Presentation on theme: "Chapter 7: Posting to the Ledger"— Presentation transcript:
1Chapter 7: Posting to the Ledger Log into Quia.comCollege Board
2What you need to know : New Open ledger accounts New Execute posting proceduresCreate a Trial BalanceFind and correct errorsNewNew
3Steps to Opening an Account in the Ledger With a Zero Balance Write the account name at the top of the ledger account formWrite the account number on the ledger account form
4Opening an Account with a Balance Write the accounting name at the top of the ledger account formWrite the account number on the ledger account formEnter the complete date (year, month, and day) in the date column.
5Opening an Account with a Balance (continued) Write the word “BALANCE” in the Description column.Place a check mark () in the Post Reference Column to show the amount entered on this line is not being posted from a journal.
6Opening an Account with a Balance (continued) 6. Enter the balance in the appropriate balance column of the ledger account form.
7Opening an Account with a Balance (continued) Usually assets, expenses, and Owner’s Withdrawals have a Debit balance. Where as Liabilities, Owner’s Capital , and revenue accounts have a credit balance
8Posting Process Generally Speaking ~ copy from the journal Enter the date of the journal entry in the Date Column of the ledger account. Note: same format as the journal entry.Description Column is left blank – unless it is a special entry; Correcting Error, Balance, Adjusting Entry, or Closing Entry
9Posting Process (continued) Post Reference Column enter thejournal letter and the page numberGeneral Journal = G + page numberSpecial Journals = next semesterEnter the debit amount in the DebitColumn of the ledger account
10Posting Process (continued) Compute and record the new account balance in the appropriate balance column. Every amount posted will either increase or decrease the balance of that account.REMEMBER TOTALING RULES :Debit & Debit = addingCredit & Credit = addingDebit & Credit = subtracting
11Posting Process (continued) Return to the journal and in the Post Reference Column enter the ledger account number of the amount you just posted the debit part of the journal entry.Repeat steps 1-6 for the credit entry
14The True Reason is…By following this process you will be able to locate where you stopped And trust me…. You will need to know where you left off for most of these problems will not finish in one class period.
15Computing New Balances: Remember NEW Rule: DEBIT & DEBIT = CREDIT & CREDIT =
16Computing New Balances: Remember that Rule:DEBIT & CREDIT =Opposite words you subtract(basic math opposite signs you subtract)
17Example of Debit Entries with Debit Balances: Debit Entries from the General JournalAdded to BalanceIncreases (dr + dr)Notice: the balanceis only on one sideDR & DR = an increase in thebalance
18Example of Credit Entries with Debit Balances: Credit Entries from the General JournalDecreased the BalanceIncreases (cr & dr)Notice: the balanceis only on one sideCR & DR = decreases the balance
19General Ledger Set Up: Account Name Account Number Post Reference: Used to indicate where the information came from…G = General Journal# = page numberDATE: month only written once 1 timeDate of the month each time… as shown
20General Ledger Set Up: Entries from the General Journal Just copied … Balance isONLY ONONE SIDE1