FABM 1. Module 6 PDF

Senior High School
Fundamentals of
Accountancy, Business
and Management 1
Module 6: Books of Accounts
Fundamentals of Accountancy, Business and Management – Grade 11
Self-Instructional Learning Material (SILM)
First Edition, 2020
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Development Team
Writer: Merven R. Tirado

Content Editors: George P. Fulgencio, Pepito Gardose
Language Editors: Pepito Gardose, Catherine C. Valenzuela
Illustrator: Merven R. Tirado
Layout Artist: Allan T. Basubas, Jaypee K. Balera, Kryss Mayven L. Fabrero,
Sammie Per S. Montero, Merven R. Tirado
Cover Art Designer: Joseph Bacsarpa
Reviewers: Yusof A. Aliudin, Mary Joy D. Bautista, Mary Anne A. Barrientos,
Marivic D. Devibar, Ruth J. Gumangi, Monica D. Bermejo,
Maria Jane N. Agrave
Management Team
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11
Fundamentals of
Accountancy, Business
and Management 1
`
Introductory Message
For the facilitator:
Welcome to the Fundamentals of Accountancy, Business and Management - Grade

11Self-Instructional Learning Material on Books of Accounts.
This module was collaboratively designed, developed and reviewed by educators both
from public and private institutions to assist you, the teacher or facilitator in helping
the learners meet the standards set by the K to 12 Curriculum while overcoming
their personal, social, and economic constraints in schooling.
This learning resource hopes to engage the learners into guided and independent
learning activities at their own pace and time. Furthermore, this also aims to help
learners acquire the needed 21st century skills while taking into consideration their
needs and circumstances.
In addition to the material in the main text, you will also see this box in the body of
the module:
Notes to the Teacher
Hello, dear teacher of learning! You are lucky to have this learning
material intended to easily deliver the lessons for our learners and
enhance their knowledge on Books of Accounts. Please help them achieve
our learning objective.
Please advise our learners to read, understand, analyze, and

answer all the activities and questions seriously as this material is
designed and made for them. This is also to inform our learners to take
some precautionary measures and some activities need extra care.
This is just a reminder dear teacher of learning, do not go beyond
our objectives and main goal for our learners. Be an agent of learning.
Have fun!
As a facilitator, you are expected to orient the learners on how to use this module.
You also need to keep track of the learners' progress while allowing them to manage
their own learning. Furthermore, you are expected to encourage and assist the
learners as they do the tasks included in the module.
ii
For the learner:
Welcome to the Fundamentals of Accountancy, Business and Management - Grade

11 Self-Instructional Learning Material (SILM) Module on Books of Accounts.
The hand is one of the most symbolized part of the human body. It is often used to
depict skill, action, and purpose. Through our hands we may learn, create, and
accomplish. Hence, the hand in this learning resource signifies that you as a learner
is capable and empowered to successfully achieve the relevant competencies and
skills at your own pace and time. Your academic success lies in your own hands!
This module was designed to provide you with fun and meaningful opportunities for
guided and independent learning at your own pace and time. You will be enabled to
process the contents of the learning resource while being an active learner.
This module has the following parts and corresponding icons:
What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in the
module.
What I Know This part includes an activity that aims to

check what you already know about the
lesson to take. If you get all the answers
correct (100%), you may decide to skip this
module.
What’s In This is a brief drill or review to help you link

the current lesson with the previous one.
What’s New In this portion, the new lesson will be

introduced to you in various ways such as a
story, a song, a poem, a problem opener, an
activity or a situation.
What is It This section provides a brief discussion of the

lesson. This aims to help you discover and
understand new concepts and skills.
What’s More This comprises activities for independent

practice to solidify your understanding and
skills of the topic. You may check the
answers to the exercises using the Answer
Key at the end of the module.
What I Have Learned This includes questions or blank

sentence/paragraph to be filled into process
what you learned from the lesson.
What I Can Do This section provides an activity which will

help you transfer your new knowledge or skill
into real life situations or concerns.
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Assessment This is a task which aims to evaluate your
level of mastery in achieving the learning
competency.
Additional Activities In this portion, another activity will be given

to you to enrich your knowledge or skill of the
lesson learned. This also tends retention of
learned concepts.
Answer Key This contains answers to all activities in the

module.
At the end of this module you will also find:
References This is a list of all sources used in developing

this module.
The following are some reminders in using this module:
1. Use the module with care. Do not put unnecessary mark/s on any part of the
module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.
If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are
not alone.
We hope that through this material, you will experience meaningful learning and
gain deep understanding of the relevant competencies. You can do it!
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What I Need to Know
Being organized and discreet with everything we do would most likely provide
us peace of mind. We tend to remember almost what we did last week; when do we
keep doing things; where we constantly put things we often forget; how much did we
spend on the entire travel; and the reason why did we spend so much on that
particular thing. See how important records are. Without them, we might just forget
how things done and where did it all go.
In the corporate world, accounting records are as vital as the business itself.
They are the basis of the financial information we need to convey to other sectors.
They should be reliable and verifiable so that decision makers can be able to create
unbiased informed decisions. Thus, correct, and proper recording is a must.
In this module, you will learn where those records should be kept and what
does it looks like.
Most Essential Learning Competencies:
1. Illustrate the format of a general and special journals

(ABM_FABM11-IIIf-23)
2. Illustrate the format of a general and subsidiary ledger
(ABM_FABM11-IIIf-24)
This module is divided into two lesson:

Lesson 1. General and Special Journals
Lesson 2. General and Special Ledgers
After going through this module, you are expected to:
1. define Journal and Ledger;

2. identify types of Journal and Ledger;
3. illustrate the format of general and special journals;
4. illustrate the format of general and subsidiary ledgers; and
5. differentiate the difference between Journal and Ledger.
1
What I Know
Directions: Read the following questions carefully and select the correct
answer from the given options. Write your answer on a separate
sheet of paper.
1. It is one of the books of accounts that are used in business where

transactions are recorded for the first time.
a. Journal b. Special Journal
c. Ledger d. Special Ledger
2. This is also called Book of Original Entry.

a. Journal b. Special Journal
c. Ledger d. Special Ledger
2. A__________ has spaces for dates, account titles and explanations,

references, and two amount columns.
a. General Journal b. Special Journal
c. General Ledger d. Special Ledger
3. Only transactions involving sale of merchandise on account or on credit

terms are recorded in this book.
a. Purchases Journal b. Sales Journal
c. Cash Receipts Journal d. Cash Disbursements Journal
5. Only transactions involving cash payments are recorded in this book.

