Review HST recoverable – tax you paid for purchases related to business HST payable - tax you charge customers We analysed our transactions using HST recoverable & HST payable and put them into the general journal

Captain Panther Inc. General Journal Page 1   Date Particulars P.R. Debit Credit 1 Nov Bank - 2 J. Stewart, Capital 3 To record the start of a Business 4 5 Equipment 6 HST Recoverable 9 7 8 To record the purchase of equipment for cash 10 50 11 Fees Earned 12 HST Payable 13 To record a service provided for cash

7.1 Posting

What is POSTING? The process of transferring information from the journal to the ledger

No more T-accounts!! This is what the General Ledger will now look like Account: No: Date Particulars P.R.   Debit Credit DR CR Balance

Let’s Try It! Captain Panther Inc. General Journal Page 1 Date   Date Particulars P.R. Debit Credit 1 Nov Bank - 2 J. Stewart, Capital 3 To record the start of a Business 4 5 Equipment 6 HST Recoverable 9 7 8 To record the purchase of equipment for cash 10 50 11 Fees Earned 12 HST Payable 13 To record a service provided for cash

1 2 3 6 4 5 Bank 105 1 J1 1 - DR 1 - 1 J1 3 3 9 - 6 6 1 - 3 Cash Sales Record NEW balance & indicate DR/CR 1 Account Name Account # 2 Post-reference (journal page #) 3 6 Account: No: Date Particulars P.R.   Debit Credit DR CR Balance DR   DR  Bank 105 4 1 Opening Balance J1 1 - DR 1 - NOV DATE 1 J1 3 3 9 - 6 6 1 - Cheque Copy 3 Cash Sales J1 2 8 2 50 9 4 3 50 50 Source Document Name Record the amount on the appropriate side 5

Cross-referencing A) record the journal page # (i.e. J1) in the LEDGER PR column & B) record the ledger account # in the PR column in the JOURNAL

Captain Panther Inc. General Journal Page 1   Date Particulars P.R. Debit Credit 1 Nov Bank 105  - 2 J. Stewart, Capital 3 To record the start of a Business 4 5 Equipment 6 HST Recoverable 9 7 8 To record the purchase of equipment for cash 10 50 11 Fees Earned 12 HST Payable 13 To record a service provided for cash

Complete the rest of the ledger entries on your page!

Calculate Remittance or Refund HST Payable HST Recoverable Bank 32.50 39.00 39.00 32.50 32.50 32.50 39.00 39.00 6.50

Journalize DR CR Bank 6.50 HST Payable 32.50 HST Recoverable 39.00

Forwarding Procedure: Process of transferring final balance to a new page when existing page is complete or full Record ‘FORWARD’ on last entry & on new page to show it comes from another location Do exercise #3 on page 234 (t), 160 (w) to see it in action!

The Accounting Cycle Transaction occurs Trial Balance Balance Sheet Record to General Journal Transaction occurs Post to General Ledger Trial Balance Income Statement Balance Sheet

Homework: Complete exercises 3 p. 234 (t), p. 160 (w) & ex. 2 p. 234 (t) p. 156-159 (w) Complete I/S & Balance sheet as well use pages 108 - 109 (w)