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Posting in a Ledger
The process of transferring the entries recorded in the journal or subsidiary books to the respective accounts opened in the ledger is called Posting. In other words, posting means grouping of all the transactions relating to a particular account at one place. It is necessary to post all the journal entries into various accounts in the ledger because posting helps us to know the net effect of various transactions during a given period on a particular account.
Procedure of posting
The procedure of posting is given as follows:
I. Procedure of posting for an Account which has been debited in the journal entry.
Step 1 → Locate in the ledger, the account to be debited and enter the date of the transaction in the date column on the debit side.
Step 2 → Record the name of the account credited in the Journal in the particulars column on the debit side as “To..... (name of the account credited)”.
Step 3 → Record the page number of the Journal in the J.F column on the debit side and in the Journal, write the page number of the ledger on which a particular account appears in the L.F. column.
Step 4 → Enter the relevant amount in the amount column on the debit side.
II . Procedure of posting for an Account which has been credited in the journal entry.
Step 1 → Locate in the ledger the account to be credited and enter the date of the transaction in the date column on the credit side.
Step 2 → Record the name of the account debited in the Journal in the particulars column on the credit side as “By...... (name of the account debited)”
Step 3 → Record the page number of the Journal in the J.F column on the credit side and in the Journal, write the page number of the ledger on which a particular account appears in the L.F. column.
Step 4 → Enter the relevant amount in the amount column on the credit side.
Posting of Compound Journal Entries
Compound or Combined Journal Entry is one where more than one transactions are recorded by passing only one journal entry instead of passing several journal entries. Since every debit must have the corresponding equal amount of credit, special care must be taken in posting the compound journal entry, where there may be only one debit aspect but many corresponding credit aspects of equal value or vise versa. The posting of such transactions is done in the same way as already explained.
Posting the Opening Entry
The opening entry is passed to open the books of accounts for the new financial year. The debit or credit balance of an account what we get at the end of the accounting period is known as closing balance of that account. This closing balance becomes the opening balance in the next accounting year.
The procedure of posting an opening entry is same as in the case of an ordinary journal entry. An account which has a debit balance, the words ‘To balance b/d’ are recorded on the debit side in the particulars column. An account which has a credit balance, the words “By balance b/d” are recorded in the particulars column on the credit side. Infact opening entry is not actually posted but the accounts are merely incorporated in the ledger, if the ledger is a new one or old.
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