6. Only transactions involving purchase of merchandise on account or on

credit terms are recorded in this book.
7. Only transactions involving receipts of cash are recorded in this book.

8. Shows the number of an account in a ledger or page of a ledger to

which it was transferred.
a. Date Column b. Money Column
c. Folio d. Particulars
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9. Shows the item or the accounts debited and credited because of a
transaction analysis as well as a brief or concise explanation of what the
transaction is about.
a. Date Column b. Money Column
c. Folio d. Particulars
10. Payment of utilities expense is recorded in _______________.

a. purchases journal b. sales journal
c. cash receipts journal d. cash disbursements journal
11. Collect proceeds from rendering services is recorded in ____________.

12. Investments of cash is recorded in ________________.

13. Withdrawal of money is recorded in ______________.

a. general journal b. purchases journal
14. Purchased land on account is recorded on what books of accounts?

a. general journal b. purchases journal
15. You purchased merchandise worth P10,000. You paid P5,000 during the
purchase and the remaining amount will be paid on the following month.
How much will you record on purchases journal?
a. P10,000 b. P5,000
c. P15,000 d. P0
3
Lesson
1 General and Special Journals
What’s In
Directions: Read and understand the questions carefully. Write your answer on a
separate sheet of paper.
1. What are the five major account titles? Provide a brief definition for each of
them.
2. Give at least five examples of each major account title (except for equity).
Then create your own chart of accounts.
Rubrics for Scoring
Criteria 5 4 3 2
Understanding Demonstrate Demonstrate Provide only Did not
of the content an in-depth
substantial direct support the
understanding understanding answers and answer
of the topic of the topic, unclear
and provide
and provide justification
clear clear of answer
justification of
justification of
answer answer though
some
supporting
ideas may be
misunderstood.
Completion of Achieved the Accomplished Completed Attempted to
task purpose of the task most of the accomplish
task, including task the task, but
insightful with little or
interpretations no success
and
conjectures
4
What’s New
Activity 1
Directions: Determine the illustrations below. Choose your answer from

the box and write your answer on a separate sheet of paper.
General Journal Sales Journal
Purchases Journal Cash Disbursement Journal
1.
2.
3.
5
Activity 2
Directions: Match the columnar headings with their appropriate definition. Choose
your answer from the box and write it in a separate sheet of paper.
Date Column Particulars Folio

Debit Column Credit Column
1. _______________shows the number of an account in a ledger or page of a

ledger to which it was transferred. It is the Latin word for page. It is also
called a reference.
2. _______________this is a money column showing the peso amount of the
value received in a transaction.
3. _______________shows the item or the accounts debited and credited
because of a transaction analysis as well as a brief or concise explanation
of what the transaction is about.
4. _______________this is the money column showing the peso amount of the
value parted with in a transaction.
5. _______________shows the date when the transactions took place.
What is It
Companies initially record transactions in chronological order (the order in

which they occur). For this reason, there are two sets of books that are used by the
business: the JOURNAL and the LEDGER. The Book of Original Entry is called
Journal which is of two kinds; the General Journal and the Special Journal. This
is called the book of original entry because it is in this book where transactions are
recorded for the first time.
A General Journal can that be of a loose-leaf or book-bound form.
Date Particulars F Debit Credit
Date Column. Shows the date when the transactions took place.
Particulars. Shows the item or the accounts debited and credited because of a
transaction analysis as well as a brief or concise explanation of what the transaction
is about.
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Folio. Shows the number of an account in a ledger or page of a ledger to which it
was transferred. It is the Latin word for page. It is also called a reference.
Debit Column. This is a money column showing the peso amount of the value
received in a transaction.
Credit Column. This is the money column showing the peso amount of the value
parted with in a transaction.
The use of a General Journal as a book of original entry was over emphasized.
It will be voluminous and unwieldy because of the number of transactions recorded
daily. Aside from this, only one person can have the knowledge and control of the
transactions because only one person can be given task to do the recording in the
General Journal.
That is why; other entities usually prefer to use Special Journals. Each
special journal has specific use in recording transactions as discussed below:
Sales Journal – only transactions involving sale of merchandise on account or on

credit terms are recorded in this book. The pro-forma journal entry is:
Accounts Receivable
Sales
Date Suppliers Charge Terms Accounts Sales

Invoice No. Receivable Cr.
Purchases Journal - only transactions involving purchase of merchandise on

account or on credit terms are recorded in this book. The pro-forma journal entry is:
Purchases
Accounts Payable
Date Customers Charge Terms Accounts Purchases

Invoice No. Payable Dr.
Cash Receipts Journal – only transactions involving receipts of cash are recorded
in this book. The pro-forma journal entry is:
Cash
Various Credits (as mentioned above)
Date Customers C.R./Cash Cash in Accounts Sales (or

Sales Bank (or Receivable any SUNDRIES
Invoice any (or any various
various various account) Account Amount
Titles
debit credit Cr.
Dr. Cr.
account) account)
Dr. Cr.
Note: Columns may be added by additional applicable account titles
7
Cash Disbursements Journal – only transactions involving cash payments are
recorded in this book. The pro-forma for journal entry is:
Various debits (as mentioned above)
Cash
Date Payee Explanation Check Check Cash in

