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Bookkeeping Presentation

An E-Book about Bookkeeping

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Kent Malig-on
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19 views24 pages

Bookkeeping Presentation

An E-Book about Bookkeeping

Uploaded by

Kent Malig-on
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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GUESS THE CLUES

BOOKKEPING

ENTREPRENEURSHIP

REPORTER 6
OBJECTIVES
Identify the roles of a bookkeeper

Analyze the specific types of accounting records

Perform bookkeeping tasks


BOOK OF ACCOUNTS
The bookkeeper uses the Book
of Accounts to record the
business transactions which is
to be consolidated later to help
construct financial statement
such as the Trial Balance,
Income Statement and Balance
Sheet.
BOOK OF ACCOUNTS
The book of accounts is composed of
the Journal and Ledger. It depends on
the type of business, some businesses
used special journals when they are
engaged merchandising type of
business to record business
transactions. This lesson will cover and
provide example for service-oriented
business. Only the journal and ledger
will be used in the succeeding
examples.
BOOKKEEPER
➢ A person who records the day-to-
day financial transactions of
business.
➢ He/she is responsible for writing
the daybooks which contain records
of purchases, sales receipts, and
payments.
➢ He/she is responsible for
ensuring that all transaction,
whether it is cash transaction or
credit transaction, are recorded.
SPECIFIC TYPES OF ACCOUNTING RECORDS
SPECIFIC TYPES OF ACCOUNTING RECORDS
1. Journals – is the book of original entry. It is where all business
transactions are chronologically recorded for the first time.

Guidelines in Using the General Journal


1. Date column – it shows the date of occurrence of the
transaction. The year and month are not rewritten for every
entry unless they have changed, or a new page is needed.
2. Particular – it shows the account debited and credited as
well as a brief explanation of the transaction is entered on
the next line slightly indented from the credit account.
3. Posting Reference – it is used when the entries are posted
until the amount which are transferred to the related
ledger account.

4. Debit Column – it is first money column where the amount


of the debit account is entered.

5. Credit Column – it is the second money column where the


amount of the credit account is entered.
THE Following the rules of Debit and Credit are
RULES essential part to ensure accurate recording

OF and sound decision making.


Debit is abbreviated as DR while CR for
DEBIT Credit.

AND It is a requirement that the bookkeeper be


able to master the normal balance of each
CREDIT account title before performing the tasks of
bookkeeper.
When to Debit?
When cash or non-cash items are received, the said cash or
non-cash items must be recorded in the debit column. This
means that the debit balance increased. It is called Value
Received.

When to Credit?
When cash or non-cash items are given, the said cash or non-
cash items must be recorded in the credit column. This means
that the credit balance is increased. It is called Value Parted
With.
Steps to be undertake in determining account balances

1. Add all the debit side to generate total debit.

2. Add all the credit side to generate total credit.

3. Subtract total debit to the total credit.

4. Determine the balance of each account.


Recording Transactions
2019, December 1. Jerry Toredo opened her small
laundry shop with a legal trade name approved by DTI as
Modern Laundry Center. The business has been registered as
a non-VAT taxpayer. Jerry rented a pace for the business at
Rizal Street, Calamba City. The rental fee is ₱3,000 per
month. She made the following initial investment:
Recording Transactions

The entry in the journal will appear as follows:


Recording Transactions

December 2. She bought detergents and other materials


needed for washing of clothes, curtains, blankets, and
related items from Yvone Merchandising amounting to
₱1,800.
Recording Transactions

December 5. Rendered various laundry services to walk-in


customers and issued several official receipts amounting to
₱7,300.
Recording Transactions

GENERAL JOURNAL
2. LEDGER
Ledger – is another book of accounts used to record business transactions and
events. It considered as the book of final entry.
The ledger appears like a capital letter 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
TRIAL BALANCE

After all the account in the ledger have been added and
balances have been computed, the next bookkeeping
procedure is to prepare the trial balance.
Trial balance is the listing of the debt and credit balances
of accounts from general ledger with the following purposes:

1. To prove the equality of debit credit


2. To determine the nominal accounts to be closed
3. To serve as basis of making draft financial statement
TRIAL BALANCE

Once the trial balance is not in balance possible errors could


have been committed in the bookkeeping process such as:

1. Erroneous recording in the journal


2. Erroneous posting to the ledger
3. Mathematical mistakes
4. Omission
TRIAL BALANCE
THANK YOU
L
E Learning Task: Preparing Personal Income Statement
A Directions:
R ·Write your monthly allowance (computed by daily allowance x number
N of days in a month). Compute the total.
I ·Write the amount you spend on food, transportation, phone load, etc.
N (make it monthly to match your allowance). Compute the total.
G ·Deduct the total amount you spend from the total amount of your
allowance.
·Associate allowance with revenue and spending with expense with the
T
net amount as net income.
A
S
K

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