OVERVIEW OF THE SECTION
After journal entries are made, the next step in the accounting cycle is to post the journal
entries into the ledger. An accounting ledger refers to a book that consists of all accounts
used by the company, the debits and credits under each account, and the resulting balances.
In this section, you will know how to post transactions in a general ledger.
LEARNING OUTCOME(S)
At the end of the section, you should be able to:
Familiarize the format and the process of posting transactions in a general ledger by
reading the wiki.
Show proficiency in posting transactions in a general ledger.
Post transactions in a general ledger.
SECTION OUTLINE
WIKI: The Ledgers
Week 5
PRE-WORK ACTIVITY: Posting Transactions
in a General Ledger
Week 5
MILESTONE: Posting Transactions in a
General Ledger
Week 5
70
Title
WIKI: The Ledgers
Timeline
Week 5
Objectives
Familiarize the format and the process of posting transactions in a general
ledger by reading the wiki.
Tools
Tablet, Notebook, Pen, and Dictionary
1. Read the wiki entitled, "The Ledgers". Make sure that you read it very carefully. This will help
you understand how to post transactions in a ledger.
2. Encircle or list down the word/s that you think is/are not familiar with you. Look at their
definitions in a dictionary or thesaurus.
3. To help you understand what you are reading, answer the following questions:
a. What are ledgers?
b. What is the format of a general ledger? Describe each part in detail.
c. What are the steps to the process of posting transactions in a general ledger?
4. Write your answers in your notebook. Make sure to use your own words.
5. You can always go back to this wiki at any time.
The summary (in specialized journals) or individual transactions (in the general journal)
are then posted from the journals to the general ledger (and subsidiary ledgers). Nothing should
ever get posted to the ledgers without first being entered in a journal.
The ledger refers to the accounting book in which the accounts and their related
amounts as recorded in the journal are posted periodically.
Definition
The ledger refers to the accounting book in which the accounts and their related
amounts as recorded in the journal are posted periodically.
The ledger is also called the ‘book of final entry’ because all the balances in the ledger
are used in the preparation of financial statements. This is also referred to as the T-Account
because the basic form of a ledger is like the letter ‘T’.
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Posting entries to ledgers is Step 3 in the accounting cycle. Check the diagram above for
your reference.
There are two kinds of ledgers, namely; the general ledger and the subsidiary ledgers.
General Ledger
The general ledger (commonly referred by accounting professionals as GL) is a grouping
of all accounts used in the preparation of financial statements. The GL is a controlling account
because it summarizes all the activities that have taken place as recorded in its subsidiary
ledger.
The format of a general ledger is shown below:
GENERAL LEDGER
Account:
Date
Account No.:
Item
Ref.
Debit
Credit
Balance
R. Limbo’s Restaurant Business. To illustrate the posting of transactions in the general ledger, let
us use the general journal in example 4-1 found in section 4 as an example:
72
GENERAL JOURNAL
Date
Account Title and Explanation
Ref.
Debit
10/01/20
Cash
R. Limbo, Capital
To record investment of Ms. Rocelle Limbo
J1
₱500,000
10/05/20
Kitchen Appliances
Cash
To record purchase of kitchen appliances
J2
₱100,000
10/06/20
Cash
Sales
To record sales for the day
J3
₱20,000
Credit
₱500,000
₱100,000
₱20,000
Suppose we have the following Account Codes from the Chart of Accounts for the different
accounts used above: Cash-1000, R. Limbo, Capital-3000, Sales-4100, and Kitchen Appliances
Expense-5100.
Solution:
1.
The account portion refers to the account title for example: cash, accounts receivable, etc.
2.
The account number is an assigned number for each account title to facilitate ease in
recording and cross-referencing. This is found from the chart of accounts.
3.
The date column identifies when the transaction happened.
4.
The item represents the source journal and the nature of the transactions
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5.
The reference identifies the reference code found in the general or special journal from
which the information was taken.
6.
The debit and credit columns are used in recording the amount of transactions from the
general journal or special journal.
7.
