2. Journalize the following transactions:
| —April 10— | ||
| Bought from David Cole & Son on account | ||
| 100 bbls. flour at | $4.60 | $460.00 |
| —10— | ||
| Sold to L. H. Stebbins on account | ||
| 20 bbls. flour at | 5.10 | 102.00 |
| —10— | ||
| Sold to Henry Waterbury on account | ||
| 30 bu. beans | 2.00 | 60.00 |
| 20 " oats | .37 | 7.40 |
| —11— | ||
| Paid to David Cole & Son | ||
| Cash on account | 160.00 | |
| Gave them my note for 30 days | 300.00 | |
| —11— | ||
| Received note from L. H. Stebbins | ||
| for 30 days to balance account | 102.00 | |
| —12— | ||
| Paid cash for harness oil | .35 | |
| —12— | ||
| Henry Waterbury paid cash on account | 40.00 | |
RULES FOR POSTING
67. The act of transferring all items from the journal, sales book, purchase book, cash book, or other books to the ledger is called posting. All items relating to one account are posted to that account in the ledger; thus all sales are posted to the sales account, and all transactions with a person are posted to the account of that person. Every debit must be posted to the debit side of the corresponding account in the ledger.
68. Routine. The first operation in posting is to open an account in the ledger by writing the name of the account on the line at the head of the ledger page. The month and day are then written in the date column; the page of the book from which the item is posted is written in the folio column, and the amount is placed in the money column. The final operation is to place the number of the ledger page in the folio column of the book from which the item was transferred, directly opposite the item posted.
Posting from Journal. In posting from the journal, all items in the left or debit columns are posted to the debit side of the corresponding ledger accounts, while all items in the credit column are posted to the credit side of the ledger accounts.
The first item in the journal in the preceding section is a debit to Hiram Watson, amount $1.15. It is necessary to open an account in the ledger, which is done by writing Hiram Watson's name at the head of the page, above the date column on the left side of the page; in the date column we write the date, April 2; in the folio column we write the journal page, 1: and in the money column we write the amount, $1.15. The number of the ledger page is now written in the folio column in the journal, directly opposite the name of Hiram Watson.
The second transaction recorded in the journal is a purchase which makes it necessary to open a purchase account in the ledger, to which is debited the amount of the purchase $18.75. The first transaction recorded in the journal is a sale, therefore the credit is to the sales account. Since we are placing all sales in a special column, the amount will not be posted until the end of the month, when the total sales will be posted to the credit of the sales account as one item. In the second transaction, the credit is to a personal account, and we open an account in the ledger with Eureka Milling Co., following the same routine in posting as with debit items, except that the item is posted to the credit side of the account.
Posting from Cash Book. When posting from the cash book, it must be remembered that all items on the left-hand page (which debit cash) must be posted to the credit of some other account; and that all items on the right-hand page (which credit cash) must be posted to the debit of an account in the ledger.