Journalize Transaction

COMPETENCY BASED LEARNING MATERIAL
Sector: HEALTH, SOCIAL AND OTHER COMMUNITY

DEVELOPMENT SERVICES SECTOR
Qualification Title: BOOKKEEPING NC III
Unit of Competency: JOURNALIZE TRANSACTION
Module Title: JOURNALIZING TRANSACTION
Developed by:
ROGEN S. GASCON
BAROBO NATIONAL HIGH SCHOOL
Barobo, Surigao del Sur
Department of Education
Division of Surigao del Sur
Date Developed: Document No.

CBLM on MAY 2017 Issued by:
Bookkeeping Date Revised:
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Developed by: P a g e |1
JOURNALIZING ROGEN S. GASCON
TRANSACTION Revision # 00
Introduction
In this unit, we introduce you to the essential skills and concepts of

bookkeeping and accounting. To start with you will gain some practical
skills in numeracy including learning about rearranging simple equations as
well as some important calculator skills. Afterwards, you will gain knowledge
and understanding of the fundamental principles that underpin
bookkeeping and accounting.
In all activities (whether business activities or non-business activities)

and in all organizations (whether business organizations like a
manufacturing entity or trading entity or non-business organizations like
schools, colleges, hospitals, libraries, clubs, temples, political parties) which
require money and other economic resources, accounting is required to
account for these resources. In other words, wherever money is involved,
accounting is required to account for it. Accounting is often called the
language of business. The basic function of any language is to serve as a
means of communication. Accounting also serves this function.
Bookkeeping includes recording of journal, posting in ledgers and

balancing of accounts. All the records before the preparation of trail balance
is the whole subject matter of book-keeping. Thus, book-keeping many be
defined as the science and art of recording transactions in money or
money’s worth so accurately and systematically, in a certain set of books,
regularly that the true state of businessman’s affairs can be correctly
ascertained. Here it is important to note that only those transactions related
to business are recorded which can be expressed in terms of money.

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LEARNING OUTCOME # 1
PREPARE CHART OF ACCOUNTS
Contents:
 Definition and functions of Bookkeeping and Accounting.
 Types of business organization
 Types of business activities
 Basic Accounting Equation
 Basic Financial Statement
Assessment Criteria
1. List of asset, liability, equity, income, and expense account titles are
prepared in accordance with Generally Accepted Accounting
Principles.
2. Chart of Accounts is coded according to industry practice
CONDITIONS:
The students/trainees must be provided with the following:
 Calculator
 Paper
 Learning Materials
 Pencil
 Eraser
ASSESSMENT METHODS:
 Written test
 Practical/performance test
 Interview

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LEARNING EXPERIENCE
Learning Outcome 1
PREPARE OF CHARTS OF ACCOUNT
LEARNING ACTIVITIES SPECIAL INSTRUCTION
1.Read Information 1.1-1

Definition of Accounting and Bookkeeping
2.Answer Self Check 1.1-1

Compare to Answer Key 1.1-1
3.Read Information Sheet 1.1-2
Types of Business Transaction Go through the Information
4. Answer Self check 1.1-2 Sheet then proceed to answer
Compare to Answer Key 1.1-2 Self check and compare your
5. Read Information1.1-3 answer with the answer key
Business Activities
6. Answer Self Check 1.1-3
7. Read Information1.1-4
Basic Accounting Equation
9. Read Information 1.1-5
Basic Financial Statement
11. Perform Task Sheet 1.1-6 Performing the task sheet on
Prepare Charts of Accounts Charts of Accounts
12. Compare performance to the After completing all the

performance criteria checklist 1.1-6 requirements satisfactorily of
this LO, you may proceed to
the next LO.

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INFORMATION SHEET 1.1-1
Definition of Bookkeeping and Accounting
Learning Objectives:
After reading this INFORMATION SHEET, YOU MUST be able to define and
explain the function of Accounting and Bookkeeping.
Bookkeeping - systematic recording financial aspects of the business

transactions in appropriate books of accounts.
The term bookkeeping refers to the recording of financial
transactions (accurate, up-to-date business records).
These transactions may include: sales, income, receipts
and payments by an organization. This practice is usually
performed by a bookkeeper.
Accounting - It is a service activity the purpose of which is to provide
quantitative information, primarily financial in nature,
about economic entities that is to be useful in making an
economic decision.
To distinguish accounting form bookkeeping, we may basically define

accounting as the art of recording, classifying and summarizing in a
significant manner and in terms of money, transaction and events which
are, in part at least, of a financial character, and interpreting the results
thereof: while bookkeeping is the recording of business transaction to its
respective journals and ledgers in a prescribe manner
Accounting Concept
The primary objective of accounting is to furnish the various

interested parties with quantitative information about the financial affairs of
a business enterprise. The basic requirements needed by the parties are the
following:

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1. The financial condition of the business – this includes the assets
and liabilities, and the status of the owner’s interest at a given
point of time.
2. The result of operations – this refers to the result of operating
activities during the given period which my result in an income or a
loss.
3. The financial and investment activities which are responsible for
the changes in the financial resources of the business- thus are the
sources and applications of funds during the period.
Function of Accounting
1. Recording – the process of putting into writing the financial activities

of the enterprise chronologically.
2. Classifying – the process of grouping into specific classification

similar or like transaction.
3. Summarizing- the process of preparing financial reports

(interchangeably used to mean “financial statements”) from the
recorded and classified transactions and events of the enterprise.
4. Interpreting – the process that supplies answers to question about

the profitability, stability, solvency, and liquidity of an enterprise.

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SELF CHECK 1.1-1
I. ANSWER THE FOLLOWING:
1. What is bookkeeping?
2. What is accounting?
3. What is the difference between Bookkeeping and

accounting?
4. What is the primary objective of accounting?
5. Give some entities who contributed to develop the

principles of accounting?
6. What are the four functions of Accounting and their

meaning?

