Posting from a General Journal to a General Ledger. Tuesday, October 26, :48:47 PM ET

Transcription

1 Posting from a General Journal to a General Ledger

2 Account Form Based on the T account (Debit and Credit sides). Transaction Date and Journal page number. Balance-Ruled Account Form A form that has columns for the debit and credit balance. The account balance is calculated as each entry is recorded in the account.

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4 Ledger A group of accounts. General Ledger A ledger that contains all accounts needed to prepare financial statements. Account Number The number assigned to an account. Chart of Accounts A list of account titles and numbers showing the location of each account in a ledger.

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6 Account numbers are assigned by 10s so that new accounts can be added easily. Expense accounts are arranged alphabetically When a new account is added the new number account number should be the middle, unused number.

7 Write the account title. 2. Write the account number.

8 p. 100 Audit Your Understanding p. 100 (p. 65) Work Together p. 100 (p. 66) On Your Own p. 113 (p. 77) Application Problem 5-1

9 Posting from a General Journal to a General Ledger

10 Posting Transferring information from a journal entry to a ledger account. All changes to an account are brought together in that account. Each amount in the Debit and Credit columns of a general journal is posted to the account written in the Account Title column.

11 Post References The numbers in the Post Ref. columns of the general journal and general ledger serve three purposes: 1. An entry in an account can be traced to its source in a journal. 2. An entry in a journal can be traced to where it was posted in an account. 3. If posting is interrupted, the accounting personnel can easily see what entries still need to be posted. The Post Reference is always recorded last.

12 August 1. Received cash from owner as an investment, $10, Receipt No. 1.

13 Write the date. 2. Write journal page number. 3. Write the debit amount. 4. Write new account balance. 5. Write the account number in the Post. Ref. column of the journal.

14 Write the date. 2. Write the journal page number. 3. Write the credit amount. 4. Write the new account balance. 5. Write the account number in the Post. Ref. column of the journal.

15 August 7. Bought supplies on account from Ling Music Supplies, $2, Memorandum No.1.

16 August 11. Paid cash on account to Ling Music Supplies, $1,360.00, Check No. 3.

17 1. Write the date Write the journal page number. 3. Write the debit amount. 4. Write the new account balance. 5. Write the account number in the Post. Ref. column of the journal.

18 p. 105 Audit Your Understanding p. 105 (p ) Work Together p. 105 (p ) On Your Own p. 113 (p ) Application Problem 5-2

19 Completed General Ledger, Proving Cash, and Making Correcting Entries

20 Proving Cash Determining that the amount of cash agrees with the balance of the cash account in the accounting records. Always prove Cash at the end of the month Compare the cash balance in a Checkbook with the cash balance in the Cash account.

21 Correcting Entries A journal entry made to correct an error in the ledger.

22 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. 45. Advertising Expense 1. Which accounts are affected? Advertising Expense Miscellaneous Expense 2. How is each account classified? Advertising Expense is an expense account. Miscellaneous Expense is an expense account. 3. How is each classification changed? Expenses are increased. Expenses are decreased. 4. How is each amount entered in the accounts? Expense accounts increase on the debit side. Expense accounts decrease on the credit side. Debit Normal Balance Miscellaneous Expense Debit Normal Balance

23 Write the date. 2. Debit Advertising Expense. 3. Credit Miscellaneous Expense. 4. Write the source document number. 4

24 p. 111 Audit Your Understanding p. 111 (p. 75) Work Together p. 111 (p. 76) On Your Own p. 113 (p. 83) Application Problem 5-3 P. 114 ( p ) Mastery Problem 5-4 P. 114 ( p ) Challenge Problem 5-5