Introduction to Accounting — Account STD 11 Commerce — Question

The first step involves identifying the transactions to be recorded and preparing the source documents which are in turn recorded in the basic book of original entry called journal and are then posted to individual accounts in the principal book called ledger.
It involves classification of the business transaction, The process of recording transactions in journal is called journalising, Once this journalising process is completed, the journal entry provides a complete and useful description of the event's effect on the organisation.
The process of transferring journal entry to individual accounts is called posting.