Ledger Posting

Ledger posting is the method of transferring the credit and debit entries from the journal entries to the ledger.  In the ledger a separate account is opened in every account.  All the credit and debit entries are accordingly entered or recorded. Finally, the accounts are correctly balanced. That is, the total of all debit entries are adjusted against the total of all the credit entries and the balance is carried forward to the coming fiscal year.  In case or real accounts and personal accounts the balances in the nominal account are moved to the profit and loss and trading account. 

How to do Ledger Posting

The amounts to be entered are as follows:

Firstly if there is any opening balance, it should be posted. The opening accounting entry for several assets have to be posted on the decide side of any relevant account by writing “To balance or Balance forward”. Likewise, the liabilities have to be posted on the credit side of the relevant account by writing “By Balance b/f”.

• On the debit side of that particular account enter the date.
• Title of the relevant account should be credited by writing the word “To”
• In the LF (Ledger Folio) column you have to enter the page number of the accounting journal on that the journal entries should be posted or passed.
• Amount column enters the account given in the journal entries against the title of the account under consideration.

The above stated steps have to be followed for posting of the account credited, however with little difference.  Now the posting is completed on the credit side and in the particulars column, the title of the amount has to be debited and before that you have to write the word “By”.

Questionnaire:

• What is Ledger Posting?
• What are the steps involved in ledger posting?