NORTHERN SECONDARY SCHOOL 1 Chapter 7 Posting. NORTHERN SECONDARY SCHOOL 2 Accounting Cycle So Far

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1

Chapter 7Posting

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2 Accounting Cycle So Far

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3 Traditional T Account

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4Standard Ledger Account

P101

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5 Steps In Posting

1. Turn to correct ledger page

2. Record date on next blank line

3. Record source journal, “j” for General Journal (GJ), and page number

4. Record entry amount in Dr OR Cr column

5. Calculate and enter new balance in balance column

6. Record ledger account # under “PR” in GJ

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6 Start With General Journal

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7 Complete Ledger Entry

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8 Complete Journal

Note this journal entry changes 3 ledger accounts (recall this is called a “compound entry”)

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9 First Cr EntryNote method for

carrying previous page balance forward

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10 Journal Entry 2

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11 Third Ledger Entry

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12 Final Journal Posting

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13 Summary See p.214 & 215

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14 Correcting Errors

• How to correct an error depends on when you find it

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15Correcting Journal Entries

Found Immediately

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16Correcting Ledger Entries

Made Immediately

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17 Correcting Entry

752.00 Supply debit accidentally posted to Equipment.

Oops!

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18Record Correcting

Journal Entry

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19 Post Correcting Entry

Wrong entry counter balanced

Correct Amount Remains

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20 Forwarding To A New Page

Last entry completed

First entry just carries

balance

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21 Dealing With Errors

1. Dif = ten multiple re add T.B. and ledgers

2. Dif = trans amount re check trans.

3. Dif/2 = check for amount.

4. Dif multiple of 9 transposition.