Posting to a general ledger
49
BELLWORK – 8/29 STUDY! Test – 101 points BONUS! Prove Cash – 5 pts.
Transcript of Posting to a general ledger
BELLWORK – 8/29
STUDY!
Test – 101 points
BONUS! Prove Cash – 5 pts.
Proving Journal, Page 1 Proving Journal, Page 2
Debit Credit Debit Credit
General General
Sales Sales
Cash Cash
Totals Totals
JOURNAL PAGE 1
1 2 3 4 5
DATE ACCOUNT TITLEDOC. POST GENERAL SALES CASH
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT
7
2017 Aug 12 T12 2 9 5 00 2 9 5 00
8 12 Accts. Rec. - Oakdale School S1 3 5 0 00 3 5 0 00
9 12 Rent Expense C4 3 0 0 00 3 0 0 00
10 12 Utilities C5 4 0 00 4 0 00
11 12 Accts. Rec. - Oakdale School R2 2 0 0 00 2 0 0 00
12 12 Kim Park, Drawing C6 1 2 5 00 1 2 5 00
13
AFTER CHAPTER 3 TEST
• Read Chapter 4
• Define Terms (p 88)
• Define Terms
• Journal
• Chart of accounts
• T Accounts
• Account title
• Audit your understanding, Sections 4.1 thru 4.4
Work Quietly!
BELLWORK – 8/30
EVERYONE
– Sit on the opposite side of the classroom
(chairs by Disney pics)
Continue with Chapter 4:
• Read Chapter 4
• Define Terms (p 88)
• Define Terms• Journal
• Chart of accounts
• T Accounts
• Account title
• Audit your understanding, Sections 4.1 thru 4.4
CHAPTER 3 TEST
JOURNAL PAGE 1
1 2 3 4 5
DATE ACCOUNT TITLEDOC. POST GENERAL SALES CASH
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT
1
2
3
4
5
6
JOURNAL PAGE 2
1 2 3 4 5
DATE ACCOUNT TITLEDOC. POST GENERAL SALES CASH
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
2. State the formula for proving cash.
Answer:
Cash on hand at the beginning of the month
+Plus cash received during the month
=Equals
Less cash paid during the month
Equals cash balance at the end of the month
Then verify:
Check book balance on the next unused
check stub
C H A P T E R 4
POSTING TO A GENERAL LEDGER
OBJECTIVES
• Define accounting terms related to posting from a journal to a general ledger.
• Identify accounting concepts and practices related to posting from a journal to a general ledger.
• Prepare a chart of accounts for a service business organized as a proprietorship.
• Post separate amounts from a journal to a general ledger.
• Post column totals from a journal to a general ledger.
• Analyze and journalize correcting entries.
TERMS
• Ledger
• General ledger
• Account number
• File maintenance
• Opening an account
• Posting
• Correcting entry
• Journal
• Chart of accounts
• T-Accounts
• Account title
4-1 PREPARING A CHART OF ACCOUNTS
What is a journal?
Answer:
• Permanent record of the debit and credit parts of
each transaction with each transaction being
recorded in chronological order.
• It does not show in one place all the changes in a
single account.
RELATIONSHIP OF A “T” ACCOUNT TO AN ACCOUNT FORM
Account Form
• Summarizes in one place all the changes to a single
account
• It is based on includes the debit and credit sides of
a T account.
• Allows for the recording of the transaction date and
journal page number
Balance-ruled account form
• Has columns for debit and credit balances
BALANCE-RULED ACCOUNT FORM
T-Account
• An accounting device used to analyze transactions
Balance-ruled account form
• Account balance is calculated and recorded as
each entry is recorded in the account
• More useful than the T account as a permanent
record of changes to account balances
CHART OF ACCOUNTS
Ledger – a group of accounts
General Ledger – contains all accounts needed to
prepare financial statements
Account title – the name given to an account
What are some examples?
Account number – the number assigned to an
account
PREPARING A CHART OF ACCOUNTS
Chart of accounts – a list of account titles and numbers
showing the location of each account in a ledger
TechKnow Consulting, Chart of Accounts, page 92
Accounts in the general ledger are arranged in the same
order as they appear on the financial statements.
