11

ENTREPRENEURSHIP
Module 6
SIMPLE BOOKKEEPING

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ENTREPRENEURSHIP – Grade 11

Module 6: Simple Bookkeeping

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work of the Government of the Philippines. However, prior approval of the government
agency or office wherein the work is created shall be necessary for exploitation of such
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the payment of royalties.

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names,
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Every effort has been exerted to locate and seek permission to use these materials
from their respective copyright owners. The publisher and authors do not represent
nor claim ownership over them.

Regional Director: Gilbert T. Sadsad

Assistant Regional Director: Jessie L. Amin

Development Team of the Module

Writer: Quennie C. Salting

Editor: Cynthia C. Competente

Reviewers: Edwin L. Mias

Christie L. Alvarez

Illustrator/ Layout Artist: Jaypee M. Ignacio

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I. Title of Material/Introduction:

SIMPLE BOOKKEEPING

This module covers the knowledge, skills, and attitudes in simple

bookkeeping procedures, identify the books of accounts used in business and
describe the posting process.

II. Objectives:

At the end of the lesson the learner shall be able to perform key
bookkeeping tasks.

III. Vocabulary List:

Journal – is a chronological record of events or business transactions showing

all the effects of each transaction in terms of debits and credits. It is
called the book of original entry.

Journalizing – the process of recording a transaction in the journal after it has

been recognized and measured.

Bookkeeping – recording of business transactions in the books of the

business.

Transaction – events where there are exchanges of values that are

measurable in one common denominator.

Classifying – grouping of similar business transactions and events.

Ledger – the book of final entry. An accounting tool that accumulates all the
necessary information prior to the preparation of the financial
statements.

Footing – the process of adding the debit and the credit money columns of the
ledger and finding their balances.

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 Trial Balance – the listing of the debit and credit balances of accounts from the
general ledger.

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IV. Pre-Test:

Multiple Choice. Select the letter of your answer.

1. A date column in the general journal shows the date of the occurrence
of the transaction. How will you write the year in the general journal?
a. The year must be written in every page.
b. The year must be written on the first page of the general
journal unless they have changed, or a new page is
needed.
c. The year will not be written because everybody knows
it.
d. The year must be written in every journal entry.

2. In recording business transactions, account titles are being used to

provide the description of the type and nature of the transaction.
These account titles have five categories and known as the
accounting elements. Which of the following is the accounting
elements of accounting?
a. Land, Accounts Payable, Capital Stocks, Service Fee,
Rent Expense
b. Cash on Bank, Loans Payable, Preferred Stocks,
Professional Fee, Supplies Expense
c. Assets, Liabilities, Capital, Income, Expense
d. House & Lot, Mortgage Payable, Common Stocks,
Subscription Fee, Salaries Expense

3. Business documents support the existence of a business transactions

that is recorded in the two-column journal. Which of the following
business documents indicates payment or receipt of cash?
a. Purchase Order
b. Invoice
c. Official Receipt
d. Delivery Receipt

4. Bookkeeping is the recording of business transactions in the books of

the business. Which of the following is NOT a fundamental concept
in bookkeeping?
a. Support all transactions with business documents.
b. Record the transactions using any available paper in
your business premises.
c. Use the proper account title.
d. Observe guidelines when using the two-column journal.

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 5. There are procedures that must be observed when using a two-
column general journal. Which of the following procedures in writing
the debit and credit account titles is correct?
a. The debit account title must be written first.
b. The credit account can be written in line with the debit
account.
c. Abbreviation of the account title is allowed.
d. There must be a blank space in recording the
succeeding transactions.

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V. Learning Activities:

1. Read the Definition and Functions of Bookkeeping and Guidelines in

Using the General Journal and Account Titles to be used. Memorize the
definition of the vocabulary list given. Familiarity of the guidelines in
using the general journal and also the account titles to be used in
preparing the journal is very important to avoid misconception of terms.

2. Read the Types of Business Documents. Identify the different business

documents that supports a business transaction.

3. Read the discussion on Simple Bookkeeping. Remember the

fundamental concepts in bookkeeping. Understand the transactions
carefully and analyze its result to the accounting elements.

4. Read the discussion on Ledger and familiarize its parts. Memorize the
procedures in posting the journal entry to the ledger. Make sure that you
have fully understand the concept of the ledger to be able to commit
errors in posting.

5. Read the discussion on Trial Balance and memorize its parts. Analyze
very carefully the account titles with its debit and credit balances. You
must fully understand its differences with each other to avoid
misconception that will result to error in the preparation of the trial
balance.

NATURE AND CONCEPT

A business conducts various activities from the day of its assumption until the
end. The number of transactions vary from business to business. A sari-sari store
may have few business transactions in a day while a supermarket and department
store have a bulk of transaction. May I ask you: Do you still remember your personal
transaction for the last 2 years? You will answer yes for some important events and
no for those not so important happenings in your life. However, if you have a diary,
you can be able to track all of those on any previous date.

Bookkeeping refers to the recording of business transactions in the books of

the business. It is based on the premise that business transactions must be properly
recorded. Only business transactions that are quantifiable will be recognized. It is
considered quantifiable when all of the accounting elements, such as assets, liabilities,
capital, income, and expenses are affected.

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 The term transaction refers to events where there are exchanges of values that
are measurable in one common denominator, in our country it is the Philippine peso.
In this case, a business transaction that is not quantifiable and measurable in
monetary value will not be recognized in accounting and is not recorded in the books
of the business.

In this module, you will learn how to do simple bookkeeping that will help you
in your future entrepreneurial ventures. Do not worry because only simple
transactions will be discussed here. Complicated business transactions are discussed
in higher accounting.

Bookkeeping involves the chronological writing or recording of business

transactions and events in the books of accounts for the first time. Chronological
recording means that you will record the transactions as they occur. For example,
transactions on January 1 will be recorded first and transactions on January 2 will
follow, so on and so forth.

Business transactions are recorded in the books of accounts and not on an

ordinary paper, these are the journal and the ledger. Journal is the book of original
entry, while ledger is the book of final entry. In this case, business transactions are
first recorded in the journal and to be transferred to the ledger.

JOURNAL

A journal is the book of original entry. All business transactions are recorded
here chronologically. Two-column journals is used and it is available mostly at office
supplies store, it is in a form of loose leaf or columnar pad.

A sample format of a two-column journal.

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 Following are the procedures that must be follow in using the two-column
general journal.

