BOOKS OF ACCOUNTS

The Bureau of Internal Revenue, the taxing

authority in the Philippines mandates that all
businesses or persons, required by law, to pay internal
revenue taxes shall keep permanently-bound books of
accounts for registration or stamping. Books of
Accounts are records in which all accounts and
transactions of a business are maintained on a regular
basis. This books of accounts are typically a journal
and a ledger or their equivalents such as subsidiary
ledgers or simplified books of accounts.
OBJECTIVES:
1. IDENTIFY THE USES OF THE TWO
BOOKS OF ACCOUNTS;
2. ILLUSTRATE THE FORMAT OF
GENERAL AND SPECIAL JOURNALS;
3. ILLUSTRATE THE FORMAT OF
GENERAL AND SUBSIDIARY LEDGERS
Identify the term/s being described.
1. This refers to the specific ledger account
which is supported by detailed information
in the subsidiary ledger.
2. This is a journal used to record all cash
receipts from whatever source.
3. This is a journal used to record all other
transactions which cannot be
recorded in a special journal.
4. This is also known as the book of original
entry.
5. This shows information on which customer
owes the business and how much.
6. This is a journal used to record recurring
transactions.
7. This is a journal used to record
transactions involving payment of
cash for whatever purpose.
8. This is the basis for the account number in
the general ledger.
9. This is also known as the book of final entry.

10. This is the order of recording transactions

in a journal.
9. This is also known as the book of final entry.

10. This is the order of recording transactions

in a journal.

8. This is the basis for the account number in

the general ledger.
1. WHAT DO YOU MEAN BY BOOKS OF
ACCOUNTS?
2. WHAT ARE THE TWO MAJOR TYPES
OF BOOKS OF ACCOUNTS
MAINTAINED BY A BUSINESS?
3. WHAT IS A JOURNAL?
4. WHAT ARE THE TWO TYPES OF
JOURNALS?
5. COMPARE AND CONTRAST THE
TYPES OF JOURNALS.
6. WHAT ARE THE FOUR COMMON
TYPES OF A SPECIAL JOURNAL?
7. WHAT IS A LEDGER?
8. WHAT ARE THE TWO TYPES OF
LEDGER?
9. COMPARE AND CONTRAST THE
TYPES OF LEDGERS.
10. WHAT ARE THE TWO COMMON
TYPES OF A SUBSIDIARY LEDGER?
11. COMPARE AND CONTRAST THE TWO
MAJOR TYPES OF BOOKS OF
ACCOUNTS.
Uses of Journals and Ledgers:
1. It provides information about the financial
health of business.
2. It ensures that double-entry bookkeeping
system is observed when recording
transactions.
3. It provides a more reliable evidence of
transactions.
4. It assists in tracking the flow of business
transactions for a given period of time.
5. It provides adequate explanation of each
entry.
6. It assists management in monitoring
business performance.
7. It provides a systematic record of
transactions.
8. It presents necessary information about the
transactions.
9. It provides information about the results of
the business operations.
10. It shows detailed information about
specific assets, liabilities, and owner`s equity
of the business.