ACCOUNTANCY the practice and art of science of accounting

DEFINITION OF ACCOUNTING

A body of knowledge governing the science of recording, classifying, and analyzing financial transactions
AICPA 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
AAA (American Accounting Association) the process of identifying, measuring, and communicating economic information to permit
informed judgments and decisions by users of the information
ASC (Accounting Standards Council) a service entity
Laymans parlance the explanation of amounts to businessmen about their resources

PURPOSE OF ACCOUNTING: To provide quantitative, financial information about economic entities that is intended to be useful in making economic
decisions
ECONOMIC ENTITIES are separate and identifiable combination of persons or entities that use economic resources and avail of economic obligations
to achieve goals
QUANTITATIVE INFORMATION expressed in numbers and in terms of money, primarily financial in nature
PHASES OF ACCOUNTING

1. RECORDING technically known as bookkeeping; recording the economic activities of the business or its historical events
2. CLASSIFYING involves the grouping of similar accounting elements or items affected into useful groups pr categories
3. SUMMARIZING preparation of financial reports or financial statements
4. INTERPRETING to understand the meaning of the numbers contained in the financial statements
The sphere of accounting starts where the bookkeeping ends.

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) a collection of commonly followed accounting rules, standards, and procedures for
financial reporting
PURPOSE: To ensure that financial reporting is transparent and consistent from one company to another
USERS OF FINANCIAL STATEMENTS
1.
2.

INTERNAL USERS those who make decisions directly affecting the internal operations of the entity
EXTERNAL USERS those who make decisions concerning their relationship to the entity

BRANCHES OF ACCOUNTING
I. BUSINESS ACCOUNTING - also known as Enterprise or Commercial Accounting
a. FINANCIAL ACCOUNTING concerned with general purpose financial statements; guided by the Philippine Financial Reporting
Standards (PFRSs) or the Generally Accepted Accounting Principle (GAAP) and for external reporting
b. MANAGERIAL ACCOUNTING processing or preparation of special purpose financial reports for management needs; uses GAAP
and Non-GAAP
c. COST ACCOUNTING helps the company in determining and exercising control over the cost of the manufactured product or
service provided by the company
d. TAX ACCOUNTING includes the preparation of tax returns and the consideration of the tax consequences of business
transactions
II. NOT-FOR-PROFIT ACCOUNTING
a. GOVERNMENT ACCOUNTING the process of analyzing, recording, classifying, summarizing, and communicating all transactions
involving state funds and properties
b. INSTITUTIONAL ACCOUNTING the accounting for non-profit entities
III. AUDITING
a. EXTERNAL AUDITING the independent examination intended to support the expression of an impartial expert opinion on the
fairness of the financial statements
b. INTERNAL AUDITING an independent, objective assurance and consulting activity designed to add value and improve an
organizations operations
c. FORENSIC AUDITING the science that deals with the relation and application of finance, accounting, tax and auditing knowledge
IV. FIDUCIARY ACCOUNTING done by a trustee, administrator, executor, or anyone in a position of trust
a. ESTATE ACCOUNTING handling of accounts for fiduciaries who wind up the affairs of a dead person
b. TRUST ACCOUNTING determine the customers money that are held for the purpose contracted by the customer and its
management
c. RECEIVERSHIP ACCOUNTING appointed to take charge of a financially unstable business

Financial accounting facilitates the management assertions in the financial statements presentation based on the PFRS. Financial auditing
examines these compliant financial statements with PFRS using the Philippine Auditing Standards (PSA). When financial accounting stops,
financial auditing begins.

Financial accounting is oriented towards the preparation of financial statements to both internal and external users. Managerial accounting is
oriented in preparing reports for internal or management use, uses both GAAP or non-GAAP.
NON-GAAP assumptions, estimates, statistics, and presentations that may violate the GAAP but is greatly needed in making economic decisions
CAREER OPPORTUNITIES
1.

PUBLIC PRACTICE SECTOR engaged in practicing their profession as individual practitioner or those who joined an accounting / auditing /
consulting firm (Association of CPAs in Public Practice - ACPAPP)

2.
3.
4.