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ANSWER KEY 1.1-1
1. Bookkeeping is a systematic recording financial aspects of the business

transactions in appropriate books of accounts.
2. Accounting - it is a systematic process of identifying, recording,

measuring, classifying, verifying, summarizing, interpreting and
communicating financial information.
3. Accounting as the art of recording, classifying and summarizing in a

significant manner and in terms of money, transaction and events which
are, in part at least, of a financial character, and interpreting the results
thereof: while bookkeeping is the recording of business transaction to its
respective journals and ledgers in a prescribe manner.
4. The primary objective of accounting is to furnish the various

interested parties with quantitative information about the financial
affairs of a business enterprise.
5. Generally Accepted Accounting Principles (GAAP), International

Accounting Standards (IAS), Financial Reporting Standard (FRS)
American Institute of Certified Public Accountings (AICPA) American
Accounting Association (AAA), Philippine Institute of Certified Public
Accountant (PICPA), and the Securities and Exchange Commission
(SEC).
6. Recording – the process of putting into writing the financial activities of

the enterprise chronologically.
Classifying – the process of grouping into specific classification similar
or like transaction.
Summarizing- the process of preparing financial reports
(interchangeably used to mean “financial statements”) from the
recorded and classified transactions and events of the enterprise.
Interpreting – the process that supplies answers to question about the
profitability, stability, solvency, and liquidity of an enterprise

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TYPES OF BUSINESS ORGANIZATION
After you read this information sheet, you must be able to:
1. Acquaint the type of business organization in our society.
Sole Proprietorship – A business structure in which an individual and

his/her company are considered a single entity for tax
and liability purposes. A sole proprietorship is a
company which is not registered with the state as a
limited liability company or corporation. The owner does
not pay income tax separately for the company, but
he/she reports business income or losses on his/her
individual income tax return. The owner is inseparable
from the sole proprietorship, so he/she is liable for any
business debts.
Partnership – the capital of the business is owned or provided by two or
more persons called partners who will agree among themselves
on how profit and loss be divided. One of the partners may
take charge in managing the affair of the business or they may
hire another person to do so.
Corporation – a business organization formed by a group of people, and it

has rights and liabilities separate from those of the individuals
involved. It may be a non-profit organization engaged in
activities for the public good; a municipal corporation, such as
a city or town; or a private corporation (the subject of this
article), which has been organized to make a profit.

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The powers of the corporation are vested upon by a governing body
called “Board of Directors” who formulates its policies and the president
executes the said policies.
Cooperatives – it operates similar to corporation. It has its Board of

Directors who are selected from among its member. However,
while number of voting shares in a corporation is based on
shareholding, in a cooperative, it is a one man, one vote basis.
Moreover, patronage refund is given to cooperatives member
who patronized their business activities.

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Developed by: P a g e | 10
SELF CHECK 1.1-2
Instruction: On each space provided, indicate the letter of with the given
word/words that fit with the given statement.
_______________ 1. Owner of the sole proprietorship business.

_______________ 2. Business owned by two or more person.
_______________ 3. A company which is not registered with the state as a
limited liability company or corporation.
_______________ 4. Governing body of the corporation.
_______________ 5. One man one votes basis
Possible answer:
a. Board of Directors
b. Proprietor
c. Partnership
d. Cooperatives
e. Sole proprietorship

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Answer Key 1.1-2
1. B
2. C
3. E
4. A
5. D

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TYPES OF BUSINESS ACTIVITIES
1. Provide with some insights about the business activities in local
society.
Manufacturing concern - is the production of merchandise for use or sale
using labor and machines, tools, chemical and biological processing,
or formulation. The term may refer to a range of human activity, from
handicraft to high tech, but is most commonly applied to industrial
production, in which raw materials are transformed into finished
goods on a large scale.

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Services concern – it is a type of business that rendered services. A
business that is classified as service includes anything
that does not manufacture or mine
Trading Concern - Carrying on trade or commerce; engaged in trade; as, a

trading company. It is a value added function of the
economic process of a product finding its market,
where specific risks are to be borne by the trader,
affecting the assets

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SELF CHECK 1.1-3
1. Types of business activities that rendered services?
2. Three types of business activities?
3. Types of business activity engaged in trade.
4. Types of business activity that produce another products to sell

in the market?

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ANSWER KEY 1.1-3
1. SERVICES CONCERN
2. MANUFACTURING, SERVICE AND TRADING
3. TRADING
4. MANUFACTURING

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After you read this information sheet, you must be able to develop the
analytical ability in the recording process and the accounting equation used
for recording in the business.
Introduction to the Accounting Equation
From the large, multi-national corporation down to the corner beauty salon,
every business transaction will have an effect on a company's financial
position. The financial position of a company is measured by the following
items:
1. Assets (what it owns)

2. Liabilities (what it owes to others)
3. Owner's Equity (the difference between assets and liabilities)
The accounting equation (or basic accounting equation) offers us a simple

way to understand how these three amounts relate to each other. The
accounting equation for a sole proprietorship is:
Assets are a company's resources—things the company owns. Examples of

assets include cash, accounts receivable, inventory, prepaid insurance,
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investments, land, buildings, equipment, and goodwill. From the accounting
equation, we see that the amount of assets must equal the combined
amount of liabilities plus owner's (or stockholders') equity.
Debt – is an amount of money owned or borrowed by a person or customer

from the business.
Debtor – is the person or customer who owed or borrowed money from the
business.
Liabilities are a company's obligations—amounts the company owes.

Examples of liabilities include notes or loans payable, accounts
payable, salaries and wages payable, interest payable, and income
taxes payable (if the company is a regular corporation). Liabilities
can be viewed in two way
(1) as claims by creditors against the company's assets, and

(2) a source—along with owner or stockholder equity—of the company's
assets.
Credit – is an amount of money lend by a person to the business
Creditor – is the person who lends money to the business.
Owner's equity or stockholders' equity – the interest of the owners in an

enterprise, which is excess of an enterprises asset over its liabilities.
In layman’s language, capital or owner’s equity denotes an amount of

money or value of property put by the proprietor into business to start with
Its operation which is referred to as “Initial Investment” or “Initial Capital”. If
he makes additional contribution to increase his capital, it is referred to as
“Additional Capital or Additional Investment”. Capital is synonyms to
“Proprietorship. Capital can also be the between Asset and Liabilities.
Hence, it is called as Owner’s Equity or Proprietary interest” or Net Worth”.
Income or revenue- revenue represents gross increase in assets or gross

decreases I liabilities recognized and measured in conformity with generally
accepted accounting principles that result s from those types of non-profit-
directed activities of an enterprise that can change owner’s equity.
Expenses – are gross decreases in asset or gross increases in liability with
generally accepted accounting principles that result from those types of
profit-directed activities of an enterprise that can change owner’s equity.
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Net Income (Net loss) – the excess of revenues over expenses in called “net
income “if the expenses exceeds the revenues a “net loss” The relationship
among revenue, expenses, and net income or (net loss) is expressed in the
following equation:
REVENUE – EXPENSES = NET INCOME (NET LOSS)

SELF CHECK 1.1-4
1. WHAT IS THE COMPANY’S RESOURCES AND THINGS THAT

BUSINESS OWNS?
2. EXCESS OF REVENUE OVER NETXPENSES?
3. WHAT IS THE PRIMARY MOTIVE OF A PERSON ENGAGED IN

BUSINESS?
4. AMOUNT OF MONEY OR VALUE OF PROPERTY PUT BY THE

PROPRIETOR INTO BUSINESS TO START WITH ITS OPERATION?
5. OWNER’S EQUITY IS ALSO CALLED?

