1. PPTs to accompany Accounting and Bookkeeping Principles and Practice by AAT & David Willis  2011 McGraw-Hill Australia Pty Ltd CHAPTER 5 Postings to ledger accounts and the trial balance Learning outcome To be able to post journal entries for a double-entry system to the general ledger accounts to prepare a trial balance 5-1

2. PPTs to accompany Accounting and Bookkeeping Principles and Practice by AAT & David Willis  2011 McGraw-Hill Australia Pty Ltd KEY TERMS Creditors Debtors Control accounts Rules of double entry Trial balance Errors in a trial balance 5-2

3. PPTs to accompany Accounting and Bookkeeping Principles and Practice by AAT & David Willis  2011 McGraw-Hill Australia Pty Ltd GENERAL LEDGER ACCOUNTS Journal totals posted to ledgers to: –summarise information –classify information Facilitates: –locating information –extracting information 5-3

4. PPTs to accompany Accounting and Bookkeeping Principles and Practice by AAT & David Willis  2011 McGraw-Hill Australia Pty Ltd TRANSACTION FLOWCHART Figure 5.1 Flowchart of transactions into accounting records 5-4

5. PPTs to accompany Accounting and Bookkeeping Principles and Practice by AAT & David Willis  2011 McGraw-Hill Australia Pty Ltd DOUBLE-ENTRY RULES DEBIT SIDE (DR)CREDIT SIDE (CR) ASSETS EXPENSES EQUITY LIABILITIES REVENUE Decreases Increases Decreases 5-5

6. PPTs to accompany Accounting and Bookkeeping Principles and Practice by AAT & David Willis  2011 McGraw-Hill Australia Pty Ltd DOUBLE-ENTRY RULES cont. ASSETS EXPENSES EQUITY REVENUE LIABILITIES Debit Increases Debit Decreases Credit Decreases Credit Increases 5-6

7. PPTs to accompany Accounting and Bookkeeping Principles and Practice by AAT & David Willis  2011 McGraw-Hill Australia Pty Ltd SUMMARY OF DOUBLE-ENTRY RULES Account balance 5-7

8. PPTs to accompany Accounting and Bookkeeping Principles and Practice by AAT & David Willis  2011 McGraw-Hill Australia Pty Ltd DEBTORS CONTROL ACCOUNT 5-8

9. PPTs to accompany Accounting and Bookkeeping Principles and Practice by AAT & David Willis  2011 McGraw-Hill Australia Pty Ltd CREDITORS CONTROL ACCOUNT 5-9

10. PPTs to accompany Accounting and Bookkeeping Principles and Practice by AAT & David Willis  2011 McGraw-Hill Australia Pty Ltd TRIAL BALANCE Ensures ledgers are balanced Every debit has a corresponding credit Lists all general ledger accounts, with balances, in numerical order 5-10

11. PPTs to accompany Accounting and Bookkeeping Principles and Practice by AAT & David Willis  2011 McGraw-Hill Australia Pty Ltd TRIAL BALANCE cont. Separate columns for debit balances and credit balances show if total debits equal total credits Control accounts, not subsidiary accounts, appear in trial balance ‘Nil’ balances usually not included 5-11

12. PPTs to accompany Accounting and Bookkeeping Principles and Practice by AAT & David Willis  2011 McGraw-Hill Australia Pty Ltd CHECKLIST FOR POSTING FROM JOURNALS TO LEDGER ACCOUNTS JOURNALPOSTINGS Purchases (PJ)CREDIT Creditors control account DEBIT Purchases column to the Purchases a/c Total GST column to the GST input a/c From ‘Other’ column, debit asset purchases and expenses to the relevant accounts 5-12

13. PPTs to accompany Accounting and Bookkeeping Principles and Practice by AAT & David Willis  2011 McGraw-Hill Australia Pty Ltd CHECKLIST FOR POSTING FROM JOURNALS TO LEDGER ACCOUNTS cont. SALES (SJ)DEBIT Debtors control account CREDIT Sales column to the Sales account Total GST column to the GST collected account From ‘Other’ column for asset sales, credit to the relevant accounts CASH RECEIPTS (CRJ) DEBIT Total cash received to Cash at bank account Discount allowed column CREDIT Debtors control account Sales column to the Sales account Total GST column to the GST collected account From ‘Other’ column, credit each account for the amounts shown 5-13

14. PPTs to accompany Accounting and Bookkeeping Principles and Practice by AAT & David Willis  2011 McGraw-Hill Australia Pty Ltd CHECKLIST FOR POSTING FROM JOURNALS TO LEDGER ACCOUNTS cont. CASH PAYMENTS (CPJ) CREDIT Total cash paid to Cash at bank account Discount revenue column DEBIT Creditors control account Purchases column to the Purchases a/c Total GST column to the GST input a/c From ‘Other’ column, debit each account for the amounts shown GENERAL (GJ) Post these in date order: DEBIT every a/c in the debit column CREDIT every a/c in the credit column 5-14