The purchase book is a purchase journal, and the ruling is the same as that of other journals.
19. Ledger. The Ledger is the principal book, in which particulars of every transaction of every nature are summarized. It is, in fact, a transcript of all other books of the business except those used solely for statistical purposes.
The ledger is the book which contains the final or complete records of all dealings, either with an individual or with respect to a specific class of transactions—as expenditures for a certain purpose, or receipts of a given character, or sales of a given kind of goods.
A transcript of the ledger accounts exhibits the progress and standing of the business.
Like other books, ledgers are now made with special forms of ruling, depending on the purpose for which they are to be used. The old style or common form of ledger ruling is shown (p. 35).
20. Invoice or Bill. An Invoice or Bill is an itemized statement or record of goods sold by one person to another. The invoice or bill is used in every line of business. A conventional form of invoice is shown (p. 5).
RECORDING TRANSACTIONS
21. The records of transactions in the journal which show what accounts are debited and what accounts are credited are called journal entries. The act of making these entries is known as journalizing.
It was formerly the custom to journalize each individual transaction from the day book, but in modern bookkeeping the journal is used only for adjusting and special entries.
22. Posting. When the record of a transaction is transferred to the ledger from a book of Class (b), it is said to be posted. The act of making the transfer is called posting.