Chapter 4


After recording the transactions in the journal, the entries are then posted to the principal books of accounts, which are called ledgers. Since each account is affected multiple times in multiple ways, by different transactions, it becomes necessary to ascertain the net account-wise balance at the end of the period. This is determined by ledgers.

Some points to note are as follows.

  • The process of transferring debit and credit items from ­the journal to the ledger is called posting.
  • The account debited in the journal will be debited in the ­ledger and the one credited will also be credited in the ledger.
  • To debit an account, we will use “To” and the name of the account credited. For example, if rent is paid in cash then rent ...

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