definition of posting in accounting

Ledger (or posting accounting definition) generally means posting into a separate account that form the next step of the cycle. The data is segregated on basis of type, into accounts for liabilities, assets, revenue, expenses and owner’s equity. The format has two sides namely debit and credit with the date of transaction, account by which it is debited or credit, the JF note and respective amounts. The activity of posting accounting definition is exercised on regular basis like monthly, half-yearly, quarterly or yearly depending upon the volume of transactions and size of the entity.

In modern accounting systems, the posting process occurs automatically. As soon as companies record a financial transaction, it gets posted to the general ledger. From there, it reaches the trial balance and forms a part of the financial statements. Posting in accounting may also include the accounting entries necessary to record the total amount for each account. As business transactions occur during the year, they are recorded by the bookkeeper with journal entries. After an entry is made, the debit and credit are added to a T-account in the categorized journal.

Rules for posting

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Thus, the balance at which they end at in the previous accounting period is the balance that is carried forward to the next accounting period on the first day. This entering of balance in the next accounting period is called opening entry. There are two parts in the ledger the debit part and the credit part. The debit part comes first, i.e., at the left-hand side and the credit part comes later which is at the right-hand side.

Journal Entries and Journal Posting

In the ledger, two PR columns are found on each account – one after the particulars column of the debit side and one after that of the credit side. The source journal is placed in this field, e.g., GJ for general journal, SJ for sales journal, CRJ for cash receipts journal, etc. The page number may also be included (for example, GJ1, meaning page 1 of the general journal). The posting reference facilitates referencing between the journal and the ledger. Posting refers to the act of transferring information from the journal to the ledger.

definition of posting in accounting

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