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A. INTRODUCTION
An accounting system consists of methods, procedures, and standards followed
in accumulating, classifying, recording, and reporting business events and transactions.
An accounting system should provide an accurate picture of a business and how it is
doing. Setting up a good accounting system and understanding the numbers produced
can make a major difference in how a business fares in the long run. The financial
statements produced from an accounting system will help in pricing services accurately,
forecasting short-term and long-term cash flow, paying taxes and measuring a business
profitability.
The accounting system of the business has been developed under the following
premises:
1.
2.
3.
4.
5.
6.
7.
8.
9.

Accrual Method of Accounting

Imprest Petty Cash Fund System
Perpetual System
Asset method for prepaid expenses
Assets are recorded net of freight
Straight Line Method for Depreciation
Purchase of Supplies at Reorder Point
Use of Special Journals
Use of an Accounting software in billing customers and in clocking in/out of
employee

B. CHART OF ACCOUNTS
Real Accounts
Current Assets (100)
Cash on hand
Petty cash fund
Change fund
Cash in Bank
Supplies
Prepaid rent

101
102
103
104
105
106

Non-Current Assets (200)

Delivery equipment
Accumulated depreciation-service equipment
Office equipment
Furniture and Fixtures
Accumulated depreciation-Furniture and Fixtures

210
211
220
230
231
104

Leasehold improvements
Accumulated depreciation-leasehold improvements
Security Deposits

240
241
250

Current Liabilities (300)

Utilities payable
SSS contribution payable
PhilHealth Contributions Payable
Pag-IBIG contributions payable
Income tax payable
Withholding tax payable
VAT payable

301
302
303
304
305
306
307

Non-Current Liabilities (400)

Loans payable

410

Partners Capital (500)

Barredo, Capital
Bestre, Capital
Calugan, Capital
Monsalud, Capital
Nazarro, Capital
Barredo, Drawing
Bestre, Drawing
Calugan, Drawing
Monsalud, Drawing
Nazarro, Drawing

501
502
503
504
505
506
507
508
509
510
Nominal Accounts

Revenue Accounts (600)

Sales
Sales Discount
Sales Returns and Allowances
Interest Income
Other Income
Expense Accounts (700)
Purchase
Purchase discount
Purchase return and allowance
Rent expense
Utilities expense
Gas, oil, and repairs expense

610
620
630
640
650
701
702
703
704
705
706

105

Depreciation expense
Amortization
Supplies expense
Internet fee
Salary expense
Insurance expense
SSS contributions
PhilHealth Contributions
Pag-IBIG contributions
Income tax expense
Withholding tax expense
Income Summary

707
708
709
710
711
712
713
714
715
716
717
900

C. DEFINITION OF ACCOUNTS
CURRENT ASSETS
These are items which are expected to be sold or otherwise used up in the near
future usually within one year, or one business cycle whichever is longer.
Cash on Hand
Debited: This is account is debited at the end of every shift after a cash count
has been made.
Credited: This account is credited when the total collections as of the designated
time per day has been deposited to the bank.
Petty Cash Fund
Debited: This account is debited when establishing or increasing the fund as well
as reversing the adjusting entry made at the close of the prior period.
Credited: This account is credited when adjusting the amount of un-replenished
expenses in Order to state the corrected petty cash balance.
Change Fund
Debited: This account is debited when establishing and increasing the fund.
Credited: This account is creditor when reducing the fund.
Cash in Bank
Debited: This account is debited for amounts debited in the band and during
adjustments regarding credit memos in bank reconciliations.
Credited: This account is credited for the account of withdrawals, and checks
issued and during the adjustments regarding debit memos on bank
reconciliations.