1. Labeling the journal

a. On the top of the first page, write at the center the caption “General
Journal.” In this simple bookkeeping, the journal is labeled as such
since it is used to record all types of business transactions.
b. On the rightmost side, write the page number of the journal.
c. On the succeeding pages, write only the number of the journal.

2. Writing the date

a. Fill up the data for the year, month, and day.
b. Write the year and the month on every page.
c. If there are two or more transactions in one day, do not repeat the
day.

3. Writing the debit and credit account titles.

a. The debit account title must be written first. The account must be
written adjacent to the line that divides the date column and the
account title column. This means that there is no space between the
line and the first letter of the debit account title.
b. The credit account title must be indented from the debit account title.
c. Abbreviation of the account title is not allowed.
d. The explanation must be indented from the credit account title.
e. There must be no blank space in recording the succeeding
transactions.

4. Writing the amount

a. The debit amount must be written in the first money column in line
with the debit account title.
b. The credit amount must be placed in the second money column in
line with the credit account title.
c. No peso sign must be placed in the debit and credit money columns,
It is understood that all amounts written in these columns are
expressed in terms of pesos.
d. If there is no centavo, a dash sign is usually placed in the centavo
column instead of writing the two zeros.
e. No comma and period are used to indicate thousand pesos and
cents, respectively. The lines in the money columns are usually
colored to indicate specific meanings.
f. The amounts in the money columns are not summed up.

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Account Titles
The recording of business transactions involves the use of account titles. The
account title provides the description of the type and nature of the business
transactions. The account titles are grouped into five categories technically referred
to as the accounting elements. The five categories of accounts or elements of
accounting are as follows:

1. Assets
2. Liabilities
3. Capital
4. Income
5. Expense

Asset Account Titles

The following are the typical account titles that are normally used to record
business transactions of small businesses:

1. Cash – It describes money, either in paper or in coins.

2. Accounts Receivable – It describes collectibles from customers who made

sales transactions on credit.

3. Notes Receivable – It describes collectibles that are supported with

promissory notes.

4. Supplies on hand – It describes unused office or store supplies.

5. Unused factory supplies – It describes unused office or store supplies.

6. Inventory – It describes unsold goods that are intended for sale. The types
of inventories for manufacturing business are as follows:

a. Raw materials inventory – It refers to unutilized materials in the

production of goods.

b. Work-in-process inventory – It refers to unfinished goods at the end

of the period.

c. Finished goods – It refers to unsold finished goods.

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 7. Equipment – It describes tools and equipment like calculators, computers,
or any equipment directly related to the production of goods.

8. Furniture and fixtures – It describe assets like chairs, tables, and display
cases.

Liability Account Titles

The account titles that are commonly used in the recordkeeping of the
transactions of small businesses include the following:

1. Accounts payable – It describes the financial obligations arising from goods

purchased or services received.

2. Notes payable – It describes the financial obligations supported with notes.

3. Utilities payable – It describes the unpaid obligations on light and water

consumptions.

4. Salaries payable – It describes the unpaid salaries of the workers.

Capital Account Titles

The capital account titles are as follows:

1. Capital – It describes the original and additional investment of the owner.

2. Drawing – It describes the temporary withdrawal of capacity by the owner.

Income Account Titles

The income account titles that may be used to record the income or revenue of
small businesses are as follows:

1. Service income – It describes general services rendered.

2. Rental income – It describes the income arising from lease or rent of

property.

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 3. Sales – It describes the sale of goods or products to the consumers.

Expense Account Titles

In recording the business transactions of a small entrepreneurial venture, the

following expense account titles are commonly used:

1. Salaries and Wages – expenses on payment of salaries.

2. Store Supplies Expense – expenses on store supplies used.

3. Taxes and Licenses – necessary expenses paid taxes, permits, fees and
licenses.

4. Utilities Expense – expenses on consumed light and water.

5. Travelling Expense – expenses on transportation of personnel.

BUSINESS DOCUMENTS

The start of the bookkeeping process begins with accounting source documents
– the paperwork. In most cases, when a business transaction is carried out a
document is produced which contains the details of each transaction.

These documents are the origin of the information that is recorded into the
accounting books. Every document has a few things in common: the transaction date,
amount, name of both businesses/people, reference number and description of the
transaction.

The most common types of business documents that support transactions and
events are as follows:

1. Purchase Order – It is an official business document issued by the buyer to

the seller of goods.

2. Invoice – It is a commercial business document issued by the seller to the

buyer.

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 3. Official Receipt – It is a commercial document that indicates payment or
receipt of cash.

4. Delivery Receipt – It is a document that serves as an evidence that the

goods or services are received.

5. Receiving Report – It is a document used within the business upon receipt

of the goods shipped by the courier or forwarder.

6. Check – It is a document that orders a payment of money from the current

account maintained in the bank.

7. Voucher – It is an internal business document that authorizes the incurrence

or payment of obligations.

Illustrations on Simple Bookkeeping

The Double-Entry System of Recording Transactions

Recording transactions in accounting is based on the double-entry system. The

transaction has a dual effect which means that every transaction affects at least two
accounts. For every debit, there is a corresponding credit. The total amount of the
accounts debited must equal the total amount of the accounts credited.

This is the concept of the accounting equation that applies to all types of
transactions and will be represented as follows:

Value received (debit) = Value parted with (credit)

Illustrative Example on Simple Bookkeeping

Let us try to analyze each transaction and identify the value received (debit)
and value parted with. After that a journal entry will follow.

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 1. Initial investment.

Transaction Value Received Value Parted

With
December 1 Cash amounting to In exchange
Php25,000, 3 units Flora Dalisay has
of car wash the right to
Flora Dalisay opened her small car wash
machine – 54,000 ownership in the
shop with a registered trade name at the
and 3 units of business upon
DTI as Ang Probinsyana Car Wash Center.
vacuum cleaner – investing, totaling
The business was registered as a Non-
4,500. the amount of
VAT taxpayer. Lola Flora rented a space
Php83,500 as
for the Laundry Center at ABS-CBN
investment.
Compound, Mother Ignacia St., Quezon
City. The monthly rental rate is Php3,000.

The initial investment of Lola Flora are as

follows:

Cash
Php25,000

3 Units of Car Wash machine

54,000

3 Units of Vacuum Cleaner

4,500

The journal entry for this transaction will appear as follows:

2016 Particulars PR Debit Credit

Dec 1 Cash 2 5 0 0 0 −
Car Wash Equipment 5 8 5 0 0 −
Flora Dalisay,
Capital 8 3 5 0 0 −
To record
initial investment

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 The journal entry above is an example of a compound entry having two debit
accounts. If there is only one debit and one credit, the entry is called a simple journal
entry. As you notice, an account title of Laundry equipment was used for the washing
machine and electric iron. An account tile of Flora Dalisay, Capital was used for the
capital account. It is a usual practice using the name of the owner as the account title
for capital. In this transaction, the accounting equation is balance having equal debit
and credit.

