Table of Contents
The process of transferring the transaction written in the journal to the ledger account is called Posting.
The following procedure is followed for posting the debit and credit aspect of the transaction recorded in the journal.
1.Posting of an Account debited in a Journal entry.
- First: Identify in the Ledger the account to be debited.
- Second: Enter the date of the transaction in the ‘Date’ column on the debit side of the account.
- Third: Write the name of the account which has been credited in the respective entry in the ‘Particulars’ column on the debit side of the account as ‘To'(name of the account credited).
- Fourth: Record the page number of the journal where the entry exists in the Journal Folio column.
- Fifth: Enter the relevant amount in the ‘Amount’ column on the debit side.
2.Posting of an Account credited in a Journal entry.
- First: Identify in the Ledger the account to be credited.
- Second: Enter the date of the transaction in the ‘Date’ column on the credit side of the account.
- Third: Write the name of the account which has been debited in the respective entry in the ‘Particulars’ column on the credit side of the account as ‘By'(name of the account debited).
- Fourth: Record the page number of the journal where the entry exists in the Journal Folio column.
- Fifth: Enter the relevant amount in the ‘Amount’ column on the credit side.
3. Posting of Opening Entry
All assets show a debit balance. Such accounts will be opened and the relevant amount will be written on the debit side as “To balance brought down(b/d)”. On the contrary, the account of liabilities shows credit balance. An account of each liability will be opened and the relevant amount will be written on the credit side as “By Balance brought down(b/d)”