Post Transaction

Sector:
HEALTH, SOCIAL AND OTHER COMMUNITY DEVELOPMENT SERVICES

Qualification:
BOOKKEEPING NC III
Unit of Competency:
POST TRANSACTIONS
Module Title:
POSTING TRANSACTIONS
Developed by:
ROGEN S. GASCON
BAROBO NATIONAL HIGH SCHOOL
Barobo, Surigao del Sur
HOW TO USE THIS COMPETENCY-BASED LEARNING MATERIALS
Welcome!
The unit of competency, “Post Transactions”, is one of the competencies

of BOOKKEEPING NC III, a course which comprises the knowledge, skills,
and attitudes required for a Bookkeeper to possess.
This module, Posting Transactions, contains information sheets, self-

checks and performance tasks which serves as assessment for the
information read and learned; answer keys and performance criteria
checklist for the checking and evaluation of answers and performances.
You are required to go through the series of learning activities in order to
complete each learning outcome. Follow and perform the activities on your
own. If you have questions, do not hesitate to ask for assistance from your
facilitator/ trainer.
Remember to:
*Read information sheets and complete the self-checks.
Date Developed: Document No.
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Bookkeeping NC Issued by:
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Posting Developed by:

Transaction ROGEN S. GASCON Revision # 00
*Perform the Task Sheets until you are confident that your
outputs conform to the Performance Criteria Checklist that
follows the sheets.
*Submit outputs of the Task Sheets to your facilitator for

evaluation and recording in the Accomplishment Chart.
Outputs shall serve as your portfolio during the Institutional
Competency Evaluation. When you feel confident that you have
had sufficient practice, ask your trainer to evaluate you. The
results of your assessment will be recorded in your Progress
and Accomplishment Chart.
You must pass the Institutional Competency Evaluation for this

competency before moving to another competency. A Certificate of
Achievement will be awarded to you after passing the evaluation.
You need to complete this module before you can proceed to the next
unit of competency. Goodluck and may God bless you as you take up this
module
List of Core Competencies
No. Unit of Competency Module Title Code
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1. Journalize Transaction Journalizing Transaction HCS412301
2. Post Transaction Posting Transaction

HCS412302
3. Prepare Trial Balance Preparing Trial Balance

HCS412303
4. Prepare Financial Reports Preparing Financial Reports

HCS412304
Review Internal Control

5. The Internal Control System
System HCS412305
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MODULE CONTENT
QUALIFICATION BOOKKEEPING NC III
UNIT OF COMPETENCY Post Transaction
MODULE TITLE Posting Transaction
INTRODUCTION:
This unit covers the knowledge, skills, and attitudes in posting transactions manually for all
types of business organizations and business activities.
LEARNING OUTCOMES:
1. Prepare Ledger
2. Transfer journal entries
3. Summarize ledger
ASSESSMENT CRITERIA:
1. Ledger for the list of asset, liability, and equity, and income and expense account
titles are prepared in accordance with the Chart of Accounts
2. Journal entries are transferred in chronological order and postings with 100%
accuracy
3. Debits & Credits for each ledger account are added accurately.
4. Balances are extracted with 100% accuracy.
PREREQUISITE: Journalized Transactions
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TECHNICAL TERMS
 Account is a formal record that represents, in words, money or other

unit of measurement, certain resources, claims to such resources,
transactions or other events that result in changes to those resources
and claims
 Asset represents future benefit to the company with reliable
measurement
 Balance is the Sum of DEBIT entries minus the SUM of CREDIT
entries in an ACCOUNT. If positive, the difference is called a DEBIT
BALANCE; if negative, a CREDIT BALANCE
 Capital is called equity.
 Credit (cr) - means an entry to the right hand side of an account.
Entry on the right side of a DOUBLE-ENTRY BOOKKEEPING system
that represents the reduction of an ASSET or expense or the addition
to a LIABILITY or REVENUE. (See DEBIT.)
 Debit (dr) - means an entry to the left hand side of an account. Entry
on the left side of a DOUBLE-ENTRY BOOKKEEPING system that
represents the addition of an ASSET or expense or the reduction to a
LIABILITY or REVENUE. (See CREDIT.)
 Drawing is when a business proprietor draws money for personal
needs
 Expenses represent the outflow of assets (or increases in liabilities)
due to a company’s operating activities.
 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.
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 Liability represents obligations, payables or debts owed. DEBTS or
obligations owed by one entity (DEBTOR) to another entity
(CREDITOR) payable in money, goods, or services.
 Nominal Accounts are accounts that are temporary and their
balances are being closed by the end of the period.
 Posting is the process of transferring figures from the journal to the
ledger accounts.
 Real Accounts are the account that is permanent and their balances
are carried forward from one fiscal year to the next.
 Subsidiary Ledger is a group of subsidiary accounts the sum of the
balances of which is equal to the balance of the related control
account in the general ledger.
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LEARNING OUTCOME SUMMARY
LEARNING
Prepare Ledger
OUTCOME #1
CONTENTS:
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1. Posting Procedure for all types of business organization and activities.
1. Ledger for the list of asset, liability, and equity, and income and
expense account titles are prepared in accordance with the Chart of
Accounts
CONDITION:
The students/trainees must be provided with the following:
 Calculator
 Ledger
 Learning Materials
 Pencil
 Eraser
 Ruler
 Chart of Accounts of all types of business organizations.