In writing the debit value, the account title is written almost touching the line
separating the date and the Particulars columns. The credit value is indented and
written on the next line following the debit value.

2. Purchase of supplies and thereby paying cash.

Value Parted
Transaction Value Received
With
December 2 A supply of Cash was paid
Bought supplies such as detergents and detergent and for the supplies
other materials needed for car wash other materials amounting to
maintenance and related items from amounting to Php2,600
Alyanna Merchandising as reflected in the Php2,600
cash invoice #1234 amounting to
Php2,600.

The journal entry for this transaction will be:

2016 Particulars PR Debit Credit

Car Wash Supplies
Dec 2 Expense 2 6 0 0 −
Cash 2 6 0 0 −
To record
purchase
of detergents

Car Wash Supplies Expense was used as account title for the purchase of
supplies. The purchase was treated as direct expense. When recording the second

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transaction, there must be no blank space after the first transaction. Providing blank
spaces in between transaction is not allowed in bookkeeping for internal control.

The journal entry will appear as follows:

2016 Particulars PR Debit Credit

Dec 1 Cash 2 5 0 0 0 −
Car Wash Equipment 5 8 5 0 0 −
Flora Dalisay,
Capital 8 3 5 0 0 −
To record initial
investment
Car Wash Supplies
2 Expense 2 6 0 0 −
Cash 2 6 0 0 −
To record
purchase
of supplies.

As you observed the month is no longer written on the next entry and no blank
space in between the transactions. A brief explanation describes the nature of the
transaction.

The previous journal entries will not be presented in order to highlight the
present business transaction.

3. Services rendered to cash customers.

Value Parted
Transaction Value Received
With
December 5 Cash amounting to Services
Rendered various car wash services to Php8,400 was rendered to walk-
walk-in customers and issued several received from in customers
official receipts amounting to Php8,400. walk-in customers amounting to
Php8,400. An
account title Car
Wash Service

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 Income was
used.

Journal entry will appear as follows:

2016 Particulars PR Debit Credit

Dec 5 Cash 8 4 0 0 −
Car Wash Service
Income 8 4 0 0 −
To record
laundry
services

4. Payment of rent.

Transaction Value Received Value Parted

With
December 7 The right to use Cash payment of
Paid the rent for the month of December, the space of the Php5,000 for the
2019; the official receipt No. 815 issued by building is the use of the
the owner of the building showed value received. A building for the
Php5,000. Rent expense car wash center.
account was used
to record the
transaction
amounting to
Php5,000

To record the transaction, the journal entry will be:

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 2016 Particulars PR Debit Credit
Dec Rent Expense 5 0 0 0 −
Cash 5 0 0 0 −
To record
payment
of rent

5. Services rendered to charge customers.

Transaction Value Received Value Parted

With
December 10 The right to collect Car Wash
Issued Charge Invoice No. 0001 in the from the customer services
amount of Php43,000 to Ms. Lily Hotel for the amount of rendered to
various car wash services provided to their Php43,000 since customers
shuttle service. she is a charge amounting to
customer. Account Php43,000,
Receivable is the thereby resulting
account title used. to an income.

Journal entry for this transaction will be as follows:

2016 Particulars PR Debit Credit

Accounts
Dec 10 Receivable 4 3 0 0 0 −
Car Wash
Service Income 4 3 0 0 0 −
To record
services
on account

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 6. Payment of salary.

Transaction Value Received Value Parted

With
December 15 The services Cash was paid
Paid the salaries of the car wash workers rendered by for the services
for the first half of December 2019; workers is the rendered of the
Voucher No. 012, as supported by the value received workers
payroll, showed total salaries of amounted to amounting to
Php10,000. Php10,000. Php10,000

To record the transaction, the journal entry will appear as follows:

2016 Particulars PR Debit Credit

Dec 15 Salaries and Wages 1 0 0 0 0 −
Cash 1 0 0 0 0 −
To record
payment
of salaries and
wages

7. Collection to charge customer.

Transaction Value Received Value Parted

With
December 21 Cash was received Cancellation of
Collected the account of Ms. Lily Hotel; upon collection to the right to collect
issued Official Receipt No. 081578 for the Ms. Lily Hotel from Ms. Lily
full payment received from Ms. Lily Hotel. amounting to Hotel amounting
Php43,000. This to Php43,000
is in connection
with transaction
#5.

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 Journal entry will appear as follows:

2016 Particulars PR Debit Credit

Dec 21 Cash 4 3 0 0 0 −
Accounts
Receivable 4 3 0 0 0 −
To record
collection
of account

8. Payment of utilities and business permit and licenses.

Transaction Value Received Value Parted

With
December 23 Benefits provided Cash payment
Paid the following invoices as supported by from the usage of for the benefits
various official receipts issued for the electricity and the received
payment made: right to operate the amounting to
business by Php9,500
Electric bill
paying the
Php5,500
necessary
Business permit and licenses business permit
4,000 and licenses.

Journal entry will appear as follows:

2016 Particulars PR Debit Credit

Dec 23 Utilities Expense 5 5 0 0 −
Taxes and Licenses 4 0 0 0 −
Cash 9 5 0 0 −
To record
payment
of expenses

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 9. Services rendered to both cash and charge customer

Transaction Value Received Value Parted

With
December 27 Cash payment of Services
Rendered various laundry services to the cash customer rendered both to
following: amounting to cash and charge
Php38,000 and customer
Walk-in customers – Official receipts
the right to collect amounting to
Php38,000
from charge Php108,000 and
Bubbles Bed & Breakfast – customer realized as
Charge Invoice, 30-day received amounting to income of the
42,000 70,000 business

Lolo Delfin Resort –

Charge invoice; received
28,000

Journal entry will appear as follows:

2016 Particulars PR Debit Credit

Dec 27 Cash 3 8 0 0 0 −
Accounts
Receivable 7 0 0 0 0 −
Car Wash
Service Income 1 0 8 0 0 0 −
To record car
wash
services

The above journal entry is a compound entry since it has two debit accounts.

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 10. Purchase of furniture and laundry supplies on account.

