Journalizing guides and description to g11.pdf
- 1. JOURNALIZING Fundamentals of Accountancy, Business and Management 1
- 2. Scrambled Words Directions: Correct the scrambled words below. 1. (REGLDE) It is known as the book of final entry. LEDGER
- 3. Scrambled Words Directions: Correct the scrambled words below. 2. (HASC MENTSURSEDISB LONJARU) It used to record all transactions involving cash payments. CASH DISBURSEMENTS JOURNAL
- 4. Scrambled Words Directions: Correct the scrambled words below. 3. (HAPCSEUR LONJARU) It used to record all purchases of inventory on credit (or on account). PURCHASE JOURNAL
- 5. Scrambled Words Directions: Correct the scrambled words below. 4. (HASC TSEIPREC LONJARU) It used to record all transaction involving receipt or collection of cash that has been received. CASH RECEIPTS JOURNAL
- 6. Scrambled Words Directions: Correct the scrambled words below. 5. (LONJARU) It is called the book of original entry. JOURNAL
- 7. Scrambled Words Directions: Correct the scrambled words below. 6. (LESAS LONJARU) It used to record all sales transactions on credit (on account) SALES JOURNAL
- 8. Scrambled Words Directions: Correct the scrambled words below. 7. (ITPGSNO) It is the process of transferring information from the journal to the ledger. POSTING
- 9. Scrambled Words Directions: Correct the scrambled words below. 8. (RAGELNE REGLDE) It is a grouping of all accounts used in the preparation of financial statements. GENERAL LEDGER
- 10. Scrambled Words Directions: Correct the scrambled words below. 9. (RAGELNE LONJARU) It is the first place where data is recorded, and every page in the item features columns for dates, serial numbers, as well as debit or credit records. GENERAL JOURNAL
- 11. OBJECTIVE At the end of the lesson, learners will be able to: 1) Define journalizing. 2) Prepare journal entry. 3) Apply their knowledge of journalizing to analyze and evaluate real-world scenarios. 4) Reflect on the importance of honesty and accuracy in accounting, recognizing how these values play a crucial role in maintaining trust and integrity in financial reporting.
- 12. MOTIVATION JOURNAL DIARY JOURNAL a chronological record of business transactions it show all the effects of each transaction in terms of debit and credits.
- 13. JOURNALIZING ➢Process of recording a daily activities involving financial transactions of a business in a journal. ➢Double entry system ➢Requires reflection and careful analysis of each transaction to determine which accounts are affected and whether they should be debited or credited.
- 14. Types of Journal 1) SIMPLE ENTRY – only two accounts are affected, one debit account and one credit account. Date P.R. DEBIT CREDIT Feb 25, 2024 Accounts Payable 60,000.00 ₱ Cash in Bank 60,000.00 ₱ To record partial payment of accounts Particulars 2) COMPOUND ENTRY – three or more accounts are affected Date P.R. DEBIT CREDIT Aug 04, 2024 Rent Expense 5,000.00 ₱ Salaries 10,000.00 Cash in Bank 15,000.00 ₱ To record payment for various expenses Particulars
- 15. DEBIT • Left Side • Debere (Latin) • DR • VALUE RECEIVED • Asset, Expense, Drawings & Dividends • Right Side • Credere (Latin) • CR • VALUE PARTED WITH • Liabilities, Owner’s Equity & Revenue CREDIT and
- 16. How are business transactions analyzed? Business transactions are analyzed from the view point of the business. ▪ If the transaction is “Purchase” or “Buy” –business that is buying ▪ If the transaction pertains to “Selling” – business that sells ▪ If the transaction is about “Payment” – business that is paying ▪ If the transaction relates to “Collection” – business that collects ▪If the transaction relates is “Rendering Services” – business that renders service