COMMERCE AND INDUSTRY SECTOR employed in private firms (Association of CPAs in Commerce and Industry ACPACI)
GOVERNMENT SECTOR working in government offices or public enterprises (Government Association of CPAs GACPA)
EDUCATION SECTOR teaching profession (Association of CPAs in Education - ACPAE)

FORMS OF BUSINESS ORGANIZATION

1.
2.
3.
4.

SOLE PROPRIETORSHIP owned and operated or managed by one person

PARTNERSHIP a business owned and operated by two or more persons
CORPORATION an artificial being created by operation of law
COOPERATIVE a duly registered association of persons, with a common bond of interest, who have voluntarily joined together

TYPES OF BUSINESS ACTIVITIES

1.
2.
3.
4.
5.

SERVICE FIRMS perform services for a fee

MERCHANDISING / TRADING FIRMS those that will buy and sell merchandise or goods that are in salable form
MANUFACTURING FIRMS those that buy materials, convert them into finished products, and sell the manufactured products to other
companies or individual customers
AGRI-BUSINESS involves the production, processing, and distribution of agricultural products
AQUA-CULTURE / AQUA FARMING the farming of aquatic organism

HISTORICAL DEVELOPMENT
THE CLASSICAL NOTION OF STEWARDSHIP Everything we own belongs to God and we ought to use it as though we are only left to be
in charge of it.
2. FLORENTINE APPROACH of double entry / Journal Entries records each transaction with one debit and one credit; total debits = total
credits
3. VENETIAN APPROACH gave emphasis on Ledger Posting, simplified in T-account; transactions are recorded in bilateral form; left side
debit; right side credit
4. SAVARY COMMERCIAL CODE (HISTORICAL COST METHOD) uses historical cost as the basis of valuation
5. NAPOLEON COMMERCIAL CODE (FAIR VALUE METHOD) carried at the market value at the day of inventory and not on the basis of
historical cost
6. SCHMALENBACH the intellectual father of organized thought on behalf of uniform accounting; introduced the Model of Chart Accounts
Amatino Manucci inventor of double entry bookkeeping; introduced the Florentine Approach
Double Entry Accounting known to be the first modern form of accounting
Pacioli Father of Accounting
International Accounting Harmonization the process through which the national rules or norms, different from another country, are improved in
order to become comparable
1.

FINANCIAL REPORTING STANDARDS COUNCIL (FRSC) main function is to establish GAAP in the Philippines; established by the Board of
Accountancy (BOA); successor of Accounting Standards Council (created by PICPA)
CONCEPTUAL FRAMEWORK FOR FINANCIAL REPORTING a complete, comprehensive, and single document
CONCEPTUAL FRAMEWORK a summary of the terms and concepts that underlie the preparation and presentation of financial statements for
external users
USERS OF FINANCIAL INFORMATION
1.
2.

PRIMARY USERS parties to whom general purpose financial reports are primarily directed
OTHER USERS parties that may find the general purpose financial reports useful but the reports are not directed to them primarily

OBJECTIVE OF FINANCIAL REPORTING to provide financial information about the reporting entity
QUALITATIVE CHARACTERISTIC the qualities or attributes that make financial accounting information useful to the users
1.

2.

FUNDAMENTAL QUALITATIVE CHARACTERISTIC relate to the content or substance of financial statements

a. RELEVANCE capable of making a difference in the decision made by users
Ingredients of Relevance:
i. Predictive value information about financial position and past performance is used in predicting dividend
ii. Confirmatory value financial information enable users to confirm or correct earlier expectations
b. FAITHFUL REPRESENTATION financial information must faithfully represent the phenomena that it purports to represent
Ingredients of Faithful Representation:
i. Completeness includes all information necessary for a user to understand the phenomenon being depicted
ii. Neutrality without bias in the selection or presentation of financial information; to be neutral is to be fair
iii. Free from error there are no errors or omission in the description of the phenomenon
ENHANCING QUALITATIVE CHARACTERISTICS enhance the usefulness of information that is relevant and faithfully represented
a. COMPARABILITY the ability to identify similarities and differences between two sets of economic phenomena
i.
Intra-comparability / Horizontal Comparability involves comparison of data within single entity covering at least two
periods
ii.
Inter-comparability / Dimensional Comparability involves a comparison of data for a single period between two or more
entities belonging to the same line of industry
b. VERIFIABILITY helps to assure users that information represents faithfully the economic phenomena that it purports to represent
c. TIMELINESS- information must be available when the users need it
d. UNDERSTANDABILITY the quality of information that enables users to comprehend

MAJOR UNDERLYING ASSUMPTION

1.
2.

