Professional Documents
Culture Documents
You may already have some or most of the knowledge and skills
covered in this learner’s guide because you have:
Been working for some time.
Already completed training in this area.
At the end of this module is a Learner’s Diary. Use the diary to record
important dates, jobs undertaken and other workplace events that will
assist you in providing further details to your facilitator/ assessor. A Record
This module was prepared to help you achieve the required competency
in Bookkeeping NC III. This will be the source of information for you to
acquire knowledge and skills in this particular trade independently and at
your own pace, with minimum supervision or help from your instructor.
Talk to your facilitator and agree on how you will both organize the
Training of this unit. Read through the module carefully. It is divided
into sections, which cover all the skills and knowledge you need to
successfully complete this module.
Work through all the information and complete the activities in each
section. Read information sheets and complete self check. Suggested
references are included to supplement the materials provided in this
module.
Most probably your facilitator will be your supervisor or manager.
Your facilitator will support and correct you.
Your facilitator will tell you about the important things you need to
consider when you are completing activities and it is important that
you listen and take notes.
You will be given plenty of opportunity to ask questions and practice
on the job. Make sure you practice new skills during regular work
shifts. This way you will improve both your speed and memory and
also your confidence.
Talk to more experience work-mates and ask for their guidance.
Use the self-check questions at the end of each section to test your
own progress.
When you are ready, ask your facilitator to watch you perform the
activities outlined in this module.
Ask you work through the activities; ask for written feedback on your
progress. Your facilitator keeps feedback/ pre-assessment reports for
this reason. When you have successfully completed each element, ask
the facilitator to mark on the reports that you are ready for
assessment.
When you have completed this module, and feel confident that you
have had sufficient practice, your facilitator will arrange an
appointment with registered assessor’s to assess you. The results of
your assessment will be recorded in your competency Achievement
Record.
MODULE CONTENT
Learning Outcome:
Upon completion of this module, you must be able to:
2. Analyze documents
Assessment Criteria:
1. List of asset, liability, equity, income, and expense account titles
are prepared in accordance with Generally Accepted Accounting
Principles.
2. Chart of Accounts is coded according to industry practice.
3. Documents are gathered, checked and verified in accordance with
verification and validation processes.
4. Account titles are selected in accordance with standard selection
processes.
5. Journal entries are prepared in accordance with generally accepted
accounting principles.
6. Debit and credit account titles are determined in accordance with
chart of accounts.
7. Explanation to journal entry is prepared in accordance with the
nature of transaction.
CONTENTS:
ASSESSMENT CRITERIA:
CONDITIONS:
1. Calculator
2. Journal Paper
3. Learning Materials
4. Pencil
5. Eraser
6. Philippine Financial Reporting Standards
ASSESSMENT METHOD:
1. Written test
2. Practical/performance test
3. Interview
4. Practical exercises
Learning Objectives:
After reading this information sheet, you should be able to:
The time period concept provides that accounting take place over
specific time periods known as fiscal periods. These fiscal periods are of
equal length, and are used when measuring the financial progress of a
business.
The cost principle states that the accounting for purchases must be at
their cost price. This is the figure that appears on the source document for
the transaction in almost all cases. There is no place for guesswork or
wishful thinking when accounting for purchases.
The value recorded in the accounts for an asset is not changed until
later if the market value of the asset changes. It would take an entirely new
transaction based on new objective evidence to change the original value of
an asset.
There are times when the above type of objective evidence is not
available. For example, a building could be received as a gift. In such a case,
the transaction would be recorded at fair market value which must be
determined by some independent means.
Learning Objectives:
After reading this information sheet, you should be able to:
ACCOUNTING EQUATION
ASSETS = EQUITIES
“Equity” include all the vested rights of person in the assets of the business.
It is classified into the following:
EQUITIES
CAPITAL
Since there are two sources of equities, one from the creditors and the other
from the owner, then we can express the accounting equation as:
Every transaction must be analyzed with respect to its effects on the assets,
liabilities and capital of the business. A transaction involves at least two of
the elements appearing on the accounting equation.
Oct. 1- Mr. Juan Dela Cruz opened a motor repair shop and invested P100
000 cash.
A = L + C
Cash = + Gil, capital
P100 000 = 0 + P100 000
P100 000 = P100 000
Effect: Increase in asset, increase in capital
Oct. 3- He purchased repair supplies worth P25 000 on credit from Rosario
Trading.
A = L + C
Cash+Repair Supplies = Accounts Payable + Gil, capital
P100 000+P25 000 = P25 000 +100 000
P 125 000 = P 125 000
Effect: Increase in asset, increase in liabilities
Oct. 5- He bought a table and chairs for the business, P 6 000 in cash.
