The General Ledger contains a summary at the account level of every transaction that a business has engaged in.  This information comes from the various journals in summary-level entries. The information in the General Ledger is then aggregated further into a trial balance, from which the financial statements are created.

GL Journals

The General Ledger information comes from the individual transactions recorded in journal entries. Minfos provides a double entry accounting system, meaning all transactions debit one account and credit another account with the same amount.

Example:

Date

GL Account

Debit

Credit

01/01/2023

Phone expense

$400

 

 

Cash

 

$400

 Accounts are grouped in seven categories:

  1. Assets
  2. Liability
  3. Owner's equity
  4. Revenue
  5. Expense
  6. Gains
  7. Losses

 

Chart of Accounts

The Chart of Accounts is a list of the accounts and their descriptions in the General Ledger. It effectively makes up the framework for where transactions are stored in the accounting system.

The chart of accounts groups the General Ledger accounts into sections which include:

  • Assets
  • Liabilities
  • Equity
  • Income
  • Cost of Goods Sold
  • Expenses
  • Other Income
  • Other Expenses

Minfos has a default chart of accounts which should suit most pharmacies. If you need to adjust the chart of accounts, we strongly recommend that you do so in consultation with your accountant or financial advisor.