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Posting from a General Journal to a General Ledger Chapter 4.

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Presentation on theme: "Posting from a General Journal to a General Ledger Chapter 4."— Presentation transcript:

1 Posting from a General Journal to a General Ledger Chapter 4

2 4.1 Preparing a Chart if Accounts O A journal does not show in one place all of the changes in a single account O For this reason a separate form is used to summarize in one place all the changes to a single account O In the general ledger, up-to-date balances must be calculated after every entry.


4 Vocabulary O Ledger is a group of accounts O General ledger is a ledger that contains all the accounts needed to prepare financial statements O Account number is the number assigned to an account O Chart of accounts is a list of account titles and numbers showing the location of each account in a ledger

5 Accounts O Accounts 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)expenses O First digit shows the general ledger division O Second two digits indicate the location within the division O This business assigns account numbers by 10s so new accounts can be easily added



8 Opening an Account O Is a very simple process O Simply write the account name on the left and the account number on the right


10 aplia O 4.1 working together O 4.1 application

11 Posting O Transferring information from a journal entry to a ledger account is called posting O Numbers in the Post Ref columns serve three purposes: O An entry in an account can be traced to its source O An entry in a journal can be traced to where it was posted in the account O If posting is interrupted, one can easily see where they stopped







18 Aplia O 4.2 working together O 4.2 application








26 Proving Cash O Determining the amount of cash agrees with the balance of the cash account in the accounting records O This company proves cash at the end of the month



29 Correcting entry O This is what you call a journal entry made to correct an error in the ledger O If an accounting error is discovered, a memorandum is prepared describing the correction to be made


31 Aplia O 4.3 Work Together O 4.3 Application O 4.4 Mastery O Chapter 4 Study Guide

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