CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4-2 Posting from a General Journal to a General Ledger

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Learning Objectives © 2014 Cengage Learning. All Rights Reserved. LO5Post amounts from a general journal. LO6Demonstrate how to prove cash.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Posting an Amount from the Debit Column of a General Journal Transferring information from a journal entry to a ledger account is called posting. SLIDE 3 LO5 Lesson 4-2

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Posting Posting—Transferring information FROM a journal entry TO a ledger account FIVE Steps of Posting TO the Ledger 1. Write the Date from Source 2. Write the Page Number of the Source 3. Write the Debit OR Credit amount FROM Source 4. Update the Balance of the Ledger Account 5. Write the Acct. Number in the Post Ref of Source 4 LESSON 4-2

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 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 THE DEBIT COLUMN OF A GENERAL JOURNAL page

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 4-2 POSTING AN AMOUNT FROM THE CREDIT COLUMN OF A GENERAL JOURNAL 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

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 7 LESSON 4-2 POSTING A DEBIT AMOUNT TO AN ACCOUNT WITH A DEBIT BALANCE 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. 2

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Rules for Balances 1.When the previous balance was a Debit and the new number is ALSO a debit, ADD to get a larger debit 2.When the previous balance was a Credit and the new number is ALSO a credit, ADD to get a larger credit When the same always ADD!!!! LESSON 4-2 8

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Rules for Balances 1.When the previous balance was a Debit and the new number is a Credit, SUBTRACT to get a smaller debit 2.When the previous balance was a Credit and the new number is a debit, SUBTRACT to get a smaller credit When different always SUBTRACT!!!! LESSON 4-2 9

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 10 LESSON 4-2 POSTING A DEBIT AMOUNT TO AN ACCOUNT WITH A CREDIT BALANCE page 99 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

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 11 LESSON 4-2 JOURNAL PAGE WITH POSTING COMPLETED (continued on next slide) page 100

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 12 LESSON 4-2 JOURNAL PAGE WITH POSTING COMPLETED page 100 (continued from previous slide)

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 13 LESSON 4-2 TERM REVIEW posting page 101

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Proving Cash Determining that the amount of cash agrees with the balance of the Cash account in the accounting records is called proving cash. SLIDE 14 LO6 If the cash balance as shown in the checkbook equals the cash balance in the Cash account, cash is proved. Lesson 4-2

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Lesson 4-2 Audit Your Understanding 1.List the five steps of posting from the general journal to the general ledger. SLIDE 15 ANSWER 1.Write the date in the Date column of the account. 2.Write the journal page number in the Post. Ref. column of the account. 3.Write the amount in the Debit or Credit column. 4.Calculate and write the new account balance in the Balance Debit or Balance Credit column. 5.Return to the journal and write the account number in the Post. Ref. column of the journal. Lesson 4-2

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Lesson 4-2 Audit Your Understanding 2.When both debit and credit amounts have been posted to an account, what determines whether the balance is a debit or a credit? SLIDE 16 ANSWER Whenever the debits in an account exceed the credits, the balance is a debit. Whenever the credits in an account exceed the debits, the balance is a credit. Lesson 4-2