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Subject code: ACC101

Lecturer: Huyen Nguyen, Ph.D. Faculty of Business – FPT University

CHAPTER 1 REVIEW
Revenue Recognition Principle

4 Cost Principle – Historical cost

PRINCIPLES
Matching Principle

Full Disclosure Principle

Going-Concern Assumption

Monetary Unit Assumption 4

ASSUMPTIONS
Business Entity Assumption

Time Period Assumption

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CHAPTER 1 REVIEW
ACCOUNTING EQUATION

ASSETS = LIABILITIES + EQUTY

• Assets: resources owned or controlled by a company that
have expected future benefits.
• Liabilities: creditors’ claims on owners = obligations to
transfer assets or provide products and services to others
• Equity: owners’ claims on assets, including owner’s
investment, owner’s withdrawal, revenues and expenses.

EXPANDED ACCOUNTING EQUATION

ASSETS = LIABILITIES + OWNER,CAPITAL – OWNER,WITHDRAWALS + REVENUES - EXPENSES

Chapter 2

ANALYZING AND
RECORDINGTRANSACTIONS

NGUYÊN TẮC HẠCH TOÁN

CÁC NGHIỆP VỤ CƠ BẢN

© 2009 The McGraw-Hill Companies, Inc.,

All Rights Reserved

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CHAPTER 2: ANALYZING AND

RECORDINGTRANSACTIONS

Analyzing and Recording

Process
(Source Documents and Type of Account)

Analyzing and Processing

CONTENT Transaction
(T-Account and Steps to Analyzing Transactions)

Trial Balance
(Preparation and Use)

1. ANALYZING AND RECORDING

PROCESS

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ANALYZING AND RECORDING

PROCESS

Analyze each transaction Record relevant transactions

and event from source and events in a General journal
documents (Vào sổ nhật ký chung)
(Tập hợp chứng từ kế toán)

Prepare and analyze Post journal information to

the trial balance ledger
(Lập Bảng cân đối thử) (Lên Sổ cái)
McGraw‐Hill/Irwin Slide 2

SOURCE DOCUMENTS
Chứng từ kế toán
• Identify and describe transactions and events
entering the accounting process.
• Can be in either hard copy or electronic form.
• Usually prepares at least two copies:
– One to the buyer.
– Another for seller to record the sale.
• Example: Bill from suppliers,
Purchase Orders, Checks,
Employee Earning Records,
Banks Statements, Sales Tickets…

McGraw‐Hill/Irwin Slide 3

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THE ACCOUNT AND ITS ANALYSIS

Tài khoản và Định khoản

• Assets accounts: record of increases and decreases in resources

owned or controlled by a company and that have expected future
benefits.

• Liabilities accounts: record of increases and decreases in

obligations to transfer assets or provide products and services to
others

• Equity accounts: record of increases and decreases in owners’

claims on assets, including owner’s investment, owner’s
withdrawal, revenues and expenses.

1 Cash
(Tiền)

2 Accounts Receivable
(Nợ phải thu)

3 Note Receivable
(Thương phiếu phải thu)

4 Prepaid Expenses
(Tạm ứng)
(Các tài khoản Tài sản)
5 Equipments
(Trang thiết bị)
6 Buildings
(Nhà cửa, vật kiến trúc)

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Account Payable
(Khoản phải trả)
1
Note Payable
(Thương phiếu phải trả)
2
Unearned Revenue
(Doanh thu chưa thực hiện)
3 (Các tài khoản Nợ phải trả)

Accrued Liability 4
(Nợ dồn tích)

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Owner, Capital
(Đầu tư của chủ sở hữu)
1
Owner, Withdrawals
(Rút vốn của chủ sở hữu)
2
Revenues
(Doanh thu)
3 (Các tài khoản Vốn)

Expenses 4
(Chi phí)

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2. ANALYZING AND PROCESSING

TRANSACTION

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ANALYZING
• Chart of accounts (Hệ thống Tài khoản
TRANSACTION
kế toán): list of all ledge accounts and
Định khoản trong
includes an identification number
kế toán
assigned to each account.

