Chapter 5 – Posting to a General Ledger Accounting I Chapter 5 – Posting to a General Ledger

TERMS REVIEW ledger general ledger account number file maintenance opening an account Lesson 5-1, page 102

TERMS REVIEW Ledger A group of accounts. Lesson 5-1, page 99

TERMS REVIEW General Ledger A ledger that contains all accounts needed to prepare financial statements. Lesson 5-1, page 99

TERMS REVIEW Account Number The number assigned to an account. Lesson 5-1, page 99

TERMS REVIEW File Maintenance The procedure for arranging accounts in a general ledger, assigning account numbers & keeping records. Lesson 5-1, page 100

TERMS REVIEW Opening An Account Writing an account title & number on the heading of an account. Lesson 5-1, page 101

RELATIONSHIP OF A T ACCOUNT TO AN ACCOUNT FORM Lesson 5-1 2/24/2019 RELATIONSHIP OF A T ACCOUNT TO AN ACCOUNT FORM Lesson 5-1, page 98

CHART OF ACCOUNTS Lesson 5-1, page 99

ACCOUNT NUMBERS Lesson 5-1, page 99

OPENING AN ACCOUNT IN A GENERAL LEDGER 1 2 1. Write the account title. 2. Write the account number. Lesson 5-1, page 101

Work Together & On Your Own – Page 102

POSTING AN AMOUNT FROM A GENERAL DEBIT COLUMN Lesson 5-1 2/24/2019 POSTING AN AMOUNT FROM A GENERAL DEBIT COLUMN 2 1 3 5 4 1. Write the date. 2. Write the journal page number. 3. Write the debit amount. 4. Write the new account balance. 5. Write the account number in the Post. Ref. column of the journal. Lesson 5-2, page 103

POSTING A SECOND AMOUNT TO AN ACCOUNT 2 1 3 5 4 1. Write the date. 2. Write the journal page number. 3. Write the debit amount. 4. Write the new account balance. 5. Write the account number in the Post. Ref. column of the journal. Lesson 5-2, page 104

POSTING AN AMOUNT FROM A GENERAL CREDIT COLUMN 2 5 1 3 4 1. Write the date. 2. Write the journal page number. 3. Write the credit amount. 4. Write the new account balance. 5. Write the account number in the Post. Ref. column of the journal. Lesson 5-2, page 105

Work Together & On Your Own – Page 106

CHECK MARKS SHOW THAT AMOUNTS ARE NOT POSTED Check mark indicates that amounts ARE NOT posted individually. Check marks indicate that general amount column totals ARE NOT posted. Lesson 5-3, page 107

POSTING THE TOTAL OF THE SALES CREDIT COLUMN 2 3 1 5 4 1. Write the date. 2. Write the journal page number. 3. Write the column total in the Credit amount column. 4. Write the new account balance. 5. Return to the journal and write the account number in parentheses. Lesson 5-3, page 108

POSTING THE TOTAL OF THE CASH DEBIT COLUMN 2 1 3 5 4 1. Write the date. 2. Write the journal page number. 3. Write the column total in the Debit amount column. 4. Write the new account balance. 5. Return to the journal and write the account number in parentheses. Lesson 5-3, page 109

POSTING THE TOTAL OF THE CASH CREDIT COLUMN 2 1 3 5 4 1. Write the date. 2. Write the journal page number. 3. Write the column total in the Credit amount column. 4. Write the new account balance. 5. Return to the journal and write the account number in parentheses. Lesson 5-3, page 110

Work Together & On Your Own – Page 111

JOURNAL PAGE WITH POSTING COMPLETED Lesson 5-4, page 112

MEMORANDUM FOR A CORRECTING ENTRY Lesson 5-4, page 116

JOURNAL ENTRY TO RECORD A CORRECTING ENTRY November 13. Discovered that a payment of cash for advertising in October was journalized and posted in error as a debit to Miscellaneous Expense instead of Advertising Expense, $120.00. Memorandum No. 45. Miscellaneous Expense Advertising Expense 1. Which accounts are affected? Advertising Expense Miscellaneous Expense Debit Normal Balance 120.00 2. How is each account classified? Advertising Expense is an expense account. Miscellaneous Expense is an expense account.  3. How is each classification changed? Expenses are increased. Expenses are decreased. Debit Normal Balance 120.00  4. How is each amount entered in the accounts? Expense accounts increase on the debit side. Expense accounts decrease on the credit side. Lesson 5-4, page 116

JOURNAL ENTRY TO RECORD A CORRECTING ENTRY 2 4 1 3 1. Write the date. 2. Debit Advertising Expense. 3. Credit Miscellaneous Expense. 4. Write the source document number. Lesson 5-4, page 116

Work Together & On Your Own – Page 117