Students are required to take at least 4 pages of Cornell Notes from CHP 6.

4 pages = 100%. Receive extra credit for every page over 4.

- Define accounting terms related to posting from a journal to a general ledger.

- Prepare a chart of accounts for a service business organized as a proprietorship.

- Post amounts from a journal to a general ledger.

JOURNAL

Account

What happens to all this info after its posted to the journal?

Information or data is taken from the journal and separated and posted to a general ledger account.

Supplies 130

Aug 2 1 500 500Aug 23 1 100 600

A Chart of Accounts

A list of accts titles and numbers showing the location of each account in a ledger.

Posting to a General Ledger

What do you need before you can post to a general ledger?

What is a Chart of Accts?

Chart of Accounts

What are the main 5 divisions used in the Chart of Accts? LIABILITIES

OWNERS EQUITY

ASSETS REVENUE

EXPENSES

(100)

(200)

(300)

(400)

(500)

What accounts go where?

CASHPetty CashSuppliesPrepaid Insurance

Any Acct OwedOwner, CapitalOwner, Drawing

All SalesAll Expenses

How are these accounts arranged and numbered?

The Accounts are alphabetical in each section and then numbered in multiples of 10.

110120130140

210

310320

410

510

What does each of these accts represent?

Each Acct on this sheet means it will have its own General Ledger sheet.

220230

520530540

How are the main Accts numbered?

SUMMARY

Posting to a General Ledger

Opening an account

Opening an Acct

Writing an account title and number on the heading of an account.

How many General Ledger Accts will there be?

A General Ledger Acct is created for each account listed on a chart of account.

What are the steps to opening a General Ledger Account?

Step 1: Write the Acct Title after the word Account in the heading.

Step 2: Write the Acct Number after the word Acct. No.

Step 1 Step 2

CASH 110

Posting Transferring information from a journal entry to a ledger account.

Journal to Ledger

Posting to a General Ledger

How many different types of main accounts are found on a journal sheet?

1.

2.

General Amount Columns.

Special Amount Columns.

The Chart of Accts has a list of all the General Ledger Accounts.

Use the Acct Title in the journal to locate the General Ledger Accts.

How do I know which acct to place the General Debit and Credit Accts in?

What else can be helpful when deciding which General Ledger Acct to post to?

Posting to a General LedgerJournal to

Ledger

EXAMPLE: Posting to Accts.

Example 1 - McBroom, Capital

Example 2 - Utilities Expense

Example 3 - Staples Office Supplies

Example 4 - Supplies

Posting to a General Ledger

What are the steps for posting from a Journal to a General Ledger?

Journal to Ledger

1. Write the Date

2. Write the journal page number in the Post. Ref. column of the Ledger

3. Either write the Debit or Credit in the amount column.

4. Write the new balance in the Debit or Credit column. Keep a running balance in the balance columns.

5. Return to the journal and write the account number in the post reference.

The Account Title and Account Number should already be on the General Ledger Sheet.

Posting to a General LedgerJournal to

Ledger

Supplies 130

AUG. 2 1 500 500

130

What is the purpose of the Post. Ref. on the Journal Sheet?

1. An entry in an account can be traced to its source in a journal.

2. An entry in a journal can be traced to where it was posted in an account.

3. If posting is interrupted, the accounting personnel can easily see which entries in the journal still need to be posted.

Steps for posting from a Journal to a General Ledger

Step 1:

Step 2: Set up General Ledger Acct Titles and Acct Numbers for Chart of Accounts

Step 3:

Locate your chart of Accounts

Journalize each transaction

Step 4: Prove the journal (Total it and double underline)

Step 5: Post from Journal to General Ledger

Step 6: Prove Cash

Which accounts are posted individually and which are not?

General Debit and General Credit are posted individually.

Forwarding Totals and Special Amount columns are not posted individually.

Posting to a General Ledger

What are examples of forwarding totals and special amount columns?

Forwarding Totals – Carried Forward, Brought Forward.

Special Amount Columns – Sales Credit, Cash Debit, and Cash Credit.

How do you post Forwarding Totals to the General Ledger?

Forwarding Totals are not posted to the General Ledger. Only check marks are placed in the Post. Ref. box to show they are already accounted for.

How do you post Special Amount Columns to the General Ledger?

Sales Credit, Cash Credit, and Cash Debit are not posted individually. Only the Totals are posted.

That is why each time a sales transaction is journalized a check mark is placed in the Post. Ref. box.

Posting to a General Ledger

Is there anything else we do to the General Credit and Debit?

Check marks in parenthesis, are placed below both the General Debit and General Credit Total Amounts to show the Totals are not to be posted.

Sales Credit, Cash Debit, and Cash Credit “TOTALS” are all posted to their corresponding General Ledger Accounts.

How are Special Acct Columns posted to the General Ledger?

Posting to a General Ledger

How are Post. Ref. numbers posted to the journal for Special Amount Columns?

The Account Numbers from the General Ledger are posted in parenthesis under the Total amounts as the Post. Ref.

4291Aug. 31 2 4291

(410)

Aug. 31 2 14291 14291Aug. 31 2 6004 8287

(110) (110)