The third step is posting journals to the ledger (T-accounts).
What does this mean? Posting means to transfer the information calculated in the journals to the various T-accounts in the ledger.
Let's see exactly how this transfer is done. Look through the journals and T-account below, then read on for the explanation:
In practice we would not put each individual transaction concerning bank into the "bank" T-account. Instead, we would simply take the total of cash receipts from the cash receipts journal (column "bank") and insert this on the debit side of the "bank" T-account. We would likewise take the total of cash payments from the cash payments journal (column "bank") and insert this on the credit side of the "bank" T-account.
This is the act of posting the journals to the ledger.
In conclusion, the T-account thus shows the opening and closing balances and the individual transactions during the period covered. The T-account is a summary record of everything that occurred with a specific accounting item during a certain period of time.