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    TLE10-accounting Cycle

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    Roda Reyes
    The document discusses the accounting cycle which is the continuous process of collecting, summarizing, and reporting financial information. It explains the steps in the accounting cycle which include identifying transactions, preparing journal entries to record transactions, and posting journal entries to general and subsidiary ledgers. Examples are provided to illustrate journal entries for various business transactions like paying bills, receiving payments from customers, and purchasing supplies.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    TLE10-accounting Cycle

    Uploaded by

    Roda Reyes
    39 views21 pages
    The document discusses the accounting cycle which is the continuous process of collecting, summarizing, and reporting financial information. It explains the steps in the accounting cycle which include identifying transactions, preparing journal entries to record transactions, and posting journal entries to general and subsidiary ledgers. Examples are provided to illustrate journal entries for various business transactions like paying bills, receiving payments from customers, and purchasing supplies.

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    TLE10-accounting cycle

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    The document discusses the accounting cycle which is the continuous process of collecting, summarizing, and reporting financial information. It explains the steps in the accounting cycle which include identifying transactions, preparing journal entries to record transactions, and posting journal entries to general and subsidiary ledgers. Examples are provided to illustrate journal entries for various business transactions like paying bills, receiving payments from customers, and purchasing supplies.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    39 views21 pages

    TLE10-accounting Cycle

    Uploaded by

    Roda Reyes
    The document discusses the accounting cycle which is the continuous process of collecting, summarizing, and reporting financial information. It explains the steps in the accounting cycle which include identifying transactions, preparing journal entries to record transactions, and posting journal entries to general and subsidiary ledgers. Examples are provided to illustrate journal entries for various business transactions like paying bills, receiving payments from customers, and purchasing supplies.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 21

    Technology and

    Livelihood
    Education 10
    Welcome
    Grade 10
    House Rules
    • Be on time and presentable.
    • Camera ON, Mic OFF.
    • Stay focused.
    • Queries will be entertained before the end of the session.
    • Click the raised hand icon if there are queries.
    • Unmute your microphone only when acknowledge or ask
    to do so.
    • Submit your outputs on time. Late are not
    entertained.
    Quarter 2
    Module 2

    Accounting Cycle
    Lesson Objectives:
    At the end of this lesson, the learners will be able to…

    1. Understand the rules of debit and credit;


    2. Analyze common business transactions using the rules of debit
    and credit; and
    3. Solve simple problems and exercises in the analyses of business
    transaction
    The Accounting Cycle
    The accounting cycle is a continuous process of
    collecting, summarizing and reporting financial
    information.  
    The Accounting Cycle

       
    The Accounting Cycle
    1. Transactions and/or Events
    Identification of business and non-business transactions. At this phase, the
    documents used by the business are analyzed whether it would affect the
    financial status of the business or not. Transactions to be recorded should have
    measurable amounts and would affect the   value of asset, liability or capital.
    Examples of financial transactions:
    Payment of accounts
    Payment of bills (Electricity, water, subscriptions, etc.)
    Receipt of payment from customers
    The Accounting Cycle
    The data needed when recording events are taken from business documents listed
    below:
    a. Cash or Official Receipt
    It is a business document that recognizes the cash or checks that have been
    received.
     
    b. Charge or Sales Invoice
    A charge slip that is used when the business rendered services on credit, or the
    customer will pay the bill after several days.
    c. Check or Cash Voucher
    A check voucher is a document used when a check is issued to pay for an obligation
    (example payment of electric bill).
    The Accounting Cycle
    2. Prepare Journal Entries (Journalization)
    Journalization is the process of recording business transactions in
    accounting records. It has two essential parts: the debit (DR) and
    credit (CR) side. Basically, assets and expenses increase when
     
    debited while liabilities, capital and revenues increase when credited
    and vice versa.
    The Accounting Cycle
    Rules of Debits and Credits
    ● The account name to be debited is written first with its
    corresponding amount on the left of the register.
    ● The account name to be credited  is written on the second line with
    its corresponding amount on the right of the register.
    ● Total amount of debit should always be equal to the total amount of
    credit.
    The Accounting Cycle
    Debit (Dr) Credit (Cr)

    Represents Represents
    the increase   the increase
    in Assets, in Liabilities,
    Drawing and Capital and
    Expenses Revenue
    accounts accounts
    The Accounting Cycle
    Let us try the case of the Bingo Company. On January 1 2020, Mr.
    Jay Reyes decided to put up a small printing business. His initial
    investment is P25, 000 cash.
    General Journal
    Date Account Title   PR Debit Credit
    1/1/2020 Cash  11 25, 000  

     
    Reyes Capital  31   25, 000
     
    To record the owner's initial      
    investments.
    The Accounting Cycle
    January 2, the owner purchased supplies for cash, worth P3,000.
    General Journal
    Date Account Title PR Debit Credit

    1/2/2020 Supplies 14  3, 000  


     

      Cash 11    3, 000


      To record the purchase of      
    supplies.
    The Accounting Cycle
    January 3, the owner purchased equipment on account, worth P15, 000.
    General Journal
    Date Account Title PR Debit Credit

    1/3/2020 Equipment 15  15, 000  


     

      Accounts Payable  21   15, 000


      To record the purchase of      
    equipment.
    The Accounting Cycle
    January 4, the company rendered service to a customer, paying
    cash, P1,000.
    General Journal
    Date Account Title PR Debit Credit
     
    1/4/2020 Cash  11 1, 000  

      Service Revenue  41   1, 000


      To record the services rendered to      
    a customer.
    The Accounting Cycle
    January 4, the company rendered service to a customer on account, P2,000.
    General Journal
    Date Account Title PR Debit Credit

    1/4/2020 Accounts Receivable 12  2, 000  


     
      Service Revenue 41    2, 000
      To record the services rendered      
    to a customer on account.
    The Accounting Cycle
    January 5, the company was billed and pay P200 for its water consumption.
    General Journal
    Date Account Title PR Debit Credit

    1/4/2020 Utilities Expense 51  200  


     

      Cash 11    200


      To record the payment of utilities.      
    The Accounting Cycle

     
    The Accounting Cycle

     
    The Accounting Cycle

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