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Unused Supplies
Debited: This account is debited after receipt and inspection of the purchase
supplies
Credited: This account is credited for the amount of supplies consumed.
Prepaid rent
Debited: This account is debited for every advance payment made on the rentals
Credited: This account is credited when adjusting the amount of rentals actually
incurred for the period.
NON-CURRENT ASSETS
These are items of value which the organization has bought and will use for an
extended period of time.
Delivery Equipment
Debited: This account Is debited for the cost of the Delivery Equipment
(Computers, delivery truck, etc.) purchased. It is also debited for the cost of
betterments that increase delivery equipments life or capacity.
Credited: This account is credited upon the retirement, disposal or destruction of
Delivery Equipment
Accumulated Depreciation-Delivery Equipment
Debited: This account is debited when retiring, disposing and upon destruction of
the delivery equipment.
Credited: This account is credited when recording the periodic depreciation
expense for the Delivery equipment.
Office Equipment
Debited: This account is debited for the cost of the office equipment purchased. It
also debited for the cost betterments that increased its life or capacity.
Credited: This account is credited upon retirement, disposal or destruction of the
office equipment.
Accumulated Depreciation-Office Equipment:
Debited: This account is debited when retiring, disposing and upon destruction of
the office equipment.
Credited: This account is credited when recording periodic depreciation expense
for the office equipment
Furniture and Fixture
Debited: This account is debited for the cost of the furniture and fixtures
purchased. It is also debited for the cost of improvements that increase its life or
107

capacity.
Credited: This account is credited upon the retirement, disposal or destruction of
the furniture and fixtures
Accumulated Depreciation-Furniture and Fixtures
Debited: This account is debited when retiring, disposing and upon destruction of
the office equipment
Credited: This account is credited when recording the periodic depreciation
expense for the furniture
Leasehold Improvements
Debited: This account is debited for the cost of improvements and betterments
for the establishment.
Credited: This account is credited upon the retirement or destruction of the land
improvements.
Accumulated Depreciation-Leasehold Improvements
Debited: This account is debited retiring, disposing and upon destruction of land
improvements
Credited: This account is credited when recording the periodic depreciation
expense for the land improvement.
Security Deposit
Debited: This account is debited on excess of rent to be used as collateral by
lessor
Credited: This is credited when returned by lessor
CURRENT LIABILITIES
These are liabilities of the business that are to be settled in cash within the fiscal
year or the operating cycle, whichever period is longer.
Utilities Payable
Debited: This account is debited to recognize the payment made for utilities.
Credited: This account is credited to recognize a liability to pay for the utilities
expense upon receipt of the bill.
SSS Contributions Payable
Debited: This account is debited for the amount of employee and employer
contributions Remitted to SSS
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Credited: This account is credited for the amount withheld from employees
salaries representing SSS contributions including employers required
contribution.
PhilHealth Contributions Payable
Debited: This account is debited for the amount of contributions remitted to
PhilHealth
Credited: This account is credited for the amount withheld from employees
salaries representing PhilHealth contributions including employers required
contrition.
Income Tax Payable
Debited: This account is debited for the amount of partnership income tax paid to
the Bureau of Internal Revenue.
Credited: This account is credited to recognize liability for the income tax needed
to be paid.
Withholding Tax Payable
Debited: This account is debited for the amount of income taxes of employees
withheld and remitted to the Bureau of Internal Revenue. It is also debited for the
final withholding tax of the individual partners share distributed.
Credited: This account is credited for the amount deducted from employees
salaries representing income tax and the final withholding income tax on the
partnerships income.
NON-CURRENT LIABILITIES
Long-term liabilities are liabilities with a future benefit and mature more than one
year.
Loans Payable
Debited: This account is debited for the amount given as payment for the
principal of the loan.
Credited: This account is credited for the amount of liability supported by an
unconditional promise to pay at a certain determinable future date.
PARTNERS CAPITAL
The capital account of each partner represents their equity and contribution in the
partnership.
Barredo, Capital
Debited: This account is debited when closing the balance of the drawing
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account of With Darcy Barredo and the income summary of operations resulted
in a loss.
Credited: This account is credited for the contribution made by Dwith Darcy
Barredo to the partnership and to record his share of the partnerships profit.
Bestre, Capital
Debited: This account is debited when closing the balance of the drawing
account of Ralph Apsan Bestre and the income summary of operations resulted
in a loss.
Credited: This account is credited for the contribution made by Ralph Apsan
Bestre to the partnership and to record his share of the partnerships profit.
Calugan, Capital
Debited: This account is debited when closing the balance of the drawing
account of Yony Ruth Calugan and the income summary of operations resulted
in a loss.
Credited: This account is credited for the contribution made by Yony Ruth
Calugan to the partnership and to record his share of the partnerships profit.
Monsalud, Capital
Debited: This account is debited when closing the balance of the drawing
account of Kert Angelo Monsalud and the income summary of operations
resulted in a loss.
Credited: This account is credited for the contribution made by Kert Angelo
Monsalud to the Partnership and to record his share of the partnerships profit.
Nazarro, Capital
Debited: This account is debited when closing the balance of the drawing
account of Jestin Nazarro and the income summary of operations resulted in a
loss.
Credited: This account is credited for the contribution made by Jestin Nazarro to
the partnership and to record his share of the partnerships profit.

