“Business

Financial Management”
To impart with the aspiring entrepreneurs some
tips on how to manage business finances
• The students will be able to analyze the difference
between investing 100% of personal money vs. Having
portion of investment from loan/s.
• The students will learn the importance of tracking
business transactions, as well as learning basic method
of accounting transactions.
• The attendees will learn how to budget business
finances.
• Learning the importance of separating personal and
business finances/ transactions
• Learning how to make idle/excess cash productive.
VS.
 “According to my
feasibility if I start to put
up my business this year, it
will double next year,
meaning my Php
100,000.00 of investment
will be Php 200,000.00
next year. If I will withdraw
Php 100,000.00 to invest in
RTW Business, my profit in
a year will be;
March 2020 expected Income Php 200,000.00
Less; March 2019 Investment Php 100,000.00
March 2020 Income Php 100,000.00
 “So, If I invest my Php
100,000.00 in RTW, next
year I will enjoy Php
100,000.00 of profit less
expenses. Hmmm not
bad, but how about if I
invest only Php
50,000.00 of my money
and another Php
50,000.00 of bank loan
with 12% interest per
annum”
• March 2020 expected Income Php 200,000.00
• Less; March 2019 Investment of personal money Php 50,000.00
• Less; March 2019 Bank Loan with 12% Interest Php 56,000.00
• March 2020 Income Php 94,000.00
Recording Accounting Transactions of RTW Business;
On March 20, 2019 Jem Invested Php 50,000.00 on
her RTW Business
To record Investment in the business
Dr. Cash- Capital Php 50,000.00
Cr. Jem- Cash Php 50,000.00
On March 21, 2019 Jem’s bank loan of Php 50,000.00
was approved with a 12% interest per annum. She
Invested the whole Php 50,000.00 to her business.
Dr. Cash- Additional Capital Php 50,000.00
Cr. Jem- Cash from Bank Loan Php 50,000.00
On March 21,2019 Jem’s RTW Business have a total
capital of Php 100,000.00
On March 22, 2019 Jem’s supplier delivered Goods she
ordered to operate her business, Jem and Supplier agreed
that the term of payment will be COD (Cash on Delivery) The
Goods worth is Php 89,000.00 Jem paid for the agreed
amount.
Dr. Inventory (Canned Goods,
Powdered Milk, Coffee, Soap Shampoo Etc.,) Php 89,000.00
Cr. Cash Php 89,000.00
On the same day of delivery, Jem still have some permits to
get, and pay random expenses related to the business.
Dr. Miscell. Expense Php 11,000.00
Cr. Cash Php 11,000.00
At the end of the day, the Php 100,000.00 Cash on hand of
Jem is already exhausted, but her RTW business worth is Php
100,000.00
 On March 23, 2019 Jem started to operate her business.
A woman bought 3 canned goods, powdered milk, bath soap and
shampoo, and detergent. The woman pays Jem Php 350.00 for all
the goods she bought.

Dr. Cash Php 350.00

Cr. Inventory Php 350.00

＋ = -
After a month of operating (April 25, 2019)
Jem’s RTW Business already have Php
20,832.67 sales revenue. She is now running
out of Inventory and needs to replenish sold
goods, her store’s electric bill is Php 1,800.00
and as per her Inventory Checking, the cost of
Goods that she needs to replenish is Php
5,616.66 Jem also going to pay her monthly
bank loan due Php 4,666.66 How is she going
to budget her sales revenue?
American
businessman most
famous for serving
as president of the
International
Telephone and
Telegraph
Corporation.