The third step of accounting
process is to post the journal entries to the ledger accounts. After posting
all the journal entries, the balance of each account is calculated. The balance
of an asset, expense, contra-liability and contra-equity account is calculated
by subtracting the sum of its credit side from the sum of its debit side. The
balance of a liability, equity and contra-asset account is calculated the
opposite way i.e. by subtracting the sum of its debit side from the sum of its
credit side.
The ledger account shown below are derived from the journal entries of Company A
The ledger account shown below are derived from the journal entries of Company A
