Lesson 04-2-G

LESSON 4-2 Posting from a General Journal to a General Ledger and Proving Cash Learning Objectives LO5 Post amounts from a general journal. LO6 Demonstrate how to prove cash. Posting an Amount from the Debit Column of a General Journal Transferring information from a journal entry to a ledger account is called posting. LO5 Lesson 4-2 SLIDE 2 Posting an Amount from the Debit Column of a General Journal 1. Write the date. 4. Write the new account balance. 2. Write the journal page number. 3. Write the debit amount. 5. Return to the journal and write the account number. 5 4 1 3 2 LO5 Lesson 4-2 SLIDE 3 Posting an Amount from the Credit Column of a General Journal 1. Write the date. 4. Write the new account balance. 2. Write the journal page number. 3. Write the credit amount. 5. Return to the journal and write the account number. 5 4 1 3 2 LO5 Lesson 4-2 SLIDE 4 Posting a Debit Amount to an Account with a Balance 1. Write the date. 4. Write the new account balance. 2. Write the journal page number. 3. Write the debit amount. 5. Return to the journal and write the account number. 5 4 3 1 2 LO5 Lesson 4-2 SLIDE 5 Posting a Debit Amount to an Account with a Credit Balance 1. Write the date. 4. Write the new account balance. 2. Write the journal page number. 3. Write the debit amount. 5. Return to the journal and write the account number. 5 4 3 1 2 LO5 Lesson 4-2 SLIDE 6 Journal Page with Posting Completed LO5 Lesson 4-2 SLIDE 7 General Ledger with Posting Completed LO5 Lesson 4-2 SLIDE 8 General Ledger with Posting Completed LO5 Lesson 4-2 SLIDE 9 Proving Cash Determining that the amount of cash agrees with the balance of the Cash account in the accounting records is called proving cash. If the cash balance as shown in the checkbook equals the cash balance in the Cash account, cash is proved. LO6 Lesson 4-2 SLIDE 10 Lesson 4-2 Audit Your Understanding 1. List the five steps of posting from the general journal to the general ledger. ANSWER 1. Write the date in the Date column of the account. 2. Write the journal page number in the Post. Ref. column of the account. 3. Write the amount in the Debit or Credit column. 4. Calculate and write the new account balance in the Balance Debit or Balance Credit column. 5. Return to the journal and write the account number in the Post. Ref. column of the journal. Lesson 4-2 SLIDE 11 Lesson 4-2 Audit Your Understanding 2. When both debit and credit amounts have been posted to an account, what determines whether the balance is a debit or a credit? ANSWER Whenever the debits in an account exceed the credits, the balance is a debit. Whenever the credits in an account exceed the debits, the balance is a credit. Lesson 4-2 SLIDE 12 Lesson 4-2 Audit Your Understanding 3. Which two amounts are compared when proving cash? ANSWER The cash balance as shown in the checkbook and the cash balance in the Cash account. Lesson 4-2 SLIDE 13