Posting Journal Entries to General Ledger Accounts Chapter 7 $ Posting Journal Entries to General Ledger Accounts $ Making Accounting Relevant Every business completes business transactions daily. Think about the various areas of a business, such as the different departments in a department store or a home supply store. $ $ Choose one business in your area. What accounts would be necessary for the chart of accounts for that business?

$ $ $ $ Section 1 The General Ledger What You’ll Learn Chapter 7 The purpose of the general ledger. How to open accounts in the general ledger. $ $

$ $ $ $ Why It’s Important Key Terms Chapter 7 general ledger Section 1 The General Ledger (con’t.) $ Why It’s Important You examine the ledger to review how business transactions affect each account. $ $ Key Terms general ledger ledger account form $

$ $ $ $ Setting Up the General Ledger Chapter 7 Section 1 The General Ledger (con’t.) $ Setting Up the General Ledger In a manual accounting system, the accounts used by a business are kept on separate pages or cards. These pages or cards are kept together in a book or file called a general ledger. $ $ $

$ $ $ $ The Four-Column Ledger Account Form Chapter 7 Section 1 The General Ledger (con’t.) $ The Four-Column Ledger Account Form $ $ $

$ $ $ $ Opening an Account with a Zero Balance Chapter 7 Section 1 The General Ledger (con’t.) $ Opening an Account with a Zero Balance $ (1) Write the account name at the top of the ledger account form. (2) Write the account number on the ledger account form. $ 1 2 $

$ $ $ $ Opening an Account with a Balance Chapter 7 Section 1 The General Ledger (con’t.) $ Opening an Account with a Balance $ (1) Write the account name at the top of the ledger account form. (2) Write the account number on the ledger account form. $ $

$ $ $ $ Opening an Account with a Balance (con’t.) Chapter 7 Section 1 The General Ledger (con’t.) $ Opening an Account with a Balance (con’t.) $ (3) Enter the complete date (year, month, and day) in the date column. (4) Write the word “Balance” in the Description column. $ $

$ $ $ $ Opening an Account with a Balance (con’t.) Chapter 7 Section 1 The General Ledger (con’t.) $ Opening an Account with a Balance (con’t.) (5) Place a check mark () in the Posting Reference column to show the amount entered on this line is not being posted from a journal. (6) Enter the balance in the appropriate balance column of the ledger account form. $ $ $

$ $ $ $ Check Your Understanding Chapter 7 Section 1 The General Ledger (con’t.) $ Check Your Understanding $ 1. List the steps involved in opening an account with a zero balance. 2. List the steps involved in opening an account with a balance. $ $