Question

Explain the method of posting entries from journal to ledger.

Answer 1

The method of posting entries from journal to ledger involves transferring recorded transactions to the relevant ledger accounts. First, the account to be debited is posted on the debit side of the respective ledger with the transaction’s date. The name of the credited account is written in the ‘Particulars’ column preceded by ‘To’. The journal folio (page number) is noted in the J.F. column, and the amount is recorded in the ‘Amount’ column. Next, the account to be credited is posted on the credit side of its ledger, with the debited account’s name entered after ‘By’. This process classifies and summarises transactions to reflect their financial effects on specific accounts.