No. Voucher Bank SUNDRIES
No. Cr.
Account Amount
Titles
Dr. Cr.
Note: Columns may be added by additional applicable account titles
What’s More
Activity 1
Directions: Determine the following transaction to the journal that should be

appropriately recorded. Write (G) for General Journal, (S) for Sales
Journal, (P) for Purchases Journal, (CR) for Cash Receipts Journal and
(CD) for Cash Disbursement Journal. Write your answer on a separate
sheet of paper.
1. Purchase of Transportation Equipment for Cash

2. Investment by Owner
3. Borrowed Money from a Bank
4. Purchase of Store Supplies on Account
5. Purchase of Merchandise on Account
6. Rendered Installation Services for Cash
7. Freight on Merchandise Purchased
8. Purchase of Merchandise for Cash
9. Return of Merchandise Purchased in Cash
10. Merchandise Sold for Cash
11. Freight on Merchandise Sold
12. Payment of Taxes and Licenses
13. Sold Merchandise on Account
14. Hiring of an Accountant
15. Withdrawal by the Owner
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Activity 2
Directions: Identify the journal in which each of the transactions below is recorded.
Determine if the transaction involves the receipt of cash (cash receipts
journal) or the payment of cash (cash payments journal) or if the
transaction is a sale of merchandise on account (sales journal) or a
purchase of merchandise on account (purchases journal). All other
transactions are recorded in the general journal. Write your answer on
a separate sheet of paper.
1. Collected cash on account from Akihiro Company.

2. Purchased equipment by signing a note payable.
3. Sold merchandise on account.
4. Purchased merchandise on account.

5. Paid P2,400 for a 2-year insurance policy.
Activity 3
Directions: Journalize the transactions in the cash receipts journal and contrast the
posting of the Accounts Receivable and Other Accounts columns. Write
your answer in a separate sheet of paper.
BigayAyuda Company uses a six-column cash receipts journal with the
following columns.
Cash (Dr.) Other Accounts (Cr.)
Sales Discounts (Dr.) Cost of Goods Sold (Dr.) and
Accounts Receivable (Cr.) Inventory (Cr.)
Sales Revenue (Cr.)
Cash receipts transactions for the month of July 2020 are as follows:
July 3 Cash sales total P5,800 (cost, P3,480)

5 Received a check for P6,370 from Jeltz Company in
payment of an invoice dated June 26 for P6,500, terms
2/10, n/30
9 Cassandra Wilson, the proprietor, made an additional
investment ofP5,000 in cash in the business
10 Cash sales total P12,519 (cost, P7,511)
12 Received a check for P7,275 from R. Eliot & Co. in
payment of a P7,500 invoice dated July 3, terms 3/10,
n/30
15 Received an advance of P700 cash for future services. 20
Cash sales total P15,472 (cost, P9,283)
22 Received a check for P5,880 from Beck Company in
payment of P6,000 invoice dated July 13, terms 2/10,
n/30
29 Cash sales total P17,660 (cost, P10,596)
31 Received cash of P200 on interest earned for July.
9
BigayAyuda Company
Cash Receipts Journal CR1
Date Account Ref. Cash Sales Accounts Sales Other Cost of
Credited Dr. Discount Receivable Revenue Accounts Goods
Dr. Cr. Cr. Cr. Sold Dr.
Inventory
Cr.
What I Have Learned
Test I. Identify the accounting terms for each item.

1. The Book of Original Entry
2. This is called the book of original entry because it is in this book where
transactions are recorded for the first time.
3. It can that be of a loose-leaf or book-bound form.
4. This is a money column showing the peso amount of the value received in a
transaction.
5. Shows the item or the accounts debited and credited as a result of a transaction
analysis as well as a brief or concise explanation of what the transaction is about.
6. Shows the date when the transactions took place.
7. Shows the number of an account in a ledger or page of a ledger to which it was
transferred. It is the Latin word for page. It is also called a reference.
8. This is the money column showing the peso amount of the value parted with in a
transaction.
9. Only transactions involving purchase of merchandise on account or on credit
terms are recorded in this book.
10. Only transactions involving sale of merchandise on account or on credit terms
are recorded in this book.
11. Only transactions involving receipts of cash are recorded in this book.
12. Only transactions involving cash payments are recorded in this book.
10
Test II. Based on the given headings, identify the special journal it referred to.
1.
Date Payee Explanation Check Check Cash in
No. Voucher Bank SUNDRIES
No. Cr.
Account Amount
Titles
Dr. Cr.
2.
Date Customers C.R./Cash Cash in Accounts Sales (or
Sales Bank (or Receivable any SUNDRIES
Invoice any (or any various
various various account) Account Amount
Titles
debit credit Cr.
Dr. Cr.
account) account)
Dr. Cr.
3.
Date Suppliers Charge Terms Accounts Sales
Invoice No. Receivable Cr.
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What I Can Do
Activity 6
Directions: Illustrate the format of all Special Journals that were discussed and
provide their differences. Write your answers on a separate sheet of
paper.
Rubrics for Scoring
Points
Criteria Advanced Proficient Approaching Developing Beginning
Proficient
(10) (8) (6) (4) (2)
Understandin Demonstrate Demonstrate Provide only Provide no Needs
g and an in-depth substantial the definition difference improveme
application of understandin understandin of users nt
concept g of the topic g of the topic,
and provide and provide
clear definition and
definition and differences of
difference of the two users
the two users though some
supporting
ideas may be
misunderstoo
d.
Format Follows proper Follows Follows Follows Needs
headings and proper proper proper improveme
spacing, headings and headings, but headings, nt
amounts are spacing, did not follow did not
on the right amounts are proper follow
column with on the right spacing, proper
peso sign column but some spacing,
without peso amounts are most of the
sign not on the amounts
right column, are not on
without peso the right
sign, column,
and no peso
sign
Effort and Completed Completed Completed Incomplete Needs
Perseverance work and work with work but work with improveme
show much good effort with minimal minimal nt
effort effort effort
12
Assessment
Direction: Read and understand the questions carefully. Write your answer on a
1. All business transactions are first recorded chronologically in these books of

account.
a. General Journal
b. General Ledger
c. Special Journal
d. Subsidiary Ledger
2. Which of the following is shown in the column titled “Folio”?

