1. BAF3M Accounting
Chapter 7 – Posting

2. The Accounting Cycle Source documents Transaction Analysis
Record in Journal
Post to
Ledger
Financial Statements
Adjusted Trial Balance
Record & Post Adjusting Entries
Unadjusted Trial Balance
The Accounting Cycle
Close Temporary Accounts
Post-Closing Trial Balance

3. 7.1 Posting
You now know both the ledger and the journal, but now it’s time to use them more ‘formally’ as accountants do
7.1 is a relatively large subsection …
Balance column account
Opening an account
Steps in the Posting process
Cross-Referencing
Correcting Errors
Forwarding Procedure

4. 7.1 Posting The Balance Column Account Has three money columns
Page 228
The Balance Column Account
Has three money columns
One for Debits
One for Credits
One for the Balance

5. 7.1 Posting
Opening an Account  preparing an account page and placing it in its proper place in the ledger

6. 7.1 Posting Formal Posting
“POSTING”  the process of transferring information from the journal to the ledger
6 step process on p. 229
5 steps in ledger, 1 in journal
As intro activity – do a cut up and match in groups … for tactile and visual learners

7. 7.1 Posting Turn to proper account in ledger
Record 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. Write the letter “J” in front of the page number (ex “J14”)
Cont 

8. 7.1 Posting
4) Record the amount. Debit amounts go in debit column, credit amounts in credit column
5) Calculate and enter the new account balance in the balance column, indicate whether it is a debit or credit balance in the DR/CR column
6) In the journal: record the account number to which the posting was made in the PR column on the same line as the amount being posted

9. 7.1 Posting
Follow these steps through the visual examples in Figure 7.3 starting on p. 230

10. 7.1 Posting

11. 7.1 Posting Cross Referencing (p. 231)
The recording of the journal page number in the account and the recording of the account number in the journal
Three reasons:
Account entries can be traced back to the journal
Journal entries can be traced to their accounts
If the posting process is interrupted it is easy to tell where to begin again

12. 7.1 Posting Correcting Errors in the Books
Accounts don’t just “erase”  suspicion
So other methods have been developed
Two types:
Errors found Immediately
Errors found Later

13. 7.1 Posting Errors Found Later Usually requires an offsetting entry
This entry is called a correcting journal entry, its purpose is to cancel the effect of an error
Explained well on p. 235

14. 7.1 Posting Forwarding Procedure
Forwarding is just the process of continuing and account or journal on a new page by carrying forward the date and the balance from the completed page

15. 7.2 Trial Balance Out of Balance
If your trial balance is off, no need to worry
Quick tests to detect a single error…
1) if balance difference is a multiple of 10
Likely an addition error
2) check both the ledger and the journal to see if the trial balance difference is equal to an amount entered in the ledger or the journal
Likely an amount was omitted or added twice
3) Divide the trial balance difference by two
A DR may have been posted as a CR or vice versa
4) If the trial balance difference is a multiple of 9
Likely a transposition error or decimal point error