Posting in Accounting

What is a Posting?

An accounting posting is the transfer of entries in the subsidiary books of account or journals to the appropriate general ledger accounts and is part of the double entry bookkeeping system.

A posting is normally carried out following the preparation of a journal entry from the underlying transaction information, and is shown as step three in our accounting cycle diagram.

Postings should be made before the completion of the annual financial statements but within that limit can be carried out at anytime daily, weekly, monthly depending on the requirements of the business.

The posting references in a journal are normally to documents supporting the transaction and the general ledger account codes.

In computerized systems the postings of individual transactions might be direct to the general ledger without the use of subsidiary ledgers.

Rules of Posting in Accounting

While each entry in the ledger is different general rules of posting apply in most cases.

  1. Enter the date and year of the transaction in the date column.
  2. Debit a ledger account and make reference to the account credited.
  3. Credit a ledger account and make reference to the account debited.
  4. Enter a reference to the original book of prime entry (subsidiary book).

For further information see the Wikipedia bookkeeping definition.

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Last modified December 6th, 2017 by Michael Brown

About the Author

Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years in all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a BSc from Loughborough University.

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