CHAPTER 6- POSTING TO THE LEDGER AND TRIAL BALANCE PREPARATION
LEARNING OBJECTIVES:
At the end of this chapter, the student should be able to:
1. Post transaction in the general ledger
2. Prepare unadjusted trial balance
----------------------------------------------------------------------------------------------------------------3. POSTING FROM THE GENERAL JOURNAL TO THE GENERAL LEDGER
The T- Account Form is used in the classroom for preliminary analysis of transactions. In actual
practice, a formal book of account is used containing not only the account title, date and amount but
also the page reference (to identify the entry source), the account number and the balance of the
account. All accounts are compiled in one book called the General Ledger wherein a separate page is
maintained for each account. Each page is called a Ledger.
Posting is the process of transferring figures from the journal to the ledger accounts
General Ledger is the collection of all ASSET, LIABILITY, owners’ EQUITY, REVENUE, and expense
accounts. This is a book of accounts in which data from transactions recorded in journals are posted
and thereby classified and summarized also called ledger.
Ledger is a tool used for classifying and summarizing information about increases, decreases, and
balances of items in the chart of accounts.
A ledger format may be used where after the date column; there is a debit and credit column. The
last column gives a running balance after every posting made.
NEED FOR A LEDGER
1. Items of similar items are grouped together
2. It is easier to locate the item if information about it is needed
ACCTG 101- FINANCIAL ACCOUNTING AND REPORTING (FUNDAMENTALS)
1|P age
PROBLEM1
2020
May
2
5
10
13
15
16
20
28
Page 1
PARTICULARS
F
DEBIT
Cash
Up, Capital
Deposited in the business
11
51
P
2
7
Furniture and Fixtures
Accounts Payable
Bought Tables and chairs on
account
22
Supplies
Cash
Accounts Payable
Purchased Office Supplies
14
11
31
Rent Expense
Cash
Paid Rent
73
11
1
Office Equipment
Cash
Accounts Payable
Bought Office Equipment
21
11
31
2
Salaries Expense
Utilities Expense
Miscellaneous Expense
Cash
Paid Expenses
71
74
75
11
1
Accounts Receivable
Service Revenue
Rendered Services to clients
12
61
Accounts Payable
Cash
Paid 50% of its account
31
11
0
5
CREDIT
0
0
P
1
8
7
1
0
0
1
5
7
4
6
6
8
0
8
5
1
2
8
4
0
0
5
5
0
2
9
2
0
ACCTG 101- FINANCIAL ACCOUNTING AND REPORTING (FUNDAMENTALS)
7
0
5
0
0
1
8
6
4
5
6
1
2
5
4
6
0
0
1
0
0
0
0
1
5
6
7
1
0
5
0
0
2
6
8
7
1
0
6
8
9
0
8
0
7
5
5
0
0
0
0
0
1
0
1
8
7
5
2|P age
SAMPLE FORMAT:
CASH
Date
ACCOUNT NO. 101
Ref
Debit
Credit
Balance
To illustrate the General Ledger of NEVER GIVE UP SERVICING COMPANY
GENERAL LEDGER
CASH
2020
Particulars
ACCOUNT NO. 11
Ref
Debit
the
J1
270,500
Office
J1
6,240
264,260
J1
10,000
254,260
J1
5,700
248,560
in
Credit
Balance
May 2
Deposited
business
May 10
Purchased
Supplies
May 13
Paid Rent
May 15
Bought
Equipment
May 16
Paid Expenses
J1
26,871
221,689
May 28
Paid 50% of its account
J1
8,075
P 213,614
Office
P 270,500
ACCOUNTS RECEIVABLE
2020
May 20
Particulars
Rendered
clients
services
to
Ref
Debit
J1
106,890
ACCTG 101- FINANCIAL ACCOUNTING AND REPORTING (FUNDAMENTALS)
ACCOUNT NO. 12
Credit
Balance
P 106,890
3|P age
SUPPLIES
2020
May 10
Particulars
Purchased
Supplies
office
ACCOUNT NO. 14
Ref
Debit
J1
7,800
Credit
P 7,800
OFFICE EQUIPMENT
2020
May 15
Particulars
Bought
Equipment
Office
ACCOUNT NO. 21
Ref
Debit
J1
21,850
FURNITURE & FIXTURES
Credit
Particulars
Ref
Debit
May 5
Bought tables and chairs
on account
J1
18,645
P 21,850
Credit
Ref
May 5
Bought tables and chairs
on account
May 10
Purchased
Supplies
May 15
Bought
Equipment
May 28
Paid 50% of its account
ACCOUNT NO. 31
Credit
Balance
J1
18,645
P 18,645
Office
J1
1,560
20,205
Office
J1
16,150
36,355
J1
Debit
Balance
P 18,645
ACCOUNTS PAYABLE
Particulars
Balance
ACCOUNT NO. 22
2020
2020
Balance
8,075
ACCTG 101- FINANCIAL ACCOUNTING AND REPORTING (FUNDAMENTALS)
P 28,280
4|P age
UP, CAPITAL
2020
May 2
Particulars
Deposited
business
ACCOUNT NO. 51
Ref
in
the
Debit
J1
Credit
Balance
270,500
P 270,500
SERVICE REVENUE
2020
May 20
ACCOUNT NO. 61
Ref
Rendered
clients
services
to
Debit
J1
Credit
Balance
106,890
P 106,890
SALARIES EXPENSE
2020
May 16
Paid Salaries
ACCOUNT NO. 71
Ref
Debit
J1
15,550
Credit
P 15,550
RENT EXPENSE
2020
May 13
Paid Rent
ACCOUNT NO. 73
Ref
Debit
J1
10,000
Credit
May 16
Paid Utilities
ACCOUNT NO. 74
Ref
Debit
J1
7,100
Credit
May 16
Paid Miscellanepus
Ref
Debit
J1
4,221
ACCTG 101- FINANCIAL ACCOUNTING AND REPORTING (FUNDAMENTALS)
Balance
P 7,100
MISCELLANEOUS EXPENSE
Date
Balance
P 10,000
UTILITIES EXPENSE
2020
Balance
ACCOUNT NO. 75
Credit
Balance
P 4,221
5|P age
Note: For Problem No. 2, see the solution template for GENERAL LEDGER.
