Scribd
Upload
120 views

Posting

The document discusses the process of posting transactions from a journal to a ledger. It defines a ledger as a compilation of accounts used to classify recorded transactions and get the final balance of each account. An account, or ledger account, summarizes increases and decreases in an accounting element and has a basic "T" shape. The document also describes different forms a ledger account can take, including standard, running balance, and expanded running balance forms.

Uploaded by

Charles Reginald K. Hwang
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PDF, TXT or read online on Scribd
120 views

Posting

The document discusses the process of posting transactions from a journal to a ledger. It defines a ledger as a compilation of accounts used to classify recorded transactions and get the final balance of each account. An account, or ledger account, summarizes increases and decreases in an accounting element and has a basic "T" shape. The document also describes different forms a ledger account can take, including standard, running balance, and expanded running balance forms.

Uploaded by

Charles Reginald K. Hwang
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

Posting

(e Second Step)

It is the process of transferring the recorded transactions from the journal to the ledger.

Ledger

It is the systematic compilation of several accounts and used as a tool to classify the recorded
transactions for the purpose of getting the final balance of each account. It is also referred to as the
Book of Final Entry.

Account (or Ledger Account)

A device that summarizes the increases and decreases in a particular accounting element. e
simplest form (skeleton) of an account is the “T-account” because the appearance is like a capital
letter “T”.

Form of the Ledger Account

1. Standard (T-account) form - divided into two halves, each half containing four columns to
provide for the date, explanation, posting reference (F), and amount (debit for the le half and
credit for the right half). It is necessary to foot (get the column total) the debit and credit side of
the ledger to obtain the balance of a particular account.

• Sample of a standard (T-account) form:

Cash

Date Particulars F Debit Credit Date Particulars F Debit Credit

2. Running Balance (three-money column) or Bostonian form - this type of ledger allows the
bookkeeper to maintain a running balance of a particular account. If the balance of the account is
not the normal balance, the amount is indicated in parenthesis. Below is a sample:
Date Explanation F Debit Credit Balance

3. Expanded Running Balance form - this is an expanded version of the Bostonian ledger account.
Here, the balance of the amount can be written either as debit or credit without the necessity of
writing the amount in parenthesis in case the balance is negative (opposite the normal balance).

• Sample of the Expanded Bostonian Ledger Account.

Balance
Date Explanation F Debit Credit
Debit Credit

You might also like