Posting Journals to the
T-Accounts


Previous lesson: Balancing T-Accounts
Next lesson: Control Accounts


As previously mentioned, the second step in the accounting cycle is recording the accounting journals.

The third step is posting journals to the ledger (T-accounts).

What does this mean? Posting means to transfer the information calculated in the journals to the various T-accounts in the ledger.

Let's see exactly how this transfer is done. Look through the journals and T-account below, then read on for the explanation:

Cash Receipts Journal
Cash Payments Journal
Bank T-Account

In practice we would not put each individual transaction concerning bank into the "bank" T-account. Instead, we would simply take the total of cash receipts from the cash receipts journal (column "bank") and insert this on the debit side of the "bank" T-account. We would likewise take the total of cash payments from the cash payments journal (column "bank") and insert this on the credit side of the "bank" T-account.

This is the act of posting the journals to the ledger.

As you can see, we get to the same closing balance as in the previous lesson where we learned how to balance T-accounts.

In conclusion, the T-account thus shows the opening and closing balances and the individual transactions during the period covered. The T-account is a summary record of everything that occurred with a specific accounting item during a certain period of time.

Return from Posting Journals to the T Accounts to The Accounting Cycle

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Previous lesson: Balancing T-Accounts
Next lesson: Control Accounts



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