What is the procedure for arranging accounts in a general ledger called?

The procedure for arranging accounts in a general ledger is referred to as file maintenance. This involves the systematic organization of accounts to ensure that they are easily accessible and accurately reflect the financial transactions of a business. Proper file maintenance helps in categorizing accounts, maintaining consistency, and ensuring that the ledger is up-to-date for effective financial reporting.

In the context of accounting, maintaining an orderly and updated general ledger is fundamental for the accurate tracking of financial data. It aids in the preparation of financial statements and ensures compliance with accounting standards. Effective file maintenance includes regularly reviewing account entries, removing obsolete accounts, and making adjustments to enhance clarity.

Other terms in the options provided serve different purposes in the accounting process. Posting refers specifically to the action of transferring journal entries to individual accounts within the ledger. A debit memorandum involves a document that indicates a decrease in the amount owed by a customer, primarily used in accounts receivable. A controlling account represents a general ledger account that summarizes a set of related subsidiary accounts. Each of these plays its unique role in accounting but does not specifically define the procedure of arranging accounts as file maintenance does.