The balance column represents the running balance of the account after considering the
debit and credit amounts. If the running balance amount is positive, the account has a debit
balance whereas if it has a negative running balance, the account has a credit balance.
Here is the complete record of the above transactions using a general ledger.
GENERAL LEDGER
Account: Cash
Date
Account No.: 1000
Item
Ref.
Debit
Credit
Balance
10/01/20
Investment of R. Limbo
J1
₱500,000
-
₱500,000
10/05/20
Purchase of Kitchen Appliances
J2
-
₱100,000
₱400,000
10/06/20
Sales for the Day
J3
₱20,000
-
₱420,000
GENERAL LEDGER
Account: R. Limbo’s Capital
Date
10/01/20
Account No.: 3000
Item
Ref.
Investment of R. Limbo
Debit
J1
-
Credit
Balance
₱500,000
₱500,000
GENERAL LEDGER
Account: Sales
Date
10/06/20
Account No.: 4100
Item
Ref.
Sales for the Day
Debit
J3
Credit
-
Balance
₱20,000
₱20,000
GENERAL LEDGER
Account: Kitchen Appliances Expense
Date
10/05/20
Account No.: 5100
Item
Purchase of Kitchen Sales
74
Ref.
Debit
J2
₱100,000
Credit
Balance
-
₱100,000
Seo Dal-mi’s Computer Repair Shop. Below are the journalized transactions from example 4-3
found in section 4. Let's use this as another example in posting transactions in a general ledger:
GENERAL JOURNAL
Date
02/14/16
Account Title and Explanation
Ref.
Debit
Cash
Seo, Capital
To record the initial investment of owner Seo Dal-mi
S1
02/15/16
Office Equipment
Cash
To record the purchase of one computer unit
S2
₱25,000
02/17/16
Cash
Service Revenue
To record receipt of cash from customer
S3
₱10,000
Accounts Receivable
Service Revenue
To record services rendered to a customer on
account
S4
Supplies Expense
Accounts Payable
To record purchase of office supplies on account
S5
Salaries Expense
Cash
To record payment of salary of Ji-pyeong
S6
02/18/16
02/19/16
02/25/16
Credit
₱200,000
₱200,000
₱25,000
₱10,000
₱15,000
₱15,000
₱5,000
₱5,000
₱4,000
₱4,000
Suppose we have the following Account Codes from the Chart of Accounts for the different
accounts used above: Cash-1000, Accounts Receivable-1200, Office Equipment-1600,
Accounts Payable-2000, Seo Dal-Mi’s Capital-3000, Service Revenue-4000, Supplies
Expense-5150, and Salaries Expense-5200.
Solution:
GENERAL LEDGER
Account: Cash
Date
Account No.: 1000
Item
Ref.
Debit
Credit
Balance
02/14/16
Investment of Owner
S1
₱200,000
-
₱200,000
02/15/16
Purchase of Computer
S2
-
₱25,000
₱175,000
02/17/16
Repair Income - Won In-jae
S3
₱10,000
-
₱185,000
02/25/15
Payment of Han Ji-pyeong’s salary
S6
-
₱4,000
₱181,000
75
GENERAL LEDGER
Account: Accounts Receivable
Date
02/18/16
Account No.: 1200
Item
Ref.
Repair Income - Kim Do-wan
S4
Debit
Credit
₱15,000
Balance
-
₱15,000
GENERAL LEDGER
Account: Office Equipment
Date
02/18/16
Account No.: 1600
Item
Ref.
Purchase of Computer
S2
Debit
Credit
₱25,000
Balance
-
₱25,000
GENERAL LEDGER
Account: Accounts Payable
Date
02/19/16
Account No.: 2000
Item
Ref.
Purchase - office supplies
Debit
S5
Credit
-
Balance
₱5,000
₱5,000
GENERAL LEDGER
Account: Seo, Capital
Date
02/14/16
Account No.: 3000
Item
Ref.
Investment of Owner
Debit
S1
-
Credit
Balance
₱200,000
₱200,000
GENERAL LEDGER
Account: Service Revenue
Date
Account No.: 4000
Item
Ref.
