Question

Transferring an entry from Journal to ledger is called journalisation.

• A. True
• B. False

Answer 1

The correct option is B False

Ledger posting means making entries of the transactions in the ledger books from the journals. Posting is a process of transferring debit and credit aspects of the entries appearing in the journal and other books of original entry to the debit and credit sides of the relevant accounts in the ledger. Postings are made using the word 'To' and 'By' as a prefix.

For debit side entry 'To' prefix is used and for credit side entry 'By; prefix is used. The aim of posting is to make a classified and summarized record of all business transactions under appropriate account heads.