MGMT 20000 Lecture 5: Chapter 2 Part 4-6
28 Jan 2019
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MGMT 200 Chapter 2
Part 4
Record transactions in a journal using debits and credits
Recording transactions
- Journal provides a chronological record of all transactions
- Journal entry format used for recording transactions
Indent is always a credit
Credit and debit headings aren’t in entry
Date is required and entries have names
Journal entry example
Part 5
Post transactions to the general ledger
Posting
Posting-process of transferring the debit and credit information from the journal to individual
accounts in the general ledger
General ledger-provides in a single location the list of transactions affecting each account and
the account’s balance
Accounts title, transaction date, transaction description, and columns for debits, credits, and
the cumulative account balance
