Chapter 5-Posting to A General Ledger

Journal Permanent record of debit and credits with transactions listed in chronological order. Disadvantage- does not show all the changes in a single account.

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

General Ledger Defined- A ledger that contains all accounts needed to prepare financial statements. Organized using numbers assigned to accounts called ACCOUNT NUMBERS.

Lesson 5-1, page 99

Lesson 5-1, page 99

Divisions of a General Ledger (1) Assets (2) Liabilities (3) Owner’s Equity (4) Revenue (5) Expenses (alphabetical order) If the account number was 120 what would the account be? How about 330? 510?

Questions to Think About Why do you think that Encore Music organizes their chart of accounts on page 99 by tens. 100, 110, 120, etc. File Maintenance- the procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current.

File Maintenance Examples 510 Advertising Expense Gasoline Expense (New) 520 Insurance Expense Answer: 515 Gasoline Expense 550 Supplies Expense 560 Utilities Expense Water Expense (new) Answer: 570

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

Today’s Assignment “Work Together 5-1” p. 73 Workbook, 102 Text.

Warm-up “On Your Own 5-1” p. 74 Workbook, 102 Text.

Opening an Account in A General Ledger 1. Write the account title after the word account in the heading. 2. Write the account number after the words Account No. in the heading.

Posting Defined -transferring information from a journal entry to a ledger account. Example- text pg. 103

Posting an Amount from a General Debit Column 1. Write the date in the Date column of the account. 2. Write the journal page number in the Post Ref. Column of the account. 3. Write the debit amount in the debit amount column. 4. Write the new account balance. Previous Balance + Debit Column Amount= New Debit Balance. 5. Return to journal and write the account number in the Post. Ref. Column of the journal.

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

Posting A Second Account All steps are the same except you must add the debit amount to the debit balance column (step 4). See page 104

Posting an Amount from a General Credit Column Same exact steps except amounts are recorded in credit columns……don’t make this seem difficult.

Example of Posting Credit Balance Debit 5000 5000 2000 3000 5000 2000 1000 1000

Warm-up Work Together 5-2 p. 108 Text, 75 WB On Your Own 5-2 p. 108 Text, 79 WB

5-3 Posting Column Totals to a General Ledger

Posting Column Totals Not all journal entries are posted individually. Sales Credit, Cash Debit, and Cash Credit are not posted individually. Instead the totals of the special amount columns are posted. Example page 107

Posting Special Amount Columns Sales Credit Totals- posted as SALES! Cash Debit and Credit Totals-posted in CASH! Where have you seen me?

Steps Involved 1. Date 2. Write Journal Page number in Post. Ref. 3. Write column total in debit or credit column. 4. Write in account balance. 5. Return to journal and write account number in parenthesis.

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

Today’ s Activity Work Together 5-3 p. 75, 77, 78. On Your Own 5-3 p. 79, 81, 82.