What is the difference between a general ledger and a subledger?

A general ledger (GL) is the central repository that records all financial transactions for an organization and produces the core financial statements. It contains summary accounts such as cash, receivables, payables, equity, and revenue. A subledger, on the other hand, holds the detailed transaction data that feeds into the GL. For example, the accounts receivable subledger records each individual customer invoice, payment, and credit memo. The GL aggregates these details into a single receivables balance. The GL provides a high‑level view for reporting, while subledgers provide the granular data needed for reconciliation, audit, and detailed analysis.