TechKnow’s chart of accounts has 5 general ledger divisions:
(1) Assets, (2) Liabilities, (3) Owner’s Equities,
(4) Revenue, & (5) Expenses
TechKnow ConsultingChart of Accounts
Balance Sheet Accounts Income Statement Accounts
(100) Assets (400) Revenue
110 Cash 410 Sales
120 Petty Cash
130 Accounts Receivable - Oakdale School
140 Accounts Receivable - Campus Internet Café (500) Expenses
150 Supplies 510 Advertising Expense
160 Prepaid Insurance 520 Insurance Expense
530 Miscellaneous Expense
(200) Liabilities 540 Rent Expense
210 Accounts Payable - Supply Depot 550 Supplies Expense
220 Accounts Payable - Thomas Supply Co. 560 Utilities Expense
(300) Owner's Equity
310 Kim Park, Capital
320 Kim Park, Drawing
330 Income Summary
ACCOUNT NUMBERS
TechKnow uses a 3 digit account number
• First digit of each account number shows the
general ledger division in which the account is
located
• Assets division accounts are number in the 100’s
• All asset accounts will begin with a “1”
• The second two digits indicate the location of each
account within a general ledger division.
For example, account 150 is located between
140 and 160.
TechKnow ConsultingChart of Accounts
Balance Sheet Accounts Income Statement Accounts
(100) Assets (400) Revenue
110 Cash 410 Sales
120 Petty Cash
130 Accounts Receivable - Oakdale School
140 Accounts Receivable - Campus Internet Café (500) Expenses
150 Supplies 510 Advertising Expense
160 Prepaid Insurance 520 Insurance Expense
530 Miscellaneous Expense
(200) Liabilities 540 Rent Expense
210 Accounts Payable - Supply Depot 550 Supplies Expense
220 Accounts Payable - Thomas Supply Co. 560 Utilities Expense
(300) Owner's Equity
310 Kim Park, Capital
320 Kim Park, Drawing
330 Income Summary
ASSIGNING ACCOUNT NUMBERS
• New numbers can be assigned between existing accounts without renumbering all existing accounts
• Unused account numbers are assigned to new accounts
• When assigning new numbers, you should leave numbers before and after new account number
• Obsolete accounts are removed from the general ledger and account numbers become available to reassigned
File maintenance:
• Procedure for arranging accounts in a general ledger, assigning accounts in a general ledger, assigning account numbers, and keeping records current
OPENING AN ACCOUNT IN A GENERAL LEDGER
Opening an account
• Writing an account title and number on the
heading of a account
• A general ledger account is opened for each
account listed on a chart of accounts
• Accounts are opened and arranged in a general
ledger in the same order as on the chart of
accounts
STEPS FOR OPENING AN ACCOUNT IN A GENERAL LEDGER
AUDIT YOUR UNDERSTANDING
Describe the two parts of an account number.
AUDIT YOUR UNDERSTANDING
Describe the two parts of an account number.
5 0
General Ledger Division Location within the general ledger division
1
AUDIT YOUR UNDERSTANDING
• List two steps for opening an account.
AUDIT YOUR UNDERSTANDING
• List two steps for opening an account.
WORK TOGETHER 4-1
Company Name___________Chart of Accounts
Balance Sheet Accounts Income Statement Accounts(100) Assets (400) Revenue
(500) Expenses
(200) Liabilities
(300) Owner's Equity
Ross CompanyChart of Accounts
Balance Sheet Accounts Income Statement Accounts(100) Assets (400) Revenue
110 Cash 410 Sales120 Accounts Receivable - Tyler Link130 Accounts Receivable - Megan Alvarez140 Supplies (500) Expenses150 Prepaid Insurance 510 Automobile Expense
520 Insurance Expense530 Miscellaneous Expense
(200) Liabilities 540 Rent Expense210 Accounts Payable - Sherer Supplies 550 Supplies Expense220 Accounts Payable - Mid City Supplies
(300) Owner's Equity310 Clara Ross, Capital320 Clara Ross, Drawing330 Income Summary
Ross CompanyChart of Accounts
Balance Sheet Accounts Income Statement Accounts(100) Assets (400) Revenue
110 Cash 410 Sales120 Accounts Receivable - Tyler Link130 Accounts Receivable - Megan Alvarez140 Supplies (500) Expenses150 Prepaid Insurance 510 Automobile Expense
520 Insurance Expense530 Miscellaneous Expense
(200) Liabilities 535 Postage Expense210 Accounts Payable - Sherer Supplies 540 Rent Expense220 Accounts Payable - Mid City Supplies 550 Supplies Expense
560 Utilities Expense(300) Owner's Equity
310 Clara Ross, Capital320 Clara Ross, Drawing330 Income Summary
ACCOUNT ACCOUNT NO.