- 17. How are business transactions analyzed? The value received or debit should first be determined before the value parted with or credit. Example #1: If I’ll give you an eraser and you will give me a piece of chalk in return as an exchange, can you determine the value received and the value parted with? Answer: Value Received – ERASER Value Parted With – PIECE OF CHALK Debit Credit – Eraser – Piece of Chalk
- 18. How are business transactions analyzed? The value received or debit should first be determined before the value parted with or credit. Example #2: If I’ll give you a ballpen and you will give me a piece of paper in return as an exchange, can you determine the value received and the value parted with? Answer: Value Received – Ballpen Value Parted With – Piece of Paper Debit – BALLPEN Credit – PIECE OF PAPER
- 19. How are business transactions analyzed? Example #3 Bought a car for cash, ₱650,000.00 The following questions are answered for your guide: 1. Who bought the car? Answer: the business 2. What is the value received? Answer: Car 3. What is the value parted with? Answer: Cash, Money 4. What is the peso equivalent? Answer: ₱650,000.00 Debit, value received - CAR Credit, value parted with - ₱650,000.00 Identifying Analyzing Measuring JOURNALIZING
- 20. How are business transactions analyzed? Example #4 Sold a car for cash, ₱750,000.00 The following questions are answered for your guide: 1. Who sold the car? Answer: the business 2. What is the value received? Answer: Cash, Money 3. What is the value parted with? Answer: Car 4. What is the peso equivalent? Answer: ₱750,000.00 Debit, value received – CASH ₱750,000.00 Credit, value parted with - CAR Identifying Analyzing Measuring JOURNALIZING
- 21. Normal balances of major accounts and contra-asset accounts NORMAL BALANCE INCREASE (+) DECREASE (-) ASSET DEBIT DEBIT CREDIT LIABILITIES CREDIT CREDIT DEBIT OWNER’S EQUITY: ▪ Owner’s Capital CREDIT CREDIT DEBIT ▪ Owner’s Drawing DEBIT DEBIT CREDIT REVENUES CREDIT CREDIT DEBIT EXPENSES DEBIT DEBIT CREDIT CONTRA-ASSET ▪ Doubtful Accounts CREDIT CREDIT DEBIT ▪ Accumulated Depreciations CREDIT CREDIT DEBIT
- 22. To recapitulate, the developed rules of debit and credit are again restated as follows: We debit to: We credit to: Rule 1: Increase in Asset Decrease in Asset Rule 2: Decrease in Liability Increase in Liability Rule 3: Decrease in Owner’s Equity Increase in Owner’s Equity Rule 4: Increase in Drawing Decrease in Drawing Temporary Accounts Rule 5: Decrease in Income or Increase in Income or Sales Revenue Sales Revenue Rule 6: Increase in Cost & Expenses Decrease in Cost & Expenses
- 23. Example #1 Purchase of laundry equipment for cash, ₱150,000.00 VALUE RECEIVED? laundry equipment VALUE PARTED WITH? cash debit credit Journal Entry P.R. DEBIT CREDIT Laundry Equipment 150,000.00 ₱ Cash 150,000.00 ₱ To record purchase laundry equipment for cash Particulars
- 24. Example #2 Rendered laundry services on account to various customers amounting to ₱80,000 Value received? Value parted with? ACCOUNTS RECEIVABLE SERVICE INCOME P.R. DEBIT CREDIT Accounts Receivable 80,000.00 ₱ Service Income 80,000.00 ₱ To record service rendered on credit Particulars Journal Entry
- 25. Performance Drill Molina’s Photo Service as of December 31: Dec. 1 – Mr. Paolo Molina engaged in a photo service business with capital composed of Cash ₱17,000; Building ₱50,000 and Land ₱20,000 Date P.R. DEBIT CREDIT Dec 01 Cash 17,000.00 ₱ Building 50,000.00 Land 20,000.00 P. Molina, Capital 87,000.00 ₱ To record initial investment of Paolo Molina Particulars
