Do You Record Revenue Recognition In The GL?

28. How Do You Record Bad Debt Expenses In GL?

29. What Journal Entry Would You Pass For Payroll?

30. How Do You Handle Intercompany Journal Entries?

31. How Do You Record Foreign Currency Transactions In GL?

32. What Is The Difference Between A Recurring Journal And A Non-Recurring Journal?

33. How Do You Record Contra Entries In GL?

34. What Are Reclassification Entries In GL?

35. How Do You Ensure Journal Entries Comply With Accounting Standards?

36. What Is The Journal Entry For Advance Received From Customers?

37. What Is The Journal Entry For Outstanding Expenses?

38. What Journal Entries Are Required For Month-End Closing?

39. How Do You Post Journal Entries Through ERP Systems?

40. What Controls Are Applied Before Approving Journal Entries?

41. What Is GL Reconciliation?

42. Why Is Reconciliation Important For The General Ledger?

43. How Do You Reconcile GL With Subledgers?

44. What Is The Process Of Bank Reconciliation In GL?

45. How Do You Handle Discrepancies During GL Reconciliation?

46. What Are The Common Reconciliation Items In GL?

47. What Is The Role Of Suspense Accounts In Reconciliation?

48. How Do You Reconcile Accounts Payable Subledger With GL?

49. How Do You Reconcile Accounts Receivable Subledger With GL?

50. What Is Trial Balance Reconciliation?

51. How Do You Reconcile Intercompany Accounts In GL?

52. What Is The Process Of Month-End GL Closing?

53. What Is The Process Of Year-End GL Closing?

54. What Reports Are Prepared During GL Closing?

55. What Are Adjusting Entries At The End Of A Financial Year?

56. How Do You Manage Accruals At Month-End Closing?

57. What Challenges Do You Face During GL Close?

58. What Is The Role Of The GL Accountant In Financial Close?

59. What Is The Importance Of Cut-Off In GL Closing?

60. How Do You Ensure Accuracy And Completeness In GL Closing?

61. What Internal Controls Exist For General Ledger?

62. How Do You Prevent Fraudulent Postings In GL?

63. What Is The Difference Between Internal And External Audits In GL?

64. How Does SOX Compliance Impact GL Processes?

65. What Documentation Is Needed For Journal Entry Approval?

66. How Do You Ensure Segregation Of Duties In GL?

67. What Is The Role Of Audit Trails In General Ledger?

68. What Are Some Key Risks In GL Management?

69. How Do You Test Controls Over GL Posting?

70. What Is The Role Of Reconciliations In Internal Control?

71. What Are Common Audit Adjustments In GL?

72. What Is The Importance Of Materiality In GL?

73. What Is The Role Of The GL In Financial Statement Preparation?

74. How Do You Ensure Compliance With GAAP/IFRS In GL?

75. What Are Red Flags That Auditors Look For In GL?

76. How Do You Document Journal Entries For Audit Purposes?

77. How Do You Prepare A GL For Statutory Audit?

78. What Are Typical Audit Queries Related To GL?

79. How Do You Handle Auditor-Proposed Adjustments In GL?

80. What Reports Are Auditors Most Interested In From GL?

81. How Is The General Ledger Maintained In ERP Systems Like SAP Or Oracle?

82. What Is The Role Of ERP In Automating GL Entries?

83. How Do You Configure A Chart Of Accounts In ERP Systems?

84. What Is The Difference Between Primary Ledger And Secondary Ledger In Oracle?

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