A general ledger is a comprehensive record-keeping system used in accounting to track all financial transactions of a business. It serves as the main accounting record, where all debits and credits are recorded, categorized, and summarized. Each transaction is posted to specific accounts, such as assets, liabilities, and equity, allowing businesses to monitor their financial health. The general ledger is essential for preparing financial statements, such as the balance sheet and income statement. It helps ensure accuracy in financial reporting and compliance with accounting standards. By maintaining a detailed and organized general ledger, businesses can make informed financial decisions and maintain transparency.