- 26. Performance Drill Dec. 12 – Office Equipment has been acquired at a cost of ₱3,400 Date P.R. DEBIT CREDIT Dec12 OfficeEquipment 3,400.00 ₱ Cash 3,400.00 ₱ Torecordofficeequipmentbought Particulars Journal Entry
- 27. Performance Drill Dec. 14 – Received ₱6,000 cash for services rendered. Date P.R. DEBIT CREDIT Dec14 Cash 6,000.00 ₱ ServiceIncome 6,000.00 ₱ Torecordservicerendered Particulars Journal Entry
- 28. Performance Drill Dec. 17 – P. Molina buys Furniture from Antik, Inc. for ₱5,000 on credit. Date P.R. DEBIT CREDIT Dec17 Furniture 5,000.00 ₱ Accounts Payable 5,000.00 ₱ Torecord furniturepurhcased on credit Particulars Journal Entry
- 29. Performance Drill Dec. 20 – Rendered services in the amount of ₱6,000 on credit. Date P.R. DEBIT CREDIT Dec20 AccountsReceivable 6,000.00 ₱ ServiceIncome 6,000.00 ₱ Torecordservicerenderedoncredit Particulars Journal Entry
- 30. Performance Drill Dec. 27 – Pays ₱ 5,000 cash to Antik, Inc. Date P.R. DEBIT CREDIT Dec27 AccountsPayable 5,000.00 ₱ Cash 5,000.00 ₱ TorecordcashpaymentofaccounttoAntikInc. Particulars
- 31. Performance Drill Dec. 29 – P. Molina withdrew ₱1,000 cash for his personal use. Date P.R. DEBIT CREDIT Dec29 P.Molina,Drawing 1,000.00 ₱ Cash 1,000.00 ₱ To recordP.Molinawithdrawal Particulars Journal Entry
- 32. Performance Drill Dec. 30 – Received collection from services rendered last December 20 amounting to ₱6,000. Date P.R. DEBIT CREDIT Dec30 Cash 6,000.00 ₱ AccountsReceivable 6,000.00 ₱ TorecordcollectionfromservicerenderedlastDec.20 Particulars Journal Entry
- 33. Performance Drill Dec. 31 – Paid Electric ₱1,000; Water ₱300 and Salaries ₱6,000. Date P.R. DEBIT CREDIT Dec31 Utilities 1,300.00 ₱ Salaries 6,000.00 Cash 7,300.00 ₱ TorecordcollectionfromservicerenderedlastDec.20 Particulars Journal Entry
- 34. RECAP & GENERALIZATION What is the importance of journalizing? ➢ To record all business transactions in a chronological order. What is the purpose of journal? ➢ A process of recording business transactions that ensures balance which maintain the record keeping precise.” What are the two values involved in a business transactions? ➢ VALUE RECEIVED, and VALUE PARTED WITH, whereas each values represent the debit and credit side recording of business transaction
- 35. APPLICATION Prepare the journal entry below: July 1 – Yasol Tesonaga started a delivery service called TEYA LOGISTICS, INC. She invested ₱800,000 cash and Cars amounting to ₱200,000. July 7 – Tesonaga bought tables and chairs from Orocan and paid ₱45,000 cash. July 18 – Purchased equipment on account from Faith Labista, Inc. for ₱55,000. July 24 – Tesonaga made cash withdrawal of ₱5,000 for personal use. July 30 – The account due to Faith Labista, Inc. paid in cash.
- 36. Assignment Journalize each transaction using appropriate account title. ASSET 100 REVENUE 400 Cash 101 SERVICE INCOME 401 Accounts Receivable 102 Supplies 103 EXPENSES 500 Equipment 104 SUPPLIES USED 501 Delivery Truck 105 RENT EXPENSE 502 REPAIRS AND MAINTENANCE 503 LIABILITIES 200 UTILITIES 504 Accounts Payable 201 TAXES AND LICENCES 505 SALARIES EXPENSES 506 OWNER'S EQUITY 300 CARLOS AQUINO, CAPITAL 301 CARLOS AQUINO, DRAWING 302 CA AUTO SHOP CHART OF ACCOUNT
- 37. Assignment March 1 Carlos Aquino opened auto shop business called the “CA Auto Shop” with capital composed of Cash ₱20,000; Auto Shop Supplies ₱4,000; Wheel Alignment Machine ₱80,000. March 2 - Paid business tax to the City Treasurer, ₱1,600. March 4 - Purchased a delivery truck from the Northern Motors for ₱120,000 on credit. March 5 - Paid rent of the building for the month, ₱2,000. March 6 - Received ₱6,000 cash for car repair to various customers. March 8 - Sent charge bill, ₱4,000, for auto repair on credit to the Lohas Hotel.
