RECORDING

BUSINESS
TRANSACTIONS
BY: PAVI ANTONI D. VILLACERAN, MBA, JD (c)
OPENIN
G
PRAYER
 What did we
LET'S REVIEW!!
discuss so far?
CLASSIFYIN
G
ACCOUNTS
NORMAL
BALANCE
ACCOUNTIN
G EQUATION
LEARNING
OBJECTIVES
• AT THE END OF THE DISCUSSION, STUDENTS WILL BE ABLE TO
•understand the double entry system of
recording transaction
•determine the accounting cycle
•state and apply the rules of debit and credit
•Journalize transaction in the general journal
 DOUBLE ENTRY
SYSTEM
every transaction has dual effect, it affects atleast two transaction;for
every debit, there is a corresponding credit
 OWNER
FOR PURCHSED
EXAMPLE
FURNITURE FOR
CASH
FOR EXAMPLE
PAID MITSHUBISHI
IN FULL
VERY GOOD!
LET'S GIVE IT A TRY!!
PAID EMPLOYEE'S
SALARY
DR. Salaries Expense
Cr. Cash
PAID CREDITOR ON
ACCOUNT
Dr. Accounts Payable
Cr. Cash
PAID UTILITIES FOR
THE MONTH
Dr. Utilities Expense
Cr. Cash
 PAID SUPPLIES
BOUGHT ON CREDIT
Dr. Supplies
Cr. Accounts Payable
PAID MONTHLY
RENT
Dr. Rent Expense
Cr. Cash
 1. Identifying and Analyzing the events to be
recorded
2. Recording Transactions in the Journal

ACCOUNTIN
3. Posting Journal Entries to the Ledger
4. Preparing the Trial Balance
5. Preparing the worksheet and Adjusting Entries

G CYCLE
6. Preparing the Financial Statements
7. Journalizing and Posting of Adjusting Journal
Entries
8. Journalizing and Posting of Closing Journal Entries
9. Preparing the Post Closing Trial Balance
10. Journalizing and Posting of Reversing Journal
Entries
JOURNALIZING
ENTRIES
JOURNALIZIN
G ENTRIES
 Presume that Gisel Ong
established Anme World
Gallery with an initial
Investment of P 300,000.00
on May 2, 2016