1. Posting to the General Ledger
and Preparing the Trial Balance
1 August 2013
• There is a need for another record in which data
appearing in the journal may be summarized to
show the status of each item or account.
• A group of accounts constitutes a ledger.
• The general ledger is also known as the book of
• The process of transferring the data from journal
entries to the individual account in the ledger is
3. Forms of General Ledger
Running Balance Form
4. The Chart of Accounts
• A chart of accounts is a listing of all the account
titles being used by the business in its operations
including their respective account numbers, at
the time the business is organized.
5. The Trial Balance
• The trial balance is a list of schedule of open
accounts in the general ledger with their
corresponding account balances, i.e., the
difference between the total debits and total
credits of an account in the ledger.
• It is prepared to verify the equality of debits and
credits in the ledger at the end of each
accounting period or at any time the postings are
6. The Trial Balance, Characteristics:
• It is a list of accounts.
• The list of accounts is unclassified; it does not
attempt to state whether accounts listed are
assets or liabilities, current or long term.
• The accounts listed are normally those with open
balances, that is, they have peso amount
• The accounts are listed in ledger orders
7. The Trial Balance, Limitations:
Experience proves that not all the trial balances
that we prepare are balanced. The following are
the steps in locating errors in the trial balance:
• Prove the addition of the trial balance by adding
columns in the opposite direction from that
8. The Trial Balance, Limitations:
• If the error does not lie in the
addition, determine the exact amount by which
the trial balance is out of balance. The amount of
the discrepancy is often a clue to the source of
9. The Trial Balance, Limitations:
• If the difference is divisible by 9, this suggests
• Transposition Error - An interchange in the
order of the digits of a number, e.g., 87 for 78;
453 for 354; 1234 for 4231; etc.
• Transplacement Error - Also known as sliding
error, occurs when some or all the digits of a
number are moved one or more places to the left
or right, e.g., 450.00 written as 45.00 or as 4.50
or as 4005.00.
10. The Trial Balance, Limitations:
• If the difference is an even number, divide it by
2. The quotient could be the balance of an
account that is erroneously copied to the trial
balance on the wrong side or the amount of a
journal entry that is posted on the wrong side of
11. The Trial Balance, Limitations:
• Compare the amounts in the trial balance with
the balances in the ledger. Be sure that no
account is omitted.
• Recompute the balance of each ledger account.