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You may already have some or most of the knowledge and skills
covered in this learner’s guide because you have:
Been working for some time.
Already completed training in this area.
At the end of this module is a Learner’s Diary. Use the diary to record
important dates, jobs undertaken and other workplace events that will
assist you in providing further details to your facilitator/ assessor. A Record
of Achievement is also provided by your facilitator to complete once you
complete the module.
This module was prepared to help you achieve the required competency
in Bookkeeping NC III. This will be the source of information for you to
acquire knowledge and skills in this particular trade independently and at
your own pace, with minimum supervision or help from your instructor.
Talk to your facilitator and agree on how you will both organize the
Training of this unit. Read through the module carefully. It is divided
into sections, which cover all the skills and knowledge you need to
successfully complete this module.
Work through all the information and complete the activities in each
section. Read information sheets and complete self check. Suggested
references are included to supplement the materials provided in this
module.
Most probably your facilitator will be your supervisor or manager. Your
facilitator will support and correct you.
Your facilitator will tell you about the important things you need to
consider when you are completing activities and it is important that
you listen and take notes.
You will be given plenty of opportunity to ask questions and practice
on the job. Make sure you practice new skills during regular work
QUALIFICATION TITLE
Competency-based Learning Date Developed: Document No.
Material for April 2016
Issued by:
BOOKKEEPING Page 5 of 39
NC III Developed by: Revision No.
Module Title: Journalize Maria Cecilia P.
Transactions Pagana
COMPETENCY BASED LEARNING MATERIALS
List of Competencies
No. Unit of Module Title Code
Competency
CORE CODE NO.
COMPETENCIES
Units of
Competency
1 Journalize Journalizing HCS412301
transactions transactions for
single
proprietorship
Journalizing
transactions for
partnership
Journalizing
transactions for
corporation
2 Post transactions Posting transactions HCS412302
3 Prepare trial Preparing trial HCS412303
balance balance
4 Prepare financial Preparing financial HCS412304
reports reports for single
proprietorship
Preparing financial
reports for
partnership
Preparing financial
reports for
corporation
5 Review internal Reviewing internal HCS412305
control system control system
Learning Outcome:
Upon completion of this module, you must be able to:
2. Analyze documents
Assessment Criteria:
1. List of asset, liability, equity, income, and expense account titles
are prepared in accordance with Generally Accepted Accounting
Principles.
2. Chart of Accounts is coded according to industry practice.
3. Documents are gathered, checked and verified in accordance with
verification and validation processes.
4. Account titles are selected in accordance with standard selection
processes.
5. Journal entries are prepared in accordance with generally accepted
accounting principles.
6. Debit and credit account titles are determined in accordance with
chart of accounts.
Competency-based Learning Date Developed: Document No.
Material for April 2016
Issued by:
BOOKKEEPING Page 7 of 39
NC III Developed by: Revision No.
Module Title: Journalize Maria Cecilia P.
Transactions Pagana
7. Explanation to journal entry is prepared in accordance with the
nature of transaction.
CONTENTS:
2. Accounting Equation
ASSESSMENT CRITERIA:
accounting principles.
chart of accounts.
nature of transaction.
CONDITIONS:
1. Calculator
2. Journal Paper
3. Learning Materials
4. Pencil
5. Eraser
2. Practical/performance test
3. Interview
4. Practical exercises
Learning Objectives:
After reading this information sheet, you should be able to:
(GAAP)
GENERALLY ACCEPTED ACCOUNT PRINCIPLES
The time period concept provides that accounting take place over
specific time periods known as fiscal periods. These fiscal periods are of
equal length, and are used when measuring the financial progress of a
business.
The cost principle states that the accounting for purchases must be at
their cost price. This is the figure that appears on the source document for
the transaction in almost all cases. There is no place for guesswork or
wishful thinking when accounting for purchases.
The value recorded in the accounts for an asset is not changed until
later if the market value of the asset changes. It would take an entirely new
transaction based on new objective evidence to change the original value of
an asset.
There are times when the above type of objective evidence is not
available. For example, a building could be received as a gift. In such a case,
the transaction would be recorded at fair market value which must be
determined by some independent means.
SELF-CHECK No.1.3-1
Learning Objectives:
Competency-based Learning Date Developed: Document No.
Material for April 2016
Issued by: Page 17 of
BOOKKEEPING
NC III Developed by: Revision No.
39
Module Title: Journalize Maria Cecilia P.
Transactions Pagana
After reading this information sheet, you should be able to:
ACCOUNTING EQUATION
ASSETS = EQUITIES
“Equity” include all the vested rights of person in the assets of the business.
It is classified into the following:
EQUITIES
CAPITAL
Since there are two sources of equities, one from the creditors and the other
from the owner, then we can express the accounting equation as:
Oct. 1- Mr. Juan Dela Cruz opened a motor repair shop and invested P100
000 cash.
A = L + C
Cash = + Gil, capital
P100 000 = 0 + P100 000
P100 000 = P100 000
Effect: Increase in asset, increase in capital
Oct. 3- He purchased repair supplies worth P25 000 on credit from Rosario
Trading.
A = L + C
Cash+Repair Supplies = Accounts Payable + Gil, capital
P100 000+P25 000 = P25 000 +100 000
P 125 000 = P 125 000
Effect: Increase in asset, increase in liabilities
Oct. 5- He bought a table and chairs for the business, P 6 000 in cash.
