Posting Journals to Ledger Accounts
Posting Journals to Ledger Accounts
Accountants and bookkeepers prepare an accounting journal for each financial transaction.
The journal specifies the ledger accounts to be adjusted because of a financial transaction. This journal has items that have equal debit and credit totals. This is the double entry!
The dollar amount is either debited or credited to each ledger account as specified in the journal.
A Trial Balance is prepared from the ledger account balances at the end of the accounting period.
Finally, financial statements are prepared from the trial balance.
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