CHAPTER 5: WORKSHEET AND FINANCIAL

STATEMENT
Basic Financial Accounting and Reporting (Discussion Notes)
BS Accountancy 1 - 1 | Prof. Isolde Rodil-Sustrina | Sem 1 2022

● Petty Cash Voucher - small

expenses of the company (e.g.
SOURCE DOCUMENTS transportation expense of an
● Official Receipt - this proves that the employee, gas expense of vehicle of
seller received payment from the an employee). This is usually issued
buyer. by the Petty Cash Voucher Custodian.
The phrase “Received from (name ➢Liquidate - if the issued PC is not
of the buyer)” in the general ledger entirely consumed, the PCVC
of cash is now required according to needs to properly state the
the Bureau of Internal Revenue. amount they spent from the PC.
2 Parties of Transaction ➢Replenishment - this is
1. Seller - provide goods/service requested by PCVC when the PC
2. Buyer - purchase goods/service is nearly exhausted.
● Cash Register Tapes - a form of
receipt usually issued by big Important!
merchandise stores (e.g. mercury
drug store)
➔Authority to Print Receipt - is
● Promissory Note - issued when the
usually issued by BIR which
balance is not paid.
accredits an entity’s printer (used in
2 Parties of Transaction
printing source documents), the
1. Lender - lends money
number of official receipt booklets an
2. Borrower - borrows money
entity should possess, etc.
● Check/Cheque - orders the bank to
transfer the money to the bank
account payee.
2 Types of Bank Account GENERAL JOURNAL
1. Checking Account - bank
issues check booklet; business General Journal Page No. 1
entities usually have this.
2. Savings Account - bank does
not issue check booklet; Date Acct. Title & Exp. F Debit Credit
personal
● Check Voucher - this should be
approved first by the owner before the
issuance of the actual check. - Before journalizing, one must have
● Sales Invoice - indicates the item, the source documents for evidence
rand, quantity, and total amount of the purposes.
purchased goods. - F = Folio / PR = Post Reference
● Statement of Account - in layman's - In journalizing, we recognize
term bill. Includes utility bills, credit transactions.
card bills. 3 Test of Transaction - before we record
● Payroll - basis of total payroll of the a transaction in a general journal, these
company; name of the employee and three (3) must be present first.
position in the company; monthly rate 1. Exchange of values
w/ deductions (tax & contributions)that 2. Between 2 parties
equates to the net pay. 3. Express in terms of money

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CHAPTER 5: WORKSHEET AND FINANCIAL
STATEMENT
Basic Financial Accounting and Reporting (Discussion Notes)
BS Accountancy 1 - 1 | Prof. Isolde Rodil-Sustrina | Sem 1 2022

3. Statement of Financial Position - real

GENERAL LEDGER accounts
Cash Acct. No. 101 4. Cash Flow Statement - usage of cash
D Part F Debit D Part F Credit
Rules on Adjusting Entries
Dr. + Dr. Dr. - Cr.
Cr. + Cr. Cr. - Dr.
2-column General Ledger
Cash Acct. No. 101
Important!
Dt Particular F Debit Credit Balance
➔SFP - date header: specific date
(October 31, 2022)
3-column General Ledger ➔SCI, CFS, SCE - date header:
coverage period (for the month
● 2-Column - you will not know the ended, for the year ended)
balance; you need to do pencil-footing
first to know the balance.
● 3-Column - you will not know if the
balance is debit or credit unless you
know the normal balance of the account.

Cross Referencing - fill up the folio on the

general journal after posting on the general
ledger to indicate that the transaction has
already been posted on the ledger.

TRIAL BALANCE
- If in General Ledger the balance of
a specific account is zero (0) then
you do not need to put it on the trial
balance itself as it will not affect the
totality of the debits and credits.

WORKSHEET
- an aid used by the accountants;
working paper only and is not
required to be passed on BIR.

Chronology of Preparing Financial

Statements
1. Income Statement - records nominal
accounts
2. Capital Statement - equity