Chapter 7

INTEGRATED ACCOUNTING
MID TERM PERIOD

LEARNING MODULE ATTACHMENT (DO NOT COPY)
LEARNING OBJECTVES
ACCOUNTING CYCLE
1. Identification of events to be recorded. Finished
2. Journalizing the transaction.
3. Posting from the Journals to General Ledger.
4. Preparing the Unadjusted Trial Balance. Now
5. Recording Adjusting Entries.
6. Preparing the Adjusted Trial Balance.
7. Preparing Financial Statements.
8. Recording Closing Entries. Later
9. Preparing a Closing Trial Balance.
10. Recording Reversing Entries.
POSTING
• Process of transferring data (debit and credit) from the journal to appropriate accounts in the ledger.
• Purpose of posting is to classify the effects of transactions on five major accounts specifically asset,
liability, equity, income and expense accounts in order to provide more meaningful information.
Illust ration :
THIS FORM IS FOR INSTITUTIONAL PURPOSES ONLY!

LEDGER ACCOUNTS AFTER POSTING
• The debit or credit balance of each amount must be determined to enable us to come up with a trial balance.
• Each account balance is determined by adding all the debits and credits.
• If the sum of an account’s debits is greater than the sum of its credits, that account has a debit balance.
• If the sum of it’s credits is greater, that account has a debit balance.
Illustration: The ledger accounts of Weddings “R” Us after posting are shown below. The account numbers and journal
reference columns are purposely omitted. The balance of each account has been determined.
TRIAL BALANCE
• Trial balance is a list of all accounts with their respective debit or credit balances.
• Prepared to verify the equality of debits and credits in the ledger at the end of each accounting period.
• A control that helps minimize accounting errors.
• When the totals are equal, the trial balance is in balance

LOCATING ERRORS
An inequality in the totals of the debits and credits would automatically signal the presence of an error. These errors
include:
1. Error in posting a transaction to the ledger:
• an erroneous amount was posted to the account.
• a debit entry was posted as a credit or vice versa.
• a debit or credit posting was omitted.
2. Error in determining the account balances:
• a balance was incorrectly computed.
• a balance was entered in the wrong balance column.
3. Error in preparing the trial balance:
• one of the columns of the trial balance was incorrectly added.
• the amount of an account balance was incorrectly recorded on the trial balance.
• A debit balance was recorded on the trial balance as a credit or vice versa, or a balance was omitted entirely.
Approach in locating error

1. Prove the addition of the trial balance
2. If the error does not lie in addition, determine the exact amount by which the trial balance is out of balance. If the
discrepancy is divisible by 9, this suggests:
• Transposition- reversing the order of numbers
• Slide- moving of the decimal point
3. Compare the accounts and amount in the trial balance with that in ledger
4. Recompute the balance of each ledger account.
5. Trace all postings from the journal to the ledger accounts.
A balanced trial balance simply proves that, as recorded, debits equal credits. The following errors are not detected by a
trial balance:
1. Failure to record or post a transaction.
2. Recording the same transaction more than once.
3. Recording an entry but with the same erroneous debit and credit amounts.
4. Posting a part of a transaction correctly as a debit or credit but to the wrong account.

LEARNING ACTIVITY #0 5
Name: Score:
Program / Course: Class Schedule:
Year & Section: Contact No. / FB Account:
Residential Address:
Type of Activity (check or choose from below)

Concept Notes Laboratory Report Portfolio
Skills: Exercise / Drill Illustration Others:___________________
Activity Title : Recording Transactions in T-accounts and Preparing a Trial Balance

Learning Target : To analyze the transaction and post the journal entries in ledger using T-accounts and prepare
unadjusted Trial Balance.
References (Author, Title, and Pages) :_______________________________________________
I. Problem Solving : POSTING

Lily Santos opened a servicing business name on September 2022, The business DTI Registered name “Mind Your
Own Business”. MYOB had the following transactions for the month of September.
1 Owner invested P 1,000,000 cash to the busines s
4 Purchas ed equipment wor th P 5 8 0,000 paid in cash
5 Purchas ed off ice supplies worth P 3 00,000 on account (use a s an ass et a cco unt )
15 P aid P100,000 acc ounts payable.
16 Rendered servi ces to various cl ient f or P 5 00,000 on cash basis.
18 Rendered servi ces to various cl ient f or P 8 00,000 on account.
20 Collected P700,000 accounts re ce ivab le.
25 Paid the salar y of employee P70 ,000 .
30 Paid Meralco and Mayni lad f or utiliti es bill total ing P 1 0 ,000
Withdrew P1 0,000 f rom the busine ss f or personal use
Requirements:
1. J ournali ze t he above tr ansactions usi ng t he f ollowing ac count t itl es:
110 Cash , 120 Accounts Receivab le , 130 Notes Receivable , 14 0 Off ice Supplies,
15 0 Equipmen t, 210 Accounts P ayable , 220 Notes P ayable, 310 Lily, Capital,
320 Lily, Withdrawal, 410 Service I ncome, 430 Inte res t Income , 520 Salaries Expenses
530 Utiliti es Expenses , 540 Supplies Expense
2. Post the jour nal ent r ies to the l edger (us e T- Ac counts)
II. Analytica l Skill s: Unadjusted Trial B alance

