2.  The Balance Column Account  So far, we have only considered the simple 2- sided ledger account (debits & credits)  In this chapter, we introduce a balance column account, in addition to debits & credits  Allows the balances to stand out more clearly

3.  When there is no existing account, it is necessary to open an account (for accounting entries)  When opening an account it must be placed in its proper place in the ledger. It will need;  1. an account title  2. a name for which an account is prepared  3. a number for identification

4.  Is the process of transferring information from the journal to the ledger  Every dollar amount recorded in the journal must be posted separately  There are six steps in posting;  1. Record the date  2. Record the page number of the journal in P.R. column of the account. Write the letter J (for Journal)

5.  3. Record the amount, put in the debit or credit column, depending on the transaction  4. Calculate the new balance  5. Enter the new account balance you calculated in Step 4 in the balance column  One step in the Journal  6. Record the number of the ledger account that received the posting (P.R.) column* * Very important, otherwise when trial balance is out of balance, hard to trace

6.  All amounts have to be posted  Follow the six-steps very closely  Don’t look for shortcuts

7.  Is the recording of the journal page number in the account and recording of the account number in the journal. Why?  1. Entries in the journal can be followed to their accounts  2. Entries can be easily be traced to the general journal  3. If posting process is interrupted, it is easy to tell where to begin again. Posted amounts will have the ledger account number entered.

8.  When an account is full, the account is continued on a new account form  In this procedure, the date and the balance from the completed page is carried forward to the new page (see Fig. 7.5, p. 232)