The Ledger
The "Book of Final Entry" where journalized transactions are classified and summarized into individual accounts.
GENERAL LEDGER
– the main accounting record that summarizes all financial transactions.
SUBSIDIARY LEDGER
– a detailed record of individual transactions, supporting the totals recorded in the GL.
ACCOUNT NAME
The left side of the T-Account where increases in assets or decreases in liabilities are recorded.
The specific title of the account being summarized (e.g., Cash, Rent Expense, Capital).
The right side of the T-Account where decreases in assets or increases in liabilities are recorded.
The process of transferring entries from the Journal to the specific Ledger accounts.
The Ledger is where the actual sorting happens. While the Journal captures events in time order, the Ledger groups them by subject, making it possible to see the current balance of any specific account at a glance.