EVALUATION METHOD:
1. Written Test
2. Practical/ performance test
Learning Experiences
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Learning Outcome 1: Prepare Ledger
Learning Activities Special Instructions
1. Read information sheet If you have some problem on the content of
2.1-1 ”Preparing the information sheet don’t hesitate to
Ledger” approach your facilitator.
If you feel that you are now knowledgeable
on the content of the information sheet, you
can now answer self-check provided in the
module.
2. Answer self-check 2.1- Compare your answer to the answer key 2.1-
1 1. If you got 100% correct answer in this
self-check, you can now move to the next
information sheet. If not review the
information sheet and go over the self-check
again.
INFORMATION SHEET 2.1-1
Preparing Ledger
Learning Objective:
After reading this INFORMATION SHEET, YOU MUST be able to
identify the Basic Terms and how to prepare a Ledger for every account.
LEDGER
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To keep track of transactions and changes as they occur, a system of
records is used. The type of record traditionally used for the purpose of
recording individual transactions is called an account. The name given to
an account is known as an account title. The number assigned to an
account is called account number. Each account is divided into Debit and
Credit portions. Debit is the left hand side of an account or the “value
received with” and credit is the right hand side of an account or the “value
parted with”.
A group of related accounts that comprise a complete unit, such as all

of the accounts of a specific organization, is called a ledger. A ledger that
contains all accounts needed to prepare financial statements is called a
general ledger.
The accounts in the general ledger are classified into two general
groups:
1. Balance Sheet or Permanent Accounts (assets, liabilities and

owner’s equity)
2. Income Statement or Temporary Accounts (income and expenses).
Temporary or nominal accounts are used to gather information for
a particular accounting period. At the end of the period, the
balances of these accounts are transferred to a permanent owner’s
equity account.
There are two major formats of general ledger, the three-amount-
column format or the computer based system (refer figure 1.1) and T-
account (refer figure 1.2). The difference between these two is that, the latter
one is the format that is used in the real business world while the other one
is primarily for teaching and analysis of complex transactions.
FIGURE 1.1 THREE-AMOUNT COLUMN FORMAT
ACCOUNT TITLES: ACCOUNT No.
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DATE DESCRIPTION R DEBIT CREDIT BALANCE
FIGURE 1.2 T-ACCOUNT FORMAT

ACCOUNT TITLE
DEBIT CREDIT
Use of an three-amount column format
A T-account looks like English alphabet "T" which is why a ledger

account is also referred to as "T" account.
A T-Account has three main parts:

1. Title is the name of account
2. Debit is on the left hand side
3. Credit is on the right hand side
Here are some examples of transaction using a T-account:
May 1 Penaco started his new business by depositing P 250,000.00 in

a bank account in the name of Penaco WebPage Express at
Equitable PCI-CDO Branch.
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Asset (Increase) = Owner’s Equity (Increase)
Cash Penaco, Capital
Debit Credit Debit Credit

(+) (-) (-) (+)
5/1 250,000 5/1 250,000
This transaction increased both the asset – cash and owner’s equity.
According to the rules of debit and credit, an increase in asset is recorded as
debit while an increase in owner’s equity is recorded as credit; thus, the
entry is to debit cash and credit Penaco, Capital. The transaction dates are
placed on the left side of the amount for reference.
May 2 Computer equipment is acquired by issuing a P 50,00.00 note

payable to Microsoft Office Systems. The note is due in six
months.
Asset (Increase) = Liabilities (Increase)
Computer Equipment Notes Payable
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(+) (-) (-) (+)
5/2 50,000 5/2 50,000
The transaction increased by P 50,000 the asset – computer

equipment and the liability – notes payable. Computer equipment must be
debited and notes payable must be credited.
May 3 Penaco paid P 15,000.00 to Liceo Grande Suites for rent on the
office studio for the month of May, June and July.
Assets (Decrease) = Assets (Increase)
Cash Prepaid Rent

