Ledger Posting Examples

>> May 14, 2012


Ledger posting examples will make you capable for posting all journal entries in the different accounts of ledger. After learning journal entries examples, you should learn the system of posting any journal entry in two different accounts. If you do mistake in the posting of account, you can not make correct trial balance and final accounts. So, to understand the procedure of posting is must.























Basic Rule of Posting 


After journal entry, there will become two account. Journal entry's debited account will have its own account and we will transfer to the debit side of the credited account of journal entry in this account. Same way, every credited account in journal entry will have own account in ledger and we will transfer to credit side of the debited account in it. 


Following are some examples of  translations and Journal Entries and their postings for understand which account will go to the debit side and which account will go to credit side:


1. Cash brought in by proprietor as capital Rs. 30000


Cash Account Debit 30, 000

Proprietor’s capital Account Credit 30,000



A Account = Cash Account  -We will open Cash account in ledger and in its debit side, we will show proprietor's capital account with Rs. 30000


B Account = Capital Account - We will open capital account in ledger and its credit side, we will show cash account with Rs. 30000.


2. Goods purchased on credit from Madan Lal Rs. 5,000


Purchase account debit 5000

Madan Lal account credit 5000




A Account = Purchase  Account  -We will open purchase account in ledger and in its debit side, we will show Madan Lal account with Rs. 5000

B Account =  Madan Lal Account - We will open Madan Lal account in ledger and its credit side, we will show purchase account with Rs. 5000.



3. Furniture purchased for cash Rs. 10000


Furniture Account Debit 10,000

Cash Account Credit 10,000




A Account = Furniture  Account  -We will open furniture account in ledger and in its debit side, we will show Cash account with Rs. 10000

B Account =  Cash Account - We need not open cash account again in ledger because we have already opened it when we have posting the first journal entry in it. Now, we just show furniture account in the credit side of  same cash account with Rs. 10000. 

4. Goods sold on credit to Dev Raj Rs. 1600

Dev Raj Account Debit 1600

Sale Account Credit 1600

A Account = Dev Raj Account  - We will open Dev Raj account in ledger and in its debit side, we will show sales account with Rs. 1600

B Account =  Sales Account - We will open sales account in ledger and in its credit side, we will show Dev Raj Account with Rs. 1600. 

5. Goods purchased for cash Rs. 4500

Purchase account debit 4500

Cash account credit 4500

No need to open purchase and cash account in ledger. Both accounts are already existed. We just show cash account in the debit side of purchase account and purchase account in the credit side of cash account with Rs. 4500. Like this, we have to post all the journal entries in the ledger accounts.


Important : One account will open only one time. No duplication allow in ledger.  












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