FABM 1 Week 5 Lesson 6 Books of Accounts PDF

Accounting Guidelines 1. Always remember the accounting concepts and principles. 2. Always observe the proper writing of the amount/s. (Peso signs rule) 3. Always observe the rules and double rules 4. Have time to read in advance and practice to solve problems. 5. Balance your work and t...

Accounting Guidelines 1. Always remember the accounting concepts and principles. 2. Always observe the proper writing of the amount/s. (Peso signs rule) 3. Always observe the rules and double rules 4. Have time to read in advance and practice to solve problems. 5. Balance your work and time. 6. Be prepare for adjustments. 7. Maintain your work simple and clean. 8. Observe the proper presentation of your reports. Questions: Kumusta ka na? (How are you?) Have you learned a lot from the past lesson? What are the topics you have difficulty dealing with? Processing Questions: After you analyze the transactions, what do you think will be the next step? Are you familiar with the books that are being used in Accounting? The learners are expected to demonstrate the following skills as your learning outcomes: “ ✓ illustrate the format of a general and special journals (ABM_FABM11-IIIf-23) ✓ illustrate the format of a general and subsidiary ledger (ABM_FABM11-IIIf-24)  LESSON 6 Books of Accounts Prepared by: R I C H PH E R G. GAGA L AC THE TWO MAJOR BOOKS OF ACCOUNTS JOURNAL LEDGER of all company’s transactions listed by date. It is often referred to as the book of original entry. This is because we 1st record the business transactions in this book. The recording of financial information into the journal is known as the process of journalizing. General Journal – the simplest journal. Typically displays the transaction’s date, account titles and explanations, references, and respective amounts of corresponding accounts.  The standard contents of the general journal are as follows: 1. Date. 2. Account Titles and Explanation. 3. Reference number. 4. Debit. 5. Credit.  LEDGER After journalizing the business transactions in the general journal and special journals, the company will now proceed to the process of posting. Posting involves the transferring of journal entries to the ledger accounts to bring together the effect of the transactions to the individual accounts of the company.  LEDGER. Ledger – is the grouping of all accounts of a company showing its respective outstanding balances. It is also called the book of final entry of accounting transactions. It is also a “reference book” of the accounting system and is used to classify and summarize transactions, and to prepare data for basic financial statements. Logo here  LEDGER 1. Account title. 2. Ledger Account Reference Number 3. Date. 4. Explanation. 5. Reference. 6. Debit 7. Credit 8. Balance SPECIAL JOURNALS 12  SALES JOURNAL 1. Special Journal Title. 2. Special Journal Reference Number. 3. Date. 4. Account Debited. 5. Invoice Number. 6. Reference. 7. Dr. Accounts Receivable and Cr. Sales. 8. Total.  CASH RECEIPTS JOURNAL 1. Special Journal Title. 2. Special Journal Reference Number. 3. Date. 4. Account Credited. 5. Reference. 6. Dr. Cash. 7. Cr. Accounts Receivable, Sales, Other Accounts. PURCHASES JOURNAL 1. Special Journal Title. 2. Special Journal Reference Number. 3. Date. 4. Account Credited. 5. Terms. 6. Reference. 7. Dr. Merchandise Inventory, Cr. Accounts Payable. 8. Total.  CASH PAYMENTS JOURNAL 1. Special Journal Title. 2. Special Journal Reference Number. 3. Date. 4. Check Number. 5. Accounts Debited. 6. Reference. 7. Dr. Accounts Payable, Other Accounts. 8. Cr. Cash. 9. Totals. SUBSIDIARY LEDGERS SUBSIDIARY LEDGERS SUBSIDIARY LEDGERS To illustrate the recording of transactions in the general journal, let us use the first three (3) transactions we used in Week 4 as an example and the chart of accounts below: VID CO started operations after the lockdown with the following transactions on August 2020. The number on the leftmost part represents the date. a. 8/1 (August 1) Co invested PHP48,000 cash in the business. b. 8/1 Rented office space and paid PHP8,000 cash for the August rent. c. 8/1. Purchased exploration equipment for PHP22,000 by paying PHP12,000 cash and agreeing to pay the balance in 2 months. “ “ “ “ Finish  THANK YOU! KEEP SAFE AND HEALTHY! GOD BLESS!