ACCRUAL BASIS events are recognized when they occur and not as cash or its equivalent is received or paid
GOING CONCERN an entity is a going concern and will continue in operation for foreseeable future

OTHER BASIC ACCOUNTING ASSUMPTIONS

1.
2.
3.

ECONOMIC / SEPARATE / ACCOUNTING ENTITY ASSUMPTION assumes that the entity is separate and distinct from its owners or other
business units
MONETARY UNIT ASSUMPTION economic activities are measured and reported in Philippine peso
PERIODICITY ASSUMPTION economic entity can be divided into time periods
a. Calendar Year 12 month-period that starts on January 1 and ends on December 31
b. Fiscal Year 12 month-period that do not start on January 1
c. Natural Business Year starts on the peak of the season and ends on the slack season

ELEMENTS OF THE FINANCIAL STATEMENTS

1.
2.
3.

ASSETS resources controlled by the entity

LIABILITIES financial obligations of an entity arising from past events
EQUITY / CAPITAL residual interest in the assets of an entity after deducting all its liabilities

ELEMENTS DIRECTLY RELATED TO THE MEASUREMENT OF PERFORMANCE

1.
2.

INCOME increases in economic benefits during the accounting period in the form of inflows of assets or decreases of liabilities that result to
increases in equity
EXPENSES decreases in economic benefits during the accounting period in the form of outflows of assets or incurrence of liabilities that
result in decreases in equity

RECOGNITION the process of incorporating in the statement of financial position or income statement an item that meets the definition of an element
and satisfies the criteria for recognition
1.
2.
3.
4.

ASSETS probable that the future economic benefits will flow to the entity and the asset has a cost or value that can be measured reliably
LIABILITIES probable that an outflow of resources embodying economic benefits will result from the settlement of a present obligation
INCOME increase in the future economic benefits related to an increase in asset or decrease in liability
EXPENSES decrease in future economic benefits related to a decrease in asset or an increase in liability
a. Matching Principle basis of a direct association between the costs incurred and the earning of specific items of income
b. Systematic and Rational Allocation economic benefits are expected to arise over several accounting periods
c. Immediate Recognition recognized immediately in the income statement when expenditure produces no future economic
benefits

ACCOUNTING EQUATION: Assets = Liabilities + Equity

6 TYPES OF ACCOUNTS
1.
2.

PERMANENT ACCOUNTS: Assets, Liabilities, Equity

TEMPORARY ACCOUNTS: Revenues, Expenses, Drawings

TYPES OF TRANSACTIONS
1.
2.

EXTERNAL TRANSACTION exchanges of value between the business and the outside party or parties
INTERNAL TRANSACTION exchanges within an entity

TRANSACTION ANALYSIS the process of studying a transaction to determine its economic effect on the business
ACCOUNT a record in the general ledger that is used to collect and store debit and credit amounts
DEBIT debere (Dr); debtor
CREDIT credere (Cr); creditor
T-ACCOUNT simplified format of an account
FINANCIAL STATEMENTS the principal means through which financial information is communicated to those outside of an entity
1.

2.
3.

INCOME STATEMENT presents the revenues and expenses and the resulting net profit or loss
a. Single-step commonly used by service entity
b. Multiple-step commonly used by traders or merchandisers
Forms:
a. Functional Presentation / Cost of Sales Method the traditional and common form of income statement; classifies expenses
according to their function
b. Natural Presentation / Nature of Expense Method expenses are aggregated according to their nature and not allocated among
various functions within the entity

Increase in inventory will be in parenthesis; Decrease in inventory will be a plus item.

STATEMENT OF CHANGES IN EQUITY summarizes the changes in owners equity; connecting link between the income statement and the
statement of financial position
STATEMENT OF FINANCIAL POSITION reports the assets. Liabilities, and owners equity

4.

