Ledger posting is very important part of accounting system. As we know that to reach to any financial result, we have to go through so many process. For example, first of all, we must know to maintain proper account records. To maintain proper account records, one must know proper accounting system. And proper accounting system includes following important steps to be followed:-

  1. To prepare the vouchers.
  2. To enter the vouchers in to different type of day books.
  3. Posting the entries from day books to ledger.
  4. Totaling and Balancing of ledgers.
  5. To prepare the trial balance
  6. To prepare Trading Account, Profit & Loss Account and Balance Sheet.

After following the above procedures, all details relating to finance & accounts can be obtained very easily.

What is  is ledger?:- In brief, Ledger is a summary of all accounts heads maintained by the business firm.

How to post the entries from day book to ledger:- Following  are the procedures of posting of entries from day books to ledger:-

1. First of all, we have to open the accounts heads in ledger books. Ledger books contains similar type of pages having serial numbers. It also contains an index in beginning of ledger books. The name of account head is written in index of ledger and the same account head is written on any page of ledger. Then, the page number of that particular account head is written against that account head in index.

For Example:- Suppose, we want to open a Conveyance Expenses Account head in ledger. In this case, first, we shall write Conveyance Expenses Account in Index of ledger under ‘C’ alphabet and then we shall choose any page in ledger and on that page also, we shall write Conveyance Expenses Account. The page number, on which this Conveyance Expenses Account is written,  should be written in index of ledger against Conveyance Expenses Account.  So, when ever, we want to see the details of conveyance expenses account in ledger, first we shall open the index under alphabet ‘C’ then we will find out the page number of Conveyance Expenses Account and reach to particular page very easily. Same way, any number of accounts heads can be opened.

2. As we know that the ledger contains the columns like date, particulars, ledger folio, amount Dr., amount Cr. and balance Dr. or Cr.  There is simple procedure of posting the entries from day book to ledger. All entries relating to the accounts heads, which are debited, should be posted to debit side of ledger account. Similarly, the credit entries of any account head should be posted in to credit side of that particular ledger account. We can understand this system easily with the following example:-

Example:- Suppose, we prepared one Cash Payment Voucher like this:-

Date: 15.07.2012

Debit: Conveyance Expenses Account    Rs.800/=

Credit:- Cash Account                                Rs.800/=

(Being cash paid to Mr. Vinod for conveyance for the m/o June,2012)

First of all, the above voucher will be written in Cash Day Book in payment side.

From the above entry, we find that the Conveyance Expenses Account is being debited. Therefore, In ledger, under Conveyance Expenses Account head, we shall write this amount in debit side. In other words, the amount of above entries will be shown in debit side of Conveyance expenses Account.


Ledgers are prepared in two formats i.e. T Format or Standard Format.

From the following example, we can easily understand both type of formats. Suppose, we are doing ledger posting from the following cash book of M/s XYZ Limited:

From the above entries of cash book, we want to do the posting of rent account in T Type of Ledger then it will look as under:

But,  ‘T Format’ type of ledger is completely out of fashion. It is just seen in study matters.

Now a day, the standard format of ledger is used by every person because this is very easy to use and understand.

L =  Ledger

C = Cash Book

J = Journal

B= Bank Book

S = Sales Register

P = Purchase Register

How to Do Ledger Posting from Cash Book

We shall do the ledger posting from above Cash Book in Standard Format of ledger as under:

In above posting, date shows the date of transaction, L/F is the page number of cash book from where the entry is posted. Since the Rent  account head is debited, therefore, the amount is posted in debit side of Rent Account. In narration To Cash is shown because the entry shows that Rent is paid in cash. Under balance column, amount is shown as debit because the debit side is more than credit side. This is the simple rule of math.

Here, one point must be noted that in ‘Particulars column’, normally, the opposite account head of the entry is shown but there is no such hard and fast rule that the opposite account head only should be shown. One can give any narration under ‘Particular column’ as per the requirement of accounts reports. For example, in above posting one can write :- “To Cash (Mr. Vinod – April’ 2012)”. It shows that after viewing the Rent Account, one can easily trace out that to whom this money was paid and for what. So this is the additional information available simply by adding the name and the period relating to Rent.

In my view, narration under particulars column, does not affect the authenticity of the ledger posting. It can be given according to the requirement of the business firm. But narration should be brief, clear and meaningful. It should not be very long and confusing.

Finally, the page number of Rent account i.e. L-2 shall be entered under ledger folio of cash book on page number C-1 against Rent account head.

Same way all entries shall be posted in different ledger accounts.

How to Do Ledger Posting From Bank Book

Ledger posting from bank book is done as in case of cash book. Only difference is that for payment and receipt we use bank in place of cash.

Note: While posting from bank book,  cheque/draft/pay order number must be given in particular column of ledger account, if possible.

From the following examples, we can easily understand the ledger posting from bank book:

How to Do Ledger Posting from Purchase Register

Following points should be kept in mind while posting from purchase register:

All purchases bills should be credited to the Individual supplier’s ledger account

Total of purchases, taxes etc, should be posted in respected ledger accounts.

Example: With the help of the following example, we can understand in easy way how the ledger posting is done:

How to Do Ledger Posting From Sales Register

Following points should be kept while ledger posting from sales day book:

  • Individual Customer’s Account are debited with total amount of sale invoice.
  • Total of different types of sales and sales etc. are posted in respected accounts.

Example: See the following example of ledger posting from sales register:-

How to Do Ledger Posting From Journal Book

Following points must keep in mind while posting from journal register to ledger account:

All debit entries in journal shall be posted in debit side of the ledger account.

All the credit entries in journal shall be posted in credit side of the ledger account.

Example: With the help of the following example it can be explained in better way:-


An accountant must keep in his mind the following points while posting the entries in to ledger from different day books:-

  1. He should make sure that the right amount is being posted in right ledger.
  2. Proper indexing must be done for all account heads.
  3. Posting must be done date-wise only i.e the dates must be in ascending order.
  4. He should give the proper ledger folios in day books as well as in ledger account.
  5. In particular column the narration should be brief, simple and meaningful.
  6. A business firm can maintain different type of ledger according to its needs. For example:- supplier ledger, customer ledger, general ledger etc.. The accountant must keep in mind that the posting of entry is done in correct ledger.
  7. There are certain entries which are not posted in ledger individually but the total of those entries is posted in to ledger. For example, total of sales from sales register, total of purchases from purchase register etc.  are posted in to respective account heads. These entries of purchase or sale  are not posted individually for each and every transaction but the periodical total of all transaction is posted once. In above case, suppose, we take the example of purchase register. In purchase register, first of all, the total of purchase column will be done. Then the total of purchase column will be posted in Purchase Account in Ledger and the narration under Particular Column can be given like”The amount of Purchase for the m/o —” and date of posting will be either month end date or any other date according to the last entry of purchase register.
  8. After posting the entries in to ledger, proper balancing of ledger must be done. The balance should be written in balance column of ledger account. For balancing, one should remember that if the total amount of debit side is more than the credit side then the difference will be written in balance column with a sign of Dr. and if the total amount of credit is more than debit side then the difference will be shown in balance side with a sign of Cr.. If totals of debit and credit sides are equal then in balance column “NIL” will be written.