1. Quick Review
What are the steps involved in opening an account with a balance?

2. Chapter 7: Section 2
The Posting Process

3. Section Concepts What you will learn? Why it’s important?
The purpose and importance of posting
How often a business posts transactions
The six steps in the posting process
How to compute an account balance
How to show an account with a zero balance
Why it’s important?
Posting brings the records of the business up-to-date. If a business did not post its transactions, the balances in ledger accounts would not be current.

4. The Posting Process
Transferring information from the general journal to individual general ledger accounts
4th step in the accounting cycle
Ideally happens daily to ensure up-to-date information

5. Posting General Journal
Utilities
Repairs
Revenue
Salaries
Posting organizes business transaction details into proper accounts
Summarizes all business transactions so managers can see the cumulative effects on accounts

6. Posting to General Ledger Overview

7. Posting Steps 1. enter the date of the journal entry
2.The description column is left blank, usually
3. Record in the “Post Ref” column where this transaction was journalized
A letter for the journal and the journal page #
General journal—G, page 1 G1

8. Posting Steps
4. enter the debit amount in the debit column of the ledger account
5. Compute and record the new account balance in the appropriate balance column.
Every amount posted will either increase or decrease the balance of that account

9. Posting Steps
6.Return to the journal and record in the “Post Ref” column the ledger account number of that account.
Be sure it is entered on the same line as the debit entry
7. Repeat steps 1-6 for the credit part of the entry.

10. Posting Process

11. Computing a New Account Balance
Each time you post to an account-you calculate the new balance
Debits are added to debits
Credits are added to credits
Debits and credits are subtracted

12. 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

13. 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
Refer to page 163 for an example

14. Showing a Zero Balance in a ledger Account
A line should be drawn across the center of the column where the normal balance would appear.
Refer to page 163 for an example

15. Thinking Critically Explain the purpose for posting.
Explain the process of posting from a journal to a ledger.