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GHIE ABM Steps in Journalizing

The journal entries record Mr. Dalisay's initial investment, the shop's purchase of sewing machines on account and for cash, payments on the account and for rent, withdrawals by the owner, and revenue received.

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Raizel chris Vargas
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107 views

GHIE ABM Steps in Journalizing

The journal entries record Mr. Dalisay's initial investment, the shop's purchase of sewing machines on account and for cash, payments on the account and for rent, withdrawals by the owner, and revenue received.

Uploaded by

Raizel chris Vargas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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STEPS IN

JOURNALIZING
TRANSACTION
MARGIE B. ANDAYA MBM
Master Teacher II
MARGIE BALAGOSA-ANDAYA MBM
Master Teacher II/ABM Coordinator
1

2
TYPES OF JOURNALS

1. GENERAL JOURNAL
- It is a book of original entries with the following columns:
a. DATE- which indicates the year, months and the day of the transactions
b. PARTICULARS column where the accounts debited and the accounts
credited and EXPLANATION of the journal are entered
c. FOLIO, the column for posting reference, and
d. TWO MONEY Columns for DEBIT and CREDIT.

2.SPECIAL JOURNAL – These are the purchases journal, sales journal, cash
receipts journal and cash payment Journals.
ELEMENTS OF A JOURNAL ENTRY

- In the double -entry bookkeeping system, for every transaction recorded, there
is always a debit and a credit which maybe assets, liability, an owner’s equity, a
revenue and an expense. The entry maybe a simple or compound entry
depending on the effects of the transactions on the elements of financial
statements.

- A simple journal entry- when there is only account debited and


credited. That is, when the two-fold effects of a transaction affect
only one account each.
ELEMENTS OF A JOURNAL ENTRY

- If two or more accounts debited /or credited, then


we have a compound entry. That is when the two-
fold effects of a transaction affect two or more
account each.
STEPS IN JOURNALIZING TRANSACTION

- After a thorough analysis of a


transaction and events and after
determining its dual effects on the
elements of balance sheet and
income statement, we are now
ready to JOURNALIZE it. The
following are the steps in preparing
journal entries using a GENERAL
JOURNAL (2 column).
STEPS IN JOURNALIZING TRANSACTION

1 2 3 4 5

Label the first column as the


DATE (1), next column as the
PARTICULARS (2), next column as
the FOLIO or posting reference
(3), and the last two columns as
DEBIT (4) and CREDIT (5).
 
STEPS IN JOURNALIZING TRANSACTION

Enter first the


2020 PARTICULARS PR DEBIT CREDIT
YEAR, then the Jan 3.
MONTH and the
DAY of the
transaction at the
date column.
 
STEPS IN JOURNALIZING TRANSACTION

Record first the 2020 PARTICULARS PR DEBIT CREDIT

account to be debited Jan 3. Cash P 50000

at the extreme left of


the particulars column
and the amount at the
money-debit column.
STEPS IN JOURNALIZING TRANSACTION

Next is to record the 2020


Cash
PARTICULARS PR DEBIT CREDIT
Jan 3. P 50000
account to be credited Ben Cruz , Capital P 50000

with an indention of
one-half inch at the
particulars column and
the amount at the
money-credit column
STEPS IN JOURNALIZING TRANSACTION

2020 PARTICULARS PR DEBIT CREDIT


Jan 3. Cash P 50000
Ben Cruz , Capital P 50000
Prepare a brief To record initial investment

explanation of the
journal entries made at
the particulars column
STEPS IN JOURNALIZING TRANSACTION

Before another 2020


Cash
PARTICULARS PR DEBIT CREDIT
Jan 3. P 50000
entry is made, Ben Cruz , Capital
To record initial investment
P 50000

leave one line after 8

the explanation of
the preceeding
entry.
 
STEPS IN JOURNALIZING TRANSACTION

Write the peso sign 2020 PARTICULARS PR DEBIT CREDIT


before the first line Jan 3. Cash
Ben Cruz , Capital
P 50000
P 50000
amount in the 8
To record initial investment

money columns,
debit and credit of
the general journal.
It should be done
for every page of
the journal. It is
assumed that all
subsequent entries
are all in pesos.
STEPS IN JOURNALIZING TRANSACTION

In recording
2020 PARTICULARS PR DEBIT CREDIT
amount, never Jan 3. Cash P 50000
Ben Cruz , Capital P 50000
use commas and 8
To record initial investment

periods. The
money column
of the journal
provides specific
place for ones,
tens, hundred,
thousands, etc.,
entries.
LET’S APPLY WHAT
YOU’VE LEARNED
MAKE A JOURNAL ENTRY of the following business
transactions;

ON JANUARY 1, 2021, MR KG DALISAY MADE AN INITIAL


INVESTMENT OF P 50,000 CASH IN DALISAY TAILORING SHOP.

ON JANUARY 3,2021, DALISAY TAILORING SHOP ACQUIRED


SEWING MACHINE WORTH P10,000 ON ACCOUNT FROM
COMPANY KC.
ON JANUARY 10 ,2021, DALISAY TAILORING SHOP PAID ONE-
HALF OF ITS JANUARY 3,2017 ACCOUNT WITH KC
COMPANY.

ON JANUARY 15 ,2021, MR.DALISAY MADE A CASH


WITHDRAWALS AMOUNTING TO P500 FROM THE BUSINESS.

ON JANUARY 15 ,2021, MR.DALISAY MADE A CASH


WITHDRAWALS AMOUNTING TO P500 FROM THE BUSINESS.
ON JANUARY 16 ,2021, KG TAILORING SHOP ACQUIRED
ADDITIONAL SEWING MACHINE WORTH P10,000 FOR CASH.

ON JANUARY 20 ,2021, KG TAILORING SHOP ISSUED A


PROMISSORY NOTE TO KC COMPANY AMOUNTING TO P2,000
FOR THE MATURING PORTION OF ITS ACCOUNT WITH THE
COMPANY

ON JANUARY 20 ,2021, KG TAILORING SHOP PAID RENT FOR


THE MONTH AMOUNTING TO P1,000.
ON JANUARY 22 ,2021, KG TAILORING SHOP RECEIVED
P3,000CASH FOR SERVICES RENDERED DURING THE
WEEK.

CONGRATULATIONS!

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