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ANSWER KEY 1.1-4
1. ASSET
2. NET INCOME
3. TO GAIN PROFIT
4. INITIAL CAPITAL
5. NET WORTH

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BASIC FINANCIAL STATEMENTS
After you read this INFORMATION SHEET, you must be able to:
1. Acquaint the Financial Statement in accordance with GAAP.
The reports that the accountant usually prepares are called “Financial
Statement”. Financial statement are the means by which the information
accumulated and processed in financial accounting are periodically
communicated to the users. They are designed to serve the variety users
particularly owners and creditors. These are often called the “end products
of accounting process” because several steps and procedures are applied
and followed before the completion. These are four basic financial
statements, namely,

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Balance Sheet - statement of financial position at a given point in time. It
represents an indication in conformity with (GAAP) Generally Accepting
Accounting Principles of the financial status of the enterprise. It consist of
(3) three sections which are Asset section, Liability section, Capital or
Owner’s Equity section or Net Worth. These asset, liabilities and capital are
called “accounting values”. The claims of both creditors and owner over the
assets of the business are called Equities, hence, Liabilities and Capital are
considered equities of the business.
Income Statement - Presents the results of the business operations during

a period of time, such as one year. It shows the revenue, expenses, gains,
losses and net income (net loss) recognized during the period and there by
presents an indication in conformity with GAAP of the results of the
enterprises profit directed activities during the period.
Statement of Retained Earnings – presents net income (as shown in

income statement) and item such as Dividends, the accumulated profit of
the business known as “Retained Earnings” which is applied in a corporate
form of business organization and adjustment of the net income of prior
periods.
Statement of Cash Flows – the financial statements which shows and

explains in details the changes in cash position of the business during the
period. In other words, it shows the sources and uses of cash.
An accounting period can be period of:
1 month - where financial statement are prepared at the end of every

month. We call this on a “monthly basis”. This is the shortest
accounting period.
3 months - where financial statements are prepared at the end of every
three months. We call this quarterly basis.
6 months - where financial statements are prepared at the end of six

months. We call this “Semi-annual Basis”

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12 months - where financial statements are prepared at the end of every
twelve months. We call this on an “Annual or Yearly Basis”.
This is the longest accounting period.
The length of an accounting period chosen depends on the need of

the proprietor for financial information about his business. Most often,
however, the business adopts an accounting period of one year.
The owner has (2) two annual accounting periods to choose from as
far as periodic reporting of financial statements are concerned. These are:
Calendar Year - the accounting period will begin on January 1, and will
end on December 31 of the same year.
Fiscal Year - the accounting period will begin on the first day of any
month of the year except January and will end on the last
day of the twelfth month completing the one year period.
SELF CHECK 1.1-5
1. Financial Statement which shows financial position at a given

point in time?
2. The accounting period will begin on January 1, and will end on

December 31 of the same year?
3. Where financial statements are prepared at the end of six months.

We call this “Semi-annual Basis”.
4. What are the two annual accounting period?
5. The financial statements which shows and explains in details the

changes in cash position of the business during the period.

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ANSWER KEY 1.1-5
1. BALANCE SHEET
2. CALENDAY YEAR
3. 6 MONTHS
4. CALENDAR AND FISCAL YEAR
5. STATEMENT OF CASH FLOWS

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CHARTS OF ACCOUNT
1. Acquaint with the proper use of journals.
2. Prepare chart of account
What is charts of account?

When transaction are recorded in the general journal, account tittles
are being used. A list of accounts titles are prepared beforehand to guide
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bookkeeper and accountant of what specific titles to be used in describing
and exchanges of values in a transaction. This list of account titles is called
“Charts of account”
Shown below is the chart of accounts of Davao Laundry Shop, a
laundry business that is owned and managed by Mr. Severo Santos:
DAVAO LAUNDRY SHOP

Charts of Accounts
ASSET INCOME
Page Account Page Account
No. No. No. No.
1 - 111 cash 18 -441 Laundry

Income
2 - 112 Accounts Receivable
3 - Allowance for Bad debts
EXPENSES
4 -113 Unused Office Supplies 19 -551 Taxes and Licenses

5 -114 Unused Laundry Supplies 20 -552 Light and Water
6 -115 Laundry Equipment 21 - 553 Repair and Maint.
7 -115a Accumulated Depreciation 22 - 554 Salaries and Wages
Laundry Equipment 23 -555 Office Supplies
8 -116 Delivery Equipment 24 -556 Laundry Supplies Used
9 -116a Accumulated Depreciation 25 -557 Bad debts
Delivery Equipment 26 -558 Depreciation
10 -117 Furniture and Fixtures 27 -559 Rent Expense
11 -117a Accumulated Depreciation 28 -560 Gas and Oil

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Furniture and Fixtures
LIABILITIES
12 -221 Accounts Payable

13 -222 Accrued Rental
14 -223 Notes Payable
CAPITAL
15 -331 Severo Santos, Capital

16 -332 Severo Santos, drawing
17 -333 Income and Expense Summary

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TASK SHEET 1.1- 6
Title: Journalizing Transaction
Performance Objective: Given the supplies and materials, you

must be able to Prepare Charts of Accounts
according to industry practice
Supplies/Materials : Paper ,Pencil, Columnar sheet
Equipment : calculator
Steps/Procedure:
 Find the appropriate debit and credit account
 Use the T-accounts
Assessment Method: Portfolio with performance criteria checklist

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Performance Criteria Checklist 1.1- 6
CRITERIA
YES NO
Did you….
1. Prepare charts of account
2. Properly apply in accordance with GAAP
3. Use correct accounting titles

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LEARNING OUTCOME # 2
ANALYZE DOCUMENTS
ASSESSMENT CRITERIA:
1. Documents are gathered, checked and verified in accordance with
verification and validation processes.
2. Account titles are selected in accordance with standard selection
processes.
CONTENTS:
 Types of Business Documents
 Account Title Selection
CONDITIONS:
The students/trainees must be provided with the following:
 Calculator
 Paper
 Pencil
 Eraser
 Sample Business Documents
METHODOLOGIES:
 Group discussion
 Interaction
 Lecture
 Practical exercises
ASSESSMENT METHODS:
 Written test
 Interview

