“Educating People at

Affordable Tuition is Our Way

of Life”
 “Educating People at
Affordable Tuition is Our Way
of Life”
 A journal is a chronological record of all the
company’s transactions listed by date. It is often
referred to as the book of original entry. This is
because we first record the business transaction in
this book. The recording of financial information
into the journal is known as the process of
journalizing.
Topic: Accounting Books – Journal and Ledger Teacher: Sir Arjay Costelo Angcaya
 THERE ARE TWO TYPES OF
JOURNALS:

• GENERAL JOURNALS
• SPECIAL JOURNALS
Topic: Accounting Books – Journal and Ledger Teacher: Sir Arjay Costelo Angcaya
 A general journal is a book of raw business
transactions recorded in chronological order by
date. It is the first place a transaction is
recorded. The amounts are then posted to the
appropriate accounts such as accounts
receivables, cash accounts or asset accounts.

Topic: Accounting Books – Journal and Ledger Teacher: Sir Arjay Costelo Angcaya
 A special journal is prepared to record
transactions of the same nature together. It is done as
it makes it easy for an accountant to track
transactions of the same nature. It saves time for
accountants to find transactions and balances of such
journals are directly transferred to the general
ledger.
Topic: Accounting Books – Journal and Ledger Teacher: Sir Arjay Costelo Angcaya
THERE ARE FOUR COMMON TYPES OF SPECIAL
JOURNAL:

• SALES JOURNAL
• PURCHASES JOURNAL
• CASH RECEIPTS JOURNAL
• CASH DISBURSEMENT JOURNAL
Topic: Accounting Books – Journal and Ledger Teacher: Sir Arjay Costelo Angcaya
 The sales journal also known as Sales Day Book,
is used to record all of the company sales on credit.
Most often these sales are made up of inventory sales
or other merchandise sales. Notice that only credit
sales of inventory and merchandise items are
recorded in the sales journal. Cash sales of inventory
are recorded in the cash receipts journal.
Topic: Accounting Books – Journal and Ledger Teacher: Sir Arjay Costelo Angcaya
 According to fundamental accounting
principles, the definition of a purchases
journal is a special journal normally used by a
business to record all purchases on credit. The
ones that are done on account will impact
accounts payable.
Topic: Accounting Books – Journal and Ledger Teacher: Sir Arjay Costelo Angcaya
 A cash receipts journal is used to record all cash
receipts of the business. All cash received by a
business should be reported in the accounting
records. In a cash receipts journal, a debit is posted
to cash in the amount of money received. An
additional posting must be made to balancing the
transaction.
Topic: Accounting Books – Journal and Ledger Teacher: Sir Arjay Costelo Angcaya
 The Cash Disbursement Journal (CDJ), or sometimes
known as the Cash Payment Journal (CPJ), is a journal used to
record payments of cash for whatever purpose. All business
transactions which include a credit or debit to Cash are
recorded in this journal. These include the purchase of items
on cash basis, purchase of items with down payment, payment
of account with supplier, payment of expenses, and cash
withdrawal made by the owner.

Topic: Accounting Books – Journal and Ledger Teacher: Sir Arjay Costelo Angcaya
 The ledger is the grouping of all accounts a company
showing its respective outstanding balances. It is also
called the book of final entry of accounting transactions.
It presents the changes in specific account balances like
cash, accounts receivable, accounts payable, etc. All
account balances presented in the financial reports of the
company are derived from the ledger.

Topic: Accounting Books – Journal and Ledger Teacher: Sir Arjay Costelo Angcaya
The two kinds of Ledgers are:

• General Ledger
• Subsidiary Ledger
Topic: Accounting Books – Journal and Ledger Teacher: Sir Arjay Costelo Angcaya
 A general ledger is used to record a
company's ongoing transactions. Within
a general ledger, transactional data is
organized into assets, liabilities,
revenues, expenses, and owner's equity.
Topic: Accounting Books – Journal and Ledger Teacher: Sir Arjay Costelo Angcaya
 A general ledger is often called a
“T-Account” because of its resemblance
to the letter T. A T-Account is a
simplified form of General Ledger.

Topic: Accounting Books – Journal and Ledger Teacher: Sir Arjay Costelo Angcaya
 A T-Account for each of the account titles listed on the
said chart is prepared to determine the balance at the end
of the period of each account.

Topic: Accounting Books – Journal and Ledger Teacher: Sir Arjay Costelo Angcaya
 Shown on the next slide is the
Chart of Accounts discussed in
the previous lessons. (Types of
Major Accounts)
Topic: Accounting Books – Journal and Ledger Teacher: Sir Arjay Costelo Angcaya
Topic: Accounting Books – Journal and Ledger Teacher: Sir Arjay Costelo Angcaya
1) Review our topic for today.
2) Don’t forget to answer and
submit your Activities on time.
 “Educating People at
Affordable Tuition is Our Way
of Life”