3. SPECIFIC LEARNING
1 Understand the chart of accounts
2 Analyze the transaction using rules of debit and credit
3
Journalize the different kinds of business
transactions of a Single Proprietorship
4 Use appropriate account titles
5 List account titles and know how to journalize
4. 1 Chart of Accounts.
2 Illustration
3 Asset Titles
4 Liability Titles.
5 Proprietorship Titles
6 Income Titles
7 Expense Titles
8 Accounting Period and Accounting Cycle
9 Journalizing
10
Illustration
11
Procedures in Journalizing
12
Journal Entries Illustration
6. CHART OF ACCOUNT
E. Mortiz, lawyer
100 Assets 400 Income
111 Cash 411 Professional fees Income
112 Accounts Receivable-United Bank 500 Expenses
113 Library 511 Insurance Expense
114 Office Equipment 512 Salaries
115 Office Supplies 513 Interest Expense
200 Liabilities 514 Utilities
211 Notes Payable
212 Accounts Payable-Office Supply Trading
300 Owner's Equity
311 E. Mortiz, Capital
313 E. Mortiz, Personal
7. TRANSACTIONS
March 1- Began the practice of law by investing P3,000 in cash and a law library having a fair value of
P5,000.
March 2- Purchased P4,200 of office equipment, paying P1,200 down and giving a promissory note for
the balance.
March 3- Purchased P250 office supplies and P150 office equipment from Office Supply Trading on
credit
March 6- Completed legal work for R. Moore and collected P2 200 in full payment.
March 10 - Paid insurance premiums P550.
March 15 - Completed legal work for United Bank on credit and billed it P1,200 the work done.
March 15- Paid the secretary's salary, P600.
March 18 - Paid Office Supply Trading for the items purchased on the third of the month.
March 25- Received a check from United Bank as full payment of its account.
March 28- E. Mortiz withdrew P800 from the business for his personal use.
March 30- Paid the secretary's salary, P600.
March 31-Paid P60 interest expenses and P1,000 installment due on the note payable.
8. is the process of transferring the records
from the journal to the ledger. A ledger
constitutes a group of accounts. It is also
called the book of final entry.
Posting
9. LEDGER ILLUSTRATION
Consists of 8 columns
ACCOUNTS TITLE FOLIO
MONTH DAY EXPLANATION GJ# PHP PHP
DAY EXPLANATION GJ# PHP PHP
RUNNING BALANCE
10. 1. Items of similar nature are grouped
together.
Need for a ledger
2. It is easier to locate the item if an
information about it is needed.
12. Procedure in posting
2. Transfer to the ledger the following information from
the journal:
a. Date
b. Explanation
c. Amount
Debit accounts from the journal are posted on the debit
side of the ledger and credit accounts are posted on the
credit side of the ledger.
16. ACCOUNT RECEIVABLE – UNITED BANK ACCOUNT NO. 112
DATE ITEMS F DR CR
BALANCE
DR CR
MARCH 15 Service Rendered GJ 1 1200 1200
25 Cash Received GJ 2 1200 0
17. LIBRARY ACCOUNT NO. 113
DATE ITEMS
F
DR CR
BALANCE
DR CR
MARCH 1 Initial Investment GJ 1 5000 5000
18. OFFICE EQUIPMENT ACCOUNT NO. 114
DATE ITEMS F
DR CR
BALANCE
DR CR
MARCH 2 Purchase On Cash GJ 1 4200 4200
3 Purchase On Credit GJ 1 150 4350
19. OFFICE SUPPLIES ACCOUNT NO. 115
DATE ITEMS F DR CR
BALANCE
DR CR
MARCH 3 Purchase On Credit GJ 1 250 250
20. NOTES PAYABLE ACCOUNT NO. 211
DATE ITEMS F DR CR
BALANCE
DR CR
MARCH 2 Purchase On Credit GJ 2 3000 3000
31 Partial Payment GJ 4 1000 2000
21. ACCOUNTS PAYABLE – OFFICE SUPPLY TRDG. ACCOUNT NO. 212
DATE ITEMS F
DR CR
BALANCE
DR CR
MARCH 3 Purchase GJ 1 400 400
18 Payment GJ 2 400 0
23. E. MORTIZ, PERSONAL ACCOUNT NO. 312
DATE ITEMS F DR CR
BALANCE
DR CR
MARCH 28 Withdrawal Of Owner GJ4 800 800
24. PROFESSIONAL FEES INCOME ACCOUNT
NO.
411
DATE ITEMS F
DR CR
BALANCE
DR CR
MARCH 6 Service Rendered GJ 1 2200 2200
15 Service Rendered GJ 2 1200 3400
25. INSURANCE EXPENSE ACCOUNT NO. 511
DATE ITEMS F
DR CR
BALANCE
DR CR
MARCH 10 Payment Of Insurance GJ 3 550 550
26. SALARIES ACCOUNT NO. 512
DATE ITEMS F
DR CR
BALANCE
DR CR
MARC
H
15 Payment Of Salaries GJ 3 600 600
30 Payment Of Salaries GJ 4 600 1200
27. INTEREST EXPENSE ACCOUNT NO. 513
DATE ITEMS F
DR CR
BALANCE
DR CR
MARCH 31 Interest Due GJ 4 60 60
28. UTILITIES ACCOUNT NO. 514
DATE ITEMS F
DR CR
BALANCE
DR CR
MARCH 31 Payment Of Expense GJ 4 250 250
