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FABM1 Q4 Module 12
FABM1 Q4 Module 12
Self-Learning
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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Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names,
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represent nor claim ownership over them.
(FABM 1)
Self-Learning
12
Merchandising Business
12
Quarter 4
Introductory Message
For the facilitator:
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:
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:
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.
Posttest - This measures how much you have learned from the
entire module.
EXPECTATIONS
PRETEST
Directions: Choose the correct answer and write it in the space provided.
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:
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
THE LEDGER
2020
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
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?
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
_____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
References
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