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) Ledger is known as the principal book of accounts because it is very useful for a business enterprise.
(ii) It is a book which contains all sets of accounts, namely, personal, real and nominal accounts.
(iii) Account-wise Balance can be determined from the Ledger.
(iv) The Ledger Accounts are opened or maintained based on journal entries passed.
(v) The balances in the ledger accounts show the net effect of transactions during a particular period in various accounts.
(vi) The personal accounts give the net amount due to creditors and the net amount due from debtors, real accounts show the values of assets and nominal accounts will show sources of incomes and expenses.
(vii) The financial statements can be prepared from the ledger balances.