DATE ITEM
POST
DEBIT CREDIT
BALANCE
REF. DEBIT CREDIT
BELLWORK (8/31)
Finish definitions for Chapter 4
– Vocabulary quiz Friday, Sept. 1
Quiz Today
- Creating chart of accounts
Complete Audit Your Understandings for all sections.
ON YOUR OWN 4-1 (8/31)
Company Name___________Chart of Accounts
Balance Sheet Accounts Income Statement Accounts(___) Assets (___) Revenue
(___) Expenses
(___) Liabilities
(___) Owner's Equity
ACCOUNT ACCOUNT NO.
DATE ITEM
POST
DEBIT CREDIT
BALANCE
REF. DEBIT CREDIT
S E C T I O N 4 . 2
POSTING SEPARATE AMOUNTS FROM JOURNAL TO GENERAL
LEDGER
POSTING AN AMOUNT FROM A GENERAL DEBIT COLUMN
Posting – transferring information from a journal entry to
a ledger account
Amounts in journal entries are recorded in either:
• General amount columns
• Special amount columns
POSTING AN AMOUNT FROM A GENERAL DEBIT COLUMN
Two rules from posting amounts from a journal:
1. Separate amounts in a journal’s general amount
columns are posted individually to the account
written in the Account Title column.
2. Separate amounts in a journal’s special amount
columns are not posted individually. Instead, the
special amount column totals are posted to the
account named in the heading of the special
amount column.
POSTING SEPARATE AMOUNTS FROM JOURNAL TO GENERAL LEDGER
• For most journal entries, at least one separate amount is posted individually to a general ledger account.
• When an entry in a journal includes an amount in a general amount column, the amount is posted individually.
• Each separate amount in the General Debit and General Credit columns of a journal is posted to the account written in the Account Title column.
STEPS FOR POSTING AN AMOUNT FROM A GENERAL DEBIT COLUMN
1. Write the date in the date column of the appropriate
account. ** first line include year & month **
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 balance in the Balance Debit Column.
Previous Balance + Debit Column Amount = New Debit Balance
5. Return to the journal and write the account number
in the Post. Ref. column of the journal.
POST. REF. COLUMNS
Three purposes of “POST. REF.” columns of the general ledger account a journal:
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.
A blank in the “POST. REF.” column of a journal indicates that posting for that line still needs to be completed.
Therefore, the posting reference in the journal is ALWAYS the LAST step of the posting procedure.
STEPS FOR POSTING A SECOND AMOUNT TO AN ACCOUNT
1. Write the date in the date column of the appropriate
account. ** first line include year & month **
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 balance in the Balance Debit Column.
Previous Balance + Debit Column Amount = New Debit Balance
5. Return to the journal and write the account number
in the Post. Ref. column of the journal.
STEPS FOR POSTING AN AMOUNT FROM A GENERAL CREDIT COLUMN
1. Write the date in the date column of the appropriate
account. ** first line include year & month **
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 balance in the Balance Debit Column.
Previous Balance + Debit Column Amount = New Debit Balance
5. Return to the journal and write the account number
in the Post. Ref. column of the journal.
AUDIT YOUR UNDERSTANDING
List the five steps of posting from the general columns of
journal to the general ledger.
1. Write the date in the date column of the appropriate
account. ** first line include year & month **
2. Write the journal page number in the Post. Ref. column
of the account.
3. Write the dr/cr amount in the dr/cr amount column.
4. Write the new balance in the Balance Dr/Cr Column.
5. Return to the journal and write the account number in
the Post. Ref. column of the journal.
AUDIT YOUR UNDERSTANDING
Are the totals of the General Debit and Credit columns
posted? Why or why not?
Answer:
No. The general debit and credit columns are used for
multiple accounts. The column totals do not represent an
amount for any one account.
Work Together 4-2
On Your Own 4-2
SAVE YOUR WORKING PAPERS!
BONUS POINTS
PowerPoints – 5 points each (individual)
• 10 slide presentation
• Topics• Great Depression 1929-39
• OPEC Oil Price Shock 1973
• Enron & Alan Greenspan
• Present to class
3-5 min Skit or Song/RAP (group project) – 15 points
• Remake Accounting RAP by Colin Dodds
• Remake “Be Our Guest” Accounting skit
• Original Song or Skit – 5 extra points
• Voted best– 5 extra points
• Subject matter – accounting concept/principle or major financial crisis
