SACRED HEART OF JESUS MONTESSORI SCHOOL

J.R. Borja Extension, Gusa, Cagayan de Oro City

Montessori-Based Learning
Learning Instructional Packets (LIPs)

OFFLINE-PICK-UP

Accounting ( 1 hour/week)
First Quarter

Week-8
Posting from Journals to the Ledgers

Teacher: Liezl A. Deloso

SACRED HEART OF JESUS MONTESSORI SCHOOL

J.R. Borja Extension, Gusa, Cagayan de Oro City
 Montessori-Based Learning
Learning Instructional Packets (LIPs)
Accounting _Week 08
S.Y 2021-2022_November 13, 2021

Name: ________________________________________________ Date submitted: ________________

Grade & Section: ______________________________________ Teacher: _______________________
-----------------------------------------------------------------------------------------------------------------

Content Standard:
• The students will understand the process of posting from the journals to the ledgers.

Performance Standard:
• The students can explain the procedures in posting transactions to the ledgers.

I. LEARNING COMPETENCY
• The students will be able to know the procedures in posting transactions to the ledgers.

Objectives:
1. Understand the proper use of ledgers.
2. Post transactions into the individual account ledgers.

II. LEARNING CONTENT

Lesson 1:
• Posting from the Journals to the Ledgers

Materials:
1. LIPs

References:
1. K to 12 Curriculum Guide
2. Accounting
By: Atty. Graciano B. Neri, Jr.
Second Edition
3. Accounting for Non-Accountants
By: Michael P. Cañares, CPA
2018 Edition

III. LESSON PRESENTATION

Posting from Journals to the Ledgers

In our previous lesson, we learned how to record transactions in the journal after identifying the business
transactions. Journalizing is essentially the first phase in accounting. In this lesson, we will move to the second phase
which is about classification of transactions.

Classifying is grouping together transactions to the same types of financial statement accounts. The basis of
classifying are the journal entries that were recorded during the second step of the accounting process which is
journalizing. Classifying involves posting the recorded transactions in the ledger, considered the book of final entry.
POSTING is the process of transferring the entries from the book of original entry(journal) to the book of final
entry(ledger). This is the third step in the accounting process cycle.

Each transaction affects at least two accounts, as what we have learned in our previous lesson. Businesses
however do not only have a single transaction in a day. Transactions can be as many depending on the size of the
company, the nature of its products and the volume of its customers. Also, an account can be positively (meaning, the
account will increase) or negatively (the account will decrease) affected by a transaction. In this case, there is a need to
know all the effects of the business transactions to particular accounts in a certain period,

For example, we purchased office supplies at least 20 times in a given month, how do we know the total of all
office supplies purchased for the month?
 The only way to know this is to classify the effects of transactions per account basis. Thus we need to have
transaction effects posted to each account. This is the process of posting.

How do we post transactions?

We have learned in our previous lesson that a T-account is an accounting tool used to summarize the transactions
for a particular period of time affecting a certain accounting value or account. A T-account is prepared for all accounts of
a business. It is composed of two sides – the debit and the credit side as shown below:

Account

Debit Credit

We need to prepare one T-account for each of the accounts contained in a business’s chart of accounts so that we
will be able to summarize all transactions that affect each of the accounts in a particular period. We will use the following
list of transactions as an example.

August 25 - Mr. Silva invested P 75,000 in cash to open a pet shop.

-He also bought a computer for P 15,000, paid in cash.
26 -Purchased pet supplies amounting to 20,000, per credit invoice 185.
27 -Paid in advance the rental of the shop amounting to P 10,000.
29 -Received P 18,000 for payment of one pet dog bought by a customer.
-He paid P 1,750 as salary for five (5) days of his pet shop assistant.
  -Bought a printer for office use worth P 7,000 in cash.
30 -Paid the 20,000 pet supplies bought on credit last August 26.

If we want to summarize the effect of the above transactions of the cash account, one option is to do a simple
mathematical computation as indicated below:

Cash received:
August 25 – Investment P 75,000
August 29 – Sales income/revenue 18,000
Total cash received P 93,000
Less: Cash paid
August 25 – Purchase of computer P 15,000
August 27 – Rental 10,000
August 29
Salary (assistant) 1,750
Printer 7,000
Office Supplies 20,000 53,750
Cash balance for August P 39,250

However, the T-account is a more convenient device in doing this summary. It will look like this:

Cash

08/25 Investment 75,000 08/25 Computer 15,000

08/27 Service income 18,000 08/27 Rental 10,000
08/30 Salary 1,750
Printer 7,000
Office supplies 20,500

Total Debits 93,000 Total Credits 53,750

Balance 39,250

The Ledger
 To facilitate the preparation of the summary of each account through the use of the T-account, we will now learn
about the ledger which is considered the book of final entry. The ledger summarizes the journal entries affecting each
account in a given accounting period and resembles a T-account. There are two sides of a ledger, the debit and the credit
side. Each side has a date, particulars, folio and amount columns where journal entries will be transferred for purposes of
classification.

