Posting

Posting
• Third step in the accounting process

• This refers to the process of transferring the information from the journal to the ledger

• Posting is a sorting process

• The following guidelines should be observed:

• No alterations should be made.
• Debit entries in the journal should be transferred to the debit side of the ledger.
• Credit entries in the journal should be transferred to the credit side of the ledger.
 Ledger
The ledger accumulates all data necessary prior to the preparation of
financial statements. All similar transactions recorded in the journal are
grouped together in the ledger. The ledger appears basically in the form of
the capital letter T. The left side of the ledger provides data for the debit
entry, and the right side of it presents information about the credit entry.
The number of ledgers is dependent on the number of account titles.
The ledgers are arranged in the following order:
• Assets
• Liabilities
• Equity
• Income
• Expenses
 Procedure| Posting
STEP 1 Check the completeness and arrangement of the
ledger. All the accounts appearing in the chart of accounts
should have a ledger. In case no chart of accounts is
provided, all the accounts used in journalizing should have
a ledger. Arrange the ledger according to the arrangement
in the Chart of Accounts.
STEP 2 Label properly the different sections of the general
ledger.
 Procedure| Posting
STEP 3 Start the process with the first debit entry found in the journal.
• Transfer the date first followed by the amount.
• Indicate in the “Ref” column of the ledger the page number of the
journal.
• Indicate in the “Ref” column of the general journal the general ledger
account number.
STEP 4 Repeat the process for the credit entry.
STEP 5 Repeat Steps 3 and 4 on the next journal entry until all entries are
completely posted.
 Footing the Ledger
After posting, the amounts of debit and credit are added. This process is called footing.

Footing is the process of adding the debit and the credit money columns of the ledger and
finding their balance.

1. If the account has a debit balance, that is, the total debit is higher than the total of credit,
then the difference is placed on the “Particulars” column of the debit side.

2. If the account has a credit balance, that is, the total credit is higher than the total of debit,
then the difference is placed on the “Particulars” column of the credit side.

3. If there is only one entry, there is no footing done.