diff --git a/packages/refactored/old/ledgerstate_test_SetBranchConfirmed.png b/packages/refactored/ledger/img/ledgerstate_test_SetBranchConfirmed.png
similarity index 100%
rename from packages/refactored/old/ledgerstate_test_SetBranchConfirmed.png
rename to packages/refactored/ledger/img/ledgerstate_test_SetBranchConfirmed.png
diff --git a/packages/refactored/ledger/ledger_test.go b/packages/refactored/ledger/ledger_test.go
index d85c962b98..9964ddb1a9 100644
--- a/packages/refactored/ledger/ledger_test.go
+++ b/packages/refactored/ledger/ledger_test.go
@@ -4,6 +4,9 @@ import (
 	"testing"
 
 	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
+
+	"github.com/iotaledger/goshimmer/packages/refactored/branchdag"
 )
 
 func TestLedger(t *testing.T) {
@@ -118,3 +121,257 @@ func TestLedger(t *testing.T) {
 		})
 	}
 }
+
+// See scenario at img/ledgerstate_test_SetBranchConfirmed.png
+func TestLedger_SetBranchConfirmed(t *testing.T) {
+	testFramework := NewTestFramework()
+
+	// Step 1: Bottom Layer
+	testFramework.CreateTransaction("G", 3, "Genesis")
+	testFramework.CreateTransaction("TXA", 1, "G.0")
+	testFramework.CreateTransaction("TXB", 1, "G.0")
+	testFramework.CreateTransaction("TXC", 1, "G.1")
+	testFramework.CreateTransaction("TXD", 1, "G.1")
+	testFramework.CreateTransaction("TXH", 1, "G.2")
+	testFramework.CreateTransaction("TXI", 1, "G.2")
+	// Step 2: Middle Layer
+	testFramework.CreateTransaction("TXE", 1, "TXA.0", "TXC.0")
+	// Step 3: Top Layer
+	testFramework.CreateTransaction("TXF", 1, "TXE.0")
+	// Step 4: Top Layer
+	testFramework.CreateTransaction("TXG", 1, "TXE.0")
+	// Step 5: TopTop Layer
+	testFramework.CreateTransaction("TXL", 1, "TXG.0", "TXH.0")
+	// Step 6: TopTopTOP Layer
+	testFramework.CreateTransaction("TXM", 1, "TXL.0")
+
+	// Mark A as Confirmed
+	{
+		for _, txAlias := range []string{"G", "TXA", "TXB", "TXC", "TXD", "TXH", "TXI"} {
+			assert.NoError(t, testFramework.IssueTransaction(txAlias))
+		}
+		require.True(t, testFramework.Ledger.BranchDAG.SetBranchConfirmed(testFramework.Transaction("TXA").ID()))
+
+		testFramework.AssertBranchIDs(t, map[string][]string{
+			"G":   {"MasterBranch"},
+			"TXA": {"TXA"},
+			"TXB": {"TXB"},
+			"TXC": {"TXC"},
+			"TXD": {"TXD"},
+			"TXH": {"TXH"},
+			"TXI": {"TXI"},
+		})
+
+		testFramework.AssertBranchDAG(t, map[string][]string{
+			"TXA": {"MasterBranch"},
+			"TXB": {"MasterBranch"},
+			"TXC": {"MasterBranch"},
+			"TXD": {"MasterBranch"},
+			"TXH": {"MasterBranch"},
+			"TXI": {"MasterBranch"},
+		})
+
+		assert.Equal(t, branchdag.Confirmed, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXA")))
+		assert.Equal(t, branchdag.Rejected, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXB")))
+		assert.Equal(t, branchdag.Pending, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXC")))
+		assert.Equal(t, branchdag.Pending, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXD")))
+		assert.Equal(t, branchdag.Pending, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXH")))
+		assert.Equal(t, branchdag.Pending, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXI")))
+	}
+
+	// When creating the middle layer the new transaction E should be booked only under its Pending parent C
+	{
+		assert.NoError(t, testFramework.IssueTransaction("TXE"))
+
+		testFramework.AssertBranchIDs(t, map[string][]string{
+			"G":   {"MasterBranch"},
+			"TXA": {"TXA"},
+			"TXB": {"TXB"},
+			"TXC": {"TXC"},
+			"TXD": {"TXD"},
+			"TXH": {"TXH"},
+			"TXI": {"TXI"},
+			"TXE": {"TXC"},
+		})
+
+		testFramework.AssertBranchDAG(t, map[string][]string{
+			"TXA": {"MasterBranch"},
+			"TXB": {"MasterBranch"},
+			"TXC": {"MasterBranch"},
