ACCOUNTING 101 A

POSTING
Steps:
1. Transfer the date of the transaction from the JOURNAL to the ledger.
2. Transfer the page number from the JOURNAL to the journal reference (JR) column of the ledger
(using P.R. instead of JR).
3. Post the debit figure from the journal as a debit figure in the ledger and the credit figure from
the journal as a credit figure in the ledger.
4. Enter the account number in the posting reference column of the journal once the figure has
been posted to the ledger.

LEDGER ACCOUNTS AFTER POSTING

At the end of an accounting period, the debit or credit balance of each account must be determined to
enable us to come up with a trial balance.
 Each account balance in determined by footing (adding) all the debits and credits.
 If the sum of an account’s debits is GREATER than the sum of its credits, that account has a debit
balance.
 If the sum of its credits is greater, that account has a credit balance.

TRIAL BALANCE
Procedure
1. List the account titles in numerical order.
2. Obtain the account balance of each account from the ledger and enter the debit balances in the
debit column and the credit balances in the credit column.
3. Add debit and credit column
4. Compare the totals.
Note:
 when the totals are equal, the trial balance is in balance.
 This equality provides an interim proof of the accuracy of the records but it does not signify the
absence of errors.