Chpt 7 – Posting to the Ledger Recall T- Accounts. These were a _______ _______ where we could post transactions as they occurred. Now that we have learned how to journalize transactions we need to determine the balance of our accounts by posting to a ledger (instead of t-accounts)

Where are we in the Accounting Cycle? 1. Transaction Occurs (Source Document) 2. Transaction Recorded in Journal 3. _____________________________ 4. ______________________________ 5. Worksheet Prepared & Adjusting Entries completed. 6. Financial Statements Prepared. 7. Ledger Accounts Adjusted & Closed 8. Closing Trial Balance Prepared.

A Ledger Account A proper ledger is called the balance column account. It has 3 columns: 1. One for amounts 2. One for amounts 3. One for the _________ ***one column for balance increasing, one for balance decreasing and one for the final balance.

Posting Posting is the process__________ ___________________________ Every individual amount recorded in the journal

5 Steps for Posting in the Ledger 1. Turn to the proper account in the 2. ______________ Use the next unused line in the account. 3. Record the ____________of the ________ (where the transaction was recorded) in the P.R. column. Ex –_______________ 4. Record the in the proper column –. 5. and enter the new account balance in the. Indicate whether the balance is a.

One step in the Journal Now that you are done with the ledger, you must go back to the journal and record that you have posted that transaction. 1. In the Journal. Enter this in the (P.R.) column. Now let’s see an example!!!

Accounting data in this journal entry has not yet been transferred to the ledger An Example of Posting

Step 1: Step 1

Step 2: Step 2

Step 3: Step 3

Step 4 - Step 4

Step 5: Step 5

Step 6: ***Now you will do the same for Bank & A/P Step 6

Cross-Referencing Cross-referencing is the recording of the journal page number in the account and the recording of the account number in the journal. 3 reasons we do this: 1. Entries can be ______________ 2. Entries can be _____________. 3. It is easy to tell where we have__________ ____and where we need to___________

Forwarding Forwarding is the process of continuing an account on a new page by_______________ ____________________________________ On the last line of the ledger write in the particulars column. On the new page for that account write the previous date and balance and state again,_______________. See pg. 232 for example.