Barredo, Drawings
Debited: This account is debited when partner Dwith Darcy Barredo withdraws
cash from the partnerships bank account.
Credited: This account is credited when the balance of the drawing account of
Dwith Darcy Barredo is closed to his capital account.

110

Bestre, Drawings
Debited: This account is debited when partner Ralph Apsan Bestre withdraws
cash from the partnerships bank account.
Credited: This account is credited when the balance of the drawing account of
Ralph Apsan Bestre is closed to his capital account.
Calugan, Drawings
Debited: This account is debited when partner Yony Ruth Calugan withdraws
cash from the partnerships bank account.
Credited: This account is credited when the balance of the drawing account of
Yony Ruth Calugan is closed to his capital account.
Monsalud, Drawings
Debited: This account is debited when partner Kert Angelo Monsalud withdraws
cash from the partnerships bank account.
Credited: This account is credited when the balance of the drawing account of
Kert Angelo Monsalud is closed to his capital account.
Nazarro, Drawings
Debited: This account is debited when partner Jestin Nazarro withdraws cash
from the partnerships bank account.
Credited: This account is credited when the balance of the drawing account of
Jestin Nazarro is closed to his capital account.
REVENUE ACCOUNTS
Increase in the economic benefits during the period resulting from rendering
services.
Sales
Debited: This account is debited when closing the balance of the Account to the
Income Summary.
Credited: This account is credited for the receipt of payments for client billings for
the service rendered.
Sales Discount
Debited: This account is debited when a discount is recognized on the sale
Credited: This account is credited when closing the balance of the Account to the
Income Summary.

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Sales Returns and Allowances

Debited: This account is debited when a sale is returned
Credited: This account is credited when closing the balance of the Account to the
Income Summary.
Interest Income
Debited: This account is debited when closing the balance of the Account to the
Income Summary
Credited: This account is credited for the interest income from the partnerships
bank account.
Other Income
Debited: This account is debited when closing the balance of the Income
Summary
Credited: This account is credited for other income from extraordinary gains
EXPENSE ACCOUNTS
These are decrease in economic benefits during the period resulting from
resources used up in the course of earning revenues.
Purchase
Debited: This account is debited for good purchased.
Credited: This account is credited when closing the balance of the account to the
Income Summary.
Purchase Discount
Debited: This account is debited for when closing the balance of the account to
the Income Summary.
Credited: This account is credited for discount received on purchased goods
Purchase return and allowance
Debited: This account is debited when closing the balance of the account to the
Income Summary.
Credited: This account is credited returning a purchased good and recognized
and allowance

