Fundamentals of Accounting Exercise Workbook: FABRO, Aienna Gabrielle A., BSA-BBA

SAP B1 on Cloud – Fundamentals of Accounting
Fundamentals of Accounting
EXERCISE WORKBOOK
FABRO, Aienna Gabrielle A., BSA-BBA
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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph
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FundAcc Exercise Workbook (2) printed on 12/15/2021 9:02 AM

Table of Contents
1. Basic Navigation ........................................................................................................................................ 4
Exercise 1.1 ............................................................................................................................................... 4
Exercise 1.2 ............................................................................................................................................... 4
2. Introduction to Fundamentals of Accounting ........................................................................................... 5
Exercise 2.1 ............................................................................................................................................... 5
3. Chart of Accounts...................................................................................................................................... 6
Exercise 3.1 ............................................................................................................................................... 6
4. Subsidiary Ledgers .................................................................................................................................... 7
Exercise 4.1 ............................................................................................................................................... 7
5. The Accounting Cycle ................................................................................................................................ 8
Journalizing ................................................................................................................................................... 8
Exercise 5.1 ........................................................................................................................................... 8
Exercise 5.2 ........................................................................................................................................... 9
Manual Journal Entry and Journal Vouchers .......................................................................................... 10
Exercise 5.3 ......................................................................................................................................... 10
Exercise 5.4 ......................................................................................................................................... 11
Exercise 5.5 ......................................................................................................................................... 12
Exercise 5.6 ......................................................................................................................................... 13
Special Journals (Purchase) ..................................................................................................................... 14
Exercise 5.7 ......................................................................................................................................... 14
Exercise 5.8 ......................................................................................................................................... 15
Exercise 5.9 ......................................................................................................................................... 16
Special Journals (Disbursements) ........................................................................................................... 17
Exercise 5.10 ....................................................................................................................................... 17
Exercise 5.11 ....................................................................................................................................... 18
Exercise 5.12 ....................................................................................................................................... 19
Special Journals (Sales) ........................................................................................................................... 20
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Exercise 5.13 ....................................................................................................................................... 20

Exercise 5.14 ....................................................................................................................................... 21
Exercise 5.15 ....................................................................................................................................... 22
Special Journals (Collection) ................................................................................................................... 23
Exercise 5.16 ....................................................................................................................................... 23
Exercise 5.17 ....................................................................................................................................... 24
General Ledger ............................................................................................................................................ 25
Exercise 5.18 ....................................................................................................................................... 25
Adjusting Entries ......................................................................................................................................... 26
Exercise 5.19 ....................................................................................................................................... 26
Exercise 5.20 ....................................................................................................................................... 27
Exercise 5.21 ....................................................................................................................................... 28
Unadjusted Trial Balance ............................................................................................................................ 29
Exercise 5.22 ....................................................................................................................................... 29
Adjusted Trial Balance ................................................................................................................................ 30
Exercise 5.23 ....................................................................................................................................... 30
Financial Statements ................................................................................................................................... 31
Exercise 5.24 ....................................................................................................................................... 32
Exercise 5.25 ....................................................................................................................................... 34
Period End-Closing ...................................................................................................................................... 35
Exercise 5.26 ....................................................................................................................................... 35
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1. Basic Navigation
Exercise 1.1
Fill each blank with the appropriate words or terminologies that will make the statements correct.
1. The MENU BAR displays at the top of the screen. It contains the Windows standard menu (File, Edit,
W window, Help) as well as generic SAP Business One functions.
2. The TOOL BAR is a collection of icon buttons that grant you easy access to commonly used functions.
3. Navigation in SAP Business One is done using the MODULES MENU. It arranges the functions of the
individual applications in a tree structure.
4. The users of SAP Business One are defined in the USER-SETUP window.
5. Accessing SAP Business One on Cloud is done using WEB BROWSER like Google Chrome, Mozilla
Firefox or Safari.
Exercise 1.2
Identify the terminologies being described by each sentence.
1. This is a business management software that allows an organization to use a system of integrated applications
to manage the business. It aims to serve as a backbone for your whole business. ERP SYSTEM
2. This is also known as Internal Cloud, is a cloud-based infrastructure operated exclusively for a single
organization with all data protected behind an internal firewall. PRIVATE CLOUD
3. This is also known as External Cloud, is available to the public where data are created and stored on
third-party servers. PUBLIC CLOUD
4. This is a key feature of cloud computing where resources can be accessed anywhere (except on
limitations set by company's internal control). LOCATION INDEPENDENCE
5. This the place where SAP, a European multinational software corporation, was founded in 1972.
WALDORF GERMANY
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2. Introduction to Fundamentals of Accounting

