Posting and Balancing

Posting and Balancing :

Once transactions are properly recorded in purchases journal, they are posted into the ledger. The procedure for posting is stated as under.

Step 1 : Entries will be posted to the credit side of the respective creditors (supplier) account in the ledger by writing “By Purchases A/c” in the particulars column.

Step 2: Periodic total is posted to the debit of purchases account by writing “To sundries as per purchases book” in the particulars column.

Illustration : From the following transactions of Ram for July, 2003 prepare the Purchases Book and ledger accounts connected with this book.

2003
July 5 Purchased on credit from Kannan & Co.
50 Iron boxes @ Rs. 500
10 Grinders @ Rs. 3,000
6 Purchased for cash from Siva & Bros.
25 Fans @ Rs. 1,250
10 Purchased from Balan & Sons on credit
20 Grinders @ Rs. 2,500
10 Mixie @ Rs. 3,000
20 Purchased, on credit, one Computer from
Kumar for Rs. 35,000.

Date	Particulars	Inward Invoice No.	L.F.	Amount
				Details Rs.	Total Rs.
2003 July          5 10	Kaman & Co. 50 Iron boxes @ Rs. 500 10 Grinders @ Rs. 3,000 Goods purchased vide their bill No Dated			25,000 30,000	55,000
	Balan & Co. 20 Grinders @ Rs.2,500 10 Mixie @ Rs. 3,000			50,000 30,000
	Goods purchased vide their bill No…………… Dated …..				80,000
	Total				1,35,000

                                                                                                Ledger Accounts
Dr.                                                                                         Purchases Account                                                                              Cr.

Date	Particulars	J.F.	Rs Amount .	Date	P                            ‘culars	J.F	Amount Rs.
2003 July 31	To Sundries as per Purchases Book		1,35,000

Dr.                                                                                          Kannan & Co. Account                                                                       Cr.

Date	Particulars	J.F.	A mo unt Rs	Date	Particulars	J.F	Amou nt Rs.
				2003 July 5	By Purchases A/c		55,0004

Dr.                                                                                          Balan & Co. Account                                                                         Cr.

Date	Particulars	J.F.	A mo Rsunt	Date	Particulars	J.F	Amou nt Rs.
				2003 July 10	By Purchases A/c		80,000

 

Note : July 6th transaction is a cash transaction and July 20th transaction is purchase of an asset, so both will not be recorded in the purchases book.