The correct answer is option 'C) Ledger'.

Explanation:

1. Introduction to Journal and Subsidiary Books:
Journal and subsidiary books are important accounting records that are used to record and classify various transactions and events. These books serve as the primary source of information for recording financial transactions and are essential for maintaining accurate and systematic accounting records.

2. Purpose of Journal and Subsidiary Books:
The main purpose of journal and subsidiary books is to record transactions and events in a chronological order. Journal is the book of original entry where all transactions are initially recorded, while subsidiary books are specialized books used to record specific types of transactions, such as cash transactions, sales, purchases, etc.

3. Recording in Journal and Subsidiary Books:
When a transaction or event occurs, it is first recorded in the respective journal or subsidiary book. The details of the transaction, such as the date, description, and amounts, are recorded in a systematic manner. This ensures that all transactions are properly documented and can be traced back to the original source.

4. Transfer to Ledger:
After recording the transactions and events in the journal and subsidiary books, the next step is to transfer them to the ledger. The ledger is a principal book of accounts where all the transactions are grouped and classified according to their nature.

5. Purpose of Ledger:
The ledger serves as a central repository for all the accounts of a business. It provides a summary of all the transactions related to each account, such as cash, sales, purchases, etc. The ledger helps in determining the balances of individual accounts and provides a complete picture of the financial position of the business.

6. Transferring Transactions to Ledger:
The process of transferring transactions from the journal and subsidiary books to the ledger is known as posting. Each transaction recorded in the journal or subsidiary books is posted to the respective account in the ledger. The posting involves transferring the date, description, and amounts from the journal or subsidiary books to the ledger.

7. Importance of Ledger:
The ledger is considered the principal book of accounts as it provides a comprehensive record of all the transactions. It helps in preparing financial statements, such as the balance sheet and profit and loss account. The ledger is also used for analyzing the financial performance of a business and making informed business decisions.

In conclusion, after recording the transactions and events in the journal and subsidiary books, they are transferred to the ledger. The ledger serves as the central repository for all the accounts and provides a comprehensive record of all the transactions. It is an essential tool for preparing financial statements and analyzing the financial position of a business.

After recording transactions in journal we do classifying and we post enteries to each ledger account.. in journal we record all enteries likes Sales, purchases and then in ledger we make separate ledgers for sale, purchase