a. Page of general ledger to where account will be transferred
b. Page of a general journal from where account is present
c. The accountant should always leave it blank
d. Account Number
3. Which of the following statement is true?

a. Sales journal can record sale of merchandise paid half the amount on cash
and half on credit
b. Purchases journal recorded purchase of merchandise already paid but not
yet received
c. Pre-collection of income from sales is recorded under sales journal.
d. Special journals are mandatory
4. Which transaction is recorded in cash disbursement journal?

a. Receipt of cash for services performed
b. Owner withdrawal of cash
c. Sold merchandise on credit
d. Cash sales
5. Which of the following is recorded in cash receipts journal?

a. Bought inventory for cash
b. Sales Revenue for cash
c. Land acquired for cash
d. Credit sales
6. Which of the following is recorded in sales journal?

a. Sale of goods to customers on account
b. Sale of office equipment on account
c. Provide sales discount to customers
d. Received collection from sales
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7. Which of the following is recorded in purchases journal?
a. Payment of accounts due for merchandise purchased
b. Received purchased discounts from sellers
c. Bought merchandise on credit
d. Bought land for personal use
8. Which of the following statement about general journal is true?

a. The general journal does not help to prevent or locate errors because the
debit and credit amounts for each entry are always written equal.
b. There might be transactions that will not shows the debit and credit effects
on specific accounts.
c. Companies initially record transactions in chronological order.
d. It does not disclose in one place the complete effects of a transaction.
9. Which of the following is not included in the heading of a general journal?

a. Brief explanation for each transaction
b. Amounts to be debited and credited
c. Date of business transaction
d. Date of personal transaction
10. Which of the following BEST describes the reason why general journal is called
the book of original entry?
a. Recording in general journal is the first thing to do to check the validity of
transaction.
b. Transactions that happened first are recorded in general journal.
c. It is the books of account the investors first examined.
d. Transactions are first recorded in general journal.
11. Which of the following BEST describes the reason why credit account titles are
indented?
a. It is a decision made by the entity whether to indent or not
b. Easy recognition for value received and parted with
c. Emphasis for value received and parted with
d. The Philippine Accounting Standard (PAS) says so
12. When is the column titled “Folio or Reference” written with account numbers?
a. When the journal entries are transferred to the ledger accounts
b. When the journal entries are finished
c. When the business entity provides
d. It depends on the accountant
13. Which of the following statement is false?

a. Once a company chooses the specific title to use, it should record all later
transactions involving the account but can still change anytime if the
accounting department say so.
b. There are flexibility exists initially in selecting account titles, but the main
criterion is that each title must appropriately describe the content of the
account.
c. It is important to use correct and specific account titles in journalizing.
d. Erroneous account titles lead to incorrect financial statements.
14
14. What is the standard form for special journals?
a. It always involves the column date, particulars and accounts involved
b. It always depend on the business entity
d. There are actually no standard formats
c. The PAS states the standard form
15. Which of the following BEST describes the difference between general journal
and special journal?
a. General journal is used with only few transactions while special journals
are used when transaction involved in the entity is immense.
b. Special journals are intended for special transactions while general journal
is for general transaction of the business.
c. General journal is used by service concern business while special journals
are used by merchandising business.
d. General journal records transactions not applicable to special journals.
Additional Activities
A. Indicate whether each of the following debits and credits is included in the
cash receipts journal. (Use “Yes” or “No” to answer this question). Write your
answer in a separate sheet of paper.
(a) Debit to Sales Revenue

(b) Credit to Inventory
(c) Credit to Accounts Receivable
(d) Debit to Accounts Payable.
B. Journalize transactions on special journals. Write your answer in a

The following are transactions of SayangABS Co. on the month of January:

a. Invests cash P550,000 on the business.
b. Purchase merchandise from Lofranco Inc. on account, P11,500.
c. Deliver goods to Uriarte Co., P3,450.
d. Paid freight on delivering goods, P350.
e. Sold merchandise to Bannister & Absuelo Store, on account, P1,190.
f. Paid monthly salaries to employees, P15,900.
g. Collect P1,500 from Bannister & Absuelo Store.
h. Paid accounts due to Lofranco Inc., P10,000.
j. Purchase merchandise from Bales Enterprise on account, P18,300.
15
What I Know
Directions: Choose the correct answer from the given choices. Write your answer on
a separate sheet of paper.
1. It is one of the books of accounts that are used in the business where
transactions that were recorded in the Journal are transferred for final
recording.
a. Journal
b. Ledger
c. Special Journal
2. This is also called Book of Final Entry.

a. Journal
b. Ledger
c. Special Journal
3. This book will group items or accounts of the same kind, class or nature.
Each item or account is being provided with a leaf of a ledger.
a. General Journal
b. General Ledger
c. Special Journal
4. This shows the details or breakdown as to who those customers indebted

to the business are and who those suppliers are whom the entity has not
paid yet.
a. General Journal
b. General Ledger
c. Special Journal
5. This shows the details or breakdown as to who those customers indebted

to the business.
a. Accounts Receivable Subsidiary Ledger
b. Accounts Payable Subsidiary Ledger
c. Cash Disbursements Ledger
d. Cash Receipts Ledger
16
6. This shows the details or breakdown as to who those suppliers the company
owed.
c. Cash Disbursements Ledger
d. Cash Receipts Ledger
7. The debit money column shows the amounts that are transferred from the
debit money column of the Journal while the credit money column shows
the amounts that are transferred from one credit money columns of the
Journal.
a. False
b. True
c. Maybe
d. Undecided
8. Particular is also called Explanation, Description or Item.

a. False
b. True
c. Maybe
d. Undecided
9. On the date column, shows the date of the transaction that occurred as
recorded in the Journal.
a. False
b. True
c. Maybe
d. Undecided
10. The simple T-account is just like a general ledger.

a. False
b. True
c. Maybe
d. Undecided
17
Lesson
General Ledger and
2 Subsidiary Ledger
What’s In
1. What are the similarities of general and special journals?

