Posting of a Compound Journal Entry: Compound or Combined journal entry is one where more than one transactions are recorded by passing only one journal entry instead of passing several journal entries. Since every debit must have the corresponding equal amount of credit, special care must be taken in posting the compound journal entry, where there may be only one debit aspect but many corresponding credit aspects of equal value or vice versa.
Example: Jan. 15,2018, Cash Sales Rs. 10,000 cash received from Kannan Rs. 5,000 and commission earned Rs. 2,500.

Steps in posting:
(i) Procedure of posting for an account which has been debited in the journal entry:
Step 1: Locate in the ledger, the account to be debited and enter the date of the transaction in the date column on the debit side.
Step 2: Record the name of the account credited in the journal in the particulars column on the debit side as "To .......... (name of the account credited)".
Step 3: Record the page number of the journal in the J.F. column on the debit side of the ledger. And in the journal, write the page number of the ledger on which a particular account appears in the L.F. column.
Step 4: Enter the relevant amount in the amount column on the debit side.
(ii) Procedure of posting for an account which has been credited in the journal entry:
Step 1: Locate in the ledger, the account to be credited and enter the date of the transaction in the date column on the credit side.
Step 2: Record the name of the account debited in the journal in the particulars column on the credit side as "By................ (name of the account debited)".
Step 3: Record the page number of the journal in the J.F. column on the credit side in the ledger. And in the journal, write the page number of the ledger on which a particular account appears in the L.F column.
Step 4: Enter the relevant amount in the amount column on the credit side.

Significance of debit and credit balances of various types of accounts: There are three possibilities while balancing an account during a given period. It may be a debit balance or a credit balance or a nil balance depending upon the debit total and the credit total.
(i) Debit Balance: The excess of debit total over the credit total is called the debit balance.
(ii) Credit Balance: The excess of credit total over the debit total is called the credit balance.
(iii) Nil Balance: When the total of debits and credits are equal, it is closed by merely writing the total on both the sides. It indicates the equality of benefits received and given by that account.
Balancing of different accounts: Balancing is done periodically, (i.e.,) weekly, monthly, quarterly, half-yearly or yearly, depending on the requirements of the business.
(i) Personal Accounts: These accounts are generally balanced regularly to know the amounts due to the persons (creditors) or due from the persons (debtors).
(ii) Real Accounts: These accounts are generally balanced at the end of the financial year, when final accounts are being prepared. However, cash account is frequently balanced to know the cash on hand. A debit balance in an asset account indicated the value of the asset owned by the business. Assets accounts always show debit balances.
(iii) Nominal Accounts: These accounts are in fact, not to be balanced as they are to be closed by transfer to final accounts. A debit balance in a nominal account indicates that it is an expense or loss. A credit balance in a nominal account indicates that it is an income or gain.
All such balances in personal and real accounts are shown in the Balance Sheet and the balances in nominal accounts are taken to the Profit and Loss Account.

(i) The debit and credit columns of an account are to be totalled separately.
(ii) The difference between the two totals is to be ascertained.
(iii) The difference is to be placed in the amount column of the side having lesser total. 'Balance c/d' is to be entered in the particulars column against the difference and in the date column the last day of the accounting period is entered.
(iv) Now both the debit and credit columns are to be total and the totals will be equal. The totals of both sides are to be recorded in the same line horizontally.
(v) The total is to be distinguished from other figures by drawing lines above and below the amount.
(vi) The difference has to be brought down to the opposite side below the total.
(vii) 'Balance b/d' is to be entered in the particulars column against the difference brought down and in the date column, the first day of the next accounting period is entered.
(viii) If the total on the debit side of an account is higher, the balancing figure is debit balance and if the credit side of an account has higher total, the balancing figure is credit balance. If the two sides are equal, that account will show nil balance.

The procedure of posting from journal to ledger is as follows:
(i) Locate the ledger account that is debited in the journal entry. Open the respective account in the ledger if already not opened. Write the name of the account in the top middle. If already opened, locate the account from the ledger index.
(ii) Record the date of the transaction in the date column on the debit side of that account.
(iii) Record the name of the account credited in the Journal with the prefix 'To' in particulars column.
(iv) Record the amount of the debit in the 'Amount column'.
(v) Locate the Ledger account that is credited in the journal entry. Open the respective account in the ledger if already not opened.
(vi) Write the name of the account in the top middle. If already opened, locate the account from the ledger index.
(vii) Record the name of the account debited in the journal entry particulars column with the prefix 'By' and write the amount in the amount column.

(i) Ledger account is a summary statement of all the transactions relating to a person, asset, liability, expense or income which has taken place during a given period of time and it shows their net effect. From the transactions recorded in the journal, the ledger account is prepared.
(ii) Ledger is known as principal book of accounts.
Utilities of ledger
1) Quick information about a particular account:
Ledger account helps to get all information about a particular account like sales, purchases, machinery, etc., at a glance. For example where there are several transactions with a debtor, the net amount due from a debtor can be known from the ledger account.
2) Control over business transactions:
From the ledger balances extracted, a thorough analysis of account balances can be made which help to have control over the business transactions.
3) Trial balance can be prepared:
With the balances of ledger accounts, trial balance can be prepared to check the arithmetical accuracy of entries made in the journal and ledger.
4) Helps to prepare financial statements:
From the ledger balances extracted, financial statements can be prepared for ascertaining net profit or loss and the financial position