Professional Documents
Culture Documents
Accountancy,
Business, and
Management 2
Prepared by:
MARK VINCENT B. BANTOG, LPT
CHAPTER 1: Accounting Books – Journal and
Ledgers
Objectives:
Differentiate the journal from the ledger.
Understand the purpose of the journal and
the ledger.
Prepare journal entries to record business
transactions.
Determine the balances of accounts using the
T-account.
What is the Accounting Equation?
xx xx
a chronological record of the entity’s
transactions
shows all the effects of business
transaction in terms of debits and credits
book of original entry
general journal is the simplest journal
GENERAL JOURNAL
GENERAL JOURNAL
2019
Initial Investment
February 14 Acquired vehicle for P950,000.
March 1 Purchased office equipment for P 150,000; paying
P 80,000 in cash and the balance next month.
GENERAL JOURNAL
2019
Feb. 14 Vehicle P 950,000
Cash P 950,000
Acquisition of vehicle
Balance Sheet
Income Statement
GENERAL JOURNAL
Date Account Titles and Explanation P.R. Debit Credit
2019
Feb. 14 Cash 101 P 1,200,000
Co, Capital 110 P 1,200,000
Initial Investment
2019
P 1,200,000
Feb. 14 P 1,200,000
GENERAL JOURNAL
Date Account Titles and Explanation P.R. Debit Credit
2019
Feb. 14 Cash 101 P 1,200,000
Co, Capital 110 P 1,200,000
Initial Investment
2019
P 1,200,000
Feb. 14 P 1,200,000
A group of like accounts that contains the
independent data of a specific general
ledger.
Created or maintained if individualized
data is needed for a specific general
ledger account.
The total amount of subsidiary ledgers
should equal the balance in the general
ledger.
THANK
YOU!