Fundamentals of

Accountancy, Business
and Management 1
Quarter 3 – Module 8:
Posting of Transactions
in the Ledger
Introductory Message
This Self-Learning Module (SLM) is prepared so that you, our dear learners,
can continue your studies and learn while at home. Activities, questions, directions,
exercises, and discussions are carefully stated for you to understand each lesson.

Each SLM is composed of different parts. Each part shall guide you step-by-
step as you discover and understand the lesson prepared for you.

Pre-tests are provided to measure your prior knowledge on lessons in each

SLM. This will tell you if you need to proceed on completing this module or if you
need to ask your facilitator or your teacher’s assistance for better understanding of
the lesson. At the end of each module, you need to answer the post-test to self-check
your learning. Answer keys are provided for each activity and test. We trust that you
will be honest in using these.

In addition to the material in the main text, Notes to the Teacher are also
provided to our facilitators and parents for strategies and reminders on how they can
best help you on your home-based learning.

Please use this module with care. Do not put unnecessary marks on any part
of this SLM. Use a separate sheet of paper in answering the exercises and tests. And
read the instructions carefully before performing each task.

If you have any questions in using this SLM or any difficulty in answering the
tasks in this module, do not hesitate to consult your teacher or facilitator.

Thank you.

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 What I Need to Know

This module was designed and written with you in mind. It is here to help you
master how to identify the nature of business and nonbusiness transactions and to
apply the rules of debit and credit in posting transactions in the ledger
(ABM_FABM11-IV-a-d-31).

At the end of this module, you are expected to:

a. identify the parts of the ledger;

b. transfer debit and credit amounts to the ledger account; and
c. compute for the balance of each account after posting entries to
the ledger.

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 What I Know

Directions: Choose the letter of the correct answer. Write your answers on a separate
sheet of paper.

1. It contains all the accounts (assets, liabilities, owner’s equity, revenues, and
expenses) maintained by the business.

A. journal C. ledger
B. worksheet D. receipt

2. It pertains to the initial recording of transactions that occurred. This includes

the date, the account debited or credited, and its short description written
chronologically.

A. posting C. journalizing
B. adjusting D. analyzing

3. It refers to the procedure of transferring information from the journal to the

ledger.

A. posting C. journalizing
B. transaction analysis D. adjusting

4. It is called the book of final entry.

A. ledger C. worksheet
B. journal D. receipt

5. This is what the line items of the ledger are called.

A. ledger entries C. adjusting entries

B. journal entries D. original entries

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 Lesson
Posting of Transactions
1 in the Ledger

After journalizing, the next step in the acccounting cycle is posting. If

journalizing is done in the journal, posting is done in the ledger.

What’s In

Directions: Record the following transactions in the general journal. Write your
answers on a separate sheet of paper.

July 1, 2019 Bonifacio deposited P280,000 in a bank account in his business.

GENERAL JOURNAL Page

Date Account Titles and Explanation P.R. Debit Credit

July 4, 2019 He received P12,000 for services rendered.

GENERAL JOURNAL Page

Date Account Titles and Explanation P.R. Debit Credit

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July 11, 2019 He paid P15,000 for salaries of part-time receptionist.
GENERAL JOURNAL Page

Date Account Titles and Explanation P.R. Debit Credit

July 18, 2019 He bought office equipment from Pilar Equipment Store for
P4,950, paying P1,000 in cash and the balance on account.
GENERAL JOURNAL Page

Date Account Titles and Explanation P.R. Debit Credit

July 28, 2019 Bonifacio withdrew P12,000 from the business account for
personal use.
GENERAL JOURNAL Page

Date Account Titles and Explanation P.R. Debit Credit

Notes to the Teacher/Facilitator

This module helps students learn how to post transactions

in the ledger. They will be able to familiarize themselves with the
different parts of the ledger and they will be able to determine the
account balances.

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 What’s New

After recording transactions in the journal, the next step is to transfer them
to the general ledger. You must post every transaction from your journal into the
ledger.
The ledger is the book of final entry. It is used to organize and classify
transactions on which the journal entries will be transferred into their specific
account. The line items are called ledger entries.
From the journal, the debit and credit amounts will be transferred to the ledger
account. Next is to compute the balance of each account after posting entries to the
ledger. Read the following:
• Calculate the running balance of each transaction in the ledger account by
adding if the amounts are in the same column and subtracting if the amounts
are in different columns.

• After all the transactions have been posted, the last running balance will be
the ending balance.

What Is It

This is how you are going to post transactions from the general journal to the
ledger.

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 Each title in the chart of accounts has its own ledger. The ledger shows all the
movements of transactions (increase and decrease) in each account which were
initially reflected in the journal as journal entries.

Here are the simple steps in posting journal entries to the ledger:

1. Choose the proper column from which you will enter the information. If the
journal entry for the particular account is debited, then you have to fill in the
debit side of the ledger.

2. Fill in these necessary data:

• Date of the journal entry
• Explanation (explanation written on the journal entry)
• J.R. or Journal Reference (the page number of the journal from which the
journal entry was entered)
• Amount (amount of the transaction)

3. After you posted all the journal entries, the account balance will be determined
by transferring the amount to the balance column. If the amount of the
succeeding transactions is in the same column, you have to add it to the
balance. If the amount of the succeeding transaction is in the other column,
you must subtract the amount to the balance.

