Wonders of Accounting

05

Hi, guys! Sorry kung ngayon lang nakabalik ang Ateng MJ niyo! Pasensiya na talaga at medyo naging busy ang buhay ko sa nakaraang buwan!

This book was supposed to end in March but due to my busy sched, it wasn't fulfilled. But as promised, I will finish this book, maybe this month or next month.

Hindi na ako magpapa-pre at post test kasi ang discussion natin ay mga steps sa Accounting Cycle. Kailangan ng mga examples at thorough understanding dahil ang part na 'to ang pinaka-crucial.

So, let's start with the first step: Transaction and/or Events.

Anong meron dito?

Financial Transaction are those activities that change the value of an asset, liability, or an equity. Financial transactions are recorded and that the amount can be measured.

Examples of a financial transaction:

•Payments of electric bill
•Investments
•Receipt of cash from a client

Example of a non-financial transaction:

•hiring employees

These are the following business documents used in financial transaction:

1. Official Receipt or Cash Receipt
- this document is used when a business receives money or a check.

2. Charge Invoice or Sales Invoice
- this document is used when a service is rendered but the client will be billed only after a certain number of days from the date of the service.

For example:

》in a car wash business, ang customer ay pwedeng mag-avail ng mga serbisyo nito. Ang customer at ang owner ay may agreement na ang serbisyo na na-avail ng customer ay babayarin after 2 weeks.

3. Check or Cash Voucher
- this document is used when a check is issued to pay a certain supplier or vendor.

SECOND STEP: Preparation of Journal Entry (journalizing)

Sa paggamit ng mga specialized journals (hindi ko 'to na-discuss sa last chapter) at general journal, ang mga transactions at events ay ilalagay sa accounting records. Ang tawag nito ay book of original entry.

Importante ang Debit at Credit sa journalizing.

Kailan mag-Debit at kailan mag-Credit?

Kapag nag-increase ang asset account (such as cash, accounts receivables, etc.) ang tawag niyan ay debit. Kapag nag-increase naman ang liability o ang equity ang tawag niyan ay credit.

RULES ON DEBITS & CREDITS

✔ Ang pangalan ng account na i-de-debit ay palaging nauunang isulat. Ang debited account ay nakasulat sa first column kasabay ang amount sa kaliwang side ng register.

✔ Ang credited account ay nakasulat sa ikalawang linya at dapat naka-indent. Ang credited amount ay nakasulat sa kanang side ng register.

✔ Ang total amount ng debit ay palaging balanse sa total amount ng credit.

- end -

Para mas lalong maintindihan, bisitahin ang aking page 'Wonders of Accounting' para sa mga halimbawa. Salamat!

If you learned a thing or two, share it with the others! 'Til next session, dear learners!

- Mavi J.