(+) (-) (+) (-)
5/1 250,000 5/3 15,000 5/3 15,000
The entity paid advance rent for three-months. A resource having

future economic benefit – prepaid rent, is acquired for a cash payment of P
15,000. Increases in assets are recorded by debits and decreases in assets
are recorded by credits. The transaction resulted to a debit to prepaid rent
and a credit to cash for P 15,000. The prepaid rent is consumed based on
the passage of time so that after one month, P 5,000 of the prepaid rent will
be transferred to the rent expense account.
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May 4 Received advance payment of P 18,000.00 from Roa Leisure
Hotel for web site updating for the next three month.
Assets (Increase) = Liabilities (Increase)
Cash Unearned Revenues

(+) (-) (-) (+)
5/1 250,000 5/3 15,000 5/4 18,000

5/4 18,000
The entity has an obligation to Roa Leisure Hotel for the next three
months. This liability is called unearned revenues. The asset – cash is
increased by a debit of P 18,000 and the liability – unearned revenues is
increased by a credit of P 18,000. As it renders service, the entity discharge
its obligation at a rate of P 6,000 per month for the next three months.
May 5 Computer equipment costing P 178,000 is acquired on cash

basis.
Assets (Decrease) = Assets (Increase)
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Cash Computer Equipment

(+) (-) (+) (-)
5/1 250,000 5/3 15,000 5/2 50,000

5/4 18,000 5/5 178,000 5/5 178,000
This transaction increased the asset – computer equipment and

decreased the asset – cash. Assets are increased by debits and decreased by
credits; thus, computer equipment is debited and cash is credited for P
178,000.
May 9 Computer supplies in the amount of P 9,000.00 are purchased

on account.
Assets (Increase) = Liabilities (Increase)
Computer Supplies Accounts Payable

(+) (-) (-) (+)
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5/9 9,000 5/9 9,000
The asset – computer supplies is increased by a debit of P 9,000 while

the liability account – accounts payable is increased by a credit for the same
amount.
May 11 Penaco WebPage Express collected P 77,000.00 in cash for

designing web sites.
Assets (Increase) = Owner’s Equity (Increase)
Cash Design Revenues

(+) (-) (-) (+)
5/1 250,000 5/3 15,000

5/4 18,000 5/5 178,000
5/11 77,000 5/11 77,000
The transaction increased the asset – cash and increased the income
account – design revenues. Assets are increased by debits, income are
increased by credits; hence, a debit of P 77,000.00 to cash and a credit of P
77,000.00 to design revenues is made. Increases in income increase owner’s
equity.
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May 16 Penaco paid P 15,000.00 to Bills Unlimited for the semi-monthly
utilities.
Assets (Decrease) = Owner’s Equity

(Decrease)
Cash Utilities Expense

Debit Credit Debit
Credit
(+) (-) (+) (-)
5/1 250,000 5/3 15,000

5/4 18,000 5/5 178,000
5/11 77,000 5/16 15,000 5/16 15,000
Expenses are increased by debits and assets are decreased by credits;
therefore, utilities expense is debited and cash credited for P 15,000.
Increases in expenses decrease owner’s equity.
May 17 Penaco billed clients P 25,000.00 for services already rendered

during the month.
Assets (Increase) = Owner’s Equity
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Accounts Receivable Design Revenues
Debits Credit Debit Credit

(+) (-) (-) (+)
5/11 77,000
5/17 25,000 5/17 25,000
Assets are increased by debits, income are increased by credits.

Increase in income increase owner’s equity. A debit of P 25,000 to accounts
receivable and a credit of P 25,000 to the income account – design revenues
is needed.
May 19 Penaco partially paid P 7,000.00 for the May 9 purchase of

computer supplies.
Assets (Decrease) = Liabilities (Decrease)
Cash Accounts Payable
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(+) (-) (-) (+)
5/1 250,000 5/3 15,000 5/9 9,000

5/4 18,000 5/5 178,000
5/11 77,000 5/16 15,000
5/19 7,000 5/19 7,000
Assets are decreased by credits while liabilities are decreased by

debits. The transaction is recorded by debiting accounts payable and
crediting cash for P 7,000 each.
May 20 Received checks totaling P 21,000.00 from clients for billing

dated May 17.
Assets (Increase) = Assets (Decrease)
Cash Accounts Receivable

(+) (-) (+) (-)
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5/1 250,000 5/3 15,000 5/17 25,000 5/20 21,000
5/4 18,000 5/5 178,000
5/11 77,000 5/16 15,000
5/20 21,000 5/19 7,000
Collections on account reduced the asset – accounts receivable but

increased the asset – cash. Assets are increased by debits and decreased by
credits; thus, a debit to cash for P 21,000 and a credit to accounts
receivable for P 21,000 is made.
May 21 Penaco withdrew P 20,000.00 from the business for his personal
use.
Assets (Decrease) = Owner’s Equity (Decrease)
Cash Penaco, Withdrawal

