Question 20 of 45intermediate💡 UnderstandShort Answer3 marks

Write the process of preparing ledger from a journal.

Correct Answer

The process of preparing ledger from journal involves posting of transactions. All business transactions are first recorded in the journal and then they are posted in the ledger accounts.

For posting from the sales journal, entries are done to the debit of customer's accounts kept in the ledger. Individual customer's accounts are generally posted daily with the amount involved.

The sales journal is also totaled periodically (generally monthly), and this total is credited to sales account in the ledger. This systematic process of posting ensures that transactions recorded in the journal are properly transferred to the respective ledger accounts.

Exercise: Short Answers | Q: 10
For More Understanding

Explanation

The textbook context explains that all business transactions are first recorded in the journal and then posted to ledger accounts. The context specifically describes the posting process from sales journal - debiting customer accounts daily and crediting the total to sales account periodically. This gives students the fundamental understanding of the posting process from journal to ledger.

Solution Steps

  1. Step 1: Record all business transactions first in the journal

  2. Step 2: Post each transaction from journal to respective ledger accounts

  3. Step 3: For sales journal - debit customer accounts daily and credit total to sales account periodically

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