What Is AP AR GL In Accounting?

What is GL in accounting?

A general ledger represents the record-keeping system for a company’s financial data with debit and credit account records validated by a trial balance.

The general ledger provides a record of each financial transaction that takes place during the life of an operating company..

What is difference between AP and AR?

Accounts payable (AP) is considered a liability to a company. It is the amount of money a company owes because on credit it purchased good and services from a vendor. Accounts receivable (AR) is considered an asset to a company.

What is Ledger and example?

What is a Ledger? Ledger is a summary of transactions that relate to a certain account. For example, our bank ledger will summaries all the transactions that involved our bank account; our loan ledger will summarise all the transactions that involved our loan account and so on.

What is AP AR in accounting?

Generally, Accounts Receivable (AR), are the amount of money owed to the company by buyers for goods and services rendered. … While AP is the debt a company owes to its suppliers or vendors, accounts receivable is the debt of the buyers to the company.

What is AP GL reconciliation?

If AP is interfaced to GL, verifying the balance between the two applications is usually done through comparing account balances of the liability (A/P) account. …

What is AP reconciliation?

Before closing the books at the end of each reporting period, the accounting staff must verify that the detailed total of all accounts payable outstanding matches the payables account balance stated in the general ledger. … This is called an accounts payable reconciliation.

What is AP AR job description?

Accounts Payable job description guide. The role of the Accounts Payable involves providing financial, administrative and clerical support to the organisation. Their role is to complete payments and control expenses by receiving payments, plus processing, verifying and reconciling invoices.

Is Accounts Payable a debit or credit?

Since liabilities are increased by credits, you will credit the accounts payable. And, you need to offset the entry by debiting another account. When you pay off the invoice, the amount of money you owe decreases (accounts payable). Since liabilities are decreased by debits, you will debit the accounts payable.

Is Accounts Payable an asset?

Accounts payable is considered a current liability, not an asset, on the balance sheet. … Delayed accounts payable recording can under-represent the total liabilities. This has the effect of overstating net income in financial statements.

What GL means?

Good luckGood luck. GL is an acronym that means “good luck”, which is typically used online or in text messages. It is most often used in online multiplayer gaming before the start of a game or match.

What is GL posting?

Posting is the process of recording amounts as credits (right side), and amounts as debits (left side), in the pages of the general ledger. … Additional columns to the right hold a running activity total (similar to a chequebook).

What is AP and GL?

AP is Accounts Payable. GL is General Ledger. In Bank, there are two counter, one is for Cash Receipt and another one is for Cash Payment. It is like that in company, all receits will be taken care by Accounts Receivable=AR. As like all payments will be taken care by Accounts Payable=AP.