4 Financial Accounting · 4.2 Journal, ledger and subsidiary books

4.2.1 Journal and ledger: journalising, posting and balancing accounts

Every transaction is first written date by date in the journal (debit one account, credit another for the same amount), then posted to each account in the ledger, where accounts are balanced to show what is owned, owed, earned or spent.

  • APPSC Paper I
  • Advanced level
  • 10 min read
  • Full course

Key terms

  • journal
  • book of original entry
  • golden rules
  • personal account
  • real account
  • nominal account
  • narration
  • compound entry
  • opening entry
  • ledger
  • posting
  • ledger folio
  • balance c/d
  • balance b/d
  • debit balance
  • credit balance
  • drawings

What this note covers

  1. Core factsFoundation
  2. ExplainedStandard
  3. DeeperAdvanced
  4. Mains writingMains writing
  5. Common trapsFoundation
  6. Quick revisionFoundation

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