Q2 Lesson 8
Simple
Bookkeeping
Part 1
RECAP: PRE-TEST
TRUE OR FALSE - Directions: Read each sentence carefully. Write TRUE if the
statement is correct and FALSE if otherwise.
FALSE
_________1. Manufacturing Cost is the price at which the commodity is sold
per unit.
FALSE
_________2. BIR is the agency of the Government of the Philippines
responsible for regulating the securities industry in the Philippines.
TRUE
_________3. Business Implementation is the responsibility of all members of
the organization.
FALSE
_________4. Business plan is the process of executing a plan or policy so that a
concept becomes a reality.
FALSE
_________5. In calculating the Manufacturing Cost per unit, the formula is:
Unit Cost = Operating expenses / Number of units produced
ARRANGED THE JUMBLED LETTERS:
LJAONUR
JOURNAL
DEREGL
LEDGER
A LAC PT I
CA P ITA L
ST S E SA
A S S E TS
SIALTEILBAI
LIABILITIES
ECIMNO
INCOME
EPNSXEE
EXPENSE
1.Define bookkeeping
2.Identify the books of accounts
used in business, and
Learning 3.Identify the 5 elements of
objectives: accounting and account titles
used in recording,
4.Classify account titles used in
business recording.
1.What have you learned
from the video
presentation?
Guide
Questions: 2. What are the similarities
and differences of
bookkeeping from
accounting?
Questions:
1.What is accounting?
2.What is bookkeeping?
Accounting is a systematic process of
identifying, recording, measuring,
Accounting classifying, verifying, summarizing,
interpreting and communicating
financial information.
Accounting is a service activity. Its
function is to provide quantitative
information primarily financial in nature
intended to be useful in making
economic decision.
Bookkeeping is a
Bookkeeping
systematic recording of
financial aspects of business
transactions in appropriate
books of account.
Is a person who records
the day-to-day financial
transactions of a business.
Bookkeeper Responsible for writing the
daybooks, which contain
records of purchases, sales,
receipts, and payments.
Recent researches would appear to show that
some method of keeping accounts has existed
Origin of from the remotest times.
bookkeeping Babylonian records have been found dating
back as far as 2600B.C., written with stylus on
small slabs of clay.
The term “waste book” was used in colonial
America referring to bookkeeping. The
purpose was to document daily transactions
including receipts and expenditures.
The name “waste book” comes from the fact
that once the wastebook’s data were
transferred to the actual journal, the waste
book could be discarded.
CAN YOU
STATE THE
BOOKS OF
ACCOUNTS?
All business transactions are recorded in the
books of accounts and not in an ordinary bond
paper or yellow pad.
The book of accounts are the
journal and the ledger.
JOURNAL
is the book of original entry.
Is a formal and chronological record of
financial transactions before their values
are accounted for in the general ledger as
debits and credits.
LEDGER
is the book of the final entry.
Is a permanent summary of all amounts
entered in supporting journals which list
individual transactions by date.
The journal provides a
chronological record of all the
financial events in the business
over time.
The entries in the journal are
arranged by date that makes it
necessary to locate a particular
event.
Guidelines in using the General Journal
Journal 1. DATE COLUMN- it shows the date of the
occurrence of the transaction.
2. PARTICULARS- it shows the account
debited and credited as well as a brief
explanation of the transaction.
-the DEBIT account is entered at the
extreme left of the first line.
-the CREDIT account is entered slightly
indented on the next line.
3. POSTING REFERENCE-it is used when
the entries are posted, that is, until the
amounts are transferred to the related
Journal ledger accounts.
4. DEBIT COLUMN
-it is the first money column where
the amount of the debit account is
entered.
5. CREDIT COLUMN
- It is the second money column
where the amount of the credit account
entered.
1. Date Column
2. Particulars
3. Posting
Reference
4. Debit column
5. Credit column
CAN YOU STATE THE 5
ACCOUNTING
ELEMENTS?
The account title provides the
description of the type and
nature of the business
transactions.
The account titles are grouped
into five categories
technically referred to as the
accounting elements.
