Posting copies each journal line into two ledger accounts: the debit account gets the amount on its left side, and the credit account gets it on its right side. The details column names the other account.
This lesson follows deciding debit and credit entries.
How do you post one journal entry?
Use the same four moves every time.
- Find the account named as the debit. Write the date, the credit account’s name as the detail, and the amount on the debit side.
- Find the account named as the credit. Write the date, the debit account’s name as the detail, and the amount on the credit side.
- Tick the journal line so you know it is posted.
- Check that the two amounts you wrote are equal.
Worked example: a three-line journal
Here are Ravi’s original journal entries for March.
| Date | Account | Debit | Credit |
|---|---|---|---|
| 1 Mar | Bank | 8 000 | |
| Capital | 8 000 | ||
| 4 Mar | Purchases | 2 500 | |
| Suria Trading | 2 500 | ||
| 9 Mar | Suria Trading | 1 000 | |
| Bank | 1 000 |
All amounts are in RM. Posted to the ledger, the Bank account and the Suria Trading account look like this.
Bank account
| Debit | RM | Credit | RM |
|---|---|---|---|
| 1 Mar Capital | 8 000 | 9 Mar Suria Trading | 1 000 |
Suria Trading account
| Debit | RM | Credit | RM |
|---|---|---|---|
| 9 Mar Bank | 1 000 | 4 Mar Purchases | 2 500 |
Suria Trading is owed RM2 500 and has been paid RM1 000, so the account still shows RM1 500 owing. You will work out that balance in the next lesson.
The mistake that costs marks
The usual slip is to write the account’s own name in the details column, such as “Bank” inside the Bank account. The amount is on the right side, so the error looks harmless.
| Line | Wrong | Right |
|---|---|---|
| Bank account, 1 Mar | Bank 8 000 | Capital 8 000 |
| Suria Trading account, 9 Mar | Suria Trading 1 000 | Bank 1 000 |
Without the other account’s name, the ledger cannot be traced back. In a question that asks you to explain where an amount came from, you lose the marks for that explanation.
Check yourself
Post these journal lines to the Sales account and the Hana account. On 12 March Ravi sells goods on credit to Hana for RM1 200. On 20 March Hana pays RM700 into the bank.
Answer
Journal for 12 Mar: debit Hana 1 200, credit Sales 1 200. Journal for 20 Mar: debit Bank 700, credit Hana 700.
Sales account: credit side, 12 Mar Hana 1 200.
Hana account: debit side, 12 Mar Sales 1 200. Credit side, 20 Mar Bank 700.
The details column names the other account each time. Hana still owes RM500.
What to study next
Next, turn the ledger into closing figures with balancing ledger accounts. If an amount does not agree later, tracing an error through both sides of a transaction shows how to find it.
If you want a teacher to watch you post a whole set, see online one-to-one Accounting tuition.