Procedure of posting (Journal → Ledger) MCQs Quiz | Class 9
This multiple-choice quiz for Class 9 students focuses on the Procedure of posting from Journal to Ledger, a key topic in Unit 5: Ledger of the Elements of Book-Keeping & Accountancy (Code 254) syllabus. The questions cover essential concepts such as the stepwise process of posting, correctly selecting and handling accounts, entering amounts, and the importance of cross-referencing using Journal Folio (J.F.) and Ledger Folio (L.F.). Attempt all questions and click ‘Submit Quiz’ to see your score and download a PDF of your answers.
Understanding the Procedure of Posting (Journal to Ledger)
Posting is the second stage in the accounting cycle, following the recording of transactions in the Journal. It is the process of transferring journal entries to their respective accounts in the main book of accounts, known as the Ledger. This step classifies and summarizes all transactions related to a particular account in one place, which helps in ascertaining the net balance of that account.
Key Concepts in Posting
- Ledger: The principal book of accounts where all transactions are classified under their respective account heads. It is often in a ‘T’ format, with a debit side (left) and a credit side (right).
- Posting: The act of transferring the debit and credit items from the Journal to their respective accounts in the Ledger.
- Cross-Referencing: A crucial system to link the Journal and Ledger. The Journal Folio (J.F.) column in the Ledger records the page number of the Journal, while the Ledger Folio (L.F.) column in the Journal records the page number of the Ledger where the posting has been made.
Stepwise Procedure of Posting
The process of posting a simple journal entry involves the following steps:
- Locate the Debited Account: First, find the account that has been debited in the journal entry within the Ledger. If the account does not exist, a new one is opened.
- Make the Debit Entry in Ledger: On the debit side (left side) of this account:
- Record the date of the transaction in the ‘Date’ column.
- In the ‘Particulars’ column, write ‘To’ followed by the name of the account that was credited in the journal entry.
- In the ‘J.F.’ (Journal Folio) column, write the page number of the journal from where the entry is being posted.
- In the ‘Amount’ column, record the amount that was debited in the journal.
- Locate the Credited Account: Next, find the account in the Ledger that was credited in the journal entry.
- Make the Credit Entry in Ledger: On the credit side (right side) of this account:
- Record the date of the transaction in the ‘Date’ column.
- In the ‘Particulars’ column, write ‘By’ followed by the name of the account that was debited in the journal entry.
- In the ‘J.F.’ column, write the page number of the journal.
- In the ‘Amount’ column, record the amount that was credited in the journal.
- Update Ledger Folio in Journal: Finally, go back to the journal and in the ‘L.F.’ (Ledger Folio) column, write the page numbers of the ledger on which the debit and credit accounts have been posted. This completes the posting process.
Journal vs. Ledger: A Quick Comparison
| Basis of Distinction | Journal | Ledger |
|---|---|---|
| Stage | It’s the first stage (recording). Known as the book of original entry. | It’s the second stage (classifying). Known as the principal book of accounts. |
| Format | Transactions are recorded in chronological (date-wise) order. | Transactions are recorded in an analytical (account-wise) order. |
| Purpose | To maintain a complete record of all transactions as they occur. | To find the net effect of all transactions on a specific account. |
| Narration | A brief explanation is written after each entry. | No narration is provided in the ledger. |
Quick Revision Points
- The process of transferring journal entries to the ledger is called posting.
- The account debited in the Journal is also debited in the Ledger.
- The account credited in the Journal is also credited in the Ledger.
- In the Ledger, the prefix ‘To’ is used for debit entries and ‘By’ for credit entries in the particulars column.
- J.F. and L.F. are essential for cross-referencing and auditing purposes.
- Every journal entry has a corresponding two-fold posting in the ledger (one debit and one credit).
Extra Practice Questions
- What does ‘L.F.’ stand for and where is it used?
- If a business owner invests capital (cash) into the business, which two accounts are affected in the ledger, and on which sides?
- What is the purpose of writing a date in a ledger posting?
- On which side of the ‘Machinery Account’ would you post an entry for the purchase of machinery on credit?
- Explain the term ‘Folio’ in the context of accounting.
