Ledger Posting with a Simple Technique
Complete Notes – Journal to Ledger Posting
1. Meaning of Ledger
A Ledger is the book in which transactions are classified and recorded account-wise. Transactions affecting
Cash are collected in the Cash Account, transactions affecting Sales in the Sales Account, and so on. The
basic sequence is Journal → Ledger → Trial Balance.
2. Ledger Format
A ledger has two sides: the left side is Debit and the right side is Credit. A typical format contains Date,
Particulars, J.F. and Amount.
3. Most Important Posting Rule
The account debited in the Journal is debited in its Ledger. The account credited in the Journal is credited in its
Ledger. On the Debit side, use To; on the Credit side, use By.
4. Started Business with Cash
Journal: Cash A/c Dr. ■1,00,000
To Capital A/c ■1,00,000
Cash Ledger: To Capital A/c ■1,00,000
Capital Ledger: By Cash A/c ■1,00,000
5. Purchased Goods for Cash
Journal: Purchases A/c Dr. ■20,000
To Cash A/c ■20,000
Purchases Ledger: To Cash A/c ■20,000
Cash Ledger: By Purchases A/c ■20,000
6. Credit Purchase
Goods purchased from Ravi for ■15,000:
Purchases A/c Dr. ■15,000
To Ravi A/c ■15,000
Purchases Ledger: To Ravi A/c. Ravi Ledger: By Purchases A/c.
7. Credit Sale
Goods sold to Amit for ■10,000:
Amit A/c Dr. ■10,000
To Sales A/c ■10,000
Amit Ledger: To Sales A/c. Sales Ledger: By Amit A/c.
8. Rent Paid
Rent ■5,000 paid in cash:
Rent A/c Dr. ■5,000
To Cash A/c ■5,000
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Complete Notes – Journal to Ledger Posting
1. Meaning of Ledger
A Ledger is the book in which transactions are classified and recorded account-wise. Transactions affecting
Cash are collected in the Cash Account, transactions affecting Sales in the Sales Account, and so on. The
basic sequence is Journal → Ledger → Trial Balance.
2. Ledger Format
A ledger has two sides: the left side is Debit and the right side is Credit. A typical format contains Date,
Particulars, J.F. and Amount.
3. Most Important Posting Rule
The account debited in the Journal is debited in its Ledger. The account credited in the Journal is credited in its
Ledger. On the Debit side, use To; on the Credit side, use By.
4. Started Business with Cash
Journal: Cash A/c Dr. ■1,00,000
To Capital A/c ■1,00,000
Cash Ledger: To Capital A/c ■1,00,000
Capital Ledger: By Cash A/c ■1,00,000
5. Purchased Goods for Cash
Journal: Purchases A/c Dr. ■20,000
To Cash A/c ■20,000
Purchases Ledger: To Cash A/c ■20,000
Cash Ledger: By Purchases A/c ■20,000
6. Credit Purchase
Goods purchased from Ravi for ■15,000:
Purchases A/c Dr. ■15,000
To Ravi A/c ■15,000
Purchases Ledger: To Ravi A/c. Ravi Ledger: By Purchases A/c.
7. Credit Sale
Goods sold to Amit for ■10,000:
Amit A/c Dr. ■10,000
To Sales A/c ■10,000
Amit Ledger: To Sales A/c. Sales Ledger: By Amit A/c.
8. Rent Paid
Rent ■5,000 paid in cash:
Rent A/c Dr. ■5,000
To Cash A/c ■5,000
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