First step in understanding lightning network
The ledger entry is indeed a single multisig 2-of-2 transaction that is included in a block. 

Then, both parties create a 1-of-2 multisig transaction that is not yet published to the network, but kept in reserve. This transaction is updated every time you make a transaction between both parties. Once either of the parties decides to close the channel, he or she publishes their second transaction and it is included in the blockchain.