COMPETENCY BASED LEARNING MATERIAL-Journalize-Trans.-enhanced

COMPETENCY BASED LEARNING MATERIAL
Sector: HEALTH, SOCIAL AND OTHER COMMUNITY DEVELOPMENT SERVICES
Qualification: BOOKKEEPING NC III
Unit of Competency: JOURNALIZE TRANSACTIONS
Module Title:Journalizing Transactions
Institution:
PUERTO PRINCESA SCHOOL OF ARTS AND TRADES (PPSAT)
Date Developed: Document No.

Bookkeeping NC III Revision No. 2
July 17, 2015
Journalize Prepared by:
Issued
TESDA - Transactions by: Page 1 of 48
PPSAT MARINA C PERIA
HOW TO USE THIS
COMPETENCY- BASED LEARNING MATERIAL (CBLM)
Welcome to the competency-based learning material for the module:
Journalizing Transactions. This module contains training materials and
activities for you to accomplish.
The unit of competency, "Journalize Transactions", contains the
knowledge, skills and attitudes required for a TVET trainer to possess.
You are required to go through a series of learning activities in order
to complete each learning outcomes of the module. In each learning
outcome, there are instructional sheets (Information Sheets, Self-Checks,
Operation Sheets and Task/Job Sheets) for further reading to help you
better understands the required activities. Follow the activities at your own
pace and answer the self-check at the end of each learning outcome. If you
have questions, please feel free to ask for assistance of your
trainer/facilitator.
This module was prepared to help you achieve the required competency:
JournalizeTransactions. This willbe the source of information for you to
acquire the knowledge and skills in this particular module with minimum
supervision or help from your trainer. With the aid of this material, you
will acquire the competency independently and at your own
pace.Remember to:
Work through all the information and complete the activities in each
section. Do what is asked in the INSTRUCTIONAL SHEET (TASK SHEET,
JOB SHEET) and complete the SELF-CHECK. Suggested referencesare
included to supplement the materials provided in this module.
Most probably, your trainer will also be your supervisor or manager.
He is there to support you and show you the correct way to do things. Ask
for help.
You will be given plenty of opportunities to ask questions and
practice on the job. Make sure you practice your new skills during regular
work shifts. This way, you will improve your speed, memory and your
confidence.
Use the Self-Check questions at the end of each section to test your
own progress.
When you feel confident that you have had sufficient practice, ask
your Trainer to evaluate you. The result of your assessment/evaluation will
be recorded in ACHIEVEMENT CHART AND PROGRESS CHART. You
need to be competent in this module before you can move to the next
competency. A CERTIFICATE OF ACHIEVEMENT will be awarded to you
after passing the Institutional Competency Evaluation.

July 17, 2015
Issued
BOOKKEEPING NC III
List of Core Competencies
No. Unit of Competency Module Title Code
1 Journalize Transactions J Journalizing Transactions HCS412301
2 Post Transactions Posting Transactions HCS412302
3 Prepare Trial Balance Preparing Trial Balance HCS412303
4 Prepare Financial Reports Preparing Financial Reports HCS412304
5 Review Internal Control Reviewing Internal Control HCS412305
System System

July 17, 2015
Issued
MODULE CONTENT
QUALIFICATION : BOOKKEEPING NC III
UNIT OF COMPETENCY : JOURNALIZE TRANSACTIONS
MODULE TITLE : JOURNALIZING TRANSACTIONS
MODULE DESCRIPTOR : This unit covers the knowledge, skills and

attitudes in logging/recording business
transactions in an accounting journal.
NOMINAL DURATION : 48 HOURS
LEARNING OUTCOMES:
At the end of this module, you must be able to:

LO1. Prepare Chart of Accounts
LO2. Analyze documents
LO3. Prepare Journal Entry
ASSESSMENT CRITERIA:
 Nature of business is determined based on client information.
 List of asset, liability, equity, income, and expense account
titles are prepared in accordance with industry practices.
 Accounting manual is prepared in accordance with industry
practice.
 Documents gathered, checked and verified in accordance with
verification and validation processes.
 Account titles are selected in accordance with standard
selection processes.
July 17, 2015
Issued
 Journals are prepared in accordance with industry practice
and generally accepted accounting principles/Philippine
Financial Reporting Standards for transactions and events.
 Debit account titles are determined in accordance with chart
of accounts
 Credit account titles are determined in accordance with chart
of accounts.
 Explanation to journal entry is prepared in accordance with
the nature of transaction.
 Journal entries are prepared with 100% accuracy.
COMPETENCY SUMMARY

July 17, 2015
Issued
Qualification Bookkeeping NC III
Unit of Competency Journalize Transactions
Module Title Journalizing Transactions
Introduction:
Journal - known as the "book of original entry,” is an

accounting record in which the economic transactions and events are
initially recorded. It provides a chronological record of transactions with
explanations and clear references.
The accounting record written in the journal is called Journal

