1. Chapter 8 – Posting to General Ledger Accounts
Learning Outcome
This chapter shows how to post journal entries to the general ledger accounts and to prepare a Trial Balance.
Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Introductory Accounting 2r, by David Willis
By Kaye Watson

2. KEY TERMS Accounts payable (also known as creditors)
Accounts receivable (also known as debtors)
Control accounts
Trial Balance
Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Introductory Accounting 2r, by David Willis
By Kaye Watson

3. GENERAL LEDGER ACCOUNTS
Journal totals posted to ledgers to:
summarise
classify information
Facilitate ease of:
locating information
extracting information
Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Introductory Accounting 2r, by David Willis
By Kaye Watson

4. TRANSACTION FLOWCHART
Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Introductory Accounting 2r, by David Willis
By Kaye Watson

5. DOUBLE ENTRY RULES DEBIT SIDE (DR) CREDIT SIDE (CR) ASSETS Increases
Decreases
EXPENSES
Increases
Decreases
EQUITY
Decreases
Increases
REVENUE
Decreases
Increases
LIABILITIES
Decreases
Increases
Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Introductory Accounting 2r, by David Willis
By Kaye Watson

6. DOUBLE ENTRY RULES cont…
Debit
Credit
ASSETS
EXPENSES
Increases
Decreases
Debit
Credit
EQUITY
REVENUE
LIABILITIES
Decreases
Increases
Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Introductory Accounting 2r, by David Willis
By Kaye Watson

7. SUMMARY OF DOUBLE ENTRY RULES
Account Balance
Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Introductory Accounting 2r, by David Willis
By Kaye Watson

8. ACCOUNTS RECEIVABLE CONTROL ACCOUNT
Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Introductory Accounting 2r, by David Willis
By Kaye Watson

9. ACCOUNTS PAYABLE CONTROL ACCOUNT
Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Introductory Accounting 2r, by David Willis
By Kaye Watson

10. TRIAL BALANCE Ensures ledgers are balanced
Every debit has corresponding credit
Lists all general ledger accounts, with balances, in numerical order
Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Introductory Accounting 2r, by David Willis
By Kaye Watson

11. TRIAL BALANCE cont…
Separate columns for debit balances and credit balances show if total debits equal total credits
Control accounts, not subsidiary accounts, appear in Trial Balance
‘Nil’ balances usually not included
Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Introductory Accounting 2r, by David Willis
By Kaye Watson

12. CHECKLIST FOR POSTING FROM JOURNALS TO LEDGER ACCOUNTS
Postings to the ledger
Cash receipts
Bank column total debited to the Cash at bank account.
All individual amounts or the total of each column (e.g. Accounts receivable, cash sales and GST payable) are credited to the relevant account.
Debit Discount allowed account, credit the Accounts receivable control account (unless it is already in the total of Accounts receivable).
Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Introductory Accounting 2r, by David Willis
By Kaye Watson

13. CHECKLIST FOR POSTING FROM JOURNALS TO LEDGER ACCOUNTS cont…
Cash payments
Bank column total credited to the Cash at bank account.
All individual amounts, or the total of each column (e.g. Accounts payable, cash purchases and GST input), are debited to the relevant account.
Debit the Accounts payable control account (unless it is already in the total of Accounts payable), credit Discount revenue account.
Sales dissection
Debit the Accounts receivable control account.
Credit sales column total to the Sales account, GST column to GST payable account and other sales (e.g. assets) to the relevant account.
Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Introductory Accounting 2r, by David Willis
By Kaye Watson

14. CHECKLIST FOR POSTING FROM JOURNALS TO LEDGER ACCOUNTS cont…
Purchases dissection
Debit the purchases column total to the Purchases account , the GST column to the GST input tax credits account, and the asset purchases and expenses on credit to the relevant account.
Credit the Accounts payable control account.
General
Post it exactly as stated (e.g. writing off bad debts incorporating GST).
Debit bad debts and debit GST payable.
Credit the Accounts receivable control account.
Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Introductory Accounting 2r, by David Willis
By Kaye Watson

15. GST CALCULATION
Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Introductory Accounting 2r, by David Willis
By Kaye Watson