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LEARNING EXPERIENCE
Learning Outcome 2
ANALYZE DOCUMENTS
SPECIAL INSTRUCTIONS
LEARNING ACTIVITIES
If you already finished those

1.Read Information 1.2-1 information’s then you can
Types of Business Documents proceed to the Self checks
2.Answer Self Check 1.2-1 and compare your answer in
Compare to Answer Key 1.2-1 the answer key.
3.Read Information Sheet 1.2-2
Account Titles Selection
4. Answer Self check 1.2-2

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INFORMATION 1.2-1
TYPES OF BUSINESS DOCUMENTS

After you read this information sheet, you must be able to identify the types
of business documents.
The records that are used and kept by the business in storing all of
the accounting data are called” Books of Accounts”. These books are with
ready or prepared design to fit the need of the business and also to provide
convenience for the accountants in pursuing the primary objective of
accounting which is communication through the financial statements.
There are two sets of books that are used by the business. They are
the Book of Original Entry and the Book of Final Entry. The book of original
entry is called “Journal” which is of two kinds; GENERAL JOURNAL” and
“SPECIAL JOURNAL”. This is called book of original entry because it is in
this book where transaction are recorded for the first time. The book of final
entry is called a “Ledger” which is also of two kinds: “GENERAL LEDGER”
and the “Subsidiary Ledger”. This is called book of final entry because it is
in this book where transactions that were recorded in the journal are
transferred for final recording. Special journals and subsidiary ledgers are
discussed in the succeeding chapters.
GENERAL JOURNAL
A General Journal can be of a “loose-leaf” or “book bound form.it has
the following columnar headings:
Date Column - shows the date when the transaction took place.
Particulars - shows the item or the accounts debited and
credited as a result of a transaction analysis as well
as a brief or concise explanation of what the
transaction is about.
Folio - shows the number of an account in a ledger or
page of a ledger to which it was transferred. Folio is
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the latin word for “page”. It is also called a
“reference”.
Debit Column - this is a money column showing the peso amount
of the value received in the transaction.
Credit Column - this is the money column showing the amount of
the value parted with in a transaction.
Shown below is a page of a General Journal Page No.
DATE PARTICULARS F DEBIT CREDIT
GENERAL LEDGER
A general ledger can of a “loose-leaf” or “book bound form. This book
will group items or account of the same kind, class or nature. Each item or
account is being provided with a leaf of a ledger for this reason a ledger is
also called “group of accounts”.
Date Column - shows the date of the transaction that occurred as
recorded in the journal;
Particulars - shows a brief but a concise explanation of the
transaction as shown in the journal. This is sometimes
called “Explanation”, “Description” or Item.
Folio - shows the page number of a Journal where entries are
taken from;
Money Column - the debit money column shows the amounts that are
transferred from the debit money column of the journal
while the credit money column shown the amount that
are transferred from the credit money column of the
journal.
General Ledger
DATE PARTICULARS F DEBIT DATE PARTICULARS F CREDIT

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SELF CHECK 1.2-1
1. What are the two sets of books that are used and kept by the
business?
2. Why a Journal is called the Book of Original Entry?
3. Why a Ledger is called the Book of Final Entry?
4. What are the two kinds of Journal?
5. What are the two kinds of Ledger”
6. Why a ledger is called “group of accounts”?
7. What is a significance of the folio column of a journal?

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ANSWER KEY 1.2-1
1. Journal and Ledger
2. This is called book of original entry because it is in this book where
transaction are recorded for the first time.
3. This is called book of final entry because it is in this book where
transactions that were recorded in the journal are transferred for final
recording.
4. General Journal and Special Journal
5. General Ledger and the Subsidiary Ledger
6. This book will group items or account of the same kind, class or
nature. Each item or account is being provided with a leaf of a ledger.
7. Folio means a page or reference

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ACCOUNT TITLE SELECTION
Learning Outcome
After you read this information sheet, you must be able to select account
title.
Account titles are identifications or brief description of items that fall to

same kind, class and nature.
ASSET - These are classified into:
1. Current asset
2. Investment and Funds
3. Property, Plant and Equipment
4. Intangible Asset
5. Other Asset
Current Asset - this classification includes assets that are consumable

within a year or normal operating cycle whichever is
longer, without interrupting the normal operation of the
business such as:
Cash - the account title describe money, either in paper or coins and
money substitutes like checks, postal money order, bank
draft, and treasury warrants. When cash is within the premise
of the business, the account title is “cash in bank or cash on
hand”.
Petty Cash Fund - the account title for money placed and set aside
for petty or small expenses. This exist when business used the
imprest system of keeping cash.
Account Receivable- the account title for amount collectible arising
from service rendered to a customer or client on credit or sale

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of goods to customer on accounts. This constitutes an oral and
verbal promise to pay by a customer or client.
Allowance for Bad debts – this is an “asset offset or a contra asset”
account. It provides possible losses from uncollected accounts.
Though this is not actually an asset, it is classified as such
because it is shown as a deduction from the account
receivable which is current asset account.
Notes Receivable – the account title for amounts collectible like that
of the accounts receivable but only it constitutes a written
promise to pay as evidence by a promissory note issued by a
customer or a client.
Interest Receivable – amount of interest earned on a note Receivable
which is not yet collected.
Advances to Employees – the account title for amounts collectible
from employees for allowing them to make cash advances
which are deductible against their salaries and wages.
Merchandise Inventory – an account title for goods that are
purchased intended for resale but are still unsold and on hand
when the accounting period ended.
Prepaid Expense – account title for expenses that are paid in
advance but are not yet incurred or have not yet expired.
Unused Supply – an account title for cost of stationery and other
supplies purchased for use but are left on hand and still
unused. The account title should be specified as to “unused
office supplies” if intended for the office, Unused shop supply
if intended for the shop.
Property, Plant and Equipment- this classification includes assets having
physical existence (tangible) which are more or less
permanent in nature (fixed asset) these are acquired for use in
business operations and not intended for sale, such as;
Land – an account for the site where the building used as a office or
store is constructed.
Building- account title for a finished construction owned by the
business where operation and transaction took place.
Equipment – includes calculators, typewriters, adding machine,
computers, steel filing cabinet and the like. If these used in
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the office, the account title is “office equipment” and if it used
in store, “store equipment”. Trucks, jeeps, vans, automobile
and other kinds of motor vehicles bears the account title as
“transportation equipment” and if some vehicles are used as
exclusively for delivering goods, the account title is “delivery
equipment”.
Furniture’s and Fixtures – includes chairs, tables, counter display
cases and the like. If these are used in the office, the account
title as “office furniture and fixtures”.
Other Asset – asset that cannot be classified in the above classifications are
called other asset such as tools which is the account title used
for hammer, pliers, wrench and the like.
LIABILITIES – they are classified into:

1. Current liabilities
2. Long-term liabilities
Current Liabilities – these are financial obligation of the business which

are due and payable within a year.
Accounts Payable- an account title for a financial obligation of the
business that constitute an oral or verbal promise to pay.
Notes Payable – same as Accounts payable in nature but only, the
obligation is evidence by a promissory note.
Pre-collected and unearned income – an account title for an income

collected in advance and are not yet considered as earned.
Long- term Liabilities – these are financial obligation of the business which
are due and payable after one year. This occurs usually in a
corporate form of business organization.
Notes Payable (long term) - same nature with that of Notes payable
(short term) but only, this requires payment more than a year.
Mortgage Payable – a financial obligation of the business which
requires a fixed or tangible property to be pledged as a
collateral to insure payment.

NC III
CAPITAL – this denotes money or property invested by the proprietor in the
business.
INCOME AND EXPENSE – these are the company accounts created to
summarize the changes of the Capital Account.
KINDS OF INCOME ACCOUNTS

The kind of income account to be used depends upon the type or
nature of service activity which may engage in. In a service concern
business, the account title used in general is “Service Income”.
Other specific Income Account Titles commonly used are:
Professional Fees Income – the account title generally used by
professionals for income earned from the practice of their
profession or may be specified as “Accounting or Auditing Fees
Income” for Accountants, “Legal Fees Income” for lawyers,
“Dental fees Income” for Dentists, “Medical Fees Income” for
Doctors, etc.
Rental Income – for income earned on buildings, space or other
properties owned and rented out by the business as the
mainline of its activity.
Interest Income – for income received by the business arising from
an amount of money borrowed by a customer and is usually
covered by a promissory note.
Miscellaneous Income – for income earned by the business which is
not the main line of its activity and could not be clearly
classified.
KINDS OF EXPENSE ACCOUNT – A specific account title is used to

describe the nature and kind of expense incurred.
Rent Expense – for the amount paid or incurred for use or property,
usually premises.
Repairs and Maintenance – for expenses incurred in repairing or
servicing the buildings, machineries, vehicles, equipment etc.
which are owned by the business.

NC III
Supplies Expense – for the stationery, envelopes, clips, fastener, etc.
used in the office will bear the account title as, “Office
Supplies if used in the store “store supplies”.
Salaries Expense – for compensation given to employee of the
business. It may be specified as “office salaries”, “salesman
salaries” etc.
Bad debts – for the anticipated loss that the business may incur
arising from uncollectible accounts.
Depreciation Expense – for the allocated expired portion of the cost

of property and equipment or fixed assets.
Taxes and Licenses – for the amount paid for business permits,
licenses and other government dues except the Income Tax
paid which is not allowable by law as a deduction.
Postage and Communication- amount paid or postage, stamps,

telephone bills, telegrams and the like.
Insurance Expense – account title for the expired portion of the

insurance premium paid.
Gas and Oil Expense – consumed by use of the business owned

vehicle.
Miscellaneous Expense – any amount paid as expense which is not

significant enough to warrant a particular classification.

NC III
SELF CHECK 1.2-2
I – Classify the following account titles as to ASSET, LIABILITIES, CAPITAL,
INCOME and EXPENSES.
1. ______________ Repairs and Maintenance
2. ______________ Margie Lanchico, Capital
3. ______________ Unused Office Supply
4. ______________ Cash on Hand
5. ______________ Notes Receivable
6. ______________ Accounts Payable
7. ______________ Margie Lanchico, Drawing
8. ______________ Transportation Equipment
9. ______________ Account Receivable
10. ______________ Delivery Equipment
11. ______________ Petty Cash Fund
12. ______________ Unearned Interest Income
13. ______________ Advance to Employees
14. ______________ Shop Supplies Used
15. ______________ Postage and Communication
16. ______________ Taxes and Licenses
17. ______________ Land
18. ______________ Commission Income
19. ______________ Interest Expense
20. ______________ Prepaid Rent
21. ______________ Notes Payable
22. ______________ Furniture and Fixture
23. ______________ Building
24. ______________ Interest Income
25. ______________ Office Supplies
26. ______________ Tools
27. ______________ Rent Expense
28. ______________ Retainer Fees Income
29. ______________ Prepaid Insurance
NC III
30. ______________ Insurance Expense
ANSWER KEY 1.2-2
1. Expense
2. Capital
3. Asset
4. Asset
5. Asset
6. Liabilities
7. Capital
8. Asset
9. Asset
10. Asset
11. Asset
12. liabilities
13. Asset
14. Asset
15. Expense
16. Expense
17. Asset
18. Income
19. Expense
20. Asset
21. Liabilities
22. Asset
23. Asset
24. Income
25. Asset
26. Other asset
27. Expense
28. Income
29. Asset
NC III
30. Expense
LO3. PREPARE JOURNAL ENTRY
ASSESSMENT CRITERIA:
1. Journal entries are prepared in accordance with generally accepted accounting
principles.
2. Debit and credit account titles are determined in accordance with chart of
accounts.
3. Explanation to journal entry is prepared in accordance with the nature of
transaction.
CONTENTS:
 Generally Accepted Accounting Principles

 Accounting Equation
 Journalizing of Proprietor account titles
CONDITIONS:
The students/trainees must be provided with the following
 Calculator
 Journal Paper
 Pencil
 Eraser
 Philippine Financial Reporting Standards
METHODOLOGIES:
 Group discussion
 Interaction
NC III
 Lecture
ASSESSMENT METHODS:
 Written test
 Interview
 Practical exercises
LEARNING EXPERIENCES
Learning Outcome 3
PREPARE JOURNAL ENTRY
SPECIAL INSTRUCTIONS
LEARNING ACTIVITIES
1.Read Information 1.3-1 If you already done reading

Generally Accepted Accounting Principles this information sheet, you
may proceed to self-check and
2.Answer Self Check 1.3-1 compare to the answer key.
3.Read Information Sheet 1.3-2 View presentation from

