The General Ledger 4 Post to the ledger The 4 th step of the accounting cycle is to post to the ledger. 4 Post to the ledger The General Ledger is a book containing a separate page for each business account. The General Ledger serves as a permanent record of financial transactions for the business. Posting to the ledger is the process of transferring information from the General Journal to the individual General Ledger accounts. This is pretty easy. All I really have to do is copy the information that I already have in my general journal.

The Ledger Account Form Let’s take a look at a sample General Ledger. To open a account with a zero balance 1) Write the name of the account on the top of the ledger form. Cash in Bank 2) Write the account number on the ledger form. 101 To open a account with a balance 3) Enter the date in the date column OCT 1 4) Write the word “Balance” in the description column. Balance 5) Place a check mark in the post reference column to show that the amount is not being posted from the General Journal.  6) Enter the balance in the appropriate column. 25,000

Opening Ledger Accounts Account NameAccount #Balance Cash in Bank Accts Rec – Smith ,285 1,235 Account NameAccount #Balance Accts Pay – Jones B. Good, Capital Sales Revenue ,260 0 Cash in Bank OCT 1 Balance  9,285 Accounts Receivable - Smith OCT 1 Balance  1,235 Accounts Payable - Jones OCT 1 Balance  980 B. Good, Capital OCT 1 Balance  27,260 Sales Revenue401

Posting to the General Ledger 2014 OCT 1 G130, OCT 1 G1 30, OCT 3 G1 6, , G1 101

Homework Textbook Page: 156 & 164 Workbook Page: 94 & 95 Problem 7-1, Problem 7-2

Posting – Transaction OCT 1 G125, OCT 1 25, G1

Posting – Transaction OCT 2 G G140025,400

Posting – Transaction OCT 4 G13, G13,00022,000

Posting – Transaction OCT 9 G112, OCT 9 G112,000

Posting – Transaction OCT 11 G G1200

Posting – Transaction 6 12G135011, G135021,650

Posting – Transaction 7 14G120021, G

Posting – Transaction 8 15G11,20023, OCT 15 G11,200

Posting – Transaction OCT 15 G G170022,350

Posting – Transaction OCT 18 G OCT 18 G

Homework Textbook Page: 175 Workbook Page: Problem 7-5

Posting – Transaction OCT 20 G11, G11,4502,650

Posting – Transaction OCT 28 G G212522,225

Posting – Transaction OCT 29 G G260021,625

Posting – Transaction OCT 31 G G250021,125

Homework Textbook Page: Workbook Page: 106 Problem 7-7 General Journal Only

General Ledger Summary 1

General Ledger Summary 2

General Ledger Summary 3

General Ledger Summary 4

General Ledger Summary 5

General Ledger Summary 6 This takes a long time, but it’s pretty easy.

Homework Textbook Page: 175 Workbook Page: 101 – 102 Problem 7-6 Use Trial Balance Handout

Homework Textbook Page: Workbook Page: Problem 7-7 Use Trial Balance Handout

Homework Workbook Page: Problem 7-8

Correcting Entries The method for correcting an error depends on when and where the error is found. There are three types of errors. Error in a Journal entry that has not been posted to the ledger Error in posting to the Ledger when the Journal is correct Error in a Journal entry that has been posted to the Ledger Draw a single line through the incorrect item and write the correction directly above it A correcting entry must be made in the Journal and then posted to the Ledger Let’s make no mistake about it, we should probably take a look at an example of each type of error.

Error in a Journal entry that has not been posted to the Ledger You discover that the check for the rent was actually for $700. Draw a single line through the incorrect item and write the correction directly above it. 700

Error in posting to the Ledger when the Journal entry is correct You discover that the entry on Oct 12 th in the Journal was actually $3,150. Draw a single line through the incorrect item and write the correction directly above it. Don’t forget to also correct the balance. 3,1508,850

Error in a Journal entry that has been posted On Nov 23 rd you write memo #68 indicating that a $200 check to pay the electricity bill on Nov 15 th was incorrectly journalized and posted to the Maintenance Expense account instead of the Utilities Expense account. A correcting entry must be made in the journal and posted to the Ledger. 23G Correcting Entry 23G Correcting Entry

Homework Textbook Page: 177 Workbook Page: Problem 7-9