5.

a. Account form assets are at the left side; liabilities and equity are at the right side
b. Report form from top to bottom
CASH FLOW STATEMENT summarizes information about the cash inflows and outflows
a. Operating cash flow reports cash inflows and cash outflows from operations
b. Investing cash flow reports cash transactions involving the acquisition or sale of non-current assets
c. Financing cash flow cash transactions related to cash investments and cash withdrawals by the owner
NOTES

ACCOUNTING INFORMATION SYSTEM (AIS) the system every entity must have that collects and processes transaction data and disseminates
reliable financial information to various stakeholders
ACCOUNTING MANUAL specifies the policies and procedures to be followed in accumulating information within the AIS
BOOKKEEPING involves the routine, mechanical, and clerical work
KINDS OF BOOKKEEPING
1.
2.

SINGLE-ENTRY two-fold effects of a transaction are not taken up in the records at all time
DOUBLE-ENTRY considers the two-fold effects of a transaction resulting to the sum of debit side amounts that should equal to the sum of
credit side amounts

STEPS IN THE ACCOUNTING CYCLE

Recording Phase
1.
2.
3.

Analyze transaction
Journalizing the process of recording the transactions in chronological order in the journal (books of original entry)
Posting the process of transferring the entries from the journal to the ledger

Summarizing Phase
4.
5.
6.
7.
8.
9.

Preparation of the trial balance

Journalize and post adjusting entries
Preparation of financial statements
Preparation of closing entries
Preparation of the post-closing trial balance
Preparation of the reversing entries made on the first day of the next accounting period

SOURCE DOCUMENT refers to a business paper or business form that provides details of a transaction and serves as an evidence that a transaction
has taken place
CHART OF ACCOUNTS a listing of all accounts and their account numbers as they should be reflected in the general ledger
SEQUENCING OF ACCOUNTS: Assets, Liabilities, Equities, Revenues, Other revenues and gains, Expenses, Other expenses and losses
JOURNAL a chronological record of transactions entered into by a business
Opening entry first entry made in the general journal
Simple entry an entry only involves two accounts, one debit and one credit
Compound entry involves more than two accounts
LEDGER (book of final entry) a group of accounts
General ledger contains all the accounts needed to prepare the financial statements
Open accounts accounts in the ledger with a debit or credit balance
Closed accounts account with a zero balance
TRIAL BALANCE a list of accounts and their balances at a given time
1.
2.

TRIAL BALANCE OF TOTALS lists the total debit footings and the total credit footings
TRIAL BALANCE OF BALANCES lists only the balance of each open account in the ledger

KINDS OF ERROR
1.
2.

TRANSPOSITION ERROR the order of the digits is erroneously rearranged; usually divisible by 9
SLIDE ERROR there is a movement of the decimal place one or more spaces to the right or left

ADJUSTING ENTRIES the journal entries that bring the accounts up to date at the end of the accounting period; consist of one income statement
account (nominal) and one statement of financial position account (real)
METHODS OF KEEPING THE BOOKS OF ACCOUNTS
1.
2.

CASH BASIS income is recorded when cash is received

ACCRUAL BASIS income is considered to be earned in the period of sale even if cash has not been received

YEAR-END ADJUSTMENTS
1.

2.

3.
4.

PREPAID / DEFERRED EXPENSES charges or debits recorded in the books for goods or services that are not to be used up or consumed
currently
a. Asset method asset account was originally debited; adjusting entry: Dr. Expense account, Cr. Asset account (recorded at an
amount applicable to the current period); if no adjusting entry is made asset overstated, expense understated, profit overstated
b. Expense method expense account was originally debited; adjusting entry: Dr. Asset account,
Cr. Expense account
(recorded at an amount applicable to the future period)
UNEARNED / DEFFERED INCOME credits recorded in the books for the cash received in advance from customers
a. Liability method liability account was originally credited; adjusting entry: Dr. Liability account,
Cr. Income account
(recorded at an amount applicable to the current period)
b. Income method income account was originally credited; adjusting entry: Dr. Income account,
Cr. Liability account
(recorded at an amount applicable to the future period); if no adjusting entry is made income overstated, liability understated, profit
overstated
ACCRUED / UNPAID EXPENSES expenses incurred but not yet paid; Dr. Expense account, Cr. Liability account; if no adjusting entry is
made understated expense and liability, overstated profit
ACCRUED / UNCOLLECTED INCOME amounts earned but not yet received; Dr. Receivable account, Cr. Income account; if no adjusting
entry is made understated asset and income, understated profit

DEPRECIATION the gradual decrease in value of fixed assets due to use, inadequacy, or obsolescence
NATURE OF DEPRECIATION
1.
2.