2. Enumerate all special journals discussed and provide a brief definition for each
journals.
Rubrics for Scoring

Criteria Points
Advanced Proficient Approaching Developing
Proficient
(10) (8) (6) (4)
and provide
justification of
justification of
some
supporting
ideas may be
misunderstood.
and
conjectures
18
What’s New
Activity 1
Directions: Analyze and observe the figures and answer the questions that follow.
Write your answer on a separate sheet of paper.
Figure 1
Figure 2
Figure 3
19
Questions:
1. What do you call the first picture? How about the second and the third one?
2. What do you think are their purposes in the business?
3. Based on your answers on no. 1, what do you think are the types of
business transactions that suited the above books?
4. Expound your observations about the comparison and difference of the
three pictures. Discuss also how do you think it relates to the Journals?
Rubrics for Scoring

Criteria Points
Advanced Proficient Approaching Developing
Proficient
(10) (8) (6) (4)
and provide
justification of
justification of
some
supporting
ideas may be
misunderstood.
and
conjectures
What is It
Ledger is the second major books of accounts used by the business. This is
also called the Book of Final Entry because it is in this book where transactions that
were recorded in the Journal are transferred for final recording. It has two kinds,
namely: The General Ledger and the Subsidiary Ledger.
General Ledger (also called Group of Accounts) can that also be of a loose
leaf or book bound form. This book will group items or accounts of the same kind,
class, or nature. Each item or account is being provided with a leaf of a ledger.
20
A) To be used under manual accounting system
Account No.
Year Particulars F Debit Year Particulars F Credit
Month Day Month Day
B) To be used under computer-based accounting system
Account No.
Year Particulars F Debit Credit Balance
Month Day
Date Column. Shows the date of the transaction that occurred as recorded in the
Journal.
Particulars (also called Explanation, Description, or Item). Shows a brief but a

concise explanation of the transaction as shown in the Journal.
Folio. Shows the number of a Journal where entries are taken from.
Money Column. The debit money column shows the amounts that are transferred
from the debit money column of the Journal while the credit money column shows
the amounts that are transferred from one credit money columns of the Journal.
However, the simple T-account form used in accounting textbooks is often very
useful for illustration purposes. Ledgers are much more structured though and often
used in practice. The picture displays in Activity 1 is an example of a General Ledger
of a Hybrid Company.
Subsidiary Ledger is used as separate books which are maintained to show the
details or breakdown as to who those customers indebted to the business are and
who those suppliers are whom we have not yet paid.
Accounts Receivable Subsidiary Ledger
Name of the Individual Customer
Address of the Individual Customer
Date (Year) Particulars Folio Debit Credit Balance
Month Day
Debit column is for the billing of the customers while the credit column is for
the collection of their accounts.
Accounts Payable Subsidiary Ledger

Name of the Individual Supplier
Address of the Individual Supplier
Date (Year) Particulars Folio Debit Credit Balance
Month Day
21
Debit column is for the payment of various merchandise while the credit
column is for the various merchandise we acquire.
The listing of the customers or suppliers’ name should be arranged in
Alphabetical Order.
Activity 2
Directions: Determine what type of ledger (General Ledger, Accounts Receivable
Subsidiary Ledger or Accounts Payable Subsidiary Ledger) is needed for
the following scenario:
1. Mr. Knight Velasquez, the Manager of Sweet Maple Company, has an

executive board meeting in five minutes. He wanted to know how much the
balance of collectibles and payables is for the current year.
2. Mr. Jacques Sotello has a business of chains of hotels and restaurants.

Cloud Beaumont is one his many customers and a good friend as well. As
Jacques’ good friend, Cloud always leaves his friends’ hotel or restaurant
without paying anything because he tends to forget it often. That is why,
Jacques’ secretary creates a ledger of Cloud’s account. Every end of the
month, Jacques sums up his balances and collects his account. What
ledger should Jacques asked?
3. Mr. Kalix Martinez is known for having a good quality yet affordable one.
He is the biggest supplier of Luna’s Merchandise, where they sell
customized furniture and fixture. Mr. Kalix has a policy that states “If you
can pay one week ahead of your due, you can get 10% sales discount”.
Because of that, Luna would always account all its payables a week before
it is due to avail the said discount. What ledger should Luna need to look
for?
22
What’s More
Activity 1
Directions: Create individual subsidiary ledgers for each customer. Write your
answer on separate sheet of paper.
The Sales and Purchases Journals of UmwadBanisilan are shown below:
Purchases Journal (P1)
Date Account Credited Terms Ref. Inventory Dr.

Accounts Payable
Cr.
Feb 2 Montero Manufacturing Inc. 2/10, n/30 ∕ ₱18,000
5 Sumicad Retail Co. 3/10, n/30 ∕ ₱ 5,293
9 Montero Manufacturing Inc. 2/10, n/30 ∕ ₱32,976
13 Oga Mega Supplies 1/10, n/30 ∕ ₱15,090
15 Sumicad Retail Co. 3/10, n/30 ∕ ₱ 2,895
25 Oga Mega Supplies 1/10, n/30 ∕ ₱10,150
Sales Journal (S1)
Date Account Credited Terms Ref. Inventory Dr.