Example of Chart of accounts

Chart of accounts in Vietnam

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T - ACCOUNT
Tài khoản chữ T
T-account represents a ledger account and is a tool used to understand
the effects of one or more transactions.

Bất cứ loại tài khoản nào đều có một Tại sao lại là hình chữ T ?
kết cấu chung – gồm 2 bên trái phải gọi Vì trong quá trình vận động của một đối
tượng kế toán chỉ có thể có hai chiều
là tài khoản chữ T.
hướng biến động, tăng lên hoặc giảm
Bên trái kí hiệu là Debit, và bên phải kí
xuống, do vậy kết cấu của tài khoản có
hiệu là Credit hai bên và chữ T giải quyết được điều đó.

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DEBITS AND CREDITS IN THE

ACCOUNTING EQUATION
Nguyên tắc ghi NỢ - CÓ
trong Phương trình Cân bằng Kế toán

Assets = Liabilities + Equity

ASSETS LIABILITIES EQUITY

Debit
_ Credit _
Debit Credit
_
Debit Credit
+ + +

McGraw‐Hill/Irwin Slide 12

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SYSTEM FOR RECORDING

DEBITS AND CREDITS
NGUYÊN TẮC GHI NỢ - CÓ

Assets = Liabilities + Equity

Đối với nhóm TK tài sản: Đối với nhóm TK nguồn vốn:

-Tăng: ghi bên trái sơ đồ -Tăng: ghi bên phải sơ đồ

chữ T (Debit) chữ T (Credit)

-Giảm: ghi bên phải sơ đồ -Giảm: ghi bên trái sơ đồ

chữ T (Credit) chữ T (Debit)

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DEBITS AND CREDITS IN THE ACCOUNTING EQUATION

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STEPS IN PROCESSING TRANSACTIONS

QUY TRÌNH GHI SỔ KẾ TOÁN

Assets = Liabilities + Equity

T- Account
(Left side) (Right side)
Debit Credit

Step 1:Analyze Step 2: Apply

transactions and source double-entry accounting
documents.

GENERAL JOURNAL Page

ACCOUNT NAME: ACCOUNT No.
Post.
Date Description Ref. Debit Credit
Date Description PR Debit Credit Balance

Step 4: Post entry to ledger Step 3: Record journal entry

McGraw‐Hill/Irwin Slide 15

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CHAP 2 - Practice
1) Jan 3. Receive investment by Owner: FastForward receives $30,000 cash from
ChasTaylor as an owner contribution.
2) Jan 3. Purchase Supplies for Cash: FastForward pays $2,500 cash for supplies.
3) Jan 5. Purchase Equipment for Cash: FastForward pays $26,000 cash for
equipment.
4) Jan 6. Purchase Supplies on Credit: FastForward purchases $7,100 of supplies
on credit from a supplier.
5) Jan 6. Provide Services for Cash: FastForward provides consulting services and
immediately collects $4,200 cash
6) Jan 6. Payment of Expense in Cash: FastForward pays $1,000 cash for
December rent.
7) Jan 10. Payment of Expense in Cash: FastForward pays $700 cash for
employee salary.
8) Jan 15. Provide Consulting and Rental Services on Credit: FastForward
provides consulting services of $1,600 and rents its test facilities for $300. The
customer is billed $1,900 for these services.

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CHAP 2 - Practice
9) Jan 16. Receipt of Cash on Account: FastForward receives $1,900 cash
from the client billed in transaction 8.
10) Jan 17. Partial Payment of Accounts Payable: FastForward pays CalTech
Supply $900 cash toward the payable of transaction 4.
11) Jan 17. Withdrawal of Cash by Owner: Chas Taylor withdraws $200 cash
from FastForward for personal use.
12) Jan 19. Receipt of Cash for Future Services: FastForward receives $3,000
cash in advance of providing consulting services to a customer.
13) Jan 20. Pay Cash for Future Insurance Coverage: FastForward pays $2,400
cash (insurance premium) for a 24‐month insurance policy. Coverage
begins on December 1.
14) Jan 22. Purchase Supplies for Cash: FastForward pays $120 cash for
supplies
15) Jan 29. Payment of Expense in Cash: FastForward pays $230 cash for
December utilities expense
16) Jan 30. Payment of Expense in Cash: FastForward pays $700 cash in
employee salary for work performed in the latter part of December.

