Chpt 7 – Posting to the Ledger

Recall T- Accounts. These were a _______

_______ where we could post transactions as they occurred.

Now that we have learned how to journalize transactions we need to determine the balance of our accounts by posting to a ledger (instead of t-accounts)

Where are we in the Accounting Cycle?

1. Transaction Occurs (Source Document)2. Transaction Recorded in Journal3. _____________________________4. ______________________________ 5. Worksheet Prepared & Adjusting Entries

completed.6. Financial Statements Prepared.7. Ledger Accounts Adjusted & Closed8. Closing Trial Balance Prepared.

A Ledger AccountA proper ledger is called the balance column account.

It has 3 columns:

1. One for amounts

2. One for amounts

3. One for the _________

***one column for balance increasing, one for balance decreasing and one for the final balance.

Posting

Posting is the process__________

___________________________

___________________________ Every individual amount recorded

in the journal

5 Steps for Posting in the Ledger

1. Turn to the proper account in the2. ______________ Use the next unused line

in the account.3. Record the ____________of the ________

(where the transaction was recorded) in the P.R. column. Ex –_______________

4. Record the in the proper column – .

5. and enter the new account balance in the . Indicate whether the balance is a .

One step in the Journal Now that you are done with the ledger, you

must go back to the journal and record that you have posted that transaction.

1. In the Journal . Enter this in the (P.R.) column.

Now let’s see an example!!!

Accounting data in this journal entry has not yet been transferred to the ledger

An Example of Posting

Step 1:

Step 1

Step 2:

Step 2

Step 3:

Step 3

Step 4 -

Step 4

Step 5:

Step 5

Step 6:

***Now you will do the same for Bank & A/P

Step 6

Cross-Referencing Cross-referencing is the recording of the journal

page number in the account and the recording of the account number in the journal.

3 reasons we do this:

1. Entries can be ______________

2. Entries can be _____________.

3. It is easy to tell where we have__________

____ and where we need to___________

Forwarding

Forwarding is the process of continuing an account on a new page by_______________

____________________________________

____________________________________

On the last line of the ledger write in the particulars column. On the new page for that account write the previous date and balance and state again,_______________

. See pg. 232 for example.