Accounts Payable
Cr.
May 1 Danduan Parlor Shop 5/10, n/30 ∕ ₱23,795
8 Butalid Services 8/10, n/30 ∕ ₱ 6,923
10 Tingabngab Agency 3/10, n/30 ∕ ₱30,500
15 Danduan Parlor Shop 5/10, n/30 ∕ ₱10,288
18 Tingabngab Agency 3/10, n/30 ∕ ₱ 5,900
20 Butalid Services 8/10, n/30 ∕ P15,340
23
Activity 2
Directions: Determine the balances that appear in the accounts payable

subsidiary ledger of Sims Company. Write your answers in a separate
sheet of paper.
Information related to Sims Company for its first month of operations.
Action Plan
Credit Purchases Cash Paid
✔ Subtract cash paid
from credit purchases Jan. 5 Devon Co. ₱11,000Jan. 9 Devon Co. ₱7,000
to determine the 11 Shelby Co. ₱7,000 14 Shelby Co. ₱2,000
balances in the
accounts payable 22 Taylor Co. ₱14,000 27 Taylor Co. ₱9,000
subsidiary ledger.
✔ Sum the individual

What Accounts Payable balance appears in
balances to determine
the general ledger at the end of January?
the Accounts Payable
balance.
What I Have Learned
Test I. From the list of possible answers from the box, write the letter that
corresponds to each of the given statement.
List of Possible Answers
a. Ledger f. Folio
b. General Ledger g. Particulars
c. Subsidiary Ledger i. Money Column
d. Group of Accounts j. Accounts Receivable Subsidiary Ledger
e. Date Column k. Accounts Payable Subsidiary Ledger
1. Other term for General Ledger

2. Number of a journal where entries are taken from.
3. This is also called Book of Final Entry
24
4. Shows the breakdown or details of the collectibles and payables
5. Shows the date of the transaction that occurred as recorded in the journal
6. Collects transaction data of individual customers
7. Involves debit and credit column
8. Collects transaction of individual creditors
9. Also called Explanation
10. This book group items or accounts of the same kind, class or nature
Test II. Write TRUE if the statement is true and FALSE if it is not.
1. They show in a single account transactions affecting one customer or one
creditor, thus providing up-to-date information on specific account
balances.
2. They free the general ledger of excessive details. As a result, a trial balance
of the general ledger contains vast numbers of individual account balances.
3. They help locate errors in individual accounts by adding the number of
accounts in one ledger and by using control letters.
4. They make possible a division of labor in posting. One employee can post
to the general ledger while someone else posts to the subsidiary ledgers.
What I Can Do
Directions: Answer the following questions attached to each illustration. Write

your answer on a separate sheet of paper.
1. What does this picture prove?
Accounts Receivable Subsidiary Ledger General Ledger

Debits
Abbot Sisters ₱ 15, 400 Cash ₱ 53, 769
Babson Co. ₱ 14, 570 Accounts Receivable ₱ 51, 180
Deli Co. ₱ 21, 210 Sales Discounts ₱ 781
₱ 51, 180 Cost of Goods Sold ₱ 65, 120
₱ 170, 850
Credits
Notes Payable ₱ 6, 000

Owner’s Capital ₱ 5, 000
Sales Revenue ₱ 94, 730
Inventory ₱ 65, 120
₱ 170, 850
25
2. Explain the relationship between general and subsidiary ledgers.
3. Why do you think they use numbers to identify names in a computerized system?
Rubrics for Scoring
Criteria 5 4 3 2
and provide
justification of
justification of
some
supporting
ideas may be
misunderstood.
and
conjectures
26
Assessment
1. After journalizing business transactions in the general journal, it is transferred

to ____________________
a. General Journal
b. General Ledger
c. Special Journal
2. Which of the following BEST describes the reason why general ledger is called
book of final entry?
a. Transactions record in the journal is finally recorded to its proper
account.
b. Transactions record in the journal is transferred for final checking of
errors.
c. Transactions record in the journal has finally account number assigned.
d. Transactions record in the journal is transferred for final recording.
3. Which of the following statement BEST describes the difference between general
ledger and subsidiary ledger?
a. General ledger is used with only few transactions while subsidiary ledgers
are used when transaction involved in the entity is immense.
b. General ledger is used by all forms of business but subsidiary ledgers are
only used by merchandising and manufacturing business.
c. General ledger focuses on the general transactions while subsidiary ledger
focuses on payables and receivables.
d. Subsidiary ledgers are used when the number of general ledger used is
already numerous.
4. What are the five columnar headings include in general ledger?

a. Date, Particulars, Debit, Credit, Folio
b. Date, Particulars, Debit, Credit, Balance
c. Date, Particulars, Debit, Credit, Accounts Involved
d. Date, Particulars, Debit, Credit, Terms
5. What is written on the column titled “Folio”?

a. Page of a general journal from where account was originally recorded
b. Page of general ledger from where account is present
c. The accountant should always leave it blank
d. Account Number
27
6. What is the standard form for subsidiary ledgers?
a. It always involves the column date, particulars and accounts involved
b. It always depend on the business entity
c. There are actually no standard formats
d. The PAS states the standard form
7. Which of the following statement is true?

a. The ledger provides the balance in each of the accounts but does not keep
track of changes in these balances.
b. Companies may use various kinds of ledgers, but every company has a
general ledger.
c. Companies arrange the ledger in the sequence in which they present the
accounts in the financial statements, beginning with the income statement
accounts.
d. The ledger provides the balance in each of the accounts as of the end of the
accounting period.
8. What is the order of preparing general ledger?

