1. Chapter 7, Section 2 The Posting Process
What Do You Think?
Why is posting necessary since the transaction is recorded in the general journal?
Glencoe Accounting Unit 2 Chapter 7 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

2. The Posting Process Main Idea You Will Learn
SECTION 7.2
Main Idea
Posting is the process of transferring information from the journal to individual accounts in the ledger.
You Will Learn
how to post transactions to the general ledger.
how to compute account balances.
Glencoe Accounting Unit 2 Chapter 7 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

3. The Posting Process Posting Transactions
SECTION 7.2
Posting Transactions
Journal entries do not show a clear picture of how a business transaction changes an account’s balance. Posting shows the final impact on an account, which is why a ledger is sometimes called a book of final entry:
Posting intervals are determined by the size of the business, and whether the accounting system is computerized or manual.
The posting process always remains the same.
The process is always performed from left to right.
Glencoe Accounting Unit 2 Chapter 7 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

4. The Posting Process Posting to the Roadrunner General Ledger
SECTION 7.2
Posting to the Roadrunner General Ledger
There are six steps required for posting journal entries to a ledger:
1. Enter the date of the journal entry in the Date column.
2. The Description column is usually left blank, but can be used to write in the source document.
3. Enter journal letter and page number in Post. Ref. column.
4. Enter the debit amount in the Debit column.
5. Compute the new account balance.
6. Enter the account number in the general journal Post. Ref. column.
7. Repeat steps 1-6 for the credit part of the journal entry.
Glencoe Accounting Unit 2 Chapter 7 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

5. The Posting Process SECTION 7.2
Glencoe Accounting Unit 2 Chapter 7 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

6. The Posting Process Computing a New Account Balance
SECTION 7.2
Computing a New Account Balance
A new account balance is computed each time a transaction is posted to an account. When the existing account balance is a debit, and
the amount posted is a debit, ADD the amounts.
the amount posted is a credit, SUBTRACT the amounts.
When the existing account balance is a credit, and
the amount posted is a debit, SUBTRACT the amounts.
the amount posted is a credit, ADD the amounts.
Glencoe Accounting Unit 2 Chapter 7 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

7. The Posting Process Computing a New Account Balance
SECTION 7.2
Computing a New Account Balance
A ledger account with several postings.
Glencoe Accounting Unit 2 Chapter 7 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

8. The Posting Process Computing a New Account Balance
SECTION 7.2
Computing a New Account Balance
A ledger account with a zero balance.
Glencoe Accounting Unit 2 Chapter 7 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.