PHYSICAL DEPRECIATION occurs from wear and tear while in use and from the action of the weather
FUNCTIONAL DEPRECIATION occurs when a fixed asset is no longer able to provide services

COMPUTATION OF DEPRECIATION
1.
2.
3.

ORIGINAL COST refers to the invoice price less discounts and/or allowances plus the incidental cost
ESTIMATED USEFUL LIFE the accountant has to use or apply his own judgment in estimating the useful life of a fixed asset
SALVAGE OR SCRAP VALUE refers to the estimated value at which the fixed asset can be sold at the end of its useful life

FORMULA:
Depreciation per year = Annual depreciation x Depreciable cost

Depreciable Cost the amount that is spread over the assets useful life as depreciation expense

WORKSHEET a multicolumn paper that may be used to facilitate the preparation of adjusting entries and financial statements
CLOSING ENTRIES entries that transfer the balances of one account to another account, resulting to a zero balance
1.
2.
3.
4.

Dr. Revenue account, Cr. Income summary

Dr. Income summary, Cr. Each expenses
Net profit: Dr. Income summary, Cr. Capital
Net loss: Dr. Capital, Cr. Income summary
Dr. Capital account, Cr. Drawing account

POST-CLOSING TRIAL BALANCE lists permanent accounts and their balances

REVERSING ENTRY a general journal entry made on the first day of the next accounting period
1.
2.
3.
4.

Accrued expense Reversing entry: Dr. Liability account, Cr. Expense account
Accrued revenue Reversing entry: Dr. Income account, Cr. Accounts receivable
Prepaid expense under expense method Reversing entry: Dr. Expense account, Cr. Asset account
Unearned income under income method Reversing entry: Dr. Unearned income account, Cr. Income account

NET ASSET the difference between the total of the agreed values of the assets transferred and the total amount of liabilities
INVENTORY CLASSIFICATION shown under current asset section of an entitys statement of financial position in the order given below
1.
2.
3.

FINISHED GOODS
WORK IN PROCESS
RAW MATERIALS

INVENTORY SYSTEMS
1.
2.

PERIODIC SYSTEM used by the business with low priced high volume nature of merchandise; provides a periodic balance of the inventory
account; newly acquired merchandise is recorded in Purchases account
PERPETUAL SYSTEM used when there are few controllable items in the inventory; stock cards will be kept; provides a continuous record of
merchandise on hand; sold or unsold item is recorded in Merchandise Inventory account

DISCOUNT a deduction from the cost of merchandise bought or acquired

1.

2.

CASH DISCOUNT deducted from the invoice price which is an incentive offered by the seller to its customer if the latter will pay its accounts
in full within the discount period
a. Purchase Discount a cash discount granted by the seller to the buyer; buyers book
b. Sales Discount a cash discount granted by the seller to the buyer; sellers book
TRADE DISCOUNT deductions from the catalog price or list prices granted to customers for the large quantities bought or from the
voluminous purchase made; not recorded in the books of either the buyer or the seller

ALLOWANCE reduction in the invoice price

PURCHASE RETURN involves the transfer of defective goods from the buyer back to the seller or supplier
PURCHASE ALLOWANCE does not require any transfer of goods at all
CREDIT MEMO notifies the buyer that his liability is reduced (seller issues)
DEBIT MEMO the seller debits the customers account due to an erroneous price
FREIGHT IN / TRANSPORTATION IN an account used for recording the freight on merchandise bought by the buyer; an adjunct account, an account
added to another related account)
BUYER

SELLER
FOB destination point
Freight prepaid

FOB shipping point

Freight collect

SALES a revenue account of the seller

SALES, RETURNS AND ALLOWANCES an account used by the seller for the merchandise returned by the buyer
FREIGHT OUT / DELIVERY EXPENSE a sellers operating expense in delivering the goods to the customer
ESTIMATED UNCOLLECTIBLE ACCOUNT Proforma: Dr. Doubtful accounts expense, Cr. Allowance for doubtful accounts
1.
2.

SALES PERCENTAGE METHOD Doubtful accounts expense = Sales x %

RECEIVABLES AS BASE
ADA
a. Percentage of Receivable Doubtful accounts expense = Receivable x % [+debit, -credit]
b. Aging the Receivable Doubtful accounts expense = aging result [+debit, -credit]

end

METHODS IN WRITING OFF CUSTOMERS ACCOUNTS

1.
2.

