Fundamentals of Accounting - Posting & Trial Balance
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1. The document discusses the accounting cycle and posting procedures for the general ledger and subsidiary ledgers. 2. It provides examples of accounts that would appear in a chart of accounts, including asset, liability, equity, revenue and expense accounts. 3. It also shows how to open and post transactions to general ledger accounts, with debits and credits, to keep track of account balances.
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Fundamentals of Accounting - Posting & Trial Balance
- 1. POSTING THE GENERAL LEDGER AND SUBSIDIARY LEDGER POSTING PROCEDURES TRIAL BALANCE By: John Paul Espino De La Salle University – Dasmarinas Facebook.com/Johnpaul.dss
- 3. The Accounting Cycle Input: Transactions (Documents) Journalizing (Books of Original Entry: Journals) Posting (Books of Final Entry: GL / SL Adjusting Entries Trial Balance Adjusted Trial Balance Financial Statements (FS) Audited FS Closing Entries Post Closing Trial Balance New Reporting Period
- 4. Posting Procedures 1. Prepare the Books of Original Entry (General Journal). 2. Open the General Ledger (GL) Accounts (Refer to Chart of Accounts). 3. Enter each Journal Entry in the respective GL Account. This is called posting. 4. If all Journal Entries are entered in each GL account, add all entries on debit and credit. 5. Foot the addition. 6. Get the balance for each account.
- 5. Account Code Current Assets 111 Cash 121 Accounts receivable 131 Merchandise Inventory 141 Prepaid expense 151 Supplies Non Current Assets 211 Building 221 Furnitures and Fixtures 231 Equipment 241 Vehicles 410 Current Liabilities 411 Accounts payable 412 Accrued liabilities 422 Loans payable (short) 450 Non Current Liabilities 461 Loans payable (long) 471 Mortgage payable 501 Owner, Capital 521 Owner, Drawing Chart of Accounts Equity Assets Liabilities
- 6. Expanded Accounts Expenses and Revenue Accounts 600 611 Service Income 700 701 Salaries 711 Rent 712 Utilities 713 Insurance 714 Used Supplies Expenses Revenue/ Income
- 7. OpenGeneral Ledger for EachAccount (Reference Chart ofAccounts) 101 Debit Credit CASH Date Explanations Ref. Debit Credit Balance 102 Debit Credit ACCOUNTS RECEIVABLE Date Explanations Ref. Debit Credit Balance
- 8. Open General Ledger for Each Account (Reference Chart of Accounts) 101 Debit Credit 102 Debit Credit 103 Debit Credit 201 Debit Credit 202 Debit Credit OFFICE SUPPLIES OFFICE EQUIPMENT Date Explanations Ref. Debit Credit Balance Date Balance Debit Credit CASH Date Explanations Ref. Debit Credit Balance Date Explanations Ref. ACCOUNTS RECEIVABLE DELIVERY VAN Date Explanations Ref. Explanations Ref. Debit Debit Credit Balance Credit Balance
- 9. 301 Debit Credit 501 Debit Credit 502 Debit Credit 601 Debit Credit 701 Debit Credit 702 Debit Credit WAGES EXPENSE Date Explanations Ref. Debit Credit Balance RENT EXPENSE Date Explanations Ref. Debit Credit Balance DELIVERIES FEES EARNED Date Explanations Ref. Debit Credit Balance DEER, DRAWINGS Date Explanations Ref. Debit Credit Balance DEER, CAPITAL Date Explanations Ref. Debit Credit Balance ACCOUNTS PAYABLE Date Explanations Ref. Debit Credit Balance
- 10. 111 411 461 121 501 141 521 142 611 151 701 221 711 231 712 241 713 714 Rent expense Utilities Interest Miscellaneous Equipment Shop tools Furnitures and fixtures Accounts payable Loans payable Owner, capital Owner, drawing Service income Salaries expense Prepaid insurance Prepayment to Suppliers Supplies Cash Accounts receivable