10/06/2021

Hello! I am
THE GENERAL LEDGER General
Ledger

BOOKKEEPING NC-3

LECTURE 4

THE GENERAL LEDGER

GENSAN COLLEGE OF TECHNOLOGY, INC.

BOOKKEEPING NC-3
In partnership with the
TECHNICAL EDUCATION AND
SKILLS DEVELOPMENT AUTHORITY

THE GENERAL LEDGER THE ACCOUNTING CYCLE

The accounting cycle
General Ledger is the collection of all ASSET,
LIABILITY, Owner’s EQUITY, INCOME/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.

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When to use
THE ACCOUNTING CYCLE General
Ledger?
THE ACCOUNTING CYCLE Aha!

The Accounting Cycle is composed of the following steps The Accounting Cycle is composed of the following steps

1. Collection and Verification of Source Documents 1. Collection and Verification of Source Documents
2. Analyze Each Transaction 2. Analyze Each Transaction
3. Journalize Each Transaction 3. Journalize Each Transaction
4. Post to Ledger The Accounting 4. Post to Ledger (General Ledger) The Accounting
Cycle Cycle
5. Prepare a Trial Balance 5. Prepare a Trial Balance
• Journalize Adjusting Entries • Journalize Adjusting Entries
• Prepare Adjusted Trial Balance • Prepare Adjusted Trial Balance
6. Prepare a Work Sheet 6. Prepare a Work Sheet
7. Prepare Financial Statements 7. Prepare Financial Statements
• Journalize and Post Closing Entries BOOKKEEPING NC-3
• Journalize and Post Closing Entries BOOKKEEPING NC-3

8. Prepare a Post-Closing Trial Balance 8. Prepare a Post-Closing Trial Balance

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THE GENERAL LEDGER THE GENERAL LEDGER

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Where did
THE GENERAL LEDGER – CASH THE GENERAL LEDGER – CASH this data
come from?

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MOVEMENT OF ACCOUNTS MOVEMENT OF ACCOUNTS

Refer to Post in
Journal Entry Chart of Respective
Accounts Ledger

Refer to Post in
Journal Entry Chart of Respective
Accounts Ledger

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MOVEMENT OF ACCOUNTS
Refer to Post in
MOVEMENT OF ACCOUNTS
Refer to Post in
Journal Entry Chart of Respective Journal Entry Chart of Respective
Accounts Ledger Accounts Ledger

THE CHART OF ACCOUNTS THE CHART OF ACCOUNTS

ACCOUNT TITLE CODE CLASSIFICATION NORMAL SIDE ACCOUNT TITLE CODE CLASSIFICATION NORMAL SIDE
CASH 100 CURRENT ASSET DEBIT CASH 100 CURRENT ASSET DEBIT

ACCOUNTS RECEIVABLE 120 CURRENT ASSET DEBIT ACCOUNTS RECEIVABLE 120 CURRENT ASSET DEBIT

INVENTORY 150 CURRENT ASSET DEBIT INVENTORY 150 CURRENT ASSET DEBIT

PROPERTY AND EQUIPMENT 190 NON-CURRENT ASSET DEBIT PROPERTY AND EQUIPMENT 190 NON-CURRENT ASSET DEBIT

ACCOUNTS PAYABLE 200 CURRENT LIABILITY CREDIT ACCOUNTS PAYABLE 200 CURRENT LIABILITY CREDIT

LOANS PAYABLE 290 NON-CURRENT LIABILITY CREDIT LOANS PAYABLE 290 NON-CURRENT LIABILITY CREDIT

OWNER’S EQUITY 300 EQUITY CREDIT OWNER’S EQUITY 300 EQUITY CREDIT

PERSONAL DRAWINGS 310 CONTRA-EQUITY DEBIT PERSONAL DRAWINGS 310 CONTRA-EQUITY DEBIT

GROSS SALES 400 INCOME CREDIT GROSS SALES 400 INCOME CREDIT

RENT EXPENSE 510 EXPENSE DEBIT RENT EXPENSE 510 EXPENSE DEBIT

SALARY EXPENSE 520 EXPENSE DEBIT SALARY EXPENSE 520 EXPENSE DEBIT
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REPAIRS AND MAINTENANCE 530 EXPENSE DEBIT REPAIRS AND MAINTENANCE 530 EXPENSE DEBIT

MOVEMENT OF ACCOUNTS
Refer to Post in
MOVEMENT OF ACCOUNTS
Refer to Post in
Journal Entry Chart of Respective Journal Entry Chart of Respective
Accounts Ledger Accounts Ledger

BOOKKEEPING NC-3 BOOKKEEPING NC-3

MOVEMENT OF ACCOUNTS
Refer to Post in
THE GENERAL LEDGER – CASH
Journal Entry Chart of Respective
Accounts Ledger

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Normal Side of Cash (Asset) is Debit
Normal Side of Cash (Asset) is Debit
Subsequent Balance = Previous Balance + Debit – Credit
Balance = Debit - Credit Oct. 2 Balance = P500,000 + 0 – 100,500.50 = P399,499.50

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THE GENERAL LEDGER – CASH THE CHART OF ACCOUNTS

ACCOUNT TITLE CODE CLASSIFICATION NORMAL SIDE
CASH 100 CURRENT ASSET DEBIT
ACCOUNTS RECEIVABLE 120 CURRENT ASSET DEBIT
INVENTORY 150 CURRENT ASSET DEBIT
PROPERTY AND EQUIPMENT 190 NON-CURRENT ASSET DEBIT
ACCOUNTS PAYABLE 200 CURRENT LIABILITY CREDIT
LOANS PAYABLE 290 NON-CURRENT LIABILITY CREDIT
OWNER’S EQUITY 300 EQUITY CREDIT
PERSONAL DRAWINGS 310 CONTRA-EQUITY DEBIT
The balance of GROSS SALES 400 INCOME CREDIT
an account is
RENT EXPENSE 510 EXPENSE DEBIT
always
maintained on SALARY EXPENSE 520 EXPENSE DEBIT
its NORMAL SIDE
REPAIRS AND MAINTENANCE 530 EXPENSE DEBIT
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THE GENERAL LEDGER…Other Format THE SUBSIDIARY LEDGER

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THE SUBSIDIARY LEDGER THE SUBSIDIARY LEDGER

A subsidiary ledger (sub-ledger) is a sub-account
related to a GL account that traces the
transactions corresponding to a specific company,
purchase, property, etc. If a GL account includes
sub-ledgers, they are called controlling accounts.

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THE SUBSIDIARY LEDGER THE SUBSIDIARY LEDGER

Example Example
Accounts Accounts Accounts Accounts GL Accounts
Payable Receivable Payable Receivable

Supplier 1 Customer 1 Supplier 1 Customer 1

Sub-GL
Supplier 2 Customer 2 Supplier 2 Customer 2
Accounts

Supplier 3 Customer 3 Supplier 3 Customer 3

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LECTURER End of Lecture 4

ALONEY B. SOMIDO, JR.

Email: absomido.jr@gmail.com
Mobile: 0917-157-9347; 0933-861-3298
Landline: (083)302-25-69
FB Msgr: Al Bato Somido Jr.; m.me/aloneysomidojr

Under the guidance of

MS. ARIANE KRISTINE FORTINEZ
Bookkeeping NC-3 Trainor

Thank you!