Debit
Credit
Balance
02/17/16
Repair Income - Won In-jae
S3
-
₱10,000
₱10,000
02/18/16
Repair Income - Kim Do-wan
S4
-
₱15,000
₱25,000
GENERAL LEDGER
Account: Supplies Expense
Date
02/19/16
Account No.: 5150
Item
Ref.
Purchase - office supplies
S5
76
Debit
₱5,000
Credit
Balance
-
₱5,000
GENERAL LEDGER
Account: Salaries Expense
Date
02/25/16
Account No.: 5200
Item
Ref.
Payment of Han Ji-pyeong’s salary
S6
77
Debit
₱4,000
Credit
Balance
-
₱4,000
Posting
https://www.youtube.com/watch?v=54XrEzZXbPA
How to Post in Ledger from Journal
https://www.youtube.com/watch?v=0v9YLE2Lm7k
How to Post to the General Ledger
https://www.youtube.com/watch?v=w2FmuagHkF4
Ledger Accounts
https://www.youtube.com/watch?v=E4Vx1Apqsj4
78
Florendo, Joselito, et.al. (2016). Commission on Higher Education Teaching Guide for Senior High
School: Fundamentals of Accountancy, Business, and Management 1. Baesa, Quezon City:
EC-TEC Commercial
General Ledger (n.d.) Retrieved from http://accountingtools.com/definition-general-ledger
Valencia, E.G. & Roxas, G.F. (2010). Basic Accounting, 3rd ed. Mandaluyong City, Philippines:
Valencia Educational Supply
79
Title
PRE-WORK ACTIVITY: Posting Transactions in a General Ledger
Timeline
Week 5
Objectives Show proficiency in posting transactions in a general ledger.
Tools
Tablet, Two-Column Accounting Worksheet/Columnar Notebook, and Pen
1. After reading the wiki about posting transactions in a general ledger, it is now the time to
check your understanding of this topic.
2. Below is the general journal entry about the previous activity in section 4, entitled
“PRE-WORK ACTIVITY: Recording Transactions in a General Journal”.
GENERAL JOURNAL
Date
Account Title and Explanation
Ref.
Debit
1/2/2021
Cash
Capital Stock
Issued stock to Jeon Jung-kook for cash
V1
₱900,000
1/4/2021
Equipment
Accounts Payable
Purchased equipment on account
V2
₱725,000
1/12/2021
Cash
Service Revenue
Provided services to customers for cash
V3
₱1,500,000
1/15/2021
Supplies Expense
Accounts Payable
Received bill for cost of supplies
V4
₱200,000
1/18/2021
Accounts Receivable
Service Revenue
Provided services to customers on account
V5
₱300,000
1/20/2021
Salary Expense
Cash
Paid wages of employees
V6
₱250,000
1/22/2021
Cash
Accounts Receivable
Collected of the amount due from the transaction of
January 18 (₱300,000 X 60% = ₱180,000)
V7
₱180,000
1/23/2021
Accounts Payable
Cash
Paid 40% of the amount due for the transaction of
January 4 (₱725,000 X 40% = ₱290,000)
V8
₱290,000
1/25/2021
Supplies Expense
Cash
Paid for supplies used
V9
₱60,000
Dividends
Cash
Paid dividends to Jeon Jung-kook
V10
1/31/2021
Credit
₱900,000
₱725,000
₱1,500,000
₱200,000
₱300,000
₱250,000
₱180,000
₱290,000
₱60,000
80
₱150,000
₱150,000
3. Your task is to post the transactions found above in a general ledger and to determine the
balance of each account.
4. Make sure to use the Account Code that you put in your Chart of Accounts in Section 3 in this
activity.
5. Write your answer in your accounting worksheet/columnar notebook. No erasures of any
form allowed.
6. If anything troubles you or if you find the activity a little difficult, you may go back with the The
Ledger Wiki.
7. The answer key for this activity is provided for your reference but make sure to use it only
when you are done, validating the accuracy of your answer.
