1. Accounting Bellwork 3 rd Hour: What is the purpose of the General Ledger?

2. Section 2The Posting Process What You’ll Learn  The purpose and importance of posting.  How often a business posts transactions.  The six steps in the posting process.  How to compute an account balance.  How to show an account with a zero balance. What You’ll Learn  The purpose and importance of posting.  How often a business posts transactions.  The six steps in the posting process.  How to compute an account balance.  How to show an account with a zero balance.

3. Why It’s Important Posting brings the records of the business up-to-date. If a business did not post its transactions, the balances in ledger accounts would not be current. Why It’s Important Posting brings the records of the business up-to-date. If a business did not post its transactions, the balances in ledger accounts would not be current. Section 2The Posting Process (con’t.) Key Terms  posting Key Terms  posting

4. The Fourth Step in the Accounting Cycle: Posting To provide a clear picture of how each account is affected by a business transaction, the information in a journal entry is posted to the general ledger accounts. The Fourth Step in the Accounting Cycle: Posting To provide a clear picture of how each account is affected by a business transaction, the information in a journal entry is posted to the general ledger accounts. Section 2The Posting Process (con’t.) General Journal Utilities Repairs Revenue Salaries

5. Posting from the General Journal to Ledger Accounts Section 2The Posting Process (con’t.)

6. Posting from the General Journal to Ledger Accounts Section 2The Posting Process (con’t.) Never write an account number in the posting reference column of the general journal until after you have posted!!!! Accounts are located in the general ledger in order of their account numbers.

7. Computing a New Account Balance Section 2The Posting Process (con’t.)  Debit amounts are added together.  Credit amounts are added together.  Debit and credit amounts are subtracted.  Debit amounts are added together.  Credit amounts are added together.  Debit and credit amounts are subtracted.

8. Demonstration Problems 7-2 & 7-3

10. 1 160-- G15 50-- 105

11. 1 680-- G15 50-- 105 401

12. 8 2550-- G15 80-- 105 401 101

13. 1 680-- G15 50-- 105 401 101 401 8 760-- G15 80--

14. 8 2550-- G15 80-- 105 401 101 401 29 2660-- G15 110-- 101

15. 1 160-- G15 50-- 105 401 101 401 101 29 50-- G15 110-- 105

16. Problem 7-3

18. 1 2700-- G17 200-- 101

19. 1 _____ G17 200-- 101 108

20. 10 _____ G17 100-- 101 108 207

21. 1 2700-- G17 200-- 101 108 207 101 10 2600-- G17 100--

22. Check Your Understanding ALL of p.164 Section 2The Posting Process (con’t.)