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PPT-Posting To The Ledger, Preparing Trial Balance & AJE

This document provides instructions on journalizing and posting transactions to the general ledger accounts and preparing a trial balance. It discusses the key steps in the accounting cycle such as journalizing business transactions from source documents, posting journal entries to individual ledger accounts arranged by the ALORE method, and preparing an unadjusted trial balance to check the equality between total debits and credits. The objectives are to learn how to post transactions in the ledger and prepare a trial balance. Examples of

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424 views22 pages

PPT-Posting To The Ledger, Preparing Trial Balance & AJE

This document provides instructions on journalizing and posting transactions to the general ledger accounts and preparing a trial balance. It discusses the key steps in the accounting cycle such as journalizing business transactions from source documents, posting journal entries to individual ledger accounts arranged by the ALORE method, and preparing an unadjusted trial balance to check the equality between total debits and credits. The objectives are to learn how to post transactions in the ledger and prepare a trial balance. Examples of

Uploaded by

ela cags
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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A.L.O.R.E.

Graded
Oral Recitation
(5 students)
Analyzing business
transactions from
source documents
Journalizing and Posting Journalizing business
Reversing Journal Entries transactions

Preparing Post
Closing Trial Balance
THE Posting to the Ledger
ACCOUN
Journalizing and Posting Preparing Trial
Closing Journal Entries TING Balance

Preparing Financial
CYCLE Journalizing and Posting
Statements Adjusting Journal Entries

Preparing Adjusted
Trial Balance
OBJECTIVES

1. Post transactions in the ledger

2. Prepare a trial balance


Accounting Cycle
Step 3

Posting to the Ledger.


GENERAL LEDGER

• contains all the accounts (assets,


liabilities, owner's equity, revenues and
expenses) maintained by the business

• also called the “book of final entry”


POSTING TO LEDGER

• The posting process involves transferring the values


of the account titles from the journal to the ledger
using a .

Account title
Debit Credit
information information

• The purpose is to determine the balance of an


account at the end of the accounting period.
POSTING TO LEDGER

• Each account title has its own ledger.

• The ledger captures all movements in


each account which were initially
reflected in the journal as journal entries.
DIFFERENCES BETWEEN…

Journalizing vs. Posting


Journalizing Posting
• Journal entries are arrange • Account titles are arrange
chronologically according to ALORE
• Emphasis is given to the • Emphasis is given to the
journal entry as a whole ending balance of an account

• The journal is the “book of • The ledger is the “book of


original entry” final entry”
Name of Company
Chart of Accounts
Assets Owner's Equity

101 Cash 301 Mr. X, Capital


102 Accounts Receivable 302 Mr. X, Drawing
103 Allowance for Doubtful Accounts 303 Income Summary
104 Notes Receivable
105 Interest Receivable Revenues
106 Unused Supplies 401 Service Revenue
107 Prepaid Rent 402 Interest Income
108 Equipment 403 Professional Fees
109 Accumulated Depreciation-Equipment
110 Furniture & Fixtures Expenses
111 Accumulated Depreciation- Furniture & Fixtures 501 Utilities Expense
112 Intangible Assets 502 Salaries Expense
Liabiliies 503 Supplies Expense
201 Accounts Payable 504 Rent Expense
202 Notes Payable 505 Taxes and Licenses Expense
203 Interest Payable 506 Repairs and Maintenance Expense
204 Short-term Bank Loan Payable Payable 507 Insurance Expense
205 Unearned Revenues 508 Doubtful Accounts Expense
206 Mortgage Payable 509 Depreciation Expense
207 Bonds Payable 510 Interest Expense
General Ledger
Account Title: CASH 0 Account Number: 101
Ref Explanation Ref. Credit
Date Explanation . Debit Date
2020 2020

May 15 Initial investment 1 ₱800,000 May 18 Paid rent 1 ₱18,000


Purchased
25 transportation 1 500,000
equipment
Partial payment for
27 office equipment 1 25,000

31 Withdrew cash 1 10,000

Total Debit ₱800,000 Total Credit ₱553,000

Balance ₱247,000
31
Accounting Cycle
Step 4

Preparing the
Trial Balance.
The trial balance is a list of
all the accounts in the ledger
along with their respective
ending balances.
It shows the EQUALITY OF
THE DEBITS AND THE
CREDITS.
The Recording Process
TRIAL BALANCE

Identifying and Cash


Accounts Receivable
XX
XX
Analyzing Events Furniture
Equipment
XX
XX
Accounts Payable XX
Notes Payable XX
Owner, Capital XX
Owner, Drawing
Journalizing Service Income
XX
XX
Salaries Expense XX
Utilities Expense XX
Rent Expense XX
TOTALS XX XX

Posting to Ledger

The trial balance summarizes everything that


has been done in the journalizing and the
posting processes.
STEPS IN PREPARING THE TRIAL BALANCE

1. Indicate in the heading (centered) the details


of the trial balance namely;
- Name of the business
- The term “Trial Balance”
- Date of preparation
2. List the open accounts and their balances.
3. Total the debit and the credit columns.
4. Double-rule the total of the debit and credit
columns.
PREPARING THE TRIAL BALANCE

The twist in the trial balance is


arranging the account titles in a
specific order:

ALORE
Assets – Liabilities – Owner’s Equity – Revenues - Expenses
PREPARING THE TRIAL BALANCE

Yet arranging it according to ALORE also has a


specific arrangement of its own.

A • Arranged according to liquidity, how fast an asset can be


converted to cash; CURRENT ASSETS then NONCURRENT ASSETS

L • Arranged according to maturity, how soon a debt can be paid;


CURRENT LIABILITIES then NONCURRENT LIABILITIES

O • Owner, Capital then Owner, Drawing

R • Service Revenue / Professional Fees then other forms of income

E • Can be arranged in any order (ideally from highest to lowest


value); Miscellaneous Expense, if it exists, is always last
Too Lysan Security Service
Trial Balance
May 31, 2020

Cash ₱247,000
Office Equipment 50,000
Transportation Equipment 500,000
Accounts Payable ₱25,000
San, Capital 800,000
San, Drawing 10,000
Rent Expense 18,000
Totals ₱825,000 ₱825,000
Illustrative Example
(Mr. Bruno
Dental Clinic)
ASSIGNMENT
1. Based on your assignment in
Journalizing (Chika Washing), post the
transactions to the ledger and prepare
the Trial Balance. (submit your output
in excel file format- Journalizing,
Posting to the ledger, Trial Balance)
2. Read pages 26-39 of Module 2
Reminder:
Pls. submit your XU email
address to your Class
President.
Make- Up Class
Lesson:
Journalizing & Posting
Journal Entries
 October 28, Wednesday
10:00 AM

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