BOOKEEPING Flashcards
REFERS TO THE RECORDING OF BUSINESS
TRANSACTIONS IN THE BOOKS OF THE
BUSINESS.
BOOKKEEPING
REFERS TO EVENTS WHERE ARE EXCHANGES OF
VALUES THAT ARE MEASURABLE IN ONE
COMMON DENOMINATOR.
TRANSACTION
THE BOOK OF ORIGINAL ENTRY
JOURNAL
THE BOOK OF FINAL ENTRY
LEDGER
PROVIDES THE DESCRIPTION OF THE TYPE AND
NATURE OF THE BUSINESS TRANSACTION.
ACCOUNT TITLES
5 CATEGORIES OF ACCOUNTS OR ELEMENTS OF
ACCOUNTING ARE AS FOLLOWS:ACCOUNTING
- ASSETS
- LIABILITIES
- CAPITAL
- INCOME
- EXPENSE
ASSET ACCOUNT TITLES
- CASH
- ACCOUNTS RECEIVABLES
- NOTES RECEIVABLES
- SUPPLIES ON HAND
- UNUSED FACTORY SUPPLIES
- INVENTORY
- RAW MATERIALS INVENTORY
- WORK-IN-PROCESS INVENTORY
- FINISHED GOODS LESSON 1
- EQUIPMENT
- FURNITURE AND FIXTURES
LIABILITY ACCOUNT TITLES
- ACCOUNTS PAYABLE
- NOTES PAYABLE
- UTILITIES PAYABLE
- SALARIES PAYABLE
CAPITAL ACCOUNT TITLES
- CAPITAL
- DRAWING
INCOME ACCOUNT TITLES
- SERVICE INCOME
- RENTAL INCOME
- SALES
EXPENSE ACCOUNT TITLES
- SALARIES AND WAGES
- STORE SUPPLIES EXPENSE
- TAXES AND LICENSES
- UTILIES EXPENSE
- TRAVELLING EXPENSE
IT IS A SUPPORTING DOCUMENTS OF THE
EXISTENCE OF TRANSACTIONS.
BUSINESS DOCUMENTS
BUSINESS DOCUMENTS
- PURCHASE ORDER
- INVOICE
- OFFICIAL RECEIPT
- DELIVERY RECEIPT
- RECEIVING REPORT
- CHECK
- VOUCHER
CONCEPTS IN
BOOKKEEPING
- SUPPORT ALL TRANSACTIONS WITH BUSINESS
DOCUMENTS. - RECORD THE TRANSACTIONS USING THE TWO-
COLUMN JOURNAL. - USE PROPER ACCOUNT TITLE.
- OBSERVE THE GUIDELINES WHEN USING THE TWO-
COLUMN JOURNAL.
ASSET=
liability+ Capital
LIABILTY=
Asset- Capital
Capital=
Asset- Liability
Accounting Equation:(INCOME STATEMENT)
Net Income= Revenue- Expenses
When to Debit:
Increase in asset
Increase in
expense
Decrease in
liability
Decrease in
Equity Account
When to Credit:
Decrease in Asset
Decrease in
expense
Increase in
liability
Increase in Equity
Account
IT REFERS TO THE GROUPING OF SIMILAR
BUSINESS TRANSACTIONS AND EVENTS.
IT IS THE SECOND MECHANICAL PHASE OF THE
WHOLE ACCOUNTING PROCESS.
CLASSIFYING
THE PROCESS OF TRANSFERRING THE SAME
INFORMATION FROM THE JOURNAL TO THE
LEDGER.
POSTING
IT IS BASICALLY ACTS AS AN ACCOUNTING TOOL
THAT ACCUMULATES ALL NECESSARY
INFORMATION PRIOR TO THE PREPARATION OF
THE FINANCIAL STATEMENTS.
LEDGER
IS THE PROCESS OF ADDING THE DEBIT
AND THE CREDIT MONEY COLUMNS OF THE LEDGER
AND FINDING THEIR BALANCES.
FOOTING
IT IS THE LISTING OF DEBIT AND
CREDIT BALANCES OF ACCOUNTS FROM
THE GENERAL LEDGER WITH THE FF.
PURPOSES.
TRIAL BALANCE
TWO MAJOR PART OF TRIAL BALANCE
HEADING AND BODY
TWO KINDS OF TRIAL BALANCE
- TRIAL BALANCE OF TOTALS
- TRIAL BALANCE OF BALANCE
