SPECIAL JOURNAL

PURCHASE JOURNAL

 Purchase of merchandise on cash and account basis.

 Kapag bumili ka ng goods tapos on account mo siya babayaran or utang mo pa siya sa
binilhan mo sa purchase journal mo siya ilalagay.
Example:

Purchase 15,000
Accounts Payable 15,000

CASH PAYMENTS JOURNAL

 All transactions with a credit to cash on hand and in bank.

 Ito yung binayaran mo cash on hand.
 Cash in bank
Example:

Accounts Payable 15,000

Cash on Hand 15,000

Accounts Payable 15,000

Cash in Bank 15,000

Rent Expense 15,000

Cash on hand 15,000

SALES JOURNAL

 All sales of merchandise on account and cash basis.

 Kapag may bumili sa store niyo.
 Nabenta tapos utang siya ng customer

Example:

Accounts Receivable 15,000

Sales 15,000

CASH RECEIPTS JOURNAL

 All transactions with a debit to cash on hand and in bank.

 Natatanggap mong pera
Example:
 Cash on Hand 15,000
Accounts Receivable 15,000

Cash in Bank 15,000

Sales 15,000

NOTE:

Net Credit Sales – sales or cash sales

Net book value/ carrying value

MERCHANDISING

Shipping Terms:

FOB Shipping Point

 The buyers pays the freight – FREIGHT IN

FOB Destination

 The seller pays the freight – FREIGHT OUT

FOB Shipping Point:

Freight Prepaid (abono) – Freight In

 Seller pays freight & adds this to the account of the buyer.

Freight Collect – Freight Out

 Seller does not pay the freight

NOTE:

Purchases – contra asset

Freight – adjunct account

Selling Expense (in Income Statement) – gastos kapag nagbenta ka.

General and Administrative Expense (in Income Statement) – gastos ng office.

Voucher – cash on hand

Check Voucher – cash in bank

Cash Voucher – cash on hand

NOTE IN JOURNALIZING:

Accounts Payable 50,680

Purchase Discount (101,360 x 2%) 2,027.2
Cash on Hand (50,680 – 2,027.2) 48,652.80
 Kapag may discount yung partial payment and discount mo sa next payment ay yung
remaining balance.
 Kapag walang discount yung partial payment ang discount mo sa next payment ay yung
original price.

NOTE:

Sale of Fixed Assets (Property & Equipment)

Formula: Net book value = Cost of equipment – accumulated

Gain on Sale of Equipment = Selling Price – Net book value

Example:

Selling Price = P2,500

Cost of Equipment = P5,000

Accumulated = P3,000

Net book value = 5,000 – 3,000 = P2,000

Therefore, there is a gain on sale of equipment = P500

P2,500 – P2,000 = P500

ADJUSTING ENTRIES

Depreciation Expense

 Is the allocation of the cost of the asset throughout its economic/ useful life.

Prepaid Expense

 Expenses paid in advance by the business.

 Expense Method
 Asset (unexpired/unused)
 The Expense account will be in CREDIT.
 Example: Supplies Expense Method (unused portion)
 Asset Method
 Expense (expired/used)
 The Expense account will be in DEBIT.
 Example: Supplies Asset Method (used portion)

Unearned Income

 Income collected in advance.

 Income Method
 Unearned
 The Income account will be in DEBIT.
 Liability Method
 Earned income
 The Income account will be in CREDIT.

ACCOUNTING CYCLE

REVERSING ENTRIES

Adjusting entries Not reversed

1) Depreciation Expense 3) Prepaid expense when ASSET method is

used
2) Bad Debts Expense 4) Unearned Income when LIABILITY method is
used
Adjusting entries Reversed

1) Accrued Income 3) Prepaid expense when EXPENSE method is

used
2) Accrued expenses 4) Unearned Income when INCOME method is
used