Posting in accounting

This time we will discuss the meaning of posting in accounting, along with ways to post ledgers. Here’s the explanation:

Table of contents :

  • Definition of Posting
  • How to Post Ledgers
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Definition of Posting

Posting in accounting is a process of transferring accounting information such as recording or grouping account names into the appropriate sections of the journal into the ledger.

Posting is done in order to get an overview of the effect of transactions on each asset, liability, or equity account. At the end of the period, the total balances of each account will be summarized for preparation of trial balances and financial statements.

How to Post Ledgers

Here are the steps for posting to the ledger:

  1. Record the opening balance of the ledger from the beginning balance, provided the company has financial statements for the previous period. The accounts that are on the debit side of the balance sheet are recorded as opening balance for debit ledger accounts, and the accounts on the credit side of the balance sheets are recorded as beginning credits for the ledger accounts.
  2. Record the date on the ledger by taking it from the transaction date column in the journal, then moving it to the ledger account date column, in a sequence starting from the youngest date.
  3. Record the ledger information taken from the journal description or description in the description column on the ledger account.
  4. Record the debit account amount in the journal into the ledger account debit column and record the account credit amount in the journal into the ledger account credit column.
  5. Record the posted journal page number into the reference column (Ref) on the ledger account.
  6. If the account in the journal has been transferred or posted to the ledger account, record the account code number in the journal reference column, so that it indicates that the account has been posted.
  7. If using a 3-point or 4-column ledger account, find the balance by comparing the total debit balance with the transaction credit before entering the new transaction period, to get the ending balance for each account.


Also Read:   Definition of Problem Financing


The recording of accounts where the initial balance is a debit will increase the debit balance and reduce the credit balance, and vice versa, the recording of the accounts whose initial credit balance will increase the credit balance and reduce the debit balance.

It should be noted that you may not post from one whole account but must be based on the youngest date.

For example , when posting only cash accounts that start from the youngest date to the end date, then trade accounts receivable and then inventories are not allowed.

The truth is the posting per date, for example on the 2nd in the journal there is a purchase journal (C) and cash (K), so you must post purchases and cash.

To better understand it, let’s study recording transactions in a journal and posting to a ledger, like the example below:

Transactions during October at Salon Devi

October 1, 2005, Mrs. Devi started a salon business called “Salon Devi”

  1. IDR 5,000,000 in cash
  2. Accounts receivable worth IDR 300,000.00
  3. Salon equipment Rp. 7,000,000.00
  4. Salon equipment Rp.10,000,000.00

October 2, 2005, paid for the building lease of Rp. 1,200,000.00 for 1 year of rent.

October 4, 2005, Purchase of salon equipment for Rp. 3,000,000.00 on credit

October 6, 2005, Rp. 50,000,000 in cash was issued to pay for newspaper advertising expenses

October 10, 2005, Issued money per cash amounting to Rp. 500,000.00 to pay installments of debt to the Sinar shop

October 15, 2005, Paid employee wages of Rp. 150,000.00

October 16, 2005, Received first half month income of Rp. 4,000,000.00

October 27, 2005, This month’s telephone and electricity bills are paid Rp. 150,000

October 31, 2005, Paid employee wages of Rp. 150,000.00

October 31, 2005, salon services for which payment was not received directly amounted to Rp. 1,450,000.00


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