(+) (-) (+) (-)
5/1 250,000 5/3 15,000 5/21 20,000

5/4 18,000 5/5 178,000
5/11 77,000 5/16 15,000
5/20 21,000 5/19 7,000
5/21 20,000
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Withdrawals are reductions of owner’s equity but are expenses of the
business entity. A withdrawal is a personal transaction of the owner that is
exactly the opposite of an investment. This transaction increased the
withdrawals account but reduced cash. Debits record increases in the
withdrawals account and credits record decreases in asset accounts; thus, a
debit to withdrawals and a credit to cash for P 20,000 each is necessary.
May 27 Daganta billed Penaco for P 8,000.00 internet ads. Penaco will
pay next month.
Liabilities (Increase) = Owner’s Equity (Decrease)
Accounts Payable Advertising Expense

(-) (+) (+) (-)
5/19 7,000 5/9 9,000 5/27 8,000

5/27 8,000
This transaction increased the expense – advertising expense and increased

the liability – accounts payable by P 8,000. Expenses are increased by debits
while liabilities are increased by credits; hence, an entry to debit advertising
expense and to credit accounts payable for P 8,000 is needed.
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May 31 Penaco paid his assistant web designer salaries of P 15,000.00
for the month.
Assets (Decrease) = Owner’s Equity (Decrease)
Cash Salaries Expense

(+) (-) (+) (-)
5/1 250,000 5/3 15,000 5/31 15,000

5/4 18,000 5/5 178,000
5/11 77,000 5/16 15,000
5/20 21,000 5/19 7,000
5/21 20,000
5/31 15,000
Expenses are increased by debits and assets are decreased by credits.

Hence, salaries expense is debited for P 15,000 and cash credited for the
same amount. Increases in salaries expense decrease owner’s equity.
Use of Three-Column Ledger
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In practice accounts are usually prepared in three column ledger
account or running balance method, layout especially, when business
uses an integrated computerized system.
The major advantage of this form is that it shows the latest account
balance at a glance. This form of account has six columns.
 Date column, to show date of the transaction for both debt and credit
entries.
 Details column, to provide cross reference with regard to the other

accounts involved in the ledger.
 Folio column, to provide additional reference of the item recorded in the

account.
 Debit amount column, to record the monetary value of the item debited.
 Credited amount column, to record the monetary value of the item

credited.
 Balance amount column, to show the net balance after each and every
transaction, therefore this layout is called running balance method.
Below are examples of three-column ledger:
Cash Account:

Date Particulars PR Debit Credit Balance
Beginning Balance - - -
Oct. 1 To Capital 40000 - 40000
Oct. 3 By Supplies - 700 39300
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Oct. 8 By Truck - 10000 29300
Oct.
By Rent - 750 28550
18
Oct.
By Service Revenue 1200 - 29750
19
Oct. 2
By Wage - 4100 25650
3
Oct. 2
By Prepaid Insurance - 2960 22690
5
Oct. 2
By A/C Payable - 2400 20290
6
Oct. 2
To Service Revenue 1400 - 21690
8
Oct.
By Misc. Expense - 330 21360
29
Oct.
By Wage Exp. - 4300 17060
30
Oct.
By Drawings - 3000 14060
31
Equipment Account

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Oct. 1 To Capital - ABC Traders 3000 3000
Oct. 15 To A/C Payable 1500 4500
ABC Trader Capital Account

Oct. 1 By Cash Php 20000 Php 20000
Oct. 1 By Equipment 3000 23000

Supplies Account

Oct. 3 To Cash Php 700 Php 700

Truck Account

Rent Expense Account
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Services Revenue Account

Oct. 19 By Cash Php 1200 Php 1200
Oct. 28 By Cash 1400 2600

Wages Account

Oct. 30 To Cash 4300 8400

Prepaid Insurance Account


Truck Expense Account

Oct. 29 A/C Payable Php 410 Php 410

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Misc. Expense Account

Oct. 29 To Cash 330 330 Dr.

ABC Traders - Drawing Account

Oct.31 To Cash 3000 3000 Dr.