DIRECT METHOD Dr. Doubtful accounts expense, Cr. Accounts receivable

ALLOWANCE METHOD Dr. Allowance for doubtful account, Cr. Accounts receivable

INVENTORY ADJUSTMENT
1.
2.

To close beginning inventory Dr. Income summary, Cr. Merchandise inventory

To set up inventory end Dr. Merchandise inventory, Cr. Income summary

CLOSING METHOD / DIRECT EXTENSION METHOD

Debit
Credit
Extended to:
Extended to:
Merchandise Beginning inventory
Adjusted trial balance
Income Statement
Merchandise Ending inventory
Statement of Financial Position
Income Statement
OPERATING CYCLE the average length of time that a company uses cash to produce a product or service
CORRECTING ENTRIES entries needed to correct errors
INTERNAL CONTROL sum of policies, procedures, methods, and systems used by an entire workforce
VOUCHER SYSTEM a widely used system of establishing internal control over cash disbursement
1.
2.
3.
4.

Vouchers a document which acknowledges a liability or provides authorization to pay a debt

Journal voucher a kind of voucher where you can make an adjustment to an account
Voucher files
Voucher register takes the place of the purchase journal
Cash register takes the place of the cash disbursement journal and general ledger

PETTY CASH FUND the amount of money set aside by the business to take care of those small payments that are impractical to pay by means of
check

2 METHODS OF HANDLING PETTY CASH FUND

1.
2.

IMPREST SYSTEM all receipts are deposited intact daily; all payments are made by check; no entry to record the expenses, journal entry is
prepared during replenishment
FLUCTUATING OR REVOLVING FUND SYSTEM Dr. Expenses, Cr. Petty cash fund

REPLENISHMENT the custodian requests for cash reimbursement equal to the disbursements made
COMPENSATION paid to employed personnel for the services rendered
WAGES payments made on an hourly, daily, or piecework basis
SALARIES fixed payment for managerial services
BONUS an additional compensation given to an employee
13th month pay = monthly basic salary x

PAYROLL DEDUCTIONS
Withholding taxes
SSS Premium (9.4%)
Employees compensation insurance (ECI)
remitted to SSS
Philippine Health Insurance Program
(PhilHealth)
Pag-IBIG contribution equally shared between
the employee and employer

SHOULDERED BY:
EMPLOYER
EMPLOYEE

(6.04%) treated as business

(3.33%) determined based on basic
expense
salaries including emergency cost
living allowance
(P10 per employee per month)

Equal counterpart contribution

Deductible from gross compensation in the last

payday of each month
2% of the monthly basic compensation not
1% of the monthly basic compensation, P1500
exceeding P5000
and below
2% of the members monthly compensation, more than P1500
NET PAY / TAKE HOME PAY gross compensation less total salary deductions
SPECIAL JOURNAL a book of original entry where only certain / special type of frequent and repetitive transaction is entered
1.
2.
3.
4.

PURCHASES JOURNAL a book where purchases of merchandise, supplies and other assets on account are recorded
SALES JOURNAL a book where all sales of merchandise on credit are recorded; credit sales other than merchandise are entered in the
general journal
CASH RECEIPTS JOURNAL a book where all cash inflows, irrespective of nature, are recorded
CASH DISBURSEMENTS JOURNAL a book where all cash outflows, irrespective of the nature or purpose, are recorded

GENERAL JOURNAL a book where all transactions that do not involve cash receipts/payments and purchases/sales on account are recorded
SUBSIDIARY LEDGER / SPECIAL LEDGER specific groups of similar accounts taken out from the general ledger to become separate books
1.
2.

Accounts Receivable Subsidiary ledger / Customers ledger contains a detailed record for each charge customer; Dr. come from the
sales journal, Cr. come from cash receipts
Accounts payable subsidiary ledger / Suppliers ledger used if a business enterprise has numerous in account transactions with the
suppliers; Dr. come from cash payments, Cr. come from purchases journal

CONTROLLING ACCOUNT / CONTROL ACCOUNT the general ledger account that summarizes the information found in a subsidiary ledger
In the journal, put a check mark in the column for the item already posted.