All transactions in a journal are recorded in chronological order which shows the transaction

date, name of accounts debited and credited, its corresponding amount, and a concise
explanation of each transaction. Recording of each transaction requires debit and credit entries
to be of equal amounts.
After transactions have been entered in the journal, the debits and credits from that journal are
transferred to the ledger account. While the general journal organizes transactions in
chronological order, the ledger is organized by account.
A trial balance is then created at the end of the accounting period to ensure the equality of the
debit and credit accounts. A trial balance lists all ledger accounts, with debits in the left column
and credits in the right column.
Source documents serve as evidence and provide data for recording transactions. Based on
these documents, the business can determine how to record the transaction. Source
documents include cash receipts, credit card receipts, cash register tapes, supplier invoices,
purchase orders, etc.
After reviewing the source documents, transactions are recorded in a journal, a chronological
record of the entity's transactions. Amounts are then transferred to the ledger, which is termed
as posting. The ledger is the "reference book" of the accounting system and is used to
summarize transactions by account. Debits in the journal are posted as debits in the ledger and
credits as credits. The following figure shows this process:

Date Dr Cr Cash Capital

9/1 Cash 75000 Sep 1 75000 Sep 1 75000
Capital 75000

Invested cash in the business

Information is posted
Transactions
(transferred) are recorded in the journal.
to the ledger.

Figure 1. Journalizing and posting transactions in t-accounts

The journalizing and posting process has the following steps:

Step 1: Determine the accounts and the account type (asset, liability, or equity).
Step 2: Analyze whether each account increases or decreases, and then apply the rules of
debits and credits.
Step 3: Record the transactions in the journal.
Step 4: Post the journal entry to the ledger.
Transactions in the general journal is organized in chronological order while the ledger is
organized by account.
To show you the posting of transactions in the general ledger, consider the following
transactions taken from the general journal entries: