Fundamentals of Accounting Exercise Workbook

SAP B1 on Cloud – Fundamentals of Accounting
Fundamentals of Accounting
EXERCISE WORKBOOK
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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph
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Table of Contents
1. Basic Navigation......................................................................................................................................4
Exercise 1.1..............................................................................................................................................4
Exercise 1.2..............................................................................................................................................4
2. Introduction to Fundamentals of Accounting..........................................................................................5
Exercise 2.1..............................................................................................................................................5
3. Chart of Accounts....................................................................................................................................6
Exercise 3.1..............................................................................................................................................6
4. Subsidiary Ledgers...................................................................................................................................7
Exercise 4.1..............................................................................................................................................7
5. The Accounting Cycle...............................................................................................................................8
Journalizing..................................................................................................................................................8
Exercise 5.1..........................................................................................................................................8
Exercise 5.2..........................................................................................................................................9
Manual Journal Entry and Journal Vouchers.........................................................................................10
Exercise 5.3........................................................................................................................................10
Exercise 5.4........................................................................................................................................11
Exercise 5.5........................................................................................................................................12
Exercise 5.6........................................................................................................................................13
Special Journals (Purchase)....................................................................................................................14
Exercise 5.7........................................................................................................................................14
Exercise 5.8........................................................................................................................................15
Exercise 5.9........................................................................................................................................16
Special Journals (Disbursements)..........................................................................................................17
Exercise 5.10......................................................................................................................................17
Exercise 5.11......................................................................................................................................18
Exercise 5.12......................................................................................................................................19
Special Journals (Sales)..........................................................................................................................20
Exercise 5.13......................................................................................................................................20
Exercise 5.14......................................................................................................................................21
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Exercise 5.15......................................................................................................................................22
Special Journals (Collection)..................................................................................................................23
Exercise 5.16......................................................................................................................................23
Exercise 5.17......................................................................................................................................24
General Ledger..........................................................................................................................................25
Exercise 5.18......................................................................................................................................25
Adjusting Entries........................................................................................................................................26
Exercise 5.19......................................................................................................................................26
Exercise 5.20......................................................................................................................................27
Exercise 5.21......................................................................................................................................28
Unadjusted Trial Balance...........................................................................................................................29
Exercise 5.22......................................................................................................................................29
Adjusted Trial Balance...............................................................................................................................30
Exercise 5.23......................................................................................................................................30
Financial Statements.................................................................................................................................31
Exercise 5.24......................................................................................................................................31
Exercise 5.25......................................................................................................................................32
Period End-Closing.....................................................................................................................................33
Exercise 5.26......................................................................................................................................33
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1. Basic Navigation
Exercise 1.1
Fill each blank with the appropriate words or terminologies that will make the statements correct.
1. The ______________ displaysatthetopofthescreen.It

containstheWindowsstandardmenu(File,Edit,Wwindow,Help)
aswellasgenericSAPBusinessOnefunctions.
2. The_____________isacollectionoficon buttonsthatgrantyou easyaccesstocommonly-used functions.
3.Navigation in SAP Business One is done using the _____________. It arranges the functions of the
individual applications in a tree structure.
4. The users of SAP Business One are defined in the _____________ window.
5. Accessing SAP Business One on Cloud is done using _____________ like Google Chrome, Mozilla
Firefox or Safari.
Exercise 1.2
Identify the terminologies being described by each sentence.
1. This is a business management software that allows an organization to use a system of integrated applications
to manage the business. It aims to serve as a backbone for your whole business.
2. This is also known as Internal Cloud, is a cloud based infrastructure operated exclusively for a single
organization with all data protected behind an internal firewall.
3. This is also known as External Cloud, is available to the public where data are created and stored on
third-party servers.
4. This is a key feature of cloud computing where resources can be accessed anywhere (except on
limitations set by company's internal control).
5. This the place where SAP, a European multinational software corporation, was founded in 1972.
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2. Introduction to Fundamentals of Accounting