+			"TXD": {"MasterBranch"},
+			"TXH": {"MasterBranch"},
+			"TXI": {"MasterBranch"},
+		})
+
+		assert.Equal(t, branchdag.Confirmed, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXA")))
+		assert.Equal(t, branchdag.Rejected, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXB")))
+		assert.Equal(t, branchdag.Pending, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXC")))
+		assert.Equal(t, branchdag.Pending, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXD")))
+		assert.Equal(t, branchdag.Pending, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXH")))
+		assert.Equal(t, branchdag.Pending, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXI")))
+	}
+
+	// When creating the first transaction (F) of top layer it should be booked under the Pending parent C
+	{
+		for _, txAlias := range []string{"TXF"} {
+			assert.NoError(t, testFramework.IssueTransaction(txAlias))
+		}
+
+		testFramework.AssertBranchIDs(t, map[string][]string{
+			"G":   {"MasterBranch"},
+			"TXA": {"TXA"},
+			"TXB": {"TXB"},
+			"TXC": {"TXC"},
+			"TXD": {"TXD"},
+			"TXH": {"TXH"},
+			"TXI": {"TXI"},
+			// Branches F & G are spawned by the fork of G
+			"TXF": {"TXC"},
+		})
+
+		testFramework.AssertBranchDAG(t, map[string][]string{
+			"TXA": {"MasterBranch"},
+			"TXB": {"MasterBranch"},
+			"TXC": {"MasterBranch"},
+			"TXD": {"MasterBranch"},
+			"TXH": {"MasterBranch"},
+			"TXI": {"MasterBranch"},
+		})
+
+		assert.Equal(t, branchdag.Confirmed, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXA")))
+		assert.Equal(t, branchdag.Rejected, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXB")))
+		assert.Equal(t, branchdag.Pending, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXC")))
+		assert.Equal(t, branchdag.Pending, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXD")))
+		assert.Equal(t, branchdag.Pending, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXH")))
+		assert.Equal(t, branchdag.Pending, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXI")))
+	}
+
+	// When creating the conflicting TX (G) of the top layer branches F & G are spawned by the fork of G
+	{
+		for _, txAlias := range []string{"TXG"} {
+			assert.NoError(t, testFramework.IssueTransaction(txAlias))
+		}
+
+		testFramework.AssertBranchIDs(t, map[string][]string{
+			"G":   {"MasterBranch"},
+			"TXA": {"TXA"},
+			"TXB": {"TXB"},
+			"TXC": {"TXC"},
+			"TXD": {"TXD"},
+			"TXH": {"TXH"},
+			"TXI": {"TXI"},
+			// Branches F & G are spawned by the fork of G
+			"TXF": {"TXF"},
+			"TXG": {"TXG"},
+		})
+
+		testFramework.AssertBranchDAG(t, map[string][]string{
+			"TXA": {"MasterBranch"},
+			"TXB": {"MasterBranch"},
+			"TXC": {"MasterBranch"},
+			"TXD": {"MasterBranch"},
+			"TXH": {"MasterBranch"},
+			"TXI": {"MasterBranch"},
+			"TXF": {"TXC"},
+			"TXG": {"TXC"},
+		})
+
+		assert.Equal(t, branchdag.Confirmed, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXA")))
+		assert.Equal(t, branchdag.Rejected, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXB")))
+		assert.Equal(t, branchdag.Pending, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXC")))
+		assert.Equal(t, branchdag.Pending, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXD")))
+		assert.Equal(t, branchdag.Pending, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXH")))
+		assert.Equal(t, branchdag.Pending, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXI")))
+		assert.Equal(t, branchdag.Pending, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXF")))
+		assert.Equal(t, branchdag.Pending, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXG")))
+	}
+
+	require.True(t, testFramework.Ledger.BranchDAG.SetBranchConfirmed(testFramework.Transaction("TXD").ID()))
