BOOK OF ACCOUNTS

Prepared by:
Marichu C. Carretas
CHECK YOUR ANSWERS:

1. It is also called as the “book of original entries”, the accounting record

where business transactions are first recorded.

a. General Journal c. Journal

b. Ledger d. Special Journal
2. The journal simplifies the recording process, thus providing an efficient
way of recording and retrieving of information.

a. General Journal c. Journal

b. Ledger d. Special Journal
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3.. The following are the types of special journal except?
a. Cash disbursement journal c. General journal
b. Cash receipt journal d. Purchases journal

4. Journal is used for what type of accounting process?

a. Summarizing c. Journalizing
b. Posting d. Measuring .

5. Ledger is used for what type of accounting process?

a. Summarizing b. Journalizing
c. Posting d. Measuring

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6. . This is the book of final entry.
a. general journal c. subsidiary ledger
b. general ledger d. special journals

7. This contains the details supporting the balance in the general ledger
account.
a. general ledger c. ledger
b. subsidiary ledger d. none of the above

8. This is used to record cash payments.

a. cash disbursement journal c. purchase journal

b. cash receipts journal d. sales journal 4

9. This is used to record sales on credit.
a. cash disbursement journal c. sales journal
b. purchase journal d. ledger

10. This is used to record cash receipts.

a. Ledger c. cash disbursement journal
b. cash receipts journal d. journal

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 What is Today’s Deal?

After completing the SIM, the students should be able to:

▰ a. illustrate the format of general and special journals and

▰ b. illustrate the format of general and subsidiary ledger

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 ACCOUNTING PROCESS
involves in the selection of the economic events
IDENTIFYING which are important to a particular business
transaction.

is the act of keeping a chronological record of

RECORDING events that are measurable in accounting
documents like journals and ledgers

refers to the process of communicating

financial reports to the users of financial
COMMUNICATING information

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BOOK OF ACCOUNTS

BOOKS OF ACCOUNTS
Used to record events transpiring in the
course of the business

JOURNAL LEDGER
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BOOK OF ACCOUNTS

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 JOURNAL

JOURNAL - “Book of Entry”

used to record all transactions and
events initially in chronological order

Types of journal
1. General Journal
2. Special Journals
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 JOURNAL

The process of recording the

JOURNALIZING transactions to the general
journal

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 GENERAL JOURNAL

1. General Journal
This general journal is the most basic journal.

General Journal GJ 1
Date Account titles and Explanation Ref Debit Credit

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 BOOK OF ACCOUNTS General Journal
General Journal GJ 1
Date Account titles and Explanation Ref Debit Credit
06/01 Cash 500,000
Owner’s Capital 500,000
To record the owner investment

On June 1, 2020, the owner invested P500,000 to

start the business

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 SPECIAL JOURNALS

2. Special Journals
These journals are used to record specific types of high-volume
information that would otherwise be recorded in and overwhelm the
general ledger.

1) Sales Journal (Sales on Account Journal)

2) Cash Receipts Journal
3) Cash Disbursement Journal
4) Purchase Journal (Purchase on Account Journal)
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 SPECIAL JOURNALS

SALES JOURNALS
This is used to record all sales on credit or on
Sales Journal account.
SJ 1
Date Account Debited Invoice No. Ref. Dr. Accounts Receivable
Cr. Sales

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 BOOK OF ACCOUNTS
SALES JOURNALS
Sales Journal SJ 1
Date Account Debited Invoice No. Ref. Dr. Accounts Receivable
Cr. Sales
June 10 Diego Ramos 12345 60,000
June 11 Leon Fuentes 12346 30,000

June 10 Sold 2 units of laptop to Diego Ramos on credit, P60,000 (Invoice No. 12345)
June 11 Sold 1 unit of laptop to Leon Fuentes on account, P30,000 (Invoice No. 12346)

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 SPECIAL JOURNALS

CASH RECEIPTS JOURNAL

This is used to record all the cash that has been received.

