Question

can you tell me ledger posting for this
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Answer 1

Answer:

The journal consists of all entries, but what if we are asked about transactions with a particular account? We can’t count and find the total amount or number of transactions as they are probably done on different dates. Hence, different accounts are made to record transactions related to that particular account. In the end, balancing of the ledger is done to get the status of the particular ledger at the end of the financial year.

Ledger Posting

After the transactions are recorded in the journal, it is then posted in the principal book called as ‘Ledger’. The process of transferring the entries from journal to respective ledger accounts is called ledger posting. Balancing of ledgers is carried to find out differences at the end of the year.

Ledger posting is entering information in the ledger, in respective accounts from the journal for individual records. The account debited is posted on the debit side and the account credited is posted on the credit side of the same account.

This process is carried throughout the year and at the end of the financial year the ledger accounts are closed and are totaled and balanced. This process is called the balancing of the ledger accounts.

Rules for posting of entries in the ledger

A separate account is opened for each account and entries from the journal are posted in respective ledger account accordingly.

The words like ‘To’ and ‘By’ are used while posting the entries in the ledger accounts. ‘To’ is used when accounts are posted in the debit side column of a particular account. ‘By’ is used when accounts are posted in the credit side column of a particular account. These words may not have meaning but are used to represent the debit and credit accounts.

The account which is debited in the journal should also be debited in the ledger book but the reference should be of respective credit account.