After the financial transaction is recorded in the daily book in the form of accounting entries, then those entries are posted to their accounts in the ledger.
General ledger
It is that record that contains all the accounts of the establishment, so that each account has its own page called a ledger page in which the financial movements that affected it are recorded, whether they are debit or credit movements, based on the entries that were recorded in the daily book, and there are two models for the account page In the ledger:
It is that record that contains all the accounts of the establishment, so that each account has its own page called a ledger page in which the financial movements that affected it are recorded, whether they are debit or credit movements, based on the entries that were recorded in the daily book, and there are two models for the account page In the ledger:
Practical application example:
This model is used by most companies in practice.
This model is used by most companies in practice.
Fund account in the general ledger
Theoretical model (T):
This form is used for the purpose of teaching and learning, so that the teacher’s page appears in the form of the letter T in the English language, so the right side of the account is the debit side (of it), and the left side is the credit side (of it).
Fund account in the general ledger
Assistant ledger
It is another ledger branching from the general ledger, and it is opened according to the need of the establishment. For example, the establishment may open an assistant ledger for the account of debtors, so that each debtor or customer has its own page to which the debit and credit movements are transferred, in order to know the balance of each customer’s account with ease. And ease, as well as opening an assistant ledger for the expense account, so that each expense has its own page to which the debit and credit transactions are transferred, and so on.
It is another ledger branching from the general ledger, and it is opened according to the need of the establishment. For example, the establishment may open an assistant ledger for the account of debtors, so that each debtor or customer has its own page to which the debit and credit movements are transferred, in order to know the balance of each customer’s account with ease. And ease, as well as opening an assistant ledger for the expense account, so that each expense has its own page to which the debit and credit transactions are transferred, and so on.
deportation
The posting process means that the financial transactions recorded in the journal are transferred to their accounts in the general ledger, so that each debit amount recorded in the journal is posted to the debit side of the account page (the ledger page), and every credit amount recorded in the journal is posted to the side Credit from the account page in the general ledger.
The posting process means that the financial transactions recorded in the journal are transferred to their accounts in the general ledger, so that each debit amount recorded in the journal is posted to the debit side of the account page (the ledger page), and every credit amount recorded in the journal is posted to the side Credit from the account page in the general ledger.
Example
These are some of the entries recorded in the Al-Salam facility's journal during the month of February.
These are some of the entries recorded in the Al-Salam facility's journal during the month of February.
Required :
Post entries from the journal to their accounts in the ledger
Post entries from the journal to their accounts in the ledger
Solution method:
First entry:
First entry:
In the first entry, you notice that the accounts affected by the financial transaction are the fund account and the bank account. The fund account was recorded in the journal on the debit side, while the bank account was recorded on the credit side. To post the financial transaction to the ledger, the debit amount is transferred to the fund account that appears in the ledger. The journal is transferred to the debit side (of it) of the cash account in the ledger, and the credit amount of the bank account is transferred from the journal to the credit side (of it) of the bank account in the ledger, as follows:
Fund account
him to him
2500 to H/Bank 1/2
him to him
2500 to H/Bank 1/2
Bank account
him to him
2500 from H/Fund 01/02
The second entry:
In the second entry, you notice that the accounts affected by the financial transaction are the electricity expense account and the fund account. The electricity expense account was recorded in the journal on the debit side, while the fund account was recorded on the credit side. To post the financial transaction to the ledger, the debit amount is transferred to the electricity expense account. appearing in the journal to the debit side of the electricity expense account in the ledger, and transferring the credit amount to the cash account from the journal to the credit side of the cash account in the ledger, as follows:
Calculation of electricity expenses
him to him
500 to h/fund 02/03
him to him
500 to h/fund 02/03
Fund account
him to him
2500 to h/bank 01/02 500 from h/m. Electricity 03/02
Note: Notice how the fund account changed when the second entry was posted. When the first entry was posted, it was a debit of $2,500, then when adding the second entry it became a debit of $2,500 and a credit of $500. The difference between the value of the debit and the credit represents the balance of the fund’s account.
balance
It is intended to find the value of the difference between the debit amounts and the credit amounts for each of the accounts in the general ledger and the auxiliary books, and this resulting difference represents the balance of the account, so if the sum of the debit amounts is greater than the sum of the credit amounts, then the balance that will appear is a debit balance, but if If the sum of the credit amounts is greater than the sum of the debit amounts, then the balance of the account will be credit, but if the debit side is equal to the credit side, then the balance is zero, for example if the sum of the debit movements in the fund account during the fiscal year is $100,000 and the sum of the credit movements for the same account is $70,000 The difference is equal to 30,000 dollars, which represents the balance of the fund’s account at the end of the fiscal year, and in this case the balance of the fund is debited with a value of 30,000 dollars, and each account is credited according to Form (T) with the following steps:
The sums appearing on the debit side are summed up and the sums appearing on the credit side are summed up.
The larger total is then recorded on both sides at the bottom of the ledger page.
After that, the difference is recorded on the lower side, and this difference represents the balance of the account in the ledger, so if the difference is recorded on the debit side of the account, then the balance is credit, but if the difference is recorded on the credit side, then the balance is debit.
Example
To complement the previous example, if it is required to post and balance the fund account from the journal to the ledger, then the fund account will appear as follows:
The larger total is then recorded on both sides at the bottom of the ledger page.
After that, the difference is recorded on the lower side, and this difference represents the balance of the account in the ledger, so if the difference is recorded on the debit side of the account, then the balance is credit, but if the difference is recorded on the credit side, then the balance is debit.
Example
To complement the previous example, if it is required to post and balance the fund account from the journal to the ledger, then the fund account will appear as follows:
The balance of the fund account, as shown in the ledger of the fund account, is owed $2,000.
Note: Accounts of a debit nature, such as assets accounts, expenses accounts, and personal withdrawals, have a debit balance in most cases, while accounts of a credit nature such as liabilities accounts, revenue accounts, and capital accounts are mostly credit balances.
The use of accounting software on the computer helped the accountant to carry out many accounting operations with ease, speed and ease. For example, the accountant can, once the entry is written in the accounting program, the program itself performs the posting and balance process, unlike the manual system that
The use of accounting software on the computer helped the accountant to carry out many accounting operations with ease, speed and ease. For example, the accountant can, once the entry is written in the accounting program, the program itself performs the posting and balance process, unlike the manual system that
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