1. POSTING TO THE GENERAL LEDGER
Chapter 4

2. Chapter 4 Goals: Prepare a chart of accounts.
Identify accounting practices related to posting from a journal to a general ledger.
Post separate amounts from a journal to a ledger.
Post column totals from a journal to a general ledger.
Analyze and journalize correcting entries.

3. LESSON 4-1 VOCAB TERMS Ledger – a group of accounts
General ledger – a ledger that contains all accounts needed to prepare financial statements.
Account number – the number assigned to an account.
Opening an account – writing an account title & number on the heading of an account.
File maintenance – procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current.
Liquidity – the ease to which assets are converted to cash

4. The General Ledger
Used to summarize all of the changes in a single account.
The journal is the source of information.
A separate ledger page is used for each account.

5. General Ledger & T-accounts

6. Opening an Account Step 1 – write the account title
Step 2 – write the account number
Accounts are kept in number order according to classification.

7. Chart of Accounts Created using a ledger - A group of accounts.
3 digits are most commonly used, except for corporations use 4 digit #’s.
5 general ledger divisions:
Assets - 100’s – in order of liquidity
Liabilities - 200’s – alphabetical order
OE – 300’s – alphabetical order
Revenue – 400’s – alphabetical order
Expenses – 500’s – alphabetical order

8. Account Numbers 3 digits Assigned in by 5’s or 10’s.
1st digit – general ledger division
2nd & 3rd digits – location within the general ledger
Assigned in by 5’s or 10’s.
Helps with file maintenance.

9. Chart of Accounts