Fundamentals of SENIOR

Accountancy, Business HIGH

and Management 1 (FABM 1) SCHOOL

Self-Learning

Posting of Journal Entries of a Module

Merchandising Business
11
666
Quarter 4
Fundamentals of Accountancy, Business and Management 1
Quarter 4 – Self-Learning Module 4: Posting of Journal Entries of a Merchandising
Business
First Edition, 2020

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 Fundamentals of
SENIOR
Accountancy, Business HIGH
and Management 1 SCHOOL

(FABM 1)

Self-Learning

Posting of Journal Entries of a

Module

12
Merchandising Business
12
Quarter 4
Introductory Message
For the facilitator:

Welcome to the Senior High School – Fundamentals of Accountancy,

Business, and Management 1 Quarter 4 Self Learning Module on Posting of Journal
Entries of a Merchandising Business!

This Self-Learning Module was collaboratively designed, developed, and

reviewed by educators from the Schools Division Office of Pasig City headed by its
Officer-in-Charge Schools Division Superintendent, Ma. Evalou Concepcion A.
Agustin, in partnership with the City Government of Pasig through its mayor,
Honorable Victor Ma. Regis N. Sotto. The writers utilized the standards set by the K
to 12 Curriculum using the Most Essential Learning Competencies (MELC) in
developing this instructional resource.

This learning material hopes to engage the learners in guided and independent
learning activities at their own pace and time. Further, this also aims to help learners
acquire the needed 21st-century skills especially the 5 Cs, namely: Communication,
Collaboration, Creativity, Critical Thinking, and Character while taking into
consideration their needs and circumstances.

In addition to the material in the main text, you will also see this box in the
body of the module:

Notes to the Teacher

This contains helpful tips or strategies that
will help you in guiding the learners.

As a facilitator, you are expected to orient the learners on how to use this
module. You also need to keep track of the learners' progress while allowing them to
manage their learning. Moreover, you are expected to encourage and assist the
learners as they do the tasks included in the module.
For the learner:

Welcome to Fundamentals of Accountancy, Business and Management 1

Quarter 2 Self Learning Module on Posting of Journal Entries of a Merchandising
Business!

This module was designed to provide you with fun and meaningful
opportunities for guided and independent learning at your own pace and time. You
will be enabled to process the contents of the learning material while being an active
learner.

This module has the following parts and corresponding icons:

Expectations - This points to the set of knowledge and skills

that you will learn after completing the module.

Pretest - This measures your prior knowledge about the lesson

at hand.

Recap - This part of the module provides a review of concepts

and skills that you already know about a previous lesson.

Lesson - This section discusses the topic in the module.

Activities - This is a set of activities that you need to perform.

Wrap-Up - This section summarizes the concepts and

application of the lesson.

Valuing - This part integrates a desirable moral value in the

lesson.

Posttest - This measures how much you have learned from the
entire module.
 EXPECTATIONS

After going through this module, you are expected to:

1. define accounting terminology related to posting from a journal;

2. identify accounting practices related to the posting;
3. prepare a chart of accounts; and
4. post amounts from the general journal to the general ledger.

PRETEST

Directions: Choose the correct answer and write it in the space provided.

_____1. What is the importance of Ledger?

A. Guards the business information.
B. Summarizes and classifies the transactions
C. Records business transaction
D. Provides information about the owners.
_____2. The following are the features of the ledger except for
A. Heading
B. Date
C. Folio
D. Page number

For numbers 3-5 only (True and False) Write T if the statement is correct and false if
it is incorrect.
_____3. Posting journal entries into the ledger of a merchandising are the as with
service business.
_____4. Only nominal accounts are included in the ledgers.
_____5. After journal entries are made, the next step in the accounting cycle is
to post the journal entries into the ledger.

RECAP

Directions: Identify each item below. Write your answer before the item number.

_____1. It is used to record all purchases of merchandise and other items on account.
_____2. It is used to record all transactions that cannot be recorded in special
journals.
_____3. An account in the general ledger that shows the total balance of all the
subsidiary accounts related to it.
_____4. A group of related accounts showing the details of the balance of the general
ledger control account.
_____5. It is used to record all inflows or receipts of cash in the business.

LESSON

After the transaction or event has been journalized. It is posted to the general
ledger same as that of the service business.

The process of transferring the amounts from the journal to the appropriate
accounts in the ledger is posting. Debits in the journal are posted on the debit side
of a ledger, and credits in the journal as credits in the ledger. The steps are illustrated
as follows:

The accounts in the general ledger are classified into two general groups:

1. balance sheet or permanent accounts (assets, liabilities, and owner’s

equity)
2. income statement or temporary accounts (income and expenses).
Temporary accounts or nominal accounts are used to gather information
for a particular accounting period. At the end of the period, the balances
of these accounts are transferred to a permanent owner’s equity account.

Each account has its record in the ledger. Every account in the ledger
maintains the basic format of the T-account but offers more information (for example
the account number at the upper right corner and the journal reference column).
Compared to a journal, a ledger organizes information by account.

STEPS IN POSTING:

1. Transfer the date of the transaction from the journal to the ledger.
2. Transfer the page number from the journal to the journal reference (JR)
column of the ledger.
3. Post the debit figure from the journal as a debit figure in the ledger and the
credit figure from the journal as a credit figure in the ledger.
 4. Enter the account number in the posting reference column of the journal once
the figure has been posted to the ledger.