- 38. Assignment March 10 - Bought supplies on credit from Toyota Supply Store, ₱3,000. March 15 - Sent charge bills for service rendered on credit to Mug Shop ₱4,000; Sinai Hotel ₱5,000 and paid two weeks’ salary of the truck driver ₱1,500. March 20 - Received cash as collections on credit from Lohas Hotel ₱2,000; Mug Shop ₱1,600 and Sinai Hotel ₱2,800 March 25 - Received ₱4,400 cash for overhaul repair to various customers. March 26 - ₱Paid 1,800 to Toyota Supply Store in partial payment of the debt owing to it. Carlos Morales withdrew ₱1,000 cash for his personal use.
- 39. Assignment March 27 - Paid ₱1,400 to repairman for repair service on the wheel alignment machine. March 31 - Paid in cash the following: Truck driver’s two weeks’ salary ₱1,500; Auto Shop Cashier and Sales Lady salaries ₱4,500; Water and electric bill ₱1,700; March 31 - Repair cars to the following: Cash customers ₱2,600; Lohas Hotel (on credit) ₱1,900; Sinai Hotel (on credit) ₱2,400 An actual count showed that of the auto shop supplies invested and bought, only ₱2,000 worth of supplies remain unused, while the ₱5,000 worth of supplies were used during the month.
- 40. Assignment March 1 Carlos Aquino opened auto shop business called the “CA Auto Shop” with capital composed of Cash ₱20,000; Auto Shop Supplies ₱4,000; Wheel Alignment Machine ₱80,000. March 2 - Paid business tax to the City Treasurer, ₱1,600. March 4 - Purchased a delivery truck from the Northern Motors for ₱120,000 on credit. March 5 - Paid rent of the building for the month, ₱2,000. March 6 - Received ₱6,000 cash for car repair to various customers. March 8 - Sent charge bill, ₱4,000, for auto repair on credit to the Lohas Hotel. March 10 - Bought supplies on credit from Toyota Supply Store, ₱3,000. March 15 - Sent charge bills for service rendered on credit to Mug Shop ₱4,000; Sinai Hotel ₱5,000 and paid two weeks’ salary of the truck driver ₱1,500. March 20 - Received cash as collections on credit from Lohas Hotel ₱2,000; Mug Shop ₱1,600 and Sinai Hotel ₱2,800 March 25 - Received ₱4,400 cash for overhaul repair to various customers. March 26 - ₱Paid 1,800 to Toyota Supply Store in partial payment of the debt owing to it. Carlos Morales withdrew ₱1,000 cash for his personal use. March 27 - Paid ₱1,400 to repairman for repair service on the wheel alignment machine. March 31 - Paid in cash the following: Truck driver’s two weeks’ salary ₱1,500; Auto Shop Cashier and Sales Lady salaries ₱4,500; Water and electric bill ₱1,700; March 31 - Repair cars to the following: Cash customers ₱2,600; Lohas Hotel (on credit) ₱1,900; Sinai Hotel (on credit) ₱2,400 An actual count showed that of the auto shop supplies invested and bought, only ₱2,000 worth of supplies remain unused, while the ₱5,000 worth of supplies were used during the month.
- 41. BOOK OF ACCOUNTS Using the terms you learned in the module, fill in the blank boxes accordingly. JOURNAL LEDGER General Journal Special Journal General Ledger Special Ledger