Chapter 4, Accounting 1
the last step in the posting process is to write the
acc. # in the post. ref. column of the journal
the second step in the posting procedure is to write the
acc. # in the post. ref. column of the journal
When accounts are arranged in a general ledger, account numbers are assigned, and the chart of accounts is kept up to date, the accounting personnel are
doing file maintenance
the first digit in the acc. # 520 means that the account is in the
expense division of the gen. ledger
Errors discovered after an entry is posted may be corrected by ruling through the item.
f
If the payment of cash for rent was journalized and posted in error as a debit to Miscellaneous Expense instead of Rent Expense, the correcting entry will include a credit to Cash.
f
The posting reference should always be recorded in the journals post ref column before amounts are recorded in the ledger
f
a journal shows in one place all the changes in a single account
f
the only use for the post. ref. column of a journal and gen. journal is to indicate which series in the journal still need to be posted if posting is interrupted
f
the steps for posting are to write the date, the journal page #, the amount, and the balance
f
the two steps for opening an account are writing the acc. title and recording the balance
f
If an error requires a correcting entry, the source document describing the correction to be made
is a memorandum
posting references in a journal are
none of these
If posting is interrupted, the accounting personnel know to resume posting
on the line with a blank post. ref. column in the journal
the procedure for transferring info from a journal entry to a ledger acc. is
posting
Determining that the amount of cash agrees with the accounting records is
proving cash
All corrections for posting errors should be made in a way that leaves no question as to the correct amount.
t
If the previous account balance and the current entry posted to an account are both debits, the new account balance is a debit.
t
The account # is placed in the post ref. column of the journal
t
When adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account number 515
t
When posting is complete, the Post. Ref. column in the General Journal is completely filled in with account numbers
t
a group of accounts is called a ledger
t
the cash account is the 1st asset and is numbered 110
t
the procedure of arranging accs. in a gen. ledger, assigning acc #s, and keeping records current is known as file maintenance
t
an acc. # in the journal's post. ref. column shows
the acc. to which an amount is posted