posting

formal set up accountants use

balance column account

three money columns

• Debit
• Credit
• Balance

this way balances stand out

opening an account

steps to open an account

• Obtain an unused account page
• Name at the top. Called 'account title'
• Write account number
• Insert account in proper place in ledger

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

six steps

turn to the proper account in the ledger

record date

record page number

record the amount

calculate and enter new balance

record the account number to which posting was made

cross referencing

three reasons to cross reference

• Entries can be easily traced back to their source in journal
• Entries can be followed through the accounts to see where they're posted
• If posting process is interrupted, it's easy to tell where to begin again.

correcting errors in books

errors found immediately

errors found later

Let's say I debited the equipment account instead of the A/R - Kelebozian account... Now what?

correcting journal entry

forwarding procedure

pg 219 exercise 1-3