D. None of These
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The correct option is Option C: Journal Entries.
Journal entries are the primary entries in the books of accounts and they are passed when any transaction or event takes place. Every journal entry has a dual effect i.e. two or more accounts are affected.
For example, When cash is introduced in the business, the journal entry passed is:
Cash A/c Dr. ₹10,000
To Capital A/c ₹10,000
The accounts affected here are Cash A/c and Capital A/c.
Cash A/c gets debited by ₹10,000,
and Capital A/c get credited by ₹10,000.
All the processes of accounting are conducted in an ordered manner known as the accounting cycle.
The first step in an accounting cycle is to identify the transactions and events which are monetary in nature.
The second step is to record the identified transactions in form of journal entries.
And the third step is to make postings in the general ledger accounts as per the journal entries.
Hence, the preparation of the ledger is the third step in the accounting cycle and is prepared from the journal entries.