Ledger Posting From Journal Entries

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While doing accounting you will post the journal entries to ledger accounts. The journal entries would help to record different information related to financial transactions and this would consists of accounts that needs to be debited and which should be credited. It reflects magnitude of debit and credit.

The debit as well as credit values of any journal entries will get transferred to ledger accounts. Debit amount in case of journal entry can easily be transferred to debit side of ledger account and also credit amount get transferred to credit side of ledger account.

Posting means it involves a process which helps to transfer entries in journal into accounts found in ledger. An accounting ledger is referred to a book that would contain different kinds of accounts usually adopted by company. The debit and credit would get reflected under every account along with resulting balances. Journal also refers to Books of Original Entry, the ledger known as Books of Final Entry.

Making cash comes into asset’s account which finally gets debited to increase and credit gets decreased. Transactions will result in increase in cash which will get posted at debit side of cash book and also it may result in decrease of credit side. There are different rules which need to be followed while posting:

  1. Preparing of debit and credit side of account becomes essential. Therefore, it needs to be verified from past cash account which is not written “To cash A/C” or “By Cash A/C”.
  2. The accounts need to be prepared keeping in mind debit and credit of business. In case the account is debited, posting should be done at debit side of account and in case account is prepared that is credited in journal entry will be posted at credit side of account.
  3. The reverse account name is written at debit or credit side of account. So, while making post of first journal entry, it becomes essential to write capital account which is opposite to that of cash account that gets prepared.

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