Notes Payable Account

Oct. 8 To Truck 24000 24000 Cr.
Accounts Payable Account

Oct. 15 To Equipment 1500 1500 Cr.
Oct. 22 To Supplies 2600 4100 Cr.
Oct. 26 To Cash 2400 - 1700 Cr.
Oct. 29 To Truck 410 2110 Cr.
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Accounts in the ledger are customarily listed in the order in which
they appear in the financial statements and are classified according to
common characteristics (e.g. assets, liabilities and owner’s equity).
The side increase and decrease of an account is determined by the

type of an account. There are two kinds of accounts, the permanent
accounts and temporary accounts. The real accounts include assets,
liabilities and owner’s equity; these accounts are indicated in the balance
sheet while temporary accounts are withdrawal, revenue and expense. In a
ledger there are types of accounts, these assets, liabilities, owner’s equity,
withdrawal, revenue and expense. In determining the increase and decrease
of an account the balance sheet is the basis.
Accounting equation is A (assets) = L (Liabilities) + OE (Owner’s
Equity)
In terms of assets, withdrawal and drawing accounts,it increases
when posted in debit and decreases in credit while in terms of liabilities,
owner’s equity and revenue, it increases when posted in credit and
decreases in debit. Each account has its normal balances. It is always the
side which is used to increases in the account.
There are two categories of general ledger that the account would fall;
these are the Real accounts and Temporary accounts. Real accounts
include assets, liabilities and owner’s equity. These accounts are permanent
and its balances are being carried out for the next period. Temporary
accounts include owner’s withdrawal, revenue and expenses which balance
are being closed by the end of the period.
Example of accounts is payable or creditor account, purchases
account, sales accounts, receivable or debtor account, cash account, bank
account, machinery account, building account, vehicle account etc.
Before we can post some transaction we have to open the accounts
heads in ledger books. A ledger book contains similar type of pages having
serial numbers. It also contains an index in beginning of ledger books. The
name of account head is written in index of ledger and the same account
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head is written on any page of ledger. Then, the page number of that
particular account head is written against that account head in index.
In short preparing a ledger, first, account is created. From that list of
accounts, beginning balances to each general ledger account is inputted and
the rest will be the posting of accounts.
Self Check 2.1-1
A. Multiple Choice
Direction: Choose the best answer of the given choices. Use a separate
sheet of paper in answering.
1. Which of the following accounts would normally be expected to have a
debit (or left-side) balance?
A. Accounts Payable
B. Buildings
C. Interest Revenue
D. Owners Equity
2. Which of the following accounts would normally be expected to have a
credit (or right-side) balance?
A. Accounts Receivable
B. Salary Expense
C. Salary Payable
D. Land
3. It is a group of related accounts that comprise a complete unit, such as
all of the accounts of a specific organization.
A. Account
B. Account Titles
C. General Ledger
D. Ledger
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4. It is the left hand side of an account.
A. Account Title
B. Balance
C. Credit
D. Debit
5. It is also the other term for ledger.
A. Balance Account
B. L account
C. T Account
D. Account
6. It is the name given to an account.
A. Account
B. Account Titles
C. General Ledger
D. Ledger
7. It is also known as “value parted with”
A. Account Title
B. Balance
C. Credit
D. Debit
8. It is one of the main part of a ledger in which located at the right side of
the account.
A. Account Title
B. Balance
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C. Credit
D. Debit
9. It is the ledger that contains all accounts needed to prepare financial
statements.
A. Account
B. Account Titles
C. General Ledger
D. Ledger
10. It is also known as “Debit”
A. Value received with
B. Value parted with
C. Balance
D. Value
ANSWER KEY 2.2-1
A. MULTIPLE CHOICE
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1. B 6. B
2. C 7. C
3. D 8. C
4. D 9. C
5. C 10. A
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LEARNING
Transfer Journal Entries
OUTCOME #2
CONTENTS:
1. Posting Procedure for all types of business organizations.
1. Journal entries are transferred in chronological order with 100%
accuracy.
CONDITION:
1. Calculator
2. Learning Material
3. Pencil
4. Eraser
5. Ledger
6. Ruler
EVALUATION METHOD:
 Written test
 Practical/ performance test
 Interview
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Learning Outcome 2: Transfer Journal Entries