A = L + C
Cash+Repair Supplies+Furniture = Accounts payable + Gil,
capital
P100 000+P25 000+P6 000 = P25 000 + P100 000
(6 000)_____________________ = __0_________________0_____
P94 000+P25 000+P6 000 = P25 000 + P100
000
P 125 000 = P125 000
Effect: Increase in one form of asset, decrease in another form of asset
Oct. 20- Paid the note issued to Rosario Trading in Oct. 12.
A = L + C
Cash+Repair Supplies+Furniture =Accounts payable+Notes payable+
Gil, capital
P92 000+P25 000+P6 000 = 0 + P 25 000+ P
98 000
(25 000) = (25 000) +
0________
P67 000+P25 000+P6 000 = 0 +
P98 000
P 98 000 = P 98 000
Effect: Decrease in asset, decrease in liabilities
Competency-based Learning Date Developed: Document No.
Material for April 2016
Issued by: Page 20 of
BOOKKEEPING
NC III Developed by: Revision No.
39
Module Title: Journalize Maria Cecilia P.
Transactions Pagana
To illustrate the whole transaction using accounting equation:
A = L + C
Cash+Repair Supplies+Furniture =Accounts payable+Notes
payable+Gil, capital
Oct. 1 P100 000 = 0 +P100
000
Oct. 3 _____ P 25 000 = P25 000 +
0_______
P100 000+P25 000 = P25 000
+100 000
P 125 000 = P 125 000
Oct. 5 (6 000) P6 000 = 0 +
0
P94 000+P25 000+P6 000 = P25 000
+P100 000
P 125 000 = P125 000
Oct. 12 _______0 = (25 000) + P25 000 +P100
000
P94 000+P25 000+P6 000 = 0 +P25 000
+P100 000
P 125 000 = P125 000
Oct. 15( 2 000) = 0 +( 2
000)
P92 000+P25 000+P6 000 = 0 + P 25
000+P 98 000
P 123 000 = P 123 000
Oct. 20 (25 000) = (25
000+0________
P67 000+P25 000+P6 000 = 0 +
P98 000
P 98 000 = P 98 000
State the effects of the following transactions on the assets, liabilities and
capital by putting a check if there is an increase or decrease on them.
cash
2.Purchased equipment
on account
3.The owner invested cash
in the business
4.Paid the equipment
Competency-based Learning Date Developed: Document No.
Material for April 2016
Issued by: Page 22 of
BOOKKEEPING
NC III Developed by: Revision No.
39
Module Title: Journalize Maria Cecilia P.
Transactions Pagana
purchased in no. 2
5.Borrowed money from
the business
6.The owner withdraw
use
7.Purchased furniture and
fixture on account
8.Purchased defective
furniture purchased in
no. 7
9.Purchased additional
supplies on account
10. Paid half of the loan in
no. 5
on account √ √
3.The owner invested cash
in the business √ √
4.Paid the equipment
purchased in no. 2 √ √
5.Borrowed money from
the business
6.The owner withdraw
use
7.Purchased furniture and
fixture on account √ √
8.Returned defective
furniture purchased in
no. 7 √ √
9.Purchased additional
supplies on account √ √
10. Paid half of the loan in
no. 5 √ √
Learning Objectives:
After reading this information sheet, you should be able to:
1. Define journalizing.
3.Journalize transactions
JOURNALIZING
and
Debits = Credits
JOURNAL EXAMPLE
The following illustration draws upon the facts for the Xao Corporation.
Specifically it shows the journalizing process for Xao’s transactions. Review
it carefully, specifically noting that it is in chronological order with each
transaction of the business being reduced to the short-hand description of
its debit/credit effects. For instance, the first transaction increases both
cash and equity. Cash, an asset account, is increased via a debit. Capital
Stock, an equity account, is increased via a credit. The next transaction
increases Advertising Expense "with a debit" and decreases Cash "with a
credit."
In reviewing the general journal for Xao, note that it is only two pages
long. An actual journal for a business might consume hundreds and
thousands of pages to document its many transactions. As a result, some
businesses may maintain the journal in electronic form only.
PAGE NUMBERING
RECAP
The general journal does nothing to tell a company about the balance
in each specific account. For instance, how much cash does Xao
Corporation have at the end of January? One could go through the journal
and net the debits and credits to Cash (P25,000 - P2,000 + P4,000 - P500 +
P4,800 - P5,000 = P26,300). But, this is tedious and highly susceptible to
error. It would become virtually impossible if the journal were hundreds of
pages long. A better way is needed. This is where the general ledger comes
into play.
Mr. Jon invests $5000 cash in the business. Let us analyze this transaction.
P_____________
11. Cash
12. Capital
13. Assets
14. Equity
15. Cash
16. Capital
17. Cash
18. Capital
19. 5000
10. Journalizing
Calculator
Paper
Pencil
Eraser
each transaction.
Written test
Interview
JOURNALIZE TRANSACTIONS
The following transactions relate to the first month's operation of Mr. Rose:
(....5) Purchase a Delivery Truck from XYZ Autos P20000 and issued a
Promissory note.
(....18) Made full payment to ABC & Co. by cheque for merchandise
purchased on credit.
(....26) Received cheque of P5000 from MS & Co. and deposited the same
into the bank.
accounts.
accounts
nature of transaction.
Trainer:_____________________________________Date:____________________