Entry. It maybe classified as a simple journal entry (One debit and
one credit) or a Compound journal entry (More than one debit or more
than one credit or both).
Learning Outcomes
At the end of this module, you must be able to:
LO1. Prepare chart of accounts
LO2. Analyze documents
LO3. Prepare journal entry
ASSESSMENT CRITERIA:
1. Nature of business is determined based on client information.
2. List of Asset, liability, equity, income & expense account titles are
prepared in accordance with industry procedure.
3. Accounting manual is prepared in accordance with industry
practice.
LEARNING OUTCOME SUMMARY
Learning Outcome  1 PREPARE CHART OF ACCOUNTS

July 17, 2015
Issued
Contents:
 Definition and functions of bookkeeping & accounting
 Types of business organizations
 Types of business activities
 Basic Accounting equation
 Chart of accounts
Assessment Criteria:
 List of asset, liability, equity, income and expense account

titles are prepared in accordance with Generally Accepted
Accounting Principles
 Chart of Accounts is coded according to industry practice.
Condition:
The trainees must be provided with the following:
Tools, supplies and materials:
 Pencil
 Pencil Eraser
 Ruler
 Learning materials
 Journal
 Stapler
 Calculator
 Pencil Sharpener
ASSESSMENT METHOD:
 Written test
 Practical/performance test
LEARNING EXPERIENCES

July 17, 2015
Issued
Learning Outcome # 1
PREPARE CHART OF ACCOUNTS
Learning Activities Special Instructions
1. ReadInformation Sheet 1.1-1

Preparing Chart of Accounts
. Compare answers with the
2. Answer Self-Check 1.1-1 answer key, 1.1-1
You are required to get all answers
correct. If not, read the
information sheets again to
answer all questions correctly.
3. Perform Job Sheet 1.1-1 Evaluate your own work using

the Performance Criteria
Present your work to your

trainer for evaluation and
recording.
INFORMATION SHEET 1.1-1

July 17, 2015
Issued
PREPARE CHART OF ACCOUNTS
LEARNING OBJECTIVES:
 To explain the meaning of chart of accounts, its composition and
relevance in journalizing business activities.
 To familiarize various account titles used in accounting.
What is Chart of Accounts?
Chart of accounts is a listing of all the accounts in the general

ledger, each account accompanied by a reference number. To set up a
chart of accounts, one first needs to define the various accounts to be
used by thebusiness. It is also considered as group of account titles.
Each account should have a number to identify it. For very small
businesses, two to three digits may suffice for the account number.Chart
of Accounts is arranged according to five basic elements of accounting.
That is Asset, Liability, Capital, Revenue and Expense.
Bookkeeping, Accounting & Auditing

Bookkeeping is the initial activity or clerical part
of accounting. It is the “how of accounting”. It enables the
owner of the business to check on his financial progress.
It is the recording of business transactions to its
respective journals and ledgers in a prescribed manner.
Accounting is broader in scope. It is the art of recording,

classifying, summarizing in a significant manner and in terms of money,
transactions and events which are, in part at least, of a financial
character, and interpreting the results thereof. It is the developed form of
bookkeeping. It usuallyanswer the question “Why.”
Auditing performed after the accounting work ends. It is the

criticalpart of accounting. It confirms the credibility of financial
statements and protects the confidence of financial users. It verifies the

July 17, 2015
Issued
truthfulness and compliance of financial reports with the generally
accepted accounting principles. Auditing usually answers the question
“how true”.
Basic Elements of Accounting
 ASSETS - are resources or things of value owned by an enterprise.

“What the business owned”. It maybe tangible or intangible
assets. It has a normal debit balance except for contra-account
(credit balance) such as Allowance for bad debts and Accumulated
depreciation. Assets are composed of Current, Non-Current and
Other Assets.
 LIABILITIES – are present obligations to pay cash or cash

equivalents by an entity. “What the business owed”. It has a
normal credit balance. (Current and Non-current liability)
 CAPITAL/OWNER’S EQUITY – the residual amount after deducting

liabilities from assets. It has a normal credit balance.
 REVENUE – represents the earnings of the business from sales of

goods, or services rendered. It has a normal credit balance.
 EXPENSES– are costs incurred in conducting business activities It

has a debit balance.
ASSETS
CURRENT ASSETS
.Cash – any item on hand with monetary value
that a bank will accept for deposit and all
amount currently on deposit with the bank in
the name of the business.
. Accounts Receivable – Amount collectible on open accounts of the

customers.Debtors oral promise to pay certain amount to the
business and the right of the business to collect certain amount in
peso.