Cash Receipts Journal CR1

Date Account Credited Ref Dr Cash Cr Accounts Cr Sales Cr Other
Receivable accounts

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 CASH
BOOK OF ACCOUNTS RECEIPTS JOURNALS
Cash Receipts Journal CR1
Date Account Credited Ref Dr Cash Cr Accounts Cr Sales Cr Other
Receivable accounts
June 15 Deigo Ramos 60,000 60,000
June 15 Carl Publico 30,000 30,000

June 15 Collected P60,000 from Deigo Ramos

June 15 Sold 1 unit of laptop to Carl Publico for cash, 30,000

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 SPECIAL JOURNALS

PURCHASE JOURNAL
This is used to record all purchases of inventory on credit or on
account.
Purchase Journal PJ1
Date Account Credited Ref Sales Invoice Debit Purchases Credit Accounts
(Supplier’s Name) No. ( from Payable
supplier)

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 PURCHASE
BOOK OF ACCOUNTS JOURNALS

Purchase Journal PJ1

Date Account Credited Ref Sales Invoice Debit Purchases Credit Accounts
(Supplier’s Name) No. ( from Payable
supplier)
June 05 Echpi Trading 002011 40,000 40,000

June 05 Purchased 2 units of Laptop from Echpi Trading, P40,000 (Invoice: 002011)

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 SPECIAL JOURNALS

CASH DISBURSMENTS JOURNAL

This is used to record all the transactions involving cash payments.

Cash Disbursements Journal CD1

Date Description P.R. Check or Credit Cash Debit Debit Debit Credit
(Particulars) Voucher Accounts Salaries Supplies Sundry
No.
Payable

               
       
                 

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 BOOK OF ACCOUNTS
CASH DISBURSEMENTS JOURNALS
Cash Disbursements Journal CD1
Date Description Ref. Check or Credit Cash Debit Debit Debit Credit
(Particulars) Voucher Accounts Salaries Supplies Sundry
No.
Payable

June 05   Echpi Trading    1234567   40,000   40,000      

       
                 

June 30 Paid Echpi Trading the amount of P40,000 (Check #: 1234567)

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 BOOK OF ACCOUNTS

LEDGER “book of final entry”

- all the balances in the ledger are used in the
preparation of financial statements
- Posted periodically

Types of Ledger
1. General Ledger
2. Subsidiary Ledger
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JOURNAL

The process of transferring an entry

POSTING or item from a book of original entry
to the proper account in a ledger

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 GENERAL LEDGER

1. General Ledger
- grouping of all accounts used in the preparation of financial
statements.
- Also known as controlling account
Account Title: Account No.:
DATE ITEM P.R. Debit Credit Balance
           

           

           

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General Journal GJ 1
Date Account titles and Explanation Ref Debit Credit
BOOK OF ACCOUNTS
06/01 Cash 500,000
Owner’s Capital 500,000
To record the owner’s investment

General Ledger
Cash 1-001
DATE ITEM P.R. Debit Credit Balance

 
June 1  
Owner’s investment  
GJ1   500,000     500,000
           

           

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General Journal GJ 1
Date Account titles and Explanation Ref Debit Credit
BOOK OF ACCOUNTS
06/01 Cash 500,000
Owner’s Capital 500,000
To record the owner’s investment

General Ledger
Cash 1-001
DATE ITEM P.R. Debit Credit Balance

 
June 1  
Owner’s investment  
GJ1   500,000     500,000
           

           

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General Journal GJ 1
Date Account titles and Explanation Ref Debit Credit
BOOK OF ACCOUNTS
06/01 Cash 500,000
Owner’s Capital 500,000
To record the owner’s investment

General Ledger
Cash 1-001
DATE ITEM P.R. Debit Credit Balance

 
June 1  
Owner’s investment  
GJ1   500,000     500,000
           

           

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General Journal GJ 1
Date Account titles and Explanation Ref Debit Credit
BOOK OF ACCOUNTS
06/01 Cash 500,000
Owner’s Capital 500,000
To record the owner’s investment

General Ledger
Cash 1-001
DATE ITEM P.R. Debit Credit Balance

 
June 1  
Owner’s investment  
GJ1   500,000     500,000
           

           

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General Journal GJ 1
Date Account titles and Explanation Ref Debit Credit
BOOK OF ACCOUNTS
06/01 Cash 500,000
Owner’s Capital 500,000
To record the owner’s investment

General Ledger
Cash 1-001
DATE ITEM P.R. Debit Credit Balance

 
June 1  
Owner’s investment  
GJ1   500,000     500,000
           

           

