(i) The debit and credit columns of an account are to be totalled separately.
(ii) The difference between the two totals is to be ascertained.
(iii) The difference is to be placed in the amount column of the side having lesser total. 'Balance c/d' is to be entered in the particulars column against the difference and in the date column the last day of the accounting period is entered.
(iv) Now both the debit and credit columns are to be total and the totals will be equal. The totals of both sides are to be recorded in the same line horizontally.
(v) The total is to be distinguished from other figures by drawing lines above and below the amount.
(vi) The difference has to be brought down to the opposite side below the total.
(vii) 'Balance b/d' is to be entered in the particulars column against the difference brought down and in the date column, the first day of the next accounting period is entered.
(viii) If the total on the debit side of an account is higher, the balancing figure is debit balance and if the credit side of an account has higher total, the balancing figure is credit balance. If the two sides are equal, that account will show nil balance.

The procedure of posting from journal to ledger is as follows:
(i) Locate the ledger account that is debited in the journal entry. Open the respective account in the ledger if already not opened. Write the name of the account in the top middle. If already opened, locate the account from the ledger index.
(ii) Record the date of the transaction in the date column on the debit side of that account.
(iii) Record the name of the account credited in the Journal with the prefix 'To' in particulars column.
(iv) Record the amount of the debit in the 'Amount column'.
(v) Locate the Ledger account that is credited in the journal entry. Open the respective account in the ledger if already not opened.
(vi) Write the name of the account in the top middle. If already opened, locate the account from the ledger index.
(vii) Record the name of the account debited in the journal entry particulars column with the prefix 'By' and write the amount in the amount column.

(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