CHP 6 - Notes Students are required to take at least 4 pages of Cornell Notes from CHP 6. 4 pages = 100%. Receive extra credit for every page over 4.

Posting to a General Ledger Chapter 6 Posting to a General Ledger Content Objective: - Define accounting terms related to posting from a journal to a general ledger. - Prepare a chart of accounts for a service business organized as a proprietorship. - Post amounts from a journal to a general ledger.

JOURNAL Supplies 130 Aug 2 1 500 500 Aug 23 1 100 600 Account Supplies 130 What happens to all this info after its posted to the journal? Information or data is taken from the journal and separated and posted to a general ledger account. Aug 2 1 500 500 Aug 23 1 100 600

Posting to a General Ledger Chart of Accounts What do you need before you can post to a general ledger? A Chart of Accounts (100) ASSETS (400) REVENUE 110 410 120 What is a Chart of Accts? 130 A list of accts titles and numbers showing the location of each account in a ledger. 140 (500) EXPENSES What are the main 5 divisions used in the Chart of Accts? 510 520 530 (200) LIABILITIES 540 How are the main Accts numbered? 210 220 230 What accounts go where? (300) OWNERS EQUITY The Accounts are alphabetical in each section and then numbered in multiples of 10. 310 Each Acct on this sheet means it will have its own General Ledger sheet. CASH Any Acct Owed How are these accounts arranged and numbered? 320 Petty Cash Owner, Capital Supplies Owner, Drawing Prepaid Insurance All Sales All Expenses What does each of these accts represent? SUMMARY

Posting to a General Ledger Opening an Acct Step 1 Step 2 Opening an account Writing an account title and number on the heading of an account. CASH 110 How many General Ledger Accts will there be? A General Ledger Acct is created for each account listed on a chart of account. What are the steps to opening a General Ledger Account? Step 1: Write the Acct Title after the word Account in the heading. Step 2: Write the Acct Number after the word Acct. No.

Posting to a General Ledger Journal to Ledger Posting Transferring information from a journal entry to a ledger account. How many different types of main accounts are found on a journal sheet? 1. General Amount Columns. 2. Special Amount Columns.

Posting to a General Ledger Journal to Ledger How do I know which acct to place the General Debit and Credit Accts in? Use the Acct Title in the journal to locate the General Ledger Accts. What else can be helpful when deciding which General Ledger Acct to post to? The Chart of Accts has a list of all the General Ledger Accounts. EXAMPLE: Posting to Accts. Example 1 - McBroom, Capital Example 2 - Utilities Expense Example 3 - Staples Office Supplies Example 4 - Supplies

Posting to a General Ledger Journal to Ledger What are the steps for posting from a Journal to a General Ledger? The Account Title and Account Number should already be on the General Ledger Sheet. 1. Write the Date 2. Write the journal page number in the Post. Ref. column of the Ledger 3. Either write the Debit or Credit in the amount column. 4. Write the new balance in the Debit or Credit column. Keep a running balance in the balance columns. 5. Return to the journal and write the account number in the post reference.

Posting to a General Ledger Journal to Ledger 130 What is the purpose of the Post. Ref. on the Journal Sheet? 1. An entry in an account can be traced to its source in a journal. 2. An entry in a journal can be traced to where it was posted in an account. Supplies 130 3. If posting is interrupted, the accounting personnel can easily see which entries in the journal still need to be posted. AUG. 2 1 500 500

Steps for posting from a Journal to a General Ledger Locate your chart of Accounts Step 2: Set up General Ledger Acct Titles and Acct Numbers for Chart of Accounts Step 3: Journalize each transaction Prove the journal (Total it and double underline) Step 4: Post from Journal to General Ledger Step 5: Step 6: Prove Cash Which accounts are posted individually and which are not? General Debit and General Credit are posted individually. Forwarding Totals and Special Amount columns are not posted individually.

Posting to a General Ledger What are examples of forwarding totals and special amount columns? Forwarding Totals – Carried Forward, Brought Forward. Special Amount Columns – Sales Credit, Cash Debit, and Cash Credit. How do you post Forwarding Totals to the General Ledger? Forwarding Totals are not posted to the General Ledger. Only check marks are placed in the Post. Ref. box to show they are already accounted for. How do you post Special Amount Columns to the General Ledger? Sales Credit, Cash Credit, and Cash Debit are not posted individually. Only the Totals are posted. That is why each time a sales transaction is journalized a check mark is placed in the Post. Ref. box.

Posting to a General Ledger Is there anything else we do to the General Credit and Debit? Check marks in parenthesis, are placed below both the General Debit and General Credit Total Amounts to show the Totals are not to be posted. How are Special Acct Columns posted to the General Ledger? Sales Credit, Cash Debit, and Cash Credit “TOTALS” are all posted to their corresponding General Ledger Accounts.

Posting to a General Ledger How are Post. Ref. numbers posted to the journal for Special Amount Columns? The Account Numbers from the General Ledger are posted in parenthesis under the Total amounts as the Post. Ref.

(410) (110) (110) Aug. 31 2 14291 14291 Aug. 31 2 6004 8287 Aug. 31 2 4291 4291