The date of each transaction is written just above it, in such a way that the date numbers separate the transactions. This is a good method, altho the left margin and the narrow column next to it are some times used for recording these dates.
5. Posting.—In the illustration, the figures in the narrow column at the left of the amount columns are checks." A posting check indicates two things, viz.: ( 1) the transference of the amount op posite it to the ledger account named; and (2) the ledger page on which the account is to be found. Thus, the figure "69" opposite "grain," on the first line, indicates that the $400 has been posted to the debit side of the grain account, which is found on page 69 of the ledger. The absence of any check opposite "cash," in the last transaction, indicates that this credit to cash has not yet been posted to the cash account.
The grain account, on page 69 of the ledger would look as follows, as far as the two entries posted from this page of the journal are concerned: When the debit from the journal is transferred, the amount is entered in the left-hand or debit money column. The entry, J 10, in the narrow column to the left indicates that this item has been posted from page 10 of the journal. The date of the transaction is written in the date column, and the name of the "offsetting" credited account is written in the wide or explanation column.
The insertion of the name of the opposing account is old-fashioned, a survival from the time when the only check on the accuracy of the entries was a de tailed comparison of the debit entries with the cor responding credit entries, and vice versa, to see whether the entries in the opposing accounts had ac tually been made. Today, except in the case ex plained below, one very seldom makes such cross com parisons but, instead, tests the equilibrium of the total debits and credits by means of a trial balance ( see Chapter IX) . Hence, these insertions have come to be regarded as useless labor, and have, for the most part, been abandoned.
In posting to personal accounts, however, the in sertion of the names of the opposing accounts serves a useful purpose. It is useful, for instance, when a credit is posted to a customer's account, since it shows the basis of the credit—cash received from him, a note, or whatever else it may be. A subsequent reference
to this account will show not only the balance in ,the account, but also the nature of the transactions that have resulted in that balance.
Probably the best procedure to follow when post ing, is to post in order all the debits, and then all the credits. This minimizes the danger of posting any item to the wrong side of an account—a mistake which is likely to occur frequently when debits and credits are posted alternately.
As soon as the transfer of any item to the ledger ac count has been completed, the number of the ledger page to which the transfer has been made should be written opposite that item in the posting medium be fore the next item is posted.
6. Routine of recording.—All transactions result ing in monetary changes in the condition of a business must be recorded in a journal. A routine should therefore be provided by means of which this informa tion may be collected in a form in which it can be properly recorded. It is not always convenient or feasible to make the journal record immediately after the transaction occurs, since entries will probably be made at certain times of the day, and there will be usually several persons engaged in transacting busi ness, while only one will be charged with the duty of writing up the records.
Incoming bills, copies or memoranda of transactions with creditors, check stubs, or carbon memoranda of cash payments, incoming payments on account, etc., are the true original records, and these must pass thru the bookkeeper's hands to be recorded. Memoranda of all other transactions—such as the receipt of a note to apply to a customer's account, allowance of a spe cial discount, and the correction of errors—must also be recorded by the bookkeeper. In nearly every case there will be a letter, or a copy of a letter, referring to the transaction. Under such circumstances the original should go to the bookkeeper, in order that he may be familiar with all facts, and also in order that there may be less chance of error than if the informa tion were copied and recopied before he received it.