Exercise 2.1
1. ACCOUNTING is a systematic process of identifying, recording, measuring, classifying, verifying,

summarizing, interpreting, and communicating financial information.
2. FRA LUCA PACCIOLI is known as the Father of Accounting.
3. A BUSINESS ENTITY an organization that uses economic resources or inputs to provide goods or
services to customers in exchange for money or other goods and services.
4. COUBLE ENTRY BOOKKEEPING is the fundamental concept underlying present-day bookkeeping and
accounting. This is based on the fact that every financial transaction has equal and opposite effects in at
least two different accounts.
5. ACCRUAL PRINCIPLE is the concept that accounting transactions should be recorded in the
accounting periods when they actually occur, rather than in the periods when there are cash flows
associated with them.
6. GOING CONCERN PRINCIPLE is the concept that a business will remain in operation for the
foreseeable future.
7. ECONOMIC ENTITY PRINCIPLE is the concept that the transactions of a business should be kept
separate from those of its owners and other businesses.
8. MONETARY UNIT PRINCIPLE is the concept that a business should only record transactions that can
be stated in terms of a unit of currency.
9. FULL DISCLOSURE PRINCIPLE is the concept that you should include in or alongside the financial
statements of a business all of the information that may impact a reader's understanding of those
financial statements.
10. Double entry bookkeeping is used to satisfy the equation that Assets = LIABILITIES + EQUITY.
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3. Chart of Accounts
Exercise 3.1
1.CHART OF ACCOUNTS is a financial organizational tool that provides a complete listing of every
account in an accounting system.
2. An ACCOUNT is a unique record for each type of asset, liability, equity, revenue, and expense.
3. The BALANCE SHEET/ PERMANENT accounts reflect the monitory value of the company - stock,
assets, debt, etc. These accounts are carried over from one fiscal year to the next.
4. PROFIT AND LOSS/ INCOME STATEMENT/ TEMPORARY accounts has to be cleared at the end of
each fiscal year through Period End Closing process.
5. Chart of Accounts of SAP Business One can be viewed and managed through the FINANCIAL module.
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4. Subsidiary Ledgers
Exercise 4.1
What are the purpose of subsidiary ledgers?
A subsidiary ledger is a ledger designed for the storage of specific types of accounting transactions. Once
information has been recorded in a subsidiary ledger, it is periodically summarized and posted to an
account in the general ledger, which in turn is used to construct the financial statements of a company.
By having the details of the accounts receivable activity in a subsidiary ledger, a company can better
control its financial information. For example, the credit manager and others in the credit department of
a company will have access to all the credit sales information through the subsidiary ledger without
having access to any other account in the company’s general ledger.
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5. The Accounting Cycle

Journalizing
Exercise 5.1
1. JOURNAL is a record of financial transactions in order by date. It is often defined as the book of
original entry.
2. SALES JOURNAL is a special or specialized journal i s u s e d to record sales of merchandise to

customers.
3. CASH RECEIPTS JOUNRAL is a special journal used to record money received.
4. PURCHASE JOURNAL is a record of all acquisitions made on credit during a period
5. CASH DISEMBURSEMENT JOURNAL is a record kept by accountants to record all financial

expenditures made by a company.
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Exercise 5.2
Record the following transactions using the Manual Journal Entry:
On January 20, 2020, the company received billings for the following utilities:
Dr. Light Expense P 6,750
Dr. Water Expense P 4,400
Cr. Accrued Expense Payable P 11,150
On January 25, 2020, billings received were paid for cash.

Dr. Accrued Expense Payable P 11,150
Cr. Cash on Hand P 11,150
Insert the screenshot of your output here:
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Manual Journal Entry and Journal Vouchers

Exercise 5.3
On February 10, 20XX, the owner of the company had an additional cash investment of P 500,000,
deposited on the company’s BDO Bank Account.
Dr. Cash in Bank – BDO P 500,000
Cr. Aquino, Capital P 500,000
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Exercise 5.4
On March 15, 20XX, the owner withdrawn some of his cash investment to pay for his personal expenses
amounting to P 25,000. The Disbursement Officer withdrew the amount from the company’s BDO
account.
Dr. Aquino, Drawing P 25,000
Cr. Cash in Bank - BDO P 25,000
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Exercise 5.5
On March 30, 20XX, the company recorded a Salary Expense worth of P 100,000, paid for through the
company’s BDO Bank Account:
Dr. Salaries and Wages P 100,000
Cr. Cash in Bank, BDO P 100,000
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Exercise 5.6
Create the following entries in journal entry through the journal vouchers.
Date Transaction Amount

