Senior High School

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ENTREPRENEURSHIP
Quarter 2 – Module 7
Key Bookkeeping Tasks

www.sweetnsimpledesign.com

Bethyl B. Gacayan
Compiler / Contextualizer

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 Second Quarter, Module 7, Week 7
Key Bookkeeping Tasks

Content Standard : The learner demonstrates understanding of

concepts, underlying principles, and processes of
starting and operating a simple business.
Performance Standard : The learner independently or with his/her classmates
starts and operates a business according to the business
plan and presents a terminal report of its operation.
Competencies : Perform key bookkeeping tasks
Learning Outcomes : Upon the completion of the given unit, the SHS
learners are expected to apply the basic process of the key
bookkeeping tasks.

What I Know

Have your up keeping for bookkeeping!

Classification. Copy to match each under the corresponding column for each
account title. Write the correct answer clearly in a separate sheet.

1. Accounts payable 2. Accounts receivable 3. Building

4. Capital 5. Cash 6. Cost of Goods Sold
7. Drawing 8. Equipment 9. Inventory
10. Notes payable 11. Sales revenue 12. Sales tax payable
13. Service revenue 14. Unearned revenue 15. Utilities expense

Assets Liabilities Equity Revenue Expenses

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 What I Need to Know

Bookkeeping tasks must be done for the business.

In this key move you are expected to:
● discuss the account titles
● show the standard way of bookkeeping
● perform basic bookkeeping

What’s In

Keep up for your bookkeeping task.

Completion. Read each transaction and write corresponding details on the
template. Write the correct answer clearly on a separate sheet.

Transactions

1. On October 30, 2020 Ms. Cocone Gosyu invested Php1,100- Cash as

Capital, of Ms. Gosyu, for the first few bottles of home-made coconut oil, she will
make and sell in her place.
2. Still on October 30, 2020, coconuts, charcoal, and containers as
Inventory for use were materials bought in Cash for Php 800-
3. Then on, October 31, 2020 the Sales in Cash in her place was for
Php1,800-.
4. On the same day of October 31, 2020 a Telecommunication expense of
Php 250.00- in Cash was spent to confirm orders from buyers.

5. On that day still, October 31, 2020, an advance payment or Unearned

revenue of Php 3,600- was received in Cash from a customer for advance order.

Date Item IN Item Out Amount IN Amount OUT

1.
2.

3.

4.

5.

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 Take in the details you have written and the highlighted terms as these are
linked to the basic part of bookkeeping.

What’s New

Brief Essay. Compare the templates A and B to C then write one (1) sentence
for similarity, and one for difference. Write the answer clearly on a separate sheet.

A. On October 31, 2020, a payment of Php100.00 was received from a customer

who bought products or got served.

Date Item IN Item OUT Amount IN Amount OUT

October 31, 2020 Money products/service Php 100.00

B. On October 31, 2020, a payment of Php500.00 was given to a supplier for

materials bought for the business.

Date Item IN Item OUT Amount IN Amount OUT

October 31, 2020 materials Money Php 500.00

C. General Journal Template

Date Particulars Debit Credit

2020
October
31
Cash Php 100.00-
Sales Php 100.00-
Received payment
Inventory 500.00-
Cash 500.00-
Bought materials

Your observation must be of the similarity and difference.

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 What Is It

What is bookkeeping for the business?

Bookkeeping is a process to record every financial transaction

in the business, from the opening to the closing.
Each financial transaction is recorded with a supporting document.

In its simplest definition, bookkeeping is the act of keeping records on the

financial activities of a business.
Get Familiar with Bookkeeping Terms and Phrases

BOOKKEEPER VS. ACCOUNTANT

● Bookkeeper: make sure that every entry is correct while logging all the
transactions in the books. In simple terms, bookkeepers record and organize
all financial data.

● Accountant: responsible for generally overseeing accounts then producing

financial statements and tax returns that comply with the law. Adjust entries
made by bookkeepers at the end of each period to help make more informed
business decisions.

What you have here are better ideas, on what to expect and what things mean in
bookkeeping.

SINGLE-ENTRY VS DOUBLE-ENTRY BOOKKEEPING

What is single-entry bookkeeping?
This is a cash-based bookkeeping method that tracks incoming and outgoing
cash in a journal.

A typical cash book will have the following information:

▪ Date: The date on which the transaction takes place

▪ Description: A brief note on the transaction
▪ Transaction value: The value can be either incoming (debit) or outgoing
(credit)
▪ Balance: Running total of how much cash you have in hand

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Example:

Date description Notes Transaction value Account balance

Expense Income
Debit Credit

What is double-entry bookkeeping?