112

Rent Expense
Debited: This account is debited for the cost of renting the place of business
incurred to the month.
Credited: This account is credited when closing the balance of the account to the
Income Summary.
Utilities Expense
Debited: This account is debited for the cost of electricity and water used in the
business net of VAT
Credited: This account is credited when closing the balance of the account to the
Income Summary.
Gas, oil, and repairs expense
Debited: This account is debited for the cost of using and maintaining the delivery
truck
Credited: This account is credited when closing the balance of the account to the
Income Summary.
Depreciation Expense
Debited: This account is debited when recording the periodic depreciation of the
furniture and fixtures, service equipment, office equipment, and leasehold
improvements
Credited: This account is credited when closing the balance of the account to the
Income Summary.
Amortization
Debited: This account is debited for the periodic amortization of the computer
software used in the business
Credited: This account is credited when closing the balance of the account to the
Income Summary.
Internet Fee
Debited: This account is debited for the phone line and DSL connection bundle
plan charges incurred for the period net of VAT
Credited: This account is credited when closing the balance of the account to the
Income Summary.

113

Salary Expense
Debited: This account is debited for the compensation given to the employees for
the period.
Credited: This account is credited when closing the balance of the account to the
Income Summary.
Insurance Expense
Debited: This account is debited for the amount of insurance premium incurred
for the period.
Credited: This account is credited when closing the balance of the account to the
Income Summary.
SSS Contributions
Debited: This account is debited for the amount of SSS contribution shouldered
by the partnership
Credited: This account is credited when closing the balance of the account to the
Income Summary.
PhilHealth Contributions
Debited: This account is debited for the amount of PhilHealth contribution
shouldered by the partnership
Credited: This account is credited when closing the balance of the account to the
Income Summary.
Pag-IBIG Contributions
Debited: This account is debited for the amount of Pag-IBIG contribution
shouldered by the partnership
Credited: This account is credited when closing the balance of the account to the
Income Summary.
Income Tax Expense
Debited: This account is debited for the amount of income tax owned to the
government.
Credited: This account is credited when closing the balance of the account to the
Income Summary.

114

Withholding Tax Expense

Debited: This account is debited for the amount of final withholding tax on
partnerships income
Credited: This account is credited when closing the balance of the account to the
Income Summary.
Income Summary
Debited: This account is debited when closing the balance to the capital accounts
of the partners if the operations resulted in a loss. It is also credited when the
results of the operations resulted in a gain when closing the nominal accounts.
Credited: This account is credited when closing the balance to the capital
accounts of the partners if the operations resulted in a gain. It is also debited
when the results of the operations resulted in a loss when closing the nominal
accounts.
D. INTERNAL CONTROL

Internal controls are designed to provide reasonable assurance regarding the

achievement of objectives in the following categories:

Effectiveness and efficiency of operations

Reliability of financial reporting
Compliance with applicable laws and regulations

Internal control consists of five interrelated components. These are derived from
the way management runs an operation or function, and are integrated with the
management process.

Control Environment The control environment sets the tone of an

organization, influencing the control consciousness of its people. Control
environment factors include the integrity, ethical values and competence
of the entitys people; managements philosophy and operating style; the
way management assigns authority and responsibility, and organizes and
develops its people; and the attention and direction provided by the
establishment.
Risk Assessment Risk assessment is the identification and analysis of
relevant risks to achievement of the objectives, forming a basis for
determining how the risks should be managed.
Control Activities Control activities are the policies and procedures that
help ensure management directives are carried out. They include a range
of activities as diverse as approvals, authorizations, verifications,
115

reconciliations, reviews of operating performance, security of assets, and

segregation of duties.
Information and Communication Pertinent information must be identified,
captured and communicated in a form and timeframe that enables people
to carry out their responsibilities. Information systems produce reports
containing operational, financial and compliance-related information that
make it possible to run and control the organization. Effective
communication also must occur in a broader sense, flowing down, across
an up the organization.
Monitoring Internal control systems need to be monitored a process
that assess the quality of the systems performance over time. This is
accomplished through monitoring activities, separate evaluations or a
combination of the two. Monitoring occurs in the course of operations.
Internal control deficiencies should be reported upstream, with serious
matters reported to top management and the Regents.

