Meanwhile the personal account of each supplier is credited with total purchases made from that supplier during the period. Folio numbers are entered in the relevant columns of both Journal and Ledgers.ĭ. In “Payable/ Purchase Ledger Control Account” credited by the periodic total “By Purchases”Ĭ. In “ General Ledger” Purchase account is debited with the periodic total “To Sundries” Or “ To total as per purchase Journal”ī. The following points must be followed while Journal posting of Purchases is being done Ī. Similar to the Sales (as exemplified in the above paragraphs), purchases are posted from purchase journals to the ledgers, periodically. To elaborate the posting process further, let us see the examples of how the previously entered transaction in the Purchase and sales journal shall be posted in the relevant Ledgers. These rules of posting are customary, however usually ignored by modern-day accountants. In our example of rule 2 above the description shall be “By Utility Expense”. Likewise, during the posting of a credit entry the word “ By” shall be entered in the description column of the ledger. In the example given in Rule two above, “To Cash” shall be written in the description column of the utility expense ledger.Ĥ. While posting a debit entry, the word “To” shall also be mentioned in the description. This very rule shall also be followed while posting credit entries in ledgers.ģ. Utility expenses shall be debited in the sub-ledger of utility expenses in General Ledger and as corresponding credit entry is cash, therefore cash shall be mentioned in the description while entering utility expense. While journal posting, if there is a debit entry in Journal it shall also be posted on the debit side as well, however, while posting in a ledger the corresponding account/ ledger being credited shall be referred to in the description.įor example, while posting utility expense from General Journal for an amount of $ 500 which was paid by cash, Journal entry of this transaction will be as follows. For example, both sales and sales return journals are used to record sales, however as both are recorded in separate journals, therefore there shall be a separate ledger for both. For each journal, there shall be a separate ledger.Similarly, Journal and the page number from where amounts are being posted shall be reflected in the Ledger’s Folio Columns. Folio columns in the journal shall be properly filled by the short name of Ledger and Ledger page number. While posting journals to ledgers, it shall be ensured that proper cross-referencing has been done, so transactions can be traced back later on when required. Please rework the example provided in the last chapter. The last method of journal posting is recommended as it seems to be more appropriate to ensure that all accounting entries have been posted properly. This means if someone started from the Sale Journal/ daybook, all entries of the sale Journal are to be posted in sales, receivable control account, and nominal accounts before moving to the next journals. Following the same procedure for all the ledgers.ģ. Any account can be chosen and all related entries in Journals are posted to the relevant ledgers/ account. All debit transactions to be posted first and then all credit transactions to be posted afterward.Ģ. Posting from the Journals/ daybooks can be done in one of the following three ways ġ.
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