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Rovelyn E. Forcadas ABM-11 Activity #9-B

The trial balance provided is for Juan Masipag Recruitment Agency as of December 31, 2019 and shows total debits of P760,500 equal to total credits of P760,500. The trial balance includes accounts for cash, accounts receivable, buildings, land, accounts payable, notes payable, unearned revenue, capital, withdrawals, service revenue, and various expenses. The trial balance acts as a check that the total debits equal the total credits after all financial transactions for the period are recorded in the general ledger.

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Rovelyn E. Forcadas
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820 views

Rovelyn E. Forcadas ABM-11 Activity #9-B

The trial balance provided is for Juan Masipag Recruitment Agency as of December 31, 2019 and shows total debits of P760,500 equal to total credits of P760,500. The trial balance includes accounts for cash, accounts receivable, buildings, land, accounts payable, notes payable, unearned revenue, capital, withdrawals, service revenue, and various expenses. The trial balance acts as a check that the total debits equal the total credits after all financial transactions for the period are recorded in the general ledger.

Uploaded by

Rovelyn E. Forcadas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Rovelyn E.

Forcadas ABM-11
Activity #15

Juan Masipag Recruitment Agency


Trial Balance
December 31, 2019

Debit Credit
101 Cash P 21,000
102 Accounts Receivable P 28,500
103 Building P 375,000
104 Land P 87,000
201 Accounts Payable P 26,400
202 Notes Payable P 135,000
203 Unearned Revenue P 86,500
301 Masipag, Capital P 254,700
302 Masipag, Withdrawals P 18,000
401 Service Revenue P 258,000
501 Salaries Expense P 75,000
502 Supplies Expense P 15,000
503 Rent Expense P 15,000
504 Utilities Expense P 30,000
505 Insurance Expense P 96,000
TOTAL P 760,500 P 760,500

Rovelyn E. Forcadas ABM-11

Activity #9-B
1. How are you going to differentiate General Ledger from a Subsidiary Ledger?
The general ledger is the principal set of accounts. It records all financial transactions. The
general ledger contains all debit and credit entries of transaction and entry for the same is done in
different account mainly, there are five types of accounts assets, liabilities, equity, income, and
expense. While a subsidiary ledger is the subset of the general ledger in the accounting. It is not
possible to record all transactions in the general ledger; hence transactions are recorded in subsidiary
ledger in a different account, and their total sum is reflected in the general ledger.

2. How are you going to differentiate General Journal from a General Ledger?
The general journal is the book of original entry where you can find the initial record of the
transactions of a firm while the ledger contains the total or balance of each account. It clearly shows
the debit and credit effects on specific accounts in every transaction. While the general ledger is
grouping of all accounts used in the preparation of financial statements. It is known as the controlling
account because it summarizes all the activities that have taken place as recorded in its subsidiary
ledger.

3. What are the different types of special journals?


The different types of special journals are cash receipts journal, cash disbursements
journal, sales journal or the sales on account journal, and purchase journal or the purchase on
account journal.

4. Why do companies use special journals?


Companies use special journals because special journals make it easier and more efficient to
find a specific type of transaction and speeds up the process of posting these transactions. Instead of
having just one general journal, companies group transactions of the same kind together and record
them in special journals rather than in the general journal. Companies use special journals to record
repetitive transactions that affect the same set of accounts and have a consistent description. Such
transactions can be documented on one line in a special journal.

5. What are the advantages of using a special journal?


The advantages of using a special journal are increase in efficiency, reduction in errors,
reduction in detailed recording, reduction in detailed posting, reduces the chances of fraud, better
internal control, time savings, savings in book-keeping expenses, and future references.

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