C HAPTER 4 Account Balances & Trial Balance. C ALCULATING THE B ALANCE OF A T-A CCOUNT Step 1 – Draw a line across the account at the end of the numbers.

Slides:

Advertisements

Similar presentations

 After the 7 transactions, the ledger looks like Page 105 Figure 4.5. (Show On the White board)  There are 10 accounts in the ledger.  How do you calculate.

Advertisements

First exercise of the day to start a new chapter in Mrs. Cleary’s accounting class. Complete the following: 1.) Write your name on a sheet of paper. 2.)

Chapter 4 – The Simple Ledger

Trial Balance. Accounting Cycle: 1. Transaction Occurs 2. Journal entry 3. General Ledger (t-accounts) 4. Trial Balance.

4.3 – Account Balances & Terminology Chapter 4. What is the Balance in the Cash T-Account (Ledger)? 2.

LEVEL 2 AAT Balancing a ledger account. Step 1: Total both the debit and the credit side of the ledger account and make a ‘sun total’ note of each total.

LESSON 6-1 Creating a Worksheet

Accounting Chapter 4 Unit 7 Notes Posting to the Ledger

Finding and Correcting Errors on a Work Sheet Chapter 6, Section 4.

The Six-Column Work Sheet

Recording Adjusting and Closing Entries for a Service Business Chapter 8, Section 3.

Accounting for a Service Business Unit 1.4 Balance Sheet Accounts.

Chapter 7 – Work Sheet for a Service Business

Trial Balance. The information for ledgers comes from balance sheets. -This means it is already in balance. As you make changes to the Ledger, it is possible.

 When setting up a ledger, where does the beginning balance of ledger accounts come from? ◦ They come from a balance sheet. If your ledger starts from.

Chapter 2 Balance Sheet Accounts. Terminology An Account is a form where changes in transactions are recorded A T-account helps us learn accounting Left.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6-4 Finding and Correcting Errors on the Work Sheet.

Posting from a General Journal to a General Ledger Accounting I Chapter 4, Section 2.

Chapter 7.2 – Trial Balance out of Balance

Chapter 4.4: Trial Balance. Ledger A “book” storing all accounts Total of all debit balance accounts equal total of all credit balance accounts Supplies.

Account Balances and Terminology. Account Balances To calculate the balance of a t- account: 1. Add the two sides of the account separately 2. Write the.

C HAPTER 4.4 Trial Balance. Chapter 4.4 Trial Balance - pg. 112 Figure 4.9: Completed Ledger for Pacific Trucking 2 What would happen if the $200 for.

Review POSTING Refer to link: Note%20-%20Posting.html Note%20-%20Posting.html.

Chapter 5 Preparing Financial Statements. Topic 1 Introducing the Six-Column Worksheet.

Trial Balance. A trial balance is a listing of the account balances in a ledger A trial balance is a listing of the account balances in a ledger A trial.

CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1 Creating a Worksheet.

POSTING JOURNAL ENTRIES TO GENERAL LEDGER ACCOUNTS Chapter 7.

Posting Separate Amounts from a Journal to a General Ledger POSTING TRANSFERRING INFORMATION FROM A JOURNAL ENTRY TO A LEDGER ACCOUNT POSTING.

LESSON 11-2 Posting to an Accounts Receivable Ledger.

Review POSTING Refer to link: Note%20-%20Posting.html Note%20-%20Posting.html.

Chapter 4 - The Simple Ledger

WHY DO WE DO A TRIAL BALANCE? Periodically it is necessary to check the accuracy of the ledger (your T-accounts) TRIAL BALANCETo do this we use a form.

BAF3M1 THE SIMPLE LEDGER Chapter 4, Section 4.1. Ledger Accounts  In this chapter, you will be learning the system used to maintain an up-to-date financial.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6-4 Finding and Correcting Errors on the Work Sheet.

Chapter 7, Section 1 Posting Journal Entries to General Ledger Accounts.

LESSON 6-1 Creating a Worksheet

LESSON 6-1 Creating a Worksheet

LESSON 11-1 Posting to an Accounts Payable Ledger

Chapter 16 Accounting.

Review….. Review…. Your Homework was… Page 96, Exercises 1,2,3 Page 107, ‘Exercise’ 1 A. (Use a T Account Ledger) Do the transactions for this ‘new’

Lesson 4-2 Posting Separate Amounts from a Journal to a General Ledger

© 2014 Cengage Learning. All Rights Reserved.

The Simple Ledger 4 1.

Chapter 4: The Simple Ledger 1.

POST-CLOSING TRIAL BALANCE

Chapter 4 Introduction to the Ledger Accounts

LESSON 6-1 Creating a Worksheet

LESSON 6-1 Creating a Worksheet

The Trial Balance To set up our ledger, we use information from the balance sheet. Changes caused by transactions are recorded in the ledger. (T Accounts)

LESSON 11-1 Posting to an Accounts Payable Ledger

LESSON 6-1 Creating a Worksheet

LESSON 6-1 Creating a Worksheet

Posting to an Accounts Receivable Ledger

Lesson 4-2 Posting Separate Amounts from a Journal to a General Ledger

LESSON 6-1 Creating a Worksheet

LESSON 11-3 Posting from Journals to a General Ledger

LESSON 11-1 Posting to an Accounts Payable Ledger

Lesson 4-2 Posting Separate Amounts from a Journal to a General Ledger

LESSON 11-1 Posting to an Accounts Payable Ledger

LESSON 6-1 Creating a Worksheet

The Six-Column Work Sheet

LESSON 11-3 Posting from Journals to a General Ledger

LESSON 11-1 Posting to an Accounts Payable Ledger

LESSON 11-3 Posting from Journals to a General Ledger

Section 4 Finding and Correcting Errors on the Work Sheet

Posting to an Accounts Receivable Ledger

Posting to an Accounts Receivable Ledger

Posting to an Accounts Receivable Ledger

LESSON 6-1 Creating a Worksheet

Presentation transcript:

C HAPTER 4 Account Balances & Trial Balance

C ALCULATING THE B ALANCE OF A T-A CCOUNT Step 1 – Draw a line across the account at the end of the numbers and add the 2 sides of the account separately. These are called pencil footings. Step 2 – Subtract the smaller total from the larger the total. Write the result beneath the larger of the 2 numbers and circle it. This is the account balance. Bank

T RIAL B ALANCE Is a listing of the account balances found in a ledger. It is used to see if: total debits = total credits. It does not find all mistakes but it checks if the accounts balance.

C REATING A T RIAL B ALANCE Step 1 – Set up the Heading – Who? What? When? Step 2 – List all the accounts. Step 3 – Place the debit balances in the debit column and the credit balances in the credit column. Step 4 – Add up the 2 columns. Step 5 – Compare the totals and ensure that they agree. If they do not agree, investigate why.

W HAT IF THE T RIAL B ALANCE DOES NOT B ALANCE ??? Y IKES !!! Don’t worry! Go through the following steps in order: 1. Re-add the trial balance. 2. Check that you have copied the balances from the ledger correctly. 3. Recalculate the ledger (t-account) balances. 4. Check that there is a balanced accounting entry for each transaction. *You need to balance your trial balance!*

P RACTICE Q UESTIONS Read pg. 98 – 101 in your Textbook about the trial balance Pg. 101 Review Questions #1, 2, 4, 5, 6, 7 Pg. 101 Exercise #1 Pg. 102 Exercise #2 & 3