Steps that need to be taken:

Implement segregation of duties where duties are divided, or segregated,

among different people to reduce risk of error or inappropriate actions. No
single person has control over all aspects of any financial transaction.
Make sure transactions are authorized by a person who is delegated with
approval authority when the transactions are consistent with policy and
funds are available.
Ensure records are routinely reviewed and reconciled, by someone other
than the preparer or the one transacting, to determine that transactions
have been properly processed.
Make certain that equipment, inventories, cash and other property are
secured physically, counted periodically, and compared with item
descriptions shown on control records.
Provide employees with appropriate training and guidance to ensure they
have the direction and supervision, and are aware of the proper channels
for reporting suspected improprieties.
Make sure that policies and operating procedures are formalized and
communicated to employees. Documenting policies and procedures and
making them accessible to employees helps provide day-to-day guidance
to staff and will promote continuity of activities in the event of prolonged
employee absences or turnover.

116

1. Revenue and Receipts

Cash received by porter/driver shall be all remitted to the casher, and then
the amount is checked by the casher by comparing it to the receipts.
At the end of work, the cashier will have to count the total cash excluding
the change fund and fill-up a cash count sheet, and afterwards, seal the
cash in an envelope and keep it at the cash register. The General
Manager, using the source documents shall authenticate the cash count
sheet while also recounting the cash. Any shortage if found to be the fault
of the cashier shall be charged to him/her and any excess shall be treated
as other income.
Footages from the surveillance cameras installed in the establishment can
be reviewed by the General Manager if he/she is having doubts.

2. Purchase and Disbursements

Before purchases orders for supplies are made and sent, purchase
requisitions should be presented first to the General Manager for his
approval.
For purchases regarding Non-Current Assets, approval of all the partners
is required. Canvass sheets from three suppliers with a good reputation
along with their contact information will serve as supporting documents
which the General Manager must provide during the scheduled monthly
meeting of all the partners.
Upon receipt of the items purchased from the supplier, the items should
be inspected first by the receiving employee using blank receiving reports
which will be shown to the General Manager for him to compare the
specifications in the receiving report and that of the purchase order. The
General Manager will confirm the correctness and completeness of the
items by signing the documents
Use of Purchase Journals in recording every purchase transaction.
On due date, if the amount is less than PhP 5,000, the payment will come
from the petty cash fund wherein the General Managers signature on the
petty cash voucher will suffice.
All disbursements greater than 5,000 pesos should be made using prenumbered checks with a properly filled up check voucher, that is prenumbered as well, and accurately logged in a check register for every
issuance. Every check issued must be signed by the General Manager
and any of the other partners to be honored by the bank.
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3. Payroll
Employment Procedures

Hiring and Firing of employees shall be made according to established

rules and procedures and in accordance with law.
Employment records containing employment information, pay increases,
absences, holidays, sick leaves, specimen signatures and others shall be
kept.
Increase in salary shall be conferred and authorized by the partners to
ensure the payments are made at correct rates.

Time Records

Employees are required to use the bundy clock which is maintained by the
security guard as they go to work and time out before they leave the
business premise.
At every pay period, data from the bundy clock is retrieved and a copy will
be handed to employees to attest the accuracy of the report

Payroll Payments

Payroll payment shall be in check and placed in envelopes to be

distributed by the General Manager and ensure that each is delivered to
rightful owner.
Salaries of absent employees shall not be given unless proper
authorization is presented.
Unclaimed checks would properly be disposed of.
When the unclaimed salaries are repaid, another check is drawn and the
General Manager must note the date when the payment in the check
register.

