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    Fundamentals of Accountancy Business and Management 1 11 3 Quarter

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    Paulo Amposta Carpio
    This document provides an example of journalizing, posting, and preparing a trial balance for a service business. It includes sample journal entries recording various business transactions over multiple dates, such as starting capital, purchases, expenses, income, and payments. The examples illustrate debiting and crediting accounts, compound entries, and the accrual basis of accounting.

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    Fundamentals of Accountancy Business and Management 1 11 3 Quarter

    Uploaded by

    Paulo Amposta Carpio
    94 views4 pages
    This document provides an example of journalizing, posting, and preparing a trial balance for a service business. It includes sample journal entries recording various business transactions over multiple dates, such as starting capital, purchases, expenses, income, and payments. The examples illustrate debiting and crediting accounts, compound entries, and the accrual basis of accounting.

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    FABM1 Q3 Week 8 LAS

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    This document provides an example of journalizing, posting, and preparing a trial balance for a service business. It includes sample journal entries recording various business transactions over multiple dates, such as starting capital, purchases, expenses, income, and payments. The examples illustrate debiting and crediting accounts, compound entries, and the accrual basis of accounting.

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    94 views4 pages

    Fundamentals of Accountancy Business and Management 1 11 3 Quarter

    Uploaded by

    Paulo Amposta Carpio
    This document provides an example of journalizing, posting, and preparing a trial balance for a service business. It includes sample journal entries recording various business transactions over multiple dates, such as starting capital, purchases, expenses, income, and payments. The examples illustrate debiting and crediting accounts, compound entries, and the accrual basis of accounting.

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    Fundamentals of Accountancy

    W8 Learning Area
    Quarter
    Business and Management 1
    3rd Quarter
    Grade Level
    Date
    11

    I. LESSON TITLE Accounting Cycle - Journalizing, Posting, and Preparation of a Trial Balance
    II. MOST ESSENTIAL The learners
    LEARNING a. record transactions of a service business in the general journal (ABM_FABM11-
    COMPETENCIES (MELCs) IVa-d -30)
    b. post transactions in the ledger (ABM_FABM11-IVa-d -31)
    c. prepare a trial balance (ABM_FABM11-IVa-d -32)
    III. CONTENT/CORE CONTENT The Accounting Cycle of a Service Business
    Ref: Teachers Guide FABM, pages 97-118/ FABM1 Textbook, pages 70-124/ Quexhub PERC
    Learning Portal
    Suggested
    IV. LEARNING PHASES Learning Activities
    Timeframe
    A. Introduction 15 mins DAY 1
    Panimula Good day! Welcome to another week of learning. By the end
    of our topic, you should be able to:
    1. describe the recording transactions in a general journal,
    2. record transactions of a service business in the general journal,
    3. post transactions in the ledger,
    4. prepare a trial balance, and
    5. exhibit the ability to stay detail oriented.

    What comes into your mind when you read the word record? The word record is
    commonly used when you need something to put into writing. For example, the school will
    provide you a record of your performance after the end of the semester. That record is
    called the report card.

    Recording business transactions also known as journalizing is the process of entering a


    business transaction in the form of an accounting entry in the “journal” or the so-called
    “book of original entry”. You may go back to week 6 and 7 of your LEAP to review
    discussion in analyzing business transactions.

    B. Development 135 mins To start our lesson, below is the Journal Entry format.
    Pagpapaunlad
    JOURNA
    L
    Date Particulars Folio Debit Credit
    Business transactions are chronologically recorded in the journal. The particular column is
    where you will enter accounts that will be affected by the transactions. By this time, it is
    expected that you already knew when to debit and credit an account. Debiting and crediting
    an account is a result of an increase or decrease in its value.

    Let us study the proper way of journalizing business transactions. Practice thorough
    analysis in every situation.

    On January 2, 2017, Mr. Juan dela Cruz started Automoto Repair Shop with a starting
    capital of 20,000. This transaction is evidenced by a check issued by Mr. dela Cruz to the
    name of the business.
    The transaction resulted in an increase in cash and dela Cruz capital, hence:

    Date Particulars Debit Credit


    January 02 Cash (Asset increased) 20,000
    dela Cruz, Capital (Equity increased) 20,000
    Journal entries require a proper way of entering business transactions. All credit entries
    must be indented, this will simply signifies that credits are on the right side of an equation.
    Below are other business transactions of Automoto Repair Shop.
    January 3, Borrowed ₱10,000 payable in 30 days
    Date Particulars Debit Credit
    January 03 Cash (Asset increased) 10,000
    Loan Payable (Liability increased) 10,000
    For illustration purposes an open and closed parentheses on the effect of business
    transactions was provided.
    January 5, Purchased supplies for the amount of ₱2,500 in cash
    Date Particulars Debit Credit
    January 05 Supplies (Asset increased) 2,500
    Cash (Asset decreased) 2,500
    January 6, Purchased service equipment on account for an amount of ₱7,800 payable in 10 days
    Date Particulars Debit Credit
    January 06 Service Equipment (Asset increased) 7,800
    Accounts Payable (Liability increased) 7,800
    January 9, Purchased tables, chairs and other fixtures amounting to ₱9,500. The company only paid half of it and the balance will be paid
    after 15 days
    Date Particulars Debit Credit
    January 09 Furniture and Fixtures (Asset increased) 9,500
    Cash (Asset decreased) 4,750
    Accounts Payable (Liability increased) 4,750
    The entries above resulted in a compound journal entry, it involves two more accounts. In our example
    the credit entries require an entry to cash for the down payment and an entry to accounts payable for a
    succeeding payment.
    January 12, Paid the service equipment acquired last January 6
    Date Particulars Debit Credit
    January 12 Accounts Payable (Liability decreased) 7,800
    Cash (Asset decreased) 7,800
    January 17, Received cash of ₱500, the amount left to be paid for ₱2,500 is to be collected after 10 days for the services rendered
    Date Particulars Debit Credit
    January 17 Cash (Asset increased) 500
    Accounts Receivable (Asset increased) 2,500
    Service Income (Equity increased) 3,000
    The full amount of services will be recorded regardless of the mode of payment following
    the accrual basis of accounting.
    January 24, Paid the balance last January 9
    Date Particulars Debit Credit
    January 24 Accounts Payable (Liability decreased) 4,750
    Cash (Asset decreased) 4,750
    January 27 Received the payment for January 17 services
    Date Particulars Debit Credit
    January 27 Cash (Asset increased) 2,500
    Accounts Receivables (Asset decreased) 2,500
    January 31, Paid loan last January 3
    Date Particulars Debit Credit
    January 31 Loan Payable (Liability decreased) 10,000
    Cash (Asset decreased) 10,000

    To give you more detailed discussion on journalizing, refer to your textbook on pages 79-
    82.

    We will move forward on the 3rd step of the accounting cycle. Business transactions may
    increase or decrease the value of the account. You also learned that each account has
    normal balances. To generate the normal balance or the ending balance of an account we
    need, to summarize all transactions that affect a particular account. Summarizing
    transactions can be done through posting.

    What is Posting?
    Posting refers to the procedure of transferring information in the journal to the ledger
    accounts. It is for this reason that a ledger is the so-called “book of final entry”. In
    journalizing we have used a journal; in posting we will be using a ledger.
    To give you a clear view how a ledger looks like, open your textbook on pages 84 to 85.
    Ledger looks like a big letter T. The use of chart of accounts will help you open the
    accounts in the general ledger. When you say opening the account in the general ledger you
    will name a particular ledger to a particular account. Take a look at the diagram below; see
    the process of posting from a journal to general ledger.

    For January 2 transactions


    Cash was affected; it was
    increased due to investment of
    the owner, same with the
    capital account

    For January 3 transaction Cash was


    again affected, it will posted on the
    same ledger that we created for Jan 2
    transaction and a new ledger to be
    opened for Loans payable.

    The posting will be done up to the last entry in the general journal.
    Below is the completed posting to the general ledger of Automoto Repair Shop.

    The presentation of accounts is arranged in the following order: asset, liability, equity,
    revenue, expenses.

    The difference between total debit and total credit will become the ending balance of an
    account depending on its normal balances. Accounts with zero balances are considered
    closed accounts and they will not be included in the trial balance. You are now ready for the
    4th step of the accounting cycle, the preparation of a trial balance.
    The trial balance is a list of general ledger accounts and their ending balances. There are
    three types of Trial balance.
    1. Unadjusted trial balance – this is prepared before adjusting entries are made.
    2. Adjusted trial balance – prepared after adjusting entries
    3. Post-closing trial balance - prepared after the closing entries. Steps on
    how to prepare a trial balance
    1. Identify accounts that have ending balances.
    2. The heading of the trial balance will consist of the following:
    ● Name of the business
    ● Title of the report
    ● Date of the report
    3. Accounts in the trial balance
    must be listed in the following
    order:
    ● Assets
    ● Liabilities
    ● Equity
    ● Income
    ● Expenses

    ACTIVITY 1 – Journalizing, Posting, and Preparing Trial Balance


    I hope you learned a lot about journalizing, posting, and preparing trial balance. Now, ask a
    help from a friend or any household member to answer Exercises 8-10 on page 128 in your
    textbook. Write your answer in your accounting journal.

    C. Engagement 60 mins DAY 2


    Good day! Today you will pretend that you are hired as a bookkeeper of Minesgate
    Pakikipagpalihan Computer Repair. You are tasked to do the activity below.
    ACTIVITY 2 – Accounting Cycle
    1. create a chart of account
    2. journalize transactions provided in the Leap week 7
    3. post to ledger all the entries from your journal
    4. prepare a trial balance
    Write all your answers in your accounting journal.
    D. Assimilation 10mins ACTIVITY 3 – Its importance
    Paglalapat Using your accounting journal, write down the importance of journalizing, posting, and preparation of
    trial balance in the business.

    V. ASSESSMENT 10 mins To check your understanding


    (Learning Activity Sheets for Enrichment,
    Remediation or Assessment to be given on
    Answer Exercises 8-7 on page 125 in your textbook. Write your answer in your accounting
    Weeks 3 and 6) journal.
    VI. REFLECTION 10 mins In your accounting journal, write your personal insights about the lesson using the prompts below.
    I understand that .
    I realize that .
    I need to learn more about .

    Prepared by: Eva C. Topacio, Jennifer B. Fernandez, SDO Checked by: Dr. Josephine P. Canlas, Adora G. del Mundo, Cherie
    Imus City L. Logatoc

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