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General Journal GJ 1
Date Account titles and Explanation Ref Debit Credit
BOOK OF ACCOUNTS
06/01 Cash 1-001 500,000
Owner’s Capital 500,000
To record the owner’s investment

General Ledger
Cash 1-001
DATE ITEM P.R. Debit Credit Balance

 
June 1  
Owner’s investment  
GJ1   500,000     500,000
           

           

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General Journal GJ 1
Date Account titles and Explanation Ref Debit Credit
BOOK OF ACCOUNTS
06/01 Cash 1-001 500,000
Owner’s Capital 3-001 500,000
To record the owner’s investment

General Ledger
Owner’s Capital 3-001
DATE ITEM P.R. Debit Credit Balance

 
June 1  
Owner’s investment  
GJ1     500,000   500,000
           

           

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General Journal GJ 1
Date Account titles and Explanation Ref Debit Credit
BOOK OF ACCOUNTS
06/01 Cash 1-001 500,000
Owner’s Capital 3-001 500,000
To record the owner’s investment

General Ledger
Owner’s Capital 3-001
DATE ITEM P.R. Debit Credit Balance

 
June 1  
Owner’s investment  
GJ1     500,000   500,000
           

           

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General Journal GJ 1
Date Account titles and Explanation Ref Debit Credit
BOOK OF ACCOUNTS
06/01 Cash 1-001 500,000
Owner’s Capital 3-001 500,000
To record the owner’s investment

General Ledger
Owner’s Capital 3-001
DATE ITEM P.R. Debit Credit Balance

 
June 1  
Owner’s investment  
GJ1     500,000   500,000
           

           

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 SUBSIDIARY LEDGER

2. Subsidiary Ledger
- a group of similar accounts that consists of an independent data of
a specific general ledger
Accounts Payable
Subsidiary Ledger
Vendor/Supplier: Vendor No.:
Address:
DATE ITEM P.R. Debit Credit Balance

           
           

           
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 Purchase Journal PJ1
Date Account Credited Ref Sales Invoice Debit Purchases Credit Accounts
BOOK OF ACCOUNTS
(Supplier’s Name) No. ( from Payable
supplier)
June 05 Echpi Trading 2-001 002011 40,000 40,000

Accounts Payable Subsidiary Ledger

A/P- Echpi Trading 2-001
DATE ITEM P.R. Debit Credit Balance

 
June 5  
Purchase Journal  
PJ1     40,000   40,000
           

           

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 Purchase Journal PJ1
Date Account Credited Ref Sales Invoice Debit Purchases Credit Accounts
BOOK OF ACCOUNTS
(Supplier’s Name) No. ( from Payable
supplier)
June 05 Echpi Trading 2-001 002011 40,000 40,000

Accounts Payable Subsidiary Ledger

A/P- Echpi Trading 2-001
DATE ITEM P.R. Debit Credit Balance

 
June 5  
Laptop  
PJ1     40,000   40,000
           

           

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 Purchase Journal PJ1
Date Account Credited Ref Sales Invoice Debit Purchases Credit Accounts
BOOK OF ACCOUNTS
(Supplier’s Name) No. ( from Payable
supplier)
June 05 Echpi Trading 2-001 002011 40,000 40,000

Accounts Payable Subsidiary Ledger

A/P- Echpi Trading 2-001
DATE ITEM P.R. Debit Credit Balance

 
June 5  
Purchase Journal  
PJ1     40,000   40,000
           

           

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 Purchase Journal PJ1
Date Account Credited Ref Sales Invoice Debit Purchases Credit Accounts
BOOK OF ACCOUNTS
(Supplier’s Name) No. ( from Payable
supplier)
June 05 Echpi Trading 2-001 002011 40,000 40,000

Accounts Payable Subsidiary Ledger

A/P- Echpi Trading 2-001
DATE ITEM P.R. Debit Credit Balance

 
June 5  
Laptop  
PJ1    
40,000   40,000
           

           

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BOOK OF ACCOUNTS

Activity 1
What is our Label?
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ACTIVITY 1

Instruction: Label the General Journal properly

Date Account titles and

Ref
Explanation Debit Credit

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 ACTIVITY 1

Instruction: Label the General Ledger properly

Date Explanation Ref Debit Credit Balance

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BOOK OF ACCOUNTS

Activity 2
Who am I ?
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 ACTIVITY 2
Instruction: Identify what is described in each number.