Accounting Equation YouTube on Accounting
Equation.
4. Answer Self check 1.3-2
5. Read Information 1.3-3

Journalizing of Proprietor Account Title
6. Answer Self Check 1.3-3 If you think that you are ready
Compare to Answer Key 1.3-3 then proceed to the Answer

NC III
self-check and compare your
7. Perform Task Sheet 1.3-4 answer to the answer key.
Journal Entry
8. Check output using performance

criteria checklist 1.3-4
Generally Accepted Accounting Principles
Learning outcome
1. Apply generally accepted accounting principles in preparing
journal entry.
GENERALLY ACCEPTING ACCOUNTING PRINCIPLES (GAAP)

Accounting as an art and a discipline is governed by certain rules,
standards or principles. These serve as guidelines in the conduct of
accounting. As guidelines, adherence to them will ensure that the financial
statement of various enterprise are a products of a process which followed a
uniform set of rules. Followed accordingly, the existence of the guidelines
will project order to the financial statements and enhance reliability of the
accounting information.
The rules, standards or guidelines being followed in accounting are
called the Generally Accepting Accounting Principles. The term
“generally accepted” means that these principle enjoy authoritative support
from accounting bodies. Such accounting bodies in the Philippines are the
Board of Accountancy through its opinions and statements, SEC, PICPA,
noted authors and other respectable members of the financial community.
The Board of Accountancy is the regulatory body created under
Presidential Decree 692, otherwise known as the Accountancy law of the
NC III
Philippines. This law provides for the following functions of the board: to
prepare and administer the CPA Licensure Examination, regulate the
accounting profession in the Philippines, and to promote, prescribe, and
enforce rules and regulations for the effective implementation of the function
of the Board.
As stated earlier, the Philippine Institute of Certified Public
Accountant (PICPA) is the national organization of CPA’s. In order to
formalise the accounting standard setting function in the Philippines, PICPA
established the Accounting Standard Council (ASC). The main function of
ASC is to established and improve the accounting standard that will be
generally accepted in the Philippines.to date, ASC had issued many
statement of financial accounting standards.
Categories of GAAP
The Generally Accepted Accounting Principles may be classified into
three categories; namely:
2. Pervasive principle
3. Broad operating principles
4. Detailed principles
Pervasive Principle - these principle set the foremost guidelines in the

general approach to financial accounting as a whole.
As such these all –encompassing principles provide the
basis for the broad operating and detailed principles.
The pervasive principles are:
1. Initial recording of asset and liabilities

2. Revenue or realization
3. Matching or expense recognition
4. Unit of measure
5. Modifying or exception
a. Conservatism
b. Emphasis on income
c. Application of judgement
Initial recording of assets and liabilities principle – asset and liabilities

are measured and recorded at exchange prices. An initial
NC III
exchange price for assets and liabilities is called cost. The
cost of asset, given the various modes of acquiring them,
are as follows;
a. the amount of cash paid in a cash transaction

b. equal to the selling price minus the cash discount (whether
availed or not) for assets acquired on credit and subject to
cash discount terms.
c. In accordance with the following list of priority when assets
are acquired thru exchange with other assets:
1. Fair market value of the asset given up
2. Fair market value of the asset received
3. Book value of the asset given up
4. For asset acquired through exchange shares of stock.
The initial recording assets and liabilities principle is most
often called the historical cost principle.
Revenue realization principle – this principle requires that revenues must
be recognized or realized when earned.
Matching or expense recognition principle – basically lays down the rules
on when to recognize expenses or cost that are matched or
deducted from revenues. There are three specific expense
recognition principles; namely:
1. Cause and effect association
2. Systematic and rational allocation
3. Immediate recognition
Unit of measure principle- all financial activities are recorded in terms of a

common unit of measure – the Philippine peso
Modifying or exceptions principles – these are the principles used in

accounting to defend exceptions or the non-strict adherence
to the requirements of the other accounting principles.
Conservatism – this modifying principle requires that if there are

alternative procedure or methods, (especially those involving
applications of estimate and judgment) has that alternative

NC III
which has the least favourable effect on owners’ equity must
be chosen.
Emphasis on income – accounting principles (especially in terms of

procedure and methods) that are deemed to increase the
useful of the income statement are sometimes adopted
irrespective of their effects on the other financial statements.
Detailed Principles – these are the specific principles in terms of particular

procedures and methods which are used to implement
pervasive and broad principles
SELF CHECK 1.3-1
I-Give the following:
1. What is GAAP?
2. What is BOA?
3. What is ASC and main function?
II- ENUMERATION
1. What are the function of Accountancy Law?
2. Give the three (3) categories of GAAP.
3. Give the five (5) pervasive principles.

NC III
Answer key 1.3 -1
1. GAAP- Generally Accepted Accounting Principle

2. BOA – Board of Accountancy
3. ASC – Accounting Standard Council / The main function of ASC
is to established and improve the accounting standard that will
be generally accepted in the Philippines.to date, ASC had issued
many statement of financial accounting standards.
II- ENUMERATION
1. To prepare and administer the CPA Licensure Examination, and

to promote, prescribe, and enforce rules and regulations for the
effective implementation of the function of the Board
2. a. Pervasive principle
b. Broad operating principles
c. c. Detailed principles
3. Initial recording of asset and liabilities
Revenue or realization
Matching or expense recognition
Unit of measure
Modifying or exception

NC III
INFORMATION 1.3-2
ACCOUNTING EQUATION
1. Explain and apply accounting equation.
ACCOUNTING EQUATION
The relationship among the accounting elements assets, liabilities,
and capital of an enterprise is expressed in the following basic accounting
equation:
ASSET = LIABILITIES + CAPITAL
The equation should read: the total value of the asset of the enterprise
is equal to the total value of the liabilities and capital of the same enterprise.
From the equation it can be gleaned that the assets are on the left side of
the equation while the liabilities and capital are on the right side.
At this point, it may be mentioned that on the vantage point of
Accounting, the resources of the enterprise being a separate entity, may
come from two other entities: the creditors and legal owner(s). The resources
are presented by the asset, the creditors’ claim are represented by the
liabilities, while the claim of the legal owner(s) is represented by the capital.
NC III
ASSET = LIABILITIES + CAPITAL
Resource of = claims of creditor + interest of owner(s)
The business
Effects of Transaction and events on Assets, Liabilities, and Capital

