Posting

Posting

Posting is the process of transferring the accounting entries from the journal to the ledger. 

The Balance Column Account

• Replaces T-accounts
• Most commonly used form in accounting
• Illustrates each individual transaction for the specific account
• Each account has its own page in the ledger
• Page looks very similar to the journal

Opening an Account

• Obtain an unused page in the ledger
• Write the account name and chart of account number at the top of the page
• Write the date at the top of the date column

Steps in Posting

Posting occurs after the journalizing of each transaction has occurred.

In the Ledger

1. Write the date of the transaction in the next unused line
2. Record the page number where the transaction took place in the journal
3. Record the amount of the transaction in the correct column (DR/CR)
4. Calculate the new balance for the account and indicate whether it is a DR or CR balance. 

In the Journal

• In the PR column, indicated the chart of account number for each account. 

Forwarding

If you come to the end of a ledger page, you must forward the balance to the new ledger page

• Write the word forwarded in the particulars column at the bottom of the ledger page
• On the new page, also write the word forwarded with the date of the balance
• Write the balance and the DR/CR balance in the correct column

Steps in Accounting Cycle

• Transaction Occurs
• Journalize Transactions
• Post to the ledger accounts
• Balance by Trial Balance