a. asset – liability – owner’s drawings – owner’s capital – revenues – expenses
b. asset – liability – owner’s capital – owner’s drawings – expenses – revenues
c. asset – liability – owner’s drawings – owner’s capital – expenses – revenues
d. asset – liability – owner’s capital – owner’s drawings – revenues – expenses
9. Which of the following statement BEST describes the difference of accounts

receivable and accounts payable subsidiary ledgers?
a. The Accounts Receivable ledger records amounts of collection and to be
collected while the Accounts Payable ledger records amounts of payments
as well as amounts already paid.
b. The Accounts Receivable account shows amounts due from customers.
Accounts Payable shows amounts owed to creditors.
c. The Accounts Receivable ledger focuses on the suppliers while the Accounts
Payable ledger focuses on the customers.
d. The Accounts Receivable ledger records amounts of sales while Accounts
Payable ledger records amounts of purchases.
10. Which of the following BEST describes the difference between general ledger and
t-accounts?
a. The simple T-account form is often very useful for illustration purposes.
However, the general ledgers are much more structured.
b. T-account is for classroom purposes only while general ledger is for practice.
c. T-account is much simpler than general ledgers.
d. T-account is used for service concern while general ledger is used by large
companies.
28
11. Which of the following is a false statement?
a. The company should post all the debits and credits of one journal entry
before proceeding to the next journal entry.
b. Posting to ledger accumulates the effects of journalized transactions into
the individual accounts
c. The account number is written in the reference column of the ledger.
d. Posting should be performed in chronological order.
12. The amount of sales of merchandise on account is posted in ________________

c. Purchases Journal
d. Sales Journal
13. The amount of purchases of merchandise on account is posted in ___________

d. Sales Journal
14. Edward wanted to know how much the total collectibles is for the current period.
What kind of ledger should Edward look for?
d. Sales Journal
15. Nazi wanted to know how much the total disbursements for payables is for the
current period. What kind of ledger should Nazi look for?
c. Cash Disbursements Journal
d. Sales Journal
29
ACTIVITY 1: GEORGE’S PROBLEM IS YOUR PROBLEM
Directions: Observe the situation below and answer the questions that follow. Write
your answer on a separate sheet of paper.
George Company has a balance in its Accounts Receivable control

account of P10,000 on January 1, 2014. The subsidiary ledger contains
three accounts: Queen Company, balance P4,000; Micah Company,
balance P2,500; and Marie Company. During January, the following
receivable-related transactions occurred.
Credit Sales Collections Returns

Queen Company ₱9,000 ₱8,000 ₱ 0
Micah Company ₱7,000 ₱2,500 ₱3,000
Marie Company ₱8,500 ₱9,000 ₱ 0
Questions:
a. What is the January 1 balance in the Marie Company subsidiary account?
b. What is the January 31 balance in the control account?
c. Compute the balances in the subsidiary accounts at the end of the month.
30
31
What I Know
1. A 2. A 3. A 4. B 5. D 6. A 7. C 8. C 9. D 10. D 11. C 12. C 13. D 14. A 15. B
Activity 1
1. General Journal 2. Sales Journal 3. Purchases Journal
Activity 2
1. Folio 2. Debit Column 3. Particulars 4. Credit Column 5. Date Column
Activity 3
1. CD 6. CR 11. CD
2. G 7. CD 12. CD
3. CR 8. CD 13. S
4. G 9. CR 14. No Entry
5. P 10. CR 15. CD
Activity 4
1. CR 2. P 3. S 4. P 5. CD
Activity 5
BigayAyuda Company
Cash Receipts Journal
Cost of
Sales Accounts Service Other Goods
Cash
2020 Account Credited Ref Discounts Receivable Revenue Accounts Sold Dr.
Dr.
Dr. Cr. Cr. Cr. Inventory
Cr.
July 3 5,800 5,800 3,480
5 Jeltz Company 6,370 130 6500
9 Owner's Capital 5,000 5,000
10 12,519 12,519 7,511
12 R. Eliot & Co. 7,275 225 7500
Unearned Service
15 Revenue 700 700
20 15,472 15,472 9,283
22 Beck Company 5,880 120 6,000
29 17,660 17,660 10,596
31 Interest Revenue 200 200
76,876 475 20,000 51,451 5,900 30,870
b) The Accounts Receivable column total is posted as a credit to Accounts receivable. The individual amounts are credited
to the customers’ accounts identified in the Account Credited column, which are maintained in the accounts receivable
subsidiary ledger.
The amounts in the Other Accounts column are posted individually, they are credited to the account titles identified in the
Account Credited column.
Answer Key
32
What I Have Learned
A)1. Journal 2. General Journal 3. General Journal 4. Debit Column 5. Particulars 6. Date Column 7. Folio
8. Credit Column 9. Purchases Journal 10. Sales Journal 11. Cash Receipts Journal 12. Cash Disbursement Journal
B) 1. Cash Disbursements Journal 2) Cash Receipts Journal 3) Sales Journal
What I Can Do
Answers were discussed on What Is It.
Assessment
1. A 2. D 3. A 4. B 5. B 6. A 7. C 8. C 9. D 10. D 11. B 12. A 13. A 14. A 15. A
A)a. Nob. Yesc. Yesd. No
B)Sales Journal
Date Suppliers Charge Invoice Terms Accounts Sales
No. Receivable Cr.
e) Bannister & Absuelo P1,190 P1,190
Store
Purchases Journal
Date Customers Charge Invoice Terms Accounts Purchases
No. Payable Dr.
b) Lofranco Inc. P11,500 P11,500
j) Bales Enterprise P18,300 P18,300
Cash Receipts Journal
Date Customers C.R. Cash in Bank Accounts Sales (or Other
/Cash (or any various Receivable any Accounts SUNDRIES
Sales debit account) (or any various Cr.
Invoice Dr. various account) Accou Amount
credit Cr. nt
account) Titles Dr. Cr.
Cr.
a) Investment P550,000 P550,00
c) Uriarte Co. P3,450 P3,450
g) Bannister & P1,500 P1,500
Absuelo Store
Cash Disbursements Journal
Date Payee Explanation Check Check Cash in Other
No. Voucher Bank Accounts SUNDRIES
No. Cr. Dr.
Account Amount
Titles
Dr. Cr.
d) Uriarte Co. Paid freight P350 P350
f) Employees Paid salaries P15,900 P15,900
h) Lofranco Paid accounts P10,000 P10,000
Inc. due
What I Know
1. B 2. B 3. B 4. D 5. A 6. B 7. B 8. B 9. B 10. B
Lesson 6.2
Activity 1
Answers may vary (Answers are explained in What Is It).
Activity 2
1. General Ledger2. Accounts Receivable Subsidiary Ledger3. Accounts Payable Subsidiary Ledger
33
Activity 3
Accounts Payable Subsidiary Ledger
Montero Manufacturing Inc.
Date Ref. Debit Credit Balance
Feb 2 P1 18,000 18,000
9 P1 32,976 50,975
Sumicad Retail Co.
Assessment
1. B
Feb 5 P1 5,293 5,293
2. D 15 P1 2,895 8,188
3. A Oga Mega Supplies
4. A
Feb 13 P1 15,090 15,090
5. A
25 P1 10,150 25,240
6. A
7. B Accounts Receivable Subsidiary Ledgers
8. D Danduan Parlor Shop
9. A Date Ref. Debit Credit Balance
10. A May 1 S1 23,795 23,795
15 S1 10,288 34,083
11. C
Butalid Services
12. A Date Ref. Debit Credit Balance
13. B May 8 S1 6,923 6,923
14. A 20 S1 15,340 22,263
Tingabngab Agency
15. B
Activity 6
May 10 S1 30,500 30,500
(a) P3,500 18 S1 5,900 36,400
(b) P14,000
What I Have Learned
(c) Queen P5,000
A)1. d2. f3. a 4. c5. e 6. j7. I 8. k9. g10. b
Micah P4,000
B)1. T2. F3. F4. T
Marie P5,000
Activity 4
Subsidiary ledger balances:
Devon Co. P4,000 ($11,000 - $7,000)
Shelby Co. P5,000 ($7,000 - $2,000)
Taylor Co. P5,000 ($14,000 - $9,000)
General ledger Accounts Payable balance: P14,000 (P4,000
+ P5,000 + P5,000)
Activity 5Answers may vary.
References
Claudel, E., E. Dahao, R. Pacaldo, M. Poliran, and S. Poliran. 2018. Accounting

