Friday, July 15, 2011
POSTING and GENERAL LEDGER
General Ledger and Their Uses
Example:
Types of General Ledger
Balance column account
- There is a column for debit posting
- A column to show the balance of the account if it’s a debit balance
- A column to show te balance of the account if it happens to be a credit balance
POSTING
- Posting is the transfer of accounting information from a journal to a ledger
- This procedure is necessary in order to gather together the effects of business transactions on each type of asset, liability, and capital account.
- At the end of a time period, summary totals of this account information can be compiled for use in the preparation of a trial balance and financial statement
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