JOURNALIZING

Fundamentals of Accountancy, Business and Management 1

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1. (REGLDE)
It is known as the book of final entry.
LEDGER
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2. (HASC MENTSURSEDISB LONJARU)

It used to record all transactions involving cash
payments.

CASH DISBURSEMENTS JOURNAL

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3. (HAPCSEUR LONJARU)
It used to record all purchases of
inventory on credit (or on account).
PURCHASE JOURNAL
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4. (HASC TSEIPREC LONJARU)

It used to record all transaction involving receipt or
collection of cash that has been received.

CASH RECEIPTS JOURNAL

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5. (LONJARU)
It is called the book of original entry.
JOURNAL
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6. (LESAS LONJARU)
It used to record all sales transactions on
credit (on account)

SALES JOURNAL
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7. (ITPGSNO)
It is the process of transferring
information from the journal to the ledger.
POSTING
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8. (RAGELNE REGLDE)
It is a grouping of all accounts used in the
preparation of financial statements.
GENERAL LEDGER
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9. (RAGELNE LONJARU)
It is the first place where data is recorded, and every
page in the item features columns for dates, serial
numbers, as well as debit or credit records.
GENERAL JOURNAL
 OBJECTIVE
At the end of the lesson, learners will be able to:
1) Define journalizing.
2) Prepare journal entry.
3) Apply their knowledge of journalizing to analyze and
evaluate real-world scenarios.
4) Reflect on the importance of honesty and accuracy in
accounting, recognizing how these values play a crucial role
in maintaining trust and integrity in financial reporting.
 MOTIVATION

JOURNAL
DIARY
a chronological record of business transactions
it show all the effects of each transaction in
JOURNAL
terms of debit and credits.
➢Process of recording a daily activities
involving financial transactions of a
business in a journal.
➢Double entry system
➢Requires reflection and careful
analysis of each transaction to
JOURNALIZING
determine which accounts are affected
and whether they should be debited
or credited.
 Types of Journal
1) SIMPLE ENTRY – only two accounts are affected, one debit account
and one credit account.
Date Particulars P.R. DEBIT CREDIT
Feb 25, 2024 Accounts Payable ₱ 60,000.00
Cash in Bank ₱ 60,000.00
To record partial payment of accounts

2) COMPOUND ENTRY – three or more accounts are affected

Date Particulars P.R. DEBIT CREDIT
Aug 04, 2024 Rent Expense ₱ 5,000.00
Salaries 10,000.00
Cash in Bank ₱ 15,000.00
To record payment for various expenses
DEBIT CREDIT and

• Left Side • Right Side

• Debere (Latin) • Credere (Latin)
• DR • CR
• VALUE RECEIVED • VALUE PARTED WITH
• Asset, Expense, Drawings • Liabilities, Owner’s Equity
& Dividends & Revenue
How are business transactions analyzed?
Business transactions are analyzed from the view point of
the business.
▪ If the transaction is “Purchase” or “Buy” –business that is buying
▪ If the transaction pertains to “Selling” – business that sells
▪ If the transaction is about “Payment” – business that is paying
▪ If the transaction relates to “Collection” – business that collects
▪ If the transaction relates is “Rendering Services” – business that
renders service
 How are business transactions analyzed?
The value received or debit should first be determined
before the value parted with or credit.
Example #1:
If I’ll give you an eraser and you will give me a piece of chalk in
return as an exchange, can you determine the value received and
the value parted with?
Answer: Value Received – ERASER
Value Parted With – PIECE OF CHALK

Debit Credit
– Eraser – Piece of Chalk
 How are business transactions analyzed?
The value received or debit should first be determined
before the value parted with or credit.
Example #2:
If I’ll give you a ballpen and you will give me a piece of paper in
return as an exchange, can you determine the value received and
the value parted with?
Answer: Value Received – Ballpen
Value Parted With – Piece of Paper

Debit – BALLPEN Credit – PIECE OF PAPER

 How are business transactions analyzed?

Example #3 Bought a car for cash, ₱650,000.00

The following questions are answered for your guide:
1. Who bought the car?
Answer: the business Identifying
2. What is the value received?
Answer: Car Analyzing
3. What is the value parted with?
Answer: Cash, Money
4. What is the peso equivalent?
Answer: ₱650,000.00
Measuring
Debit, value received - CAR
JOURNALIZING
Credit, value parted with - ₱650,000.00
 How are business transactions analyzed?