A = L + C
Cash+Repair Supplies+Furniture = Accounts payable + Gil,
capital
P100 000+P25 000+P6 000 = P25 000 + P100 000
(6 000)_____________________ = __0_________________0_____
P94 000+P25 000+P6 000 = P25 000 + P100
000
P 125 000 = P125 000
Effect: Increase in one form of asset, decrease in another form of asset
Oct. 20- Paid the note issued to Rosario Trading in Oct. 12.
A = L + C
Cash+Repair Supplies+Furniture =Accounts payable+Notes payable+
Gil, capital
P92 000+P25 000+P6 000 = 0 + P 25 000+ P
98 000
(25 000) = (25 000) +
0________
P67 000+P25 000+P6 000 = 0 +
P98 000
P 98 000 = P 98 000
Effect: Decrease in asset, decrease in liabilities
A = L + C
Cash+Repair Supplies+Furniture =Accounts payable+Notes
payable+Gil, capital
Oct. 1 P100 000 = 0 +P100
000
Oct. 3 _____ P 25 000 = P25 000 +
0_______
P100 000+P25 000 = P25 000
+100 000
P 125 000 = P 125 000
Oct. 5 (6 000) P6 000 = 0 +
0
P94 000+P25 000+P6 000 = P25 000
+P100 000
P 125 000 = P125 000
Oct. 12 _______0 = (25 000) + P25 000 +P100
000
P94 000+P25 000+P6 000 = 0 +P25 000
+P100 000
P 125 000 = P125 000
Oct. 15( 2 000) = 0 +( 2
000)
P92 000+P25 000+P6 000 = 0 + P 25
000+P 98 000
P 123 000 = P 123 000
Oct. 20 (25 000) = (25
000+0________
P67 000+P25 000+P6 000 = 0 +
P98 000
P 98 000 = P 98 000
State the effects of the following transactions on the assets, liabilities and
capital by putting a check if there is an increase or decrease on them.
Learning Objectives:
After reading this information sheet, you should be able to:
1. Define journalizing.
3.Journalize transactions
JOURNALIZING
Assets = Liabilities + Owner's Equity
and
Debits = Credits
Steps for the Process of Journalizing:
Competency-based Learning Date Developed: Document No.
June 23, 2021
Material for Issued by:
BOOKKEEPING Page 19 of
NC III Developed by: Revision No. 26
Module Title: Journalize PRIMETECH
Transactions SKILLS
INSTITUTE
Following are the steps involved in the process of journalizing a transaction:
(i) Determine the titles of the accounts involved.
(ii) Understand nature of the accounts.
(iii) Apply the rule of Debit & Credit described above.
(iv) And make the necessary journal entry.
JOURNAL EXAMPLE
The following illustration draws upon the facts for the Xao Corporation.
Specifically it shows the journalizing process for Xao’s transactions. Review
it carefully, specifically noting that it is in chronological order with each
transaction of the business being reduced to the short-hand description of
its debit/credit effects. For instance, the first transaction increases both
cash and equity. Cash, an asset account, is increased via a debit. Capital
Stock, an equity account, is increased via a credit. The next transaction
increases Advertising Expense "with a debit" and decreases Cash "with a
credit."
In reviewing the general journal for Xao, note that it is only two pages
long. An actual journal for a business might consume hundreds and
thousands of pages to document its many transactions. As a result, some
businesses may maintain the journal in electronic form only.
The special journals do not replace the general journal. Instead, they
just strip out recurring type transactions and place them in their own
separate journal. The transaction descriptions associated with each
transaction found in the general journal are not normally needed in a
special journal, given that each transaction is redundant in nature. Without
special journals, a general journal can become quite voluminous.
PAGE NUMBERING
RECAP
The general journal does nothing to tell a company about the balance
in each specific account. For instance, how much cash does Xao
Corporation have at the end of January? One could go through the journal
and net the debits and credits to Cash (P25,000 - P2,000 + P4,000 - P500 +
P4,800 - P5,000 = P26,300). But, this is tedious and highly susceptible to
error. It would become virtually impossible if the journal were hundreds of
pages long. A better way is needed. This is where the general ledger comes
into play.
Mr. Jon invests $5000 cash in the business. Let us analyze this transaction.
(i) Title of relevant accounts : 1.)________________ and 2.)________________
(ii) Nature of account : 3.)_______________________and 4.)________________
(iii) Apply the rule : 5.)_____________________ Debit and 6.) ____________Credit
(iv) Journal entry : 7.)___________ Debit. and 8.)___________________9.)Credit
P_____________
11. Cash
12. Capital
13. Assets
14. Equity
15. Cash
16. Capital
17. Cash
18. Capital
19. 5000
10. Journalizing
Calculator
Paper
Supplies and Materials: Learning Materials
Pencil
Eraser
Written test
Assessment Method: Practical/performance test
Interview
JOURNALIZE TRANSACTIONS
The following transactions relate to the first month's operation of Mr. Rose:
Comments/Suggestions:
Trainer:_____________________________________Date:____________________