Ch 4Ledger — Class 11 Book-Keeping and Accountancy, concept-first.

Every transaction a business enters into is first recorded, in the order it occurs, in the Journal — but a journal entry alone cannot tell an owner how much cash the business has, how much a particula…

Every ledger account is prepared in a standard shape called the T-Form, because when drawn on paper the account looks like a capital letter T — a title on top, and two sides below it separated by a ve…

Transferring an entry from the Journal to the appropriate accounts in the Ledger is called Posting.

At the end of a period (a month, or the accounting year), every account whose balance needs to be carried forward is balanced — the two sides are totalled, the difference between them is found, and th…

The Journal and the Ledger work together as one continuous process — every entry in the Ledger traces back to an entry in the Journal — but they are very different books in their meaning, basis of rec…

As a business grows and the number of accounts increases, keeping every single account — cash, debtors, creditors, expenses, income, assets — together in one large Ledger becomes impractical: it slows…