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Understanding General Ledger and Journal

The document explains the general journal and general ledger in accounting, highlighting their roles in recording financial transactions. The journal serves as a chronological record of all transactions, while the ledger organizes this information by account and maintains running balances. It also provides examples of transactions made by Jackson Wang and an activity involving Shiela's business transactions.

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Ahlyzza Aniñon
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29 views8 pages

Understanding General Ledger and Journal

The document explains the general journal and general ledger in accounting, highlighting their roles in recording financial transactions. The journal serves as a chronological record of all transactions, while the ledger organizes this information by account and maintains running balances. It also provides examples of transactions made by Jackson Wang and an activity involving Shiela's business transactions.

Uploaded by

Ahlyzza Aniñon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

GENRAL

LEDGER

FABM 2
GENERAL JOURNAL
A journal is a diary of business activities.

It serves as a chronological record of all financial


transactions that a business or organization makes.

The general journal provides a detailed record of


transactions that are later posted to the general ledger

Each transaction is recorded with at least two entries:


a debit and a credit.
EXAMPLE:
TRANSACTION:
On November 7, Jackson Wang purchased equipments for cash P5,000.

Purchased equipment for


cash
EXAMPLE:
TRANSACTION:
On November 10, Jackson Wang purchased equipments from JYP Co. on
credit.

Purchased equipment on
credit
GENERAL LEDGER

The ledger is the second accounting record book that is a list


of a company’s individual accounts list in order of account
category.

While the journal lists all types of transactions chronologically,


the ledgers separate this same information out by account and
keep a running balance of each of these accounts.
On November 7, Jackson Wang purchased equipments
for cash P5,000.

On November 10, Jackson Wang purchased equipments


from JYP Co. on credit.

Purchased equipment for


cash

Purchased equipment on
credit
ACTIVITY!
On January 1, 2020, Shiela started her business with Cash P65,000,
Furniture P20,000, and Building P100,000.
On January 1, 2020, bought goods from EMD Corp. on credit for
P15,000.
On January 2, 2020, purchased goods for cash P30,000
On January 3, 2020, goods sold to customer and received cash
P22,000.
On January 5, 2020, sold goods to Shahid P14,000.
On January 8, 2020, bought typwriter for cash P8,000.
On January 10, 2020, purchased office iron safe on cash P4,000.
Thank you

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