Transaction Value Received Value Parted

With
December 28 Office furniture Obligation to pay
Bought the following from various amounting to since the
suppliers: Php39,000 and purchase was
Car Wash made on credit
Office furniture – Charge invoice # 4321
Supplies amounting to
Php39,000
amounting to Php56,000
Car Wash Supplies – Php17,000 evidenced by the
Charge Invoice # 5678 charge invoice
17,000

Journal entry for this transaction will appear as follows:

2016 Particulars PR Debit Credit

Dec 28 Office Furniture 3 9 0 0 0 −
Car Wash Supplies
Expense 1 7 0 0 0 −
Accounts
Payable 5 6 0 0 0 −
To record
credit
purchases

The above journal is also a compound entry having 2 debit accounts.

11. Receive promissory note from charge customer.

Transaction Value Received Value Parted

With
December 29 The right to collect Services
Received a 30-day, 12 percent promissory from Alakdan the rendered which
note from Alakdan Car Rental for various amount of provides income
Php30,000 for to the business

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 car wash services rendered amounting to laundry services
Php30,000. rendered

Journal entry for this transaction will appear as follows:

2016 Particulars PR Debit Credit

Dec 29 Notes Receivable 3 0 0 0 0 −
Car Wash
Service Income 3 0 0 0 0 −
To record
laundry
services on
account

12. Payment of salary.

Transaction Value Received Value Parted

With
December 30 Services rendered Cash payment for
Paid the salary of the workers for the by the workers the services
second half of December, 2019 as amounting to rendered by the
evidenced by the voucher duly supported Php9,000 workers
by the payroll, Php10,000. amounting to
Php10,000

Journal Entry for this transaction will appear as follows:

2016 Particulars PR Debit Credit

Dec 30 Salaries & Wages 1 0 0 0 0 −
Cash 1 0 0 0 0 −
To record
payment
of salaries

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 13. Cash withdrawal of owner.

Transaction Value Received Value Parted

With
December 31 Decrease in Cash withdrawal
Flora Dalisay withdrew cash amounting to capital of amounting to
Php10,000 for personal use. Php10,000. Php10,000

In this transaction, the owner can withdraw cash or in kind from his own
business. This is a legal transaction provided that it must be properly recorded in the
books of the business.

Journal entry for this transaction will appear as follows:

2016 Particulars PR Debit Credit

Flora Dalisay,
Dec 31 Drawing 1 0 0 0 0 −
Cash 1 0 0 0 0 −
To record
withdrawal
of owner

CLASSIFYING

Classifying is an aspect of accounting. It is sorting of similar and related

business transactions into accounting elements such as assets, liabilities, and owner’s
equity. This is the second mechanical phase of the whole accounting process.

Bookkeeping is the recording of the day to day transaction of the business

regardless of its nature. Chronological record keeping is the primary consideration in
the arrangement of the transactions in the general journal.

Under classifying, all transactions found in the general journal will be

transferred to the ledger under the same account. The process of transferring the
journal entry from the general journal to the ledger is called posting.

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LEDGER

The ledger is another book of accounts used to record business transactions

and events. It is also known as the book of the final entry. A ledger basically acts as
an accounting tool that accumulates all the necessary information prior to the
preparation of the financial statements.

Ledger appears like a capital T. It has two sides, namely the debit side and the
credit side. Both sides consist of the same columns which are as follows:

1. Date
2. Particulars
3. Folio or post reference
4. Amount

Debit Side Credit Side

ACCOUNTS RECEIVABLE
PAGE NO.
Date Particulars F Debit Amount Date Particulars F Credit Amount

The account title of the ledger is written at the center. On the rightmost side is
the page number of the ledger. Each account title must have a separate ledger.

Posting

The following procedures should be observed in posting to the ledger:

1. Check the completeness and arrangement of the ledger. All the accounts
appearing on the chart of accounts must have a ledger. A chart of account is
a list of account titles adopted by a business to organize the recording process
and segregate accounting values into assets, liabilities, capital, income, and

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 expense. In case no chart of account is provided, all the account titles used in
journalizing must have a ledger.

Arrange the ledger in accordance with the listings appearing on the chart
of accounts. Otherwise, arrange the ledger in the following order: assets,
liabilities, capital, income and expense.

2. Label the different sections of the ledger properly. The account title must be
centered at the top of the page. Indicate the page number at the rightmost side
in line with the account title. Write the year and the month only once on both
the debit and credit sides.

3. Start the posting process with the first debit entry found in the journal. In posting
the debit entry, observe the following procedures:

a. Transfer the date first, followed by the amount.

b. Indicate in the folio column of the general journal the page number of
the ledger.

c. Indicate in the folio column of the general journal the page number of
the ledger.

d. Make a brief explanation in the Particulars column of the ledger. This

is optional.

4. Repeat all the procedures in No. 3 for the credit entry.

5. Repeat No. 3 and 4 in the next entry in the journal until all entries are completely
posted.

Remember that posting is usually made at the end of the month after recording the
last transaction.

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 Illustrations in Posting

General Journal J-1

2016 Particulars PR Debit Credit
Dec 1 Cash L-1 2 5 0 0 0 −
Car Wash Equipment 5 8 5 0 0 −
Flora Dalisay, Capital 8 3 5 0 0 −
To record initial
investment
2 Car Wash supplies expense 2 6 0 0 −
Cash L-1 2 6 0 0 −
To record purchase
of supplies.
5 Cash L-1 8 4 0 0 −
Car Wash Service Income 8 4 0 0 −
To record car wash
services

CASH L-1
Date Particulars F Debit Amount Date Particulars F Credit Amount
Dec 1 J-1 2 5 0 0 0 − Dec 2 J-1 2 6 0 0 −
5 J-1 8 4 0 0 −

Posting and Cross-referencing

The different arrows point out the process of posting and cross-referencing.
The dates and the amounts are transferred to the proper side of the ledger depending
upon their positions in the journal.

If the dates and amounts are debited in the journal, they are transferred to the
debit side of the ledger. If the information is credited in the journal, it is transferred to
the credit side of the ledger.

Footing the Account

After all the entries have been posted, the next bookkeeping procedure is to
foot the account.

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 Footing is the process of adding the debit and the credit money columns of the
ledger and finding their balances.

The following procedures should be observed in footing the ledger:

1. If an account has a debit balance, that is, the debit total is higher that
the credit total, the difference is placed in the Particulars column of
the debit side.

2. If the account has a credit balance, that is, the credit total is bigger
than the debit total, the difference is placed in the Particulars column
of the credit side.

