BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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not necessary
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the first item recorded when posting
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always placed in an account’s Post. Ref. column
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none of these
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Detailed explanation-1: -Posting Reference or Post Ref is a column in an accounting General Journal and General Ledger. It serves as a check and balance to ensure each transaction has been posted to the appropriate account. It is used in the process of posting transactions from the general journal to the general ledger.
Detailed explanation-2: -Definition: A posting reference column, often abbreviated PR, is a column in the general journal that is used to indicate when entries have been posted to the ledger accounts.
Detailed explanation-3: -In accounting, to “post” a transaction means to record it in the journal and/or the account ledgers. A post reference is a code that can guide anyone looking at a specific account ledger (such as accounts payable or accounts receivable) to the corresponding entry in the journal, or vice versa.
Detailed explanation-4: -Why are posting reference numbers entered in the journal when the entries are posted to the ledger accounts? Posting reference numbers are entered in the journal when posting to the ledger as a cross-reference that allows the record keeper or auditor to trace debits and credits from one record to another.