Joharra Marie G.

Suyat

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Perform key bookkeeping tasks
a single word describing the
word bookkeeping.
 BOOKKEEPING
It is the process of recording and organizing a
business's financial transactions.
Transactions include purchases, sales, receipts,
and payments by an individual person or an
organization.
Bookkeeping is usually performed by a
bookkeeper who records the day to day financial
transactions of a business.
• Two common bookkeeping system used by
business and other organizations are:
a. Single-entry bookkeeping system - uses only
income and expense accounts recorded primarily
in a revenue and expense journal. This is
adequate for many small business
 BOOKKEEPING SYSTEM
b.. Double-entry bookkeeping system.
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-At least two accounting entries are required to record

each financial transaction. These entries may occur in
asset, liability, equity, expense, or revenue accounts.

ASSETS = EIABIEITIES + OWNER’S EQUITY

 TYPES of ACCOUNTS

1.
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Assets
2. Liabilities
3. Owner's Equity
4.
Revenue/Income
5. Expenses
 1. Accounts under ASSETS
\ Assets are any resources owned by the business.
1. Current Assets are those which can be readily converted into cash or
consumed within one accounting period (1 year / 12 months)
a. Cash - refers to coins, paper bills, and any form of cheque which are
acceptable by the bank for deposit.
b. Accounts Receivable - collectible from a customer supported by Sales
Invoice.
c. Notes Receivable - a collectible evidenced by a promissory note issued
by customer.
d Prepaid Expenses - expenses pai\d in advance but not yet used such as
prepaid rent, Insurance, unused office supplies etc.
 1. Accounts under ASSETS
e. Accrued Income - are those which services or intent has been rendered
but not yet collected such as interests, rent, commissions etc.
f Inventories
g. Supplies - Supplies on hand at a point of time
 1. Accounts under ASSETS
2. Non-Current Assets
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a. Property, Plant & Equipment b Intangible assets - an asset that is

- are long term assets vital to business not physical in nature
operation and not easily converted to • Brand Name
cash • Copyrights
• Land • Patents
• Equipment • Licenses
• Service Vehicle • Trademark
• Building
• Furniture & Fixtures
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2. Accounts under Liabilities

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iilities are financial obligations of the business
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Current Liabilities are obligations that are payable within one
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accounting3 period. These would require the use of current assets as
payment
a Accounts Payable -obligation to suppliers/creditors.
b Notes Payable - also an obligation to suppliers but with evidence of a
promissory note.
c Dividend Payable - are the unpaid dividends
d Accrued expenses - expenses incurred but not yet paid such as Salaries
Payable, Interest payable, Utilities Payable, Insurance
payable, Rent payable etc.
e. Unearned Revenue - advance payment of customers
 2. Accounts under Liabilities
2. Non-Current Liabilities
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a. Mortgage Payable
■ a long term debt of a business for which the business has
pledge certain assets as security to the creditor
b Bonds Payable
■ are formal promises made under seal, to pay a specified
amount of money at a specified future date.
 3. Accounts under Owner’s Equity

Owner's Equity is increased by additional investments and

net income. This is decreased by withdrawals and net loss.
It is also the residual in assets after deducting the liabilities

a. Owner's Capita!

b. Withdrawa/s/Drawings
c. Net income (Profit)
d Retained Earnings, Common Stock, Preferred stock
 4. Accounts under Revenue/ Income

nue is the cash or other assets earned by

the company's operations and business activities

a Sales income b
interest income c.
Service Revenue
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5. Accounts under Expenses
Expenses are the cost of an asset used by the company in
its operations to produce revenues

a Rent Expense b
interest Expense etc.
 SUMMARY OF ACCOUNTS
ASSETS LIABILITIES OWNER'S EQUITY REVENUES EXPENSES

