Presentation on theme: "Chapter 7 Posting Journal Entries to General Ledger Accounts"— Presentation transcript:
You are watching: Chapter 7 posting journal entries to general ledger accounts
13 The Posting Process Main Idea You Will LearnSECTION 7.2 Main Idea Posting is the process of moving information from the journal to individual accounts in the ledger. You Will Discover just how to article transactions to the basic ledger. how to compute account balances.
14 The Posting Process Posting TransactionsSECTION 7.2 Posting Transactions Journal entries do not display a clear photo of how a business transaction transforms an account’s balance. Posting mirrors the last affect on an account, which is why a ledger is sometimes referred to as a book of last entry: Posting intervals are determined by the size of the company, and also whether the accounting system is computerized or hands-on. The posting procedure constantly continues to be the exact same. The process is always performed from left to ideal.
15 The Posting Process Posting to the Roadrunner General LedgerSECTION 7.2 Posting to the Roadrunner General Ledger Tright here are six steps required for posting journal entries to a ledger: 1.Enter the day of the journal entry in the Date column. 2.The Description column is commonly left empty, yet deserve to be used to write in the resource record. 3.Go into journal letter and web page number in Blog post. Ref. column. 4. Go into the debit amount in the Delittle column. 5. Compute the brand-new account balance. 6. Get in the account number in the general journal Blog post. Ref. column. 7. Repeat measures 1-6 for the crmodify part of the journal entry.
17 Lets look at pperiods 171- 173 in our text book for an additional instance.
18 The Posting Process Computing a New Account BalanceSECTION 7.2 Computing a New Account Balance A new account balance is computed each time a transaction is posted to an account. When the existing account balance is a delittle, and also the amount posted is a delittle, ADD the quantities. the amount posted is a credit, SUBTRACT the amounts. When the existing account balance is a crmodify, and the amount posted is a delittle, SUBTRACT the quantities. the amount posted is a crmodify, ADD the quantities.
19 The Posting Process Computing a New Account BalanceSECTION 7.2 Computing a New Account Balance A ledger account via several postings.
20 The Posting Process Computing a New Account BalanceSECTION 7.2 Computing a New Account Balance A ledger account with a zero balance.
21 Lets try Problem 7-2 Working Papers page 95
23 Preparing a Trial BalanceSECTION 7.3 Key Idea To learn just how to prove that your accountancy system is in balance. It is the proof that your total debits equal your total credits. You Will Find Out the procedures in preparing a trial balance. just how to discover and also correct errors in a trial balance.
24 Preparing a Trial BalanceSECTION 7.3 Key Terms proving the ledger trial balance transposition error slide error correcting enattempt
25 Preparing a Trial BalanceSECTION 7.3 The Fifth Step in the Accounting Cycle: The Trial Balance In order for an accountancy system to work successfully, it is important to remember the crucial actions to keep it in balance: Calculating the balance. Finding any kind of errors that may have actually arisen. Using general rules and also guidelines to narrowhead dvery own wbelow and also why the mistake was made. Correcting the mistake.
26 Preparing a Trial BalanceSECTION 7.3 The Fifth Tip in the Accounting Cycle: The Trial Balance Once the journal entries have been properly posted to the ledger, the amount of the debits have to equal the amount of the credits. The final numbers must be the same; this is called proving the ledger. Check out the instance on page 178 of your text book.
27 Preparing a Trial BalanceSECTION 7.3 The Fifth Step in the Accounting Cycle: The Trial Balance To prove the ledger, accountants prepare a list of all the account names and also their present balances. This list is referred to as the trial balance. If the totals are equal, the trial balance is in balance. If they are not, attempt adding the columns up again. If tright here is still a mistake, it must be corrected.
28 Preparing a Trial BalanceSECTION 7.3 Finding an Error If there is an error, one possibility may be that two numbers were reversed as soon as recording the information from the journal, referred to as a transposition error. One way to assist inspect for these kinds of errors is if the difference between the credits and also the debits is divisible by 9. An example of this is if $469 was created as $496.
31 Here’s what happened: On November15, Ms. Benack uncovered an error in a journal entry made on November 2.
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A $100 inspect to pay the electrical power bill was journalized and also posted to the Maintenance Expense account by mistake. Maintenance Expense Delittle + 100 Crmodify - Cash in Bank Delittle bit + Crmodify - 100
34 Let’s attempt Problem 7-3! Working Papers web page 96