WORKSHOP ON BOOKKEEPING & ACCOUNTING FOR NON-ACCOUNTANTS

For Barangay Santiago:

Tentative Date: December 1, 2018
Venue: TBA (if allowed at HED SMC)
Facilitator: College of Accountancy (selected students)

Action Plan:
1. Selected students from the college of accountancy who have great knowledge about basic accounting
will be the speaker for the workshop and other selected students will act as facilitator who will
help/guide the participants in answering example transactions.
2. Handouts will also be provided.
3. After the workshop the college officers together with their moderator and dean will choose 1
participant who will attend the seminar on bookkeeping in MSU-Naawan.

Topics:
 Basic accounting terms
 Accounting Process
o Journalizing
o Posting
o Trial Balance
o Preparing Financial Statements

Bookkeeping Seminar at MSU-Naawan

 P200.00 good for 3 classes/sessions
 Class Schedules: Wednesday, Saturday, Sunday
 NCIII Bookkeeping Exam: December 15, 2018
o Requirements:
 Form
 Pictures: 3pcs. Colored passport size, white color background with collar
 NSO Birth certificate
 P500.00 Examination Fee (for Government employees – Certificate of Employment)
WHAT IS ACCOUNTING?
o ACCOUNTING is the language of business.
o ACCOUNTING is the art of recording, classifying, summarizing, in a significant manner, in
terms of money, transactions and events, which are in part at least of a financial character, and
interpreting the results thereof.

WHAT IS BOOKKEEPING?
o BOOKKEEPING involves the recording, storing and retrieving of financial transactions for a
company, non-profit organization, individual, etc.

o Common financial transactions and tasks that are involved in bookkeeping include:
 Billing for goods sold or services provided to clients.
 Recording receipts from customers.
 Verifying and recording invoices from suppliers.
 Paying suppliers.
 Processing employees pay and the related governmental report.
 Monitoring individual accounts receivable.
 Recording depreciation and other adjusting entries.
 Providing financial reports.

DEFINITIONS OF TERMS
TRANSACTIONS - an event or occurrence that is financial in nature.
 Example: Invested P32,000 cash and equipment valued at P14,000 in the business.
ASSETS – properties or resources owned by an organization.
 Example:
 Cash
 Account receivable
 Notes receivable
 Supplies
 Land
 Building
 Equipment
 Furniture and Fixtures
 Investments
LIABILITIES – debts and obligations of the organization.
 Example:
 Accounts Payable
 Notes Payable
 Salaries Payable
 Utilities Payable
CAPITAL/OWNER’S EQUITY – residual interest in the assets of an entity that remains after deducting its
liabilities. Owners’ claim or owner’s equity on the assets owned by the business.
 Example:
 Revenue, Expense, Drawing

ASSETS = LIABILITIES + CAPITAL

CAPITAL = ASSETS – LIABILITIES

REVENUE – income earned from performing services or sales. It increases owner’s equity
 Example:
 Service revenue
 sales
EXPENSES – cost incurred in operating a business. It decreases owner’s equity.
 Example:
 Salaries expense
 Representation expense
 Supplies expense
 Transportation expense
 Utilities expense
 Rent and Rate expense
  Miscellaneous expense
PROFIT - excess of revenue over expenses.
LOSS – excess of expenses over revenue.

ACCOUNTING CYCLES
1. ANALYSIS OF TRANSACTION
2. RECORDING IN THE JOURNAL
3. POSTING TO THE LEDGER
4. TRIAL BALANCE PREPARATION
5. PREPARING FINANCIAL STATEMENTS

1st Accounting Process: JOURNALIZING TRANSACTIONS

 BOOK OF ACCOUNTS are records that are used and kept by the business in storing all of the
accounting data.
 Two Sets of Books:
1. JOURNAL - the book of original entry, because it is were transactions are recorded for the first
time.
 General Journal
Year Particulars F Debit Credit
Month Day Debit Item                
Credit Item                
               
 F (folio) shows the number of account in a ledger or page of a ledger to which it
was transferred.
 Debit Column – this is a money column showing the peso amount of the value
received in a transaction.
 Credit Column – this is the money column showing the peso amount of the value
parted with in a transaction.
 Special Journal.
2. LEDGER – the book of final entry, because it is in this book where transactions that were recorded
in the journal are transferred for final recording.
 General Ledger
Year Particulars F Debit Year Particulars F Credit