4. Preparation of Trial Balance
A Trial Balance is a list of accounts with open balances in the general ledger. It proves the
quality of the debits and the credits in the general ledger.
The trial balance consists of two classifications: the trial balance of balances and the trial
balance of totals. The trial balance of balances contains account with open balances. An
account is said to have a debit balance if the debit total is more than the credit total and is
said to have a credit balance if the credit total is more than the debit total. If the debit side
and credit side are equal, the account is a zero balance or closed account.
The other form of trial balance is the balance of totals. In this form, the total of the debits
and the total of the credits of each account are listed.
Procedures in Trial Balance Preparation
1. Write the heading of the trial balance. The heading of the trial balance includes the
following:
a.) The name of the business or the owner
b.) Title of the list or trial balance
c.) Date of the trial balance
2.) Provide a column for the accounts and two money columns- a debit and a credit
3.) The accounts should be written in just one column arranged in the following sequence:
a.)
b.)
c.)
d.)
e.)
Assets
Liabilities
Capital
Income
Expenses
4.) Write the amounts opposite the corresponding accounts under the debit money column,
if the account is a debit balance and under the credit money column, if the account is a
credit balance.
5.) Foot the money columns. Double rule the totals.
ACCTG 101- FINANCIAL ACCOUNTING AND REPORTING (FUNDAMENTALS)
6|P age
Using the Ledger balances of NEVER GIVE UP SERVICING COMPANY, , the trial balance will appear as
follows:
NEVER GIVE UP SERVICING COMPANY
TRIAL BALANCE
MAY 31, 2020
Account No.
Account Title
Debit
Credit
11
Cash
P 213,614
12
Accounts Receivable
14
Supplies
7,800
21
Office Equipment
21,850
22
Furniture & Fixtures
18,645
31
Accounts Payable
28,280
51
Up, Capital
270,500
61
Service Revenue
106,890
71
Salaries Expense
15,550
72
Rent Expense
10,000
73
Utilities Expense
7,100
74
Miscellaneous Expense
4,221
106,890
P 405,670
P 405,670
Note: For Problem No. 2, see the solution template for TRIAL BALANCE.
ACCTG 101- FINANCIAL ACCOUNTING AND REPORTING (FUNDAMENTALS)
7|P age
REFERENCES:
Agamata, Franklin T & Berbano Alfred. (2018) . Fundamentals of Accounting. Manila ,
Philippines: Education_Online, Inc.
Arenas T, Chua, M. & Villarina F. (2018). Fundamentals of Accounting Principles. Quezon
City: National Book Store
Covid 19 Project for Accountants: Basic Concepts –Presentation of Financial Statements
(PAS 1)
Kieso, Donald E., Kimmel Paul & Weygandt, Jerry J. (2015). Accounting Principles. USA:
Courier Kendallville
Millan, Zeus Vernon. (2019). Financial Accounting and Reporting. Baguio City: Bandolin
Enterprise
Roxas, Gregorio, F. & Valencia Edwin G. (2018). Basic Accounting. Baguio City: Valencia
Educational Supply
Tolentino, Gloria J. & Lupisan Ma. Concepcion Y. (2017). Accounting for Partnership and
Corporation. Manila: Millenium Books, Inc.
Valix Conrado T & Valix Christian Aris M. (2018). Theory Financial Accounting. Manila: GIC
Enterprises & Co. Inc.
Vera Cruz- Manuel, Z. (2018). 21st Century Accounting Process 16th Edition. Quezon City:
Raintree Trading & Publishing Inc.
“PERSEVERANCE IS FAILING 19 TIMES AND SUCCEEDING THE 20TH.”- JULIE ANDREWS
ACCTG 101- FINANCIAL ACCOUNTING AND REPORTING (FUNDAMENTALS)
8|P age