The recording for every business transaction, means an entry in at least two
accounts as a debit or credit.
In a double-entry system, the amounts recorded as debits must be equal to
the amounts recorded as credits.

How does the double-entry system work?

The debits and credits should always be equal.

What Exactly are Debits and Credits?

Put simply, whenever you add or subtract money from an account, you are
using debits and credits. A DEBIT may mean money that is coming IN to the account,
while a CREDIT may mean money that is taken OUT.

The double-entry bookkeeping system works on the basic accounting equati

on:

THERE ARE FIVE 5 BASIC CATEGORIES OF ACCOUNTS:

● Asset: Something a business has or owns
● Liability: Something a business owes to a non-owner
● Equity: Something a business owes to the owners or the value of the
investment to the owner
● Revenue: Value of the goods the business has sold or the services we have
performed
● Expenses: Costs of doing business

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 You should always remember that each side of the equation must balance out.
This is how we arrive at the term “balancing the books.” Balance is a standard in
bookkeeping.
Look at the transactions, observe how the total credit and total debit are equal.
Example:
General Journal Template

Date Particulars Debit Credit

2020
October
31 Cash Php 100.00-
Sales Php 100.00-
Received payment
Inventory 500.00-
Cash 500.00-
Bought materials

Note each category of the account.

Assets
Assets are something you own or have, and they are resources you expect to gain a
benefit from in the future.
Some examples of assets are:
● Cash (refers to the business cash available but can also be a checking or
savings account)
● Office Supplies or other prepaid expenses (any expenses the business pays in
advance)
● Accounts receivable (amount we will receive from customers at a later date)
● Inventory (items we intend to sell later)
● Equipment (value of equipment purchased)
● Building (value of building purchased)
● Land (value of land purchased)

Liabilities
Liabilities are something that business owes to a non-owner (debt and business
obligations). Liabilities account will most often end in the word “payable”.
Some examples of liabilities are:
● Accounts Payable (bills the company must pay)
● Sales Tax Payable (sales tax obligations)
● Unearned Revenue (down payments received on work to be completed in the
future)
● Notes Payable (business financial obligations from signing a promissory note).

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Equity
Equity accounts represent the value of the owner’s investment in the company. The
Equity accounts are different based on the type of company.

1. For sole-proprietorship and partnership, a Capital account is used to record

the investment of the owners and income earned by the
company. A Withdrawal (or drawing) account is used when the owner takes
money out for personal use.

2. For corporations, a Common Stock account is used to record the investment

of the owners. A Retained Earnings account is used to record the earnings of
a corporation and to record when earnings are given back to the owners in the
form of dividends.

Income/Revenues
Represent the value of the goods or services provided.
Examples of revenue accounts include:
● Service Revenue (revenue from completing a service, could be specific like
plumbing service revenue, accounting service revenue, photography service
revenue, etc.)
● Sales Revenue (value of products you sell)
● Interest Revenue (value of interest earned on investments or bank accounts)

Expenses
These are costs or the outflow of money. These expenses represent all costs of doing
business to generate the revenue.
Examples of expenses accounts include (notice how most expense accounts end in
the word “expense”):
● Cost of Goods Sold (what we paid for inventory we have sold)
● Utilities Expense (cost of utilities)
● Wages Expense (cost of employee’s earnings)
● Rent Expense (cost of renting office space or equipment)
● Supplies Expense (cost of supplies used)
● Insurance Expense (cost of insurance used)
● Advertising Expense (cost of advertising)
● Bank Fees Expense (cost of bank fees charged by the bank)

CHART OF ACCOUNT
The chart of accounts contains account names and account numbers.
Number Sequence Account Type

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1,000 to 1,999 Assets
2,000 to 2,999 Liabilities
3,000 to 3,999 Equity
4,000 to 4,999 Income/Revenue
5,000 to 5,999 Cost of goods sold
6,000 to 7,999 Operating, general, administrative expense
8,000 to 9,999 non-business-related items of income and expense

What’s More

The chart of accounts contains account names and account numbers.

Completion. Choose and copy the accounts titles listed in this module, that are
useful for your simple home-based business, and complete the CHART OF
ACCOUNTS template. Write the answer clearly on a separate sheet.
NUMBER SEQUENCE ACCOUNTS
Assets
1001
1005
1008
Liabilities
2001
2006
2010
Equity
3001
3003
Revenue
4001
4004
Expense
5001
5007
5015

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 What I Have Learned

Book yourself on your bookkeeping sense.

Brief Essay. Use the details from your home-based business. Only one (1) sentence
per number. Write the answer clearly in a separate sheet.

