Transcript Chapter 5 Posting from a General Journal to a General Ledger

Chapter 5
Posting from a General Journal to
a General Ledger
Terms that you should be familiar
with for this chapter
 Ledger– Is a group of accounts
 General Ledger
– A ledger that contains all accounts needed to
prepare financial statements
 Account Number
– Each account has its own number that
corresponds with where it is located in a chart of
accounts
Company Name
Chart of Accounts
 Balance Sheet
Accounts
 100 (Assets)
– 110 Cash
– 120 Petty Cash
 200 (Liabilities)
– 210 Butler Cleaning
Supp.
 300 (Owners Equity)
– 310 B.F. Capital
– 320 B.F. Drawing
 Income Statement
Accts
 400 (Revenue)
– 410 Sales
 500 (Expenses)
– 510 Advertising
Expense
– 520 Rent Expense
– 530 Utilities Expense
How are the accounts put into the
chart of accounts
 Assets
– By order of Liquidity
 Liabilities
– Alphabetical order
 Owner’s Equity
– Alpha Order
 Revenue
– Alpha order
 Expenses
– Alpha Order
Opening a Account
Account NO 110
Account Cash
Balance
Date
Item
Post Ref
Debit
Credit
Debit
Credit
 Please work on “Work together” and “On
your own” on page 100
Posting from General Journal
to General Ledger
Section 2
 Posting
– Simply taking the information from the General
Journal and placing it into a account where we
can keep track of just its balance.
General Journal
Date
Aug
Account Title
1
Page 1
Doc No
Cash
Post Ref
110
R1
Debit
Credit
10000
Barbara Trevino, Cap
Account
10000
Cash
Account NO
110
Balance
Date
Aug
Item
1
Post Ref
G1
Debit
10000
Credit
Debit
10000
Credit
General Journal
Date
Aug
Account Title
1
Page 1
Doc No
Cash
110
310
R1
Barbara Trevino, Cap
Account
Post Ref
Cash
Debit
Credit
10000
10000
Account NO
110
Balance
Date
Item
Aug
1
Account
Barbara
Trevino, Cap
Post Ref
G1
Debit
Credit
10000
Debit
Credit
10000
Account NO
310
Balance
Date
Aug
Item
1
Post Ref
G1
Debit
Credit
10000
Debit
Credit
10000
What happens when something gets
Notice what type of account this is.
added
from
the
When
thingsor
aresubtracted
debited, they are
added.
When things are credited,
accountthey are subtracted.
Account
Cash
Account NO
110
Balance
Date
Aug
Item
Post Ref
Debit
Credit
Debit
1
10000
10000
3
5000
15000
5
8000
7000
Credit
 Please lets work together on page 105
General Journal
Date
Account Title
Sept
1
Doc. No
Cash
R1
110
M1
310
130
Melanie Komoko, Cap
4
Supplies
Accounts Payable- Signs
Plus
7
Credit
2500
2500
67
67
140
110
330
General Ledger Accounts
195
C1
Cash
10
Debit
210
Prepaid Insurance
Accounts Rec. - Brenden
Otto
Post Ref
S1
330
Acct: Cash
Acct No. 110
Sales
13
General Ledger Accounts
Cash
Acct. Melanie Komoko,
Acct. Accounts
Payable
- Signs
Date
Acct Title
SalesCaptial
PlusAcct.
Insurance
Sept Prepaid
1
Acct.Cash 18 Utilities Expense
Acct. Supplies
Cash
General
T13Ledger Accounts
General
Ledger Accounts
Doc. No. Ledger Accounts
Debit
General
G1
195
1100
Credit
1100
Balance
Acct No. 310
Debit
Credit
Acct
Acct
No. No.
140 210
2500
2500 Accounts
General
C2Ledger
49
Acct No. 110
Balance
Acct No. 130
49
Date
Acct Title
Doc. No.
Debit
Credit
Debit
Credit
Balance
21 Accts
35
Sept
1 Pay. - Signs Plus
G1 C3
2500
2500
Balance
Balance
Balance
Date
Acct Title
Doc. No.
Debit
Credit35
Debit
Credit
Cash Acct Title
Date
Doc.
No.
Debit
Credit
Debit
Credit
Date
Acct Title
Doc. No.
Debit
Credit
Debit
Credit
Date
Doc. No.G1
Debit
Credit
Debit
Credit
Sept27 Cash 4Acct Title
67
67
R2
100
Sept
7
G1
330
Sept
4
67 330
67
Sept
1Accts Rec. - Brenden Otto G1G1
2500
2500
100
30 7Melanie Komoko, Cap
Cash
G1
C4
300 330
300
2170
 Correcting Entry
– When we make a mistake on an entry we have
to change the accounts to change it to the
correct entry
 Proving Cash
– Simple does the amount in our cash account
equal what it says in our checkbook?
 Problems
– 5-1,2,3,4,5
– We will do the computer problem next time in
class. 5-1