July 17, 2015
Issued
. Allowance for Doubtful Accounts - amount estimated uncollectible
on receivable in compliance with the principle of conservatism
(contra valuation account of accounts Receivable).
. Notes Receivable – a promissory note received by the business from

its debtors and/or Customers.
. Accrued Interest Receivable – the interest earned on note receivable

but not yet received in cash.
. Inventories – assets held for sale in the normal operation of the

business, in the process of production for sale, or supplies and
materials on hand.
. Prepaid Insurance – Insurance already paid but still unused for the
current period.
. Prepaid Rent – rent already paid but still unused for the current
period.
NON-CURRENT ASSETS
. Land – the site owned by the business on which building is

constructed.
. Building – the structure owned by the business used in the operation

of the business.
. Furniture and Fixtures – items used by the business include store

furnishings such as display racks, showcases, containers, desks,
chairs, tables, cabinets.
. Equipment – machinery used in a business like computers,

machineries used in packaging, sorting, delivery, firefighting
equipment,etc.
. Vehicles - transportation used in transporting commodities, people

and services.
. Accumulated Depreciation – periodic costs of using a depreciable

plant and equipment (Contra valuation account of property, plant
&equipment).
. Other Property, Plant & Equipment–are fixed assets not included

above.
July 17, 2015
Issued
INTANGIBLE ASSETS
. Patent – assets that protect new inventions and covers how things
work, what they do, how they do it, what and how they are made.
. Copyright - the legal right to be the only one to reproduce, publish,

and sell a book, musical recordings, videos, etc. for a certain period
of time.
. Goodwill - intangible asset that arises as a result of the acquisition

of one company by another for a premium value. The value of a
company’s brand name, good customers relations, good employee
relations or proprietary technology.
LIABILITIES
. Accounts Payable – an obligation or debt to creditors for money

borrowed or merchandise and or assets bought on credit.
. Notes Payable - a promissory note issued by the business to its

creditors for money borrowed or merchandise bought on credit.
. Unearned Revenue – a pre-payment received in advance for goods or

services to be rendered.
. Withholding Tax Payable – amount of income tax withheld from the

salary of employees in behalf of BIR that the employer has to remit
to BIR on the specified due date.
CAPITAL/OWNER’S EQUITY
Owner’s Equity – It comprises the capital contribution and

withdrawals of the owner.
. Drawing – is a temporary account used to record initially the amount

taken by the owner from the business.
REVENUE/INCOME

July 17, 2015
Issued
. Revenue – represents the earnings of the business from sales of goods
or services rendered.
. Sales – an account used to summarize sale of goods of a trade or a

merchandising business.
. Sales Returns and Allowances – amount incurred for the defective

goods returned by customers from sale.
. Sales Discounts- reduction in the price of a product

or service that is offered by the seller, in exchange
for cash or early payment by the buyer.
. Service Income – the earnings derived from service rendered by a

servicing business to its customers.
. Professional fees – the earnings derived from

services rendered by a professional.
. Interest Income - earnings representing the time

value of money derived from a promissory notes received by the
business.
. Gain on Sale of Other Assets – the income derived from the sales of
assets used in the business operation.
. Miscellaneous Income – other income not specified above.
COST OF SALES– the value of merchandise sold.
. Purchases- is the process of acquiring or buying of goods or services

which maybe in cash or credit basis.
. Purchase Returns and allowances - amount

incurred for the return of defective goods
received from purchases..
. Freight In - amount paid for the freight of goods purchased.

EXPENSES
. Salaries Expense – amount paid to services rendered by the

employees in the operation of the business.

July 17, 2015
Issued
. Supplies Expense – amount of supplies consumed or used by the
business during the period.
. Insurance Expense – amount of insurance policy incurred during the

current period.
. Taxes and Licenses Expense – costs of local and national taxes that
are incurred and required to be paid in connection with the conduct
of business.
. Utilities Expense – expenses comprising electricity, water, internet for

the operation of the business.
. Repair and Maintenance – expenses incurred in maintaining fixed

properties.
. Freight Out - amount paid for the freight of goods sold.
. Doubtful Accounts Expense or Bad Debts Expense – estimated

amount of losses from uncollected account arising from credit sales
of the current period.
. Depreciation Expense – current cost for using depreciable plant

assets.
. Bad debts- a debt that is not collectible and therefore worthless to the
creditor.
. Miscellaneous Expenses – other expenses incurred not classified

above.
Accounting Equation - ASSETS = LIABILITIES + CAPITAL
Forms of Business Organization

 Sole or Single Proprietorship – an entity owned by one person
called a sole proprietor.
July 17, 2015
Issued
 Partnership – Owned by two or more persons called partners who
agreed to contribute money, property and industry to a common
fund with the intention of dividing the profits among themselves.
 Corporation – A business registered as an artificial person under

the operation of the law. Its existence is evidenced by its Articles
of Incorporation and Corporate By-Laws registered with the
Securities and Exchange Commission (SEC).
A corporation that issues shares equity to shareholders is called a

profit corporation and a corporation that does not issue share of
entity is a nonprofit corporation.
Primary Activities of Businesses

 Servicing- business renders services to clients in exchange
for a fee.
Ex. Schools, restaurants, shops (laundry, barber,
welding, salon and repair)
 Merchandising– business engaged in buying and selling of

goods.
Ex. Grocery stores, gasoline stations, supermarket
 Manufacturing – business converts raw materials into

finished goods that are to be sold at selling price.
Ex. Factories (bamboo crafts, food processing, etc.)
Accounting Process
Identifying– is the accounting function that is concerned in

determining the economic activities affecting the basic accounting
elements of the business.
July 17, 2015
Issued
Measuring – involves assigning monetary value to the business
economic activities
Communicating – process of preparation and distribution of

accounting reports to various interested users.
Recording – putting in
writing of economic
transactions in chronological
order after they have been
identified and measured.
Classifying – process of
grouping into specific category
of various economic
transactions which are similar and identical in nature.
Reporting– summarizing the total financial information for a

given period in order that economic transactions can be read and
understood in a condensed format.
Interpreting – analytical phase of accounting.
Specialized Fields of Accounting