3. If there is only one entry on any side of an account in the ledger, no

footing is done and the entry is simply left open.

If all the entries for the month of December 2019 in the general journal of Ang
Probinsyana Car Wash Center are correctly posted, the cash ledger must look as
follows:

Cash Account After Posting and Footing

CASH L-1
Date Particulars F Debit Amount Date Particulars F Credit Amount
Dec 1 J-1 2 5 0 0 0 − Dec 2 J-1 2 6 0 0 −
5 J-1 8 4 0 0 − 7 J-1 7 0 0 0 −
21 J-1 4 3 0 0 0 − 15 J-1 1 0 0 0 0 −
27 J-1 3 8 0 0 0 − 23 J-1 9 5 0 0 −
67,300 1 1 4 4 0 0 − 30 J-1 1 0 0 0 0 −
31 J-1 1 0 0 0 0 −
4 7 1 0 0 −

It can be observed that the difference between the debit and the credit
(Php114,400 – Php39,100) is placed on the side that has the greater amount. In case
the credit amount is higher than the debit amount, the difference will be placed on the
credit side. The amount representing the difference will be used in the next
bookkeeping procedure.

28 | P a g e
Trial Balance

After all the accounts in the ledger have been added and the balances have
been computed, the next bookkeeping procedure is to prepared the trial balance. In
case an account title has a zero balance in the ledger, there is no need to include it in
the trial balance.

Trial balance is the listing of the debit and credit balances of accounts from the
general ledger with the following purposes:

1. To prove the equality of debit and credit

2. To determine the nominal accounts to be closed
3. To serve as basis for making draft financial statements

A trial balance, however, that has equal amounts of debit and credit does not
necessarily mean that it is correct trial balance. The trial balance has two major parts,
namely the heading and the body.

The heading normally has three lines intended for the name of the business,
title, and the date of the trial balance. The body presents the different account titles
and their balances.

The source of the trial balance is the ledger; the source of the ledger is the
general journal; and the sources of the entries in the journal are the different business
documents. This trend in the bookkeeping process indicates that one the entries in
the general journal are erroneous, the ledger and the trial balance are likewise
erroneous.

There are two kinds of trial balance. These are the trial balance of totals and
the trial balance of balances. In this book the trial balance of balances will be used
since this is the commonly used trial balance among the different businesses. In case
all the entries of Ang Probinsyana Laundry Center are correctly posted in the ledger
and the balance appearing in the ledger have been correctly computed, the trial
balance of the business is illustrated as follows:

29 | P a g e
 Ang Probinsyana Car Wash Center
Trial Balance
December 31, 2019

Cash Php 67,300

Accounts Receivable 70,000
Notes Receivable 30,000
Car Wash Equipment 58,500
Office Furniture 39,000
Accounts Payable Php 56,000
Flora Dalisay, Capital 83,500
Flora Dalisay, Drawing 10,000
Car Wash Service Income 189,400
Car Wash Supplies Expense 19,600
Rent Expense 5,000
Salaries and Wages 20,000
Utilities Expense 5,500
Taxes and Licenses 4,000 ______________
Total Php328,900 Php 328,900
============================
The trial balance is normally written on a clean bond paper. The first amounts
appearing in the money columns and the amounts after the single rule bear the peso
sign which will be omitted in the proceeding amounts. A double rule is written after
the total amount to signify that it was checked and verified correct.

Once the trial balance is not in balance, possible errors could have been
committed in the bookkeeping process, such as the following:

1. Erroneous recording in the journal

2. Erroneous posting to the ledger

3. Mathematical mistakes

4. Omission

30 | P a g e
VI. Practice Task

Practice Task 1

The following are the business transactions of Gandang Ganda Lang

Parlor Shop owned by Beauty Siya, a sole proprietor. Analyze the transaction
by identifying the value received and value parted with, indicate also the
amount. Use the following account titles: Asset Account: Cash, Notes
Receivable, Parlor Equipment, Furnitures & Fixtures; Liability Account:
Accounts Payable; Capital Account: Beauty Siya, Capital; Income Account:
Beauty Service Income; Expense Account: Taxes & Licenses, Insurance
Expense, Parlor Supplies Expense, Salaries Expense, Utilities Expense and
Rent Expense. Write your answer on your notebook using the format below.

Date Value Received Value Parted With

Transactions for the month of January, 2019 are as follows:

January 1, 2019 - Ms. Beauty invested Php500,000 in the business.

January 4, 2019 - Paid the following:

Business permit - Php 9,500
One-Year Insurance - 12,000

January 7, 2019 – Purchase different kinds of Parlor Equipment

amounting to Php185,000.

January 8, 2019 – Purchase the needed Parlor Supplies amounting to

Php75,000.

January 10, 2019 – Purchase tables, chairs, cabinets and other

furniture for the shop on account with Handsome
Furniture Shop amounting to Php88,000.

31 | P a g e
 January 13, 2019 – Rendered services to cash customers amounting
to Php15,000.

January 15, 2019 – Received promissory note for the wedding services
rendered to Natalia Cruz, amounting to Php50,000.

January 16, 2019 – Paid beautician’s and assistant’s salary for the first
half of the month, amounting to Php8,500.

January 18, 2019 – Partial payment of the account to Handsome

Furniture amounting to Php44,000.

January 22, 2019 – Received full payment from Natalia Cruz for the
transaction on January 15, 2019.

January 25, 2019 – Rendered services to various customers,

amounting to Php36,000.

January 27, 2019 – Payment of utilities such as water, electricity, cable

and internet connection amounting to Php7,800.

January 28, 2019 – Payment of shops rental amounting to Php5,000.

January 30, 2019 – Paid beautician’s and assistant’s salary for the
second half of the month, amounting to Php8,500.

32 | P a g e
 Practice Task 2

1. Prepare the journal entry of Gandang Ganda Lang Parlor Shop. Write
your answer in a two-column journal.

2. Transfer the journal entry of Gandang Ganda Lang Parlor Shop to the
general ledger.

33 | P a g e
 Practice Task 3

Prepare the trial balance of Gandang Ganda Lang Parlor Shop for the
month of January, 2019. Write the answer on your notebook.

34 | P a g e
VII. Post Test: (40 points)

Atty. Sarah Escudero opens ESCUDERO LAW FIRM. She had the
following transactions for the month of February, 2020.

February 1 Deposited cash in a bank for use as a working capital, Php100,000.

February 2 Purchased laptop and printer for office use on account with XYZ
Computer Shop, amounting to Php57,500.

