Financial Accounting

Example of ledger posting | Fundamentals of Accounting

Ledger Posting

As we know that after the entries have been journalized, the next process is to transfer these entries to respective Ledger accounts.

This process of transferring the entries from the General Journal to the Ledger is known as ‘ledger Posting’ or posting to ledger accounts.

Under this process, various debit and credit transactions are posted to the ledger and at the end of a certain period, this debit and credit balance are compared. Following is an example that will make clear how posting to the ledger is done:


Post the following transactions in the books of a trader:-

Debit Balance on January 1, 2013

Cash in Hand $ 8,000, Cash at Bank $ 25,000, Stock of Goods $ 20,000, Building

$ 10,000. Sundry Debtors: Victor $ 2,000 and Rita $ 2,000.

Credit Balances on January 1, 2013:

Sundry Creditors: Albert $ 5,000. Capital $ 55,000

Following were further transactions in the month of January 2013:

January 1Purchased goods worth $5,000 for cashless 20% trade discount and 5% cash discount.
January 4 Received $1,980 from Victor and allowed him $20 as a discount.
January 8Purchased plant from Michael for $5,000 and paid $ 100 as cartage for bringing the plant to the factory and another $200 as installation charges.
January 12Sold goods to Robert on the credit of $600.
January 15      Robert became insolvent and could pay only 50 cents in a dollar.
January 18Sold goods to Steve for cash $1,000.


Cash A/c

Dr.    Cr.


 Jan 1To Balance b/d8000 Jan 1By Purchase A/c3800
Jan 4To Victor1980 Jan 8By Plant A/c300
Jan 15To Robert300 Jan 31 By balance c/d7180
Jan 18To Sales A/c1000   
  11280  11280
Feb 1To balance b/d7180   

Bank A/c

Dr.    Cr.
 Jan 1To balance b/d25000Jan 31By Balance c/d25000
  25000  25000
Feb 1To balance b/d25000   

Stock A/c

 Jan 1To balance b/d 20000 Jan 31By balance c/d20000
  20000  20000
 Feb 1To Balance b/d20000   

Building A/c

 Jan 1To Balance b/d10000 Jan 31By Balance c/d 10000
  10,000   10,000
 Feb 1To Balance b/d 10000   

Victor A/c

 Jan 1To balance b/d 2000 Jan 4By cash A/c1980
    By Discount A/c20
   2000  2000

Rita A/c

 Jan 1To Balance b/d 2000 Jan 31By Balance c/d2000
  2000  2000
Feb 1To Balance b/d2000   

Albert’s A/c

 Jan 31To balance c/d5000 Jan 1By Balance b/d5000
  5000  5000
    Feb 1By Balance b/d5000

Capital A/c

 Jan 31To balance c/d55000 Jan 1By Balance b/d55000
   55,000  55,000
    Feb 1By Balance b/d55000

Purchase A/c

 Jan 1To cash A/c 3800 Jan 31By balance c/d 4000
 To Discount A/c200   
   4000   4000
Feb 1To balance b/d4000   

Discount A/c

 Jan 4To Victor20 Jan 1By Purchases A/c200
Jan 31To balance c/d180   
  200  200
   Feb 1By Balance b/d180

Plant A/c

 Jan 8To Michael A/c5000Jan 31By Balance c/d5300
 Jan 8To Cash A/c300   
  5300   5300
Feb 1To Balance b/d5300   


 Jan 31To balance c/d5000 Jan 8By plant A/c5000
  5000  5000
    Feb 1By balance b/d5000

Sales A/c

 Jan 31To balance c/d1600 Jan 12By Robert600
    Jan 18By Cash1000
   1600  1600
   Feb 1By Balance b/d1600

Robert’s A/c

 Jan 12To Sales A/c600 Jan 15By Cash A/c300
   Jan 15By Bad Debts A/c300
   600  600

Bad Debts A/c

 Jan 15To Robert300Jan 31By Balance c/d300
  300  300
 Feb 1To balance b/d300   

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