CHAPTER 7: Posting to the Ledger
Posting
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Transferring data from the journal to the ledger
Classify the effects of transaction on specific accounts
Journal’s data is raw information
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Ending Balance
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Difference between total credits and debits
The digits in an amount is incorrectly decreased
or increased
Ex. 1,000 amount is recorded as 100 or 100,000
When digits in an amount are interchanged
Ex. 15,652 amount is recorded as 15,625 or
15,265
Recording Process
Error not Revealed
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Identify the account titles affected by the
transaction and the effect of the transaction on
these accounts (increase or decrease)
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Transaction recorded in debit and credit form
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Debit and credit of the journal entry are
transferred in the ledger
Ex.
1. Omitting entirely the entry for a transaction
2. Journalizing or posting an entry twice
3. Using a wrong account with the same normal
balance as the correct answer
4. Wrong computation with same erroneous
amount posted to the both credit and debit side
Preparing the Unadjusted Trial
Balance
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List of general ledger accounts and their
balances
To check the equality of total debit and credit to
the ledger
Preparation of the financial statements
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Prepared after adjusting entries
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Prepared after the closing process
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Errors Revealed by a Trial Balance
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Can caused the totals unequal
Example:
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A debit without credit side, vice versa
Do not caused the totals unequal
Remember
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Debit side: Assets and Expense
Credit side : Liabilities, Equity and Income
Trial Balance account titles order: A, L, E, I, Ex