Journal Entry

BOOKKEEPING
Prepared by:
Jaime C. Baylon, MBA
 Journal Entry
• Chart of Accounts –is a systematic listing of all accounts
used by an entity.

• Journal – is a book where all transactions are initially

recorded.

• Journal entry –is the logging of business transaction and

their monetary value into the T-accounts of the accounting
journal as either debit or credit.

• Journalize transaction – is the process of recording a

business transaction in a journal.
 DEBIT ACCOUNTS
• Debit (dr) - means the value received. It also
means an entry to the left hand side of the
account. Assets are initially recorded on the debit
side of the equation. To debit an asset is to
increase an asset. To credit an asset is to
decrease it.
• Entry on the left side of Double Entry
Bookkeeping system that represents the addition
of an Asset or Expense or the reduction to a
Liability or Revenue.
 Debit Accounts
ASSETS Capital
Cash in bank Owner’s withdrawal
Cash on hand Expense
Petty cash Salary expense
Accounts receivable Rent expense
Allowance for bad debts Utilities expense
Notes receivable Advertising expense
Interest receivable Taxes & licenses
Merchandise inventory Supplies expense
Supplies Interest expense
Prepaid rent Depreciation expense
Prepaid insurance Miscellaneous expense
Land Freight out
building
 Debit Accounts
Revenues-Merchandising
Sales return & allowance
Sales discount
Purchases
Freight in
 CREDIT ACCOUNTS
• Credit (cr) - means the value parted with.
Liabilities and capital are initially recorded on the
credit side. To credit a liability and /or capital is to
increase them. To debit liability and/or capital
means to decrease them.
• An entry to the right side of an account. Entry on
the right side of a Double- Entry Bookkeeping
system that represents the reduction of Assets or
Expense or to the addition to a Liability or
Revenues.
 Credit Account
Accumulated depreciation Liabilities
Liabilities Philhealth payable
Accounts payable HDMF contribution payable
Notes payable Insurance payable
Accrued salary payable Unearned service income
Accrued rent payable
Bank loan payables Equity/Capital
Income tax payable Owner’s capital
Withholding tax payable
SSS contribution payable
 Credit Accounts
Revenues- Servicing Revenue- Merchandising
Service Income Sales
Interest income Purchase return &
Rent Income Allowance
Dividend Income Purchase discount
Miscellaneous income
JOURNAL ENTRY
JOURNAL ENTRY
JOURNAL ENTRY
JOURNAL ENTRY
JOURNAL ENTRY
JOURNAL ENTRY
ADJUSTING ENTRY
ADJUSTING ENTRY
ADJUSTING ENTRY
ADJUSTING ENTRY
ADJUSTING ENTRY
ADJUSTING ENTRY
ADJUSTING ENTRY
ADJUSTING ENTRY