April 01, 20XX Sansa Aquino invested office equipment Php 850,000
for the business
April 02, 20XX The owner invested additional cash Php 72,000
through a bank deposit in Metrobank
April 03, 20XX Paid transportation for business related Php 1,750
travels
Submit the screenshot of the journal voucher created and the transaction journal report from April 01,
20XX – April 03, 20XX.
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Special Journals (Purchase)

Exercise 5.7
On April 10, 20XX, the company received the billing from PLDT worth Php 11,200 (tax inclusive). It is to
be recorded as Communication Expense on the A/P invoice.
Screenshot the journal entry created from the A/P invoice.
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Exercise 5.8
On April 11, 20XX, the company received the billing from Philhealth, worth P 3000, for the employees’
recent salary.
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Exercise 5.9
On April 13, 20XX, the company received the billing from SSS, worth P 5000, for the employees’ recent
salary.
Special Journals (Disbursements)

Exercise 5.10
On April 15, 20XX, the invoice from PLDT was paid for by cash (based on Exercise 5.6).
Screenshot the journal entry created from the outgoing payment.
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Exercise 5.11
On April 16, 20XX, the invoice from Philhealth was paid for by cash (based on Exercise 5.7).
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Exercise 5.12
On April 16, 20XX, the invoice from SSS was paid for by cash (based on Exercise 5.8).
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Special Journals (Sales)

Exercise 5.13
On May 2, 20XX, the company billed Mariah Carey for the services it rendered worth P 50,000 (tax
exclusive, tax will automatically be computed by the system). It is to be recorded as Sales and Service
Income in the A/R invoice.
Screenshot the journal entry created from the A/R invoice.
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Exercise 5.14
On May 5, 20XX, the company rendered service to a walk-in customer amounted to P 15,000 (tax not yet
included). The customer immediately paid cash.
Screenshot the journal entry created from the A/R invoice + Payment.
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Exercise 5.15
On May 9, 20XX, the company rendered service to Elvis Presley amounted to P 80,000 (tax not yet
included). It is to be recorded as Sales and Service Income in the A/R invoice.
Screenshot the journal entry created from the A/R invoice.
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Special Journals (Collection)

Exercise 5.16
On May 9, 20XX, Mariah Carey paid her invoice via Bank Transfer to the company’s Metrobank account
with reference number RQL0965YT.
Screenshot the journal entry created from the Incoming Payment.
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Exercise 5.17
On May 10, 20XX, Elvis Presley paid his invoice by cash.
Screenshot the journal entry created from the Incoming Payment.
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General Ledger
Exercise 5.18
Generate the General Ledger as of the date of the latest transaction.
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Adjusting Entries
Exercise 5.19
Assuming the company uses Asset Method in recording prepayments. Perform the adjusting entries
based on the transactions below:
On June 1, 20XX, the company paid in advance, 1 year worth of rent, for a total of P 120,000 (P 10,000
per month), from its Cash in Bank – BDO account.
Dr. Prepaid Rent P 120,000

Cr. Cash in Bank – BDO P 120,000
(Adjusting Entry) On December 31, 20XX, recognize the rent expense incurred.
Dr. Rent Expense P 70,000

Cr. Prepaid Rent P 70,000
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Exercise 5.20
Assuming the company uses Expense Method. Perform the adjusting entries based on the transactions
below:
On July 15, 20XX, the company bought Office Supplies worth Php 35,000.
Dr. Supplies Expense P 35,000

(Adjusting Entry) On December 31, 20XX, office supplies worth Php 15,000 were used and expensed.
Dr. Office Supplies P 20,000

Cr. Supplies Expense P 20,000
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Exercise 5.21
Perform the adjusting entries based on the transactions below:
On August 1, 20XX, the company bought Office Machinery worth Php 20,000.
Dr. Office Machinery P 20,000

(Adjusting Entry) On December 31, 20XX, Office Machinery was computed to have a depreciated by P
2,500.
Dr. Depreciation Expense – Machinery P 2,500

Cr. Accumulated Depreciation - Machinery P 2,500
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Unadjusted Trial Balance

Exercise 5.22
Generate the unadjusted Trial Balance as of the end of the year.
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Adjusted Trial Balance

