For Kapatid Agri-Mentor Me Program

1. Presented by:
MARICEL E. CARINO
Entrepreneurial Accounting
& Financial Management

3. BASIC ACCOUNTING for
NON-ACCOUNTANT

4. Accounting
• The language of business
• The communication of financial
information
• Deals with recording, summarizing,
reporting, reviewing and interpreting
financial information

5. ACCOUNTING
General Purpose of Financial Statements
Balance Sheet or Statement of Financial
Position
Statement of Revenues & Expenses or
Statement of Activities
Statement of Changes in Fund Balances
Statement of Cash Flow

6. ACCOUNTING
Specific Purpose of Financial Statements
Reports required by:
Donors
Managers
Other Stakeholders

7. Bookkeeping
• The systematic writing or recording of
business transaction or events
• The process of recording and classifying
business financial transaction/ activities.
• A person who does this job is called a
“Bookkeeper”

8. Bookkeeping’s Objective
• To record and summarize financial
transactions into a usable form that provides
financial information about a business or an
organization.

9. CASH RECEIPTS
Controls and Procedures

10. Overview
• The organization received cash from
grants, donations, gifts, supports,
membership fees, sales, special events
and other fund raising activities. The cash
received from the donors and from other
sources is either made through direct
collections, banking transactions like
remittances, or via internet.

11. Objectives
• To ensure that all cash receipts are properly
recorded when received and subsequently
deposited intact in the same forms as they
were received;
• To establish procedures which will facilitate
the flow of documents and information
through control points
• To establish a chain of accountability from the
time of receipt until collections are deposited
in the bank

12. Guidelines and Internal Control
1. All collections shall be covered by pre-
numbered Officials Receipts
2. All collections should be deposited intact in
the exact form and composition as received
not later than the following banking day
3. Physical handling of cash shall be the sole
responsibility of the Cashier and must
separated from recording and accounting
functions

13. Guidelines and Internal Control
6. The control and custody of all unused
official receipt booklets should be assigned
to a person other than the cashier. Used
booklets should be surrendered first before
new booklets maybe issued. The
maintenance of a control records of receipts
and issuance of this accountable form is
necessary in order to have a detailed record
of the movement of all OR booklets

14. Guidelines and Internal Control
5. Shortage shall paid or charged to the account
of the cashier, overages shall be deposited to the
organizations account

15. CASH RECEIPTS: Form used and
supporting documents
• Officials Receipts
• Bank Deposit Slips

17. Official Receipts
• It is issued for every receipt of funds either in
the form of cash or check. The form is pre-
printed in sets of three copies, pre numbered
and bound in booklet. Before its use, the OR
booklets must be registered with the BIR

18. OFFICIAL RECEIPTS
• It is prepared in three copies, the original
(white copy) goes to person/entity
making the payment, the duplicate (pink
copy) goes to accountant/Bookkeeper for
recording the cash received in the cash
receipts journal. The triplicate (blue copy)
is retained in the booklet for inspection
by regulatory bodies such as the BIR

19. CASH
DISBURSEMENTS
Objective, Controls and Procedures

20. OVERVIEW
• The Organization shall disburse funds in
accordance with the budget line items
approved by the BOD or by its
donors/grantors in case of restricted grants
• Accounting procedures for the cash
disbursement process must be organized to
provide practical and reasonable assurance
that only authorized or approved payments
are made and accurate records are
maintained for each payments

21. Objectives
• To ensure that only properly authorized
expenses and purchase which have already
been incurred and received are vouched and
paid for.

22. Guidelines and Internal Control
1. The system will strictly follow the
voucher method which is characterized
by three basic activities as follows:
a) Vouching
b) Paying
c) Recording

23. Guidelines and Internal Control
• 2. All documents shall stamped “PAID” once
the payment is received by payee.

24. Formed to be Used
• Request for payment
• Cash vouchers

26. LIQUIDATION OF
CASH ADVANCES
Objectives, Controls and Procedures

27. Objectives
• To ensure that the cash is disbursed for
authorized employee who made the cash
advance and request for payment
• To ensure the liquidation of cash advance
is properly supported by documents and
approved by authorities
• To ensure the proper control over the cash
advance and its liquidation is implemented

28. Guidelines and Internal Control
• The liquidation report must properly
supported by receipts or supporting
documents
• If there is still amount to reimbursed, the
concerned employees shall request for the
payment of the reimbursable amount
• For the excess money of the cash advance, the
concerned employee should return the money
and shall issue OR

29. Forms to be used
• Journal vouchers

31. Basic Accounting Procedure
a. Making Trial Balance
b. Preparing Income
Statement
c. Preparing Balance Sheet
Step 1 Step 3
Bookkeeping
a. Recordkeeping
b. Journalizing
c. Posting
Preparing Financial
Statements
Closing the
books
Step 1

32. Step1: Bookkeeping
A. Recordkeeping- is the process of sorting
and recording the day to day transaction
1. Receipts are recorded by the issuance of
an official receipt or acknowledgement
receipt
2. Disbursements are recorded in
disbursement voucher

33. B. Journalizing- is the process of recording
business transaction in the journal. The
books of which the bookkeeper journalize is
what we call the books of original entry.
They are the following books:
1. Receipts are recorded in the Receipts
book
2. Disbursements are recorded in the
Disbursement Book
3. Non-Cash Transaction are recorded in the
Journal Book

34. Rules of Debit and Credit
1. Always debit the expenses and always
credit the cash or cash in bank
Example of expense accounts
• Communication
• Transportation Expenses
• Travel Expenses
• Meeting/Accommodations
• Interest Expenses
• Taxes and licenses
• Office supplies

35. 2. When there is a receipt of cash through
sales, interest income, etc
Debit cash or cash in bank
credit sales, interest income
3. When there is receipt of cash from
accounts payable
Debit Cash or cash in bank
Credit Accounts Payable
4. When there is receipt of Capital
Debit cash
Credit Capital

36. C. Posting- is the process of transferring
information from the books of original
entry
Steps:
1. Locate the corresponding account in
the General Ledger
2. Transfer the debited amount to the
left side
3. Transfers the credited amount to the
right side
4. After posting get the totals of the
debit and credit to determine the
debit & credit balance

37. Maintained documents:
• Disbursements
• Receipts
• Receivables
• Inventories
• Property, plants and Equipments
• Current Liabilities/Accounts Payable
• Owners Members Equity
• Sales and Other Revenues

38. • Purchases
• Cash Book
• Disbursement Book
• Receipt Book
• Journal Book
• Bank Books
• Financial Statements
• Monthly Trial Balance
• Petty Cash Fund

39. Basic Accounting Model
LiabilitiesAssets Members
Equity
Sources of Business
Resources
Business
Resources

40. • Current Assets
Cash on Hand
Cash in Bank
Petty Cash Fund
Loans Receivable
Accounts Receivable
Assets

41. Assets
• Non-Current Assets
Investment
Land
Furniture, Fixture & Equipment

42. Liabilities
• Current Liabilities
Accounts Payable
Loans Payable
Interest on Share Capital
Patronage Refund Payable

43. Equity
• Donations/Grants
• Share Capital
• Statutory Funds
Reserved Fund
Education & Training Fund
Community Dev’t. Fund
Optional Fund

44. Maraming
Salamat
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