What is Posting - Definition - Examples - 5 Steps In Posting (In Order of Sequence)
Posting is the process of transferring Different Types / Kinds of Accounts from Journal to Ledger. It is done in Ledger. For example, Mr. A sold goods worth Rs. 10000 to Mr. B on Credit Basis or on Account, then it is posted to Subsidiary Ledgers of Accounts Receivable Subsidiary Ledger and Sales Day Book / Ledger. This process of transferring accounts from Journal to Accounts Receivable Ledger and Sales Day Book is called posting.
The Format Of Ledger (T-Account Format)
Mr. A
For The Accounting Period Ended on 31st July, 2018
Date Particulars J/R Amount Date Particulars J/R Amount
2018 Rs. 2018 Rs.
July July
1st July Balance b/d 30000
5th July Sales a/c 3 10000
31st July Balance c/d 40000
_______ ________
Total 40000 40000
_______ ________
_______ ________
Sales Account
For The Accounting Period Ended on 31st July, 2018
Date Particulars J/R Amount Date Particulars J/R Amount
2018 Rs. 2018 Rs.
July July
5th July Accounts Receivable a/c 3 10000
31st July Balance c/d 10000
________ _______
Total 10000 10000
________ _______
________ _______
5 Steps In Posting In Order Of Sequence
You May Also Be Interested In 5 Steps In Journalizing
1. Date
In this column, the date is entered in which Accounting Transaction takes place. It includes year, month and the date of month in which Accounting Journal Entry is recorded in the journal or book of respective accounts.
2. Particulars / Descriptions
Record the accounts on debit side if it is debited and on right side if it is credited in the journal entry. In our above example, the accounts receivable is debited so we write it on
debit side on Sales Day Book while Sales is credited, so we write it on Credit side on Accounts Receivable Ledger.
3. Journal Reference or J/R
The page number where accounting journal entry is recorded for accounts.
4. Enter the Amounts
Enter the respective amount in debit side or credit side where accounts are recorded in respective ledger. In the above example, Sales is recorded on credit side, so Rs. 10000 is recorded
on credit side whereas in Accounts Receivable ledger, the amount of Rs. 10000 is recorded in debit side.
5. Totals And Balance Carried Down
In the last step, balance is found out. if the debit side is more than credit side, then there is a Debit Balance. On the other hand, if the credit side exceeds the total of debit sides,
then there is a Credit Balance. In the above example, for Accounts Receivable / Debtors the debit side is larger than credit side, so it is a debit balance which is written on credit side to equalize both sides while in sales
account, credit side exceeds the debit side as it is more than debit, so it is a credit balance and it is written on debit side to equalize both debit and credit sides.
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