1. Private accounting
2. Public Accounting
3. Government Accounting
4. Accounting Education
A. SAMPLE OF CHART OF ACCOUNTS - MERCHANDISING
KATHLYN REYES MERCHANDISING

July 17, 2015
Issued
Chart of Accounts
Acct Code Account Title
110 Cash in Bank

111 Cash on Hand
112 Petty Cash
113 Accounts Receivable
114 Allowance for Bad Debts
115 Notes Receivable-short term
116 Merchandise Inventory
117 Supplies
118 Prepaid Rent
119 Prepaid Insurance
120 Land
121 Building
122 Accumulated Depreciation-Building
123 Office Equipment
124 Accumulated Depreciation – Office Equipment
201 Accounts Payable
202 Notes Payable-Short term
203 Accrued Salary Payable
204 Unearned Revenue
205 SSS/Philhealth/GSIS/PAG-IBIG Payable
206 Bank Loans Payable-long term
301 Kathlyn, Capital
302 Kathlyn, Drawings
401 Sales
402 Sales Returns & Allowances
403 Sales Discounts
404 Gain on Sale of Land, (Building, equipment, etc.)
405 Miscellaneous Income
501 Purchases
502 Purchase Returns & Allowances
503 Purchase Discounts
504 Freight-in
606 Salary Expense
606 Rent Expense
607 Utilities Expense
608 Supplies Expense
609 Bad Debts
610 Depreciation Expense
611 Freight Out
612 Miscellaneous Expense
B. SAMPLE OF CHART OF ACCOUNTS - SERVICING
NESA ROSAL ACCOUNTING FIRM

Chart of Accounts
July 17, 2015
Issued
110 Cash in Bank

111 Cash on Hand
112 Petty Cash
117 Supplies
118 Prepaid Rent
120 Land
121 Building
301 Nesa, Capital
302 Nesa, Drawings
401 Service Income
402 Interest Income
403 Gain on Sale of Land (Building, Furniture and Fixtures etc.)
501 Salary Expense
502 Rent Expense
505 Bad Debts
507 Freight Out
C. SAMPLE OF CHART OF ACCOUNTS - MANUFACTURING
EVA CREATION
Chart of Accounts

July 17, 2015
Issued
110 Cash in Bank

111 Cash on Hand
112 Petty Cash
116 Finished Goods
117 Work in Process
118 Raw Materials
119 Supplies
120 Prepaid Rent
122 Land
123 Building
301 Nesa, Capital
302 Nesa, Drawings
401 Sales
402 Sales Returns & Allowances
403 Sales Discounts
404 Gain on Sale of Land, (Building, equipment, etc.)
501 Salary Expense
502 Rent Expense
505 Bad Debts
507 Freight Out
Chart of Accounts Composition

a. Name of entity
b. Chart of Accounts (Title)
c. Account code or account number
d. Account titles
SELF-CHECK of 1.1-1

July 17, 2015
Issued
TRUE OR FALSE:
Directions: Write True if the statement is true and False

if the statement is false.
1. Partnership is an entity owned by one person called sole

proprietor.
2. Servicing is an activity of the business which serves

service to clients in exchange for a fee.
3. Liability is an accounting element which the business

owned.
4. Building is an example of a current asset.
5. Land is a non-current asset that does not depreciate.
ANSWER KEY
1.1-1

July 17, 2015
Issued
1. FALSE
2. TRUE
3. FALSE
4. FALSE
5. TRUE
JOB SHEET 1.1-1
Title: PREPARE CHART OF ACCOUNTS

July 17, 2015
Issued
Performance Objectives: Given the tools and materials, you should be
able to prepare chart of accounts.
Tools, supplies and Materials:
 Pencil
 Paper
 Eraser
 Learning materials
 Ruler
 Calculator
 Stapler
Steps / Procedures:
 Secure a copy of an activity for this particular job sheet.
 Identify each account title.
 Arrange account titles according to five basic elements of
accounting.
 Prepare a Chart of accounts according to the prescribed format.
 Check your work against the Performance Criteria Checklist on
the next page.
 Have the trainer critique the output.
Assessment/Evaluation Method:
1. Interview
2. Performance test
3. Written test
PERFORMANCE CRITERIA CHECKLIST

Job Sheet 1.1-1

July 17, 2015
Issued
Trainee’s Name: _______________________________Date:_________________
Criteria Yes No
1.1 Are account titles properly identified each account

title according to basic elements of accounting?
1.2 Are list of assets, liability, equity, income and

expense account titles prepared in accordance with the
industry practice?
1.3 Is Chart of Accounts prepared and arranged according

to the prescribed format of accounting?
Comments/Suggestions:
Trainer’s Name: _______________________________ Date:_________________
Learning Outcome 2 ANALYZE DOCUMENTS

