Posting

John V. Balanquit

Objectives

Student will be able to :•Discuss the concept of posting•Summarize the posting process•Relate the posting process with the journalizing process

Definition of Posting

It is the process grouping together effects of transactions on a “per account” basis.

It is the second part of the recording process of accounting which is also known as “classifying”.

Posting Concepts

Posting is done immediately after the journalizing process. It uses the general ledger or simple the ledger (book of final entry).

The T- Account

The T-account is a summary device used in the posting process. It used to group together effects of transactions in each account. As a basic concept, every item in the chart of accounts has its own T- account.

The T- AccountA101- Cash

Oct 1 150,000.00

25,460.00 Oct 7

Oct 5 80,000.00

1,500.00

Oct 12

Oct 17

30,000.00

1,287.00

Oct 22

Oct 19

25,450.00

3,845.00

Oct 30

Oct 27

2,500.00    

Oct 31

18,645.00    

 

306,595.00

32,092.00  

 

(32,092.00)    

 

338,687.00    

       

AccountPosting Reference

Total Debits

Total Credits

Balance

Posting Process

Step 1:

Transfer the date and the amount of the debited account from the journal entry to its correct t-account.

Journalizing Process

Step 2:

Indicate the posting reference of the item/s in step 1 to the posting reference column of the journal.

Journalizing Process

Step 3:

Repeat steps 1 and 2 for the item/s on the credit side of the journal entry

Journalizing Process

Step 4:

If all the journal entries have already been posted, compute for the total debits and total credits in each t-account.

Journalizing Process

Step 5:

Looking at the total debits and total credits of the t-account, deduct the smaller amount from the larger amount to get the balance. Put a double rule on the account balance.

Journalizing Process

Step 5:

Leave one space before preparing another journal entry

Let’s have a one minute break so that we can absorb the concepts of the previous

topic.

The Link Between Journalizing and Posting

Posting is the final stage of the recording process. It relies on the information from journalizing in order to create a summary of the transactions that occurred during the period.

*** if the transaction analysis is incorrect, then the journal entry will also be incorrect.

The Link Between Journalizing and Posting

*** if the journal entry is incorrect, then the posting will also be incorrect.

*** if the journal entry is correct, the posting may still become incorrect if the posting process was not followed.

Sample Journal Entry

June 1 Cash 50000Equipment 100000 X, Capital 150000to record investment

Date2013

PR DEBIT CREDITAccount Titles

**post this transaction using A101 as the posting reference of cash, A113 as the posting reference of Equipment and E301 as the posting reference of X, Capital.

End of Lecture

Thank You!