TRAINING TITLE : BOOKKEEPING

NOMINAL DURATION : 144 hours

QUALIFICATION LEVEL : LGU Certificate

COURSE DESCRIPTION :

This course is designed to enhance the knowledge, skills and attitudes of

the students to lead workplace communication, lead small teams, develop and
practice negotiation skills, solve workplace problem related to work activities,
use mathematical concepts and techniques, use relevant technologies,
maintain an effective relationship with clients/customers, manage own
performance, apply quality standards, perform computer operations, perform
bookkeeping such as: journalize transactions, post transactions ,trial balance
and financial reports.

ENTRY REQUIREMENTS:

Candidate/trainee must possess the following qualification:

1. Must be able to communicate effectively both orally and in written form

2. Must be physically, emotionally, psychologically and mentally fit
3. Must be able to perform basic mathematical computation
WHAT IS BOOKKEEPING?

 Bookkeeping is the process of tracking and recording a business’s

financial transactions. These business activities are recorded based on
the company’s accounting principles and supporting documentation.
Examples of these documents include: Bills, Receipts, Invoices and
Purchase orders

 Business transactions can be recorded by hand in a journal or an Excel

spreadsheet. Most of the companies opt to use bookkeeping software
to keep track of their financial history.

KEY BENEFITS OF BOOKKEEPING

1.  Access to detailed records of all transactions

2.  Ability to make informed decisions

3.  Better tax preparation

TYPES OF BOOKKEEPING FOR SMALL BUSINESSES

1. Single-entry bookkeeping

This method is often preferred for sole proprietors, small startups, and
companies with unfussy or minimal transaction activity. The single-
entry system tracks cash sales and expenditures over a period of time. 

2. Double-entry bookkeeping

1. Single-entry bookkeeping

The single-entry bookkeeping With this bookkeeping process, you must

maintain three pieces of documentation:

 Cash sales journal: This is where the business records all revenue.

 Cash disbursements journal: This is where the business records all

expenses.

 Bank statements: All journal entries should align with the business’s

bank statements.

In these documents, transactions are recorded as a single entry rather than

two separate entries.
2. Double-entry bookkeeping

Double-entry bookkeeping is the practice of recording transactions in at least

two accounts, as a debit or credit. When following this method of
bookkeeping, the amounts of debits recorded must match the amounts of
credits recorded. This more advanced process is ideal for enterprises with
accrued expenses.

The following documents are required for double-entry bookkeeping:

 Journal entries

 General ledgers

 Inventory

 Cash books

 Accounts payable

 Accounts receivable

 Loans

 Payroll

The double-entry system of bookkeeping is common in accounting software

programs like QuickBooks. With this method, bookkeepers record
transactions under expense or income. Then they create a second entry to
classify the transaction on the appropriate account.

Bookkeeping best practices

.  Consider a phased approach

.  Keep your general ledger current

.  Plan for taxes throughout the year

.  Keep your personal and business finances separate

Should I do my own bookkeeping? 2 questions to ask yourself first

.  Do you have the expertise?

.  Do you have the time?

Accounting journal entry is the method used to enter an accounting
transaction into the accounting records of a business.

What are the 5 types of journal entries?

Journal entries are divided into six main types,
1.  Opening Entries
2. Transfer Entries
3. Closing Entries
4. Adjusting Entries
5. Compound Entries
6. Reversing Entries

OPENING ENTRY- is referred to as the first entry that is recorded or which is

brought forward from a previous accounting period to the new accounting
period. In an ongoing business, the closing balance of the previous
accounting period serves as an opening balance for the current accounting
period

TRANSFER ENTRY-when accounts are transferred from one account to

another fora combination of allied items, it is necessary to pass transfer
entry. Such Entries are passed in the Journal proper for the sake of record
keeping.

CLOSING ENTRY- is a journal entry that is made at the end of an accounting

period to transfer balances from a temporary account to a permanent account.

Companies use closing entries to reset the balances of temporary accounts −

accounts that show balances over a single accounting period − to zero. By
doing so, the company moves these balances into permanent accounts on
the balance sheet. These permanent accounts show a company’s long-
standing financials

ADJUSTING ENTRIES -are accounting journal entries made at the end of the

accounting period after a trial balance has been prepared. After you make a
basic accounting adjusting entry in your journals, they're posted to the general
ledger, just like any other accounting entry.

Compound entry- is an entry involving more than two accounts. In a

compound journal entry, there are two or more debits, credits, or both. Rather
than making separate journal entries for the same transaction, you can
combine the debits and credits under one entry.

REVERSING ENTRIES are accounting journal entries you make in a certain

period to reverse, or cancel out, some entries of a previous accounting period.
You can make them at the beginning of an accounting period, and they
usually adjust some entries for accrued expenses and revenues from the end
of the previous period
 5 Types of accounts
 Assets.
 Expenses.
 Liabilities.
 Equity.
 Revenue (or income)

ASSETS ACCOUNT:
Current Assets: Property and Equipments:
Cash Land & Building
Cash in Bank Furniture and Fixture
Petty Cash Fund Store Equipments
Prepaid Expenses
Account Receivable

EXPENSES: LIABILITIES:
Salary and wages Accounts Payable Light and Water
Loan Payable
Transportation & Travel Grant
Representation Expense
Taxes & Licences
Store Expenses
Office Expenses EQUITY
Bad Debts Capital
Depreciations Expenses
Inventory Spoilage
Miscellaneous Expenses
Professional Fee (subject to witholding tax)

REVENUE OR INCOME
Sales
Services
Interest Income

Journal Entries for the of small sari-sari store:

May 10, 2022
Mr. Juan dela Cruz opened a small sari-sari store he rented the place at
2,500.00 a month, he pay business taxes 2,800.00 and BIR Registration fee
and doc stamp of 530.00 , transportation expenses 350.00 purchased
50,000.00php worth of groceries to open his sari-sari store.
Journal Entry:

Rent Expense 2,500.00

Taxes and Licenses 3,330.00
Transportation & Travel 350.00
Purchases 50,000.00
Capital 56,180.00

May 12, 2022

Sales 5,260.00

Cash 5,260.00
Sales 5,260.00

May 12, 2022

Mr. Dela Cruz purchased one unit electric fan @ 1,200.00 php. for store used.

Store Equipment 1,200.00

Cash 1,200.00

May 13, 2022

Mr. Dela Cruz purchases plastic sando bag, roll bag and eco bag 340.00php.

Store Supplies Expense 340.00

Cash 340.00

May 15, 2023

Mr. Dela Cruz pay eletric bill 560.00.

Light and water 560.00

Cash 560.00

Mr. Dela Cruz pay water bill 275.00

Light & water 275.00

Cash 275.00