The General Ledger

The General Ledger - every transaction. When an account...

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The General Ledger After journalizing transactions, the next step in the accounting process is to post transactions to the  accounts in the general ledger. Although T accounts provide a conceptual framework for  understanding accounts, most businesses use a more informative and structured spreadsheet  layout. A typical account includes date, explanation, and reference columns to the left of the debit  column and a balance column to the right of the credit column. The reference column identifies the  journal page containing the transaction. The balance column shows the account's balance after 
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Unformatted text preview: every transaction. When an account does not have a normal balance, brackets enclose the balance. Assets normally have debit balances, for example, so brackets enclose a checking account's balance only when the account is overdrawn. As the numbered arrows below indicate, you should post a transaction's first line item to the correct ledger account, completing each column and calculating the account's new balance. Then you should enter the account's reference number in the journal. Repeat this sequence of steps for every account listed in the journal entry....
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This note was uploaded on 11/16/2011 for the course ACCT 2310 taught by Professor Staff during the Spring '09 term at Texas State.

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