1. Systematically Transferring Journal Entries to Ledgers
Posting is the process of transferring financial facts and figures from chronological journals into the individual accounts within the General Ledger. This step moves information from a daily log format into organized balance tracking.
2. Step-by-Step Manual and Automated Posting Protocol
To manually post a journal entry to a ledger account, follow these four steps:
  1. Locate the correct ledger account using its Chart of Accounts code.
  2. Enter the date of the transaction into the ledger account’s date column.
  3. Post the dollar amount: enter it into the Debit column of the ledger account if it was debited in the journal, or into the Credit column if it was credited.
  4. Record the reference code (e.g., GJ42 for General Journal Page 42) in the ledger’s reference column to create a clear audit trail. Then, write the account number back in the journal’s reference column to show the line has been posted.

3. Cross-Referencing Systems
Cross-referencing ensures you can trace any transaction backward or forward through the system. If you see a ledger entry for rent, the reference column tells you exactly which journal page to look at to find the matching cash credit and the written explanation.
 
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