How to record transactions on books of accounts?

Events and transactions are recorded using the journal entries. Use the 3 golden accounting rules to record the journal entries based on whether they are personal, real or nominal accounts. After recording all the transactions in the journal, they are transferred to the general ledger. Every transaction from the journal is posted into the ledger. The ledger is the book of final entry. It is used to organize and classify transactions.

Each journal entry is moved into an individual account. The line items are called ledger entries. The debit and credit amounts from the journal are transferred to the ledger account. After posting entries to the general ledger, calculate the balance of each account. All the ledger accounts are put together to form a trial balance. Using the trial balance, the financial statements are prepared.