1. LESSON 4-1 How do you prepare a chart of accounts?
GREEN

2. RELATIONSHIP OF A T ACCOUNT TO AN ACCOUNT FORM
page 91
Balance columns
Balance-ruled account form
LESSON 4-1

3. CHART OF ACCOUNTS Ledger – group of accounts
page 92
Ledger – group of accounts
General ledger – ledger that contains all accounts needed to prepare financial statements
Account title – name given to an account
Account number – number assigned to an account
Chart of accounts – list of account titles and numbers showing the location of each account in a ledger
LESSON 4-1

4. ACCOUNT NUMBERS
page 92
File maintenance – procedure for arranging accounts in a general ledger, assigning account number, and keeping records current
LESSON 4-1

5. CHART OF ACCOUNTS -Expenses – alphabetical order
page 92
-Expenses – alphabetical order
-Assets – order of liquidity
LESSON 4-1

6. Assigning account numbers
page 92
TechKnow Consulting initially assigns numbers by 10’s, so new accounts can be added easily
Unused account numbers are assigned to new accounts
See example in book – page 93
When an account is no longer needed, it is removed from the general ledger and chart of accounts
Example – if TechKnow Consulting were to buy a building, there would no longer be a need for the Rent Expense acct.
When a new account is added at the end of a ledger division, the next number in a sequence of 10’s is used
Example – Water expense…570
As the number of general ledger accounts increases, a business may use four or more digits for account numbers
LESSON 4-1

7. OPENING AN ACCOUNT IN A GENERAL LEDGER
LESSON 4-1
OPENING AN ACCOUNT IN A GENERAL LEDGER
page 94 1 2
1. Write the account title after the word Account in the heading.
2. Write the account number after the words Account No. in the heading.
LESSON 4-1
GREEN

8. TERMS REVIEW ledger general ledger account number file maintenance
page 95
ledger
general ledger
account number
file maintenance
opening an account
LESSON 4-1

9. LESSON 4-2 How do you post from a General Journal to a General Ledger?
4/25/2017
LESSON 4-2
How do you post from a General Journal to a General Ledger?
Posting – transferring information from a journal entry to a ledger account
GREEN

10. POSTING AN AMOUNT FROM THE DEBIT COLUMN OF A GENERAL JOURNAL
page 96 2 1 3 5 4
1. Write the date.
4. Write the new account balance.
2. Write the journal page number.
5. Return to the journal and write the account number.
3. Write the debit amount.
LESSON 4-2

11. POSTING AN AMOUNT FROM THE CREDIT COLUMN OF A GENERAL JOURNAL
LESSON 4-2
4/25/2017
POSTING AN AMOUNT FROM THE CREDIT COLUMN OF A GENERAL JOURNAL
page 97 2 1 5 3 4
1. Write the date.
4. Write the new account balance.
2. Write the journal page number.
5. Return to the journal and write the account number.
3. Write the credit amount.
LESSON 4-2
GREEN

12. POSTING A DEBIT AMOUNT TO AN ACCOUNT WITH A DEBIT BALANCE
page 98 2 1 3 5 4
1. Write the date.
4. Write the new account balance.
2. Write the journal page number.
5. Return to the journal and write the account number.
3. Write the debit amount.
LESSON 4-2

13. POSTING A DEBIT AMOUNT TO AN ACCOUNT WITH A CREDIT BALANCE
page 99 2 1 3 5 4
1. Write the date.
4. Write the new account balance.
2. Write the journal page number.
5. Return to the journal and write the account number.
3. Write the debit amount.
LESSON 4-2

14. JOURNAL PAGE WITH POSTING COMPLETED
(continued on next slide)
LESSON 4-2

15. JOURNAL PAGE WITH POSTING COMPLETED
LESSON 4-2
4/25/2017
JOURNAL PAGE WITH POSTING COMPLETED
page 100
(continued from previous slide)
LESSON 4-2
GREEN

16. TERM REVIEW
page 101
posting
LESSON 4-2

17. LESSON 4-3 How do you prove cash and make correcting entries?
4/25/2017
LESSON 4-3
How do you prove cash and make correcting entries?
GREEN

18. GENERAL LEDGER WITH POSTING COMPLETED
LESSON 4-3
4/25/2017
GENERAL LEDGER WITH POSTING COMPLETED
page 102
(continued on next slide)
LESSON 4-3
GREEN

19. GENERAL LEDGER WITH POSTING COMPLETED
page 103
(continued on next slide)
LESSON 4-3

20. GENERAL LEDGER WITH POSTING COMPLETED
page 103
(continued on next slide)
LESSON 4-3

21. GENERAL LEDGER WITH POSTING COMPLETED
page 104
(continued on next slide)
LESSON 4-3

22. GENERAL LEDGER WITH POSTING COMPLETED
page 104
(continued on next slide)
LESSON 4-3

23. GENERAL LEDGER WITH POSTING COMPLETED
page 105
(continued on next slide)
LESSON 4-3

24. GENERAL LEDGER WITH POSTING COMPLETED
page 105
(continued from previous slide)
LESSON 4-3

25. PROVING CASH
page 106
Proving cash – determining that the amount of cash agrees with the balance of the cash account in the accounting records
Can be proved at any time but always at the end of a month
Compare the cash account balance to the amount shown in the checkbook
LESSON 4-3

26. MEMORANDUM FOR A CORRECTING ENTRY
page 106
Correcting entry – journal entry made to correct an error in the ledger
Necessary when an error made in the journal has already been posted
LESSON 4-3

27. JOURNAL ENTRY TO RECORD A CORRECTING ENTRY
page 107
November 13. Discovered that a payment of cash for advertising in October was journalized and posted in error as a debit to Miscellaneous Expense instead of Advertising Expense, $ Memorandum No. 15. 2
Debit 1
Date 4
Source Document 3
Credit
LESSON 4-3

28. TERMS REVIEW
page 108
proving cash
correcting entry
LESSON 4-3