2. The General Ledger 4 Post to the ledger The 4 th step of the accounting cycle is to post to the ledger. 4 Post to the ledger The General Ledger is a book containing a separate page for each business account. The General Ledger serves as a permanent record of financial transactions for the business. Posting to the ledger is the process of transferring information from the General Journal to the individual General Ledger accounts. This is pretty easy. All I really have to do is copy the information that I already have in my general journal.

3. The Ledger Account Form Let’s take a look at a sample General Ledger. To open a account with a zero balance 1) Write the name of the account on the top of the ledger form. Cash in Bank 2) Write the account number on the ledger form. 101 To open a account with a balance 3) Enter the date in the date column. 2006 OCT 1 4) Write the word “Balance” in the description column. Balance 5) Place a check mark in the post reference column to show that the amount is not being posted from the General Journal.  6) Enter the balance in the appropriate column. 25,000

4. Posting to the General Ledger Transaction 1 2006 OCT 1 G125,000 2006 OCT 1 25,000 101 301 G1

5. Posting – Transaction 2 2006 OCT 2 G1400 120 301 2G140025,400

6. Posting – Transaction 3 2006 OCT 4 G13,000 115 101 2G13,00022,000

7. Posting – Transaction 4 2006 OCT 9 G112,000 125 205 2006 OCT 9 G112,000

8. Posting – Transaction 5 2006 OCT 11 G1200 110 120 11G1200

9. Posting – Transaction 6 12G135011,650 205 101 12G135021,650

10. Posting – Transaction 7 14G120021,850 101 110 14G1200------

11. Posting – Transaction 8 15G11,20023,050 101 401 2001 OCT 15 G11,200

12. Posting – Transaction 9 2006 OCT 15 G1700 510 101 16G170022,350

13. Posting – Transaction 10 2006 OCT 18 G275 501 201 2006 OCT 16 G275

14. Posting – Transaction 11 2006 OCT 20 G21,450 105 401 20G21,4502,650

15. Posting – Transaction 12 2006 OCT 28 G2125 515 101 28G212522,225

16. Posting – Transaction 13 2006 OCT 29 G2600 505 101 29G260021,625

17. Posting – Transaction 14 2006 OCT 31 G2500 302 101 31G250021,125

18. General Ledger Summary 1

19. General Ledger Summary 2

20. General Ledger Summary 3

21. General Ledger Summary 4

22. General Ledger Summary 5

23. General Ledger Summary 6 This takes a long time, but it’s pretty easy.