Presentation on theme: "Posting from a General Journal to a General Ledger"— Presentation transcript:
1Posting from a General Journal to a General Ledger Chapter 4
24.1 Preparing a Chart if Accounts A journal does not show in one place all of the changes in a single accountFor this reason a separate form is used to summarize in one place all the changes to a single accountIn the general ledger, up-to-date balances must be calculated after every entry.
4Vocabulary Ledger is a group of accounts General ledger is a ledger that contains all the accounts needed to prepare financial statementsAccount number is the number assigned to an accountChart of accounts is a list of account titles and numbers showing the location of each account in a ledger
5AccountsAccounts in the chart of accounts are listed in the same order as they appear in financial statements: 1)assets, 2)liabilities, 3)owner’s equity, 4)revenue, 5)expensesFirst digit shows the general ledger divisionSecond two digits indicate the location within the divisionThis business assigns account numbers by 10s so new accounts can be easily added
11PostingTransferring information from a journal entry to a ledger account is called postingNumbers in the Post Ref columns serve three purposes:An entry in an account can be traced to its sourceAn entry in a journal can be traced to where it was posted in the accountIf posting is interrupted, one can easily see where they stopped