Posting Guidelines for Merchandising Business

Posting to Accounts Receivable Subsidiary Ledger (done daily)

A. Post every entry in the Sales Journal (SJ) to the debit side of its respective Accounts
Receivable Subsidiary Ledger (A/R SL).
Sales Journal
Accounts
Invoice
Date Sales Output VAT Receivable
No.
2020 Accounts Debited PR Credit Credit Debit
July 2 512 L. Ang  ₱ 23,760.00 ₱ 3,240.00 ₱ 27,000.00
13 513 L. Bellen  19,360.00 2,640.00 22,000.00

Accounts Receivable Subsidiary Ledger - L. Ang

Date Description PR Debit Credit Balance
July 2 512 SJ-1 ₱ 27,000.00 ₱ 27,000.00

Step 1: Write the date of transaction in the date column of the A/R SL.

Step 2: Write the Invoice number as its Description.

Step 3: At the A/R SL PR, Write SJ-<page#>

Step 4: Write Accounts Receivable amount in the debit column of A/R SL then add the
amount to the Balance as its new balance.

Step 5: Put a check () mark in the SJ PR.

B. From the General Journal (GJ), post each credit Accounts Receivable entry to the credit
side of its respective Accounts Receivable Subsidiary Ledger (A/R SL).

Date Account Title and Explanation PR Debit Credit

July 30 Sales Returns and Allowances 420 2,816.00
Output Vat 260 384.00
Accounts Receivable 120 3,200.00
Returns of Goods (RR#217)

Accounts Receivable Subsidiary Ledger - L. Mandreza

Date Description PR Debit Credit Balance
July 27 515 SJ-1 ₱ 28,000.00 ₱ 28,000.00
30 217 GJ-1 ₱ 3,200.00 24,800.00

Step 1: Write the date of transaction in the date column of the A/R SL.
 Step 2: Write the Receiving Report number as its Description.

Step 3: At the A/R SL PR, Write GJ-<page#>

Step 4: Write Accounts Receivable amount in the Credit column of A/R SL then subtract
the amount from the balance as its new balance.

Step 5: Put a check () mark in the GJ PR.

C. From the Cash Receipt Journal (CRJ), post each Accounts Receivable amount to the
credit side of its respective A/R SL.
Cash Receipt Journal
Account
Invoice
Date OR NO Receivable Sales Sales Discount Output VAT Cash
No.
2020 Accounts Debited PR Credit Credit Debit Credit Debit
July 4 432 512 L. Ang  ₱ 27,000.00 ₱ 540.00 ₱ 26,460.00
10 433 Cash Customer ₱ 25,520.00 ₱ 3,480.00 29,000.00

Accounts Receivable Subsidiary Ledger - L. Ang

Date Description PR Debit Credit Balance
July 2 512 SJ-1 ₱ 27,000.00 ₱ 27,000.00
4 432 CRJ-1 ₱ 27,000.00 -

Step 1: Write the date of transaction in the date column of the A/R SL.

Step 2: Write the Official Receipt number as its Description.

Step 3: At the A/R SL PR, Write CRJ-<page#>

Step 4: Write Accounts Receivable amount in the Credit column of A/R SL then subtract
the amount from the balance as its new balance.

Step 5: Put a check () mark in the GJ PR.

Posting to Accounts Payable Subsidiary Ledger (done daily)

A. Post every entry in the Purchases Journal (PJ) to the credit side of its respective
Accounts Payable Subsidiary Ledger (A/P SL).
Purchases Journal
Accounts
Invoice
Date Purchases Input Vat Payable
No.
2020 Accounts Debited PR Debit Debit Credit
July 6 4429 Landicho Trading  ₱ 14,080.00 ₱ 1,920.00 ₱ 16,000.00
19 6420 Melodillar Merchant  13,200.00 1,800.00 15,000.00
22 8712 Salazar Enterprises  8,800.00 1,200.00 10,000.00

Accounts Payable Subsidiary Ledger - Landicho Trading

Date Description PR Debit Credit Balance
July 6 4429 PJ-1 ₱ 16,000.00 ₱ 16,000.00
9 2318 GJ-1 ₱ 2,000.00 14,000.00
16 7123 CDJ-1 14,000.00 -

Step 1: Write the date of transaction in the date column of the A/P SL.

Step 2: Write the Invoice number as its Description.

Step 3: At the A/P SL PR, Write PJ-<page#>

Step 4: Write Accounts Payable amount in the Credit column of A/P SL then add the
amount to the balance as its new balance.

Step 5: Put a check () mark in the PJ PR.