Exercise 2.1
1. _____________is asystematicprocess ofidentifying,recording, measuring,classifying,

verifying,summarizing,interpretingand communicatingfinancialinformation.
2. _____________ is known as the Father of Accounting.
3. A _____________ anorganizationthatuseseconomicresources or inputs to provide goods or
services to customers in exchangefor moneyorother goodsand services.
4. _____________ isthefundamental conceptunderlyingpresent-daybookkeepingandaccounting. This
isbasedon thefact thateveryfinancialtransactionhasequal andopposite
effectsinatleasttwodifferentaccounts.
5. _____________ istheconceptthataccountingtransactionsshouldberecordedinthe
accountingperiodswhenthey actuallyoccur,ratherthanintheperiodswhentherearecash
flowsassociatedwiththem.
6. _____________ istheconceptthatabusinesswillremaininoperationforthe foreseeablefuture.
7. _____________ istheconceptthatthetransactionsofabusinessshouldbekept separate
fromthoseofitsownersandotherbusinesses.
8. _____________ istheconceptthatabusinessshouldonlyrecord transactionsthat
canbestatedintermsofaunitofcurrency.
9. _____________is theconceptthatyoushouldincludeinoralongsidethefinancial
statementsofabusinessalloftheinformationthatmayimpactareader'sunderstandingof
thosefinancialstatements.
10. Double entry bookkeeping is used to satisfytheequationthat Assets=______+_______.
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3. Chart of Accounts
Exercise 3.1
1. _____________ isa financialorganizationaltoolthatprovides acompletelistingofevery

accountinanaccountingsystem.
2. An _____________ is a unique record for each type of asset, liability, equity, revenue and expense.
3. The _____________ accounts reflect the monitory value of the company - stock, assets, debt,
etc.Theseaccountsarecarried overfromonefiscal yeartothenext.
4. _____________ accountshastobeclearedattheendofeachfiscalyearthroughPeriod EndClosing process.
5. Chart of Accounts of SAP Business One can be viewed and managed through the _____________
module.
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4. Subsidiary Ledgers
Exercise 4.1
What are the purpose of subsidiary ledgers?
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5. The Accounting Cycle

Journalizing
Exercise 5.1
1. _____________ isarecordoffinancialtransactionsinorderbydate. It isoftendefinedasthe

bookoforiginalentry.
2. _____________ is aspecialorspecializedjournal i s u s e d torecordsalesofmerchandisetocustomers.
3. _____________ is aspecial journalusedtorecordmoneyreceived.
4. _____________ isarecordofallacquisitionsmadeoncreditduringaperiod
5. _____________ isarecordkeptbyaccountantstorecord allfinancialexpendituresmadebya company.
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Exercise 5.2
Record the following transactions using the Manual Journal Entry:
On January 20, 2020, the company received billings for the following utilities:
Dr. Light Expense P 6,750
Dr. Water Expense P 4,400
Cr. Accrued Expense Payable P 11,150
On January 25, 2020, billings received were paid for cash.

Dr. Accrued Expense Payable P 11,150
Cr. Cash on Hand P 11,150
Insert the screenshot of your output here:
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Manual Journal Entry and Journal Vouchers

Exercise 5.3
On February 10, 20XX, the owner of the company had an additional cash investment of P 500,000,
deposited on the company’s BDO Bank Account.
Dr. Cash in Bank – BDO P 500,000
Cr. Aquino, Capital P 500,000
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Exercise 5.4
On March 15, 20XX, the owner withdrawn some of his cash investment to pay for his personal expenses
amounting to P 25,000. The Disbursement Officer withdrew the amount from the company’s BDO
account.
Dr. Aquino, Drawing P 25,000
Cr. Cash in Bank - BDO P 200,000
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Exercise 5.5
On March 30, 20XX, the company recorded a Salary Expense worth of P 100,000, paid for through the
company’s BDO Bank Account:
Dr. Salaries and Wages P 100,000
Cr. Cash in Bank, BDO P 100,000
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Exercise 5.6
Createthefollowingentriesin journalentry through the journal vouchers.
Date Transaction Amount