1. Read information sheet 2.2- If you have some problem on the
1 content of the information sheet don’t
hesitate to approach your facilitator.
“Transfer Journal Entries”
If you feel that you are now
knowledgeable on the content of the
information sheet, you can answer
self check provided in the module.
2.Answer Task Sheet 2.2-1 Compare your answer to the answer
key 2.2-1. If you got 100% correct
answer in this self-check you can
proceed to the next information sheet.
If not review the information sheet
and go over the self-check again.
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Transfer Journal Entries
Learning Objective:
After reading this INFORMATION SHEET, YOU MUST be able to post

journal entries in chronological order with 100% accuracy
Initial, all transactions are recorded in the General Journal. Each
transaction always affects at least two different accounts; one account has a
debit effect and the second account has a credit effect. After journalizing the
transaction, the next step is to post the journal entry. When we say posting,
it is the process of transferring information from the journal to individual
general ledger accounts. Posting the journal entries to the ledger accounts
creates a record of the impact of business transactions on each account
used by a business. Also, by posting it would be to find and know the
current balance of a specific account. Every time a journal entry is posted
there is a new balance computed for the specific account. When posting is
completed from left to right
There are seven (7) steps in posting a journal entry for (refer Figure
2.1):
1. Enter the date of the journal entry in the date column of the
account debited. Use the date of the journal entry, not the date on
which the posting is done. Write the year and month or year
changes. The day, however, is entered.
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2. The description column on the ledger account is usually left blank.
Some businesses use this space to write in the source document
number.
3. In the ledger account posting reference (Post. Ref.) Column, identify
where the journal entry is recorded. Enter a letter a specific journal
and journal page number (GJ-1, GJ stands for General Journal).
4. Enter the debit amount in the debit column of the ledger account.
5. Compute and record the new account balance in the balance
column. Every amount posted will either increase or decrease the
balance of that account.
6. Return to the journal and, in the posting reference column, enter
the account number of the ledger account to which you just posted
the debit part of the journal entry. Be sure it is entered on the
same line as the debit entry. This step of the posting process is
very important. The notation in the posting reference column of the
journal indicates that the journal entry has been posted. The
posting reference also shows the account to which the entry is
posted. Never write an account number in the posting reference
column until after you have posted.
7. Repeat steps 1-6 for the credit part of the journal entry.
GENERAL JOURNAL
PAGE 1
DATE DESCRIPTION R DEBIT CREDIT
1 20__ 1
2 Aug. 1 Cash in Bank GL101 25 0 0 0 00 2
3 R. Cario, Capital GL301 25 0 0 0 00 3
4 To record investment of the owner 4
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5 5
6 Enter the account
number in the
4 Enter the general journal

2 Description column 3 Enter the journal debit amount reference
Usually blank letter and page number
in reference column 5 Compute the
new balance
1 Enter the date of the

ACCOUN TITLES: Cash in Bank ACCOUNT No. 101
journal entry
20__
Aug. 1 GJ1 25 0 0 0 00 25 0 0 0 00
7 Repeat steps 1-6 for the credit

part of journal entry
ACCOUN TITLES: R. Cario, Capital ACCOUNT No. 301
20__
Aug. 1 GJ1 25 0 0 0 00 25 0 0 0 00
Figure 2.1 Posting from General Journal to General Ledger

TASK SHEET 2.2-1
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A. Instructions: Post the following journal entries to the General ledger.
2015 PARTICULARS F DEBIT CREDIT
Mar 1 Cash P 850,000
R. Cario, Capital P 850,000
To record initial investment by

the owner.
2 Laundry Supplies 90,000
Accounts Payable 90,000
To record purchase of supplies

on account.
3 Laundry Equipment 150,000
Cash 150,000
To record purchase of
equipment.
4 Accounts Receivable 80,000
Laundry Income 80,000
To rendered service on account
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10 Taxes and Licenses 4,000
Cash 4,000
To record payment for licenses.
12 R. Cario, Drawing 10,000
Cash 10,000
To record withdrawal by the

owner for his personal use.
17 Cash 100,000
Notes Payable 100,000
To record borrowed money from

bank with promissory note
21 Cash 45,000
Accounts Receivable 45,000
To record collection from

customer’s account.
25 Accounts Payable 60,000
Cash 60,000
To record payment to creditor.
30 Rent Expense 5,000
Utilities Expense 12,000
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Salary Expense 10,000
Cash 27,000
To record payment for various

expenses.
GENERAL LEDGER
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Account Title: Cash Account No. 110
DATE PARTICULARS F DEBIT CREDIT BALANCE
Account Title: Accounts Receivable Account No. 120
Account Title: Laundry Supplies Account No. 130
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Account Title: Laundry Equipment Account No. 130
Account Title: Notes Payable Account No. 210
Account Title: Accounts Payable Account No. 220
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Account Title: R. Cario, Capital Account No. 310
Account Title: R. Cario, Drawing Account No. 320
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Account Title: Laundry Income Account No. 410
Account Title: Salaries Expense Account No. 510
Account Title: Rent Expense Account No. 520
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Account Title: Utilities Expense Account No. 530
Account Title: Taxes and Licenses Account No. 530
ANSWER KEY 2.2-1

