Transfer of debit and credit items from journal to ledger is called

The correct answer is posting

Key PointsLedger:

• Ledger is that book of account; in which all types of accounts relating to assets, liabilities, capital, expenses, and revenues are maintained.
• A ledger is a complete set of accounts of a business enterprise.
• It is an account book that contains various accounts to which various business transactions of a business enterprise are posted.
• A ledger is a book of final entry because the transactions that are first entered in the journal or special purpose Books are finally posted in the ledger.

Important Points

Ledger Posting:

• Ledger posting refers to transferring debit and credit items from journal entries into their respective accounts. For making this successful we must first ensure that every single item contains a separate account.
• While posting entries, the account which has been debited in the journal entry must be debited in the ledger as well.
• But we have to mention the name of the other account as well.
• In the same manner, the account which is credited in the journal entry is recorded on the credit side of the ledger, but the reference is given to the other account in the entry.
• It is a custom to mention the words “To” and “By” as a prefix before debit and credit accounts respectively.