Project 4
1. Project 4
1.10. Page 2
Training Room 3: Opening Accounts
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What I Need to Know
You need to know a company’s chart of accounts before you can open the accounts. From this list, you are able to open up each page in the ledger to prepare it to record money going in and money going out.
Why Is This Important?
These account numbers are used to record all the daily business activities. It is important to set up the books accurately to reflect what the business needs. These accounts, or special pages in the ledger, make it quick and easy for the accountant and/or the business owner to access information. For example, if someone wanted to know how much a customer owed the business, he or she would find the account number in the chart of accounts and turn to the ledger page for that customer. Businesses also refer to these records to prepare financial statements, which helps to assess business activities and make informed business decisions.
What Do I Need to Do?
Explore the General Ledger
Open the General Ledger Template. Save this form in your FIN1015 Course Folder as Gurpreet’s Ledger so you can check your work when you are finished.
Refer to General Ledger for information about using the general ledger form.
Open Accounts into the General Ledger
We are now going to open all of the accounts from the chart of accounts.
Opening an account means placing the account name and the account number in the ledger.
The chart of accounts for Gurpreet’s Snow Removal, which you completed in Training Room 2, is available for you to refer to below. Follow the steps below to open the ledger from this chart of accounts.
Step 1: Opening the Asset Accounts
The asset accounts are opened as shown in the multimedia piece titled Opening the Asset Accounts.
You can check your answer by clicking on Gurpreet’s Snow Removal General Ledger.