Posting to a General Ledger Chapter 5 Posting to a General Ledger

Journals do not show, in one place, all the changes in a single account. Therefore they need to be posted to their individual accounts.

Vocabulary Ledger – a group of accounts General Ledger – a ledger that contains all accounts needed to prepare financial statements. Account number – the number assigned to an account. File maintenance – the procedure for arranging accounts in a general ledger, assigning account numbers, and keeping record current. Opening an account – writing an account title and number on the heading of an account.

RELATIONSHIP OF A T ACCOUNT TO AN ACCOUNT FORM Lesson 5-1, page 98

CHART OF ACCOUNTS Lesson 5-1, page 99

ACCOUNT NUMBERS Assets Liabilities Owner’s Equity Revenue Expenses Lesson 5-1, page 99

Read the bottom of page 99 and page 100 for a better understanding of account numbers

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

Complete 5-1 Work together and on your own

Vocabulary Posting – Transferring information from a journal entry to a ledger account. Two Rules of posting Separate amounts in a journal’s general amount columns are posted individually to the account written in the Account Title column. Separate amounts in a journal’s special amount columns are not posted individually. Instead the totals are posted.

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

Post. Ref. Post. Ref. Columns serve three purposes: An entry in an account can be traced to its source in a journal. An entry in a journal can be traced to where it was posted in an account. If posting is interrupted, the accounting personnel can easily see which entries in the journal still need to be posted.

Complete 5-2 Work Together and on your own

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 TOTAL OF 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

5-3 Work together and on your own

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 Exp/ Miscellaneous Exp Debit Normal Balance 2. How is each account classified? Advertising Expense is an expense Miscellaneous Expense is an expense 120.00  3. How is each classification changed? Expenses increased/Expenses 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

5-4 on your own and work together