KEEP YOUR

BALANCE
LESSON OBJECTIVES
01 Identify the use of the
ledger

Post the journal entries in

02 the ledger

Prepare a trial balance

03
RECAP
Chart of Accounts is a list of all
account titles used by the
company with the corresponding
account numbers
BALANCE SHEET ACCOUNTS
ASSETS LIABILITIES
110 Cash 210 Accounts Payable
120 Accounts Receivable 220 Notes Payable
130 Supplies 230 Salaries Payable
140 Prepaid Rent 240 Utilities Payable
150 Prepaid Insurance 250 Interest Payable
160 Office Equipment 260 Unearned Painting
Revenue
170 Accumulated Depreciation:
Office Equipment OWNER’S EQUITY
180 Furniture and Fixtures 310 Ang, Capital
190 Accumulated Depreciation: 320 Ang, Withdrawal
Furniture and Fixtures 330 Income Summary
INCOME STATEMENT ACCOUNTS
INCOME EXPENSES
410 Service Revenue 510 Salaries Expense
520 Supplies Expense
530 Rent Expense
540 Insurance Expense
550 Utilities Expense
560 Depreciation Expense:
Office Equipment
570 Depreciation Expense:
Furniture and Fixtures
 POSTING
Is the process of transferring information
from the journal to the ledger
ACCOUNT: CASH ACCOUNT NUMBER: 110
DATE
2020
GENERAL LEDGER
EXPLANATION J.R. DEBIT CREDIT BALANCE

MAY
2 Initial Investment J-1 P300,000 P -- P300,000
3 Loan from Allay Bank J-1 100,000 400,000
5 Purchased equipment J-1 180,000 220,000
5 Purchased furniture J-1 12,000 208,000
6 Advance payment of rental J-1 18,000 190,000
7 Payment of insurance premiums J-1 10,800 179,200
12 Partial payment J-1 3,000 176,200
15 Partial collection of A/R J-1 50,000 226,200
18 Cash withdrawal J-1 18,000 208,200
20 Collection of Unearned Income J-1 80,000 288,200
23 Collection from Income earned J-1 90,000 378,200
25 Payment of salaries J-1 4,000 374,200
29 Payment of water J-1 540 373,660
ACCOUNT: ACCOUNTS RECEIVABLE ACCOUNT NUMBER: 120
DATE
2020
GENERAL LEDGER
EXPLANATION J.R. DEBIT CREDIT BALANCE

MAY
11 Billed Mr. Ku To J-1 P120,000 P -- P120,000
Received partial payment from Mr. Ku J-1 50,000 70,000
15
To
A T-account is the simplest form of
an account
 ELEMENTS OF AN ACCOUNT
1. Account Title
2. Debit
3. Credit
NORMAL BALANCE OF AN ACCOUNT

DEBIT CREDIT

❑ Asset ❑ Liability
❑ Owner’s Drawing ❑ Owner’s Capital
❑ Expense ❑ Income
ACCOUNT: CASH ACCOUNT NUMBER: 110
DATE
2020
GENERAL LEDGER
EXPLANATION J.R. DEBIT CREDIT BALANCE

MAY
2 Initial Investment J-1 P300,000 P -- P300,000
3 Loan from Allay Bank 100,000 400,000
5 Purchased an equipment 180,000 220,000
5 Purchased a furniture 12,000 208,000
6 Advance payment of rental 18,000 190,000
7 Payment of insurance premiums 10,800 179,200
12 Partial payment of A/P 3,000 176,200
15 Partial collection of A/R 50,000 226,200
18 Cash withdrawal 18,000 208,200
20 Collection of Unearned Income 80,000 288,200
23 Collection from Income earned 90,000 378,200
25 Payment of salaries 4,000 374,200
29 Payment of water 540 373,660
 CASH
DEBIT CREDIT
May 2 P300,000 May 5 P180,000
3 100,000 5 12,000
15 50,000 6 18,000
20 80,000 7 10,800
23 90,000 12 3,000
18 18,000
25 4,000
29 540
P620,000 P246,340
P373,660
BASIC!