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ANALYZING TRANSACTIONS
Identify:
Transaction: Owner invested $30,000 in FastForward on Dec. 1.

Analyze:
Assets = Liabilities + Equity
Cash Capital
30,000 30,000

Double entry record:

(1) Cash 101 30,000
C. Taylor, Capital 301 30,000

Post:
Cash C. Taylor, Capital
(1) 30,000 (1) 30,000

McGraw‐Hill/Irwin

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POSTING JOURNAL ENTRIES

GHI SỔ NHẬT KÝ CHUNG VÀ SỔ CÁI

GENERAL JOURNAL - Sổ nhật ký chung Page 1

Date Description PR Debit Credit
2009
Dec. 1 Cash 101 30,000
C. Taylor, Capital 30,000
Investment by owner

GENERAL PLEDGE – Sổ cái tài khoản tiền mặt

CASH ACCOUNT No. 101

Date Description PR Debit Credit Balance

2009
Dec. 1 Investment by owner G1 30,000 30,000

McGraw‐Hill/Irwin Slide 23

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ANALYZING TRANSACTIONS
Identify:
FastForward purchases supplies by paying $2,500
Transaction: in cash.

Analyze:
Assets = Liabilities + Equity
Cash Supplies Capital
(2,500) 2,500

Double entry record:

(2) Supplies 126 2,500
Cash 101 2,500

Post:
Supplies Cash
(2) 2,500 (1) 30,000 (2) 2,500

McGraw‐Hill/Irwin

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ANALYZING TRANSACTIONS
Identify:
FastForward purchases equipment by paying
Transaction: $26,000 in cash.

Analyze:
Assets = Liabilities + Equity
Cash Equipment Capital
(26,000) 26,000

Double entry record:

(3) Equipment 167 26,000
Cash 101 26,000

Post:
Equipments Cash
(3) 26,000 (1) 30,000 (2) 2,500
(3) 26,000

McGraw‐Hill/Irwin

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ANALYZING TRANSACTIONS
Identify:

Transaction: FastForward purchases $7,100 of supplies on credit.

Analyze:
Assets = Liabilities + Equity
Supplies Accounts Payable Capital
7,100 7,100

Double entry record:

(4) Equipment 126 7,100
Accounts Payable 201 7,100

Post:
Supplies Accounts Payable
(2) 2,500 (4) 7,100
(4) 7,100

McGraw‐Hill/Irwin

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ANALYZING TRANSACTIONS
Identify:
FastForward provides consulting services and
Transaction: immediately collects $4,200 cash.

Analyze:
Assets = Liabilities + Equity
Cash Revenue
4,200 4,200

Double entry record:

(5) Cash 101 4,200
Consulting Revenue 403 4,200

Post:
Cash Consulting Revenue
(1) 30,000 (2) 2,500 (5) 4,200
(5) 4,200 (3) 26,000

McGraw‐Hill/Irwin

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CHAP 2 - Practice
• 1. Receive investment by Owner: FastForward receives $30,000 cash from
ChasTaylor as an owner contribution.
• 2. Purchase Supplies for Cash: FastForward pays $2,500 cash for supplies.
• 3. Purchase Equipment for Cash: FastForward pays $26,000 cash for
equipment.
• 4. Purchase Supplies on Credit: FastForward purchases $7,100 of supplies
on credit from a supplier.
• 5. Provide Services for Cash: FastForward provides consulting services and
immediately collects $4,200 cash
• 6. Payment of Expense in Cash: FastForward pays $1,000 cash for
December rent.
• 7. Payment of Expense in Cash: FastForward pays $700 cash for employee
salary.
• 8. Provide Consulting and Rental Services on Credit: FastForward provides
consulting services of $1,600 and rents its test facilities for $300. The
customer is billed $1,900 for these services.

