JOURNALIZING

Carrelle Jane D. Quitalig BBTE III-2N

HOW TO MAKE A PIZZA

JOURNALIZING
the

process of recording business transactions in the book of original entry called the journal. business information comes from variety of source documents such as invoices, receipts, vouchers, checks, etc.

THE JOURNAL
A journal is the a permanent chronological record of business transactions. A journal entry shows all of the effects of a transaction as expressed in terms of terms of debit and credit and may include an explanation of the transaction.

THE DOUBLE-ENTRY BOOKKEEPING

a

method of recording business transactions which recognizes the dual effect of a transaction.
Each

transaction is recoded by debiting and crediting accounts .

WHAT IS AN ACCOUNT?
An account is a record of each ass, liability, owners equity, revenue and expense items in which the effects of business transactions are recorded.

THE T-ACCOUNT

WHAT IS DEBIT? CREDIT?

The

words debit and credit came from Latin words debere (meaning to owe) and credere (meaning to trust or believe). is abbreviated as Dr. and credit as

Debit

Cr.

DEBIT AND CREDIT EQUATION

The

learner is charged by the tutor or the instructor to develop a product or a project by applying learned principles and concepts to his/her specific context.

RULES OF DEBIT AND CREDIT

Debit signifies:

Credit signifies:

Increase in Assets Decrease in Liabilities Decrease in Capital Increase in Drawing Decrease in Revenue Increase in Expense

Decrease in Assets Increase in Liabilities Increase in Capital Decrease in Drawing Increase in Revenue Decrease in Expense

THE GENERAL JOURNAL

1.

Date Column Write the year in small figures on top of the first line of the date column. The month is written below the year on the first line. The date is written on the first line of the 2nd column.

2. Description Column
the

title of the account debited is written on the first line t the extreme left of the description column. The title of the account credited is written on the 2nd line indented by about half inch from the debit entry. A brief description of the transaction is written below the entry indented again by about half inch from the credit entry.

3. Posting Reference Column This column is filled up only during the postage stage. The account number of the account debited and credited are written on this column after they are posted to the ledger. 4. Debit Column The amount of the account debited is written on this column. 5. Credit Column The amount of the account credited is written on this column.

THE LEDGER
A

group of accounts is called a ledger. The ledger provides a summary of transactions for an accounting period. it is the last book used in recording transactions, ledger is called the book of final entry.

Since