I am a special journal that is used

to record all sales on credit or on
account. Who am I?

Sales Journal
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 ACTIVITY 2
Instruction: Identify what is described in each number.

I am a special journal that is used

to record all the cash that has
been received. Who am I?

Cash Receipts Journal

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 ACTIVITY 2
Instruction: Identify what is described in each number.

I am a special journal that is used to

record all purchases of inventory on
credit or on account. Who am I?

Purchase Journal
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 ACTIVITY 2
Instruction: Identify what is described in each number.

I am a special journal that is used to

record all the transactions involving
cash payments. Who am I?

Cash Disbursement Journal

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 ACTIVITY 3

Instruction: Identify the appropriate journal to be used in each item below.

Mr. Valdez purchased a vehicle

worth of Php 150,000.00 on account

Purchase Journal
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 ACTIVITY 3

Instruction: Identify the appropriate journal to be used in each item below.

Janice paid the salaries of her employees

on her accounting firm with the amount
of Php 30,000.00

Cash Disbursement Journal

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 ACTIVITY 3

Instruction: Identify the appropriate journal to be used in each item below.

Aling Lita sold merchandise on account

worth of Php 3,000.00.

Sales Journal
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 ACTIVITY 3

Instruction: Identify the appropriate journal to be used in each item below.

Rhea received Php 20,000.00 for the

services that she rendered

Cash Receipts Journal

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ASSESSMENT
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Instruction: Choose the letter corresponding to the correct answer for each of the following
questions provided below

1. The book of accounts

a. Trial Balance and Balance Sheet c. Ledger and Bank Book

b . Balance Sheet and Journal d. Journal and Ledger

2. The Accounting process
a. identifying, recording, and communicating
b. identifying, liquidating, and communicating
c. recording, generalizing and communicating
d. Identifying, recording, summarizing
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Instruction: Identify what is described in each number.

3. This is the book of original entry.

a. Ledger c. subsidiary ledger

b . special journal d. general journal

4. This is the book of final entry.
a. Ledger c. subsidiary ledger

b . special journal d. general journal

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Instruction: Identify what is described in each number.

5. This contains the details supporting the balance in the general ledger
account.
a. general ledger c. ledger
b. subsidiary ledger d. none of the above

6. This is also known as the controlling account.

a. cash receipts journal c. accounts receivable
b. notes payable d. general ledger

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Instruction: Identify what special journal that is applicable for the following transactions

7. Collected ₱50,000 from a customer in payment of his account..

a. Sales Journal c. Cash Disbursements Journal

b. Cash Receipts Journal d. Purchase Journal

8. Bought 50 pieces of mugs to be sold in the store amounting to ₱1,500

on account
a. Sales Journal c. Cash Disbursements Journal
b. Cash Receipts Journal d. Purchase Journal
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Instruction: Identify what special journal that is applicable for the following transactions

9. Paid salary of the employees, ₱30,000

a. Sales Journal c. Cash Disbursements Journal
b. Cash Receipts Journal d. Purchase Journal

10. Sold 1 unit of laptop to Amira Santos on account, P45,000

a. Sales Journal c. Cash Disbursements Journal

b. Cash Receipts Journal d. Purchase Journal
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 ASSESSMENT
1. D 9. C
2. A 10. A
3. D
4. A
5. B
6. D
7. B
8. D

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REFERENCE
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 REFERENCES

Department of Education (2020). Fundamentals of Accountancy, Business and

Management 1 – Grade 11 Alternative Delivery Mode Quarter 3 – Module 5:
Books of Accounts, First Edition

Fundamentals of Accountancy, Business and Management 1 - Friday Week5 Q3

ETUlay. (2021, April 30). [Video]. YouTube. https://www.youtube.com/watch?
v=JbxuNzGYO5c

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CREDITS

Special thanks to all the people who made and

released these awesome resources for free:
▰ Presentation template by SlidesCarnival
▰ Photographs by Startup Stock Photos

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THANKS!
Any questions?

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