GENERAL LEDGER
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Mar 1 Investment GJ-1 P 850,000
3 Purchase-Equipment GJ-1 P150,000
10 Payment-Taxes GJ-1 4,000
12 Withdrawal GJ-1 10,000
17 Loan GJ-1 100,000
21 Collection GJ-1 45,000
25 Payment-creditor GJ-2 60,000
30 Payment-expenses GJ-2 27,000
Mar 4 Revenue GJ-1 P 80,000
21 Collection GJ-1 P 45,000
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Mar 2 Purchase-Supplies GJ-1 P 90,000
Mar 3 Purchase GJ-1 P 150,000
Mar 17 Bank Loan GJ-1 P 100,000
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25 Payment GJ-2 P 60,000
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Mar 12 Withdrawal GJ-1 P 10,000
Mar 4 Revenue-on account GJ-1 P 80,000
Mar 30 Payment-expense GJ-2 P 10,000
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Mar 10 Payment-expense GJ-2 P 4, 000

LEARNING Summarize Ledger
OUTCOME #3
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CONTENTS:
1. Balance Extractions
a. Debits & Credits for each ledger account are added correctly.
b. Balances are extracted with 100% accuracy
CONDITION:
1. Calculator
2. Paper
3. Learning Material
4. Pencil
5. Eraser
6. Ledger
EVALUATION METHOD:
1. Written Test
2. Practical/ Performance test
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Learning Outcome 3: Summarize ledger

1. Read information sheet 2.3-1 If you have some problem on the
content of the information sheet
“Summarize Ledger”
don’t hesitate to approach your
facilitator.
If you feel that you are now
knowledgeable on the content of the
information sheet, you can answer
self check provided in the module.
2.Answer Task Sheet 2.3-1 Compare your answer to the answer
key 2.3-1. If you got 100% correct
answer in this self-check you can
proceed to the next information
sheet. If not review the information
sheet and go over the self-check
again.
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Summarize Ledger
Learning Objective:
After reading this INFORMATION SHEET, YOU MUST be able to

balance each debit and credit with 100% accuracy in every account.
After posting the journal entries to the ledger, the amounts of debit
and credit are being totaled and usually done at the end of each month. This
is called “footing”. Footing defined as the process of adding each of the two
amount columns of an account or item in the general ledger and finding
their balances thereof.
If an account is a debit balance (debit total is bigger than the credit

total), the amount is placed on the “particular” column of the debit side. If
the account, on the other hand is a credit balance (credit total is bigger than
debit total), the amount of difference is placed on the “particular’ column of
the credit side. If there is only one entry in any side of an account in the
ledger, no footing is done and the entry is left “as is”.
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In a computer –based system wherein a three-money column ledger is
used, footing is no longer necessary because the account maintains a
running balance.
Below are examples of ledger with footing and with running balance
respectively:
Account Titles: Cash Account No. 1
DATE PARTICULARS F DEBIT DATE PARTICULARS F CREDIT
03 1 Revenue P 100,000 03 5 Withdrawal P 10,000
25 Collection 45,000 10 Taxes & Licenses 1,000
27 Investment 250,000
384,000 395,000 11,000
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May 1 Revenue P 100,000 P 100,000
5 Withdrawal P 10,000 90,000
10 Taxes & Licenses 1,000 89,000
25 Collection 45,000 134,000
27 Investment 250,000 384,000
As what is stated, computing the new balance of each account part of

posting. The rule of finding a new balance is that debits are added to debits,
credits are added to credit, but debits and credits are subtracted. After you
post an account, compute the new account balance as follows:
When the existing account balance is debit, and

