Wonders of Accounting

04

Note: Kung sasagot po kayo ng pre and post assessment, sa inline comment po kayo sumagot para ma-check ko. At kung may mga tanong kayo, I already provided a statement for inline comments. Good luck and enjoy learning!

Additional: Ang maraming scores sa post assessments ay bibigyan ko ng tips (any tips, pwedeng tips sa pag-ibig hahaha jk tips sa pag-aaral o kung paano sasagot ng business transactions). I'll send it through PM so, answer wisely!

(For our examples and illustrations, I'll be sending it through PM in messenger or kindly follow the page for better illustrations "Wonders of Accounting". Comment lang kayo sa inline na gagawin ko.)

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4.0 Books of Accounts
(Journal & Ledger)

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There are two major types of books of accounts: journal and ledger. These two are the type of books in recording a business transaction.

The journal is referred as the book of original entry. It is the companies initial record of transactions and events in chronological order. The journal shows the debit and credit effects on specific accounts for each transactions.

There are two types of journal, generel journal and special journal.

For our lesson today, I will only discuss the general journal.

General Journal is the most basic journal. It has specific dates, account titles and explanations, references, and two amount columns which are the infamous debit and credit.

For example:
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                       GENERAL JOURNAL
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Date  |     Particulars     |  Ref  |    Dr.    |    Cr.

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(Note: Sorry, dear learners for the poor illustrations. I only used my tab to write that's why I can't attach pictures. Pwede niyo naman i-minimize ang font size ngunit mas maganda kung better ang images para mas maintindihan niyo. Don't worry I've come up with a plan, I will send the examples through PM in messenger. Just comment your fb acc or messenger sa mga interesado magpa-send here --> )

Question/s: Para sa'n po 'yong 'ref', 'dr' at 'cr'?

Answer: Ref means reference and dr is for debit and cr for credit which I'll further discuss later :)

Kung magsusulat kayo, don't write dr as debit and cr as credit, that is invalid. Always write DEBIT and CREDIT. Sinulat ko lang ng ganiyan upang magkasya, kaya 'wag niyong gayahin.
UPDATED: you can use DR and CR for debit and credit for they're the abbreviations of the two.

Always remember that the accounting equation will be maintained as the debit entry and will be accompanied by the credit entry as shown above (dr and cr). The total debits should always equal to credits.

If you enter any transaction data in the journal, it'll be called as journalizing. Journalizing will be the second step of the accounting cycle which I'll be discussing in the next lesson.