Classifying & Posting

Types of Ledgers

  • General Ledger: Contains the main or control accounts.

  • Subsidiary Ledger: Contains detailed supporting information for a specific control account.

    • Example: If the Accounts Receivable general ledger shows a total balance of ₱100,000, subsidiary ledgers track the individual balances of Customer A (₱30,000), Customer B (₱20,000), Customer C (₱10,000), and Customer D (₱40,000).

3. General Ledger Mechanics & Formats

Steps in Posting to the General Ledger

  1. Identify Account Number: Determine the account number from the Chart of Accounts.

  2. Locate Account: Find the corresponding page/account in the General Ledger.

  3. Date: Record the transaction date.

  4. Particulars: Copy the explanation or particulars from the journal.

  5. Journal Reference (JR): Enter the journal page code (e.g., GJ1 = General Journal Page 1).

  6. Amount: Enter the Debit or Credit amount in the ledger.

  7. Posting Reference (PR): Record the posted account number back in the PR column of the General Journal.

  8. Repeat: Apply the same steps to every entry line.

Ledger Formats

  1. Standard Ledger Format: Includes separate debit and credit columns with date, particulars, and journal reference.

  2. Running Balance Formats: Features columns for DEBIT, CREDIT, and a continuous BALANCE column (either marked as Dr/Cr or single balance).

  3. T-Account (Informal Format): Used for classroom/academic purposes. Only records the transaction reference/date and the numerical amount on either the left (debit) or right (credit) side.