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Chapter 4

TermDefinition
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 an account title and number on the heading of an account.
Posting Transferring information from a journal entry to a ledger account.
Account Form
FYI – Another name for account form
FYI – arrangement of Chart of Accounts
FYI – List 5 General Ledger divisions
FYI – List 2 Rules for posting amounts
FYI – List 3 purposes of the Post Ref.
FYI – List 2 purposes for the check marks
FYI – List 2 advantages of posting special amount column totals only
FYI – List steps to correcting an error in posting to the wrong account Draw a line through the entire incorrect entry. Record the posting in the correct account. Recalculate the account balance.
FYI – List steps to correcting an incorrect amount posted in an account Draw a line trough the incorrect amount. Write the correct amount just above the incorrect amount. Recalculate the account balance.
FYI – List steps to correcting an amount posted to the wrong column Draw a line through the incorrect item in the account. Record the posting in the correct amount column. Recalculate the account balance.
Created by: andrew.v
 

 



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