ACCOUNTING

BOOK OF ACCOUNTS

This is also known as the diaries use in recording transactions.

The JOURNAL and LEDGER

So what is journal and ledger?

JOURNAL
It is referred to as the book of original entry

It shows the debit and credit effects on specific account

Entering transaction data in the journal is known as "Journalizing".

Ang journal daw ay tinatawag din na "book of Original entry."
Sa journal dito mo makikita ang initially recorded ng mga accounts.

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LEDGER
It is also called The book of final entry

Also referred to as the T-Account because the basic form of ledger is like the letter T.

Ganito po...
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Pa letter T talaga hahah imagine niyo nalang na perfect letter T yan hihi tapos malaki para magkasya pag lalagyan na natin ng amount

Entering transaction data in the Ledger is known as "Posting".

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There are two types of journal.
The GENERAL JOURNAL and SPECIAL JOURNAL

1. General Journal
Is the most basic journal.

It has spaces for dates, account titles and explanation, references and two amounts columns

2. Special Journal
Some business encounter voluminous quantities of similar and recurring transaction which may create congestion if these transactions are recorded repeatedly in a single day or a month

EXAMPLES OF SPECIAL JOURNAL
• CASH RECEIPT JOURNAL
Use to record all cash that has been received.

Also use to record all the receipts or collection of cash only

• CASH DISBURSEMENT JOURNAL
This is the opposite of cash receipt journal

Use to record all transactions involving cash payments.

• SALES JOURNAL
Also known as sales on account journal

It records several sales transaction.

Use to record all sales on credit (on account).

A/n: On account or on credit po means UTANG ^_^

• PURCHASE JOURNAL
Also known as purchase on account journal

Use to record all purchases of inventory on credit (on account)

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There are also two kinds of ledger.
The GENERAL LEDGER and SUBSIDIARY LEDGER

1. General ledger
Commonly referred by accounting professional as GL

It is a grouping of all accounts used in the preparation of financial statements.

It is the controlling account because it summarizes all the activities that have taken place as recorded

2. Subsidiary Ledger
A group of like accounts that contains the independent data of a specific general ledger.

Created or maintained if
individualized data is needed for a specific GL account.