B. From the General Journal (GJ), post each debit Accounts Payable entry to the debit side
of its respective Accounts Payable Subsidiary Ledger (A/P SL).
Date Account Title and Explanation PR Debit Credit
July 9 Accounts Payable 120 ₱ 2,000.00
Purchase Returns and Allowances 520 ₱ 1,760.00
Input Vat 140 240.00
Returns of goods (RR#2318)

Accounts Payable Subsidiary Ledger - Landicho Trading

Date Description PR Debit Credit Balance
July 6 4429 PJ-1 ₱ 16,000.00 ₱ 16,000.00
9 2318 GJ-1 ₱ 2,000.00 14,000.00
16 7123 CDJ-1 14,000.00 -

Step 1: Write the date of transaction in the date column of the A/P SL.
 Step 2: Write the Receiving Report number as its Description.

Step 3: At the A/P SL PR, Write GJ-<page#>

Step 4: Write Accounts Payable amount in the debit column of A/P SL then subtract the
amount from the balance as its new balance.

Step 5: Put a check () mark in the GJ PR.

C. From the Cash Disbursement Journal (CDJ), post each Accounts Receivable amount to
the debit side of its respective A/P SL

Cash Disbursement Journal

SSS, PH, Pag With. Tax
Check
Check Salaries Pay Payable Accounts Purchase
Voucher
Date No. Sundry Purchases Expense Debit Debit Payable Discount Cash
No.
2020 Accounts Debited PR Debit Debit Debit (Credit) (Credit) Debit Credit Credit
16 601 2883 Landicho Trading 14,000.00 14,000.00
20 602 2884 Utilities Payable 250 2,200.00 2,200.00

Accounts Payable Subsidiary Ledger - Landicho Trading

Date Description PR Debit Credit Balance
July 6 4429 PJ-1 ₱ 16,000.00 ₱ 16,000.00
9 2318 GJ-1 ₱ 2,000.00 14,000.00
16 601 CDJ-1 14,000.00 -

Step 1: Write the date of transaction in the date column of the A/P SL.

Step 2: Write the Voucher number as its Description.

Step 3: At the A/P SL PR, Write CDJ-<page#>

Step 4: Write Accounts Payable amount in the debit column of A/P SL then subtract the
amount from the balance.

Step 5: Put a check () mark in the CDJ PR.

 Posting to General Ledger (done Monthly)

A. Post the total of each column of the Sales Journal to its respective General Ledger (GL)
account.

Sales Journal
Accounts
Invoice
Date Sales Output VAT Receivable
No.
2020 Accounts Debited PR Credit Credit Debit
July 2 512 L. Ang  ₱ 23,760.00 ₱ 3,240.00 ₱ 27,000.00
13 513 L. Bellen  19,360.00 2,640.00 22,000.00
17 514 E. Llaneta  27,280.00 3,720.00 31,000.00
27 515 L. Mandreza  24,640.00 3,360.00 28,000.00

Total ₱ 95,040.00 ₱ 12,960.00 ₱ 108,000.00

(410) (260) (120)

410 Sales
Date Description PR Debit Credit Balance
July 31 Sales on account SJ-1 ₱ 95,040.00 ₱ 95,040.00
31 Cash sales CRJ-1 47,520.00 142,560.00

Step 1: Write the end of the month date in the date column of GL.

Step 2: Write “Sales on account” as description

Step 3: In the GL PR, write SJ-<page#>.

Step 4: Write the total amount in its respective Debit/Credit column in each account
with new balance as follows:

 Sales: Credit entry, add the amount to the balance

 Output VAT: Credit entry, add the amount to the balance
 Accounts Receivable: Debit entry, add the amount to the balance

Step 5: Below the total amount in the SJ, write the account number, enclosed in ( ), of
the account where the amount is posted.
B. Post the total of each column of the Purchases Journal to its respective General Ledger
(GL) account.

Purchases Journal
Accounts
Invoice
Date Purchases Input Vat Payable
No.
2020 Accounts Debited PR Debit Debit Credit
July 6 4429 Landicho Trading  ₱ 14,080.00 ₱ 1,920.00 ₱ 16,000.00
19 6420 Melodillar Merchant  13,200.00 1,800.00 15,000.00
22 8712 Salazar Enterprises  8,800.00 1,200.00 10,000.00

Total ₱ 36,080.00 ₱ 4,920.00 ₱ 41,000.00

(510) (140) (210)

510 Purchases
Date Description PR Debit Credit Balance
July 31 Purchase on Account PJ-1 ₱ 36,080.00 ₱ 36,080.00
31 Cash Purchase CDJ-1 23,760.00 59,840.00

Step 1: Write the end of the month date in the date column of GL.

