11 terms

Chapter 4

STUDY
PLAY
Ledger
A group of accounts.
General Ledger
A ledger that contains all accounts needed to prepare financial statements.
Account Number
The number assigned to an account.
File Maintenance
The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current.
Opening an Account
Writing the account title and number on the heading of an account.
Posting
Transferring information from a Journal entry to a ledger account.
Correcting Entry
Using a journal entry to correct a previous entry that was improperly journalized and posted to the ledger.
Two Rules of Posting
1. Separate amounts in the journals general amounts columns are posted individually to the account written in the account title column
2. Separate amounts in special amount columns are NOT posted individually. Totals in special amount columns are posted once at the end of the month
How do I open an account?
1. Write an account title
2. Assign an account number
In a three digit account numbering system. What does the first digit stand for? The second two?
First digit represents the general ledger division of the account. The second two represent the location of the account within that division.
List the 5 account divisions
1.Assets
2.Liabilities
3.Owner's Equity
4.Sales
5.Expenses
YOU MIGHT ALSO LIKE...