Example #4 Sold a car for cash, ₱750,000.00

The following questions are answered for your guide:
1. Who sold the car?
Answer: the business Identifying
2. What is the value received?
Answer: Cash, Money Analyzing
3. What is the value parted with?
Answer: Car
4. What is the peso equivalent?
Answer: ₱750,000.00
Measuring
Debit, value received – CASH ₱750,000.00
JOURNALIZING
Credit, value parted with - CAR
Normal balances of major accounts and contra-asset accounts
NORMAL BALANCE INCREASE (+) DECREASE (-)
ASSET DEBIT DEBIT CREDIT
LIABILITIES CREDIT CREDIT DEBIT
OWNER’S EQUITY:
▪ Owner’s Capital CREDIT CREDIT DEBIT
▪ Owner’s Drawing DEBIT DEBIT CREDIT
REVENUES CREDIT CREDIT DEBIT
EXPENSES DEBIT DEBIT CREDIT
CONTRA-ASSET
▪ Doubtful Accounts CREDIT CREDIT DEBIT
▪ Accumulated Depreciations CREDIT CREDIT DEBIT
To recapitulate, the developed rules of debit and credit are again
restated as follows:
We debit to: We credit to:
Rule 1: Increase in Asset Decrease in Asset
Rule 2: Decrease in Liability Increase in Liability
Rule 3: Decrease in Owner’s Equity Increase in Owner’s Equity
Rule 4: Increase in Drawing Decrease in Drawing

Temporary Accounts
Rule 5: Decrease in Income or Increase in Income or
Sales Revenue Sales Revenue
Rule 6: Increase in Cost & Expenses Decrease in Cost & Expenses
 Example #1

Purchase of laundry equipment for cash, ₱150,000.00

VALUE RECEIVED? debit credit

laundry cash
VALUE PARTED WITH? equipment

Journal Entry
Particulars P.R. DEBIT CREDIT
Laundry Equipment ₱ 150,000.00
Cash ₱ 150,000.00
To record purchase laundry equipment for cash
 Example #2

Rendered laundry services on account to various customers

amounting to ₱80,000

Value received? ACCOUNTS RECEIVABLE

Value parted with? SERVICE INCOME
Journal Entry
Particulars P.R. DEBIT CREDIT
Accounts Receivable ₱ 80,000.00
Service Income ₱ 80,000.00
To record service rendered on credit
Performance Drill
Molina’s Photo Service as of December 31:
Dec. 1 – Mr. Paolo Molina engaged in a photo service
business with capital composed of Cash ₱17,000;
Building ₱50,000 and Land ₱20,000
Date Particulars P.R. DEBIT CREDIT
Dec 01 Cash ₱17,000.00
Building 50,000.00
Land 20,000.00
P. Molina, Capital ₱87,000.00
To record initial investment of Paolo Molina
 Performance Drill
Dec. 12 – Office Equipment has been acquired at a
cost of ₱3,400
Journal Entry
Date Particulars P.R. DEBIT CREDIT
Dec 12 Office Equipment ₱ 3,400.00
Cash ₱ 3,400.00
To record office equipment bought
 Performance Drill

Dec. 14 – Received ₱6,000 cash for services rendered.

Journal Entry

Date Particulars P.R. DEBIT CREDIT

Dec 14 Cash ₱ 6,000.00
Service Income ₱ 6,000.00
To record service rendered
 Performance Drill

Dec. 17 – P. Molina buys Furniture from Antik, Inc.

for ₱5,000 on credit.
Journal Entry
Date Particulars P.R. DEBIT CREDIT
Dec 17 Furniture ₱ 5,000.00
Accounts Payable ₱ 5,000.00
Torecord furniture purhcased on credit
Performance Drill

Dec. 20 – Rendered services in the amount of ₱6,000

on credit.

Journal Entry

Date Particulars P.R. DEBIT CREDIT

Dec 20 Accounts Receivable ₱ 6,000.00
Service Income ₱ 6,000.00
To record service rendered on credit
Performance Drill

Dec. 27 – Pays ₱ 5,000 cash to Antik, Inc.

Date Particulars P.R. DEBIT CREDIT

Dec 27 Accounts Payable ₱ 5,000.00
Cash ₱ 5,000.00
To record cash payment of account to Antik Inc.
Performance Drill

Dec. 29 – P. Molina withdrew ₱1,000 cash for his

personal use.
Journal Entry
Date Particulars P.R. DEBIT CREDIT
Dec 29 P. Molina, Drawing ₱ 1,000.00
Cash ₱ 1,000.00
To record P. Molina withdrawal
Performance Drill

Dec. 30 – Received collection from services

rendered last December 20 amounting to ₱6,000.
Journal Entry

Date Particulars P.R. DEBIT CREDIT

Dec 30 Cash ₱ 6,000.00
Accounts Receivable ₱ 6,000.00
To record collection from service rendered last Dec. 20
Performance Drill

Dec. 31 – Paid Electric ₱1,000; Water ₱300 and

Salaries ₱6,000.

Journal Entry
Date Particulars P.R. DEBIT CREDIT
Dec 31 Utilities ₱ 1,300.00
Salaries 6,000.00
Cash ₱ 7,300.00
To record collection from service rendered last Dec. 20
 RECAP & GENERALIZATION

What is the purpose of journal?

➢ To record all business transactions in a chronological order.

What is the importance of journalizing?

