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.
A journal keeps the lines of each balanced entry together and arranges entries by date. A ledger brings all changes to one account together. Both views use the same amounts and debit or credit sides; only the organization changes.
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?
What posting means
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.
| 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.
A T-account displays debits on the left and credits on the right. 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
A running balance in the Cash 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.
Dr = debit; Cr = credit.
Maple Tech Ltd. · March 2026
| 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 |
After JE-05, Cash has a $42,500 debit balance. The account is not balanced by forcing its debit and credit columns to be equal; its difference is the ending balance carried to the trial balance.
Ending balances from the March ledger
The same posting process produces one ending balance for each account. Each ending balance is carried to the unadjusted trial balance on its debit or credit side.
| 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 |
Continue to the Trial Balance to see these balances listed together and checked 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.