Quick answer
The general ledger reorganizes journal lines by account. Posting places each debit or credit into its account record so the business can find a running balance for Cash, Supplies, Accounts Payable, and every other account it uses.
An account may appear in many journal entries. The ledger brings those changes together to show its balance. A running balance is the difference between cumulative debits and credits. It can change sides when credits exceed debits or vice versa. A normal balance predicts the usual side; it does not prevent an unusual opposite balance.
Journal versus ledger
General journal
Arranged by date and entry. It answers: what happened, when did it happen, and which accounts formed the balanced entry?
General ledger
Arranged by account. It answers: what changed this account, and what is its balance after all posted activity?
T-account structure
A T-account is a simplified drawing of one ledger account. The account name sits above a vertical dividing line, with debits recorded on the left and credits on the right. Those lines make the diagram resemble the letter T. It leaves out some details found in a full ledger record so the two sides of the account are easier to see.
Left does not always mean increase, and right does not always mean decrease. Whether a debit or credit increases the account depends on the account type and its normal balance. A T-account simply preserves the debit or credit side used in the journal entry and helps show how the account’s balance changes as amounts are posted.
Posting to the general ledger
Posting transfers a journal line to the matching ledger account without changing its amount or side. The date and journal reference travel with the line so a reviewer can trace in both directions.
- Locate the account named on the journal line.
- Copy the date, reference, and amount to that account.
- Keep a debit on the debit side and a credit on the credit side.
- Update the account balance, then repeat for every line in the entry.
Post one journal entry to two ledger accounts
Maple Tech receives $2,400 of unused supplies on supplier credit. Supplies increases with a debit and Accounts Payable increases with a credit. Both accounts started at zero and have no other postings in this illustration.
Scroll horizontally to see all columns.
| Account | Debit | Credit |
|---|---|---|
| Supplies | 2,400 | |
| Accounts Payable | 2,400 |
Reference JE-03 posts once to Supplies and once to Accounts Payable. Posting only one side would leave the ledger incomplete.
The account diagrams use debit (Dr) and credit (Cr). Accounting systems usually show more fields and calculate balances automatically. The account numbers here are illustrative.
Supplies
Account 1200Debit left side
- Mar 8 · JE-032,400
Ending balance2,400 Dr
Credit right side
Accounts Payable
Account 2000Debit left side
Credit right side
- Mar 8 · JE-032,400
Ending balance2,400 Cr
Running balance in the Cash ledger
A running balance is the account balance after each posted line. Start with the opening balance, apply each debit or credit according to the account’s normal-balance logic, and carry the result forward to the next line. For an asset such as Cash, this can be expressed as the previous balance plus debits minus credits.
After all entries for the period are posted, every ledger account has one ending balance. That balance—the difference between the account’s debit and credit activity, not the sum of both columns—is carried to the trial balance on its debit or credit side. The trial balance receives one ending balance per account rather than every transaction line.
Post Maple Tech’s March entries to the ledger
Cash appears in four of Maple Tech’s five March entries. The ledger gathers those separated journal lines and updates the account after each posting.
Cash starts at zero. Its debits exceed its credits, so the March ledger finishes with a debit balance.
Dr = debit; Cr = credit.
Maple Tech Ltd. · March 2026
Scroll horizontally to see all columns.
| Date | Description | Ref. | Debit | Credit | Balance |
|---|---|---|---|---|---|
| Mar 1 | Founder purchases common shares for cash | JE-01 | 50,000 | 50,000 Dr | |
| Mar 3 | Purchase equipment for cash | JE-02 | 12,000 | 38,000 Dr | |
| Mar 20 | Complete services for cash | JE-04 | 6,000 | 44,000 Dr | |
| Mar 31 | Pay one month’s rent | JE-05 | 1,500 | 42,500 Dr |
Cash begins with a $50,000 debit from JE-01. The $12,000 credit in JE-02 reduces that balance to $38,000; the $6,000 debit in JE-04 raises it to $44,000; and the $1,500 credit in JE-05 leaves $42,500 Dr.
Ending balances from the March ledger
Scroll horizontally to see all columns.
| Account | Ending balance |
|---|---|
| Cash | 42,500 Dr |
| Supplies | 2,400 Dr |
| Equipment | 12,000 Dr |
| Accounts Payable | 2,400 Cr |
| Common Shares | 50,000 Cr |
| Service Revenue | 6,000 Cr |
| Rent Expense | 1,500 Dr |
The Trial Balance lists these balances together and checks them arithmetically.
Common posting errors
- Posting only one line. Every line in a balanced journal entry must reach its own account.
- Changing the side. A journal debit remains a ledger debit; posting does not reinterpret the entry.
- Treating one posting as the balance. The ending balance reflects all posted increases and decreases in the account.
- Losing the reference. A date and journal reference make the account balance traceable to its source entry and evidence.