Posting means copying each entry from the book of original entry into the ledger accounts. Each transaction gives one line on the debit side of one account and one line on the credit side of another. Every line shows the date, the other account’s name, a reference and the amount.
This lesson follows choosing debit and credit from account type and recording cash and credit sales. It prepares you to balance accounts in the next lesson.
What does each ledger column do?
A ledger account has two sides. The left is the debit side and the right is the credit side. Each side has four columns:
- Date of the transaction.
- Details: the name of the account where the other entry sits.
- Ref: a folio or code that points to the other account. In this lesson, Bank is L1, Capital is L2, Purchases is L3 and Sales is L4.
- RM: the amount.
How do you post step by step?
- Write the journal entry first: which account is debited, which is credited, and the amount.
- Open a line on the debit side of the debited account. Put the credited account’s name in Details.
- Open a line on the credit side of the credited account. Put the debited account’s name in Details.
- Add the reference for the account on the other side.
- Tick off the transaction once it appears in both accounts.
Worked example
Dewi Florist is a fictional business. Post these March transactions.
- 1 March: the owner pays RM8,000 into the business bank account.
- 3 March: the shop buys flowers for resale, RM1,500, paying by bank.
- 5 March: the shop sells flowers, RM2,200, and the money goes into the bank.
Journal entries. 1 March: debit Bank, credit Capital, RM8,000. 3 March: debit Purchases, credit Bank, RM1,500. 5 March: debit Bank, credit Sales, RM2,200.
Bank account (L1)
| Date | Details | Ref | RM | Date | Details | Ref | RM |
|---|---|---|---|---|---|---|---|
| 1 Mar | Capital | L2 | 8,000 | 3 Mar | Purchases | L3 | 1,500 |
| 5 Mar | Sales | L4 | 2,200 |
Capital account (L2)
| Date | Details | Ref | RM | Date | Details | Ref | RM |
|---|---|---|---|---|---|---|---|
| 1 Mar | Bank | L1 | 8,000 |
Purchases account (L3)
| Date | Details | Ref | RM | Date | Details | Ref | RM |
|---|---|---|---|---|---|---|---|
| 3 Mar | Bank | L1 | 1,500 |
Sales account (L4)
| Date | Details | Ref | RM | Date | Details | Ref | RM |
|---|---|---|---|---|---|---|---|
| 5 Mar | Bank | L1 | 2,200 |
Check: total debit postings are 8,000 + 1,500 + 2,200 = RM11,700. Total credit postings are 1,500 + 8,000 + 2,200 = RM11,700. Each of the three transactions appears twice.
What mistake should you watch for?
A common slip is to write the account’s own name in the Details column.
Mistaken posting: In the Bank account, the 5 March line reads “Bank, L1, 2,200”.
The student wrote the name of the page they were on instead of the account on the other side.
The amount and side may be right, yet the line tells the reader nothing. A reader cannot trace where the money came from. Correct line: in the Bank account, the 5 March debit shows Sales, L4, 2,200.
A quick test: the Details column should never repeat the title of the account you are writing in.
Check yourself
1. Dewi Florist pays RM900 rent by bank on 12 March. In which two accounts do you post, and on which sides?
Show answer
Debit Rent on the debit side (Details: Bank). Credit Bank on the credit side (Details: Rent). The amount in each is RM900.
2. In the Sales account above, what should the Details column show for the 5 March line, and on which side does it sit?
Show answer
It should show Bank, because the other entry is in the Bank account. It sits on the credit side, because income increases with a credit.
3. A student posts a credit sale to Lim as a debit in Sales and a credit in Lim’s account. Which part is wrong?
Show answer
Both sides are reversed. Lim should be debited (he owes the business) and Sales credited (income).
Where does this lead next?
Once postings are tidy, you can close an account and find its balance: balance an account and explain the brought-down side. The double-entry and ledger trainer keeps a full posting trail for fictional transactions so you can compare it with your own.
Learners sometimes post the right amounts to the wrong side and cannot see why the ledger looks off. In online one-to-one Accounting tuition, your assigned teacher can go through your ledgers line by line and show you what to check first.