July 17, 2015
Issued
Contents:
 Types of business documents
 Account Title Selection
 Documents are gathered, checked and verified in

accordance with verification and validation processes.
 Account titles are selected in accordance with standard
Condition:
Tools, supplies and materials:

 Pencil
 Pencil Eraser
 Ruler
 Stapler
 Calculator
 Pencil Sharpener
ASSESSMENT METHOD:
 Written test
Learning Outcome # 2ANALYZE DOCUMENTS

July 17, 2015
Issued

Analyzing documents
. Compare answers with the answer
2. Answer Self-Check 1.2-1 key, 1.2-1
You are required to get all answers
correct. If not, read the information
sheets again to answer all
questions correctly.
4. Perform Job Sheet 1.2-1 Evaluate your own work using the
Performance Criteria
Present your work to your trainer

for evaluation and recording.
INFORMATION 1.2-1
ANALYZING DOCUMENTS
Learning Objective: To orient trainees on how to identify, validate and

analyze source documents as bases in preparing journal entries.
July 17, 2015
Issued
Source Documents
Source documents - are the forms, evidences or legal/official papers
that support to the economic transactions. These are the bases of journal
transactions.
Examples of common business forms:
Official Receipt – written acknowledgement of something received as

money or goods.
Check Voucher – a document that serves to recognize a liability and

authorize the disbursement of cash through the use of check.
Petty Cash Voucher – a document that serves to recognize liability and

authorize the disbursement of cash through the use of petty cash fund.
Check – is a draft upon a bank and payable on demand signed by the

maker or drawer, containing an unconditional, promise to pay a certain
sum of money to the order of the payee.
Promissory Note – is a promise or engagement in writing to pay a

specified amount at a time therein limited to a person named.
Commercial Invoice – is a written itemized statement of merchandises

sold to the buyer, together with the prices and charges of merchandise
sent or to be sent to him.
Debit Memorandum– is a written notice given by the bank which inform

client of a reduction in his account.
Credit memorandum– is a notice given by the bank informing the client

of an increase in his account
Bank Deposit Slip– is a document which serves as evidence an act of

placing money in the custody of a bank, to be withdrawn at the will of
the depositor or under rules and regulations agreed upon.

July 17, 2015
Issued
Payroll sheet–a written list of salaries of personnel to be paid with
corresponding amount due.
Billing or Statement of Account– is a report issued periodically by a

bank or creditor to a customer setting forth the amount billed, credits
given and balance due.
ATM cards/Passbook– documents given by the bank to the owner

showing evidences for all the transactions made by the depositor.
ANALYZING BUSINESS TRANSACTIONS

July 17, 2015
Issued
Transaction 1: Cash Received per Official Receipt amounting P250,000
dated December 5, 2012 for Michael initial investment.
Analysis:
Value received: Cash

Accounting element affected: Asset
Account to be debited: Cash on hand
Amount to be debited: P250,000
Value parted with: Claim of the owner in the business
Accounting element affected: Owner’s Equity
Account to be credited: Michael, Capital
Amount to be credited: P250,000
Transaction 2: Cash deposited per deposit slip, P250,000 dated

December 6, 2012.
Analysis:
Value received: Cash

Account to be debited: Cash in Bank
Value parted with: Cash
Account to be credited: Cash on Hand
Transaction 3: Cash payment per Check Number 0055 for supplies

amounting P5,000 dated December 8, 2012.
Analysis:

July 17, 2015
Issued
Value received: Supplies
Accounting element affected: Expense
Account to be debited: Supplies Expense
Value parted with: Cash
Account to be credited: Cash in Bank
Transaction 4: Acquisition of Office Computer amounting P35,000

on account.
Analysis:
Value received: Computer

Account to be debited: Office Equipment
Value parted with: obligation to pay
Accounting element affected: Liability
Account to be credited: Accounts Payable
Rules of Debit and Credit

The rules of debit and credit are based on the normal balance of an
accounting element or account . Normal balance of an account refers to the
usual position of an account in the T – account.

July 17, 2015
Issued
Rule 1 – Assets: Debit to increase the amount of asset,
Credit to decrease its amount.
Rule 2 – Liability: Credit to increase the amount of liability,

Debit to decrease its amount.
Rule 3 – Owner’s Equity:
Credit to increase the capital account,
Rule 4 – Revenue:
Credit to increase the revenue account,
Rule 5 – Expenses:
Debit to increase expense account,
Credit to decrease its amount.
Normal Balance of Accounts
DEBIT- Assets, Expenses, Drawings, Sales Returns & Allowances,

sales Discount
CREDIT - Liabilities, Revenue, Capital, Allowance for Bad Debts,
Accumulated depreciation, Purchase Returns &
Allowances, Purchase discounts
SELF-CHECK of 1.2-1

