Posting to the Ledger

7.1
To-date, we have used a T-account or simple two-sided ledger
account.

The most commonly used ledger account is the balance

column account.

It has three money columns:

one for debit amounts

one for credit amounts

one that shows the account balance.

2
An accounting entry usually affects an item that
does not have an account in the ledger.

Opening an account means you need to prepare

an account page and place it in the ledger.

3
To open an account you:
Go to an unused account page;
Write the name for the new account at the
top of the page. The account name is
known as the account title and will be
written on the back of the page as well.
Write the account number (from the chart
of accounts).
Insert new account in its proper place in the
ledger.

4
Each entry is recorded by date, refer to the
date conventions used in the General Journal
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2007

6
In Chapter 6, you learned that each
accounting entry is first recorded in the
journal (a.k.a. journalizing).
These entries are then transferred, or
posted, to the ledger.
Posting is the process of transferring
information from the journal to the ledger.
Every individual amount recorded in the
journal must be posted separately.

7
For each individual amount entered in the
journal, you must follow six steps.

Five of the steps are performed in the

ledger; one is performed in the journal.

8
1. Turn to the proper account in the ledger.

2. Record the date. Use the next unused line in

the account.

3. Record the page number of the journal in the

posting reference (PR) column of the account.

4. Record the amount in the appropriate debit or

credit column.

9
5. Calculate and enter the new account
balance in the balance column. Indicate
whether it is a debit (DR) or credit (CR)
balance.

6. In the journal, record the account number to

which the posting was made. Enter this in
the posting reference (PR) column on the
same line as the amount being posted.

10
 2007
110

Step 2:
1: Record
3:
4:
5:
6: Select proper
Record the
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indicate if it is DR
or CR.

2007

Aug. 1414 J14 4 2 5 -- DR 1 3 0 2 06

11
2007
110
101

Step 6:
1: Record
2:
3:
4:
5: Select proper
Record the
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new
account
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proper
number
page
and
col.#. in journal.
indicate if it is DR
or CR.

2007

14 J14 1 5 0 -- DR 1 0 5 6 15
12
 2007
110
101
212

Step 2:
1: Record
3:
4:
5:
6: Select proper
Record the
$’s journal
new
account
the in
date.
balance
account
proper
number
page
and
col.#. in journal.
indicate if it is DR
or CR.

2007

Aug. 14
14 J14 2 7 5 -- CR 2 7 5 --
13
14
2007
110
101
212

Cross-Reference: A posting reference confirms that the

entry has been posted to the ledger. No posting reference
in the journal indicates that the entry has not yet been
posted.

15
Cross-Referencing:
 Makes it easy to trace back to the
General Journal.
 Entries in the journal can be followed
through to the ledger.
 If the posting process is interrupted, it is
easy to see what still needs to be posted.

16
Accountants do not erase mistakes.

Errors found immediately are neatly

crossed through and the correction is
written above.

Errors found later can be corrected by

means of an accounting entry.

17
Forwarding is the process of continuing an
account, or a journal, on a new page by
carrying forward the date and the balance
from the previous page.

18
 1. Analyse
transactions 2. Journalize the
9. Prepare post- transactions
closing trial
balance 3. Post to ledger
accounts

8. Journalize and 4. Prepare a trial

post closing entries balance

5. Journalize and
7. Prepare financial post
statements adjusting entries
6. Prepare
adjusted trial
balance
19