$ $ $ $ Section 2 The Posting Process What You’ll Learn Chapter 7 The purpose and importance of posting. How often a business posts transactions. The six steps in the posting process. How to compute an account balance. How to show an account with a zero balance. $ $ $

$ $ $ $ Why It’s Important Key Terms Chapter 7 posting Section 2 The Posting Process (cont'd.) $ Why It’s Important Posting brings the records of the business up-to-date. If a business did not post its transactions, the balances in ledger accounts would not be current. $ $ $ Key Terms posting

$ $ $ $ The Fourth Step in the Accounting Cycle: Posting Chapter 7 Section 2 The Posting Process (cont'd.) $ The Fourth Step in the Accounting Cycle: Posting To provide a clear picture of how each account is affected by a business transaction, the information in a journal entry is posted to the general ledger accounts. $ $ General Journal $ Utilities Salaries Repairs Revenue

$ $ $ $ Posting from the General Journal to Ledger Accounts Chapter 7 Section 2 The Posting Process (cont'd.) $ Posting from the General Journal to Ledger Accounts $ $ $

$ $ $ $ Computing a New Account Balance Chapter 7 Section 2 The Posting Process (cont'd.) $ Computing a New Account Balance Debit amounts are added together. $ Credit amounts are added together. Debit and credit amounts are subtracted. $ $

$ $ $ $ Check Your Understanding Chapter 7 Section 2 The Posting Process (cont'd.) $ Check Your Understanding $ Explain the process of posting from a journal to the ledger. $ $