February 4 Payment for various office supplies, Php2,800.

February 6 Purchased two units filing cabinet, Php9,000. A balance of

Php2,500 is still unpaid to ABC Store.

February 8 Rendered legal services to CBN-ABS on account, Php125,000.

February 10 Payment for various law books, Php33,000.

February 15 Rendered legal services to various customers, amounting to

Php50,000.

February 18 Atty. Escudero withdraw Php25,000 cash for personal use.

February 20 Purchased tables and chairs, Php25,000.

February 21 Payment for telephone, light, and water, Php6,250.

February 23 Partial payment to XYZ Computer Shop, Php42,500.

February 26 Collection to CBN-ABS, Php85,000.

February 27 Payment of rent for the month, Php8,000.

February 28 Payment of salary to office secretary and clerk, Php15,000.

35 | P a g e
 Required:

a. Journalize the following transactions using the following account

titles: Cash, Accounts Receivable, Law Books, Furnitures and
Fixtures, Office Equipment, Accounts Payable, Sarah Escudero,
Capital, Sarah Escudero, Drawing, Legal Fees, Office Supplies
Expense, Utilities Expense, Rent Expense, Salary Expense.
Write your answer in a two-column journal.

b. Post the journal entry to the general ledger.

c. Prepare the trial balance. Write your answer in a pad paper.

d. You will be graded based from the rubrics below.

ACCOUNTING RUBRIC
Not Met Proficient Advanced
Journalizing Major errors on Journal entry was The journal entry
(20 points) journal entry. The prepared with was prepared in
journal entry does minor errors. accordance with
not meet the Some of the the guidelines in
guidelines in guidelines in using using the general
journalizing. the general journal journal.
is not observed.

(0 point) (15 points) (20 points)

Posting to the Major errors on Minor errors on Completeness of
ledger posting. The posting. Some of the entry in the
(15 points) procedures in the procedures in general ledger is
transferring the transferring the evident. The
journal entry to the journal to the procedures for
general ledger was general ledger was posting was
not observed. not observed. followed properly.
(0 point) (12 points) (15 points)
Preparing a trial The trial balance is The trial balance is The entire balance
balance. not balance. correctly prepared, sheet is correctly
(5 points) Entries are with no more than prepared with no
missing. one error. major errors.

(0 point) (3 points) (5 points)

36 | P a g e
VIII. Assignments:

On August 15, 2019, Dr. Galy Sin, a dermatologist, opens Flawless Skin
Clinic. Below are the transactions for the month of August. Journalize the
transactions, post them to the ledger and prepare a trial balance. Use the
following account titles: Cash, Accounts Receivable, Furnitures and Fixtures,
Equipment, Accounts Payable, Galy Sin, Capital, Galy Sin, Drawing,
Professional Fee, Rent Expense, Clinic Supplies Expense, Utilities Expense
and Salary Expense.

August 15 Dr. Galy Sin, invests cash amounting to Php500,000 and

equipment valued at Php250,000.

17 Rent for the month amounting to Php7,000 was paid.

19 Provide facial services to Binibing Pilipinas Candidates on account,

amounting to Php75,000.

20 Facial services rendered to Kim Kinis, Php25,000.

22 Paid utilities such as electricity, telephone and water, Php3,800.

23 Purchased furnitures and fixtures, Php95,000 on account.

25 Purchased clinic supplies, amounting to Php50,000.

27 Partial payment for the furnitures & fixtures, Php55,000.

29 Paid the salary of medical secretary and assistant for the month,
Php15,000

31 Dr. Galy Sin withdrew Php20,000 cash for personal use.

37 | P a g e
 Required:

a. Journalize the following transactions using the following account

titles: Cash, Accounts Receivable, Furnitures and Fixtures,
Equipment, Accounts Payable, Galy Sin, Capital, Galy Sin,
Drawing, Professional Fee, Rent Expense, Clinic Supplies
Expense, Utilities Expense, Salary Expense. Write your answer
in a two-column journal.

b. Post the journal entry to the general ledger.

c. Prepare the trial balance. Write your answer in a pad paper.

38 | P a g e
IX. ANSWER KEY
Pre-Test:
1. B
2. C
3. C
4. B
5. A

Practice Task 1
Date Value Received Value Parted With
January 1, 2019 Cash – Php500,000 Beauty Sia, Capital – Php500,000
January 4, 2019 Taxes and Licenses – Php 9,500 Cash – Php21,500
Insurance Expense - 12,000
January 7, 2019 Parlor Equipment – Php185,000 Cash – Php185,000
January 8, 2019 Parlor Supplies Expense – Php75,000 Cash – Php75,000
January 10, 2019 Furniture & Fixtures – Php88,000 Accounts Payable -
January 13, 2019 Cash – Php15,000 Beauty Service Income - Php15,000
January 15, 2019 Notes Receivable – Php50,000 Beauty Service Income – Php50,000
January 16, 2019 Salaries Expense – Php8,500 Cash – Php8,500
January 18, 2019 Accounts Payable – Php44,000 Cash – Php44,000
January 22, 2019 Cash – Php50,000 Notes Receivable – Php50,000
January 25, 2019 Cash – Php36,000 Beauty Service Income – Php36,000
January 27, 2019 Utilities Expense – Php7,800 Cash – Php7,800
January 28, 2019 Rent Expense – Php5,000 Cash – Php5,000
January 30, 2019 Salaries Expense – Php8,500 Cash – Php8,500

Practice Task 2
1. Journal Entries

2019 Particulars PR Debit Credit

Jan 1 Cash 5 0 0 0 0 0 −
Beauty Siya, Capital 5 0 0 0 0 0 −
Initial investment
4 Taxes and Licenses 9 5 0 0 −
Insurance Expense 1 2 0 0 0 −
Cash 2 1 5 0 0 −
Payment of taxes and
licenses and insurance of
the business.
7 Parlor Equipment 1 8 5 0 0 0 −
Cash 1 8 5 0 0 0 −
Purchase of parlor
equipment on cash.
8 Parlor Supplies Expense 7 5 0 0 0 −

39 | P a g e
 Cash 7 5 0 0 0 −
Purchase of parlor
Supplies on cash.
10 Furniture and Fixtures 8 8 0 0 0 −
Accounts Payable 8 8 0 0 0 −
Purchase of furniture
and fixtures on account.
13 Cash 1 5 0 0 0 −
Beauty Service Income 1 5 0 0 0 −
Collection to cash
customers.
15 Notes Receivable 5 0 0 0 0 −
Beauty Service Income 5 0 0 0 0 −
Services rendered to
customers on account.
16 Salary Expense 8 5 0 0 −
Cash 8 5 0 0 −
Payment of salary.
18 Accounts Payable 4 4 0 0 0 −
Cash 4 4 0 0 0 −
Payment of account.
22 Cash 5 0 0 0 0 −
Notes Receivable 5 0 0 0 0 −
Collection of notes
receivable.
25 Cash 3 6 0 0 0 −
Beauty Service Income 3 6 0 0 0 −
Collection to cash
customers.
27 Utilities Expense 7 8 0 0 −
Cash 7 8 0 0 −
Payment of utilities.
28 Rent Expense 5 0 0 0 −
Cash 5 0 0 0 −
Payment of rent.
30 Salaries Expense 8 5 0 0 −
Cash 8 5 0 0 −
Payment of salary.

