GENERAL LEDGER

A general ledger is the “reference book” of the accounting system and is used to classify and
summarize transactions, and to prepare data for basic financial statements.

The general ledger is where all the accounts and transactions relating to those accounts are
stored. Some general ledger accounts are summary records which are referred to as control
accounts. Ang General ledgers ay used by companies especially yung mga companies that
use double-entry accounting to keep track of their financial activities.
So ang general ledger is important for assessing a company’s financial performance. Bilang
may ari ng company, you can use a general ledger to form a more accurate transaction of
your company’s financial standing ang yung mga nakita mo, which may lead to better
financial decisions.

These transactions are organized by account, like assets, liabilities, expenses, and revenue.
So later on malalaman natin.

The accounts in the general ledger are classified into two general group
TWO GENERAL GROUPS
1. Balance sheet or Permanent accounts (dito makikita or nakapaloob yung assets,
liabilities, and owner’s equity)

2. Income statement or Temporary accounts (dito naman makikita yun income and
expenses) kapag sinabi nating temporary account ay ito a ginagamit to gather
information for a particular accounting period.

6 COMMON TYPES OF GENERAL LEDGER ACCOUNTS

A general ledger typically records the following accounts:
 Assets - resources or things na pagmamay ari ng companya

 Some examples of asset accounts include:

 Accounts receivable
 Cash
 Inventory
  Investments

 Liabilities – kapag sinabing liabilities ito ay company’s debts or mga utang o

bayaran

The following are examples of liability accounts:

 Accounts payable
 Notes payable
 Accrued expenses
 Customer deposits

 Equity – ito yung mga na invest ng companya or mga remaining assets available to
the company after all liabilities have been paid.

Below are some examples of equity accounts:

 Common stock
 Retained earnings
 Treasury stock

 Revenue – income or pera ng company na pumasok

The following are examples of revenue accounts:

 Sales
 Service fee revenues

 Expenses – pera ng ginastos ng company, all money spent on business activities para
sa ikakabuti ng company.

expense accounts record the cost of doing business and include the following
accounts:

 Salaries
 Rent
 Advertising
 Cost of goods sold
  Other income accounts - tumutukoy sa kita ng negosyo na walang kaugnayan sa mga
pangunahing pagpapatakbo ng negosyo at karaniwang nagaganap sa labas ng pang-
araw-araw na operasyon.

Below are examples of non-operating or other income accounts:

 Gain on sale of assets

 Interest
 Loss on disposal of assets

HOW DO YOU WRITE A GENERAL LEDGER?

ang general ledger contains the date and description of each transaction, nandiyan na yung debit
and credit side of a T-shaped visual depiction of the transaction or tinatawag na T-account.
Tinawatag itong T – account kasi T shaped siya along with the credit and debit side.

Step 1: Finalize Journal Entries

Make sure to log all transactions for the month before preparing the General Ledger to prevent
going back and forth your different Accounting books.

So bakit natin kailangna ifinalize yung journal entries? To maintain accurate

records matutulungan rin tayo nitong matandaan and mapadali ang pag prepare
ng general ledger and if hindi maayos yung paglagay nating ng transacations sa
journal magkakaproblem din tayo sa paggawa ng general ledger and hindi
magiging accurate yung mga transactions.

Step 2: Post Transactions to Your Ledger

After finalizing your journal entries, it’s time to open your General Ledger. In there, create
separate pages for each account. This means one for each asset, liability, owner’s equity,
revenue, and expense account.
CHARTS OF ACCOUNTS
A listing of all accounts and account numbers in the ledger is known as the charts of accounts.
Before posting much better if gumawa or icategorize muna yung charts of accounts para
maging easy yung transaction records,
The chart is arranged in the financial statement order, that is, assets first, followed by
liabilities, owner’s equity , income and expenses. Makikita niyo the accounts should be
numbered in a flexible manner para mapadali yung cross referencing natin and para na
din matabulates lahat ng recorded accounts in the company’s general ledger.

BALANCE SHEET ACCOUNTS INCOME STATEMENT ACCOUNT

Assets Income
11 Cash 41 Service Income
12 Account Receivable R.GIL
13 Account Receivable M. Soriano Expenses
14 Repair Tools
15 Repair Supplies 51 advertising expense
16 Furniture and Fixture 52 salaries and wages
17 Service Truck 53 utility expense
514 rent expense
Liabilities
21 Accounts Payable
21 Notes Payable

Owner’s Equity
311 G. Alajar, Capital
312 G. Alajar, Personal

Ang mga companies ay gumagamit ng chart of accounts to organize their records by

providing a complete list of all the accounts sa general ledger of the business. So now u can
see, The chart makes it easy to prepare information
Take note.
Kung ano yung nasa debit side ng journal iyon din ang ilalagay natin sa debit side ng
ledger
Kung ano yung nasa credit side ng journal iyon din ang nasa credit side ng ledger

The step 2 is tinatawag nating posting means transferring the amounts na galing sa journal
to the appropriate accounts na ilalagay natin sa ledger.
Next slide is the steps for transferring the amounts from journal to ledger.

Steps for transferring the amounts:

1. Transfer the date and explanation of the transaction from the journal to the ledger
2. Post the debit figure from the journal as debit figure in the ledger and the credit figure from
the journal as a credit figure in the ledger.
3. Transfer the page number from the journal to the journal references column of the ledger.
4. Enter the account number in the posting reference column of the journal once the figure has
been posted to the ledger.
- so ito na yung mag sisilbing cross reference natin kung gusto natin ma trace ang
amount from one record to another.
- kapag sinulat na natin ang account number sa journal ibig sabihin na posting is
completed.

Step 3: Get the Final Amounts

LEDGER ACCOUNTS AFTER POSTING

 Each account balance is determined by footing (adding) all the debits and credits.
 If the sum of an account’s debit is greater than sum of its credits, that account as a debit
balance.
 If the sum of its credits is greater, that account has a credit balance

Step 4: Check and Recheck

Checking and rechecking the ledger accounts is important para malaman naming if
accurate ba yung transaction natin na galing journal na nilagay natin sa general ledger. So
Finally, to make sure that every journal entry is accounted for, all these account totals will go
into your Trial Balance.
Which will be discuss by our next presenter. MR.

Sum it ip

Let’s recall all accounting cycle

the purpose of the general journal (also known as the book of original entry) is used to
illustrate the journaling process for transactions and events in nang pasunod sunod, due
to the fact that the general journal is very short, and even if it is long, hindi ito
makakaapekto sa company about the balance in each account.

So dito na papasok yung general ledger where All financial transactions, debits and
credits are recorded in the general ledger. this would make the general ledger the
primary accounting record in use for a business used to track all of their financial
transactions, and company’s financial statements. Within the general ledger, we have
five types of accounts. These include & assets, liabilities, owner’s equity, revenue, and
expenses and typically gains and losses too

since we do have financial statements being mentioned here,diyan naman papasok ang trial
balance. much like all of the transactions from the journal are recorded in the general ledger, a
trial balance keeps record of a ledgers accounts, along with their credits and debits. basically, the
main purpose of the trial balance is to make sure that the credits and debits line up, or to put it
simply, to make sure they equal

lastly. The financial statements are used to very clearly present financial information which
would include& income statements, balance sheets, retained earning sstatements and cash flows,
and a number of other statements.
financial statements assure honest business practices for both the people and the companys in
question. Madali natin malalaman ang financial statement from transferring the amounts from
the general ledger records to the trial balance, and then transferring these records into the
financial statements, creative a tentative set of financial statements.

Recording transaction in the journal

Post to ledger accounts

Prepare a trial balance

Prepare the financial statements