A journal is a chronological record of financial transactions of a business. The word journal is come from the french word 'jour' and ' nal' . jour means day and nal means transactions that means day to day transactions. It is a primary book of recording transactions.

Ledger is the permanent storehouse of all the transactions. It is also called the book of ' final entry'.All the transactions are firstly recoded in journal and then in ledger.

Trial balance is a statement , prepared with the debit and credit balances of ledger account to test the arithmetical accuracy of the book.

Journal:

A journal is a book of original entry or a primary book of accounting where transactions are recorded in a chronological order. It is the first step in the accounting cycle and is used to record all financial transactions of a business.

Ledger:

A ledger is a book of accounts where transactions recorded in the journal are classified and summarized according to their nature. It is a secondary book of accounting, which contains all the accounts of a business such as assets, liabilities, equity, revenue, and expenses.

Trial Balance:

A trial balance is a statement that shows the balances of all the accounts in the ledger at a particular point in time. It is used to ensure that the total debits and credits of the ledger are equal, and to detect any errors that may have occurred in the recording of transactions.

Steps in the Accounting Cycle:

The accounting cycle consists of the following steps:

1. Identification of Transactions: Transactions are identified and analyzed to determine the accounts that will be affected.

2. Recording in the Journal: Transactions are recorded in the journal in a chronological order.

3. Posting to the Ledger: Transactions recorded in the journal are posted to the ledger.

4. Preparation of Trial Balance: The balances of all the accounts in the ledger are summarized in the trial balance.

5. Preparation of Adjusting Entries: Adjusting entries are made to update the accounts for accrued expenses, prepaid expenses, depreciation, and other items.

6. Preparation of Adjusted Trial Balance: The adjusted trial balance is prepared after adjusting entries have been made.

7. Preparation of Financial Statements: Financial statements such as the income statement, balance sheet, and cash flow statement are prepared based on the adjusted trial balance.

8. Closing Entries: Closing entries are made to transfer the balances of revenue and expense accounts to retained earnings.

9. Preparation of Post-Closing Trial Balance: The post-closing trial balance is prepared after closing entries have been made to ensure that all temporary accounts have been closed.

In conclusion, the journal is the primary book of accounting where transactions are recorded, the ledger is the secondary book of accounting where transactions are classified and summarized, and the trial balance is a statement that shows the balances of all the accounts in the ledger. These three steps are an essential part of the accounting cycle.