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. 2014 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. Opening Ledger Accounts Account NameAccount #Balance Cash in Bank Accts Rec – Smith 101 105 9,285 1,235 Account NameAccount #Balance Accts Pay – Jones B. Good, Capital Sales Revenue 201 301 401 980 27,260 0 Cash in Bank101 2014 OCT 1 Balance  9,285 Accounts Receivable - Smith105 2014 OCT 1 Balance  1,235 Accounts Payable - Jones201 2014 OCT 1 Balance  980 B. Good, Capital301 2014 OCT 1 Balance  27,260 Sales Revenue401

5. Posting to the General Ledger 2014 OCT 1 G130,000 101 2014 OCT 1 G1 30,000 2014 OCT 3 G1 6,740 3 23,260 301 125 G1 101

6. Homework Textbook Page: 156 & 164 Workbook Page: 94 & 95 Problem 7-1, Problem 7-2

7. Posting – Transaction 1 2014 OCT 1 G125,000 2014 OCT 1 25,000 101 301 G1

8. Posting – Transaction 2 2014 OCT 2 G1400 120 301 2G140025,400

9. Posting – Transaction 3 2014 OCT 4 G13,000 115 101 2G13,00022,000

10. Posting – Transaction 4 2014 OCT 9 G112,000 125 205 2014 OCT 9 G112,000

11. Posting – Transaction 5 2014 OCT 11 G1200 110 120 11G1200

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

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

14. Posting – Transaction 8 15G11,20023,050 101 401 2014 OCT 15 G11,200

15. Posting – Transaction 9 2014 OCT 15 G1700 510 101 16G170022,350

16. Posting – Transaction 10 2014 OCT 18 G175 2014 OCT 18 G175 501 201

17. Homework Textbook Page: 175 Workbook Page: 98 - 100 Problem 7-5

18. Posting – Transaction 11 2014 OCT 20 G11,450 105 401 20G11,4502,650

19. Posting – Transaction 12 2014 OCT 28 G2125 515 101 28G212522,225

20. Posting – Transaction 13 2014 OCT 29 G2600 505 101 29G260021,625

21. Posting – Transaction 14 2014 OCT 31 G2500 302 101 31G250021,125

22. Homework Textbook Page: 175 - 176 Workbook Page: 106 Problem 7-7 General Journal Only

23. General Ledger Summary 1

24. General Ledger Summary 2

25. General Ledger Summary 3

26. General Ledger Summary 4

27. General Ledger Summary 5

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

30. Homework Textbook Page: 175 Workbook Page: 101 – 102 Problem 7-6 Use Trial Balance Handout

31. Homework Textbook Page: 175 - 176 Workbook Page: 104 - 107 Problem 7-7 Use Trial Balance Handout

32. Homework Workbook Page: 108 - 113 Problem 7-8

33. Correcting Entries The method for correcting an error depends on when and where the error is found. There are three types of errors. Error in a Journal entry that has not been posted to the ledger Error in posting to the Ledger when the Journal is correct Error in a Journal entry that has been posted to the Ledger Draw a single line through the incorrect item and write the correction directly above it A correcting entry must be made in the Journal and then posted to the Ledger Let’s make no mistake about it, we should probably take a look at an example of each type of error.

34. Error in a Journal entry that has not been posted to the Ledger You discover that the check for the rent was actually for $700. Draw a single line through the incorrect item and write the correction directly above it. 700

35. Error in posting to the Ledger when the Journal entry is correct You discover that the entry on Oct 12 th in the Journal was actually $3,150. Draw a single line through the incorrect item and write the correction directly above it. Don’t forget to also correct the balance. 3,1508,850

36. Error in a Journal entry that has been posted On Nov 23 rd you write memo #68 indicating that a $200 check to pay the electricity bill on Nov 15 th was incorrectly journalized and posted to the Maintenance Expense account instead of the Utilities Expense account. A correcting entry must be made in the journal and posted to the Ledger. 23G5200345 Correcting Entry 23G5200670 Correcting Entry 515 505

37. Homework Textbook Page: 177 Workbook Page: 114 - 117 Problem 7-9