The transaction and events of an enterprise will affect the accounting
elements assets, liabilities, and capital. The effect on the individual element
is either an increase or a decrease.
The most common effects of transactions and events on assets,
liabilities, and capital as follows:
1. Increase in asset and increase in capital
2. Increase in asset and increase in liabilities
3. Increase in one form of asset and decrease in another form of asset
4. Decrease in asset and decrease in capital
5. Decrease in asset and decrease in liabilities
6. Increase in one form of liability and decrease in another form of
liability.
The Rules of debit and credit
As the double entry bookkeeping method is founded on the concept of
value received and value parted with in a transaction, and as the value
received is recorded via a debit entry and the value parted with is recorded
via a credit entry, it is evident that the double entry bookkeeping method
follows the rules of debit and credit.
Debit to: increase an asset account
Increase an expense account
Increase a loss account
Increase a drawing account
Decrease a liability account
Decrease a capital account
Decrease a revenue account

NC III
Credit to: increase a liability account
Increase a capital account
Increase a revenue account
Decrease an asset account
Decrease an expense account
Decrease a loss account
Decrease a drawing account
The term debit when used as a noun refers to the entry or record in
the journal of the value received in a transaction while the term credit when
used as a noun refers to the entry or record in the journal of the value
parted with in a transaction. However, the term debit when used as a verb
would mean that an account (for any of the accounting elements) is to be
effected or recorded a value on its debit side. On the other hand the term
credit when used as a verb would mean that an account is to be effected or
recorded a value on its credit side.
Account – is the classifying function of accounting, similar or alike
transactions are grouped or classified into a common form of record called
an account.
Parts of an account – in addition to a name or a title, an account
would have a side where values received are recorded (called the debit side)
and a side where values parted with are recorded (called a credit side).
As a form of record, an account would have the following basic
structure (which looks like a capital “T”):
Name or Title
Debit side for the credit side for the

Recording of recording of values
Values received parted with
Debit in Accounting is abbreviated as “DR”, while credit is ”CR”

NC III
Some accounting literature have it that one Italian monk in the name
of something like Lucianno Pasciolli in the years of yore devised the basic
procedures of Accounting. For the feat, he is being referred to in a modern
times as the “Father of Accounting. DR came from the word native to the
monk, “debere” which literally means “to received”, while CR came from the
word credere, which literally means to give.
Dr’s and Cr’s and the Basic Accounting Equation

Asset are originally debits as they must be received first by the
enterprise before they can be parted with; liabilities and capital are
originally credits as their values must first be parted away with before the
values of their cancellation be received.
Asset = liabilities + capital
Drs = Crs
Dr’s and Cr’s and the Expanded Accounting Equation
As revenues increase capital, and as capital is originally a credit, it

follows that revenues must also be initially credits. On the other hand, as
expenses, losses and owner’s drawing decrease capital, they must be
initially debits.
Asset = liabilities + (Capital + Revenues + Additional

NC III
Dr Cr Cr Cr Cr
Investment – Expenses- Withdrawals – Other Losses)

Dr Dr Dr
SELF CHECK 1.3-2

Multiple Choice:
1. The amount entered on the left-hand side of an account is called
a. Debit side
b. Debit entry
c. Debit account
2. The right-hand side of an account refers to
a. Credit entry
b. Credit balance
c. Credit side
3. When an amount is entered at the left-hand side of the account,
a. The account is said to have been debited
b. The account is said to have a debit balance
c. The account is said to have been credited
4. An account is said to have a debit balance when
a. total debit and total credit are equal
b. total credit exceeds total debit
c. total debit exceeds total credit
5. Debire and Credire are taken from
a. Japanese language
b. Greek word
NC III
c. Latin words
6. The left hand side of an account is the
a. Increase side
b. Decrease side
c. Debit side
7. Based on the equation A=L+P, when and decrease liability remains
the same,
a. Capital decreases
b. Capital increases
c. No effect on capital
8. When the amount of the Drawing account exceeds net operating
income,
a. Capital decreases
b. Capital increases
c. Capital is not affected
9. Based on the Accounting equation A=L+P, when Asset increases and
Capital also increases by the same amount,
a. Liability is not affected
b. Liability increases
c. Liability decreases
10. An account can have a credit balance when-

a. All entries are on the credit side of the account
b. Credit total exceeds debit total
c. All of the given answer

NC III
ANSWER KEY 1.3-2
1. B
2. C
3. B
4. C
5. C
6. C
7. A
8. A
9. A
10. C

NC III
INFORMATION 1.3-3
JOURNALISE TRANSACTION
Learning Outcome:
After reading this information sheet, you must be able to:
1. Define journal entry
2. Prepare journal entry
Journalising
To be able to journalize, the recorder must be able to ascertain or
identify the following in the transaction to be recorded:
For the debit entry
1. What is the value received?
2. What is the accounting element affected by the value received?
3. What is the account name or title of the accounting element
affected by the value received?
NC III
4. How much is the value to be recorded for the value received?
For the credit entry
1. What is the value parted with?
2. What is the accounting element affected by the value parted with?
3. What is the account name or title of the accounting element
affected by the value parted with?
4. How much is the value to be recorded for the value parted with?
Illustration of Journalizing:
Transaction #1
Brought a car for cash P 50,000
Analysis:
In this transaction, the value we received is a form of an Asset which
is the “car” and the value we parted with is another form of an asset which
is the “cash”
We then say,
Value received is Asset - Transportation Equipment, 50,000 and
Value parted with is asset - Cash, 50,000
Transaction # 2
Sold an old truck for cash, P 75,000
Analysis:

NC III
In this transaction, the value we received is a form of an Asset which
is the “cash” and the value we parted with is another form of an asset which
is the “truck”
We then say,
Value received is Asset - Cash, P75, 000
Value parted with is asset - Transportation Equipment, P75, 000
Transaction # 3
Bought a typewriter from Davao Import, P15, 000
Analysis:
In this transaction, the value we received is a form of an asset which
is the “typewriter and the value we parted with is a form of a liability which
is a ‘oral promise to pay”.
We then say,
Value received is Asset - Office Equipment, P 15,000
Value parted with is asset - Accounts Payable, 15, 000
Transaction # 4
Paid our account with Davao Import, 15,000
Analysis:
In this transaction, we will get back our oral promise to pay as a
cancellation of our account. The value we received therefore, is a form of a
Liability which is “our oral promise to pay” and the value parted with is a
form of an Asset which is “cash”
We then say,
Value received is Asset - Accounts Payable, P 15, 000