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CHAP 2 - Practice
• 9. Receipt of Cash on Account: FastForward receives $1,900 cash from the
client billed in transaction 8.
• 10. Partial Payment of Accounts Payable: FastForward pays CalTech Supply
$900 cash toward the payable of transaction 4.
• 11. Withdrawal of Cash by Owner: Chas Taylor withdraws $200 cash from
FastForward for personal use.
• 12. Receipt of Cash for Future Services: FastForward receives $3,000 cash
in advance of providing consulting services to a customer.
• 13. Pay Cash for Future Insurance Coverage: FastForward pays $2,400 cash
(insurance premium) for a 24‐month insurance policy. Coverage begins on
December 1.
• 14. Purchase Supplies for Cash: FastForward pays $120 cash for supplies
• 15. Payment of Expense in Cash: FastForward pays $230 cash for
December utilities expense
• 16. Payment of Expense in Cash: FastForward pays $700 cash in employee
salary for work performed in the latter part of December.

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3. TRIAL BALANCE

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TRIAL BALANCES
Bảng cân đối thử
• Trial balance is a list of accounts and their balances
at a point in time.
• A trial balance can be used to confirm this and to
follow up on any abnormal or unusual balances.
• Steps to prepare a trial balance
Verify
Compute
List (prove)
the total of
each account total debit
debit balances
title and its balances
and
amount equal
the total of
(from ledger) total credit
credit balances.
balances
McGraw‐Hill/Irwin

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After several months of planning, Jasmine Worthy started a haircutting business

called Expressions. There are 11 events occurred during its first month.

Required

1. Open the following ledger accounts in balance column format (account

numbers are in parentheses): Cash (101); Accounts Receivable (102);
Furniture (161); Store Equipment (165); Note Payable (240); J. Worthy,
Capital (301); J. Worthy, Withdrawals (302); Haircutting Services Revenue
(403); Wages Expense (623); and Rent Expense (640). Prepare general
journal entries for the transactions.

2. Post the journal entries from (1) to the ledger accounts.

3. Prepare a trial balance as of August 31.

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ANALYZE FROM SOURCE DOCUMENTS

Events occurred during Expressions’ first month of operation.
1. On August 1, Worthy invested $3,000 cash and $15,000 of equipment in Expressions.
2. On August 2, Expressions paid $600 cash for furniture for the shop.
3. On August 3, Expressions paid $500 cash to rent space in a strip mall for August.
4. On August 4, it purchased $1,200 of equipment on credit for the shop (using a long-
term note payable).
5. On August 5, Expressions opened for business. Cash received from haircutting services
in the first week and a half of business (ended August 15) was $825.
6. On August 15, it provided $100 of haircutting services on account.
7. On August 17, it received a $100 check for services previously rendered on account.
8. On August 17, it paid $125 to an assistant for hours worked during the grand opening.
9. Cash received from services provided during the second half of August was $930.
10. On August 31, it paid a $400 installment toward principal on the note payable entered
into on August 4.
11. On August 31, Worthy withdrew $900 cash for personal use.

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RECORD JOURNAL ENTRY

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 Remember debits and credits in the accounting equation

ASSETS
= LIABILITIES
+ EQUITY

(Debits) (Credits) (Debits) (Credits) (Debits) (Credits)

+ - - + - +
Balance Balance Balance

= - + -
Owner,
EQUITY Owner, Capital Revenues Expenses
Withdrawals
(Debits) (Credits) (Debits) (Credits) (Debits) (Credits) (Debits) (Credits) (Debits) (Credits)

- + - + + - - + + -
Balance Balance Balance Balance Balance

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D a te Accoun t Titles a nd E xp la na tion PR D eb it Cred it