E. BUSINESS FLOW CHARTS

The flowchart is the visual presentation of the flow of data throughout the system,
the operations performed within the system and sequence in which they are performed.
A business cycle flow chart is a graphical representation of how the different
processes works while showing its sequence of steps. It is a means of clarifying how
things are currently working and how they can be improved. It also help identify the key
elements of a process, while identifying where one process specifically ends and the
118

next one specifically starts. Creating a flow chart establishes a common understanding
about the processes. Flowcharts also uncover processes which are redundant or
misplaced, with this; it could help to further develop the processes. In addition,
flowcharts help in the proper assignment of duties to the different employees and in
determining the important areas for monitoring and data collection to identify areas for
improvement.
Billing and Cash Receipts Flowchart
Customer

Customers
order is
taken
Customer is
informed on
their total bill

Official
Receipt is
made

Order is
delivered

Payment is
collected

Official Receipt
is given to the
Customer

END
119

Considering the nature of the business, receipt of cash will be after the customer
confirmed and received the product. However, the customers' total bill will be informed
immediately and receipts will be made immediately after the order has been placed.
These receipts will then be given to the customers when order is received. Cash
receipts from sale will then be remitted to the cashier recorded by the General Manager
on the Revenue Journal and Cash Receipts Journal.

120

Cash Disbursement Flowchart

Vendor

Bill is received
from Vendor

General
Manager
Records Liability

Disbursement
Voucher is
prepared

Vouchers are
filled according
to due dates

General Manager
prepares cash payments

Payment is
recorded

END

Cash Disbursement procedure starts when bills for the service received or items
purchased has been received. General Manager will then record the liability on the
ledger and then prepare the necessary disbursement voucher for the release of funds.
The vouchers will then be filed and arranged according to their due dates. For petty
cash disbursements and disbursements needed to pay suppliers, the General
Manager's authorization is sufficient for the release of funds, while authorization from
the Partners is needed for the release of funds for unusual expenses, like purchase of
new equipment. The cash disbursement will then be recorded by the General Manager
in the Cash Disbursement Journal.
121

Purchase Flowchart

Reorder
Point is
reached
Approval of
Purchase
Requisition

Decision of
Partners to
purchase Noncurrent Assets

Purchase of
Supplies or NonCurrent Asset

Inspect
Purchases

Record
Purchase

END

Purchase procedure will start when reorder point is reached, in the case of Cyber
Meat Shop, reorder point will be daily since purchases from suppliers will be equal to
the deliveries for the next day. Purchase procedure will also start when an agreement is
reached among the partners to purchase non-current assets. Purchase Requisition
approval will be from the General Manager for reorder point and approval of Partners
will be for purchase of non-current assets. After authorization, General Manager can
now prepare purchase order and send it to suppliers. After receipt of orders, it is proper
for ordered items to be inspected. Drivers-Porters and Cashier will be in charged in the
inspection of the ordered items, after which, result will compare with the purchase order
sent to the suppliers. After verifying the items, cashier will report such to the General
Manager for him to record the purchase on the Purchase Journal.
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Payroll Flowchart
Daily Time Record

Payroll is
prepared

Approval of
Salaries
computed

Payroll
Administrator/Partn
er prepares cash
salary

Record
Payment

END

At the end of every month, one of the Partners in charged as the Administrator of
the payroll will collect the summary of hours and gross pay of all the employees. Partner
will then compute each employee's salary using excel. Employees ' salaries will then be
prepared and showed to other Partners for approval before issuance to employees.
Payment of salaries will then be recorded on the Cash Disbursement Journal and in the
corresponding Subsidiary Ledgers.
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G. BUSINESS PAPERS AND DOCUMENTS

1. Official Receipt
This is a report showing the details on the transaction between the customer and
the business.

Cyber Meat Shop

Labsan Street, Baguio City
(074) 424-XX-XX or (+63) 09XXXXXXXXX
Transaction Number: XXXXX
TIN Number: XXX-XXX-XXX
Porter: ___________________________
QTY

DESCRIPTION

PRICE

TOTAL

TOTAL

124

2. Cash Count Sheet

This form is used in reconciling the amount of cash on the cashiers register net
of change fund at the end of his/her shift and the cash collections according to the
records.

