What is the purpose of posting to the general ledger from the journal?

• A. To aggregate amounts by account for the financial statements
• B. To prepare the trial balance directly from the journal
• C. To close temporary accounts
• D. To record only cash transactions

Answer: (B)

Posting transfers each transaction from the journal into the general ledger so every account reflects its running balance. This step aggregates the detailed journal entries by account, giving you a clear view of how much is in each asset, liability, equity, revenue, and expense account. Those ledger balances are what you use to prepare the financial statements, because they summarize activity by account rather than by individual journal entry. The trial balance, in turn, is created from the general ledger balances, ensuring the total debits equal total credits after posting and providing a foundation for adjustments and closing.