The line items are called ledger entries. Transfer the debit and credit amounts from the journal to the ledger account. After posting entries to the general ledger, calculate the balance of each account. Calculate the balance of an asset or expense account by subtracting the total credits from the total debits.
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The line items are called ledger entries. Transfer the debit and credit amounts from the journal to the ledger account. After posting entries to the general ledger, calculate the balance of each account. Calculate the balance of an asset or expense account by subtracting the total credits from the total debits.
In simple words we can say that - Debit side all the payments... Credit sides all the receipts...,.,