IMPORTANCE OF

BOOKKEEPING

Bookkeeping is the important task of

keeping records of financial transactions
and it is the essential part
of accounting in all the business
operations. It is such
an important activity that decides your
business strength.
Bookkeeping is responsible for the
recording of financial transactions. ...

The biggest difference between

accounting and bookkeeping
is that accounting involves
interpreting and analyzing data
and bookkeeping does not.
Objective
The objective of bookkeeping is to
keep the records of all financial
transactions proper and systematic.

The objective of accounting is to

gauge the financial situation and further
communicate the information to the
relevant authorities.
1) Analyzing financial transactions and
assigning them to specific accounts;
2) Writing original journal entries that
credit and debit the appropriate
accounts; (JOURNALIZING)
3) Posting entries to ledger accounts; and
4) Adjusting entries at the end of each
accounting period.
 Mr. Lee opened a law firm last January, 2019, the following are the
transactions:

Jan. 5 – Mr. Lee invested cash worth 100,000 for the law firm.
8 – Mr. Lee purchased computers and other equipment for the office 35,000
12 – Paid for the rental in advance for 3 months 7,500.
15 – Purchased furniture for the office on account 10,250.
- Paid salaries for the associates and staff 20,000
18 – Mr. Fajardo joined Mr. Lee in his office and invested 100,000.
20 – Billed Marco Polo for the lawyer’s fee for the month 25,000
- A client paid Mr. Lee for his services P40,000.
22 – Paid for the electricity bill for the month P1,250.00
30 – Paid for the furniture purchased (Jan. 15)

Requirement: Using the journal sheet, journalize the following transactions..