April01,20XX Sansa Aquino invested office equipment Php850,000
for the business
April02,20XX The owner invested additional cash Php72,000
through a bank deposit in Metrobank
April03,20XX Paid transportation for business related Php1,750
travels
Submit the screenshot of the journal voucher created and the transaction journal report from April 01,
20XX – April 03, 20XX.
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Special Journals (Purchase)

Exercise 5.7
On April 10, 2020, the company received the billing from PLDT worth Php 11,200 (tax inclusive). It is to
be recorded as Communication Expense on the A/P invoice.
Screenshot the journal entry created from the A/P invoice.
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Exercise 5.8
On April 11, 2020, the company received the billing from Philhealth, worth P 3000, for the employees’
recent salary.
Exercise 5.9
On April 13, 2020, the company received the billing from SSS, worth P 5000, for the employees’ recent
salary. SSS contribution expense
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Special Journals (Disbursements)

Exercise 5.10
On April 15, 2020, the invoice from PLDT was paid for by cash (based on Exercise 5.6).
Screenshot the journal entry created from the outgoing payment.
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Exercise 5.11
On April 16, 2020, the invoice from Philhealth was paid for by cash(based on Exercise 5.7).
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Exercise 5.12
On April 16, 2020, the invoice from SSS was paid for by cash (based on Exercise 5.8).
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Special Journals (Sales)

Exercise 5.13
On May 2, 20XX, the company billed Mariah Carey for the services it rendered worth P 50,000 (tax
exclusive, tax will automatically be computed by the system). It is to be recorded as Sales and Service
Income in the A/R invoice.
Screenshot the journal entry created from the A/R invoice.
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Exercise 5.14
On May 5, 20XX, the company renderedservicetoa walk-incustomeramountedtoP 15,000
(taxnotyetincluded). The customer immediately paid cash.
Screenshot the journal entry created from the A/R invoice + Payment.
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Exercise 5.15
On May 9, 20XX, the company rendered service to Elvis PresleyamountedtoP80, 000
(taxnotyetincluded). It is to be recorded as Sales and Service Income in the A/R invoice.
Screenshot the journal entry created from the A/R invoice.
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Special Journals (Collection)

Exercise 5.16
On May 9, 20XX, Mariah Carey paid her invoice via Bank Transfer to the company’s Metrobankaccount
with reference number RQL0965YT.
Screenshot the journal entry created from the Incoming Payment.
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Exercise 5.17
On May 10, 2020, Elvis Presley paid his invoice by cash.
Screenshot the journal entry created from the Incoming Payment.
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General Ledger
Exercise 5.18
Generate the General Ledger as of the date of the latest transaction.
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Adjusting Entries
Exercise 5.19
Assuming the company uses Asset Method in recording prepayments. Perform the adjusting entries
based on the transactions below:
On June 1, 2020, the company paid in advance, 1 year worth of rent, for a total of P 120,000 (P 10,000
per month), from its Cash in Bank – BDO account.
Dr. Prepaid Rent P 120,000

Cr. Cash in Bank – BDO P 120,000
(Adjusting Entry) On December 31, 2020, recognize the rent expense incurred.
Dr. Rent Expense P 70,000

Cr. Prepaid Rent P 70,000
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Exercise 5.20
Assuming the company uses Expense Method. Perform the adjusting entries based on the transactions
below:
On July 15, 2020, the company bought Office Supplies worth Php 35,000.
Dr. Supplies Expense P 35,000

(Adjusting Entry) On December 31, 2020, office supplies worth Php 15,000 were used and expensed.
Dr. Office Supplies P 20,000

Cr. Supplies Expense P 20,000
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Exercise 5.21
Perform the adjusting entries based on the transactions below:
On August 1, 2020, the company bought Office Machinery worth Php 20,000.
Dr. Office Machinery P 20,000

(Adjusting Entry) On December 31, 2020, Office Machinery was computed to have a depreciated by P
2,500.
Dr. Depreciation Expense – Machinery P 2,500

