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CHAPTER 4 POSTING TO A GENERAL LEDGER. 2 4-2 PREPARING A CHART OF ACCOUNTS A group of accounts is called a ledger. A general ledger - is a ledger that.

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Presentation on theme: "CHAPTER 4 POSTING TO A GENERAL LEDGER. 2 4-2 PREPARING A CHART OF ACCOUNTS A group of accounts is called a ledger. A general ledger - is a ledger that."— Presentation transcript:

1 CHAPTER 4 POSTING TO A GENERAL LEDGER

2 2 4-2 PREPARING A CHART OF ACCOUNTS A group of accounts is called a ledger. A general ledger - is a ledger that contains all accounts needed to prepare a financial statement.

3 3 RELATIONSHIP OF A T ACCOUNT TO AN ACCOUNT FORM page 91 Balance columns

4 4 CHART OF ACCOUNTS page 92 Chart of Accounts - list of account titles and numbers showing the location of each account ledger. We use 5 general divisions.

5 5 ACCOUNT NUMBERS page 92 The 1st digit indicates in which general ledger division the account is located. Ex: Assets 100, Liabilities 200 The 2nd digit & 3rd digit indicate the location of an account within that division

6 6 1.Write the account title. 2.Write the account number. OPENING AN ACCOUNT IN A GENERAL LEDGER page 94 12

7 4-2 POSTING SEPARATE AMOUNTS FROM A JOURNAL TO A GENERAL LEDGER Transferring information from a journal entry to a ledger account is called posting. Posting sorts journal entries so that all debits and credits affecting each account are brought together in one place. Ex: All changes to Cash are brought together in Cash account.

8 8 1.Write the date.4.Write the new account balance. 2.Write the journal page number. 3.Write the debit amount. 5.Return to the journal and write the account number. POSTING AN AMOUNT FROM A GENERAL DEBIT COLUMN page

9 9 POSTING A SECOND AMOUNT TO AN ACCOUNT page Write the date.4.Write the new account balance. 2.Write the journal page number. 3.Write the debit amount. 5.Return to the journal and write the account number.

10 10 POSTING AN AMOUNT FROM A GENERAL CREDIT COLUMN page Write the date.4.Write the new account balance. 2.Write the journal page number. 3.Write the credit amount. 5.Return to the journal and write the account number. 2

11 POSTING COLUMN TOTALS FROM A JOURNAL TO A GENERAL LEDGER page 100 Check mark indicates that amounts ARE NOT posted individually. Check mark indicates that general amount column totals ARE NOT posted. Check marks show that amounts are not posted.

12 12 POSTING THE TOTAL OF THE SALES CREDIT COLUMN page Write the date.4.Write the new account balance. 2.Write the journal page number. 3.Write the column total. 5.Return to the journal and write the account number

13 13 POSTING THE TOTAL OF THE CASH DEBIT COLUMN page Write the date.4.Write the new account balance. 2.Write the journal page number. 3.Write the column total. 5.Return to the journal and write the account number

14 14 POSTING THE TOTAL OF THE CASH CREDIT COLUMN page Write the date.4.Write the new account balance. 2.Write the journal page number. 3.Write the column total. 5.Return to the journal and write the account number

15 15 page 105 Journal page with posting completed. LESSON 4-4 COMPLETED ACCOUNTING FORMS AND MAKING CORRECTING ENTRIES

16 16 MEMORANDUM FOR A CORRECTING ENTRY page 108

17 17 JOURNAL ENTRY TO RECORD A CORRECTING ENTRY page Source Document 3 Credit 1 Date 2 Debit 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.


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