Question

The only reason for the Post. Ref. columns of the journal and general ledger is to indicate which entries in the journal still need to be posted if posting is interrupted?

Answer 1

The Post. Ref. columns in the journal and general ledger are not only used to track unposted entries but also serve as a cross-reference between journal entries and ledger accounts for accuracy and audit purposes.

Step-by-step explanation:

The Post. Ref. columns in the journal and general ledger have a dual purpose. While one of their functions is to help identify which entries still need to be posted in case the posting process is interrupted, they also serve to create a cross-reference between the journal entries and the ledger accounts. Specifically, when a journal entry is posted to the general ledger, the account number of the ledger is written in the Post. Ref. column of the journal. Conversely, the page number of the journal is written in the Post. Ref. column of the ledger account where the entry is posted. This helps ensure the accuracy of the posting process and provides an easy way to trace entries between the journal and the ledger for audit purposes or when reviewing the accounting records.