Note: The posting of the transactions from the general journal or special journals
had been illustrated in the previous module 10. Please check that module for your
easy reference.

THE JOURNAL 2
GJ-1

Date Account Title and Explanation P.R. Debit Credit

2020

1 Jan. 3 Accounts Receivable 111 ₱ 280,000

2 Sales 501 ₱ 250,000
3 Output Tax 702 30,000
4 Sold merchandise on account. Terms:
4 2/10, n/30.

THE LEDGER

Account: ACCOUNTS RECEIVABLE Account No. 111

Date Explanation J.R. Debit Credit Balance

2020

1 Jan. 3 Sold merchandise.Terms: 2/10, n/30 GJ-1 ₱ 280,000 ₱ 280,000

Account: SALES Account No. 501

Date Explanation J.R. Debit Credit Balance

2020

1 Jan. 3 Sold merchandise.Terms: 2/10, n/30 GJ-1 ₱ 250,000 ₱ 250,000

Account: OUTPUT TAX Account No. 702

Date Explanation J.R. Debit Credit Balance

2020

1 Jan. 3 Sold merchandise.Terms: 2/10, n/30 GJ-1 30,000 30,000

LEDGER ACCOUNTS AFTER POSTING

At the end of an accounting period, the debit or credit balance of each account must
be determined to enable us to come up with a trial balance.
 • Each account balance is determined by footing (adding) all the debits and
credits
• If the sum of an account’s debts is greater than the sum of its credits, that
account has a debit balance.
• If the sum of its credits is greater, that account has a credit balance.

ACTIVITIES

Activity 1
Posting of Journal Entries in the General Ledger
Used the data in your answers for Module 10 Activity#2 to post the amounts
in the ledgers. (Use the ledger to do this activity)

Activity 2
Journal entries and posting
On September 1, 2019, B&W Office Supply had an inventory of 30pocket
calculators at a cost of P180 each. The business uses perpetual inventory systems.
During September, the following transactions occurred.

Sept. 6 Purchased 80 calculators at P170 each from Cales Ltd. for cash

9 Paid freight of P800 on calculators purchased from Cales Ltd.

10 Returned two calculators to Cales Ltd. for P13,600 credit because they
did not meet specifications.

12 Sold 26 calculators costing P180 for P310 each to Mega Book Store,
terms n/30.

14 Granted credit of P310 to Mega Book Store for the return of one
calculator that was not ordered.

14 Sold 30 calculators costing P180 for P310 each to Bob’s Card Shop,
terms n/30.

Required:

1. Prepare the journal entries to record these transactions on the books of B&W
Office Supply.
2. Post the amounts that have been journalized to the ledger.
 WRAP-UP
To summarize what you have learned from the lesson, answer the following
questions:

1. how does the posting of business transactions of a service business differ from
merchandising business?

2. summarize the process in posting; and

3. why it is important to post the business transaction in each ledger accounts?

VALUING

CASE STUDY:

The bookkeeper for the Guess Store made an error while posting in the special
journals and general journals. In the cash receipts journal, the cash sale of an old
typewriter for P1,000 was not posted to the office equipment account in the general
ledger.
a. Will the general ledger accounts balance? If not, why not?
b. Will the balance in the cash in the bank account be correct?
c. Will the value of the office equipment be overstated or understated? Why?

POSTTEST

Directions: Write TRUE if the statement is correct, or FALSE if it is incorrect.

_____1. Posting from the purchases journal to the subsidiary ledger is generally made
weekly.
_____ 2. The accounts in the general ledger are classified into two general groups, the
statement of changes in equity accounts and income statement accounts
_____ 3. Each account has no own record in the ledger.
_____4. Debits in the journal are posted on the debit side of a ledger, and credits in
the journal as credits in the ledger.
_____ 5. The process of transferring the amounts from the journal to the appropriate
accounts in the ledger is sliding.
 KEY TO CORRECTION

Cash receipts journal 5.

FALSE 5.
Control account 4.
TRUE 4.
account
5. TRUE FALSE 3.
Subsidiary ledger 3.
4. FALSE FALSE 2.
General Journal 2.
TRUE 1.
3. TRUE Purchases Journal 1.
2. D POSTTEST
1. B RECAP
PRETEST

References

Ballada, W. 2017. Fundamentals of Accountancy, Business, and Management 1.

VDomDane Publishers.

Banggawan, RB. Asuncion, DJ. 2017. Fundamentals of Accountancy, Business, and

Management 1. Real Excellence Publishing.

Ferrer, RC. Millan, CV. 2017. Fundamentals of Accountancy, Business, and

Management 1. Bandolin Enterprise. San Juan, DA. 2018. Fundamentals
of Accounting. Elmoer Publishing

Rabo, JS. Tugas,FC.Salendrez, HE. 2016. Fundamentals of Accountancy, Business,

and Management 1. Vibal Group Inc.

Manuel, Zenaida Vera-Cruz 18th Edition Accounting Process_Basic Concepts and

Procedures

Epstein, Lita, MBA Bookkeeping Workbook for Dummies. Wiley Publishing, Inc.

Hernane, Milagros B.,et.al 2014. Principles of Accounting. Allen Adrian Books Inc.

Valencia, Edwin G. 4th Edition. Basic Accounting (Concepts, Principles, Procedures and
Applications). Valencia Educational Supply