WHAT IS JOURNAL & LEDGER?

Posting the Entries

The process of transferring the information contained in a Journal to a Ledger is called Posting.

The following procedure is followed for posting the debit and credit aspects of the transaction recorded in a Journal:

(i) Posting of Account debited in a Journal entry: The steps to be followed are:

1. Identify in the Ledger the account to be debited.

2. Enter the date of the transaction in the ‘Date’ column on the debit side of the account.

3. 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 account credited)’.

4. Record the page number of the Journal where the entry exists in the Journal folio column.

5. Enter the relevant amount in the ‘Amount’ column on the debit side.

(ii) Posting an Account credited in a Journal entry: The steps to be followed are:

1. Identify in the Ledger the account to be credited.

2. Enter the date of the transaction in the ‘Date’ column on the credit side of the account.

3. 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 account debited).

4. Record the page number of the Journal where the entry exists in the Journal folio (J.F.) column.

5. Enter the relevant amount in the ‘Amount’ column on the credit side.

Consider the following entry to illustrate the above:

An amount of ₹ 1,200 will be debited to the Furniture Account and credited to Modern Furnishers. The manner will be: in the Furniture Account in the ‘Particulars’ column we shall write ‘To Modern Furnishers’. In the account of Modern Furnishers will be written: “By Furniture Account’. The two accounts will, thus, appear as under:

FURNITURE ACCOUNT

MODERN FURNISHERS

*Journal Folio is imaginary.

The process of posting is also illustrated in the following chart.

JOURNAL