The correct answer is: D. Written on appropriate side of two accounts.
Posting is the process of recording a transaction in the accounting records. It involves recording the transaction in the appropriate accounts, and the appropriate amounts in each account. The two accounts that are affected by a transaction are the account that is debited, and the account that is credited. The debited account is the account that is increased, and the credited account is the account that is decreased.
For example, if a company purchases supplies on account, the following accounts would be affected:
- Supplies: Debit
- Accounts Payable: Credit
The supplies account would be debited because the company’s inventory of supplies has increased. The accounts payable account would be credited because the company now owes money to its supplier.
The posting process is important because it ensures that all transactions are recorded in the accounting records. This is necessary for preparing financial statements, and for tracking the financial performance of a business.
Here is a brief explanation of each option:
- Option A: Written in two accounts. This is the correct answer. As explained above, posting involves recording a transaction in two accounts.
- Option B: Written in debit side of related account. This is not always the case. For example, if a company purchases supplies on account, the supplies account would be debited, but the accounts payable account would be credited.
- Option C: Written in credit side of related account. This is not always the case. For example, if a company purchases supplies on account, the supplies account would be debited, but the accounts payable account would be credited.
- Option D: Written on appropriate side of two accounts. This is the correct answer. As explained above, posting involves recording a transaction in two accounts. The appropriate side of each account depends on the type of transaction.