What are the contents of a General Journal and explain its contents.

1. Date – Shows the dates when the different financial transactions took place. The dates
that appear in the journal must be in a chronological order which means that the entries
are recorded in order of the date of occurrence. When writing the date in the journal the
year and month are not written in every transaction unless the year and month changes,
or a new page is needed.

2. Account Titles and Explanation – Shows the item or the accounts debited and credited
as a result of a transaction analysis as well as a short and concrete explanation of what
the transaction is about. When writing the account title for debit it must be on the
extreme left side of the column, while for the credit it is entered in a slight indented
manner on the next line and for the explanation it is also written in an indented manner
on the next side.

3. P.R. (Posting Reference) – The P.R. or Posting Reference shows the number of the
account in a ledger or page of a ledger which it was transferred. These accounts can be
found in the chart of accounts. The P.R or Posting Reference is also known as Folio or
Reference.

4. Debit Column – This is a money column showing the peso amount of the value received
in a transaction Under this money column are the increase of drawings or withdrawals,
expenses and assets.

5. Credit Column – This is a money column showing the peso amount of the value parted
with in a transaction. Under this money column are the increase of liabilities, owners’
equity and revenues.

The following Chart of Accounts for EN Computer Repair Shop shall be used:

Balance Sheet Accounts Income Statement Accounts

Asset Income
100 Cash in Bank 260 Consultation Revenue
110 Accounts Receivable 270 Service Revenue
120 Supplies
130 Office Equipment
140 Prepaid Insurance
150 Prepaid Rent
160 Estimated Uncollectible Accounts
170 Service Vehicle
Liabilities Expenses
180 Accounts Payable 280 Rent Expense
190 Notes Payable 290 Salaries Expense
200 Salaries Payable 300 Taxes and Licenses
210 Utilities Payable 310 Utilities Expense
220 Interest Payable 320 Uncollectible Account Expense
230 Unearned Service Revenue 330 Depreciation Expense
 Owners’ Equity
240 Nimedez, Capital
250 Nimedez, Drawing

Give an example of transactions which will have an impact which should have an impact on
Assets and Liabilities.

“On April 1, Emman Nimedez is a graduate of Computer Science. He knows how to program the
computers and fix them. One day he decided to build his own computer repair shop and for him
to start his business he purchased supplies needed for his shop on credit worth ₱ 30,000 from
Peachy Enterprises.

DATE ACCOUNT TITLE AND EXPLANATION PR DEBIT CREDIT

April 1 Supplies 120 ₱ 30,000

Accounts Payable 180 ₱ 30,000

To Record Acquisition of Supplies

Give an example of transactions which will have an impact which should have an impact on
Assets and Capital.

 “On April 1, Mr. Nimedez made a cash deposit with the Bank of the Philippine Islands (BPI)
worth ₱ 250,000 to start with his computer repair shop which he registered currently with the
Department of Trade Industry under the name EN Computer Repair Shop.

DATE ACCOUNT TITLE AND EXPLANATION PR DEBIT CREDIT

April 1 Cash in Bank 100 ₱ 250,000

Nimedez, Capital 240 ₱ 250,000

To Record Initial Investment

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Give an example of transactions which will have an impact which should have an impact on
Assets and Income.

“On April 8, Mr. Nimedez fixed a laptop for 4 clients and collected the service fee worth ₱ 4,000
per client. This service includes setting up a virus protection, format and restoration of files.

DATE ACCOUNT TITLE AND EXPLANATION PR DEBIT CREDIT

April 8 Cash 100 ₱ 16,000

Service Revenue 270 ₱ 16,000

To Record Collected Revenues

Give an example of transactions which will have an impact which should have an impact on
Expenses and Liabilities.

“On April 25, Mr. Nimedez received the P Light electric bill worth ₱ 3,000.

DATE ACCOUNT TITLE AND EXPLANATION PR DEBIT CREDIT

April 25 Utilities Expense 310 ₱ 3,000

Utilities Payable 210 ₱ 3,000

To Record Payable