+
+	// TX L combines a child (G) of a Rejected branch (C) and a pending branch H, resulting in (G,H)
+	{
+		for _, txAlias := range []string{"TXL"} {
+			assert.NoError(t, testFramework.IssueTransaction(txAlias))
+		}
+
+		testFramework.AssertBranchIDs(t, map[string][]string{
+			"G":   {"MasterBranch"},
+			"TXA": {"TXA"},
+			"TXB": {"TXB"},
+			"TXC": {"TXC"},
+			"TXD": {"TXD"},
+			"TXH": {"TXH"},
+			"TXI": {"TXI"},
+			// Branches F & G are spawned by the fork of G
+			"TXF": {"TXF"},
+			"TXG": {"TXG"},
+			"TXL": {"TXG", "TXH"},
+		})
+
+		testFramework.AssertBranchDAG(t, map[string][]string{
+			"TXA": {"MasterBranch"},
+			"TXB": {"MasterBranch"},
+			"TXC": {"MasterBranch"},
+			"TXD": {"MasterBranch"},
+			"TXH": {"MasterBranch"},
+			"TXI": {"MasterBranch"},
+			"TXF": {"TXC"},
+			"TXG": {"TXC"},
+		})
+
+		assert.Equal(t, branchdag.Confirmed, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXA")))
+		assert.Equal(t, branchdag.Rejected, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXB")))
+		assert.Equal(t, branchdag.Rejected, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXC")))
+		assert.Equal(t, branchdag.Confirmed, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXD")))
+		assert.Equal(t, branchdag.Pending, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXH")))
+		assert.Equal(t, branchdag.Pending, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXI")))
+		assert.Equal(t, branchdag.Rejected, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXF")))
+		assert.Equal(t, branchdag.Rejected, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXG")))
+		assert.Equal(t, branchdag.Rejected, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXG", "TXH")))
+	}
+
+	require.True(t, testFramework.Ledger.BranchDAG.SetBranchConfirmed(testFramework.Transaction("TXH").ID()))
+
+	// The new TX M should be now booked under G, as branch H confirmed, just G because we don't propagate H further.
+	{
+		for _, txAlias := range []string{"TXM"} {
+			assert.NoError(t, testFramework.IssueTransaction(txAlias))
+		}
+
+		testFramework.AssertBranchIDs(t, map[string][]string{
+			"G":   {"MasterBranch"},
+			"TXA": {"TXA"},
+			"TXB": {"TXB"},
+			"TXC": {"TXC"},
+			"TXD": {"TXD"},
+			"TXH": {"TXH"},
+			"TXI": {"TXI"},
+			// Branches F & G are spawned by the fork of G
+			"TXF": {"TXF"},
+			"TXG": {"TXG"},
+			"TXL": {"TXG", "TXH"},
+			"TXM": {"TXG"},
+		})
+
+		testFramework.AssertBranchDAG(t, map[string][]string{
+			"TXA": {"MasterBranch"},
+			"TXB": {"MasterBranch"},
+			"TXC": {"MasterBranch"},
+			"TXD": {"MasterBranch"},
+			"TXH": {"MasterBranch"},
+			"TXI": {"MasterBranch"},
+			"TXF": {"TXC"},
+			"TXG": {"TXC"},
+		})
+
+		assert.Equal(t, branchdag.Confirmed, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXA")))
+		assert.Equal(t, branchdag.Rejected, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXB")))
+		assert.Equal(t, branchdag.Rejected, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXC")))
+		assert.Equal(t, branchdag.Confirmed, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXD")))
+		assert.Equal(t, branchdag.Confirmed, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXH")))
+		assert.Equal(t, branchdag.Rejected, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXI")))
+		assert.Equal(t, branchdag.Rejected, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXF")))
+		assert.Equal(t, branchdag.Rejected, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXG")))
+		assert.Equal(t, branchdag.Rejected, testFramework.Ledger.BranchDAG.InclusionState(testFramework.TransactionIDs("TXG", "TXH")))
+	}
+}