Ledger posting

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 Ledger:-

    A number of Transactions take place daily in a business. All these transactions are recorded in the journal in a chronological order. Transactions relating to Particular account may take place in different dates and hence they are entered in different pages of the journal. By referring to the journal, it will not be possible to find out the position relating to any particular Account on given date. To overcome this necessity arises, for Classifying the various transactions relating to a particular Account to one place. This is done by posting them into ledger.


        Ledger is a book 📚 which contains various accounts. Ledger is a set of Accounts. It contains all accounts of the business whether Real, Nominal or personal. With the help of ledger the trader can ascertain the true position of any Account on any date. Ledger contains classified summary of the transactions which are recorded in the journal.

   Ledger is the principal Books 📚 of accounts where similar Transactions relating to a particular person or thing are recorded. It helps the trader to achieve the objects of book-keeping.


Posting:-

       The process of entering in the ledger accounts, the entries made in the journal is called posting. It means transferring the debit and credit items from the journal to their respective Accounts in the ledger. It should be remembered that the exact names of Accounts used in the journal should be carried to ledger. Since all the transactions are appeared in the Classified from in the ledger one can very easily find out the position of any Account at any time from the ledger.


    Personal Accounts will reveal the amounts that the business man owes or has to pay his creditors and amounts he has to recover from his debtors. Real accounts reveal hia assets. The nominal Accounts will reveal the sources of his income and expenditure incurred by him to run the business.


Steps in Ledger posting:-

1) Date column:- The date of the transaction as noted in journal is recorded in the date column.


2) Particulars column:- Every entry on the debit side of this column must begin with the word " to " and on Credit side with the word " By "

1) on the debit side of the account after the word " To " write " Name of the Credit part of the journal entry".

2) On the Credit side of the account, after the word "By" write " Name of the debit part of the journal entry".


3) Ledger Folio Column:- write here the page number of the journal from where the entry is posted.


4) Amount Column:- The Amount of the transactions is recorded in amount column. The amount in the debit column of the journal is entered on the Debit side. The amount in the Credit column of the journal is entered on the credit side 

     A proper index should be maintained in the ledger giving the names of the accounts and page numbers.

Illustration of posting:

                            Journal

  


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