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In previous section you learnt about the accounting involves four stages:
(i) recording the transactions,
(ii) classifying-the transactions,
(iii) summarising the transactions, and
(iv) Interpreting the outcomes.
Hence, you are aware that all transactions are recorded first into the books of original are as Journal, and then posted in the concerned accounts in the ledger. You have also the fundamental accounting concepts to be observed in the recording "stage and the rules of debit and credit. Along with the help of these rules we shall discuss in this section how different transactions are recorded in the Journal and how they will be posted in the concerned ledger accounts, we shall also illustrates how to balance various accounts prepare a Trial Balance so as to test arithmetical accuracy of the books of account.
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