Which Of The Following Is Correct Regarding Posting A Transaction?

The correct choice of this multiple choice question (mcq) is option (B), as Posting is the process of transferring accounting journal entries to concerned ledger’s accounts separately in a classified manner. It is done only in Ledger (King of All Books And Books of Final Entry) while recording of Business Transactions in Journal is called Journalizing. After journalizing the business transactions in which accounts are recorded involved in transactions, the next step is the posting. It is the important Step of the Accounting Cycle. In ledger, T-Account form or Self-Balancing form are used. For each account, t-account is prepared to find the balance of an account at the end of the accounting period. For example, if Mr. A, who is a sole proprietor, sold goods worth $1000 to Mr. B on 5^th March, 2025, then it is a business transaction. The seller issued sales invoice to the buyer as evidence in support of this business transaction. After that, this transaction (in which two accounts are involved one is cash account and second one is sales account and both accounts are increasing) is recorded in Cash Journal and then from cash journal, sales account is transferred to Sales Ledger while cash is already recorded in journal as well in ledger as Cash Journal is also a Ledger.

The option (A) is incorrect, as posting takes place throughout the accounting cycle of a business whenever a business transaction occurred. Once a transaction is recorded through Source Document, then it is recorded in Journal and then to ledger and, the accounts are processed to the next steps of accounting cycle. This process is the requirement of Double Entry System of Bookkeeping.  After the completion of accounting cycle, the posting will take place on the next accounting period when a business transaction / business event occurred. So, this process is continuing until no transaction takes place.

The option (C) is obviously incorrect as mention earlier.