BOOKKEEPING

 the chronological recording of business transactions of

an individual.

 Bookkeeper – the person who records the financial

operation of a business in a systematic manner.

 Accountant – the one who plans, summarizes and

analyses bookkeeping records
To begin a bookkeeping system for business, the
owner must find:

 what the business owns

 what the business owes

 what the business is worth

 Complete Bookkeeping Record
1. Source documents - where the transactions are
recorded
2. Journal – where the source documents are used, for
recording the business transaction order in which
they occur.
3. Ledger – (book)where the entries in the journal are
summarized.
4. Income statement/balance sheet- financial
statements are prepared periodically from the
worksheet to show (1) what the business is worth and
how well the business is doing.
BALANCE SHEET
 List of assets and claims against these assets – the
liabilities and networth – for a certain date.
Cardo’s Car Repair Shop
BALANCE SHEET
December 31, 2019
ASSETS LIABILITIES
Cash P 20,000 Bank Loan P 50,000
Tools and Equipment 50,000 Proprietorship
Office equipment 40,000 Cardo’s Capital P 60, 000
Total Assets P 110,000 Total Liabilities
And Proprietorship P 110,000
 Heading of a Balance Sheet
The heading of a balance sheet contains three items:
1. The name of the business for which the balance
sheet is prepared.

2. The name of the form

3. The date of the form

 Body of a Balance Sheet
The heading of a balance sheet has three sections that
show:
1. What is owned

2. What is owed

3. What the business is worth

Some business term is used to described each of
the three sections of a balance as follows:
 Assets – anything of value that is owned by an
individual or a business. It can be personal asset or a
business. Assets are listed on the left corner of the
balance sheet.
BALANCE SHEET

1. Assets 2. Liabilities and

3. Proprietorship
Some business term is used to described each of
the three sections of a balance as follows:
 Liabilities – these are debts owed by an individual or a
business. Those who lend the money are called
creditors and the money owned them are liabilities.
 Proprietorship –The amount that belongs to the
owner after subtracting all his or her liabilities. The
owner of the business is called the proprietor.
BALANCE SHEET
1. Assets 2. Liabilities and
3. Proprietorship
Example
Total assets on the balance sheet of the:

Cardo’s Car Repair Shop P 100, 000

Less: Total Liabilities on the
balance sheet of the Cardo’s P 50, 000
Car Repair Shop
Equals the amount of the
owners’ proprietorship P 60, 000