Account Title: Cash Account No. 101

Date Account Titles and J.R. Debit Credit Balance
Explanations
2019
Jul.1 Invested cash J-1 P 30,000 P 30,000
1 Obtained loan from RDS Bank J-1 50,000 80,000
2 Purchased supplies J-1 P 10,000 70,000
3 Paid business permits J-1 2,000 68,000
10 Paid salary J-1 1,000 67,000
16 Collected fees J-2 8,000 75,000
17 Paidsalary J-2 1,000 74,000
24 Paid salary J-3 1,000 73,000
27 Withdrew cash J-3 500 72,500
28 Collected accounts J-3 2,000 74,500
29 Paid rent J-3 10,000 64,500
31 Paid salary J-3 1,000 P 63,500

For a deeper knowledge regarding the posting of transactions in the ledger, we

will take Pamilya Services as an example.

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The illustration below shows the journal entries.

Page 1 of the General Journal

GENERAL JOURNAL Page 1

Date Account Titles and Explanation P.R. Debit Credit

2019
Jul-01 Cash 101 P 30,000
Service Equipment 104 30,000
Pamilya, Capital 301 P 60,000
Initial Investment

Jul-01 Cash 101 50,000

Loans Payable 202 50,000
To record loan from BDO

Jul-02 Supplies 103 10,000

Cash 101 10,000
To record purchase of supplies

Jul-03 Taxes and Licenses Expense 501 2,000

Cash 101 2,000

To record payment for taxes and licenses

Jul-10 Salaries Expense 502 1,000

Cash 101 1,000
To record payment of salary

Page 2 of the General Journal

GENERAL JOURNAL Page 2

Date Account Titles and Explanation P.R. Debit Credit

2019
Jul-16 Cash 101 P 8,000
Service Revenue 401 P 8,000
To record cash received for services
rendered

Jul-17 Salaries Expense 502 1,000

Cash 101 1,000
To record payment of salary

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Page 3 of the General Journal

GENERAL JOURNAL Page 3

Date Account Titles and Explanation P.R. Debit Credit

2019
Jul-21 Accounts Receivable 102 P 2,000
Service Revenue 401 P 2,000
To record customers billed for services
rendered

Jul-24 Salaries Expense 502 1,000

Cash 101 1,000
To record payment of salary

Jul-27 Pamilya, Drawings 302 500

Cash 101 500
To record owner's withdrawal

Jul-28 Cash 101 2,000

Accounts Receivable 102 2,000
To record collection of customer's account

Jul-29 Rent Expense 504 10,000

Cash 101 10,000
To record payment of rent

Jul-30 Utilities Expense 503 2,500

Accounts Payable 201 2,500
To record receipt of electricity bill

Jul-31 Salaries Expense 502 1,000

Cash 101 1,000
To record payment of salary

This is how the ledger will look like.

Account Name: Cash Account No. 101

Date Account Titles and J.R. Debit Credit Balance

Explanations
2019
Jul.1 Invested cash J-1 P 30,000 P 30,000
1 Obtained loan from RDS J-1 50,000 80,000
2 Purchased supplies J-1 P 10,000 70,000
3 Paid business permits J-1 2,000 68,000
10 Paid salary J-1 1,000 67,000
16 Collected fees J-2 8,000 75,000
17 Paid salary J-2 1,000 74,000
24 Paid salary J-3 1,000 73,000
27 Withdrew cash J-3 500 72,500
28 Collected accounts J-3 2,000 74,500
29 Paid rent J-3 10,000 64,500
31 Paid salary J-3 1,000 P 63,500

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Account Name: Accounts Receivable Account No. 102

Date Account Titles and J.R. Debit Credit Balance

Explanations
2019
Jul.21 Rendered services J-3 P 2,000 P2,000
28 Collected accounts J-3 P 2,000 0

Account Name: Supplies Account No. 103

Date Account Titles and J.R. Debit Credit Balance

Explanations
2019
Jul.2 Purchased supplies J-1 P 10,000 P 10,000

Account Name: Service Equipment Account No. 104

Date Account Titles and J.R. Debit Credit Balance

Explanations
2019
Jul.1 Invested equipment J-1 P 30,000 P 30,000

Account Name: Accounts Payable Account No. 201

Date Account Titles and J.R. Debit Credit Balance

Explanations
2019
Jul.30 Received electric bill J-3 P 2,500 P 2,500

Account Name: Loans Payable Account No. 202

Date Account Titles and J.R. Debit Credit Balance

Explanations
2019
Jul.1 Obtained loan from RDS J-1 P 50,000 P 50,000

Account Name: Pamilya, Capital Account No. 301

Date Account Titles and J.R. Debit Credit Balance

Explanations
2019
Jul.1 Invested cash J-1 P 60,000 P 60,000

Account Name: Pamilya, Drawings Account No. 302

Date Account Titles and J.R. Debit Credit Balance

Explanations
2019
Jul.27 Withdrew cash J-3 P 500 P 500

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Account Name: Service Revenue Account No. 401

