Which sequence correctly describes the usual recording process in double-entry bookkeeping?

Correct answer: B. Journal, ledger, trial balance

  • A. Ledger, journal, trial balance
  • B. Journal, ledger, trial balance
  • C. Trial balance, journal, ledger
  • D. Journal, trial balance, ledger

Explanation

Transactions are first recorded in the journal and then posted to their respective ledger accounts. The trial balance is prepared afterward from the balances of those ledger accounts.

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About Ledger Accounts and the Trial Balance

Ledger accounts collect transactions under individual headings and use debit and credit sides to determine balances. The trial balance lists those balances to check arithmetical agreement before financial statements are prepared, but it does not reveal every error, such as complete omission, compensating errors or entries made in the wrong account.

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