Lesson Plan 2.3 Posting to Ledger Accounts and Trial Balance Course Title Accounting I Lesson Purpose - Learn proper procedures for posting to the ledger accounts and checking for accuracy. Behavioral Objectives Accurately post from the general journal to the general ledger account Accurately calculate account balances in a ledger Understand the concept of posting from a journal to a ledger Prepare a Trial Balance after posting to check for equality Preparation OLD TEKS Correlations: 120.42.C: 1.b. - apply information from source documents 1.c. - demonstrate the effects of transactions on the accounting equation, for example, T accounts; 1.f. - post general journal entries; 1.g. - prepare a Trial Balance 7.a. - follow oral and written instructions; 7.b. - develop time management skills by setting priorities for completing work as scheduled 7.c. - make decisions using appropriate accounting concepts; 7.e. - perform accounting procedures using manual and automated methods. 2010 TEKS Correlations: 130.166.C: 3.c. - demonstrate the effects of transactions on the accounting equation; 3.e. use T accounts; 3.g. post journal entries to general ledger accounts; 3.h. prepare a trial balance. Lesson Plan 2.3 Posting to Ledger Accounts And Trial Balance Copyright @ Texas Education Agency, 2011. All rights reserved.
TAKS Correlation: MATH Objective 10: The student will demonstrate an understanding of the mathematical processes and tools used in problem solving. Materials, Equipment and Resources: Textbook Teaching Strategies: Demonstration Observation Graded Assignments Lesson Plan 2.3 Posting to Ledger Accounts And Trial Balance Copyright @ Texas Education Agency, 2011. All rights reserved.
Learner Preparation: Have students complete this math drill as a warm-up: ACCOUNT BALANCES Instructions: Figure new account balances in Column 3 for each line. In column 4, write either debit or credit. See Row 1 as an example. 1 2 3 4 Debit Balance Credit Balance New Balance Is it a debit or credit balance? Hint: Which side is larger? 1 235.00 125.00 110.00 Debit 2 550.00 725.00 3 1,200.00 975.00 4 255.00 177.00 5 14,000.00 22,001.00 6 595.00 395.00 7 233.00 535.00 8 11,000.00 10,337.00 9 725.00 550.00 10 235.00 11,362.00 11 901.00 887.00 12 627.00 333.00 13 884.00 925.00 14 888.00 888.00 15 735.00 925.00 16 14.00 122.00 17 841.00 798.00 18 1,000.00 500.00 19 1,200.00 1,199.00 20 40,000.00 34,002.00 Lesson Content: Introduce students to the general ledger and posting from the general journal to the general ledger. Students learn to calculate account balances after posting each item with 100% accuracy. Assessment: Observation Graded Assignments Additional Resources: Lesson Plan 2.3 Posting to Ledger Accounts And Trial Balance Copyright @ Texas Education Agency, 2011. All rights reserved.
Textbooks: Websites: Guerrieri, Donald J., Haber, Hoyt, Turner. Glencoe Accounting Real- World Applications and Connections. Glencoe McGraw-Hill 2000. ISBN/ISSN 0-02-815004-X. Ross, Kenton, Gilbertson, Lehman, and Hanson. Century 21 Accounting Multicolumn Journal Anniversary Edition, 1st Year Course. South- Western Educational and Professional Publishing, 2003. ISBN/ISSN: 0-538-43524-0 Ross, Kenton, Gilbertson, Lehman, and Hanson. Century 21 General Journal Accounting Anniversary Edition, 7th Edition. South- Western Educational and Professional Publishing, 2003. ISBN/ISSN: 0-538-43529-1. Learn.co.za: Accounting. Learning Channel Ltd, 1998-2003. Accessed 21 June 2003. http://www.learn.co.za/content/grade10/accounting/finalacc/posting_gl/uni t1 Savage, Ron. Some Accounting Terms Relating to General Ledger. Accessed 21 June 2003.http://savage.net.au/Ron/html/general-ledger.html. Lesson Plan 2.3 Posting to Ledger Accounts And Trial Balance Copyright @ Texas Education Agency, 2011. All rights reserved.