Account
Date Particulars F Amount Date Particulars F Amount
0825 Investment

a.) Date – the date at which transaction occurred. On the first column, we write here the number equivalent of the
month (e.g. 10 for October). On the second column, we write the date when the transaction happened.
b.) Particulars – the space where we write the nature of the transaction that happened on this date.
c.) Folio – the corresponding journal page where the account posted come from as handy reference. For example,
if the entry comes from the 2nd page of the journal, we may write J-002. Also, in the journal, the folio
indicates also the page where the transaction is posted in the ledger.
d.) Amount – the amount of the transaction posted. The same applies regarding where the figures will be
positioned in the columns.

Steps in Posting to individual ledgers

1. Enter account name and number on the ledger form.

2. Post the date, description and reference number of each journal entry for each account. The reference # could
be J-1, where J refers to journal and 1 refers to the journal page
where entry was originally recorded.
3. Record the debits and credits of each transactions.
4. Calculate the running balance of debit and credit accounts.
5. Check for mathematical and data transfer errors.

Example

We will use the transactions journalized in the previous lesson for posting. The journal is shown below
for reference. Please take note that this time we already indicated the folio entries in the journal.

Date Particulars F Debit Credit

08 25 Cash L-1 7 5 0 0 0 00
Capital 7 5 0 0 0 00
(Mr. Silva) L-5
Equipment L-3 1 5 0 0 0 00

Cash L-1 1 5 0 0 0 00
(Equipment for
cash)
26 Supplies L-2 2 0 0 0 0 00
Accounts Payable 2 0 0 0 0 00
(Supplies on
Account) L-4
27 Rent Expense L-7 1 0 0 0 0 00
Cash L-1 1 0 0 0 0 00
(Rental-Shop)
29 Cash L-1 1 8 0 0 0 00
Sales Income L-6 1 8 0 0 0 00
(Cash from sales-
dog)
Salaries Expense L-8 1 7 5 0 00

Cash 1 7 5 0 00
(Cash for salary) L-1
 Equipment L-3 7 0 0 0 00
Cash L-1 7 0 0 0 00
(Equipment for cash)
30 Accounts payable L-4 2 0 0 0 0 00
Cash L-1 2 0 0 0 0 00
(Cash for payment of
supplies)

Cash transactions posted to the individual ledgers below from the journal above:

CASH 001

Date Particulars F Amount Date Particulars F Amount

08 25 Investment J- 7 5 0 0 0 00 08 25 Computer J- 1 5 0 0 0 0
1 1 0
08 29 Sales revenue J- 1 8 0 0 0 00 08 27 Rental J- 1 0 0 0 0 0
1 1 0
9 3 0 0 0 00 08 29 Salaries J- 1 7 5 0 0
1 0
Printer J- 7 0 0 0 0
1 0
08 30 Supplies J- 2 0 0 0 0 0
1 0
5 3 7 5 0 0
0
00
Balance 3 9 2 5 0

SUPPLIES 002

Date Particulars F Amount Date Particulars F Amount

08 26 Purchase J- 2 0 0 0 0 00
1
00
Balance 2 0 0 0 0

EQUIPMENT 003

Date Particulars F Amount Date Particulars F Amount

08 25 Purchase- J- 1 5 0 0 0 00
Computer 1
08 29 Purchase-Printer J- 7 0 0 0 00
1

00
Balance 2 2 0 0 0

ACOUNTS PAYABLE 004

Date Particulars F Amount Date Particulars F Amount

08 30 Payment J- 2 0 0 0 0 00 08 26 Supplies J- 2 0 0 0 0 0
1 1 0

Balance 0

MR. SILVA, CAPITAL 005

Date Particulars F Amount Date Particulars F Amount

08 25 Investment J- 7 5 0 0 0 0
 1 0

0
Balance 7 5 0 0 0 0

SALES INCOME 006

Date Particulars F Amount Date Particulars F Amount

08 29 Cash J- 1 8 0 0 0 0
1 0

0
Balance 1 8 0 0 0 0

RENT 007

Date Particulars F Amount Date Particulars F Amount

08 27 Cash J- 1 0 0 0 0 00
1

00
Balance 1 0 0 0 0

SALARIES 008

Date Particulars F Amount Date Particulars F Amount

08 29 Cash J- 1 7 5 0 00
1
1 7 5 0 00
Balance