 Subsidiary Ledger
 RECORDING PROCESS
- RECORDING is the 1st phase of accounting. Involves the writing down of business transactions in
a systematic manner and in order of their occurrence in the book of original entry (Journal.)
- JOURNALIZING is the act of recording business transactions in the Journal.
- JOURNAL ENTRY is the entry made in the journal. It can be a
i. SIMPLE or COMPOUND.
SIMPLE JOURNAL ENTRY is one that has one debit item with a debit amount and
one with credit item with a credit amount.
Year Particulars F Debit Credit
Month Day Debit Item                
Credit Item                
               

b. COMPOUND JOURNAL ENTRY is one that may have one debit and two or more credit
items; or two or more debit items and one credit item; or may have two or more on both
sides.
Year Particulars F Debit Credit
Month Day Debit Item                
Debit Item                
Credit Item                
Credit Item                
               
Explanation of the nature of transaction
2nd Accounting Process: POSTING TO THE LEDGER
 After the transaction has been recorded in the Journal, the entries in the journal will then be transferred
to another book called the LEDGER for final recording.
 POSTING is the process of transferring entries from the journal to the ledger. It simply means updating
the ledger accounts due to the effects of the transactions recorded in the journal.
 CLASSIFYING the second phase of accounting is a sorting process which means putting each value in
a certain place according to its kind, class or nature.

GENERAL JOURNAL Page 1

2017 Particulars F Debit Credit
March 1 Cash in bank L -1 8 5 0 0 0 0  
S. Santos, Capital GL
10
-         8 5 0 0 0 0 
Initial investment                
GENERAL LEDGER
Cash in Bank Account No. 1
2017 Particulars F Debit Year Particulars F Credit
March 1 JE 850,000
-
1

S. Santos, Capital Account No. 10

2017 Particulars F Debit 2017 Particulars F Credit
March 1 JE - 1 850,000

 FOOTING is the process of adding each of the two amount columns of an account or item in the
general ledger and finding their balances thereof.
o If an account is a debit balance (debit total is bigger than the credit total), the amount of
difference is placed on the “particular” column of the debit side.
o If the account, on the other hand is a credit balance (credit total is bigger than debit total), the
amount of the difference is placed on the “particular” column of the credit side.
o If there is only one entry in any side of an account in the ledger, no footing is done and the entry
is left “as is”.
2017 Particulars F Debit 2017 Particulars F Credit
March 1 Investment JE-1 850,000 March 1 Laundry Equipment JE-1 150,000
17 Bank Loan JE-2 100,000 10 Taxes and Licenses JE-1 4,000
21 Partial Collection JE-2 45,0000 12 Withdrawal JE-1 10,000
17 Interest Payment JE-1 1,000
25 Partial payment JE-2 60,000
30 Various Expense JE-2 27,000
743,000 995,000 252,000

3rd Accounting Process: TRIAL BALANCE

 Merely copying carefully of what has been footed in the ledger.
 Headings of a Trial Balance
o Name of the business or proprietor
o Title of the report
o Period covered by the report
Davao Laundry Services
Trial Balance
a. arch 2017
Account Titles F Debit Credit
Cash in bank 1 P 743,000
Accounts Receivable 2 35,000
Laundry Supplier Inventory 4 90,000
Laundry Equipment 5 150,000
Notes payable 7 P100,000
Accounts Payable 9 30,000
S. Santos, Capital 10 850,000
S. Santos, Drawing 11 10,000
Laundry Income 13 80,000
Salaries Expense 16 10,000
Rent Expense 17 5,000
Utilities Expense 18 12,000
Taxes and Licenses 20 4,000
 Interest Expense 22 1,000
Total P 1,060,000 P 1,060,000

4th Accounting Process: END-OF-THE PERIOD ADJUSTMENTS

5th Accounting Process: WORKSHEETS
 The preparation of worksheet is optional.
 It is a columnar sheet used as a tool or bridge connecting the Trial Balance and Financial Statements.
 Purpose: To determine the performance or results of the operation and financial condition of the
enterprise in a fastly manner even before adjusting and closing entries can be recorded in the General
Journal.

6th Accounting Process: FINANCIAL STATEMENTS