2. Bookkeeping and Accounting
Essential business functions required for all
businesses.
Bookkeeping is responsible for the recording of
financial transactions.
Accounting is responsible for interpreting,
classifying, analyzing, reporting and summarizing
financial data.
The accounting process involves recording,
interpreting, classifying, analyzing, reporting and
summarizing financial data
4. TRANSACTION AND CORRESPONDING
SOURCE DOCUMENTS
• What are the usual
transactions in your
business?
• Revenues or Income
• Disbursements or Expenses
• Source Documents
• Receipts
• Voucher
5. CHART OF ACCOUNTS
• Chart of accounts - lista sang mga
ngalan sang accounts nga ginagamit
sa bookkeeping kag accounting
• Ledger
• Journals
• Category sang account titles
• Assets
• Liabilities
• Owner’s Equity
• Operating Revenues
• Operating Expenses
• Non-Operating Revenues & Gains
• Non-Operating Expenses & Losses
Balance Sheet
Accounts
Income
Statement
Accounts
7. POSTING
• Books of Accounts can either be
• Manual
• Loose leaf
• Computerized
• Books of Accounts
Cash on hand
• Cash Book
Books of Original Entry
• Cash Receipt Book
• Cash Disbursement Book
• General Journal
Book of Final Entry
• General Ledger
8. POSTING IN THE CASH BOOK
What?
Record of money going in and out of the
business;
One of the evidences when doing audit
or reconciliation;
Maintained by the person who handles
the money of the business.
Why?
• Provides information how much money
in your position at the end of the day or
at any time of the business period.
• Basis for decision-making
9. POSTING IN THE CASH BOOK: How?@
Date Explanation Reference
OR/SI/CV #
Cash In (P) Cash Out
(P)
Balance
(P)
Date – actual nga petsa sang natabo ang transaction kag
nasulat sang pasunod;
Explanation – paathag ukon ngalan sang nagbayad ukon
nagbayad sa negosyo;
Reference (OR/SI/CV #)– numero sang resibo ukon voucher
nga ginagamit sang negosyo.
Cash in – kantidad sang transaction nga nabaton sang negosyo;
Cash out – kantidad sang transaction nga ginbayad sang
negosyo
Balance – ang nabilin nga kantidad pagkatapos makabaton
ukon makabayad ang negosyo. Gina-add kon cash in kag gina-
subtract kon cash out. *
10. POSTING IN THE CASH RECEIPT BOOK
• What?
• Records of the different revenues or receipts
of the business.
• Why?
• Identify the different types of receipts;
• Identify the major source of business revenues
or receipts;
• Basis in decision-making.
11. POSTING IN THE CASH RECEIPT BOOK: HOW?*
Date – actual nga petsa sang natabo ang transaction kag nasulat
sang pasunod;
Payer – ngalan sang tao nga nagbayad sa negosyo;
Reference (OR/SI #)– numero sang resibo nga ginagamit sang
negosyo.
Total Amount – kabilugan nga kantidad sang resibo;
Note:
Ang masunod nga mga columns amo ang nagakalain-lain nga
klase sang baton sang negosyo. Ang titles sang column ang mga
account titles sa imo nga chart of accounts.
Date Payer Ref
(OR/SI #)
Total
Amount
Sales –
Cash
Accts
Receiva-
bles
Rent
Income
12. POSTING IN THE CASH DISBURSEMENT
BOOK
What?
• Record of disbursements or expenses of the
business.
Why?
• Identify the different types of disbursements;
• Determined the major expense items of the
business;
• Basis for decision-making.
13. POSTING IN THE CASH DISBURSEMENT BOOK: How? *
Date – actual nga petsa sang natabo ang transaction kag nasulat
sang pasunod;
Payee – ngalan sang tao nga ginbayaran sang negosyo;
Reference (OR/SI #)– numero sang voucher nga ginagamit sang
negosyo.
Total Amount – kabilugan nga kantidad sang voucher;
Note:
Ang masunod nga mga columns amo ang nagakalain-lain nga
klase sang ginbayaran sang negosyo. Ang titles sang column ang
mga account titles sa imo nga chart of accounts.
Date Payee Ref Total
Amount
PURC
HASES
TRAN
SPO
SALARI
ES/WAG
ES
EQUI
PMEN
T
LOAN
REPAY-
MENT
14. Subsidiary Records: Lista Sang Balayran or
Accounts Payables
Date Items Utang Bayad Balance
15-Jun-17 Ensaymada, etc. 200.00 200.00
20-Jun-17 Bayad 200.00 0.00
Monay, pandesal, etc 300.00 300.00
ex. Cherry Bakery
Summary of Payables
As of 31 December 2018
Name Amount Notes
15. Subsidiary Records: Lista Sang Sulokton or
Accounts Receivables
Date Items Utang Bayad Balance
15-Jun-17 Bugas, mantika, etc. 200.00 200.00
16-Jun-17 Habon, Lipid, Sardinas 85.00 285.00
17-Jun-17 Bugas, asin, lipid 80.00 365.00
18-Jun-17 Bayad-partial 300.00 65.00
19-Jun-17 Bugas, kape, kalamay 140.00 205.00
20-Jun-17 Bayad-full 205.00 0.00
ex. Juan
Summary of Receivables
As of 31 December 2018
Name Amount Notes
18. General Journal Depreciation
Table, Gasulito, Payong
Acquisition Cost: P1,400.00
Date Acquired: June 10, 2017
Estimated life span: 1 year/12 months
Date DepreciationBook Value
10-Jun-17 1,400.00
30-Jun-17 116.67 1,283.33
21. POSTING IN THE GENERAL LEDGER
What?
• This book shows the debit and credit position
of all the account titles used in the business;
• This is the first book that BIR will review when
it conducts its random spot checking.
Why?
• Facilitates the preparation of the financial
statements.
22. POSTING IN THE GENERAL LEDGER: How? *
Date – is the actual date when the transaction happened. It
should be written in the chronological order.
Details – shows the source of the transaction;
Debit – entries of the account title from the CRB/CDB
Credit – entries of the account title from the CRB/CDB
Balance – is the ongoing balance between debit and credit
Note:
As the book of final entry, data posted in the General Ledger is
from Cash Receipt Book, Cash Disbursement Book, Sales
Journal, Purchase Journal and the General Journal.
Date Details Debit Credit Balance
23. A Brief Look at the concept of Debit & Credit
DEBIT CREDIT
Assets
Expenses
Liability
Equity
Assets
Expenses
Liability
Equity
Date Details Debit Credit Balance
31 July
2016
Cash
Disbursement
(page 1)
4,050 4,050
31 August
Equipment - Oven
