Understanding Bookkeeping

In earlier article, we discussed how we record transactions from source documents into the various journals.

This article discussed what is posting and some salient points on posting.Posting is the process of transferring information from one book to another.

We can post information from the journal to the ledger, journal entries are transferred to their respective debits and credits in the various accounts in the ledger.

The posting can be:-

• Posting from the Purchase Journal

• Posting from the Returns Outwards Journal

• Posting from the Sales Journal and Returns Inward Journal

Salient points on posting:

1.    Posting should be performed in chronological sequence ie. All the debits and credits of one journal entry should be posted before proceeding to the next journal entry.

2.    It is very important that posting should be done on a timely basis to ensure the ledgers are up to date so as to ultimately enable the financial statements to be prepared.

This entry was posted on Tuesday, October 23rd, 2007 at 12:06 am and is filed under e. Posting. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.