1. Review
HST recoverable – tax you paid for purchases related to business
HST payable - tax you charge customers
We analysed our transactions using HST recoverable & HST payable and put them into the general journal

2. Captain Panther Inc.
General Journal
Page 1
Date
Particulars
P.R.
Debit
Credit 1
Nov
Bank - 2
J. Stewart, Capital 3
To record the start of a Business 4 5
Equipment 6
HST Recoverable 9 7 8
To record the purchase of equipment for cash 10 50 11
Fees Earned 12
HST Payable 13
To record a service provided for cash

4. 7.1 Posting

5. What is POSTING?
The process of transferring information from the journal to the ledger

6. No more T-accounts!!
This is what the General Ledger will now look like
Account:
No:
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance

7. Let’s Try It! Captain Panther Inc. General Journal Page 1 Date
Date
Particulars
P.R.
Debit
Credit 1
Nov
Bank - 2
J. Stewart, Capital 3
To record the start of a Business 4 5
Equipment 6
HST Recoverable 9 7 8
To record the purchase of equipment for cash 10 50 11
Fees Earned 12
HST Payable 13
To record a service provided for cash

8. 1 2 3 6 4 5 Bank 105 1 J1 1 - DR 1 - 1 J1 3 3 9 - 6 6 1 - 3 Cash Sales
Record NEW balance & indicate DR/CR 1
Account Name
Account # 2
Post-reference (journal page #) 3 6
Account:
No:
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
DR 
 DR 
Bank
105 4 1
Opening Balance J1 1 - DR 1 -
NOV
DATE 1 J1 3 3 9 - 6 6 1 -
Cheque Copy 3
Cash Sales J1 2 8 2 50 9 4 3 50 50
Source Document Name
Record the amount on the appropriate side 5

9. Cross-referencing
A) record the journal page # (i.e. J1) in the LEDGER PR column
&
B) record the ledger account # in the PR column in the JOURNAL

10. Captain Panther Inc.
General Journal
Page 1
Date
Particulars
P.R.
Debit
Credit 1
Nov
Bank
105  - 2
J. Stewart, Capital 3
To record the start of a Business 4 5
Equipment 6
HST Recoverable 9 7 8
To record the purchase of equipment for cash 10 50 11
Fees Earned 12
HST Payable 13
To record a service provided for cash

11. Complete the rest of the ledger entries on your page!

12. Calculate Remittance or Refund
HST Payable
HST Recoverable
Bank
32.50
39.00
39.00
32.50
32.50
32.50
39.00
39.00
6.50

13. Journalize
DR CR Bank 6.50 HST Payable HST Recoverable 39.00

14. Forwarding Procedure:
Process of transferring final balance to a new page when existing page is complete or full
Record ‘FORWARD’ on last entry & on new page to show it comes from another location
Do exercise #3 on page 234 (t), 160 (w) to see it in action!

15. The Accounting Cycle Transaction occurs Trial Balance Balance Sheet
Record to General Journal
Transaction occurs
Post to General Ledger
Trial Balance
Income Statement
Balance Sheet

16. Homework:
Complete exercises 3 p (t), p. 160 (w) & ex. 2 p (t) p (w) Complete I/S & Balance sheet as well use pages (w)