The Posting Reference column of the journal provides a cross-reference between the:

The Posting Reference column of the journal provides a cross-reference between the:

a. ledger and accounts

b. journal and ledger

c. ledger and financial statements

d. journal and financial statements

Answer: b. journal and ledger

The Posting Reference column existing in the journal is identified as the vital connector between the journal and the ledger in accounting. Original entries of transactions are made in the journal and at later times the transactions are posted in the ledger accounts. Helps in this process the Posting Reference column, which serves as a kind of conversion table between these two basic accounting documents. Usually, an account number or certain code is inserted or written in this column of the journal after the entry has undergone the posting process to the ledger. This reference makes it possible for accountants to trace the entries back and forth between the two documents that is the journal and ledger which also makes it accurate and has an audit trail. It is helpful equipment in ensuring the accuracy of the financial records, helping in identifying errors, and assisting in the checks during audits or financial reconciliations.