1. Posting Journal Entries to General Ledger Accounts
Chapter 7 $
Posting Journal Entries to General Ledger Accounts $
Making Accounting Relevant
Every business completes business transactions daily. Think about the various areas of a business, such as the different departments in a department store or a home supply store. $ $
Choose one business in your area. What accounts would be necessary for the chart of accounts for that business?

2. $ $ $ $ Section 1 The General Ledger What You’ll Learn Chapter 7
The purpose of the general ledger.
How to open accounts in the general ledger. $ $

3. $ $ $ $ Why It’s Important Key Terms Chapter 7 general ledger
Section 1 The General Ledger (con’t.) $
Why It’s Important
You examine the ledger to review how business transactions affect each account. $ $
Key Terms
general ledger
ledger account form $

4. $ $ $ $ Setting Up the General Ledger Chapter 7
Section 1 The General Ledger (con’t.) $
Setting Up the General Ledger
In a manual accounting system, the accounts used by a business are kept on separate pages or cards. These pages or cards are kept together in a book or file called a general ledger. $ $ $

5. $ $ $ $ The Four-Column Ledger Account Form Chapter 7
Section 1 The General Ledger (con’t.) $
The Four-Column Ledger Account Form $ $ $

6. $ $ $ $ Opening an Account with a Zero Balance Chapter 7
Section 1 The General Ledger (con’t.) $
Opening an Account with a Zero Balance $
(1) Write the account name at the top of the ledger account form.
(2) Write the account number on the ledger account form. $
1 2 $

7. $ $ $ $ Opening an Account with a Balance Chapter 7
Section 1 The General Ledger (con’t.) $
Opening an Account with a Balance $
(1) Write the account name at the top of the ledger account form.
(2) Write the account number on the ledger account form. $ $

8. $ $ $ $ Opening an Account with a Balance (con’t.) Chapter 7
Section 1 The General Ledger (con’t.) $
Opening an Account with a Balance (con’t.) $
(3) Enter the complete date (year, month, and day) in the date column.
(4) Write the word “Balance” in the Description column. $ $

9. $ $ $ $ Opening an Account with a Balance (con’t.) Chapter 7
Section 1 The General Ledger (con’t.) $
Opening an Account with a Balance (con’t.)
(5) Place a check mark () in the Posting Reference column to show the amount entered on this line is not being posted from a journal.
(6) Enter the balance in the appropriate balance column of the ledger account form. $ $ $

10. $ $ $ $ Check Your Understanding Chapter 7
Section 1 The General Ledger (con’t.) $
Check Your Understanding $
1. List the steps involved in opening an account with a zero balance.
2. List the steps involved in opening an account with a balance. $ $