Accounting I Chp 4

The two steps for opening an account are writing the account title and recording the balance.

The steps for posting are to write the date, the journal page number, the amount, and the balance. 

The account number is placed in the Post. Ref. column of the journal as the last step in the posting procedure.

The posting reference should always be recorded in the journal's Post Ref. column before amounts are recorded in the ledger. 

A group of accounts is called a ledger.

The procedure of arranging accounts in a general ledger, assigning account numbers, and keeping records current is known as file maintenance.

Account numbers may be assigned by 10s so that new accounts can be added easily. 

Errors discovered after an entry is posted may be corrected by ruling through the item.

The Cash account is the first asset account and is numbered 110.

When posting is complete, the Post. Ref. column of the journal is completely filled in with account numbers.

The only use for the Post. Ref. column of a journal and general ledger is to indicate which entries in the journal still need to be posted if posting is interrupted. 

If the payment of cash for rent was journalized and posted in error as a debit to Miscellaneous Expense instead of Rent Expense, the correcting entry will include a credit to Cash.

If the previous account balance and the current entry posted to an account are both debits, the new account balance is a debit. 

All corrections for posting errors should be made in a way that leaves no question as to the correct amount. 

When adding a new expense account between accounts numbered 510 nd 520, the new account is assigned the account number 515.