Posting: Meaning MCQs Quiz | Class 9
This is an MCQ quiz for Class IX students studying Elements of Book-Keeping & Accountancy (Code 254). This quiz is from Unit 5: Ledger and focuses on the topic of Posting, specifically covering the process of transferring entries from journal and subsidiary books to ledger accounts. Attempt all questions and click ‘Submit Quiz’ to see your score and download the answer PDF.
Understanding Posting in Accountancy
After transactions are first recorded in the Journal or Subsidiary Books (the books of original entry), the next crucial step in the accounting cycle is to transfer these entries to the principal book of accounts, known as the Ledger. This process of transferring debit and credit items from the journal to their respective accounts in the ledger is called Posting.
The Process of Posting
Posting is a systematic process that ensures all transactions are classified and summarized under appropriate account heads. It helps in understanding the net effect of all transactions on a particular account. The steps are as follows:
- Identify the Debit Account: In the journal entry, locate the account that has been debited.
- Open the Ledger Account: Find that specific account in the Ledger. If it doesn’t exist, a new account is opened.
- Record on the Debit Side: On the debit (left) side of the ledger account, record the following details:
- Date: The date of the transaction.
- Particulars: The name of the account that was credited in the journal entry, prefixed with “To”.
- J.F. (Journal Folio): The page number of the Journal where the original entry is recorded. This helps in cross-referencing.
- Amount: The amount that was debited.
- Identify the Credit Account: Go back to the journal entry and locate the account that has been credited.
- Record on the Credit Side: On the credit (right) side of that ledger account, record the details:
- Date: The date of the transaction.
- Particulars: The name of the account that was debited in the journal entry, prefixed with “By”.
- J.F. (Journal Folio): The page number of the Journal.
- Amount: The amount that was credited.
Example of Posting
Let’s consider a simple journal entry: “Purchased goods for cash Rs. 5,000”.
Journal Entry:
Purchases A/c Dr. 5,000
To Cash A/c 5,000
This entry will be posted to two ledger accounts:
| Purchases Account (Ledger) | Cash Account (Ledger) |
|---|---|
|
Dr. To Cash A/c 5,000 |
Cr. By Purchases A/c 5,000 |
Quick Revision Points
- Posting is the process of transferring entries from the Journal to the Ledger.
- The Ledger is called the “Principal Book” of accounts because it contains all the accounts.
- The debit aspect of a journal entry is posted to the debit side of a ledger account.
- The credit aspect is posted to the credit side of another ledger account.
- The term “To” is used on the debit side of a ledger account, and “By” is used on the credit side.
- The J.F. (Journal Folio) column in the Ledger links the entry back to the Journal. Similarly, the L.F. (Ledger Folio) column in the Journal links to the Ledger.
Practice Questions
- What is the purpose of the Journal Folio (J.F.) column in the Ledger?
- Describe the rule for posting an entry related to the sale of goods on credit to Mr. Sharma.
- If the Rent account is debited in the journal, on which side of the Rent Account in the ledger will the posting be made?
- What prefixes are used in the ‘Particulars’ column for entries on the debit and credit sides of a ledger account?
- Why is the Ledger considered the “Principal Book” of accounts?
