Technology and

Livelihood
Education 10
Welcome
Grade 10
House Rules
• Be on time and presentable.
• Camera ON, Mic OFF.
• Stay focused.
• Queries will be entertained before the end of the session.
• Click the raised hand icon if there are queries.
• Unmute your microphone only when acknowledge or ask
to do so.
• Submit your outputs on time. Late are not entertained.
 Quarter 2
Module 1

Books of Accounts
Lesson Objectives:
At the end of this lesson, the learners will be able to…

1.Differentiate journals and ledger; 

2.Appreciate each kind and be able to establish its purpose;
and
3.Showcase deeper understanding on the major types of
books of accounts.
Books of Accounts
Book of account is the place where all financial
information for a person or business is collected.

Two types of books of accounts

1. Journal
2. Ledger
Books of Accounts
1. Journal
1.1. General journal is referred to as the book of original entry.
It is used in recording business transactions in order of date
using the principle of “debit and credit”.  Business companies
with a large number of repeated transactions often used
Special Journals.  
Books of Accounts
Parts of General Journal
a.  Date Column – the date at which the transaction occurred.
b.  Particulars Column – the accounts affected by transactions that happened.
c.  Post Reference (PR) Column – used to enter the account number of subsidiary or
general ledger account to which the entry belongs.
d.  Debit Column – shows the amount to be added to assets or expense accounts, and
deducted in liability, capital and revenue accounts.
e.  Credit Column – shows the decrease in assets or expense accounts, and increase in
liability, capital and revenue accounts.
Books of Accounts
1.2. Special journal is any accounting journal in the general
journal that is used to record and post transactions of similar
types. In other words, it’s a place where similar transactions
can be recorded and organized, so bookkeepers and
accountants can keep track of different business activities. 
Books of Accounts
Special Journal
1.1.  Cash Receipt Journal
Cash receipt journal is a special journal used to record
cash sales and/or collection of receivables.
1.2.  Cash Disbursement Journal
Cash disbursement journal is a special journal used to
record cash payments of expenses and/or payables.
Books of Accounts
Special Journal
1.3.  Sales Journal
Sales journal is a special journal used to record sales on
credit or receivable from customers.
1.4.  Purchase Journal
Purchase journal is a special journal used to record
purchases on credit or payable to suppliers.
Books of Accounts
2.  General Ledger
General ledger is referred to as the book of final entry.  It is used in
summarizing all the journal entries of an account to get the ending
balances. A subsidiary ledger stores the details for a general
ledger control account. Once information has been recorded in a
subsidiary ledger, it is periodically summarized and posted to a
control account in the general ledger, which in turn is used to
construct the financial statements of a company.  Examples of
accounts with subsidiary ledgers are:  accounts payable, accounts
receivable, fixed assets, inventory and purchases.