Fundamentals of Accountancy

Learning Area Grade Level 11

W5 Quarter
Business and Management 1
FOURTH Date

I. LESSON TITLE Posting to the Ledger and Preparing Trial Balance

II. MOST ESSENTIAL LEARNING Post transactions in the general and subsidiary ledgers(ABM_FABM11-IVe-j -37)
COMPETENCIES (MELCs) Prepare a trial balance(ABM_FABM11-IVe-j -38)
III. CONTENT/CORE CONTENT Accounting Cycle of a Merchandising Business
IV. LEARNING PHASES AND ACTIVITIES
I. Introduction (Time Frame: 10 minutes)
Good day learners! Welcome to another fun and exciting day of learning. After the recording phase which is
journalizing, the classifying phase is next. This is done through posting to the ledger. Posting is the process of transferring
information from journal to ledger.
By the end of our topic, you should be able to:
1. post transactions in the general and subsidiary ledgers,
2. prepare trial balance, and
3. value the need for balance and accuracy in journalizing and posting every transaction.
D. Development (Time Frame: 90 minutes)
. Let us begin with your Pre-Test. Read each question carefully and write your answer in your accounting journal.
1. What type of companies do subsidiary ledgers apply to?
A. small based operating company B. medium based operating company
C. large based operating company D. all types of company
2. Which of the following is NOT one of the advantages of subsidiary ledgers?
A. Separate general accounts lead to systematic and proper reporting of transactions.
B. As the transactions of specific nature are reported at one place, the posting becomes convenient.
C. Balances of similar heads help in decision-making and estimating future actions.
D. Special journals promote division of labor
3. When does posting from the purchases journal to the subsidiary ledger is usually made?
A. Yearly B. Monthly C. Weekly D. Daily
4. Which of the following is correct about general journals?
A. Correcting, adjusting, and closing entries are made in the general journal.
B. Only transactions that cannot be entered in a special journal are recorded in the general journal.
C. The general journal may be used to record acceptance of a note receivable in payment of an account
receivable.
D. All of the choices are correct
5. Which of the following is incorrect about subsidiary ledger?
A. The accounts receivable ledger is a subsidiary ledger.
B. The purchases ledger is a common subsidiary ledger for creditor accounts.
C. A subsidiary ledger is a group of accounts with a common characteristic..
D. An advantage of the subsidiary ledger is that it permits a division of labor in posting

Posting to the Ledger

The purpose of an accounting ledger is to record the effect of different journal entries. Thus, they provide a broad
overview of the assets, liabilities, shareholders’ equity, revenues, and expenses of the company.
General ledger is a set of all accounts where journal entries are posted. This serves as the main database of
accounting transactions that provides input for the preparation of a Trial Balance and a complete set of financial
statements.
Subsidiary ledger is a group of accounts with a common characteristic that contains all the entries supporting a
general ledger. It is created by subdividing the ledger into an accounting function. Simply speaking, they are ledgers for
each credit customer (Accounts Receivable Subsidiary Ledger) and for each company in which the firm made a credit
purchase (Accounts Payable Subsidiary Ledger).

Advantages of the Subsidiary Ledger:

1. Separate general accounts lead to systematic and proper reporting of transactions.
2. As the transactions of specific nature are reported at one place, the posting becomes convenient.
3. Balances of similar heads help in decision-making and estimating future actions.
4. It saves time and also enables manpower reduction for posting.

In this lesson, the recorded transactions in your Learning Task 1 general and special journal entries in LeaP Week
4 will be used to illustrate posting to the ledgers. However, it is important to note the following posting procedures.
1. Posting to the general ledger is normally done every month.
 2. Posting to a subsidiary ledger is normally done immediately after recording a control account in the journal,
whether from the general or special journal. This is to ensure those subsidiary ledgers are updated after every
transaction involving customers or suppliers.

CASH DISBURSEMENT JOURNAL CD1

Date Check Paid to Ref. Accounts Payable Purchases Rent Expense Purchase Discount Cash
Voucher No. Dr (Cr) Dr Dr Cr Cr
June 11 005 A 10,000 10,000
The above June 11 entry in the CDJ (LeaP Week 4 Task 1) shows a debit to Purchases and a credit to Cash. This is not posted immediately
in the general ledger accounts of Purchases and Cash. Instead, only the total amount at month-end will be posted.

