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Introduction To Double Entry Bookkeeping

The document discusses double-entry bookkeeping and the accounting cycle. It introduces the 10 steps of the accounting cycle including journalizing transactions, posting to accounts, preparing an unadjusted trial balance, making adjusting entries, preparing an adjusted trial balance, and producing financial statements. It also covers debits and credits, the normal balances of different types of accounts, and provides examples of analyzing and journalizing transactions.

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Jea May
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Download as PDF, TXT or read online on Scribd
75 views

Introduction To Double Entry Bookkeeping

The document discusses double-entry bookkeeping and the accounting cycle. It introduces the 10 steps of the accounting cycle including journalizing transactions, posting to accounts, preparing an unadjusted trial balance, making adjusting entries, preparing an adjusted trial balance, and producing financial statements. It also covers debits and credits, the normal balances of different types of accounts, and provides examples of analyzing and journalizing transactions.

Uploaded by

Jea May
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Double-Entry

Bookkeeping
Introduction
Contents of this lecture are as follows:
• Introduction to the 10-step accounting cycle
• Debits and Credits
• Normal balances of real and nominal accounts
• Journal Entries and Trial Balance
“Summary of
arithmetic, geometry,
proportions and
proportionality.”
Analyze

Accounting Reversing
Transactions

Journalizing

Cycle
Entries

Post-Closing
Posting
Trial Balance

Unadjusted
Closing Entries
Trial Balance

Financial Adjusting
Statements Entries
Adjusted Trial
Balance
Debits & Credits

Debit (Debere or Dr.) - is an accounting entry


that either increases an asset or expense
account, or decreases a liability or equity
account.
Credit (Credere or Cr.) - is an accounting
entry that either increases a liability or equity
account, or decreases an asset or expense
account. It is positioned to the right in an
accounting entry.
Real (Permanent) & Nominal (Temporary)
Accounts
Temporary accounts are company accounts whose balances are
not carried over from one accounting period to another, but are
closed, or transferred, to a permanent account.
(All revenue, expense, and drawing accounts)

Permanent accounts are found on the balance sheet and are


categorized as asset, liability, and owner's equity accounts.
(All asset, liability, and equity accounts)
Normal Balances of Accounts
Analysis of Transactions & Journal Entries
Jean Java Review School entered into the ff. transactions in October
20xx:
1 Java made addt’l investments of P5,000,000 in the business.
2 Bought insurance for one year, P145,000
3 Received a bill for advertising from SouthMin News, P32,000
4 Paid rent for the month P90,000
10 Received a bill for equipment repair from AutoComp and paid, P5,000
12 Received and paid telephone bill, P1,500
15 Paid Salaries of the office assistants, P50,000
17 Paid accounts to SouthMin News.
18 Java withdrew P10,000 for personal use
20 Bought photocopier on account from ABC Office Machine Co., P45,000
21 Paid for flower arrangements for front office, P800
22 Paid Gas and Oil from Mindanao Oil Company, P12,000
1 Java made addt’l investments of P5,000,000 in the business.

2 Bought insurance for one year, P145,000.

3 Received a bill for advertising from SouthMin News, P32,000.


4 Paid rent for the month P90,000

10 Received a bill for equipment repair from AutoComp and paid,


P5,000

12 Received and paid telephone bill, P1,500


15 Paid Salaries of the office assistants, P50,000.

17 Paid accounts to SouthMin News.

18 Java withdrew P10,000 for personal use.


20 Bought photocopier on account from ABC Office Machine Co.,
P45,000

21 Paid for flower arrangements for front office, P800

22 Paid Gas and Oil from Mindanao Oil Company, P12,000


Posting to the General Ledger (T-Accounts)
Trial Balance (Unadjusted)
Coming soon…
Questions & answers

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