Journalizing

Fundamentals of Accountancy,
Business, and Management 1
-Module 7
Group 1
 Pretest
(True or False)
1. The journal is called the book of original entry where transactions
are first recorded.

2. Source documents are important in journalizing.

3. If the accountant mistakenly analyzed the transaction, it would

result to a wrong journal entry.

4. The Peso sign is always written before every amount in a money

column to avoid confusion.
 Pretest
(True or False)
5. Journal entries require an explanation.

6. Transactions are journalized based on analysis as to their affects

on assets, liabilities, owner's equity , revenue and expense.

7. Only the two-column journal is being used in accounting.

8. Accountants must record the transaction with supporting documents

such as the official receipt, sales invoice, and payroll registers.
 Pretest
(True or False)
9. A compound entry has two or more debits and credits.

10. Transactions may be recorded on the day when the transaction

occured.
Journalizing
It is the recording of
business transactions
for a service business
and one of the steps
included in the
accounting cycle
Accounting Cycle
Posting journal
entries to the ledger
Journalizing and
Analyzing posting adjusting
business journal entries
transactions from
source
documents
Preparing trial
balance

Journalizing the
business
transactions
Accounting Cycle
Journalizing and
posting closing
entries Journalizing and
posting reversing
Preparing journal entries
adjusted trial
balance

Preparing post-
closing trial balance

Preparing financial
statements
Journalizing
The transactions are only
financial in nature and
have economic benefit to
the business and those
which may change assets,
liabilities, and owner's
equity
EXAMPLE
EXAMPLE
Let’s say you paid in cash for your electric bill of P10,000 this October.
Here’s how you posted this transaction in your General Journal:
Examples of Financial Transactions

Payment of salaries of Received payment from

employees customers on account

Payment of electric, water, Payment for purchasing

and telecommunication equipment, furniture,
bills and supplies

Received payment from

customers
Examples of Non-Financial Transactions

Orientation of newly
hired employees Awarding of recognition
to the business

Posting of advertisements Hiring and terminating

in the city of employees
Examples of Source Documents

Official recepits or cash

receipts Check or cash voucher

Charge invoice or sales Deposit slips

invoice
 【 Journal 】
Is the accountant's tool in recording day-to-
day transactions

It is called the Book of Original Entry where

the accountant records first the business
transactions that happened in the business

The recording of the transactions are in

sequential form
【 Journal 】
Simple journal entry has one debit account and one
credit account
GENERAL JOURNAL

DATE ACCOUNT TITLES AND P.R DEBIT CREDIT

EXPLANATION .
2019 CASH 201 P50,000
DECEMBE
R1
CAPITAL 101 P50,000

TO RECORD INITIAL
INVESTMENT
【 Journal 】
Compound journal entry has one or more debit account
or one or more credit account or both
GENERAL JOURNAL

DATE ACCOUNT TITLES AND P.R. DEBIT CREDIT

EXPLANATION
2019 EQUIPMENT 105 P50,000
DECEMBE
R1
CASH 101 P25,000

NOTES PAYABLE 202 P25,000

TO RECORD ACQUISITION OF
EQUIPMENT, 50% DOWNPAYMENT, 50%
CASH
【 Journal 】
Format
GENERAL JOURNAL

DATE ACCOUNT TITLES AND P.R. DEBIT CREDIT

EXPLANATION

DATE - date when the transaction happened

ACCOUNT TITLES AND EXPLANATION

- debited accounts are located on the extreme left of
the first line
- credited accounts are located on the next line which
is slightly indented
-brief description of the transaction is located below
the credit which is slightly indented
【 Journal 】
Format
GENERAL JOURNAL
DATE ACCOUNT TITLES AND P.R. DEBIT CREDIT
EXPLANATION
2019 DEBITED ACCOUNTS # AMOUNT
DECEMBER 1
CREDITED ACCOUNTS # AMOUNT
BRIEF DESCRIPTION

P.R - account numbers for each account title used

- see the following Chart of Accounts below
【 Journal 】
Format
PERMANENT ACCOUNTS

ACCOUNT ASSETS 104 SERVICE EQUIPMENT

NO.
101 CASH ACCOUNT LIABILITIES
NO.
102 ACCOUNTS 201 ACCOUNTS PAYABLE
RECEIVABLE
103 SUPPLIES 202 LOANS PAYABLE
【 Journal 】
Format

ACCOUNT OWNER’S EQUITY

NO.

301 CAPITAL

302 DRAWINGS
【 Journal 】
Format

TEMPORARY ACCOUNTS

ACCOUNT INCOME 502 SALARIES EXPENSE

NO.
401 SERVICE REVENUE 503 UTILITIES EXPENSE

ACCOUNT EXPENSES 504 RENT EXPENSE

NO.
501 TAXES AND LICENSE
EXPENSE
【 Journal 】
Format

DEBIT - the amount to be debited

CREDIT - the amount to be credited

【 ANALYSIS 】
INCREASE DECREASE

ASSETS DEBIT CREDIT

LIABILITIES CREDIT DEBIT

OWNER’S EQUITY CREDIT DEBIT

REVENUE CREDIT DEBIT

EXPENSES DEBIT CREDIT

【 EXAMPLE 1 】
On June 19 2023, Eve loaned P20,000 from Knightly
Loan Services

On June 20 2023, She bought P20,000 worth of

ingredients her business

On June 21 2023, Eve sold P30,000 worth of bananacue

【 EXAMPLE 1 】
On June 26 2023, Eve paid P2,000 for stall rent

On June 27 2023, Eve bought P28,000 worth of

ingredients for bananacue

On June 30 2023, Eve paid her loan worth of P20,000

from Knightly Loan Services
【 EXAMPLE 2 】
Angela paid on June 3,2023 P3,000 downpayment and
has P3,000 left on her loan to pay for her office computer.

【 EXAMPLE 3 】
Jamaecha invested P50,000 cash, P35,000 on
equipment, and P15,000 on supplies to start her small
dinner business
【 EXAMPLE 4 】
Krista started a trading business on May 3, 2022 by
investing $50,000 cash.

【 EXAMPLE 5 】
Jamaica paid each of her employees P300 on May 31,
2023 for this month’s work.
【 EXAMPLE 6 】
Jonel sold his goods to Patricia for P3,000 cash.

【 EXAMPLE 7 】
Chloe purchased bondpapers for P250 and P3000 worth
of printer for her printing business.
【 QUIZ 】
has one or more debit account or one or more credit
account or both

has one or more debit account or one or more credit

account or both

charizz