FINANCIAL ACCOUNTING

&
REPORTING
(Fundamentals)

ZEUS VERNON B. MILLAN

Chapter 7: Posting to the Ledger (FAR by:
Millan)
 Chapter 7
Posting to the Ledger

Learning Objectives
1. Post transactions in the ledger.
2. Prepare the unadjusted trial balance.

Chapter 7: Posting to the Ledger (FAR by:

Millan)
 Posting

Posting, the third step in the accounting cycle,

is the process of transferring data from the
journal to the appropriate accounts in the
ledger.

Chapter 7: Posting to the Ledger (FAR by: Millan)

 Example of posting:
Transaction: Jan. 8 - Services worth ₱30,000
were rendered for cash.

Journalizing:

Chapter 7: Posting to the Ledger (FAR by: Millan)

 Example of posting (continuation)
Posting

Chapter 7: Posting to the Ledger (FAR by: Millan)

 Trial balance
• A trial balance is a list of general ledger
accounts and their balances. It is prepared
to check the equality of total debits and
total credits in the ledger.

Chapter 7: Posting to the Ledger (FAR by: Millan)

 Types of Trial balance

a. Unadjusted trial balance – this is prepared

before adjusting entries are made.
b. Adjusted trial balance – this is prepared
after adjusting entries but before the
financial statements are prepared.  
c. Post-closing trial balance – this is prepared
after the closing process.

Chapter 7: Posting to the Ledger (FAR by: Millan)

 Errors revealed by a trial balance
1. Journalizing or posting one-half of an entry,
i.e., a debit without a credit, or vice versa.
2. Recording one part of an entry for a
different amount than the other part.
3. Errors of Transplacement (Slide error) on
one side of an entry.
4. Error of Transposition on one side of an
entry.
Chapter 7: Posting to the Ledger (FAR by: Millan)
 Errors not revealed by a trial balance

1. Omitting entirely the entry for a transaction

2. Journalizing or posting an entry twice
3. Using wrong account with the same normal
balance as the correct account
4. Wrong computation with the same
erroneous amounts posted to debit and
credit sides

Chapter 7: Posting to the Ledger (FAR by: Millan)

 APPLICATION OF CONCEPTS
 

PROBLEM 1: FOR CLASSROOM DISCUSSION

Chapter 7: Posting to the Ledger (FAR by: Millan)

OPEN FORUM
QUESTIONS????
REACTIONS!!!!!

Chapter 7: Posting to the Ledger (FAR by:

Millan)
END

Chapter 7: Posting to the Ledger (FAR by:

Millan)