Cash Count Sheet

No. _______

Qty.

Denomination

Total
1000
500
200
100
50
20
10
5
1
0.25

TOTAL
Remitted:
Time:
Date:
Cashier:
Recorded:
Time:
Date:
Signature

125

3. Purchase Requisition: A form used to request to items needed to be purchased.

Cyber Meat Shop

Labsan Street, Baguio City
(074) 424-XX-XX or (+63) 09XXXXXXXXX

PURCHASE REQUISITION

No:
XXXXX
Date:
____________

Qty.

Description

Unit
Price

Total

Purpose: ________________________________
Date Needed: ____________________________
Prepared by:
___________________________
Approved by: __________________________

126

4. Purchase Order
A form used by concerned personnel to order items specifying the terms of the
transaction.

Cyber Meat Shop

Labsan Street, Baguio City
(074) 424-XX-XX or (+63) 09XXXXXXXXX
PURCHASE ORDER
To: ___________________________________________
Address: _______________________________________________
Terms: _________________________
No:
XXXXX
Date:
Ship via: ____________________________
____________

Qty.

Description

Unit
Price

Total

Prepared by:
___________________________

5. Receiving Report
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A report made by the receiving party in order that better control may be secured
over the purchasing function.

Cyber Meat Shop

Labsan Street, Baguio City
(074) 424-XX-XX or (+63) 09XXXXXXXXX
RECEIVING REPORT
Received by: _________________________
Checked by:
____________________________
Qty.

Description

No:
XXXXX
Date:
____________
Remarks

Shipper: ___________________________
Carrier: ____________________________
Invoice No. : ________________________

6. Petty Cash Voucher

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This form shows the detail of disbursements made from the petty cash fund that
needs to be reimbursed at the end of the period.

PETTY CASH VOUCHER NO. XXXXX

Received by: _________________________

No:
XXXXX
Date:
____________

Checked by: ____________________________

Qty.

Description

Explanation

Remarks

Total
Date: ___________________________
Recorded by : ________________________

7. Check Voucher
This form shows the details of disbursement made from the checking account.
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Date:
_________________
Authorized by:
__________________________

CHECK VOUCHER NO. XXXXXX

Check Number

Payee

Explanation

Amount

Total

GENERAL JOURNAL
The general journal is where double entry bookkeeping entries are recorded by
debiting one account and crediting another account with the same amount. The amount
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debited and the amount credited should always be equal, thereby ensuring the
accounting equation is maintained.

Date

Particulars

GENERAL JOURNAL
PR
Debit

Credit

SPECIAL JOURNALS
Special Journals are designed to facilitate the process of journalizing and posting
transactions. Special Journals are used for the most frequent transaction in a business.

Date

CASH RECEIPTS JOURNAL

Particulars
PR
Debit

Credit

*Cash receipts journal is used to record only cash receipts transactions.

Date

CASH DISBURSEMENT JOURNAL

Particulars
PR
Debit

Credit

*Cash disbursements journal is used to record only cash payments transactions.

Date

Particulars

PURCHASE JOURNAL
PR
Debit

Credit

*Purchases journal is sued to record only purchases of merchandise on account.

GENERAL LEDGER
The general ledger is a collection of the group of accounts that supports the value of
items shown in the major financial statements.
131

Date

Particulars

PR

GENERAL LEDGER
Debit
Date

Particulars

PR

Credit

SUBSIDIARY LEDGER
The subsidiary ledger is a subset of the general ledger used in accounting. The
subsidiary ledger sows detail for part of the accounting records.
SUBSIDIARY LEDGER
Account Number XXx
Date
Particulars

PR

Debit

Date

Particulars

PR

Credit

CHECK REGISTER
This document shows the details of the checks issued

Date

Check Number

CHECK REGISTER
Payee
Amount

Signatory

132