CHAPTER 5

BOOK OF ACCOUNTS & DOUBLE-ENTRY SYSTEM

BOOK OF
ACCOUNTS
AND
DOUBLE ENTRY
SYTEM
CHAPTER 5
BOOK OF ACCOUNTS & DOUBLE-ENTRY SYSTEM

LEARNING 1
OBJECTIVES
IDENTIFY THE USES OF THE TWO BOOKS OF ACCOUNTS

2 ILLUSTRATE THE FORMAT OF GENERAL AND SPECIAL JOURNALS

3 ILLUSTRATE THE FORMAT OF GENERAL AND SUBSIDIARY LEDGERS

TODAY'S
AGENDA
CHAPTER 5
BOOK OF ACCOUNTS & DOUBLE-ENTRY SYSTEM

BOOK ACCOUNTS OF

JOURNAL LEDGER

General and General and

Special Journals Subsidiary Ledgers
CHAPTER 5
BOOK OF ACCOUNTS & DOUBLE-ENTRY SYSTEM

Book of 1
SPECIAL JOURNAL
original
IS USED TO RECORD ALL TRANSACTIONS WITH SIMILAR NATURE, EXAMPLE:

SALES JOURNAL CASH RECEIPTS JOURNAL

PURCHASES JOURNAL CASH DISBURSEMENTS JOURNAL

entries THE JOURNAL IS THE

ACCOUNTING RECORD WHERE
2
GENERAL JOURNAL
ALL OTHER TRANSACTIONS THAT CANNOT BE RECORDED IN THE
SPECIAL JOURNALS ARE RECORDED IN THE GENERAL JOURNAL

BUSINESS TRANSACTIONS ARE

FIRST RECORDED.
CHAPTER 5
BOOK OF ACCOUNTS & DOUBLE-ENTRY SYSTEM

Book of 1
GENERAL LEDGER
FINAL
CONTAINS ALL THE ACCOUNTS APPEARING
IN THE TRIAL BALANCE.

entries THE LEDGER IS USED TO

CLASSIFY THE EFFECTS OF THE
SUBSIDIARY LEDGER
2 PROVIDES A BREAKDOWN OF THE BALANCES OF
CONTROLLING ACCOUNTS.

BUSINESS TRANSACTIONS ON
THE ACCOUNTS.
CHAPTER 5
BOOK OF ACCOUNTS & DOUBLE-ENTRY SYSTEM

LET’S SUMMARIZE
CHAPTER 5
BOOK OF ACCOUNTS & DOUBLE-ENTRY SYSTEM

FORMAT
OF THE
GENERAL
JOURNAL
CHAPTER 5
BOOK OF ACCOUNTS & DOUBLE-ENTRY SYSTEM

FORMAT
OF THE
LEDGERS
CHAPTER 5
BOOK OF ACCOUNTS & DOUBLE-ENTRY SYSTEM

DOUBLE-ENTRY
SYSTEM
* CONCEPT
OF DUALITY
EACH TRANSACTION IS RECORDED IN
TWO PARTS – DEBIT AND CREDIT

* CONCEPT OF
EQUILIBRIUM
EACH TRANSACTION IS RECORDED IN
TERMS OF EQUAL DEBITS AND CREDITS
CHAPTER 5
BOOK OF ACCOUNTS & DOUBLE-ENTRY SYSTEM

NORMAL BALANCES
OF ACCOUNTS
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BOOK OF ACCOUNTS & DOUBLE-ENTRY SYSTEM

RULES OF DEBITS CREDITS AND

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BOOK OF ACCOUNTS & DOUBLE-ENTRY SYSTEM

BALANCE
SHEET
ACCOUNTS
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BOOK OF ACCOUNTS & DOUBLE-ENTRY SYSTEM

INCOME
STATEMENT
ACCOUNTS
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BOOK OF ACCOUNTS & DOUBLE-ENTRY SYSTEM

CONTRA-ACCOUNTS ADJUNCT ACCOUNTS

- +
Deduction to Addition to
their related their related
accounts accounts
CHAPTER 5
BOOK OF ACCOUNTS & DOUBLE-ENTRY SYSTEM

DO YOU HAVE

ANY QUESTIONS?
Feel free to use the Canvas
Discussion Page or you can ask
me on the Group Chat.
CHAPTER 5
BOOK OF ACCOUNTS & DOUBLE-ENTRY SYSTEM

THANK YOU
FOR JOINING
TODAY'S CLASS.