 the amount posted is a debit, ADD the amounts.
 the amount posted is a credit, SUBTRACT the amounts.
When the existing account balance is credit, and
 the amount posted is a debit, SUBTRACT the amounts.
 the amount posted is a credit, ADD the amounts.
Also, please take note of the normal balance of each account for you
to indentify correctly when to add and subtract.
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TASK SHEET 2.3-1
Instruction: Get the balances of each account applying running balance.
GENERAL LEDGER
3 Purchase-Equipment GJ-1 P150,000
10 Payment-Taxes GJ-1 4,000
12 Withdrawal GJ-1 10,000
17 Loan GJ-1 100,000
21 Collection GJ-1 45,000
25 Payment-creditor GJ-2 60,000
30 Payment-expenses GJ-2 27,000
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Mar 4 Revenue GJ-1 P 80,000
21 Collection GJ-1 P 45,000
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Mar 3 Purchase-Equipment GJ-1 P 150,000
Mar 17 Bank Loan GJ-1 P 100,000
25 Payment GJ-2 P 60,000
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Mar 12 Withdrawal GJ-1 P 10,000
Mar 4 Revenue- on acount GJ-1 P 80,000
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Mar 10 Payment-expense GJ-2 P 4, 000
ANSWER KEY 2.3-1
GENERAL LEDGER
Mar 1 Investment GJ-1 P 850,000 P 850,000
3 Purchase-Equipment GJ-1 P150,000 700,000
10 Payment-Taxes GJ-1 4,000 696,000
12 Withdrawal GJ-1 10,000 686,000
17 Loan GJ-1 100,000 786,000
21 Collection GJ-1 45,000 831,000
25 Payment-creditor GJ-2 60,000 771,000
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30 Payment-expenses GJ-2 27,000 772,000
Mar 4 Revenue GJ-1 P 80,000 P 80,000
21 Collection GJ-1 P 45,000 35,000
Mar 2 Purchase-Supplies GJ-1 P 90,000 P 90,000
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Mar 3 Purchase-on account GJ-1 P 150,000 P 150,000
Mar 17 Bank Loan GJ-1 P 100,000 P 100,000
Mar 2 Purchase-supplies GJ-1 P 90,000 P 90,000
25 Payment GJ-2 P 60,000 30,000
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Mar 1 Investment GJ-1 P 850,000 P 850,000
Mar 12 Withdrawal GJ-1 P 10,000 P 10,000
Mar 4 Revenue-on account GJ-1 P 80,000 P 80,000
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Mar 30 Payment-expense GJ-2 P 10,000 P 10,000
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Mar 10 Payment-expense GJ-2 P 4, 000 P 4, 000
REFERENCES
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Books:
FUNDAMENTALS OF ACCOUNTING
Rafael M. Lopez
2013-2015 Edition
HANDBOOK ON WORKPLACE MENTORING IN BOOKKEEPING

K to 12 PLUS Project - Finance Dualized Education
Finanzgruppe - Sparkassenstiftung fur internationale Kooperation
2013-2016
Internet Sources:
http://wikipedia.org/bookkeeping
http://mrhaworth.weebly.com/uploads/2/8/0/8/2808974/
glencoe_accounting_chp7.pdf
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HEALTH, SOCIAL AND OTHER COMMUNITY DEVELOPMENT SERVICES

The unit of competency, “Post Transactions”, is one of the competencies

This module, Posting Transactions, contains information sheets, self-

*Read information sheets and complete the self-checks.

Date Developed: Document No.

CBLM on April 2017

Posting Developed by:

*Submit outputs of the Task Sheets to your facilitator for

You must pass the Institutional Competency Evaluation for this

List of Core Competencies

No. Unit of Competency Module Title Code

Date Developed: Document No.

CBLM on April 2017

Posting Developed by:

2. Post Transaction Posting Transaction

3. Prepare Trial Balance Preparing Trial Balance

4. Prepare Financial Reports Preparing Financial Reports

Review Internal Control

Date Developed: Document No.

CBLM on April 2017

Posting Developed by:

QUALIFICATION BOOKKEEPING NC III

UNIT OF COMPETENCY Post Transaction

MODULE TITLE Posting Transaction

2. Transfer journal entries

4. Balances are extracted with 100% accuracy.

PREREQUISITE: Journalized Transactions

Date Developed: Document No.

CBLM on April 2017

Posting Developed by:

 Account is a formal record that represents, in words, money or other

CBLM on April 2017

Posting Developed by:

Date Developed: Document No.

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Posting Developed by:

Date Developed: Document No.

CBLM on April 2017

Posting Developed by:

 Chart of Accounts of all types of business organizations.

Date Developed: Document No.

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Posting Developed by:

INFORMATION SHEET 2.1-1

Date Developed: Document No.

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Posting Developed by:

A group of related accounts that comprise a complete unit, such as all

1. Balance Sheet or Permanent Accounts (assets, liabilities and

Date Developed: Document No.

CBLM on April 2017

Posting Developed by:

FIGURE 1.2 T-ACCOUNT FORMAT

Use of an three-amount column format

A T-account looks like English alphabet "T" which is why a ledger

A T-Account has three main parts:

May 1 Penaco started his new business by depositing P 250,000.00 in

Date Developed: Document No.

CBLM on April 2017

Posting Developed by:

Cash Penaco, Capital

Debit Credit Debit Credit