Major Accounts and Book

of Accounts
 Types of Major Accounts
 Assets: tangible and intangible items that the company owns that have
value (e.g. cash, computer systems, patents)
 Liabilities: money that the company owes to others (e.g. mortgages,
vehicle loans)
 Equity: that portion of the total assets that the owners or stockholders of
the company fully own; have paid for outright
 Revenue or Income: money the company earns from its sales of
products or services, and interest and dividends earned from marketable
securities
 Revenue or Income: money the company earns from its sales of
products or services, and interest and dividends earned from marketable
securities
BOOKS OF ACCOUNTS

 Manual Books of Account- these method is done using a traditional

books you find in a books and office supplies store. Manual Books of
Accounts are mostly used by micro and small businesses because it’s
the easiest to register in the BIR. Recording is hand written.
 Manual Books of Accounts- These method is done using a traditional
books you find in a books and office supplies store. Manual Books of
Accounts are mostly used by micro and small businesses because it’s
the easiest to register in the BIR. Recording is hand written.
 Computerized Books of Accounts- This is mostly used by big
companies. This method is done using complex accounting software.
Generation of Invoices and receipts are usually computerized.
BOOKS OF ACCOUNTS – MINIMUM
REQUIREMENTS

 General Ledger- The general ledger contains the accounts used

to sort and store a company's transactions.The general ledger is
organized so that the accounts will appear in the following
order:Balance sheet accounts: assets, liabilities, stockholders'
equityIncome statement accounts: operating revenues,
operating expenses, other revenues and gains, other expenses
and losses The balances and activity in the general ledger
accounts are used to prepare a company's financial statements.
 Definition of General JournalA general journal is used to record
unique journal entries that cannot be processed in a more efficient
manner. For example, checks written, sales invoices issued,
purchase invoices received, and others can be recorded in a
computerized accounting system when the documents are
processed. Manual accounting systems will likely use special
journals for recording routine transactions. Therefore, the general
journal will have a limited amount of entries.In the general journal
you must enter the account(s) to be debited and the account(s) to
be credited along with their amounts and a brief description. Once
a transaction is recorded in the general journal, the amounts are
then posted to the appropriate accounts in the general ledger.
 Examples of Using the General Journal
Thee following are examples of entries that will be
recorded in the general journal:
 Depreciation
 Other adjusting entries
 Bad debts
 Sale of an asset used in the business
SPECIAL JOURNAL

 Cash Receipt - This is one of the books of accounts you use to record all
cash received by the business.
 Cash Disbursement - This is one of the books of accounts you use to record
all cash paid by the business.
 Sales Journal – This is one of the books of accounts you use to record all
sales including sales of merchandise on account.
 Purchase Journal – This is one of the books of accounts you use to record all
purchases and disbursements including purchase of merchandise on
account.