Essentials. Bukidnon: CMU Press.
Lopez, R. Jr. 2016. Fundamentals of Accountancy 1st Edition. Davao: MS Lopez
Printing and Publishing.
Weygandt, J., P. Kimmel, and D. Kieso. 2013. Accounting Principles. John & Wiley
Sons Inc.
34
DISCLAIMER
This Self-Instructional Learning Material (SILM) was developed by the Schools
Division of Cotabato. It aims to provide learners with materials that could be
used in the new normal and is based on the modality preferred by most
parents and learners. It is hoped that through this, the education of the
children in the Province of Cotabato shall continue. This shall likewise be
used by the learners of all public schools in the schools division beginning SY
2020-2021. Furthermore, the process of LR development was observed in the
production of this module. This is version 1.0. We highly encourage feedback,
comments, and recommendation.
For inquiries or feedback, please write or call:
Department of Education – Schools Division of Cotabato

Learning Resource Management System (LRMS)
DepEd-Cotabato Division, Capitol Compound, Amas, Kidapawan City
Telefax No.: (064) 577-7017
Email Address: lrcotabato@gmail.com

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Senior High School

Writer: Merven R. Tirado

Printed in the Philippines by Department of Education –Schools Division of Cotabato

Office Address: DepEd-Cotabato Division, Capitol Compound, Amas, Kidapawan City

Welcome to the Fundamentals of Accountancy, Business and Management - Grade

Notes to the Teacher

Please advise our learners to read, understand, analyze, and

Welcome to the Fundamentals of Accountancy, Business and Management - Grade

This module has the following parts and corresponding icons:

What I Know This part includes an activity that aims to

What’s In This is a brief drill or review to help you link

What’s New In this portion, the new lesson will be

What is It This section provides a brief discussion of the

What’s More This comprises activities for independent

What I Have Learned This includes questions or blank

What I Can Do This section provides an activity which will

Additional Activities In this portion, another activity will be given

Answer Key This contains answers to all activities in the

At the end of this module you will also find:

References This is a list of all sources used in developing

The following are some reminders in using this module:

Most Essential Learning Competencies:

1. Illustrate the format of a general and special journals

This module is divided into two lesson:

After going through this module, you are expected to:

1. define Journal and Ledger;

1. It is one of the books of accounts that are used in business where

2. This is also called Book of Original Entry.

2. A__________ has spaces for dates, account titles and explanations,

3. Only transactions involving sale of merchandise on account or on credit

5. Only transactions involving cash payments are recorded in this book.

6. Only transactions involving purchase of merchandise on account or on

7. Only transactions involving receipts of cash are recorded in this book.

8. Shows the number of an account in a ledger or page of a ledger to

10. Payment of utilities expense is recorded in _______________.

11. Collect proceeds from rendering services is recorded in ____________.

12. Investments of cash is recorded in ________________.

13. Withdrawal of money is recorded in ______________.

14. Purchased land on account is recorded on what books of accounts?

1 General and Special Journals

Rubrics for Scoring

Directions: Determine the illustrations below. Choose your answer from

General Journal Sales Journal

Purchases Journal Cash Disbursement Journal

Date Column Particulars Folio

1. _______________shows the number of an account in a ledger or page of a

Companies initially record transactions in chronological order (the order in

Date Particulars F Debit Credit

Sales Journal – only transactions involving sale of merchandise on account or on

Date Suppliers Charge Terms Accounts Sales

Purchases Journal - only transactions involving purchase of merchandise on

Date Customers Charge Terms Accounts Purchases

Date Customers C.R./Cash Cash in Accounts Sales (or

Note: Columns may be added by additional applicable account titles

Date Payee Explanation Check Check Cash in

Note: Columns may be added by additional applicable account titles

Directions: Determine the following transaction to the journal that should be

1. Purchase of Transportation Equipment for Cash

1. Collected cash on account from Akihiro Company.

3. Sold merchandise on account.

4. Purchased merchandise on account.

July 3 Cash sales total P5,800 (cost, P3,480)

What I Have Learned