L3: Posting and Preparation of

Unadjusted Trial Balance

Accounting for Service and

Merchandising Entities
ACC11

PREPARED BY:
[INSTRUCTOR’S NAME]

Module No. 1 SCHOOL NAME

 LEARNING OBJECTIVES

⚫ Review of recording the initial journal entries

⚫ Posting of Accounts to the General Ledger and the
Importance of Folio (Post reference)
⚫ Preparation of the Unadjusted Trial Balance
⚫ The Importance of Unadjusted Trial Balance

Module No. 1 Title of Your Presentation

 Review of recording the initial journal entries

Based on our last discussion, we covered the following:

1. All economic transaction are recorded chronologically in the General
Journal
2. Assets, expenses , and drawings are usually debited while liabilities
and income are usually credited. The reverse of their normal balances
means decreases.
3. A journal entry could either be simple or compound.
 What is posting?

Posting is summarizing all similar accounts to the General Ledger taken

from the General Journal.

This means that each account will have its own ledger account (a
summary).

For example, all cash transactions – both debit and credit are copied to
the General Ledger and summarized to compute the balance.
 3 Common ways of Posting

Standard format
The Standards format is the commonly used lay-out in the actual workplace. It has standard columns for date,
account titles, folio, debit, credit, and balances.

This format will be used in the illustration of the Accounting Process that will be presented later.

T-account
The T-account is a simplified form of the standards format. It is usually used by auditors for random checking of
account balances. Students find this format convenient in posting journal transactions. The left side of the T-form for
each account reflects the debit, and the right side is the credit.

Tabular form
The Tabular form is much simplified format where posting is reflected by positive and negative signs in one column.
The positive sign reflects the normal balance or an increase, while negative sign is reflected for a decrease in the
value of an account.
 
 The Posting Process

GENERAL JOURNAL Page No. 001

GENERAL LEDGER
 From General Journal to General Ledger

Data taken from Step 2: Journalizing economic transactions

Date Account titles F Debit Credit 15 Cash 1 5,000  
Jan.
  Accounts receivable-Summit 4   5,000
2020        
         
2 Cash 1 80,000  
  Higantes, Capital 70   80,000 18 Salaries expense 100 5,000  
            Permits and licenses 104 3,000  
4 Equipment 33 25,000     Utilities expense 101 2,000  
  Accounts payable-Max 49   25,000   Cash 1   10,000
                   
7 Supplies 6 20,000   23 Cash 1 15,000  
  Cash 1   20,000   Unearned service revenue 50   15,000
                   
9 Cash 1 18,000   25 Rent expense 113 7,500  
  Service revenue 80   18,000   Cash 1   7,500
                   
12 Accounts receivable-Summit 4 12,000   27 Unearned service revenue 50 7,000  
  Service revenue 80   12,000   Service revenue 80   7,000
                   
14 Accounts payable-Max 49 10,000   31 Higantes, Drawings 71 3,500  
  Cash 1   10,000   Cash 1   3,500
 Step 3: Posting - Illustration

(A) - ACCOUNTS RECEIVABLE 4

Ref Balanc
Date Explanation . Debit Credit e
1/12/2020 Rendered service J1 12,000    12,000
(A) - CASH 1 1/15/2020 Cash collection J1   5,000  7,000
Ref 1/31/2020 Balance       7,000
Date Explanation . Debit Credit Balance
1/2/2020 Investment J1 80,000    80,000
1/7/2020 Purchased supplies J1   20,000  60,000
(A) - SUPPLIES 6
Ref Balanc
1/9/2020 Rendered services J1 18,000    78,000 Date Explanation . Credit e
1/14/2020 Paid accounts payable J1   10,000  68,000 1/7/2020 Purchased in cash J1 20,000    20,000
1/31/2020 Balance       20,000
1/15/2020 Collected accounts receivable J1 5,000    73,000
1/18/2020 Paid expenses J1   10,000  63,000
1/23/2020 Received advance payment J1 15,000    78,000 (A) - EQUIPMENT 33
1/25/2020 Paid rent J1   7,500  70,500 Re Credi Balanc
Date Explanation f. Debit t e
1/31/2020 Drawings J1   3,500  67,000 25,00
1/31/2020 Balance       67,000 1/4/2020 Purchased on account J1 0    25,000
1/31/2020 Balance       25,000
 Step 3: Posting - Illustration
(L) - ACCOUNTS PAYABLE 49 (I) - SERVICE REVENUE 80
Ref Re
Date Explanation . Debit Credit Balance Date Explanation f. Debit Credit Balance
1/4/2020 Purchased equipment J1   25,000  25,000 1/9/2020 Cash J1   18,000  18,000
1/14/2020 Payment J1 10,000    15,000 1/12/2020 Credit J1   12,000  30,000
1/31/2020 Balance       15,000 1/27/2020 Rendered unearned services J1   7,000  37,000
1/31/2020 Balance       37,000

(L) - UNEARNED SERVICE REVENUE 50

Date Explanation Ref. Debit Credit Balance
(E) - SALARIES EXPENSE 100
1/23/2020 Advance payment J1   15,000  15,000 Date Explanation Ref. Debit Credit Balance
1/27/2020 Rendered services J1 7,000    8,000 1/18/2020 Cash payment J1 5,000    5,000
1/31/2020 Balance       8,000 1/31/2020 Balance       5,000

(E) - PERMITS AND LICENSES 104

Date Explanation Ref. Debit Credit Balance
1/18/2020 Cash payment J1 3,000    3,000
1/31/2020 Balance       3,000
(P) - HIGANTES, CAPITAL 70
Ref Balanc
Date Explanation . Debit Credit e (E) - UTILITIES EXPENSE 101
1/2/2020 Cash Investment J1   80,000  80,000 Date Explanation Ref. Debit Credit Balance
1/31/2020 Balance       80,000 1/18/2020 Cash Payment J1 2,000    2,000
1/31/2020 Balance       2,000
Contra (P) - HIGANTES, DRAWINGS 71
Ref Balanc (E) - RENT EXPENSE 113
Date Explanation . Debit Credit e Date Explanation Ref. Debit Credit Balance
1/31/2020 Cash withdrawal J1 3,500   3,500 1/25/2020 Cash Payment J1 7,500    7,500
1/31/2020 Balance       3,500 1/31/2020 Balance       7,500
 Step 4: The Unadjusted Trial Balance

The Unadjusted trial balance reflects the posted balances of each

account from the initial journal transactions.

The format of accounts should be in the ALPIE sequence. The initials

of the Elements of the financial statements before each account is not
necessary but placed in this illustration to emphasize the arrangement of
presenting the accounts in the trial balance.
 
Bull Kit Vulcanizing Shop
Unadjusted Trial Balance
For the month ended January 31, 2020
 
Account Titles Debit Credit
 
(A) Cash P67,000
(A) Accounts receivable 7,000
(A) Supplies 20,000
(A) Equipment 25,000
(L) Accounts payable P15,000
(L) Unearned service revenue 8,000
(P) Higantes, Capital 80,000
(P) Higantes, Drawings 3,500
(I) Service Revenue 37,000
(E) Salaries expense 5,000
(E) Permits and Licenses 3,000
(E) Utilities expense 2,000
(E) Rent expense 7,500
 
Balance P140,000 P140,000