July 17, 2015
Issued
Completion Test
Direction: Provide the answer of the following
1. A written itemized statement of merchandises sold to the buyer,

together with the prices and charges of merchandise
is______________________
2. A draft upon a bank and payable on demand signed by the maker
or drawer, containing an unconditional, promise to pay a certain
sum of money to the order of the payee_________________
3. Written acknowledgement of something received as money or
goods_________________________________.
4. Document that serves to recognize a liability and authorize the
disbursement of cash through the use of check_______________.
5. Document that serves to recognize liability and authorize the
disbursement of cash through the use of petty cash
fund___________________.
6. Written notice given by the bank which inform client of a
reduction in his account is_____________________________.
7. Informs the client of an increase in his account from the
bank_________________________
8. A promise or engagement in writing to pay a specified amount at
a time therein limited to a person named_____________________.
9. A document which serves as evidence an act of placing money in
the custody of a bank, to be withdrawn at the will of the depositor
or under rules and regulations agreed
upon______________________.
10. Report issued periodically by a bank or creditor to a customer
setting forth the amount billed, credits given and balance
due___________________________.
ANSWER KEY
1.2-1
July 17, 2015
Issued
 Commercial Invoice
 Check
 Official Receipts
 Check voucher
 Petty Cash Voucher
 Debit memorandum
 Credit memorandum
 Promissory note
 Bank deposit slip
 Billing statement of account
JOB SHEET 1.2-1

July 17, 2015
Issued
Title: ANALYZE DOCUMENTS

able to analyze documents from the source documents presented.
Supplies and Materials:
 Pencil
 Paper
 Eraser
 Ruler
 Calculator
 Stapler
Steps / Procedures:
 Ask the trainer for a copy of source documents for this
particular job sheet.
 Identify and arrange each document (official receipts,
deposit slips, vouchers, or statement of accounts.)
 Arrange and analyze each document.
 Determine each document according to what account title they
belong.
the next page.
1. Interview
2. Performance test

July 17, 2015
Issued
Job Sheet 1.2-1
Criteria Yes No
1. Are documents gathered, checked and verified in

accordance with verification and validation processes?
2. Account titles are selected in accordance with standard

Trainer’s Name: ____________________________ Date:_________________

July 17, 2015
Issued
Learning Outcome 3 PREPARE JOURNAL ENTRY
Contents:
 Generally Accepted Accounting Principles
 Accounting Equation
.Journals are prepared in accordance with industry practice and

generally accepted accounting principles for transactions and
events.
.Debit and Credit account titles are determined in accordance

with chart of accounts.
.Explanation to journal entry is prepared in accordance with the

nature of transactions.
. Journal entries are prepared with 100% accuracy.
Condition:
Tools, supplies and Materials:
 Pencil
 Paper
 Eraser
 Journal forms
 Ruler
 Calculator
 Stapler
ASSESSMENT METHOD:
 Written exam
 Work-related projects
July 17, 2015
Issued
Learning Outcome # 3PREPARE JOURNAL ENTRIES

Prepare Journal Entries
. Compare answers with the
2. Answer Self-Check 1.3-1 answer key, 1.3-1
You are required to get all
answers correct. If not, read the
information sheets again to
answer all questions correctly.
3. Perform Job Sheet 1.3-1 Evaluate your own work using

the Performance Criteria
Present your work to your

trainer for evaluation and
recording.
LEARNING OUTCOME NO. 3 – PREPARE JOURNAL ENTRY

July 17, 2015
Issued
LEARNING OBJECTIVE: To orient trainees on the process of journalizing
entries based on the source documents analyzed for the given period.
Classification of a Journal
1. General Journal–is a book of original entry where journal entries are recorded in
chronological order by debiting and crediting all accounts.
2. Special Journals - are journals intended for a specified activity only.
Ex. Purchase Journal, sales journal, cash disbursements journal

cash receipts journal, check disbursements journal
2.1 Purchase Journal – a journal in which all incoming merchandise

invoices or purchases on account are recorded.
2.2 Sales Journal – a journal in which all outgoing merchandise or

sales on account are recorded.
2.3 Cash Receipts Journal – is a books used to record all collections

made in cash.
2.4 Check Disbursement Journal – a journal which all outgoing check

disbursements are recorded.
2.5 Cash disbursement journal – journal which all cash disbursements

are recorded.
Composition of a Journal

July 17, 2015
Issued
a. The date column is for recording the date on which the transaction is journalized.
b. The description column is for recording the account titles to be debited and credited and the
explanation identifying the source documents and nature of transactions.
b.1 Leave one blank line between each journal entry.

b.2 The credit account title should be indented from the debit title .
c. PR stands for Posting Reference. It is used to cross-reference the account to the

General Ledger. It is the account code from the General Ledger.
d. The debit and credit money columns are used to record the amount of the transaction.
d.1 The single vertical line represents the decimal point.
d.2 The decimal point and comma are never recorded in the general journal (GL)
If you will use columnar sheet.
e. The Page Number is preprinted to cross-reference the account to the GL page.
Format of a journal
Debit – (Dr) is the value received in a business. The place of debit in the
equation is on the left-hand side.
Credit – (Cr) is the corresponding value parted with of the debit. The place
of credit on the equation is on the right – hand side

