Ledger Posting

After the transactions are recorded in the journal, it is then posted in the
principal book called as ‘Ledger’.

The process of transferring the entries from journal to respective ledger

accounts is called ledger posting.

Balancing of ledgers is carried to find out differences at the end of the

year.

Ledger posting is entering information in the ledger, in respective

accounts from the journal for individual records.

The account debited is posted on the debit side

The account credited is posted on the credit side of the same account.

Rules for posting of entries in the ledger

1. A separate account is opened for each account and entries from
the journal are posted in respective ledger account accordingly.
2. ‘To’ and ‘By’ are used while posting the entries in the ledger
accounts.
3. To’ is used when accounts are posted in the debit side column
of a particular account. 
4. ‘By’ is used when accounts are posted in the credit side column
of a particular account.
5. These words are used to represent the debit and credit
accounts.
6. The account which is debited in the journal should be posted
on the debited side of ledger in the ledger but reference should
be to the respective credit account. 

Balancing of Ledger

Steps for Balancing Ledger Account

1. Calculate the totals of debit and credit columns separately on a
rough sheet
2. . Find out the difference between the heavier total and lighter
total by subtracting the lower from higher. The difference is
called a Balance amount.
3. If the total of the debit side is heavier than that of the credit
side, it is written on the credit side (the side with lower
amount) of that particular account as “By Balance c/d” or “By
Balance c/FD”. Here, c/d means carried down and c/FD means
carried forward.
4. if the total of the credit side is more than that of debit side it is
written on the debit side of the account as “To balance c/d” or
“To balance c/fd”
5. Now add up the totals of both side
6. . Draw double lines across the total below the amounts which
indicates the account is closed and balanced.
7. if the total of the debit side is more than that of credit side
total, the balance is called “debit Balance
8. if the total of the credit side is more than that of debit side
total, the balance is called “Credit Balance
Date Particular JF Amount
To 123
456
789
111
1254
2622

To balance b/d 1585

Step 1 ADD Step 3 =2622-
1037=1585
123
456 =2622
789 Step 4 Total
111 Step 2ADD
1254
325
256
456
1037