81
Title
PRE-WORK ACTIVITY: Posting Transactions in a General Ledger Answer Key
Timeline
Week 5
GENERAL LEDGER
Account: Cash
Date
Account No.: 1000
Item
Ref.
Debit
Credit
Balance
1/02/21
Issued stock to Jeon Jung-kook for cash
V1
₱900,000
-
₱900,000
1/12/21
Provided services to customers for cash
V3
₱1,500,000
-
₱2,400,000
1/20/21
Paid wages of employees
V6
-
₱250,000
₱2,150,000
1/22/21
Collected of the amount due from the
transaction of January 18
V7
₱180,000
-
₱2,330,000
1/23/21
Paid 40% of the amount due for the transaction
of January 4
V8
-
₱290,000
₱2,040,000
1/25/21
Paid for supplies used
V9
-
₱60,000
₱1,980,000
1/31/21
Paid dividends to Jeon Jung-kook
V10
-
₱150,000
₱1,830,000
Total
₱2,580,000
₱750,000
Total Balance
₱1,830,000
GENERAL LEDGER
Account: Capital Stock
Date
1/02/21
Account No.:
Item
Ref.
Issued stock to Jeon Jung-kook for cash
Debit
Credit
-
V1
Balance
₱900,000
₱900,000
GENERAL LEDGER
Account: Equipment
Date
1/04/21
Account No.:
Item
Ref.
Purchased equipment on account
V2
Debit
Credit
₱725,000
Balance
-
₱725,000
GENERAL LEDGER
Account: Accounts Payable
Date
Account No.:
Item
Ref.
82
Debit
Credit
Balance
1/04/21
Purchased equipment on account
V2
-
₱725,000
₱725,000
1/15/21
Received bill for cost of supplies
V4
-
₱200,000
₱925,000
1/23/21
Paid 40% of the amount due from the
transaction of January 18
V8
₱290,000
-
₱635,000
GENERAL LEDGER
Account: Service Revenue
Date
Account No.:
Item
Ref.
Debit
Credit
Balance
1/12/21
Provided services to customers for cash
V3
-
₱1,500,000
₱1,500,000
1/18/21
Provided services to customers on account
V5
-
₱300,000
₱1,800,000
Credit
Balance
GENERAL LEDGER
Account: Supplies Expense
Date
Account No.:
Item
Ref.
Debit
1/15/21
Received bill for cost of supplies
V4
₱200,000
-
₱200,000
1/25/21
Paid supplies used
V9
₱60,000
-
₱260,000
GENERAL LEDGER
Account: Accounts Receivable
Date
Account No.:
Item
Ref.
Debit
Credit
Balance
1/18/21
Provided services to customers on account
V5
₱300,000
-
₱300,000
1/22/21
Collected of the amount due from the
transaction of January 18
V7
-
₱180,000
₱120,000
GENERAL LEDGER
Account: Salaries Expense
Date
1/20/21
Account No.:
Item
Ref.
Paid wages of employees
V6
Debit
Credit
₱250,000
GENERAL LEDGER
Account: Dividends
Account No.:
83
Balance
-
₱250,000
Date
1/31/21
Item
Paid dividends to Jeon Jung-kook
84
Ref.
Debit
V10
₱150,000
Credit
Balance
-
₱150,000
Title
MILESTONE: Posting Transactions in a General Ledger
Timeline
Week 5
Objectives Post transactions in a general ledger.
Tools
Tablet, Accounting Worksheet/Columnar Notebook, and Pen
1. After going through the pre-work activity, you are now ready to perform your second
milestone in this course which is focused on posting transactions in a general ledger.
2. In this milestone, you will be needing your general journal of your Milestone 1: Recording
Transactions in a General Journal found in Section 4.
3. Your task is to post the transactions found in that milestone in a general ledger and to
determine the balance of each account.
4. Make sure to use the Account Code that you put in your Chart of Accounts in Section 3 for
this milestone.
5. Write your answer in your accounting worksheet/columnar notebook. No erasures of any
form are allowed.
6. If anything troubles you or if you find the activity a little difficult, you may go back with The
Ledger Wiki.
85