Activity 2.3.1 The Posting Process Course Title Accounting I Lesson Title Posting to Ledger Accounts and Trial Balance Activity Purpose - Learn to post from the general journal to the general ledger. OLD TEKS Correlations: 120.42.C.1.b. - Apply basic accounting concepts and terminology; 1.f. - Post general journal entries; 7.a. - follow oral and written instructions; 7.b. - develop time management skills by setting priorities for completing work as scheduled 7.c. - make decisions using appropriate accounting concepts; 7.e. - perform accounting procedures using manual and automated methods. 7.g. - prepare a Trial Balance 2010 TEKS Correlations: 130.166.C: 3.g. - post journal entries to general ledger accounts; 3.h. prepare a trial balance TAKS Correlation: WRITING Objective 6: The student will demonstrate the ability to revise and proofread to improve the clarity and effectiveness of a piece of writing. Materials, Equipment and Resources: Textbook Teaching Strategies: Demonstration Observation Verbal Che4cking for Understanding Activity 2.3.1 The Posting Process
Activity Outline: Have students add these terms to their index card ring: Ledger General ledger File maintenance Posting Proving cash Trial Balance Transposition Slide Using a general journal form, demonstrate the process of posting from the journal to the ledger form. Emphasize the importance of recording the information in both places. Teach students to pay attention to detail. Have them write the account name and number on each ledger account. Posting steps: 1. Date (from the journal) 2. Item (only if you have a notation you need to make) 3. Debit or Credit in one of the first two columns of the 4-column ledger. 4. Calculate the balance. a. Debit posting + Debit Balance = Add for a Debit Balance b. Credit posting + Debit Balance = Subtract and place on the largest side c. Credit posting + Credit Balance = Add for a Debit Balance d. Debit posting + Credit Balance = Subtract and place on the largest side 5. Put the journal page number in the Post Reference on the ledger. 6. Put the account number in the Post Reference on the journal. Assessment: Observation Graded Assignment Quality Feature Accounts properly opened Posting includes all details Account balances on the correct side Writing legible Account balance accurate Score Activity 2.3.1 The Posting Process
Activity 2.3.2 Trial Balance Course Title Accounting I Lesson Title Posting to Ledger Accounts and Trial Balance Activity Purpose - Demonstrate skill in preparing a Trial Balance after posting from the general journal to the general ledger. OLD TEKS Correlations: 120.42.C: 1.b. - Apply basic accounting concepts and terminology; 1.g. - prepare a Trial Balance 7.a. - follow oral and written instructions; 7.b. - develop time management skills by setting priorities for completing work as scheduled 7.c. - make decisions using appropriate accounting concepts; 7.e. - perform accounting procedures using manual and automated methods. 7.g. - demonstrate use of the numeric keypad by touch. 2010 TEKS Correlations: 130.166.C: 3.a. classify, record, and summarize financial data; 3.h. - prepare a Trial Balance TAKS Correlation: WRITING Objective 6: The student will demonstrate the ability to revise and proofread to improve the clarity and effectiveness of a piece of writing. MATH Objective 10: The student will demonstrate an understanding of the mathematical processes and tools used in problem solving. Materials, Equipment and Resources: Activity 2.3.2 Trial Balance Copyright @ Texas Education Agency, 2011. All rights reserved.
Textbook Teaching Strategies: Demonstration Observation Activity 2.3.2 Trial Balance Copyright @ Texas Education Agency, 2011. All rights reserved.
Activity Outline: Discuss the importance of a Trial Balance each time you post to a ledger. Finding any errors now saves lots of time by avoiding transferring them throughout the accounting cycle. Demonstrate from Activity 1 checking the equality of debits and credits by using a Trial Balance master form. Review the normal balance side of accounts by doing a verbal drill to be sure students understand that their accounts will be on the normal balance side when transferring them to the Trial Balance. Explain circumstances when the account might not have a normal balance. Have your students create a Trial Balance on their own, given the following information. Have them list the accounts as they are on the chart of accounts. List the accounts first then do a count to be sure they did not omit an account. Place balances on the general ledger after posting. Challenge them by asking them to find the capital amount. List all the accounts even if they have a zero balance. For those with zero balances, place nothing in the amount column. Peggy Plater, Capital? Peggy Plater, Drawing $2,500 Income Summary -0- Johnston Office Supply $560 Bank of Texas $1,500 Rent Expense $1,200 Cash $14,200 Advertising Expense $775.00 Utilities Expense $595.00 Petty Cash $50 Supplies $395 Supplies Expense -0- Insurance Expense -0- Miscellaneous Expense $48 Office Equipment $3,200 Assessment: Observation Graded Assignment Quality Feature Three line title on Trial Balance complete All accounts listed in correct order Account names accurate with no spelling errors Writing legible Amounts correct including calculated capital amount Trial balance total accurate Single and double rule lines used according to accounting procedures Score Activity 2.3.2 Trial Balance Copyright @ Texas Education Agency, 2011. All rights reserved.
