4.4 Posting to the ledger

Question 1

Posting

Answer 1

is the process of transferring information from the journal to the ledger

-T-Account = simple form of a ledger
- Don’t total until all transactions are entered.

Question 2

balance column account in the ledger

Answer 2

has three money columns; DR, CR and Balance

Question 3

Opening an Account

Answer 3

means preparing an account page and placing amounts in the proper place in the ledger

• Write the account name
• Write in the account number
• Enter the account in the proper place in the ledger

Question 4

Six Steps in Posting

Answer 4

1. Find the proper account in the ledger
2. Record the date
3. Record the page number of the journal in the PR column

4.Record the amount

5. Calculate and enter the new account balance, indicate DR or CR
6. IN THE JOURNAL: Record the account number to which the posting was made in the PR column.

Question 5

Cross-Referencing

Answer 5

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

Question 6

There are 3 reasons for cross-referencing:

Answer 6

1. Entries in the ledger accounts can easily be traced back to the journal
2. Entries in the journal can be followed through into the ledger accounts
3. As you work through the entries, you can see where you left off, to continue entering into the ledger accounts

Question 7

Correcting Errors

Answer 7

The best way to correct an error is by using a correcting entry

Question 8

A correcting entry

Answer 8

is an accounting entry that cancels the effect of an error

Question 9

Forwarding Procedure

Answer 9

Forwarding is the process of continuing an account on a new page, by carrying forward the date and balance from the completed page

Question 10

The Accounting Cycle

Answer 10

1. Transactions Occur
2. Record transactions in Journal
3. Post to Ledger Accounts
4. Trial Balance