Exercise 5.23
Generate the adjusted Trial Balance as of the end of the year.
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Financial Statements
Exercise 5.24
Generate the Balance Sheet as
of the end of the year.
Insert the screenshot of your

output here:
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Exercise 5.25
Generate the Income Statement for the year ended 20XX.
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Period End-Closing
Exercise 5.26
Perform Period End Closing for the year 20XX.
Screenshot the closing entries generated in the Transaction Journal Report.
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Fundamentals of Accounting Exercise Workbook: FABRO, Aienna Gabrielle A., BSA-BBA

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SAP B1 on Cloud – Fundamentals of Accounting

FundAcc Exercise Workbook (2) printed on 12/15/2021 9:02 AM

FundAcc Exercise Workbook (2) printed on 12/15/2021 9:02 AM

Exercise 5.13 ....................................................................................................................................... 20

FundAcc Exercise Workbook (2) printed on 12/15/2021 9:02 AM

FundAcc Exercise Workbook (2) printed on 12/15/2021 9:02 AM

2. Introduction to Fundamentals of Accounting

1. ACCOUNTING is a systematic process of identifying, recording, measuring, classifying, verifying,

FundAcc Exercise Workbook (2) printed on 12/15/2021 9:02 AM

FundAcc Exercise Workbook (2) printed on 12/15/2021 9:02 AM

FundAcc Exercise Workbook (2) printed on 12/15/2021 9:02 AM

5. The Accounting Cycle

2. SALES JOURNAL is a special or specialized journal i s u s e d to record sales of merchandise to

3. CASH RECEIPTS JOUNRAL is a special journal used to record money received.

4. PURCHASE JOURNAL is a record of all acquisitions made on credit during a period

5. CASH DISEMBURSEMENT JOURNAL is a record kept by accountants to record all financial

FundAcc Exercise Workbook (2) printed on 12/15/2021 9:02 AM

On January 25, 2020, billings received were paid for cash.

Insert the screenshot of your output here:

FundAcc Exercise Workbook (2) printed on 12/15/2021 9:02 AM

Manual Journal Entry and Journal Vouchers

Insert the screenshot of your output here:

FundAcc Exercise Workbook (2) printed on 12/15/2021 9:02 AM

Insert the screenshot of your output here:

FundAcc Exercise Workbook (2) printed on 12/15/2021 9:02 AM

Dr. Salaries and Wages P 100,000

Cr. Cash in Bank, BDO P 100,000

Insert the screenshot of your output here:

FundAcc Exercise Workbook (2) printed on 12/15/2021 9:02 AM

Date Transaction Amount

Insert the screenshot of your output here:

FundAcc Exercise Workbook (2) printed on 12/15/2021 9:02 AM

Special Journals (Purchase)

Screenshot the journal entry created from the A/P invoice.

Insert the screenshot of your output here:

FundAcc Exercise Workbook (2) printed on 12/15/2021 9:02 AM

Screenshot the journal entry created from the A/P invoice.

Insert the screenshot of your output here:

FundAcc Exercise Workbook (2) printed on 12/15/2021 9:02 AM

FundAcc Exercise Workbook (2) printed on 12/15/2021 9:02 AM

Screenshot the journal entry created from the A/P invoice.

Insert the screenshot of your output here:

Special Journals (Disbursements)

Screenshot the journal entry created from the outgoing payment.

Insert the screenshot of your output here:

FundAcc Exercise Workbook (2) printed on 12/15/2021 9:02 AM

Screenshot the journal entry created from the outgoing payment.

Insert the screenshot of your output here:

FundAcc Exercise Workbook (2) printed on 12/15/2021 9:02 AM

Screenshot the journal entry created from the outgoing payment.

FundAcc Exercise Workbook (2) printed on 12/15/2021 9:02 AM

Insert the screenshot of your output here:

FundAcc Exercise Workbook (2) printed on 12/15/2021 9:02 AM

Special Journals (Sales)

Screenshot the journal entry created from the A/R invoice.

Insert the screenshot of your output here:

FundAcc Exercise Workbook (2) printed on 12/15/2021 9:02 AM

Insert the screenshot of your output here:

FundAcc Exercise Workbook (2) printed on 12/15/2021 9:02 AM

Screenshot the journal entry created from the A/R invoice.

Insert the screenshot of your output here:

FundAcc Exercise Workbook (2) printed on 12/15/2021 9:02 AM

Special Journals (Collection)