Activity 2.3.3 Proving Cash Course Title Accounting I Lesson Title Posting to Ledger Accounts and Trial Balance Activity Purpose Demonstrate skill in proving cash OLD TEKS Correlations: 120.42.C.1.b. - Apply basic accounting concepts and terminology; 7.a. - follow oral and written instructions; 7.b. - develop time management skills by setting priorities for completing work as scheduled 7.c. - make decisions using appropriate accounting concepts; 7.e. - perform accounting procedures using manual and automated methods. 7.g. - demonstrate use of the numeric keypad by touch. 2010 TEKS Correlations: 130.166.C: 4.b. prove cash TAKS Correlation: MATH Objective 10: The student will demonstrate an understanding of the mathematical processes and tools used in problem solving. Materials, Equipment and Resources: Textbook Teaching Strategies: Demonstration Observation Activity 2.3.3 Proving Cash
Activity Outline: Divide students into teams of 4. The amounts written on the board are what you expect to match cash in bank and ending cash. Write on the board: a. $690.00 b. $21,510 c. $31,000 d. $960.00 Ask all four members of the team to work Problem 1 and find the answer on the board: Cash Proof Beginning Cash $21,000 + Cash Received $26,000 =Total Cash Available - Cash Paid $16,000 = Ending Cash Cash in Bank Ask students within the team to partner and only get help from their partner to work Problem 2: Cash Proof Beginning Cash $11,500 + Cash Received $16,040 =Total Cash Available - Cash Paid $6,030 = Ending Cash Cash in Bank Ask each individual student to calculate the last cash proof without help. Problem 3: Cash Proof Beginning Cash $1,020 + Cash Received $1,720 =Total Cash Available - Cash Paid $2,050 = Ending Cash Cash in Bank Activity 2.3.3 Proving Cash
Be sure students can answer these questions about cash proof: 1. Where would you find the beginning balance of cash to use in the cash proof? 2. Where would you find the cash received to use in cash proof? 3. Name some transactions that could have occurred during the fiscal period the cash received represents? 4. Where would you find the cash paid to use in the cash proof? 5. Proving means you need something to check it against. Once you have the ending balance of cash, what other amount should it equal? Assessment: Observation Activity 2.3.3 Proving Cash
Activity 2.3.4 Finding Errors in the Trial Balance Course Title Accounting I Lesson Title Posting to Ledger Accounts and Trial Balance Activity Purpose Demonstrate skill in finding errors in the Trial Balance. OLD TEKS Correlations: 120.42.C.1.b. - Apply basic accounting concepts and terminology; 1.g. - prepare a Trial Balance 7.a. - follow oral and written instructions; 7.b. - develop time management skills by setting priorities for completing work as scheduled 7.c. - make decisions using appropriate accounting concepts; 7.e. - perform accounting procedures using manual and automated methods. 2010 TEKS Correlations: 130.166.C: 3.c.demonstrate the effects of transactions on the accounting equation; 3.h. prepare a trial balance TAKS Correlation: WRITING Objective 6: The student will demonstrate the ability to revise and proofread to improve the clarity and effectiveness of a piece of writing. MATH Objective 10: The student will demonstrate an understanding of the mathematical processes and tools used in problem solving. Materials, Equipment and Resources: Textbook Teaching Strategies: Demonstration Observation Activity 2.3.4 Finding Errors in the Balance Sheet
Activity Outline: Remind students that the purpose of a Trial Balance is to find any errors before moving into the next accounting cycle phase. If the debit side does not equal the credit side then they must find the error and correct it. Ask your students If the two sides do not equal, what is the first thing you need to do? Add the columns again. It is the simplest type of error. If they still do not equal, find the difference between the two columns. This gives you an idea of what you are looking for. Here are some simple tricks: If the difference is 1, the error is most likely in addition. This might be in column addition or addition within the general ledger accounts. The 1 includes.01,.10, 1.00, 10.00, etc. If the difference can be evenly divided by 2, look for an amount that is equal to the divided amount. If there is an amount in the Trial Balance that matches then it might be recorded on the wrong side of the Trial Balance or on the wrong side in the general ledger. If the difference can be divided evenly by 9, the error might be a transposition or slide. This is a common error when writing numbers. For example, writing down 524 instead of 254. The first two numbers are transposed or turned around. A slide is when you drop a number. For instance, you write 54 instead of 540. Divided evenly by 9 means numbers like 18, 27, 36, 45, etc. Look for the amount you found in the difference. It might be an omitted amount. Do you remember a transaction with that amount? Practice finding errors with these examples: Finding Errors on the Trial Balance Trial Balance Most likely type of error Debit Balance Credit Balance 1 14300 14200 2 7800 7791 3 5002 4848 4 9500 9510 5 8788 8888 6 7000 6919 7 23120 23100 8 47149 47140 9 66410 66140 10 99482 90482 Activity 2.3.4 Finding Errors in the Balance Sheet
Assessment: Observation Graded Assignment Quality Feature Correctly identifies most errors Completes in a timely manner. Score Activity 2.3.4 Finding Errors in the Balance Sheet