NC III
Value parted with is asset - Cash, P 15,000
SELF CHECK 1.3-3
ILLUSTRATION:
This problem will illustrate the steps of the accounting process for an
accounting period on one month, the DAVAO LAUNDRY SHOP
Mr. Severo Santos is engaged in a laundry shop business for the first
time and made the following investment:
Cash P 40, 000
Laundry Machine 25, 000
P 65, 000
March 2 - Paid business permits and other governmental Fees P 1, 350.
- Bought a second hand car (delivery use) on account costing P
20,000 from Davao Motor Sale and made a down payment of
P 5, 000

NC III
12 - Bought office and laundry supplies on account from the ff:
Driveway Marketing (office supplies) 550
Lourdes Commercial (laundry supplies) 2,700
3,250
15 - Bought chairs, cabinets and display cases from Magallanes
Carpentry Shop costing 10,000. Paid 50% down payment and
issued a note for the balance.
17 - Rendered laundry services to the following customers on
account:
Davao Doctor’s Hospital P 7, 500
Davao Insular Hotel 8, 100
Durian Hotel 5, 300
Maguindanao Hotel 4, 800
San Pedro Hospital 3, 600
29, 300
20 Mr. Severo Santos withdrew cash from his business, P 3, 000.
27 Partially collected the following customers account:
Davao Doctor’s Hospital P 2, 500
Davao Insular Hotel 3, 200
Durian Hotel 2, 500
Maguindanao Hotel 4, 000
San Pedro Hospital 2, 500
14, 700
30 Paid the following expenses:

Electric Bill P 1,000
Water Bill 1,500
Salaries and wages 5,800
8,300

NC III
ANSWER KEY 1.3-3
General Journal Page 1

DATE 20 PARTICULARS F DEBIT CREDIT
A
Mar. 1 Cash L-1 4 0 0 0 0
Laundry Equipment L-6 2 5 0 0 0
S. Santos, Capital L- 6 5 0 0 0
15
Initial
Investment
2 Taxes and Licenses L- 1 3 5 0

19
Cash L-1 1 3 5 0

NC III
Business
Permits,etc
Delivery Equipment L-8 2 0 0 0 0

Cash L-1 5 0 0 0
Accounts L- 1 5 0 0 0
Payable 12
Bought a
delivery car
12 Office Supplies L- 5 5 0
Expense 23
Laundry Supplies L- 2 7 0 0
Used 24
Accounts L- 3 2 5 0
Payable 12
Various
Supplies
On
Account
15 Furniture and L- 1 0 0 0 0
Fixtures 10
Cash L-1 5 0 0 0
Notes Payable L- 5 0 0 0
14
Cabinets,
chairs
Etc. on
acct.
17 Accounts Receivable L-2 2 9 3 0 0

Laundry L- 2 9 3 0 0
Income 18
Services
Rend.
On Account
20 S. Santos, Drawing L- 3 0 0 0
16
Cash L-1 3 0 0 0
NC III
Owners
Drawing
27 Cash L-1 1 4 7 0 0
Accts. L-2 1 4 7 0 0
Receivable
Partial
Collection
From cust.
Acct.
30

NC III
TASK SHEET 1.3-4
Title: Journalizing Transaction
1. Performance Objective: Given the data and materials, you
must be able to prepare journal entry in accordance with generally
accepted accounting principles.
Supplies/Materials : Paper ,Pencil, Columnar sheet
Equipment : calculator
Steps/Procedure:
1. Study the given transaction
2. Analyze the documents
3. Classify the account titles that you’re going to use
4. Use the debit and credit rules
5. Make a journal entry
Assessment Method: Portfolio with performance criteria checklist

NC III
Performance Criteria Checklist 1.3- 4
CRITERIA
YES NO
Did you….
 Study the transaction
 Analyze what are the accounting element that

affect the value received and value parted with.
 Use debit and credit rules

NC III
BIBLIOGRAPHY
FUNDAMENTAL OF ACCOUNTING
(Simplified Conceptual and Procedural Approach)
2000 Millennial Edition
www.wikipedia.com

NC III

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COMPETENCY BASED LEARNING MATERIAL

Sector: HEALTH, SOCIAL AND OTHER COMMUNITY

Qualification Title: BOOKKEEPING NC III

Unit of Competency: JOURNALIZE TRANSACTION

Module Title: JOURNALIZING TRANSACTION

Date Developed: Document No.

In this unit, we introduce you to the essential skills and concepts of

In all activities (whether business activities or non-business activities)

Bookkeeping includes recording of journal, posting in ledgers and

Date Developed: Document No.

PREPARE CHART OF ACCOUNTS

The students/trainees must be provided with the following:

Date Developed: Document No.

PREPARE OF CHARTS OF ACCOUNT

LEARNING ACTIVITIES SPECIAL INSTRUCTION

1.Read Information 1.1-1

2.Answer Self Check 1.1-1

12. Compare performance to the After completing all the

Date Developed: Document No.

Definition of Bookkeeping and Accounting

Bookkeeping - systematic recording financial aspects of the business

To distinguish accounting form bookkeeping, we may basically define

The primary objective of accounting is to furnish the various

Date Developed: Document No.

1. Recording – the process of putting into writing the financial activities

2. Classifying – the process of grouping into specific classification

3. Summarizing- the process of preparing financial reports

4. Interpreting – the process that supplies answers to question about

Date Developed: Document No.

I. ANSWER THE FOLLOWING:

3. What is the difference between Bookkeeping and

4. What is the primary objective of accounting?

5. Give some entities who contributed to develop the

6. What are the four functions of Accounting and their

Date Developed: Document No.

1. Bookkeeping is a systematic recording financial aspects of the business

2. Accounting - it is a systematic process of identifying, recording,

3. Accounting as the art of recording, classifying and summarizing in a

4. The primary objective of accounting is to furnish the various

5. Generally Accepted Accounting Principles (GAAP), International

6. Recording – the process of putting into writing the financial activities of

Date Developed: Document No.

Sole Proprietorship – A business structure in which an individual and

Corporation – a business organization formed by a group of people, and it

Date Developed: Document No.

Cooperatives – it operates similar to corporation. It has its Board of

Date Developed: Document No.

_______________ 1. Owner of the sole proprietorship business.

Date Developed: Document No.

Date Developed: Document No.

TYPES OF BUSINESS ACTIVITIES

Date Developed: Document No.

Trading Concern - Carrying on trade or commerce; engaged in trade; as, a

Date Developed: Document No.

1. Types of business activities that rendered services?

2. Three types of business activities?

3. Types of business activity engaged in trade.

4. Types of business activity that produce another products to sell