| Part 0: Accounting Cycle | Ms. Dell said it herself. Ito'y paborito niyang tanong. |
|
Madali lang memoryahin yan word for word. Pero may mga patterns din. The first three are easy. Note that after the first three the process has something to do with either preparing something and doing something with the entries. Tignan din na ang preparing and entries ay hindi nagkakasama. So all u need 2 rem. is the pattern 1-1-2-2. isang preparing, isang entries, dalawang preparing and dalawang entries. That should make it easier to memorize, somewhat. |
| Part 1: Journalizing | First step in the acctg. cycle. You write the details of the transaction into the journal. |
| Journal | "The book of original entry". Lists the transactions as they happen, in chronological order. |
| Illustration of a journal |  (sori, excel ko lang ginawa yan. i think it's pretty accurate) |
| Things to remember | Place year under the date column Place month in the left portion of date column, and the day in the right portion Under the account, write the value received first, not indented Place the amount received under the debit column, aligned with the account received On the next line, write the value parted with, indent it Aligned with it, place the amount in the credit column Use one box per digit, rightmost box for centavo amounts, use a dash if there's no centavo amt. On the next line briefly explain the account, no need to indent Leave folio column blank For compound accounts, you can write all the debits first, followed by all the credits indented For the next date, if it happened in the same month there's no need to write the month again Skip a line before starting with the next account/transaction |
| Example | On August 1 of the current year Mr Gonzales invested 100000 pesos to put up a law firm. He gave his
office space worth P25000 to the business The next day he purchased office equipment worth P12000 on credit from S Alvarez On August 7 he billed Mr San Juan P1000 for legal services rendered to him The next day he settled the account with S Alvarez On August 13 he received full payment from Mr San Juan |
| Journal |  |
| Part 2: Posting | second step in accounting cycle. transfer journal entries into the ledger |
| Ledger | A group of accounts. also, the "book of final entry". where similar accounts are placed together in order to see the outstanding balances of each. |
| Illustration |  |
| Things to remember | Write only the valid accounts into the appropriate ledger. Only cash goes in cash ledger and so on
You may want to transfer all cash first before proceeding to next so u dont get confused. As with the date, no need to rewrite the month kung same month nangyari. Make brief explanations only. On the folio column of the ledger, place the journal page where u got the entry. On the folio column of the journal, place the account no. of the ledger it was transferred to. After posting, foot the columns. This is done by adding the total debits and placing the total under the debit column. Single-rule it. Then add the credits likewise. Then, get the balance by subtracting the smaller total from the larger. Place it under the column of the larger total. Double-rule the balance. |
| Posting and footing | We will post the journal exercise above. Since one page lang ung journal, lahat galing sa J-1.
 Likewise, the journal should be "updated" like so... 
|
| Part 3: Trial Balance | Trial balance is a list of accounts with open balances. It proves the equality of accounts in the ledger. |
| Preparing a trial balance | Write the heading. Dis consists of the Company Name, followed by the title "Trial Balance" on the
next line and then the date on the third line. Write the accounts in ALCIE form. This stands for Assets, Liabilities, Capital, Income, Expenses. Ang order na yan dapat ang masunod. Sa assets, you have to list them in order of liquidity - how easy they are to convert into cash. Una cympre ang cash account and then accounts receivable, etc. Then come the fixed assets like building, land, equipment, etc. The 3 others (LCI) walang binigay na order na dapat sundin. Pero you should devise your own way of sorting it para naman maayos ung pagkakagawa ng trial balance. Sa Expenses, you list them in descending order. Ung pinakamalaking expense should come first. This is to keep track of what you're spending the most on, at malaman paano mabawasan ang expenses. Accounts usually have a debit or a credit balance, depending on what they do. Debit - increase in assets, increase in expenses in drawings Credit - contra-assets, increase in liabilities, increase in income in investments Place the amount under the appropriate money column (DR or CR) Contra-assets are assets w/c have a credit balance. Examples ay depreciation in value of equipment pati bad debts. Ilagay ung contra-asset sa ilalim ng asset na kino-contra nito. Ang bad-debt ay kumo-contra sa accts. and notes receivable. Foot all the debits and all the credits and you should have the same value for both columns. Or else, may error sa trial balance. As always, double rule d totals List only the accounts with open balances. Kung zero na ang balance no need to list it down. |
| Trial Balance for above | Preparing the Trial Balance for the exercise we've been doing, it should look like this: alam kong ang exercise d2 sa reviewer ay kapus-kapos tlga. Pero andyan na naman ung main idea ehh. Sori nalang kung di ganun ka complex ung exercise. Basta't follow d directions tlga. |
| Sources of errors: PPOWW! | These stand for: Posting an item to the wrong side (credit na dinebit, vice versa); Posting an item
twice; Ommission of Posting; Wrong footings; and Wrong transfer from ledger to trial balance Additionally, mayroong tinatawag na error of transposition and misplacement. Ang transposition error nangyayari if napagbaliktad ang 2 digits.. for example 250 naging 520.. Ang misplacement ay kung nagkulang ka ng place value, usually with zeros. Example: 20000 naging 2000 lang. |
| Other things to remember | The journal and ledger ay mga pinaglagyan nung mga entries. Ang process ay journalizing at posting.
Ang journal original entry at ang ledger ay final entry. Folio column ay cross-reference column. It tells you what journal page to look for, and what ledger to look in. It also tells that posting is complete. |