Chapter 7: Posting to the Ledger Log into Quia.com College Board

What you need to know : New Open ledger accounts New Execute posting procedures Create a Trial Balance Find and correct errors New New

Steps to Opening an Account in the Ledger With a Zero Balance Write the account name at the top of the ledger account form Write the account number on the ledger account form

Opening an Account with a Balance Write the accounting name at the top of the ledger account form Write the account number on the ledger account form Enter the complete date (year, month, and day) in the date column.

Opening an Account with a Balance (continued) Write the word “BALANCE” in the Description column. Place a check mark () in the Post Reference Column to show the amount entered on this line is not being posted from a journal.

Opening an Account with a Balance (continued) 6. Enter the balance in the appropriate balance column of the ledger account form.

Opening an Account with a Balance (continued) Usually assets, expenses, and Owner’s Withdrawals have a Debit balance. Where as Liabilities, Owner’s Capital , and revenue accounts have a credit balance

Posting Process Generally Speaking ~ copy from the journal Enter the date of the journal entry in the Date Column of the ledger account. Note: same format as the journal entry. Description Column is left blank – unless it is a special entry; Correcting Error, Balance, Adjusting Entry, or Closing Entry

Posting Process (continued) Post Reference Column enter the journal letter and the page number General Journal = G + page number Special Journals = next semester Enter the debit amount in the Debit Column of the ledger account

Posting Process (continued) Compute and record the new account balance in the appropriate balance column. Every amount posted will either increase or decrease the balance of that account. REMEMBER TOTALING RULES : Debit & Debit = adding Credit & Credit = adding Debit & Credit = subtracting

Posting Process (continued) Return to the journal and in the Post Reference Column enter the ledger account number of the amount you just posted the debit part of the journal entry. Repeat steps 1-6 for the credit entry

Must I Post in that Order? YES

Why Mrs. Abel? Because I Said So…

The True Reason is… By following this process you will be able to locate where you stopped And trust me…. You will need to know where you left off for most of these problems will not finish in one class period.

Computing New Balances: Remember NEW Rule: DEBIT & DEBIT = CREDIT & CREDIT =

Computing New Balances: Remember that Rule: DEBIT & CREDIT = Opposite words you subtract (basic math opposite signs you subtract)

Example of Debit Entries with Debit Balances: Debit Entries from the General Journal Added to Balance Increases (dr + dr) Notice: the balance is only on one side DR & DR = an increase in the balance

Example of Credit Entries with Debit Balances: Credit Entries from the General Journal Decreased the Balance Increases (cr & dr) Notice: the balance is only on one side CR & DR = decreases the balance

General Ledger Set Up: Account Name Account Number Post Reference: Used to indicate where the information came from… G = General Journal # = page number DATE: month only written once 1 time Date of the month each time… as shown

General Ledger Set Up: Entries from the General Journal Just copied … Balance is ONLY ON ONE SIDE 1