In a company, it is normal to register all movements that modify or may change its assets, thus carrying out the bookkeeping or accounting process. So we have the Diary, the Reason and the Trial Balance .
In the Diary we write what happens during the day, in chronological order, separating each event that changes or may change the value structure of the trader’s company.
The ledger is then made from the diary and transcribes all the operations carried out on it. You have to pay attention simply if the values appear on debit or credit, because with this we will get to know the state of the company and the situation of any of the accounts.
Finally, the trial balance will serve to summarize the movements evidenced in the ledger. The balance sheet shows us all the accounts with which we work in the ledger but only with the debit and credit totals and the balances (both creditors and debtors).
In short, the patrimonial facts are recorded in order of dates in the Diary and in order of accounts in the ledger. So the diary is a chronological record and the ledger is a systematic record, and the trial balance is a summary of the ledger. Therefore, when we have equity facts, we only have one way to follow the accounting process: first the equity facts appear, then we document them in the diary, then in the ledger and, finally, in the balance sheet.