Aug. 1 Cash 101 3, 000
Store Equipm ent 165 15, 000
J. W orthy, Capital 301 18, 000
2 Furniture 161 600
Cash 101 600
3 Rent Expense 640 500
Cash 101 500
4 Store Equipm ent 101 1, 200

POSTING
Note Payable 240 1, 200
15 Cash 101 825

JOURNAL 15 Accounts Receivable

Haircutting Services Revenue 403
102 100
825

ENTRIES 17 Cash
Haircutting Services Revenue 403
101 100
100

Accounts Receivable 102 100

17 W ages Expense 623 125
Cash 101 125
31 Cash 101 930
Haircutting Services Revenue 403 930
31 Note Payable 240 400
Cash 101 400
31 J. W orthy, W ithdraw als 302 900
Cash 101 900

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POST ENTRY TO LEDGER

Account Name

ASSETS LIABILITIES EQUITY

Cash (101) Note Payable (240) J. Worthy, Capital (301)
Accounts Receivable (102) J. Worthy, Withdrawals (302)
Furniture (161) Haircutting Services Revenue (403)
Store Equipment (165) Wages Expense (623)
Rent Expense (640)

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41

PREPARE THE TRIAL BALANCE

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DEBT RATIO (Tỉ lệ nợ trên tài sản)

• Debt Ratio help assess a company’s risk of failing to pay its

debts.
• Calculation formula:

• Higher debt ratio involves greater risk because liabilities must

be repaid and often require regular interest payments.

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LESSON SUMMARY

 PROCEDURAL

① Prepare and explain the use of a trial balance.

② Prepare financial statements from business

transactions.

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CONCEPTUAL CHAPTER 2 SUMMARY

① 4 Steps in processing transactions: (1) Analyze transactions from
Source documents; (2) Record in a General journal; (3) Post to
ledger; and (4) Prepare and analyze the trial balance
② Source documents identify and describe transactions and events.
③ An account is a detailed record of increases and decreases in a
specific asset, liability, equity, revenue, or expense.
④ The ledger (or general ledger) is a record containing all accounts
used by a company and their balances.
⑤ The chart of accounts is a list of all accounts and usually includes an
identification number assigned to each account.
⑥ Debit increase assets, expenses, and withdrawals and refers to left.
Credits increase liabilities, owner capital, and revenues, and refers to
right.
⑦ Double-entry accounting means each transaction affects at least two
accounts and has at least one debit and one credit.

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CHAPTER 2 SUMMARY

ANALYTICAL
① Determine a transaction’s effects on accounts, record in journals and
post to ledgers.
② A company’s debt ratio is computed as total liabilities divided by
total assets. The higher this ratio, the more risk a company faces
because liabilities must be repaid at specific dates.

PROCEDURAL
① Record transactions in a journal and post entries to a ledger.
② Record transactions in a journal and post entries to a ledger.
③ Prepare financial statements from business transactions.

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CHAPTER 2 SUMMARY
 ANALYZING AND RECORDING PROCESS

Prepare
Analyze Record
Post and
from in a
to analyze
Source General
ledger the
documents journal
trial balance

 STEPS IN PROCESSING TRANSACTIONS

Analyze
Apply Post
transactions Record
double-entry entry
and source journal entry
accounting to ledger
documents.

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CHAPTER 2 SUMMARY

 T - ACCOUNT
T-account represents a
ledger account and is a
tool used to understand
the effects of one or
more transactions.

McGraw‐Hill/Irwin

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CHAPTER 2 SUMMARY
 DEBITS AND CREDITS IN THE ACCOUNTING EQUATION

Assets = Liabilities + Equity

ASSETS LIABILITIES EQUITY

Debit
_ Credit _
Debit Credit
_
Debit Credit
+ + +

McGraw‐Hill/Irwin

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DEBITS AND CREDITS IN THE ACCOUNTING EQUATION

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END OF CHAPTER 2

McGraw‐Hill/ Slide 38

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