OUTPUT NO.

5 – BOOKS OF ACCOUNTS

HPS - 43 Points

Sophia F. Magdaraog February 12, 2021

ABM 11 – St. Scholastica

Activity 1 (3 points each)

Prepare examples of the following:

1. General journal

https://www.double-entry-bookkeeping.com/bookkeeping-basics/general-journal/

2. General ledger

https://www.double-entry-bookkeeping.com/bookkeeping-basics/general-ledger-accounting/
3. Sales journal

https://www.double-entry-bookkeeping.com/bookkeeping-basics/sales-journal/

4. Purchase journal

https://www.double-entry-bookkeeping.com/bookkeeping-basics/purchases-journal/

5. Cash receipts journal

https://www.double-entry-bookkeeping.com/bookkeeping-basics/cash-receipts-journal/
6. Cash disbursement journal
https://www.double-entry-bookkeeping.com/bookkeeping-basics/cash-disbursement-journal/

Remember
Fill in the blanks.

1. The General Journal consists of raw accounting entries that record business transactions, in sequential order
by date.
2. The General Journal is referred to as the book of original entry. It records business transaction in order of
date using the principle of “debit and credit”.
3. The General Ledger is more formalized and tracks five key accounting items: assets, liabilities, owner’s
capital, revenues, and expenses.
4. The Sales Journal is for recording credit sales. For example, customers (debtors) who bought on credit or
account.
5. The Purchase Journal is for recording credit purchases by your business. Examples are supplies and
equipment.
6. The Cash Receipt Journal is for recording all cash inflows / receipts, such as cash for services rendered.
7. The Cash Disbursement Journal is for recording all cash outflows / payments.
8. A Subsidiary Ledger is a detailed list to support a control account.
9. A Control Account is a summary or total of all the subsidiary accounts related to it.
10. All business establishments are required to keep a record of their day-to-day business transactions in order to
know the result of their operations. They are the Books of Original Entry and the Books of Final Entry. The
said record is referred to as Book of Accounts.

Check Your Understanding

Indicate the journal where to record the following transactions assuming that special journals are in used.

1. Your company paid rent of ₱10,000 for the month with check number 1245. Which journal would the
company use to record this? Cash Disbursement Journal
2. On January 1, Incredible Infants sold goods to Babies Inc. for ₱15,400, terms 30 days, and received payment
on January 18. Which journal would the company use to record this transaction on the 18th? Cash Receipts
Journal
3. Sold goods for ₱6,500 cash. Which journal would the company use to record this transaction? Cash Receipts
Journal
4. Zandre & Co. purchased inventory on credit from Acto Supply Co. for ₱14,000. Zandre & Co. would record this
transaction in the Purchase Journal
5. Sold inventory for cash Cash Receipts Journal
6. Sold inventory on account Sales Journal
7. Received cash a week after selling items on credit Cash Receipts Journal
8. Paid cash to purchase inventory Cash Disbursement Journal
9. Bought equipment for cash Cash Disbursement Journal
10. Recorded an adjusting entry for supplies General Ledger
11. Purchase of inventory on account. Purchase Journal
12. Paid for a purchase of inventory on account after the discount period has passed Cash Disbursement Journal
13. Paid utility bill Cash Disbursement Journal
14. Received but did not pay phone bill General Ledger
15. Approve loan from a bank Cash Receipts Journal