Ch 2 · Journal, Ledger and Trial Balance

5 concept points · 2 formulas · 4 exam-critical points.

📘 Core concepts

• 1Journal: book of original entry; chronological record of transactions with narration.
• 2Ledger: classified summary; T-account with debit and credit sides.
• 3Posting: transferring journal entries to respective ledger accounts.
• 4Trial Balance: list of debit and credit balances; arithmetical accuracy check.
• 5Three rules: Personal A/c (Debit receiver), Real A/c (Debit what comes in), Nominal A/c (Debit expense/loss).