4.3 Posting to the ledger

POSTING

Transferring information from a journal to a ledger

Ledger

• Permanent and classified record of all accounts of a business

• Book of final entry

Forms of ledgers

• Standard form [T-account form]

• Balance ledger form [Running balance form]

Types of ledgers

• General ledgers

• Subsidiary ledgers – groups of similar ledgers with combined balances equal to the balance of a specific general

ledger account

• Individual Accounts Receivables to support Accounts Receivables Control Account

• Individual Accounts Payables to support Accounts Payables Control Account

• Separate records of each Property, Plant, and Equipment account

  (Land, Building, Machinery, Equipment, Vehicle, Furniture, Fixtures, Fittings)

• Separate records of each type of inventory (Merchandise inventory, Raw materials, Work in progress, Finished goods)

* Control account – Summary account that is used check the mathematical accuracy of the ledgers it controls