2. General Ledger

CASH PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
J1 −
Jan 1 J1 5 0 0 0 0 0 − Jan 4 2 1 5 0 0
J1 − J1 −
13 1 5 0 0 0 7 1 8 5 0 0 0

40 | P a g e
 J1 − J1 −
22 5 0 0 0 0 8 7 5 0 0 0
J1 − J1 −
25 3 6 0 0 0 16 8 5 0 0
− J1 −
245,700 6 0 1 0 0 0 18 4 4 0 0 0
J1 −
27 7 8 0 0
J1 −
28 5 0 0 0
J1 −
30 8 5 0 0
−
3 5 5 3 0 0

NOTES RECEIVABLE PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
J1 −
Jan 15 0 J1 5 0 0 0 0 − Jan 22 5 0 0 0 0

FURNITURES & FIXTURES PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
Jan 10 88,000 J1 8 8 0 0 0 −

PARLOR EQUIPMENT PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
Jan 7 185,000 J1 1 8 5 0 0 0 −

ACCOUNTS PAYABLE PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
J1 −
Jan 18 44,000 J1 4 4 0 0 0 − Jan 10 8 8 0 0 0

BEAUTY SIYA, CAPITAL PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
J1 −
Jan 1 500,000 5 0 0 0 0 0

BEAUTY SERVICE INCOME PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
J1 −
Jan 13 1 5 0 0 0
J1 −
15 5 0 0 0 0
J1 −
25 3 6 0 0 0
−
101,000 1 0 1 0 0 0

41 | P a g e
 TAXES & LICENSES PAGE NO.
Date Particulars F Debit Amount Date Particulars F Credit Amount
Jan 4 9,500 9 5 0 0 −

INSURANCE EXPENSE PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
Jan 4 12,000 1 2 0 0 0 −

PARLOR SUPPLIES EXPENSE PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
Jan 8 75,000 7 5 0 0 0 −

SALARY EXPENSE PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
Jan 16 8 5 0 0 −
−
30 8 5 0 0
−
17,000 1 7 0 0 0

UTILITIES EXPENSE PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
Jan 27 7,800 7 8 0 0 −

RENT EXPENSE PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
Jan 28 5,000 5 0 0 0 −

42 | P a g e
Practice Task 3

Gandang Ganda Lang Parlor Shop

Trial Balance
January 31, 2019

Cash Php 245,700

Furniture and Fixtures 88,000
Parlor Equipment 185,000
Accounts Payable Php 44,000
Beauty Siya, Capital 500,000
Beauty Service Income 101,000
Taxes and Licenses 9,500
Insurance Expense 12,000
Parlor Supplies Expense 75,000
Salary Expense 17,000
Utilities Expense 7,800
Rent Expense 5,000
-------------------- ---------------
Total Php645,000 Php645,000
============ ==========

Post Test:
1. Journal Entry

2019 Particulars PR Debit Credit

Feb 1 Cash 1 0 0 0 0 0 −
Sarah Escudero, Capital 1 0 0 0 0 0 −
Initial investment
2 Office Equipment 5 7 5 0 0 −
Accounts Payable 5 7 5 0 0 −
Purchase on account.
4 Office Supplies Expense 2 8 0 0 −
Cash 2 8 0 0 −
Purchase of office
supplies.
6 Furnitures and Fixtures 9 0 0 0 −
Cash 6 5 0 0 −
Accounts Payable 2 5 0 0 −
Purchases on cash and
on account.
8 Accounts Receivable 1 2 5 0 0 0 −
Legal Fees 1 2 5 0 0 0 −
Rendered services on
account.
10 Law Books 3 3 0 0 0 −

43 | P a g e
 Cash 3 3 0 0 0 −
Purchase of books.
15 Cash 5 0 0 0 0 −
Legal Fees 5 0 0 0 0 −
Rendered services
on cash clients.
18 Sarah Escudero, Drawing 2 5 0 0 0 −
Cash 2 5 0 0 0 −
Withdrawal of the
owner.
20 Furnitures and Fixtures 2 5 0 0 0 −
Cash 2 5 0 0 0 −
Purchases on cash.
21 Utilities Expense 6 2 5 0 −
Cash 6 2 5 0 −
Payment of utilities.
23 Accounts Payable 4 2 5 0 0 −
Cash 4 2 5 0 0 −
Partial payment to
XYZ Computer Shop.
26 Cash 8 5 0 0 0 −
Accounts Receivable 8 5 0 0 0 −
Collection of account,
27 Rent Expense 8 0 0 0 −
Cash 8 0 0 0 −
Payment of rent.
28 Salary Expense 1 5 0 0 0 −
Cash 1 5 0 0 0 −
Payment of salary.

