Question

30 Accounting equation including GST in some entries with journal,ledger and trial balance

Answer 1

Journal is an entry made to your books of accounts supported by documentary evidence.

Ledgers are accounts prepared for bringing all entries related to individual particular accounts under the same account. This is where the need of journal entries is the most, so that they can be posted to ledger accounts.

Trial Balance is a summary statement where the balance of all ledger accounts are listed according to their nature(debit or credit). Mathematical accuracy is the primary objective of trial balance.

It is then used for preparing the statement of profit and loss and balance sheet