Preparing the Trial Balance

After the recording and classifying phases, we now proceed to the summarizing phase. A trial balance is a
bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns. A company
prepares a trial balance periodically, usually at the end of every reporting period. The general purpose of producing a
trial balance is to ensure the entries in a company's bookkeeping system are mathematically correct.
Common errors which may be detected with the preparation of trial balance are as follows:
1. Incorrect placement of digits (transposition error)
2. Incorrect placement of decimal points (transplacement or slide error)
3. Incorrectly copying the amounts from journal to ledger and the balances from ledger to trial balance
4. Placing the amount in the incorrect column of the trial balance
5. Omitting an account in the trial balance
A trial balance lists all accounts with their respective debit or credit balances. It is used to verify the equality of
debits and credits in a ledger at the end of each accounting period or at any time the postings are updated. This helps
minimize accounting errors. When totals are equal, the trial balance is in balance. This equality provides an interim proof
of the accuracy of the records but does not signify the absence of errors.
The procedures in the preparation of a trial balance are as follows:
1. List the account titles in numerical order.
2. Obtain the account balance of each account from the ledger and enter the debit balances in the debit column
and the credit balances in the credit column.
3. Add the debit and credit columns.
4. Compare the totals.

Let us look at the flow of a Cash account, following the first three steps of the accounting cycle (Journalizing, Posting, and
preparing Trial Balance).
As of June 30, the Cash account has a P227,200 debit balance. The debit balance is then presented in the “Dr” column
of the Trial Balance. The same procedure is applied to the rest of the accounts. Remember to arrange the accounts in the
Trial Balance according to the financial statement order.
E. Engagement (Time Frame: 120 minutes)
Philippians 4:8, KJV: "Finally, brethren, whatsoever things are true, whatsoever things are honest, whatsoever things are
just, whatsoever things are pure, whatsoever things are lovely, whatsoever things are of good report; if there be any
virtue, and if there be any praise, think on these things."

Learning Task 1 –General and Subsidiary Ledger Entries

Directions: Using your journal entries in L Company’s June 2018 transaction, prepare necessary general and subsidiary
ledger. Write your answer in your personal general ledger.

Learning Task 2 – Trial Balance

Directions: After preparing L Company’s general and subsidiary ledger prepare a Trial Balance for June 2018.
A. Assimilation (Time Frame: 30 minutes)

Learning Task 3– Word cloud

Directions: Create a word cloud of Ledger. You may use an online app/program for this or manually create using arts
materials. Do it in a bond paper and paste it into your accounting journal. Make it as creative, colorful, and with at least
10 words that are relevant to our lesson.
Word Cloud Activity Rubric

CATEGORY GUIDELINES SCORE

Organization The size of fonts and shape of word cloud coordinate with the (5)
theme.

Creativity The word cloud is visually appealing and displays creativity. (5)

Neatness The word cloud is neat and organized. (5)

Word Choice Spelling is correct and the words are relevant to the lesson. (5)

Total (20)

.
V. ASSESSMENT (Time Frame: 30 minutes )
(Learning Activity Sheets for Enrichment, Remediation, or Assessment to be given on Weeks 3 and 6)
Directions: To test your understanding of the topic, answer the questions below. Write your answer in your accounting
journal.
1. How are accounts posted in a trial balance?
2. From what source document is Trial Balance being prepared?
3. What is a statement that contains balances of all ledger accounts on a particular date?

VI. REFLECTION (Time Frame: 10 minutes)

● Communicate your personal assessment as indicated in the Learner’s Assessment Card.

Personal Assessment on Learner’s Level of Performance
Using the symbols below, choose one which best describes your experience in working on each given task. Draw it in the
column for Level of Performance (LP). Be guided by the descriptions below:
✰ - I was able to do/perform the task without any difficulty. The task helped me in understanding the target content/ lesson.
✔ - I was able to do/perform the task. It was quite challenging, but it still helped me in understanding the target content/lesson.
? – I was not able to do/perform the task. It was extremely difficult. I need additional enrichment activities to be able to do/perform
this task.
Learning Task LP Learning Task LP Learning Task LP Learning Task LP
Number 1 Number 3 Number 5 Number 7
Number 2 Number 4 Number 6 Number 8

VII. REFERENCES Joy S. Rabo, Herminigilda E. Salendrez,& Florenz C. Tugas. Fundamentals of Accountancy,
Business and Management 1. Quezon City. Vibal Group, Inc. 2016.
Teaching Guide for Senior High School Fundamentals of Accountancy Business and
Management 1. Commission on Higher Education. 2016.
QuexhubPERC Learning Portal

Josephine P. Canlas/ Adora G. del Mundo/

Prepared by: Jennifer B. Fernandez Checked by:
Cherie L. Logatoc/ Feliz A. Tayao