Step 2: Write “Purchase on account” as description

Step 3: In the GL PR, write PJ-<page#>.

Step 4: Write the total amount in its respective Debit/Credit column in each account
with new balance as follows:

 Purchases: Debit entry, add the amount to the balance

 Input VAT: Debit entry, add the amount to the balance
 Accounts Payable: Credit entry, add the amount to the balance

Step 5: Below the total amount in the PJ, write the account number, enclosed in ( ), of
the account where the amount is posted.

C. Post the total of each column of the Cash Receipt Journal to its respective General
Ledger (GL) account.

Step 1: Write the end of the month date in the date column of GL.

Step 2: For Accounts Receivable and Sales Discount accounts, write “Sales on account”
as description. For Sales and Output VAT accounts, write “Cash sales” and for
Cash account, write “Collection from customers”.
 Step 3: In the GL PR, write CRJ-<page#>.

Step 4: Write the total amount in its respective Debit/Credit column in each account
with new balance as follows:

 Accounts Receivable: Credit entry, subtract the amount from the balance
 Sales Discount: Debit entry, add the amount to the balance
 Sales: Credit entry, add the amount to the balance
 Output VAT: Credit entry, add the amount to the balance
 Cash: Debit entry, add the amount to the balance

Step 5: Below the total amount in the PJ, write the account number, enclosed in ( ), of
the account where the amount is posted.

D. Post the total of each column (except for Sundry) of the Cash Disbursement Journal to
its respective General Ledger (GL) account.

Step 1: Write the end of the month date in the date column of GL.

Step 2: Description will be based on the following:

 Purchases: Purchase of goods

 Salaries Expense; SSS, PH & Pagibig Payable; and Withholding Tax Payable:
Payment of Salaries
 Accounts Payable and Purchase Discount: Payment of Payables
 Cash: Cash disbursement
 for Sundry entry,
o Input VAT: Purchase of assets
o Remittance to BIR: Payment of taxes
o Utilities: Payment of Utilities
o Rent Expense: Payment of rent
o Supplies Expense: Purchase of Supplies
o Sales Returns and Allowances, and Output VAT: Returns of goods

Step 3: In the GL PR, write CDJ-<page#>.

Step 4: Write the total amount in its respective Debit/Credit column in each account
with new balance as follows:

 Purchases: Debit entry, add the amount to the balance

 Salaries Expense: Debit entry, add the amount to the balance
 SSS, PH & Pagibig Payable: if the total is positive (not enclosed in
parenthesis) Debit entry, subtract the amount from the balance; otherwise,
Credit entry, add the amount to the balance.
  Withholding Tax Payable: : if the total is positive (not enclosed in
parenthesis) Debit entry, subtract the amount from the balance; otherwise,
Credit entry, add the amount to the balance.
 Accounts Payable: Debit entry, subtract the amount from the balance
 Purchase Discount: Credit entry, add the amount to the balance
 Cash: Credit entry, add the amount to the balance
 for Sundry entry, get the total of similar item and write the total in its
respective column in each of the accounts.
o Input VAT: Debit entry, add the amount to the balance
o Utilities Payable: Debit entry, subtract the amount from the balance.
o Rent Expense: Debit entry, add the amount to the balance
o Supplies Expense: Debit entry, add the amount to the balance
o Sales Returns and Allowances, and Output VAT: Debit entry, subtract the
amount from the balance

Step 5: Below the total amount in the PJ, write the account number, enclosed in ( ), of
the account where the amount is posted. For Sundry entry, write the account number
of the account where the amount is posted on the PR before the amount.

E. Post the total of each similar account of the General Journal to its respective General
Ledger (GL) account

Step 1: Write the end of the month date in the date column of GL.

Step 2: Use the explanation in the GL as its description

Step 3: In the GL PR, write GJ-<page#>.

Step 4: Get the total of similar item and write the total in its respective column in each
of the accounts.

 Accounts Payable: Debit entry, subtract the amount from the balance
 Purchase Returns and Allowances: Credit entry, add the amount from the
balance
 Input VAT: Credit entry, subtract the amount from the balance
 Accounts Receivable: Credit entry, subtract the amount from the balance
 Output VAT: Debit entry, subtract the amount from the balance
 Sales Returns and Allowances: Debit entry, add the amount from the balance

Step 5: Write the account number in the PR column of GJ of every account posted.