Accounting Guidelines Quiz

Accounting Guidelines

• Always remember accounting concepts and principles
• Observe proper amount writing (using peso signs)
• Observe accounting rules and double-entry bookkeeping
• Practice solving problems by reading in advance and practicing
• Balance work and time management
• Prepare for adjustments
• Maintain organized and clean work
• Present reports appropriately

Questions

• How are you?
• Did you learn a lot from the past lesson?
• What topics are you struggling with?

Processing Questions

• What is the next step after analyzing transactions?
• Are you familiar with the accounting books used?

Learning Outcomes

• Illustrate the format of general and special journals (ABM_FABM11-IIIf-23)
• Illustrate the format of general and subsidiary ledger (ABM_FABM11-IIIf-24)

Books of Accounts

• The book of original entry for company transactions
• Business transactions are first recorded here.

The Two Major Books of Accounts

• Journal Ledger (a major bookkeeping tool)

General Journal

• Simplest journal format
• Shows the transaction date, account titles, explanations, references, and amounts related to corresponding accounts.

General Journal Contents

• Date
• Account titles and explanation
• Reference number
• Debit
• Credit

Ledger

• Grouping of all company accounts
• Shows outstanding balances of each account
• "Reference book" for accounting systems
• Used to categorize and summarize transactions
• Used for preparing data for financial statements

Ledger Contents

• Account title
• Ledger account reference number
• Date
• Explanation
• Reference
• Debit
• Credit
• Balance

Special Journals

• Sales Journal
• Purchases Journal
• Cash Receipts Journal
• Cash Disbursements Journal

Sales Journal Contents

• Special journal title
• Special journal reference number
• Date
• Account debited
• Invoice number
• Reference
• Dr. Accounts Receivable and Cr. Sales
• Total

Cash Receipts Journal Contents

• Special journal title
• Special journal reference number
• Date
• Account credited
• Reference
• Dr. Cash
• Cr. Accounts Receivable, Sales, and Other Accounts
• Total

Purchases Journal Contents

• Special journal title
• Special journal reference number
• Date
• Account credited
• Terms
• Reference
• Dr. Merchandise Inventory, Cr. Accounts Payable
• Total

Cash Payments Journal Contents

• Special Journal Title
• Special Journal Reference Number
• Date
• Check Number
• Accounts Debited
• Reference
• Dr. Accounts Payable, Other Accounts
• Cr. Cash
• Totals

Subsidiary Ledgers

• Detailed records of specific accounts (e.g., accounts receivable, accounts payable).
• Provides a more detailed view of individual transactions and balances than the general ledger.
• Used in conjunction with general ledgers.

Illustration of Transaction Recording

• Example transactions in 2020-08:
  • Cash investment (PHP 48,000)
  • Rent payment (PHP 8,000)
  • Exploration equipment purchase (PHP 22,000 with PHP 12,000 partial payment)
  • Additional transactions involving purchases, exploration work, and payments.

Chart of Accounts

• Numerical references for accounts (e.g., Cash = 101, Accounts Payable = 201)
• Explains accounts categories.

Finish

• Quote by Fernando Pessoa: "Destiny gave me only two things: a few accounting books, and the gift of dreaming."