George Handyman Services, has the f ollowing a ccount bala nce as of December 31, 2020 .
Account Payab le 3 2 ,000
Account Recei vable 320,000
Accumulat ed Depreciation 4 0 0,000
Building 500,000
Cash 970,000
Int ere st Expense 96,000
Land 700,000
Notes Payable 800,000
Owner’s Equit y 920,000
Prepaid Rent 50,000
Sal ari es Ex pense s 240,000
Ser vi ces Fees 796,000
Utiliti es Expenses 7 2,000
Requirements: Prepare unadjus ted tri al bala nce , Ma ke s ure to provide proper he ading f or the
report and prese nt t he account in t hei r correc t sequence.

LEARNING ACTIVITY #0 6
Name: Score:
Program / Course: Class Schedule:
Year & Section: Contact No. / FB Account:
Residential Address:
Type of Activity (check or choose from below)

Concept Notes Laboratory Report Portfolio
Skills: Exercise / Drill Illustration Others:___________________
Activity Title : Recording Transactions in Ledger and Preparing a Trial Balance

Learning Target : _Post Transaction in ledger and Prepare unadjusted Trial Balance
References (Author, Title, and Pages) :_______________________________________________
Problem Solving : Posting & Unadjusted Trial Balance
Mr. Kim Taeyung has st art ed operating a se rvi ce bus ine ss i n 2020. His company, VTS Company is
engaged in providing ser vices to it s c lient. The f ollowing we re VTS Company’s tr ansa ctions in
May 2020.
May 1 Invest ed P700,000 in the busi ne ss

3 Went to various gover nment agencie s to regist er t he bus ine ss a nd paid P10,000.
6 Purchas ed supplies worth P100,000 paid in ca sh
7 Purchas ed supplies worth P20,000 on account
11 Rendered servi ces to various cl ient f or P60,000 received ca sh.
12 Rendered servi ces to various cl ient f or P20,000 on account.
14 Paid salar y of employee f or the f irst half of the month , P4,000.
17 Paid supplier half of the total amount in May 7 tra nsa c
21 Received promissory no te f rom the clie nt on Ma y 12 transa cti on, who wa s not able
to pay within 8 days f rom the date of the t ransa ction. Principal i s P20,000 wit h the
interest of P2,000
25 Recei ved payment on the promissor y note of May 21.
29 Purchas ed equipment wor th P100,000 by issui ng a promissory note
30 Paid the salar y of employee for the se cond half of the month, P4,000
31 Paid Meralco and Mayni lad f or utiliti es bill total ing P 5,000
Withdrew P12,000 f rom the busine ss f or personal use
Requirements :
1. J ournali ze t he above tr ansactions usi ng t he f ollowing ac count t itl es:

110 Cash 410 Servi ce Income
120 Accounts Receivab le 430 Int ere st Income
130 Notes Receivabl e 520 Salar ies Expense s
150 Supplies 530 Taxes and Li ce ns es Expenses
210 Accounts Payable 540 Supplies Expense
220 Notes Payable 55 0 Utilities Expens e
310 V, Capital
320 V, Withdrawal
2. Post the jour nal ent r ies to the l edger

3. Prepare the unadjusted tr ial bal ance.

Chapter 7

Uploaded by

Copyright:

Available Formats

Chapter 7

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chapter 7

Uploaded by

Copyright:

Available Formats

INTEGRATED ACCOUNTING

MID TERM PERIOD

THIS FORM IS FOR INSTITUTIONAL PURPOSES ONLY!

THIS FORM IS FOR INSTITUTIONAL PURPOSES ONLY!

Approach in locating error

THIS FORM IS FOR INSTITUTIONAL PURPOSES ONLY!

Type of Activity (check or choose from below)

Activity Title : Recording Transactions in T-accounts and Preparing a Trial Balance

I. Problem Solving : POSTING

II. Analytica l Skill s: Unadjusted Trial B alance

THIS FORM IS FOR INSTITUTIONAL PURPOSES ONLY!

Type of Activity (check or choose from below)

Activity Title : Recording Transactions in Ledger and Preparing a Trial Balance

Problem Solving : Posting & Unadjusted Trial Balance

May 1 Invest ed P700,000 in the busi ne ss

1. J ournali ze t he above tr ansactions usi ng t he f ollowing ac count t itl es:

2. Post the jour nal ent r ies to the l edger

THIS FORM IS FOR INSTITUTIONAL PURPOSES ONLY!

You might also like