Chapter-7-Posting-and-Trial-Balance.ppt

Click to edit Master title style,Click to edit Master text styles,Second Level,Third Level,7-,*,POSTING AND,TRIAL BALANCE,CHAPTER 7,Learning objectives,1.Be able to post entries from journals to general ledger.,2.Be able to conduct trial balance.,Ledgers,General Ledger,Sales Ledger,Purchase Ledger,to avoid the posting errors,General Ledger,collection of the business accounts,is used to classify and summarize transactions,to prepare data for financial statements,often takes the form of simple,two-column T account,.,Posting,The process of transferring transactions,to the general ledger.,Posting is usually done after several entries have been made,for example,at the end of the day,depending on the number of transactions.,Posting,lets look at the example of Stevs Barber Shop,General Journal,Date,Description,Post.,Ref.,Debit,Credit,20,XX,Mar.,3,Cash,Stev Taylor Capital,Investment in business,111,311,$,1,0,000,$,1,0,000,General Journal,Date,Description,Post.,Ref.,Debit,Credit,20,XX,Mar.,7,Haircutting Equipment,Cash,Partial payment of,office equipment.,141,111,Accounts Payable,211,$,2,4,00,$,1,4,00,1,000,General Journal,Date,Description,Post.,Ref.,Debit,Credit,20,XX,Mar.,19,Cash,Haircutting,Service,Revenue,Performed a service,and collected fees.,111,311,$,1,400,$,1,400,Date,Description,Post.,Ref.,Debit,Credit,20,XX,Mar.,24,Stev Taylor,Withdrawals,Cash,Withdrew money,from the business.,321,111,$,4,80,$,4,80,General Journal,Cash,Date,Item,Post.,Ref.,Debit,Credit,Balance,Debit,Credit,20,XX,Mar.,3,$,1,0,000,$,1,0,000,$,1,400,8,600,7,19,1,400,10,000,24,4,80,9,520,Stev Taylor,Capital,Date,Item,Post.,Ref.,Debit,Credit,Balance,Debit,Credit,20,XX,Mar.,3,$,1,0,000,$,1,0,000,Haircutting Equipment,Date,Item,Post.,Ref.,Debit,Credit,Balance,Debit,Credit,20,XX,Mar.,7,$,2,4,00,$,2,4,00,Haircutting Service Revenue,Date,Item,Post.,Ref.,Debit,Credit,Balance,Debit,Credit,20,XX,Mar.,19,$,1,400,$,1,400,Stev Taylor,Withdrawals,Date,Item,Post.,Ref.,Debit,Credit,Balance,Debit,Credit,20,XX,Mar.,24,$,4,80,$,4,80,Trial Balance,If there are no errors in the,journals and the journals are,posted correctly to the,general ledger,the total,of the debits should equal,the total of the credits.,Trial Balance,Why dont debits equal credits?,Some errors exist in the recording or calculating,Calculate a ledger account balance wrongly.,Summarize the debits and credits of the trial balance wrongly.,Errors in the journal entry,Errors in posting entries from journals to ledgers,Errors in transferring balances from the ledger to the trial balance,Errors,Errors in the journal entry,A wrong number in the journal entry,Part of compound entry omitted,Account omitted,Errors in posting entries from journals to ledgers,A wrong number in the journal entry,Error in posting a debit or credit to the proper column,Account omitted,Errors in transferring balances,A wrong number in the journal entry,Error in transferring a debit or credit to the proper column,Account omitted,WE ARE SAILING RIGHT ALONG!,