THE FIVE
CATEGORIES OF
ACCOUNTS OR
ELEMENTS OF
ACCOUNTING
GROUP ACTIVITY 1
Task: 15 mins Preparation
2-3 mins Presentation of the output
The class will be divided into 5 groups (Business Plan
Group)
▪ Each group has an assigned accounting element to be
discussed and account titles used in recording.
▪ Each group will present your output in a creative way
through roleplay, variety show, reporting, musical play,
talk show, vlogging etc.
RUBRICS FOR THE PRESENTATION
CRITERIA
5 – Excellent
1. Content
4 – Very satisfactory
2. Creativity
3 – satisfactory
3. Group collaboration
2 – Good
4. Validity of information 1 – needs improvement
1. Assets
are the resources
owned and
controlled by the
firm.
• Tangible Assets
are physical assets such as
cash, supplies, and furniture
and fixtures.
Assets • Intangible Assets
are non-physical assets
such as patents and
trademarks
1. Cash – it describes money, either in paper
or in coins.
Asset 2. Accounts receivable – It describes
Account collectibles from the customers who made
sales transactions on credit.
Titles 3. Notes receivable – it describes collectibles
that are supported with promissory notes.
4. Supplies on hand – it describes unused
office or store supplies.
5. Unused factory supplies – it describes
unutilized manufacturing supplies.
6. Equipment – it describes
Asset tools and equipment like
Account calculators, computers, or any
Titles equipment directly related to
the production of goods.
7.Furniture and fixtures – it
describes assets like chairs,
tables, and display cases.
2. Liabilities are obligations of the
firm arising from
past events which
are to be settled in
the future.
1. Accounts payable – it describes the
financial obligations arising from
Liability goods purchased or services
Account received.
Titles 2. Notes payable – it describes the
financial obligations supported with
notes.
3. Utilities payable – it describes the
unpaid obligations on light and
water consumptions.
4. Salaries payable – it describes the
unpaid salaries of the workers.
3. Capital are the owner’s claims
in the business. It is the
residual interest in the
assets of the enterprise
after deducting all its
liabilities.
1. Capital – it describes the
Capital original and additional
Account investment of the owner.
Titles
2. Drawing – it describes
the temporary
withdrawal of capital by
the owner.
4. Income is the increase in economic
benefits during the
accounting period in the form
of inflows of cash or other
assets or decreases of
liabilities that result in
increase in equity. Income
includes revenue and gains.
2 Kinds of Income
Income
1.Revenue
2.Gains
REVENUE VS. GAINS
oIncome generated from the primary
operations of the business are called
revenues.
Examples: sales of merchandise to
INCOME customers and rendering of services
oIncome generated from other activities of
the business are called gains.
Examples: gain on sale of property,
plant and equipment, interest from time
deposit
1. Service income – it describes
Income general service rendered.
Account
Titles 2. Rental income – it describes the
income arising from lease or rent of
property.
3. Sales – it describes the sale of
goods or products to the
consumers.
1. Salaries and wages – it describes the
Expense expenses on payment of salaries.
2. Store supplies expense – it describes
Account the expenses on store supplies.
Titles 3. Taxes and licenses – it describes the
expenses on taxes, permits, fees, and
licenses.
4. Utilities expense – it describes the
expenses on light and water.
5. Travelling expense – it describes the
expenses on transportation or fare of
personnel.
EXPENSES VS. LOSSES
oExpenses related to the primary
operations of the business are called
expense.
Expenses Example: cost of merchandise sold
oExpenses from other activities are
called losses.
Example: Interest expense from
notes payable
5. Expense are decreases in
economic benefits during
the accounting period in
the form of outflows of
assets or incidences of
liabilities that result in
decreases in equity.
Any question?
Words to ponder
“ Good record
keeping can help
protect the business,
measure the
performance and
maximize profits.”
1.Research on the different financial
statements.
2.What is Income statement and balance
ASSIGNMENT sheet.
3.Submit a sample of income statement
of your favorite food chain.
