(i) Opening entry is an entry which is passed in the beginning of each current year to record the closing balance of assets and liabilities of the previous year.
(ii) In this entry asset accounts are debited and liabilities and capital account are credited.

According to L.C. Cropper, "the book which contains a classified and permanent record of all the transactions of a business is called the Ledger".

The process of transferring the debit and credit items from the journal to the ledger accounts is called posting.

(i) Ledger is known as Principal book of accounts because it is very useful for a business enterprise.
(ii) It is a book which contains all sets of accounts, namely, personal, real and nominal accounts
(iii) Account-wise balance can be determined from the ledger.
(iv) The ledger accounts are opened or maintained based on journal entries passed.

Posting of a Compound Journal Entry: Compound or Combined journal entry is one where more than one transactions are recorded by passing only one journal entry instead of passing several journal entries. Since every debit must have the corresponding equal amount of credit, special care must be taken in posting the compound journal entry, where there may be only one debit aspect but many corresponding credit aspects of equal value or vice versa.
Example: Jan. 15,2018, Cash Sales Rs. 10,000 cash received from Kannan Rs. 5,000 and commission earned Rs. 2,500.

Steps in posting:
(i) Procedure of posting for an account which has been debited in the journal entry:
Step 1: Locate in the ledger, the account to be debited and enter the date of the transaction in the date column on the debit side.
Step 2: Record the name of the account credited in the journal in the particulars column on the debit side as "To .......... (name of the account credited)".
Step 3: Record the page number of the journal in the J.F. column on the debit side of the ledger. And in the journal, write the page number of the ledger on which a particular account appears in the L.F. column.
Step 4: Enter the relevant amount in the amount column on the debit side.
(ii) Procedure of posting for an account which has been credited in the journal entry:
Step 1: Locate in the ledger, the account to be credited and enter the date of the transaction in the date column on the credit side.
Step 2: Record the name of the account debited in the journal in the particulars column on the credit side as "By................ (name of the account debited)".
Step 3: Record the page number of the journal in the J.F. column on the credit side in the ledger. And in the journal, write the page number of the ledger on which a particular account appears in the L.F column.
Step 4: Enter the relevant amount in the amount column on the credit side.

(i) Ledger is known as the principal book of accounts because it is very useful for a business enterprise.
(ii) It is a book which contains all sets of accounts, namely, personal, real and nominal accounts.
(iii) Account-wise Balance can be determined from the Ledger.
(iv) The Ledger Accounts are opened or maintained based on journal entries passed.
(v) The balances in the ledger accounts show the net effect of transactions during a particular period in various accounts.
(vi) The personal accounts give the net amount due to creditors and the net amount due from debtors, real accounts show the values of assets and nominal accounts will show sources of incomes and expenses.
(vii) The financial statements can be prepared from the ledger balances.

(i) Ledger account is a summary statement of all the transactions relating to a person, asset, liability, expense or income which has taken place during a given period of time and it shows their net effect. From the transactions recorded in the journal, the ledger account is prepared.
(ii) Ledger is known as principal book of accounts.
Utilities of ledger
1) Quick information about a particular account:
Ledger account helps to get all information about a particular account like sales, purchases, machinery, etc., at a glance. For example where there are several transactions with a debtor, the net amount due from a debtor can be known from the ledger account.
2) Control over business transactions:
From the ledger balances extracted, a thorough analysis of account balances can be made which help to have control over the business transactions.
3) Trial balance can be prepared:
With the balances of ledger accounts, trial balance can be prepared to check the arithmetical accuracy of entries made in the journal and ledger.
4) Helps to prepare financial statements:
From the ledger balances extracted, financial statements can be prepared for ascertaining net profit or loss and the financial position