1. What accounts are often used in your simple home-based business?

2. Explain the basic accounting equation.
3. Differentiate between Debit and Credit.
4. What is meant by “balancing the books”?

What I Can Do

Application. Make a general journal template and record the whole week
transactions of your simple home-based business properly. Write clearly in a
separate sheet.

Date Particulars Debit Credit

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 Assessment

MULTIPLE CHOICE: Read each item carefully. Write the corresponding letter of the
correct answer in a separate sheet of paper.

1. Bookkeeping records every financial transaction in the business. Why record?

A. Bookkeeping ends. B. Bookkeeping is new.
C. Bookkeeping is a process. D. Bookkeeping is an operation.

2. An accountant is a professional on financial statements to comply to tax and the

law. How about the bookkeeper?
A. A bookkeeper accepts and take financial data.
B. A bookkeeper gathers and hide financial data.
C. A bookkeeper makes and release financial data.
D. A bookkeeper records and organizes financial data.

3. Debit and credit must be equal. How is equal shown?

A. Entry is at least in all accounts. B. Entry is at least in any accounts.
C. Entry is at least in one account. D. Entry is at least in two accounts.

4. The basic accounting equation must balance out on each side. How is it shown
in the equation?
A. ASSETS = LIABILITIES x OWNER’S EQUITY
B. ASSETS = LIABILITIES / OWNER’S EQUITY
C. ASSETS = LIABILITIES - OWNER’S EQUITY
D. ASSETS = LIABILITIES + OWNER’S EQUITY

5. These are terms in bookkeeping; assets, liabilities, equity, revenues, and expenses.
How are these terms used?
A. The actual on accounts. B. The balance on accounts.
C. The categories of accounts. D. The entries of the accounts.

6. Account titles are with list of what business owns. How are these accounts use?
A. Acts of the business. B. Arts of the business.
C. Alter of the business. D. Assets of the business.

7. Account titles are with list of what the business owes to non-owners. What are
these?
A. capital B. liabilities C. merchandise D. purchases

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8. A business owes the owner based on investment. How is it applied in accounts?
A. Equity of investment B. equilibrium of investment.
C. equivalence of investment. D. equipoises of the investment.

9. The business sells or performs services as transactions. Why are these

transactions done?
A. To earn bills. B. To earn debit.
C. To earn revenue. D. To earn supplies.

10. There are costs in doing business. What account title is this?
A. Cash. B. Billing. C. Discounts D. Expenses

11. Date, particulars, debit, and credit for a recording format. Which format is it?
A. Account journal B. Delivery journal
C. General journal D. Equation journal

12. A chart of accounts is a list of account names and the numbers. Why a list?
A. It is a guide of used account line. B. It is a guide of used account lists.
C. It is a guide of used account term. D. It is a guide of used account titles.

13. A chart of accounts group accounts into types or category. What is it for?
A. recycling tool B. recording tool
C. schedule tool D. servicing tool

14. Only the accounts in use in are there in the chart. Why not all?
A. Accounts needed depends on the age of business.
B. Accounts needed depends on the end of business.
C. Accounts needed depends on the start of business.
D. Accounts needed depends on the type of business.

15. A system of recording includes the chart of accounts. Why is there a chart?
A. Accounts are applied. B. Accounts are in access.
C. Accounts are in basics. D. Accounts are in categories.

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 Additional Activities

How are you keeping up with bookkeeping?

Keep up and use it in your home-based business.

Brief Essay. Write clearly on a separate sheet of paper for your response.

a. How will you do the practical daily living use of what you have learned from this
module? Include how it will allow you to promote an attentive and focused attitude.
Answer aptly in one (1) sentence.

b. Ask-all-You-can about what you took up here. I will write back and post answers
online.

Answer Key

What’s In:

Date Item IN Item Out Amount IN Amount OUT

1. Oct. 30, 2020 Cash C.Gosyu, Capital Php 1,100-
2. Oct. 30, 2020 Inventory Cash Php 800-
3. Oct. 31, 2020 Cash Sales 1,800-
4. Oct. 31, 2020 Telecom expense Cash 250-
5. Oct. 31, 2020 Cash Unearned revenue 3,600-

References

https://courses.lumenlearning.com/sac-finaccounting/chapter/assets-liabilities-
and-owners-equity/
www.thebalancesmb.com › ... › Small Business
https://efinancemanagement.com/financial-accounting/chart-of-accounts-
numbering
https://www.botkeeper.com/blog/bookkeeping
https://www.zoho.com/books/guides/single-entry-and-double-entry-
bookkeeping.html
https://prezi.com/p/kxlgx1t85qgc/business-trial-run/
www.freshbooks.com › hub › accounting › debit-and-credit

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