Question 10: Explain the process of posting entries from the cash book to the ledger.

Posting Entries from Cash Book to Ledger:
- The cash book serves as the primary book of entry for all cash transactions.
- Posting entries from the cash book to the ledger is a crucial step in the accounting process.

Steps for Posting Entries:
1. Identify the Entries: Review the cash book to identify all cash transactions that need to be posted to the ledger.
2. Prepare Ledger Accounts: Create ledger accounts for each category of transactions such as sales, purchases, expenses, and income.
3. Determine the Posting Side: Identify whether the entry is a debit or credit based on the nature of the transaction.
4. Transfer the Amount: Copy the details of the entry from the cash book to the appropriate ledger account.
5. Update the Balances: Update the balances in the ledger accounts after posting each entry to ensure accuracy.
6. Verify the Entries: Double-check the entries to avoid any errors or discrepancies in the ledger accounts.
7. Complete the Posting: Once all entries are accurately posted, the ledger accounts will reflect the updated financial position of the business.
By following these steps, the process of posting entries from the cash book to the ledger ensures that all transactions are properly recorded and organized for effective financial management.