➢ A process of recording business transactions that ensures balance
which maintain the record keeping precise.”
What are the two values involved in a business transactions?
➢ VALUE RECEIVED, and VALUE PARTED WITH, whereas each
values represent the debit and credit side recording of business
transaction
 APPLICATION
Prepare the journal entry below:
July 1 – Yasol Tesonaga started a delivery service called TEYA
LOGISTICS, INC. She invested ₱800,000 cash and Cars amounting to
₱200,000.
July 7 – Tesonaga bought tables and chairs from Orocan and paid
₱45,000 cash.
July 18 – Purchased equipment on account from Faith Labista, Inc. for
₱55,000.
July 24 – Tesonaga made cash withdrawal of ₱5,000 for personal use.
July 30 – The account due to Faith Labista, Inc. paid in cash.
 Assignment
Journalize each transaction using appropriate account title.
CA AUTO SHOP CHART OF ACCOUNT

ASSET 100 REVENUE 400

Cash 101 SERVICE INCOME 401
Accounts Receivable 102
Supplies 103 EXPENSES 500
Equipment 104 SUPPLIES USED 501
Delivery Truck 105 RENT EXPENSE 502
REPAIRS AND MAINTENANCE 503
LIABILITIES 200 UTILITIES 504
Accounts Payable 201 TAXES AND LICENCES 505
SALARIES EXPENSES 506
OWNER'S EQUITY 300
CARLOS AQUINO, CAPITAL 301
CARLOS AQUINO, DRAWING 302
 Assignment
March 1 Carlos Aquino opened auto shop business called the “CA Auto
Shop” with capital composed of Cash ₱20,000; Auto Shop Supplies ₱4,000;
Wheel Alignment Machine ₱80,000.
March 2 - Paid business tax to the City Treasurer, ₱1,600.
March 4 - Purchased a delivery truck from the Northern Motors for
₱120,000 on credit.
March 5 - Paid rent of the building for the month, ₱2,000.
March 6 - Received ₱6,000 cash for car repair to various customers.
March 8 - Sent charge bill, ₱4,000, for auto repair on credit to the Lohas
Hotel.
 Assignment
March 10 - Bought supplies on credit from Toyota Supply Store, ₱3,000.
March 15 - Sent charge bills for service rendered on credit to Mug Shop
₱4,000; Sinai Hotel ₱5,000 and paid two weeks’ salary of the truck driver
₱1,500.
March 20 - Received cash as collections on credit from Lohas Hotel ₱2,000;
Mug Shop ₱1,600 and Sinai Hotel ₱2,800
March 25 - Received ₱4,400 cash for overhaul repair to various customers.
March 26 - ₱Paid 1,800 to Toyota Supply Store in partial payment of the
debt owing to it.
Carlos Morales withdrew ₱1,000 cash for his personal use.
 Assignment
March 27 - Paid ₱1,400 to repairman for repair service on the
wheel alignment machine.
March 31 - Paid in cash the following: Truck driver’s two weeks’
salary ₱1,500; Auto Shop Cashier and Sales Lady salaries ₱4,500;
Water and electric bill ₱1,700;
March 31 - Repair cars to the following: Cash customers ₱2,600;
Lohas Hotel (on credit) ₱1,900; Sinai Hotel (on credit) ₱2,400
An actual count showed that of the auto shop supplies invested
and bought, only ₱2,000 worth of supplies remain unused, while
the ₱5,000 worth of supplies were used during the month.
 Assignment
March 1 Carlos Aquino opened auto shop business called the “CA Auto Shop” with capital composed of Cash ₱20,000; Auto Shop Supplies ₱4,000; Wheel Alignment Machine ₱80,000.

March 2 - Paid business tax to the City Treasurer, ₱1,600.

March 4 - Purchased a delivery truck from the Northern Motors for ₱120,000 on credit.

March 5 - Paid rent of the building for the month, ₱2,000.

March 6 - Received ₱6,000 cash for car repair to various customers.

March 8 - Sent charge bill, ₱4,000, for auto repair on credit to the Lohas Hotel.

March 10 - Bought supplies on credit from Toyota Supply Store, ₱3,000.

March 15 - Sent charge bills for service rendered on credit to Mug Shop ₱4,000; Sinai Hotel ₱5,000 and paid two weeks’ salary of the truck driver ₱1,500.

March 20 - Received cash as collections on credit from Lohas Hotel ₱2,000; Mug Shop ₱1,600 and Sinai Hotel ₱2,800

March 25 - Received ₱4,400 cash for overhaul repair to various customers.

March 26 - ₱Paid 1,800 to Toyota Supply Store in partial payment of the debt owing to it.

Carlos Morales withdrew ₱1,000 cash for his personal use.

March 27 - Paid ₱1,400 to repairman for repair service on the wheel alignment machine.

March 31 - Paid in cash the following: Truck driver’s two weeks’ salary ₱1,500; Auto Shop Cashier and Sales Lady salaries ₱4,500; Water and electric bill ₱1,700;

March 31 - Repair cars to the following: Cash customers ₱2,600; Lohas Hotel (on credit) ₱1,900; Sinai Hotel (on credit) ₱2,400

An actual count showed that of the auto shop supplies invested and bought, only ₱2,000 worth of supplies remain unused, while the ₱5,000 worth of supplies were used during the month.
 BOOK OF ACCOUNTS
Using the terms you learned in the module, fill in the
blank boxes accordingly.

JOURNAL LEDGER

General Special General Special

Journal Journal Ledger Ledger