Recording of Transactions-I

of the accounting period by transferring them to the trading and profit and loss account. All permanent accounts appears in the balance sheet. Thus, all assets, liabilities and capital accounts are permanent accounts and all revenue and expense accounts are temporary accounts. This classification is also relevant for preparing the financial statements.

Posting is the process of transferring the entries from the books of original entry (journal) to the ledger. In other words, posting means grouping of all the transactions in respect to a particular account at one place for meaningful conclusion and to further the accounting process. Posting from the journal is done periodically, may be, weekly or fortnightly or monthly as per the requirements and convenience of the business. The complete process of posting from journal to ledger has been discussed below: Step : Locate in the ledger, the account to be debited as entered in the journal.

Step : Enter the date of transaction in the date column on the debit side. Step : In the ‘Particulars’ column write the name of the account through which it has been debited in the journal. For example, furniture sold for cash Rs. , .

Now, in cash account on the debit side in the particulars column