July 17, 2015
Issued
Double-Entry Bookkeeping
The double-entry bookkeeping system is based
on the dual aspect concept which says that in every
transaction, two effects of recording are to be made –
the value received (debit) and the value parted with
(credit)
Example 1
Initial capital given by KRYSTAL Enterprises on December 1, 2010 P300,000.
GENERAL JOURNAL
2010 DESCRIPTIONS PR DEBIT CREDIT
Dec 1 Cash P 300,000.00
KRYSTAL, Capital P 300,000.00
To record initial capital of Krystal Enterprises
The transaction regarding the initial capital of the owner is recorded

twice in the general journal – One is Cash (debit side) which represents the
value received by the business, and the other is the Capital (credit side), the
value parted with or the obligation of the business to hold in trust the
investment of the owner.
Example 2
On December 3, the enterprise sold goods P80,000 on account .
GENERAL JOURNAL
Dec 3 Accounts Receivable P 80,000.00
Sales P 80,000.00
To record goods sold on account.

July 17, 2015
Issued
The transaction regarding the goods sold on account is recorded as
Accounts Receivable (debit side) which represents the value received by
the business, and the other is the Sales (credit side), the value parted with
for the goods sold on account.
Example 3
On December 5, the enterprise sold P110,000 , on cash basis..
GENERAL JOURNAL
Dec 5 Cash P 110,000.00
Sales P 110,000.00
To record sales on cash basis
Cash (debit side) which represents the value received by the

business. The other is the Sales (credit side), the value parted with or the
revenue for the above transaction.
Example 4
December 10, Krystal withdrew P10,000 for personal use.
GENERAL JOURNAL
Dec 10 Krystal, Drawings P 10,000.00
Cash P 10,000.00
To record drawings of Krystal.
Krystal, Drawings (debit side) which represents the value received

by the business. The credit side is the Cash, thevalue parted with or the
cash withdrawn by Krystal.

July 17, 2015
Issued
Example 5
December 15, supplies purchased on account P50,000.
GENERAL JOURNAL
Dec 15 Salon supplies P 50,000.00
Accounts Payable P 50,000.00

To record purchased of supplies on account.
Enterprise supplies (debit side) which represents the value received

by the business. The credit sideAccounts Payable, thevalue parted with..
Example 6
December 25, The enterprise acquired service vehicle amounting P125,000 on
account.
GENERAL JOURNAL
Dec 25 Service Vehicle P 125,000.00
Accounts Payable P 125,000.00

To record acquisition of service vehicle
on account.
Service Vehicle (debit side) which represents the value received by

the business. The credit side is Accounts Payable, thevalue parted with or
the obligation to pay for the service vehicle acquired on account.
Example 7
December 31, The enterprise paid salaries for the employees amounting 5,000.00.
GENERAL JOURNAL
Dec 31 Salaries Expense P 5,000.00
Cash P 5,000.00
To record payment of salaries.

July 17, 2015
Issued
Salaries Expense (debit side) which represents the value received by
the business. The normal balance of an expense is in debit side. The credit
side is Cash, thevalue parted with or the payment of salaries of employees.
To summarize the data of Krystal Enterprises based from 7 examples

above, the General Journal of Krystal Enterprises would be :
GENERAL JOURNALPage No. 1

DATE DESCRIPTIONS PR DEBIT CREDIT
1-Dec Cash P 300,000.00
KRYSTAL, Capital P 300,000.00

To record initial capital of Krystal
Enterprises
3-Dec Accounts Receivable 80,000.00

Sales 80,000.00
To record sales of goods on account.
5-Dec Cash 110,000.00

Sales 110,000.00
To record sales on cash basis.
10-Dec KRYSTAL, Drawings 10,000.00

Cash 10,000.00
To record Krystal drawing
15-Dec Enterprise supplies 50,000.00

Accounts Payable 50,000.00
To record purchased of supplies on
account.
25-Dec Service Vehicle 125,000.00

Accounts Payable 125,000.00
To record purchased of Vehicle on
account
31-Dec Salaries Expense 5,000.00

Cash 5,000.00
To record payment of salaries

July 17, 2015
Issued
SELF-CHECK 1.3-1
IDENTIFICATION OF ACCOUNTING ELEMENTS:
Instruction: Classify the items below to what element

they belong to: Asset, Liability, Owner’s Equity, Revenue
or Expense
1. Accounts Receivable
2. Store Building
3. Land
4. Prepaid Rent
5. Owner’s Drawings
6. Interest Income
7. Accumulated Depreciation
8. Used Supplies
9. Bad Debts
10. Accounts Payable

July 17, 2015
Issued
ANSWER KEY 1.3-1
1. Asset
2. Asset
3. Asset
4. Asset
5. Owner’s Equity
6. Revenue
7. Asset
8. Expense
9. Expense
10. Liability

July 17, 2015
Issued
JOB SHEET 1.3-1
Title: Prepare Journal Entry

able to prepare journal entries from the source documents analyzed and
verified.
Supplies and Materials:
 Pencil
 Paper
 Eraser
 General Journal form
 Ruler
 Calculator
 Stapler
Steps / Procedures:
 Ask the trainer for copies of analyzed and verified source
documents (photocopied) for this particular job sheet.
 Identify what account title to be used for debit and credit
columns.
 Arrange documents according to the date of transaction.
 Enter the date, debit account title and amount to their respective
columns.
 Enter the credit account title and amount to their respective
columns.
 Give the explanation of each journal transactions.
the next page.

