2. LEDGER- the book where the transactions recorded from the
journal will be transferred for final recording.
POSTING – the process of transferring entries from the Journal to
the Ledger. (3rd step in the accounting cycle)
- It also means the updating the ledger accounts for the effects of
the transactions recorded in the journal.
- It is merely copying carefully what has been footed in the ledger. •
The transfer of entries from the journal to the ledger is actually the
sorting process which means putting each value in a certain place
according to its kind, class or nature. This refers to classifying,
which is the second phase of accounting.
3. FOOTING- is the process of adding each of the two amount
columns of an account or item in the general ledger and finding
their balances thereof. - After posting the journal entries to the
ledger, the amounts of debit and credit are being totaled and
usually done at the end of each month.
• If an account is a debit balance (debit total is bigger than the
credit), the amount of difference is placed on the particular
column of the debit side.
• If the account. On the other hand is a credit balance (credit total
is bigger than debit total), the amount of difference is placed on
the particular column of the credit side.
• If there is only one entry in any side of an account in the ledger,
no footing is done and the entry is left “as is”.
4. OPEN ACCOUNTS or OPEN BALANCES – accounts which
resulted to have debit or credit balances.
• These account balances will comprise the Trial Balance.
5. A trial balance has the following headings:
a. Name of the business or proprietor
b. Title of the report
c. Period covered by the report
The purpose of preparing a trial balance is to check the
arithmetical or mathematical accuracy in postings and
footing of the debit and credit entries of accounts in the
General Ledger.
** All account titles appearing in the Chart of Account are
being provided with one ledger each.
6. Single rule- represents by a single line
Double rule – represents by a double line
- It signifies that the trial balance is already “balance”
- The trial balance is said to be “in balance” if the total debit
will equal with that of the total credit. If not, the trial
balance is said to be “out of balance”.
- When the trial balance is “in balance”, we take an
assumption that no error has been committed in the
process of journalizing and posting.
7. Some errors and omissions committed that will result a trial
balance to be “in balance” are follows:
1. A transaction may not have been recorded in the journal.
2. A journal entry may not have been posted in the ledger in
it’s entirely.
3. 3. Posting a correct amount to a wrong account. 4. Wrong
charging of account title in the journal entry and was
carried to posting in the ledger.
8. Some errors and omissions committed that will result a trial
balance to be “out of balance” are follows:
1. The footing of the debit and credit columns of the trial
balance is wrong.
2. An account with “open balance” in the General Ledger
was not listed in the trial balance.
3. The footing of the account balance in the General ledger
is wrong.
4. Posting the amount of an item to the wrong side of the
account or ledger
9. 5. Omission in posting of either debit or credit entry in the
journal.
6. The balance of an account is listed in the trial balance with
a wrong amount, such as transposition of the amount or
sliding of the amount or listing a different amount from the
correct one.
FORCED BALANCE- when a deliberate or an intentional act is
done by letting it appear that the trial balance is “in balance”
although actually “out balance” by changing the amount or
changing an account with the amount of the unallocated
difference. - It is never permissible in the accounting practice.
