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Posting from Journal

  • Posting is the process of transferring the entries from the books of original entry (journal) to the ledger. Posting from the journal is done periodically, that is, weekly or fortnightly or monthly as per the requirements and convenience of the business.
  • The process of posting from journal to ledger has been discussed below:
  • Step 1: Locating the ledger in which the account is to be debited as entered in the journal.
  • Step 2: Entering the date of transaction in the date column on the debit side.
  • Step 3: Entering the name of the account in the ‘particulars’ column as debited in the journal.
  • For example, furniture sold for cash Rs.34,000. Now, in cash account on the debit side in the particulars column ‘Furniture’ will be entered signifying that cash is received from the sale of furniture. In Furniture account, in the ledger on the credit side is the particulars column, the word, cash will be recorded. The same procedure is followed in respect of all the entries recorded in the journal.
  • Step 4: Entering the page number of the journal in the Ledger folio column and ledger in the journal folio columns, respectively.
  • Step 5: Entering the appropriate amount in the amount columns.. An account is opened only once in the ledger and all entries relating to a particular account is posted on the debit or credit side, as the case may be.
We will now see how the transactions listed in example 1 are posted to different accounts from the journal.
Cash Account
Dr. Cr.

Date

Particulars

J.F.

Amount

Rs.

Date

Particulars

J.F.

Amount

Rs.

 

Capital

 

5,00,000

 

Bank

Plant and machinery

 

4,80,000

10,000


Capital Account
Dr. Cr.

Date

Particulars

J.F.

Amount

Rs.

Date

Particulars

J.F.

Amount

Rs.

 

 

 

 

 

Cash

 

5,00,000


Bank Account
Dr. Cr.

Date

Particulars

J.F.

Amount

Rs.

Date

Particulars

J.F.

Amount

Rs.

 

Cash

 

4,80,000

 

Furniture

 

60,000


Furniture Account
Dr. Cr.

Date

Particulars

J.F.

Amount

Rs.

Date

Particulars

J.F.

Amount

Rs.

 

Bank

 

60,000

 

 

 

 

 


Plant and Machinery Account
Dr. Cr.

Date

Particulars

J.F.

Amount

Rs.

Date

Particulars

J.F.

Amount

Rs.

 

Cash

Ramjee Lal

 

10,000

1,15,000

 

 

 

 


Ramjee Lal's Account
Dr. Cr.

Date

Particulars

J.F.

Amount

Rs.

Date

Particulars

J.F.

Amount

Rs.

 

 

 

 

 

Plant and machinery

 

 

1,15,000


Purchases Account
Dr. Cr.

Date

Particulars

J.F.

Amount

Rs.

Date

Particulars

J.F.

Amount

Rs.

 

Sumit Traders

 

55,000

 

 

 

 

  • Sumit Traders Account           
Dr. Cr.

Date

Particulars

J.F.

Amount

Rs.

Date

Particulars

J.F.

Amount

Rs.

 

 

 

 

 

Purchases

 

55,000


Ranjani Enterprises Account
Dr. Cr.

Date

Particulars

J.F.

Amount

Rs.

Date

Particulars

J.F.

Amount

Rs.

 

Sales

 

35,000

 

 

 

 


Sales Account
Dr. Cr.

Date

Particulars

J.F.

Amount

Rs.

Date

Particulars

J.F.

Amount

Rs.

 

 

 

 

 

Ranjani Enterprises

 

35,000





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