July 17, 2015
Issued
1. Interview
2. Performance Criteria Checklist
3. Work related project
4. Written examination

July 17, 2015
Issued
Job Sheet 1.3-1
Criteria Yes No
1. Are journals prepared in accordance with industry

practice and generally accepted accounting
principles?
2. Are debit account titles determined in accordance
with chart of accounts?
3. Are credit account titles determined in accordance
with chart of accounts?
4. Is explanation to journal entry prepared in
accordance with the nature of transactions?
5. Are Journal entries prepared with 100% accuracy?
Trainer’s Name: ___________________________ Date:_________________

July 17, 2015
Issued
REFERENCES
BOOKS
Edwin G. Valencia, Gregorio F Roxas (2009-2010). Basic Accounting,

Concepts, Principles, Procedures and Applications 3rd Edition.
Edwin G. Valencia, Gregorio F Roxas, Darrel Joe O Asuncion (2009-2010)

Partnership and Corporation Accounting, 3rd Edition.
Conrado T. Valix & Jose F. Peralta (2004). Financial Accounting, Volume 1.
Training Regulations, Bookkeeping NC III – TESDA Central Office

July 17, 2015
Issued

COMPETENCY BASED LEARNING MATERIAL-Journalize-Trans.-enhanced

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COMPETENCY BASED LEARNING MATERIAL

Sector: HEALTH, SOCIAL AND OTHER COMMUNITY DEVELOPMENT SERVICES

Qualification: BOOKKEEPING NC III

Unit of Competency: JOURNALIZE TRANSACTIONS

Module Title:Journalizing Transactions

Date Developed: Document No.

Date Developed: Document No.

No. Unit of Competency Module Title Code

1 Journalize Transactions J Journalizing Transactions HCS412301

2 Post Transactions Posting Transactions HCS412302

3 Prepare Trial Balance Preparing Trial Balance HCS412303

4 Prepare Financial Reports Preparing Financial Reports HCS412304

5 Review Internal Control Reviewing Internal Control HCS412305

Date Developed: Document No.

QUALIFICATION : BOOKKEEPING NC III

UNIT OF COMPETENCY : JOURNALIZE TRANSACTIONS

MODULE TITLE : JOURNALIZING TRANSACTIONS

MODULE DESCRIPTOR : This unit covers the knowledge, skills and

NOMINAL DURATION : 48 HOURS

At the end of this module, you must be able to:

Date Developed: Document No.

Journal - known as the "book of original entry,” is an

The accounting record written in the journal is called Journal

LEARNING OUTCOME SUMMARY

Learning Outcome  1 PREPARE CHART OF ACCOUNTS

 List of asset, liability, equity, income and expense account

The trainees must be provided with the following:

Tools, supplies and materials:

Date Developed: Document No.

PREPARE CHART OF ACCOUNTS

Learning Activities Special Instructions

1. ReadInformation Sheet 1.1-1

3. Perform Job Sheet 1.1-1 Evaluate your own work using

Present your work to your

INFORMATION SHEET 1.1-1

What is Chart of Accounts?

Chart of accounts is a listing of all the accounts in the general

Bookkeeping, Accounting & Auditing

Accounting is broader in scope. It is the art of recording,

Auditing performed after the accounting work ends. It is the

Date Developed: Document No.

Basic Elements of Accounting

 ASSETS - are resources or things of value owned by an enterprise.

 LIABILITIES – are present obligations to pay cash or cash

 CAPITAL/OWNER’S EQUITY – the residual amount after deducting

 REVENUE – represents the earnings of the business from sales of

 EXPENSES– are costs incurred in conducting business activities It

. Accounts Receivable – Amount collectible on open accounts of the

Date Developed: Document No.

. Notes Receivable – a promissory note received by the business from

. Accrued Interest Receivable – the interest earned on note receivable

. Inventories – assets held for sale in the normal operation of the

. Land – the site owned by the business on which building is

. Building – the structure owned by the business used in the operation

. Furniture and Fixtures – items used by the business include store

. Equipment – machinery used in a business like computers,

. Vehicles - transportation used in transporting commodities, people

. Accumulated Depreciation – periodic costs of using a depreciable

. Other Property, Plant & Equipment–are fixed assets not included

. Copyright - the legal right to be the only one to reproduce, publish,

. Goodwill - intangible asset that arises as a result of the acquisition

. Accounts Payable – an obligation or debt to creditors for money

. Notes Payable - a promissory note issued by the business to its

Trainer’s Name: _______________ Date:_