Name: _____________________________ Grade & Section: _____________________ Score: __________

School: ____________________________ Teacher: ____________________Subject: FABM1 - 11 LAS

Writer: Leah D. Barrido Content Editor: Wilfredo A. Barluado, Principal II
Lesson Topic: General Ledger Language Evaluator: Jean Carlyn B. Maceda
Learning Target: Record Transaction in the General Ledger using T-Account. (ABM_FABM11-IVe-j-36).
Quarter 4 Week4 LAS3
Reference: Lopez, R. Jr., 2002, Millennial Edition. Fundamentals of Accountancy, Business and
Management, Davao City, Philippines. RM LOPEZ, JR., Publishing. pp. 276-277.

Content

Posting to General Ledger using T-Account

General Ledger can that also be a “loose-leaf” or book bound” form. This book will group accounts of
the same kind, also known as “group of accounts”.
(1)Date date of the transactions to record
General
Ledger
(2)Particulars shows short explanation of the transaction
(3)Folio shows page number from a Journal
(4)Money shows amount to debited and credited

(4)
The T-Account. General Ledger can also be prepared using the T-Account. (1) (3)
(2)
The account is divided into two sides. The left-hand side which is called debit side and the right-hand
side which is called the credit side. The left hand or debit side shows the value received while the right-hand
or credit side shows the value parted with of the transaction analysis, thus it resembles “T”.
ACCOUNT TITLE (Folio)
Left-hand side Right-hand side NOTE: An amount entered on the left-hand side of
Or Or the account is called a Debit Entry while the amount
Debit side Credit side entered on the right-hand side of the account is
Date Amount Date Amount
called a Credit Entry.
VALUE RECEIVED VALUE PARTED WITH

NOTE: The moment an “account” is assigned to an CASH

item to which a title has already been designated Cr.
Dr.
such account becomes identical to the item
thereafter. For instance, account assigned “Cash” debit entry P25,000 credit entry P10,000
becomes known as Cash

The Account Balances

The difference between an account’s debit and credit totals is known as the Account Balance. If the
total of the debit side exceeds the total of the credit side, the account is said to be in a Debit Balance, and if the
total of the credit sides exceeds the total of the debit side, the account is said to be in a Credit Balance. If the
debit total equals with that of the credit total, the account is said to be In-Balance or Closed Account.

To illustrate: The three (3) cases are being presented to illustrate an account balance.

Case 1: The “Cash account” is used. Case 2: The “Accounts Payable” is used.
CASH ACCOUNTS PAYABLE

Dr. Cr. Dr. Cr.

P25,000 P10,000 P15,000 P 40,000
P10,000 5,000 P20,000 10,000
debit total → P35,000 P15,000 ←credit total debit total → P35,000 P50,000 ←credit total
debit balance → P20,000 P15,000 ←credit balance

We then say, “cash account has a debit We then say, “Accounts Payable account has
balance of P20,000.” a credit balance of P15,000.”
Case 3: The “Accounts Receivable” is used.
ACCOUNTS RECEIVABLE

Dr. Cr.
P12,000 P10,000
4,000 6,000
debit total → P16,000 P16,000 ←credit total
We then say, “Accounts Receivable account has a “zero” balance or
the Account Receivable account is closed.”
 Posting General Ledger using T-Account. (The same procedure as discussed on Quarter 4 Week3 LAS1,
Illustration A). Below is an example of preparing T-Account. Refer General Journal #1 Quarter 4 Week4
LAS1

Activity. Refer to Problem#1. Merchandise Transactions – M Hardware and S Auto Supply for the month of May
20A follows, base on your General Journal Activity B Quarter 4 Week4 LAS1 prepare a General Ledger using
T-Account. Write your answers in a piece of bond paper. One (1) point for every correct entry of a transactions.
See T-Account Example given on the previous LAS.
CASH IN BANK (1) ACCOUNT TITLE ACCOUNT TITLE
Dr. Cr. Dr. Cr. Dr. Cr.

Date Amount Date Amount Date Amount Date Amount Date Amount Date Amount