Cash Accounts Payable Owner’s Capital Sales Income Rent Expense

Accounts Receivable Notes Payable Withdrawals/Drawings Interest Income Utlities Expense
Notes Receivable Dividend Payable Retained Earnings Service Revenue Salaries Expense
Prepaid Expenses Accrued Expenses Net Income Insurance Expense
- Prepaid Rent - Salaries Payable Additional Investment etc.
- Prepaid Insurance - Interest Payable
Accrued Income - Utilities Payable
Inventories - Insurance Payable
Supplies - Rent Payable
Property, Plant & Equipment Unearned Revenue
- Land Mortgage Payable
- Equipment Bonds Payable
- Service Vehicle
- Building
- Furniture & Fixtures
1. Journalizing
2. Posting
3. Preparing the Trial
Balance
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Rules of Debit & Credit

. Accounting is based on double-entry system
which means the dual effect of a business
transaction is recorded. Each transaction affects at
least two (2) accounts. The total debits for a
transaction must be always equal to the total credits.
An account is debited when an amount is entered
on the left side of the account and credited if
recorded on the right side.
 Rules of Debit & Credit

Account Title
Debit Credit
D - Drawings/Withdrawals L - Liabilities

E - Expenses E - Equity/ Owner’s Equit

A - Assets R - Revenue/Income

DEA-LER
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 Rules of Debit & Credit

Drawings. Expenses & Assets

Account Title (PEA)
Debit Credit
s L - Liabilities • Increase in DEA are recorded in
D - Debit
E - Equity/ Owner’s Equit
side (Debit +)
Drawings/Wit • Decrease in DEA are recorded in
A - Assets R - Revenue/Income
hdrawa E -
Credit side (Credit -)
DEA-LER
Expenses
 Rules of Debit & Credit
Liabilities. Equity & Revenue (LER)
Account Title
Debit Credit • Increase in LER are recorded in
L- Credit side (Credit +)
D- Liabilities
E - Equity/ Owner’s Equit
• Decrease in LER are recorded in
Drawings/With
R - Revenue/Income Debit side (Debit -)
drawals E -
DEA-LER
Expenses A -

Assets
 Account Title
Lisa bought an equipment in
Debit Credit cash for Php 50,000
s L - Liabilities
D - 2
E - Equity/ Owner’s Equit Accounts involved:
Drawings/Wit
A - Assets R - Revenue/Income
1.
hdrawa E - Equipment
DEA-LER
Expenses 2. Cash
 Example of Debit & Credit

Account Title
Lisa purchased office
Debit Credit supplies on account
s L - Liabilities
D - 2
E - Equity/ Owner’s Equit
Accounts involved:
Drawings/Wit 1. Accounts Payable
A - Assets R - Revenue/Income
hdrawa E -
2. Office Supplies
DEA-LER
Expenses
 Example of Debit & Credit

Account Title
Lisa paid salaries of
Debit Credit employees
s L - Liabilities
D - 2 Accounts involved:
E - Equity/ Owner’s Equit
Drawings/Wit 1. Salaries Expense
A - Assets R - Revenue/Income
hdrawa E -
DEA-LER 2. Cash
Expenses
Slide Drawing
 Example of Debit & Credit

Account Title
Lisa paid salaries of
Debit Credit employees
s L - Liabilities
D - 2 Accounts involved:
E - Equity/ Owner’s Equit
Drawings/Wit 1. Salaries Expense
A - Assets R - Revenue/Income
hdrawa E -
DEA-LER 2. Cash
Expenses
 Example of Debit & Credit
Lisa invested a service vehicle
Account Title
Debit Credit
amounting to Php70,000
s L - Liabilities 2 Accounts involved:
D -
E - Equity/ Owner’s Equit
Drawings/Wit 1. Cash
A - Assets R - Revenue/Income
hdrawa E -
DEA-LER 2. Service Vehicle
Expenses
 Example of Debit & Credit
Lisa invested a service vehicle
Account Title
Debit Credit
amounting to Php70,000
s L - Liabilities 2 Accounts involved:
D -
E - Equity/ Owner’s Equit
Drawings/Wit 1. Cash
A - Assets R - Revenue/Income
hdrawa E -
DEA-LER 2. Service Vehicle
Expenses
 Step 1 * JourKatizing

