1. Posting to the Ledger
7.1

2. To-date, we have used a T-account or simple two-sided ledger account.
The most commonly used ledger account is the balance column account.
It has three money columns:
one for debit amounts
one for credit amounts
one that shows the account balance. 2

3. An accounting entry usually affects an item that does not have an account in the ledger.
Opening an account means you need to prepare an account page and place it in the ledger. 3

4. Go to an unused account page;
To open an account you:
Go to an unused account page;
Write the name for the new account at the top of the page. The account name is known as the account title and will be written on the back of the page as well.
Write the account number (from the chart of accounts).
Insert new account in its proper place in the ledger. 4

5. Each entry is recorded by date, refer to the date conventions used in the General Journal

6. The account name and number are recorded at the top of every
ledger account.
This information is available
from the chart of accounts.
Particulars column is used for
additional explanations.
Not often used as particulars
can be obtained from the
General Journal.
The balance is calculated and
shown after each entry.
The “DR./CR.” column indicates
the type of balance. This may
change from entry to entry.
The debit and credit columns
form the core of the account.
Record the debit/credit from the
journalized transaction in the
appropriate column.
The posting reference (PR)
Records the page number of the
journal (where the transaction
was journalized). Write the
letter “J” and the page number.
2007 6

7. These entries are then transferred, or posted, to the ledger.
In Chapter 6, you learned that each accounting entry is first recorded in the journal (a.k.a. journalizing).
These entries are then transferred, or posted, to the ledger.
Posting is the process of transferring information from the journal to the ledger.
Every individual amount recorded in the journal must be posted separately. 7

8. For each individual amount entered in the journal, you must follow six steps.
Five of the steps are performed in the ledger; one is performed in the journal. 8

9. Turn to the proper account in the ledger.
Record the date. Use the next unused line in the account.
Record the page number of the journal in the posting reference (PR) column of the account.
Record the amount in the appropriate debit or credit column. 9

10. Calculate and enter the new account balance in the balance column
Calculate and enter the new account balance in the balance column. Indicate whether it is a debit (DR) or credit (CR) balance.
In the journal, record the account number to which the posting was made. Enter this in the posting reference (PR) column on the same line as the amount being posted. 10

11. Step 3: Record the journal page #.
2007
Step 3: Record the journal page #.
J14
Step 6: Record account number in journal.
110
110
Step 1: Select proper account
Step 2: Record the date. 14
Aug.
Step 4: Record $’s in proper col.
Step 5: Record new balance and indicate if it is DR or CR. DR
2007
Aug. 14
J14 DR 11

12. Step 3: Record the journal page #. Step 2: Record the date.
2007
110
Step 3: Record the journal page #.
J14
Step 2: Record the date. 14
Step 6: Record account number in journal.
101
101
Step 1: Select proper account
Step 4: Record $’s in proper col.
Step 5: Record new balance and indicate if it is DR or CR. DR
2007 14
J14 DR 12

13. Step 3: Record the journal page #. Step 2: Record the date.
2007
110
101
Step 3: Record the journal page #.
J14
Step 2: Record the date. 14
Aug.
Step 6: Record account number in journal.
212
212
Step 1: Select proper account
Step 4: Record $’s in proper col.
Step 5: Record new balance and indicate if it is DR or CR. CR
2007
Aug. 14
J14 CR 13

14. 14

15. 2007
Cross-Reference: A posting reference confirms that the entry has been posted to the ledger. No posting reference in the journal indicates that the entry has not yet been posted.
110
101
212 15

16. Cross-Referencing: Makes it easy to trace back to the General Journal.
Entries in the journal can be followed through to the ledger.
If the posting process is interrupted, it is easy to see what still needs to be posted. 16

17. Accountants do not erase mistakes.
Errors found immediately are neatly crossed through and the correction is written above.
Errors found later can be corrected by means of an accounting entry. 17

18. Forwarding is the process of continuing an account, or a journal, on a new page by carrying forward the date and the balance from the previous page. 18

19. 2. Journalize the transactions
1. Analyse transactions
2. Journalize the transactions
5. Journalize and post
adjusting entries
6. Prepare adjusted trial balance
7. Prepare financial statements
8. Journalize and post closing entries
9. Prepare post-closing trial balance
3. Post to ledger accounts
4. Prepare a trial balance 19