Date Account Titles and J.R. Debit Credit Balance

Explanations
2019
Jul.16 Rendered services J-2 P 8,000 P 8,000
21 Rendered services J-3 2,000 P 10,000

Account Name: Taxes and Licenses Account No. 501

Date Account Titles and J.R. Debit Credit Balance

Explanations
2019
Jul.3 Paid business permits J-1 P 2,000 P 2,000

Account Name: Salaries Expense Account No. 502

Date Account Titles and J.R. Debit Credit Balance

Explanations
2019
Jul.10 Paid salary J-1 P 1,000 P 1,000
17 Paid salary J-2 1,000 P 2,000
24 Paid salary J-3 1,000 3,000
31 Paid salary J-3 1,000 P 4,000

Account Name: Utilities Expense Account No. 503

Date Account Titles and J.R. Debit Credit Balance

Explanations
2019
Jul.30 Paid electricity bill J-3 P 2,500 P 2,500

Account Name: Rent Expense Account No. 504

Date Account Titles and J.R. Debit Credit Balance

Explanations
2019
Jul.29 Paid rent J-3 P 10,000 P 10,000

Make sure that you have posted all the transactions in the general journal.
This will ensure that you will have a balanced amount in the trial balance.

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 What’s More

Di
Directions: Compute for the account balance of the given ledger. Write your answers
on a separate sheet of paper.

Account Title: Cash Account No. 101

Date Account Titles and J.R. Debit Credit Balance
Explanations
2019
Aug.1 Invested cash J-1 P 70,000
2 Received cash from customers J-1 50,000
5 Purchased supplies J-1 P 1,500
9 Paid advertising J-1 2,000
11 Received refund J-1 500
16 Collected fees J-1 15,000
18 Paid water bill J-2 2,300
24 Bought equipment J-2 20,000
27 Withdrew cash J-2 5,000
28 Collected accounts J-2 15,000
30 Paid salary J-2 20,000

What I Have Learned

Directions: TRUE or FALSE: Write TRUE if the statement is correct and FALSE if it
is not. Write your answers on a separate sheet of paper.

1. The ledger is the book of final entry.

2. The ledger shows all the movements of transactions (increase and decrease)
in each account which were initially reflected in the journal as journal entries.
3. If the journal entry for a particular account is debited, then you have to fill in
the credit side of the ledger.
4. The line items in the ledger are called ledger entries.
5. The last running balance, after all the transactions have been posted, will be
the ending balance.

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 What I Can Do

Directions: Post each journal entry to its corresponding ledger. Write your answers
on a separate sheet of paper.

1. The owner invested cash amounting to P80,000 and his personal furniture
amounting to P70,000 in the business.
GENERAL JOURNAL Page 1

Date Account Titles and Explanation P.R. Debit Credit

2019
P
Dec-03 Cash 101 80,000
Furniture and Fixtures 105 70,000
Pedro, Capital 301 P 150,000
To record investments

Account Name: Account No.

Date Account Titles and J.R. Debit Credit Balance

Explanations

Account Name: Account No.

Date Account Titles and J.R. Debit Credit Balance

Explanations

Account Name: Account No.

Date Account Titles and J.R. Debit Credit Balance

Explanations

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 2. The business obtained a loan from A-Bank worth P90,000.
GENERAL JOURNAL Page 3

Date Account Titles and Explanation P.R. Debit Credit

2019
Feb-01 Cash 101 P 90,000
Notes Payable 204 P90,000
To record loan from A-Bank

Account Name: Account No.

Date Account Titles and J.R. Debit Credit Balance

Explanations

Account Name: Account No.

Date Account Titles and J.R. Debit Credit Balance

Explanations

3. The owner paid P1,500 for the salary of an employee.

GENERAL JOURNAL Page 8

Date Account Titles and Explanation P.R. Debit Credit

2019
Mar-
30 Salaries Expense 505 P 1,500
Cash 101 P 1,500
To record payment of salary
Account Name: Account No.
Date Account Titles and J.R. Debit Credit Balance
Explanations

Account Name: Account No.

Date Account Titles and J.R. Debit Credit Balance
Explanations

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 4. The owner billed his client P82,600 for services rendered.
GENERAL JOURNAL Page 3

Date Account Titles and Explanation P.R. Debit Credit

2019
Dec-
25 Accounts Receivable 102 P 82,600
Service Revenue 401 P 82,600
To record customers billed
for services rendered

Account Name: Account No.

Date Account Titles and J.R. Debit Credit Balance

Explanations

Account Name: Account No.

Date Account Titles and J.R. Debit Credit Balance

Explanations

5. The owner withdrew P700.

GENERAL JOURNAL Page 5

Particulars (Account Titles and

Date P.R. Debit Credit
Explanation)

2019
Jan-
08 Magallanes, Drawings 302 P 700
Cash 101 P 700
To record owner's withdrawal
Account Name: Account No.

Date Account Titles and J.R. Debit Credit Balance

Explanations

Account Name: Account No.

Date Account Titles and J.R. Debit Credit Balance

Explanations

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