Transcript Provincial Sales Tax (PST)

 Unit
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3: Chapter 7 Posting
I will take up the answers for Unit 2 Test
today after the lesson.
Youtube clip: “General Journal and Ledgers” by
MattFishe for people who want to listen to the
lesson one more time.
Chapter 7 Quiz on next Tuesday Nov 3
Transactions
occur.
Entries
recorded in
journal.
Posting from
the journal
to the ledger
accounts.
Ledger
balance by
means of
trial balance.
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There are two important books in accounting:
General Journal and Ledger.
The General Journal is an ongoing record of
all business transactions. It is like diary or
journal.
For each account (e.g. Bank, Accounts
Receivable, Drawings) there is also an
ongoing record  a ledger.
The process of transferring the numbers from
the General Journal to the ledger is called
POSTING.
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So far, we considered only T account for Ledger.
However, there is a second kind of Ledger called
“Balance Column Account”, which has three
columns: (similar to T account)
1. Debit column
2. Credit column
3. Balance column (running balance)
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BCA shows the account balance after each entry.
Bank
5 000
350
700 1 750
200
960
450
6 350 3 060
3 290
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“P.R.” : Posting Reference number, and this
indicates the page number of your journal
“Dr/Cr” : indicates whether the balance is
debit balance or credit balance.
“No 101” indicates the account number of
Bank account.
After the posting has been completed, the P.R. in
the General Journal should be the Ledger account
number.
** Cross referencing ** -- the ledger references the
journal and visa versa. These are the two reasons
why we insert P.R. in both GL and BCA:
1.Good for tracing (or auditing) entries between
the journal and the ledger
2.Helps you to know what has been posted
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5 Steps in the Ledger (Balance Column Account)
1. Turn to page, which contains the particular
account in ledger.
2. Record the date on the next line.
3. Record the journal page number in “PR”
column.
4. Record the amount in Debit or Credit column.
5. Calculate and enter new account balance and
note whether it’s a DR or CR balance.
Last step in the Journal
6. Record the ledger’s account number
in the journal.
 By doing step 6, you are checking off
to show that the journal entry has
been posted.
 This action is important when finding
errors after making trial balance.
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Review Questions #1 to 4 and 6 to 9 (P233)
Exercises #1 and #2 (P233)