POSTING TO THE LEDGER? Here's a TAGLISH discussion on how to do the STEP 3 of the ACCOUNTING CYCLE.

Summary

In this video, the host guides viewers through the third step of the accounting cycle—posting to the ledger. They explain the importance of accurately transferring amounts from the journal to the ledger, using tools like calculators and prepared account numbers. The process involves categorizing debits and credits while ensuring all transactions from assets, liabilities, equity, revenues, and expenses are correctly recorded. The host emphasizes the importance of precision and offers tips on organizing accounts. The video concludes with a call to subscribe and stay updated for future lessons on the accounting cycle.

Takeaways

• 📄 The speaker discusses the third step of the accounting cycle, which is posting to the ledger.
• 🖊️ To begin, participants should prepare a calculator, journal, or paper for this process.
• 📆 The posting process involves transferring amounts from the journal to the ledger, which helps track transactions chronologically.
• 💸 Key accounts discussed include cash, accounts receivable, supplies, prepaid rent, and office equipment for assets, as well as notes payable and accounts payable for liabilities.
• 🧾 Participants are reminded to take note of debits and credits for each transaction, ensuring accuracy when transferring from the journal.
• 📚 Posting references and account numbers must be included, such as 110 for cash and 210 for notes payable, helping to organize the transactions.
• ✏️ The speaker emphasizes using pencil for ledger entries to ensure corrections can be made if necessary.
• 💰 The ledger must balance with totals for cash, liabilities, and other accounts after all transactions are posted, ensuring the correctness of the financial data.
• 🧮 The speaker provides examples, such as cash entries for 250,000 pesos and crediting prepaid rent, highlighting real-world application.
• 🔔 Viewers are encouraged to subscribe to the channel and hit the notification bell for updates on more accounting cycle steps in future videos.

Q & A

What is the third step in the accounting cycle mentioned in the video?

The third step in the accounting cycle is posting to the ledger. This step involves transferring amounts from the journal to the respective ledger accounts.

What tools and materials are recommended to follow along with the process in the video?

The video recommends preparing a calculator, a journal or papers, and a pen or pencil. These tools will help in tracking and organizing the entries when posting to the ledger.

What does 'posting' in accounting refer to?

Posting refers to the process of transferring amounts from the journal to the ledger accounts. This is where you record debits and credits based on journal entries.

Why is it important to write the account number when posting in the ledger?

It is important to write the account number when posting in the ledger to ensure clarity and organization. This helps in identifying the specific accounts, such as cash or liabilities, being affected by each transaction.

What is the function of the posting reference in the ledger?

The posting reference connects the journal entry to the ledger. It serves as a reference to track where the journal entry is recorded in the ledger, ensuring that every journal entry has been properly posted.

Can you give an example of a transaction posted in the ledger?

An example given in the video is an investment on May 1, 2020, where cash was debited by 250,000 pesos, and the entry was posted in the ledger with a posting reference of GJ1 (General Journal 1).

What accounts are typically affected when posting to the ledger?

The accounts affected include assets (like cash, accounts receivable, prepaid rent), liabilities (such as notes payable and accounts payable), equity (capital), revenues, and expenses (salaries, utilities).

How are debits and credits recorded in the ledger?

Debits are recorded on the left side, and credits are recorded on the right side of the ledger. Each entry includes the date, particulars, and posting reference, along with the respective amounts in the debit or credit column.

Why is it important to balance the ledger at the end of the period?

Balancing the ledger ensures that the total debits equal the total credits, verifying that all transactions have been accurately recorded and that the financial accounts are in balance.

What should be done if there is insufficient space on one page of the ledger?

If there is insufficient space on one page, the video suggests continuing the transactions on the next page, ensuring proper alignment and referencing so the flow of data remains intact.