chapter 5-posting to a general ledger. journal permanent record of debit and credits with...
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Chapter 5-Posting to A General Ledger
Journal
Permanent record of debit and credits with transactions listed in chronological order.
Disadvantage- does not show all the changes in a single account.
RELATIONSHIP OF A T ACCOUNT TO AN ACCOUNT FORM
Lesson 5-1, page 98Lesson 5-1, page 98
General Ledger Defined- A ledger that contains all
accounts needed to prepare financial statements.
Organized using numbers assigned to accounts called ACCOUNT NUMBERS.
Lesson 5-1, page 99Lesson 5-1, page 99
Lesson 5-1, page 99Lesson 5-1, page 99
Divisions of a General Ledger (1) Assets (2) Liabilities (3) Owner’s Equity (4) Revenue (5) Expenses (alphabetical order) If the account number was 120 what
would the account be? How about 330? 510?
Questions to Think About Why do you think that Encore Music
organizes their chart of accounts on page 99 by tens. 100, 110, 120, etc.
File Maintenance- the procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current.
File Maintenance Examples 510 Advertising Expense
Gasoline Expense (New)
520 Insurance Expense
Answer: 515 Gasoline Expense
550 Supplies Expense 560 Utilities Expense Water Expense (new)
Answer: 570
OPENING AN ACCOUNT IN A GENERAL LEDGER
Lesson 5-1, page 101Lesson 5-1, page 101
1
1. Write the account title.
2. Write the account number.
2
Today’s Assignment
1. “Work Together 5-1” p. 73 Workbook, 102 Text.
Warm-up
“On Your Own 5-1” p. 74 Workbook, 102 Text.
Opening an Account in A General Ledger
1. Write the account title after the word account in the heading.
2. Write the account number after the words Account No. in the heading.
Posting
Defined -transferring information from a journal entry to a ledger account.
Example- text pg. 103
Posting an Amount from a General Debit Column
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 debit amount in the debit amount column.
4. Write the new account balance. Previous Balance + Debit Column Amount= New Debit Balance.
5. Return to journal and write the account number in the Post. Ref. Column of the journal.
POSTING AN AMOUNT FROM A GENERAL DEBIT COLUMN
1. Write the date.
5
2
4
13
2. Write the journal page number.
3. Write the debit amount.
4. Write the new account balance.
5. Write the account number in the Post. Ref. column of the journal. Lesson 5-2, page 103Lesson 5-2, page 103
POSTING A SECOND AMOUNT TO AN ACCOUNT
1. Write the date.
5
2
4
3
2. Write the journal page number.3. Write the debit amount.4. Write the new account balance.5. Write the account number in the Post. Ref.
column of the journal.
1
Lesson 5-2, page 104Lesson 5-2, page 104
POSTING AN AMOUNT FROM A GENERAL CREDIT COLUMN
1. Write the date.
5
2
4
13
2. Write the journal page number.
3. Write the credit amount.
4. Write the new account balance.
5. Write the account number in the Post. Ref. column of the journal. Lesson 5-2, page 105Lesson 5-2, page 105
Posting A Second Account All steps are the same except you must
add the debit amount to the debit balance column (step 4).
See page 104
Posting an Amount from a General Credit Column
Same exact steps except amounts are recorded in credit columns……don’t make this seem difficult.
Example of Posting
10001000
20005000
30002000
50005000
Credit
Balance
Debit
Balance
CreditDebit
Warm-up Work Together 5-2 p. 108 Text, 75 WB On Your Own 5-2 p. 108 Text, 79 WB
5-3 Posting Column Totals to a
General Ledger
Posting Column Totals Not all journal entries are posted
individually. Sales Credit, Cash Debit, and Cash
Credit are not posted individually. Instead the totals of the special amount
columns are posted. Example page 107
Posting Special Amount Columns
Sales Credit Totals- posted as SALES! Cash Debit and Credit Totals-posted in
CASH!
Where have you seen me?
Steps Involved 1. Date 2. Write Journal Page number in Post.
Ref. 3. Write column total in debit or credit
column. 4. Write in account balance. 5. Return to journal and write account
number in parenthesis.
CHECK MARKS SHOW THAT AMOUNTS ARE NOT POSTED
Check mark indicates that amounts ARE NOT posted individually.
Check marks indicate that general amount column totals ARE NOT posted.
Lesson 5-3, page 107Lesson 5-3, page 107
POSTING THE TOTAL OF THE SALES CREDIT COLUMN
1. Write the date.
5
2
4
1
2. Write the journal page number.
3. Write the column total in the Credit amount column.
4. Write the new account balance.
5. Return to the journal and write the account number in parentheses.
3
Lesson 5-3, page 108Lesson 5-3, page 108
POSTING THE TOTAL OF THE CASH DEBIT COLUMN
1. Write the date.
5
2
4
3
2. Write the journal page number.
3. Write the column total in the Debit amount column.
4. Write the new account balance.
5. Return to the journal and write the account number in parentheses.
1
Lesson 5-3, page 109Lesson 5-3, page 109
POSTING THE TOTAL OF THE CASH CREDIT COLUMN
1. Write the date.
5
2. Write the journal page number.
3. Write the column total in the Credit amount column.
4. Write the new account balance.
5. Return to the journal and write the account number in parentheses.
1
2
3
4
Lesson 5-3, page 110Lesson 5-3, page 110
Today’ s Activity
1. Work Together 5-3 p. 75, 77, 78.
2. On Your Own 5-3 p. 79, 81, 82.