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Principles of Accounting, 4th edition1
The Journal and the Ledger
4
Principles of Accounting, 4th edition2 Principles of Accounting, 4th edition2
PowerPoint 29 Chapter 4, Unit 6
The Journal: Where Transactions Are First Recorded (page 1)
Principles of Accounting, 4th edition3 Principles of Accounting, 4th edition3
PowerPoint 29 Chapter 4, Unit 6
• Transactions are first recorded chronologically in the journal.
• The journal contains a complete record of each transaction: date,
account debited and amount, account credited and amount, and
explanation.
• Journals may be completed manually in the form of a book.
• Journals may be completed using a computer and take the form of a
computer file.
The Journal: Where Transactions Are First Recorded (page 2)
Principles of Accounting, 4th edition4 Principles of Accounting, 4th edition4
PowerPoint 30 Chapter 4, Unit 7
Posting to the Ledger (page 1)
Principles of Accounting, 4th edition5 Principles of Accounting, 4th edition5
PowerPoint 30 Chapter 4, Unit 7
Posting to the Ledger (page 2)
• The ledger is a group of accounts.
• Each account contains a complete, up-to-date record of all
transactions affecting only that particular account.
• The ledger may be a manually prepared paper record or a set of files
in a computer system.
• Posting is the process of transferring information to the ledger from
the journal.
Principles of Accounting, 4th edition6 Principles of Accounting, 4th edition6
PowerPoint 31 Chapter 4, Unit 7
Balance-Column Form of Ledger Account (page 1)
Cash
Nov.
Bal.
1
3
5
2000
75
100
2175
1825
Nov
.
3
6
150
200
350
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PowerPoint 31 Chapter 4, Unit 7
Balance-Column Form of Ledger Account (page 2)
• The balance-column form of account provides a balance after each
transaction.
• The DR/CR column indicates whether the balance is a debit or a credit.
• There is less chance of error in the balance-column form of account
than in a T-account.
Principles of Accounting, 4th edition8 Principles of Accounting, 4th edition8
PowerPoint 32 Chapter 4, Unit 7
Determining Account Balances (page 1)
Cash
Oct. 1
4
5
2500
200
1150
Oct. 2
7
1100
550
Principles of Accounting, 4th edition9 Principles of Accounting, 4th edition9
PowerPoint 32 Chapter 4, Unit 7
Determining Account Balances (page 2)
Principles of Accounting, 4th edition10 Principles of Accounting, 4th edition10
PowerPoint 33 Chapter 4, Unit 7
Introducing the Accounting Cycle
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PowerPoint 34 Chapter 4, Unit 8
Source Documents and the Principle of Objectivity
Principles of Accounting, 4th edition12 Principles of Accounting, 4th edition12
PowerPoint 35 Chapter 4, Unit 8
Main MenuSage Simply Accounting Software
Used with permission of Sage Software, Inc. © 2012 Sage Software, Inc. All rights reserved.
Principles of Accounting, 4th edition13 Principles of Accounting, 4th edition13
PowerPoint 36 Chapter 4, Unit 8
General Journal Entry Form Sage Simply Accounting Software
Used with permission of Sage Software, Inc. © 2012 Sage Software, Inc. All rights reserved.
