50 likes | 52 Views
Learn about the General Ledger and Multicolumn Journal in accounting, including how to create accounts, record transactions, and use special columns. Efficiently manage your financial records.
E N D
General Ledger • A General Ledger identifies each account individually and includes posted transactions and balances. • Posting is the process of transferring original entries from the journal to the ledger • Includes details of all transactions for each account. • Grouped by account. • There is a general ledger account for each account that is part of the Chart of Accounts • See blank General Ledger excel file
Case Development-Step 6: General Ledger • Create the General Ledger Accounts • General Ledger forms provided • Beginning balances should be recorded for those accounts that have them. • Sample case: Three accounts have beginning balance: • Cash (debit) $10,000 • Supplies (debit) $500 • Owners Name, Capital (credit) $10,500. • All other accounts begin with a zero balance. • See provided solution: Beginning Balance Sheet
The Multicolumn or Combination Journal • The Multicolumn Journal is used for original entry into the accounting system. • Every transaction must be recorded in the journal as the first step in recording transactions. • All transaction records originate in the Journal, from which they are posted to the General Ledger and advanced through the Accounting Cycle. • Each transaction has a Debit and a Credit entry that will always equal each other • Debit means “left” and Credit means “right” • Nothing more, nothing less • See provided blank Multicolumn Journal
Multicolumn Journal: Special Columns • Efficient way of recording frequently occurring transactions. • Only the totals of the special columns need to be posted. • Significantly decreases the amount of time required to post the Journal entries to the General Ledger. • Some transactions do not make use of a special column and must be listed individually in the GENERAL columns. • See provided blank Multicolumn Journal