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  • Fabm 2 - Review First Lesson

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    12ABM20 MATEO, Roxanne M.
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    This document provides an overview of accounting concepts including assets, liabilities, equity, debits and credits, general journal, special journals, and the general and subsidiary ledgers. Assets are resources owned by a business like cash, investments, equipment, and real estate. Liabilities are obligations owed like accounts payable, salaries, and taxes. Equity is the owner's residual interest after paying off liabilities. Debits increase assets and expenses, credits increase liabilities, equity, and revenue. The general journal records all transactions while special journals are used for specific types of recurring transactions like cash, sales, purchases. The general ledger contains all account balances while the subsidiary ledger provides detail for individual accounts in the general ledger.

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    Fabm 2- Review First Lesson

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    This document provides an overview of accounting concepts including assets, liabilities, equity, debits and credits, general journal, special journals, and the general and subsidiary ledgers. Assets are resources owned by a business like cash, investments, equipment, and real estate. Liabilities are obligations owed like accounts payable, salaries, and taxes. Equity is the owner's residual interest after paying off liabilities. Debits increase assets and expenses, credits increase liabilities, equity, and revenue. The general journal records all transactions while special journals are used for specific types of recurring transactions like cash, sales, purchases. The general ledger contains all account balances while the subsidiary ledger provides detail for individual accounts in the general ledger.

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    11 views34 pages

    Fabm 2 - Review First Lesson

    Uploaded by

    12ABM20 MATEO, Roxanne M.
    This document provides an overview of accounting concepts including assets, liabilities, equity, debits and credits, general journal, special journals, and the general and subsidiary ledgers. Assets are resources owned by a business like cash, investments, equipment, and real estate. Liabilities are obligations owed like accounts payable, salaries, and taxes. Equity is the owner's residual interest after paying off liabilities. Debits increase assets and expenses, credits increase liabilities, equity, and revenue. The general journal records all transactions while special journals are used for specific types of recurring transactions like cash, sales, purchases. The general ledger contains all account balances while the subsidiary ledger provides detail for individual accounts in the general ledger.

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    of 34

    LET US HAVE A REVIEW

    ASSETS Are resources owned by the


    business.
    Examples of assets are
    • Cash.
    • Investments.
    • Office equipment.
    • Machinery.
    • Real estate.
    • Company-owned vehicles.
    LIABILITIES Are obligations by the
    business
    Examples of Liabilities are

    • Accounts payable (money you owe to


    suppliers)
    • Salaries owing.
    • Wages owing.
    • Interest payable.
    • Income tax payable.
    • Sales tax payable.
    Equity is the residual interest of the owner
    EQUITY of the business. Meaning, any assets left
    after paying liabilities is the right of the
    owner of the business.

    Examples of Equities are;


    Class sabihin niyo po sakin if nakapag pasa na po kayo sa
    school • Common stock
    • additional paid-in capital
    • preferred stock
    • retained earnings
    • the accumulated other comprehensive
    income.
    Is an accounting entry that results in either
    an increase in assets or a decrease in
    liabilities on a company's balance sheet

    Is an accounting entry that results in either


    an decrease in assets or a increase in
    liabilities on a company's balance sheet
    DEBIT CREDIT

    A SSETS L IABILITIES
    WITDRAWALS E QUITY
    E XPENSES R EVENUE
    GENERAL JOURNAL

    SPECIAL JOURNAL
    1. September 1, 2015 Mr. Ben Mabait invested
    PHP500,000 in a restaurant business by opening an
    account with SuperBank.
    The following are the commonly used
    special journals:
    • Cash Receipts Journal – used to record all cash that
    has been received
    • Cash Disbursements Journal – used to record all
    transactions involving cash payments
    • Sales Journal (Sales on Account Journal) – used to
    record all sales on credit (on account)
    • Purchase Journal (Purchase on Account Journal) –
    used to record all purchases of inventory on credit (or
    on account)
    Is the opposite of the cash receipts journal.
    It is the journal where all cash payments
    are recorded. An example of a cash
    disbursement journal is shown below:
    Is used in recording several sales
    transactions
    on account. The source document for this
    journal is the charge invoice or sales invoice
    (for credit transactions) to various customers
    or clients.
    Is used to record recurring transactions of
    purchases on account. The source
    documents for purchase journal are the
    invoices from the supplier of the company
    GENERAL LEDGER

    SUBSIDIARY LEDGER

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