2. General Ledger

CASH PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
Feb 1 1 0 0 0 0 0 − Feb 4 2 8 0 0 −
15 5 0 0 0 0 − 6 6 5 0 0 −
26 8 5 0 0 0 − 10 3 3 0 0 0 −
70,950 2 3 5 0 0 0 − 18 2 5 0 0 0 −
20 2 5 0 0 0 −
21 6 2 5 0 −
23 4 2 5 0 0 −
27 8 0 0 0 −
28 1 5 0 0 0 −
1 6 4 0 5 0 −

44 | P a g e
 ACCOUNTS RECEIVABLE PAGE NO.
Date Particulars F Debit Amount Date Particulars F Credit Amount
Feb 8 40,000 1 2 5 0 0 0 − Feb 26 8 5 0 0 0 −

LAW BOOKS PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
Feb 10 33,000 3 3 0 0 0 −

FURNITURES AND FIXTURES PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
Feb 6 9 0 0 0 −
20 2 5 0 0 0 −
34,000 3 4 0 0 0 −

OFFICE EQUIPMENT PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
Feb 2 57,500 5 7 5 0 0 −

ACCOUNTS PAYABLE PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
Feb 23 4 2 5 0 0 − Feb 2 5 7 5 0 0 −
6 2 5 0 0 −
17,500 6 0 0 0 0 −

SARAH ESCUDERO, CAPITAL PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
Feb 1 1 0 0 0 0 0 −

SARAH ESCUDERO, DRAWING PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
Feb 18 25,000 2 5 0 0 0 −

LEGAL FEES PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
Feb 8 1 2 5 0 0 0 −
15 5 0 0 0 0 −
175,000 1 7 5 0 0 0 −

45 | P a g e
 OFFICE SUPPLIES EXPENSE PAGE NO.
Date Particulars F Debit Amount Date Particulars F Credit Amount
Feb 4 2,800 2 8 0 0 −

UTILITIES EXPENSE PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
Feb 21 6,250 6 2 5 0 −

RENT EXPENSE PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
Feb 27 8,000 8 0 0 0 −

SALARY EXPENSE PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
Feb 28 15,000 1 5 0 0 0 −

3. Trial Balance

ESCUDERO LAW FIRM

Trial Balance
February 28, 2020

Cash Php 70,950

Accounts Receivable 40,000
Law Books 33,000
Furnitures and Fixtures 34,000
Office Equipment 57,500
Accounts Payable Php 17,500
Sarah Escudero, Capital 100,000
Sarah Escudero, Drawing 25,000
Legal Fees 175,000
Office Supplies Expense 2,800
Utilities Expense 6,250
Rent Expense 8,000
Salary Expense 15,000
----------------- ------------------
Total Php292,500 Php292,500
=========== ===========

46 | P a g e
Assignment:

1. Journal Entry

2019 Particulars PR Debit Credit

Aug 15 Cash 5 0 0 0 0 0 −
Equipment 2 5 0 0 0 0 −
Galy Sin, Capital 7 5 0 0 0 0 −
Initial Investment
17 Rent Expense 7 0 0 0 −
Cash 7 0 0 0 −
Payment of rent for
the month.
19 Accounts Receivable 7 5 0 0 0 −
Professional Fee 7 5 0 0 0 −
To record services
rendered to charge
customers.
20 Cash 2 5 0 0 0 −
Professional Fee 2 5 0 0 0 −
To record services
rendered to cash customers.
22 Utilities Expense 3 8 0 0 −
Cash 3 8 0 0 −
Payment of utilities.
23 Furnitures and Fixtures 9 5 0 0 0 −
Accounts Payable 9 5 0 0 0 −
Purchase on account.
25 Clinic Supplies Expense 5 0 0 0 0 −
Cash 5 0 0 0 0 −
Payment of supplies.
27 Accounts Payable 5 5 0 0 0 −
Cash 5 5 0 0 0 −
Payment of account.
29 Salary Expense 1 5 0 0 0 −
Cash 1 5 0 0 0 −
Payment of salary.
31 Galy Sin, Drawing 2 0 0 0 0 −
Cash 2 0 0 0 0 −
Withdrawal of the
owner.

47 | P a g e
 2. General Ledger

CASH PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
Aug 15 J1 5 0 0 0 0 0 − Aug 17
J1
7 0 0 0 −
20 J1 2 5 0 0 0 − 22 J1 3 8 0 0 −
374,200 5 2 5 0 0 0 − 25 J1 5 0 0 0 0 −
27 J1 5 5 0 0 0 −
29 J1 1 5 0 0 0 −
31 J1 2 0 0 0 0 −
1 5 0 8 0 0 −

ACCOUNTS RECEIVABLE PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
Aug 19 75,000 J1 7 5 0 0 0 −

FURNITURES AND FIXTURES PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
Aug 23 95,000 J1 9 5 0 0 0 −

EQUIPMENT PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
Aug 15 250,000 J1 2 5 0 0 0 0 −

ACCOUNTS PAYABLE PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
Aug 27 40,000 J1 5 5 0 0 0 − Aug 23 J1
9 5 0 0 0 −

GALY SIN, CAPITAL PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
Aug 15 750,000
J1
7 5 0 0 0 0 −

GALY SIN, DRAWING PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
Aug 31 20,000 J1 2 0 0 0 0 −

48 | P a g e
 PROFESSIONAL FEE PAGE NO.
Date Particulars F Debit Amount Date Particulars F Credit Amount
Aug 19
J1
7 5 0 0 0 −
20 2 5 0 0 0 −
100,000 1 0 0 0 0 0 −

RENT EXPENSE PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
Aug 17 7,000 J1 7 0 0 0 −

CLINIC SUPPLIES EXPENSE PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
Aug 25 50,000 J1 5 0 0 0 0 −

UTILITIES EXPENSE PAGE

NO.
Date Particulars F Debit Amount Date Particulars F Credit Amount
Aug 22 3,800 J1 3 8 0 0 −

SALARY EXPENSE PAGE NO.

Date Particulars F Debit Amount Date Particulars F Credit Amount
Aug 29 15,000 J1 1 5 0 0 0 −

3. Trial Balance

Flawless Skin Clinic

Trial Balance
August 31, 2019

Cash Php374,200
Accounts Receivable 75,000
Furnitures and Fixtures 95,000
Equipment 250,000
Accounts Payable Php 40,000
Galy Sin, Capital 750,000
Galy Sin, Drawing 20,000
Professional Fee 100,000
Rent Expense 7,000
Clinic Supplies Expense 50,000
Utilities Expense 3,800
Salary Expense 15,000
---------------- ----------------
Total Php890,000 Php890,000
========= =========

49 | P a g e
References:
Aduana, N. (2017). Entrepreneurship in Philippine Setting for Senior High
School. Quezon City, Philippines: C & E Publishing, Inc.

Ong, Flocer L. (2016). Fundamentals of Accountancy, Business & Management

1 for Senior High School. Quezon City, Philippines: C & E Publishing, Inc.

Florendo, Joselito G. (2016). Fundamentals of Accountancy, Business &

Management 1. Manila, Philippines: Rex Book Store.

Lising, GV Jr., Lising, G.L., Lising, J.L. Basic Accounting. Quezon city,
Philippines: Monarch Books Corporation.

https://www.google.com/imgres=two+column+general+journal+template&hl=e
nPH&source=sh/x/im

https://www.beginner-bookkeeping.com

50 | P a g e