Lecture Notes: Posting to the Ledger

Introduction

• Moving on to the third step of the accounting cycle: Posting to the ledger.
• Importance of posting to various social media platforms mentioned (Facebook, Instagram, etc.).

Key Concepts

• Ledger: A tool used for recording financial transactions.
• Journal: A record where transactions are initially recorded before posting to the ledger.
• Posting: Transferring amounts from the journal to the ledger.
• Debit and Credit: Essential concepts in accounting. Debits must equal credits.

Steps for Posting

1. Prepare Tools: Have calculators, journals, and papers ready.
2. Identify Transactions: Focus on transactions from May 1 to May 31.
3. Chronological Order: Record entries in chronological order.
4. Account Classification: Classify accounts into assets, liabilities, and owner's equity.

Accounts Overview

• Assets: Cash, Accounts Receivable, Supplies, Prepaid Rent, Service Vehicle, Office Equipment.
• Liabilities: Notes Payable, Accounts Payable, Utilities Payable.
• Owner's Equity: Capital Investment.
• Revenues and Expenses: Consulting Revenue, Salaries Expense, Utilities Expense.

Ledger Structure

• T-Accounts: Each account has a debit side and a credit side.
• Posting Entries: For each entry:
  • Write the date.
  • Specify the particulars (transaction details).
  • Record amounts in either debit or credit side.

Example of Posting

• Investment Entry:
  • Date: May 1, 2020
  • Debit Cash: 250,000
  • Posting Reference: GJ1 (General Journal 1)
• Continue posting for other transactions (e.g., cash transactions, liabilities).

Balancing the Ledger

• Total Amounts: Ensure debit and credit totals balance.
• Calculate Balances:
  • Debit side total: 496,400
  • Credit side total: 488,680.50
  • Difference must be accounted for.

Conclusion

• Review and check for accuracy in postings.
• Emphasize the importance of keeping organized records for future reference.
• Encourage subscribing to the channel for more accounting insights.

Reminder

• Ensure to keep all notes and records organized for easy access and review in future classes.