Академический Документы
Профессиональный Документы
Культура Документы
Books
(Journal and Ledger)
Learning Outcomes:
A ledger is a means of accumulating in one place all the information about changes in an
asset, liability, equity, income, and expense accounts. A sample of the general ledger is
shown below:
The General Journal and Special Journal
The Use of General Ledger
A general ledger is often called a T-Account because of its resemblance to the letter T. A T-
Account is a simplified form of general ledger. A sample of a T-account is shown below:
NOTE: A T-Account for each of the account titles listed on the Chart of Accounts is prepared to
determine the balance at the end of the period of each account.
The General Journal and Special Journal
Determining the Balance of a T-Account
NOTE: The total debit and credit balances should always be equal. The entries prepared above involves one debit and one credit
account, however there are instances wherein more than one account are debited to credited. These are called compound journal
entries.
The General Journal and Special Journal
Compound Journal Entry
An entry the involved two accounts only, one debit and one credit is called a simple journal entry. Some
transactions, however, require more than two accounts in journalizing. An entry that requires three or more
accounts is a compound entry.
To illustrate: Ariel Garden Supply Store acquire a land for P800,000. Ariel paid P300,000 cash and issued a
promissory note for the balance
To record the above transaction using simple entry: To record the above transaction using compound entry:
(1) Land 300,000 (1) Land 800,000
Cash 300,000 Cash 300,000
To record purchase of land for cash Notes Payable 500,000
To record purchase of land by paying cash and
issuance of notes payable
(2) Land 500,000
Notes Payable 500,000
To record purchase of land by issuance of promissory note