Bookkeeping 11

Question 1

1. How are JOURNAL entries posted?

Answer 1

Each JOURNAL LINE must be SEPARATELY carried forward, or POSTED, to its corresponding Ledger Account

Question 2

2. What is a TRIAL BALANCE?

Answer 2

At the end of an accounting period, WHEN EVERY ITEM FROM THE JOURNAL for that period has been posted TO THE LEDGER ACCOUNTS, the DEBITS and CREDITS are verified in the TRIAL BALANCE.

Question 3

3. What is the first step for the TRIAL BALANCE?

Answer 3

a. Find the ACCOUNT BALANCE of every LEDGER ACCOUNT by adding the DEBIT column, adding the CREDIT column, subtracting the SMALLER SUM FROM THE LARGER SUM, and writing the remainder on the LARGER SIDE.

Question 4

4. You go through the process of finding the ACCOUNT BALANCE for each ACCOUNT in the LEDGER and then you:

Answer 4

make a schedule listing each ACCOUNT NAME, NUMBER, AND BALANCE.
The sum of all the DEBIT balances should equal the sum of the CREDIT balances.