The JOURNAL is a chronological record of the

entity's transactions. A journal entry shows all the
effects of a business transaction in terms of debit
and credit. The process of recording transaction is
called JOURNALIZING.
 The standard contents of the General Journal are as
follows:
1. Date - The year and the month are not rewritten for
every entry unless the year or month changes or a new
page is needed.
2. Account titles and explanation - The account to be
debited is entered at the extreme left of the first line while
the account to be credited is entered slightly indented on the
next line.
3..'.Posting Reference (P.R.) - This will be used when the
entries are posted, that is until the amounts are
4. Debit - The debit amount for each account is entered in
this column.
5. Credit - The credit amount for each account is entered in
this column.
Step 1 : Journalizing

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 Perform the 1 Bookkeeping Task st

ACTIVITY (Journalizing) by completing the journal

entry of each transaction.
Slide Drawing

Esterlina Gevera is a social entrepreneur from Makati City. She is into a lot
May-01
of interesting causes, Her fine taste is pertinent such she is considering an
authority in planning weddings. Gevera then decided to organize a
wedding consultancy and invested Php 250.000.
GENERAL JOURNAL

Date Description P.R Debit Credit

May 1
f 250,000

f 250,000

T(■ ret ■ )i'( 1 ■ iv/ner's investment to the 1

jusiness
 Perform the 1 Bookkeeping Task
st

ACTIVITY (Journalizing) by completing the journal

entry of each transaction.
Slide Drawing

She rented an office and paid 2 months rent in advance amounting to

May- 0 2
Php 3,000
GENERAL JOURNAL
Date Description P.R Debit fredlt

May 2
f 8.000

Cash

To record rent expense

 Perform the 1 Bookkeeping Task
st

ACTIVITY (Journalizing) by completing the journal

entry of each transaction.
Slide Drawing

Gevera issued a promissory note for a Php 210,000 loan from Metrobank.
May-03 This availment will be used for the acquisition of a service
vehicle.
GENERAL JOURNAL
Date Description RH Debit fredlt

May 3
f 210,000

Notes Payable f 210,000

To record owner's loan from Metro!rank

 Perform the 1 Bookkeeping Task
st

ACTIVITY (Journalizing) by completing the journal

entry of each transaction.
Slide Drawing
 Perform the 1 Bookkeeping Taskst

ACTIVITY (Journalizing) by completing the journal

$A| Image Upload

entry of each transaction.

Acquired office equipment from Mart One for Php50J000iJ paying
May-03
Php30jGGG in cash and the balance next month
GENERAL JOURNAL
Date Description RR Debit fredlt

May 8

f 30.000

Accounts Payable

To i ecord purchase of offlce equipment paid in i ash and Ijalance to 1 paid next month
 Perform the 1 Bookkeeping Task
st

ACTIVITY (Journalizing) by completing the journal

entry of each transaction. Image Upload

Coordinated and finalized simple bridal arrangement for three (31 couples
and collected fees of Php9t000 per couple. Services includes selecting
May-10
church and reception location, caterer, car service, flowers.
souvenirs and invitations.
GENERAL JOURNAL
Date Descriptlai P.R Debit fredlt

May 10 Cash

To rec ord serv ii e rev enue

 Perform the 1 Bookkeeping Task
st

ACTIVITY (Journalizing) by completing the journal

entry of each transaction. Image Upload

May-1 o Paid salaries amounting to PhplQhQQQ

GENERAL JOURNAL

Date Descriptlai RR Debit fredit

May 15

Cash

To record salar\ expense

 Page No. 1
GENERAL JOURNAL
Dale Description P.R Debit Credit
May 1 Cash P 250,000
Gcvcra, Capital P 250,000
Uu record owner's investment to the business

2 Prepaid Rent P 8,000

Cash P 8,000
lo record rent expense

3 Cash P 21 0,000
P 210,000
Answers to Notes Payable
l o record owner sloan from Metrobank

the activity. A Service Vehicle P 450,000

P 450,000
Cash
l o record purchase of service vehicle

8 Office Equipment P 50,000

Cash P 30, (X)0
Accounts Payable P 20,000
l o record purchase of office equipment paid in cash and
balance Io be paid next month

1 Cash P 27,000
0
Service Revenue P 27,000
l o record service revenue

IS Salary Expense P 10,000

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Have a great day ahead.