Cr. Accumulated Depreciation - Machinery P 2,500
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Unadjusted Trial Balance

Exercise 5.22
Generate the unadjusted Trial Balance as of the end of the year.
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Adjusted Trial Balance

Exercise 5.23
Generate the adjusted Trial Balance as of the end of the year.
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Financial Statements
Exercise 5.24
Generate the Balance Sheet as of the end of the year.
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Exercise 5.25
Generate the Income Statement for the year ended 20XX.
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Period End-Closing
Exercise 5.26
Perform Period End Closing for the year 20XX.
Screenshot the closing entries generated in the Transaction Journal Report.
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SAP B1 on Cloud – Fundamentals of Accounting

538431437.docx printed on 8/26/2021 23:46 a8/p8

538431437.docx printed on 8/26/2021 23:46 a8/p8

538431437.docx printed on 8/26/2021 23:46 a8/p8

1. The ______________ displaysatthetopofthescreen.It

2. The_____________isacollectionoficon buttonsthatgrantyou easyaccesstocommonly-used functions.

538431437.docx printed on 8/26/2021 23:46 a8/p8

2. Introduction to Fundamentals of Accounting

1. _____________is asystematicprocess ofidentifying,recording, measuring,classifying,

538431437.docx printed on 8/26/2021 23:46 a8/p8

1. _____________ isa financialorganizationaltoolthatprovides acompletelistingofevery

4. _____________ accountshastobeclearedattheendofeachfiscalyearthroughPeriod EndClosing process.

538431437.docx printed on 8/26/2021 23:46 a8/p8

538431437.docx printed on 8/26/2021 23:46 a8/p8

5. The Accounting Cycle

1. _____________ isarecordoffinancialtransactionsinorderbydate. It isoftendefinedasthe

2. _____________ is aspecialorspecializedjournal i s u s e d torecordsalesofmerchandisetocustomers.

3. _____________ is aspecial journalusedtorecordmoneyreceived.

5. _____________ isarecordkeptbyaccountantstorecord allfinancialexpendituresmadebya company.

538431437.docx printed on 8/26/2021 23:46 a8/p8

On January 25, 2020, billings received were paid for cash.

Insert the screenshot of your output here:

538431437.docx printed on 8/26/2021 23:46 a8/p8

Manual Journal Entry and Journal Vouchers

Insert the screenshot of your output here:

538431437.docx printed on 8/26/2021 23:46 a8/p8

Insert the screenshot of your output here:

538431437.docx printed on 8/26/2021 23:46 a8/p8

Dr. Salaries and Wages P 100,000

Cr. Cash in Bank, BDO P 100,000

Insert the screenshot of your output here:

538431437.docx printed on 8/26/2021 23:46 a8/p8

Date Transaction Amount

Insert the screenshot of your output here:

538431437.docx printed on 8/26/2021 23:46 a8/p8

Special Journals (Purchase)

Screenshot the journal entry created from the A/P invoice.

Insert the screenshot of your output here:

538431437.docx printed on 8/26/2021 23:46 a8/p8

Screenshot the journal entry created from the A/P invoice.

Insert the screenshot of your output here:

Screenshot the journal entry created from the A/P invoice.

Insert the screenshot of your output here:

538431437.docx printed on 8/26/2021 23:46 a8/p8

Special Journals (Disbursements)

Screenshot the journal entry created from the outgoing payment.

Insert the screenshot of your output here:

538431437.docx printed on 8/26/2021 23:46 a8/p8

Screenshot the journal entry created from the outgoing payment.

Insert the screenshot of your output here:

538431437.docx printed on 8/26/2021 23:46 a8/p8

Screenshot the journal entry created from the outgoing payment.

Insert the screenshot of your output here:

538431437.docx printed on 8/26/2021 23:46 a8/p8

Special Journals (Sales)

Screenshot the journal entry created from the A/R invoice.

Insert the screenshot of your output here:

538431437.docx printed on 8/26/2021 23:46 a8/p8

Insert the screenshot of your output here: