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Questions and Answers
Which of the following best describes the purpose of a ledger in accounting?
Which of the following best describes the purpose of a ledger in accounting?
A sales journal is used to record all cash payments made by a business.
A sales journal is used to record all cash payments made by a business.
False (B)
What two accounts are debited and credited in the sales journal?
What two accounts are debited and credited in the sales journal?
Accounts Receivable and Sales
In a purchases journal, the two accounts that are commonly affected are Merchandise Inventory and ______.
In a purchases journal, the two accounts that are commonly affected are Merchandise Inventory and ______.
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Match the following journals with the transactions they primarily record:
Match the following journals with the transactions they primarily record:
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What is the primary purpose of a journal in accounting?
What is the primary purpose of a journal in accounting?
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The ledger is often referred to as the book of original entry.
The ledger is often referred to as the book of original entry.
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What is the process of transferring journal entries to the ledger called?
What is the process of transferring journal entries to the ledger called?
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The simplest form of journal is called the ______ journal.
The simplest form of journal is called the ______ journal.
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Which of the following is NOT a standard content of the general journal?
Which of the following is NOT a standard content of the general journal?
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Posting involves recording business transactions in the journal.
Posting involves recording business transactions in the journal.
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Match the following accounting terms with their descriptions:
Match the following accounting terms with their descriptions:
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What are the two major books of accounts?
What are the two major books of accounts?
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Flashcards
Ledger
Ledger
A reference book used for classifying and summarizing transactions to prepare financial statements.
Sales Journal
Sales Journal
A special journal for recording sales transactions and debts owed by customers.
Cash Receipts Journal
Cash Receipts Journal
A journal used to record cash inflows and the accounts credited.
Purchases Journal
Purchases Journal
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Subsidiary Ledgers
Subsidiary Ledgers
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Accounting Principles
Accounting Principles
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Peso Sign Rule
Peso Sign Rule
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Journal
Journal
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Journalizing
Journalizing
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General Journal
General Journal
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Posting
Posting
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Book of Final Entry
Book of Final Entry
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Study Notes
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."
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Description
Test your understanding of fundamental accounting concepts and principles. This quiz covers topics like transaction analysis, bookkeeping, and the format of journals and ledgers. Prepare to demonstrate your knowledge and improve your accounting skills.
