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Journalizing and posting

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Page 1: Journalizing and posting
Page 2: Journalizing and posting

Being systematic is a sure success.

Carefulness is next to exactness.

When are things worth remembering?

When is an entry good and when is it not?

Page 3: Journalizing and posting

A list of account names (Titles).

Enumerates the titles to be used on the recording of transactions.

Chart of Accounts

Cash Repair Income

Receivable – A Trading Rent Expense

Furniture Salary Expense

Payable – X Supplies Expense

Co, Capital Telephone Expense

Utilities Expense

Page 4: Journalizing and posting

Is the book where the day to day business transactions are recorded.

Page 5: Journalizing and posting

XYZ Repair ShopMr. Y - Owner

Feb. 2010General Journal

Page: 1

2010 Explanation F Debit Credit

Feb. 7 CashMr. Y, Capital

P 10,000P 10,000

?•GENERAL JOURNAL - It is a book of original entry in the sensethat transactions are recorded for the first time in this book. It is thebook where the day-to-day business transactions are recorded.• JOURNALIZING – is the process of recording transactions in thegeneral journal.•JOURNAL ENTRIES – are the records made in the generaljournal.

Page 6: Journalizing and posting

XYZ Repair ShopMr. Y – Owner

Feb. 2010General Ledger

CASH Page: 1

2010 Explanation Amount 2010 Explanation Amount

Feb. 7 Cash P 10,000

?•GENERAL LEDGER – is the book where the same information found in the general journal is transferred for the purpose of summarizing similar transactions. It is the book of final entry. It is a group of accounts•POSTING - is the transferring of information from the general journal to the general ledger.•ACCOUNT – it is an accounting device containing a debit side and a credit side, used to summarized information which are shown in detail in the general journal.

Page 7: Journalizing and posting

XYZ Repair ShopMr. Y – Owner

Feb. 2010General Ledger

Mr. Y CAPITAL Page: 2

2010 Explanation Amount 2010 Explanation Amount

Feb. 7 Cash P 10,000

?

Page 8: Journalizing and posting

CASH- coins, currency, and cash equivalent. If some of the money of the business are deposited in the bank, there may be two accounts used, namely, cash in bank and cash on hand.

ACCOUNTS RECEIVABLE- Claims due from customers of the business for goods sold or for services rendered on credit. “On credit” is synonymously expressed as “On accounts.” These items are also known as “Charge accounts.”

Page 9: Journalizing and posting

NOTES RECEIVABLE- Amounts due or collectible from customers for goods or services sold, or from others, for loans granted supported by written promises called “promissory notes.”

MERCHANDISE- Goods owned and unsold which were purchased by the business for resale.

SUPPLIES- stationeries, pencils, pens, inks, and other supplies unused.

LAND- Land used for building sites or other business purposes.

Page 10: Journalizing and posting

BUILDINGS- Buildings owned and used by the business.

MACHINERY and EQUIPMENT- machines, tools, motors, etc.

FURNITURE and FIXTURES- Tables, desks, chairs, counters, showcases, and the like.

OFFICE EQUIPMENT- Trucks, automobiles, and other equipment used for transporting merchandise.

Page 11: Journalizing and posting

ACCOUNTS PAYABLE- Debts to other parties for merchandise or services bought but not paid.

NOTES PAYABLE- Debts due to other parties supported by written promises made by the business.

TAXES PAYABLE- Amount of levies on property or income due to the government.

SUPPLIES EXPENSE- Cost of supplies used.

TAXES- Amount of taxes incurred by the business.

Page 12: Journalizing and posting

UTILITIES- Cost of light, water, and power consumed by the business.

INSURANCE EXPENSES- Premiums on insurance policies paid and incurred by the business.

REPAIRS and MAINTENANCE- Expenses for repairing or servicing the buildings, machineries, and equipment of the business.

RENT EXPENSE-Amount paid or incurred for the use of property, usually premises.

INTEREST EXPENSE- Amount added to the principal of money obligations.

Page 13: Journalizing and posting

Being systematic is a sure success.

Carefulness is next to exactness.

When are things worth remembering?

When is an entry good and when is it not?

Page 14: Journalizing and posting

Bring sheets of general journal and general ledger.