Certified Bookkeeper Program
Certified Bookkeeper Program
January 12, 19, 26 and February
2, 2008
Holiday Inn Galleria
LEARNING OBJECTIVES:
1. The different kinds of special journals and their format.
2. Recording of transactions in the Special Journals, such as Sales Journal, Cash Receipts Journal, Purchases Journal, Cash
Payments Journal, and General Journal.
3. The use of controlling account and subsidiary account. 4. Computerized accounting system.
5. The use of the voucher system.
6. Recording of the transactions using a voucher system. 7. The use of a check register.
ACCOUNTING SYSTEM:
Accounting System is the method and procedure for collecting, classifying, summarizing, and reporting the financial and
operation information of a business.
Steps of Accounting System Steps of Accounting System
1. Collect transaction data.
SPECIAL JOURNALS:
Special Journals are multicolumn journals that have columns
reserved for the specific types of transactions. Special Journals simplify the journalizing and posting process.
Four Common Special Journals:
1. Sales Journal
2. Cash Receipts Journal 2. Cash Receipts Journal 3. Purchases Journal
SPECIAL JOURNALS:
Sales Journal is used to record sales of merchandise on account. Cash sales of merchandise are recorded in a special journal called cash receipts journal.
Cash Receipts Journal is used to record all cash received.
Purchases Journal is used to record the purchase of the
Purchases Journal is used to record the purchase of the merchandise on account business.
Cash Payment Journal is used to record all payments of cash.
The use of the special journals does not eliminate the use of the general journal. Any other transaction, which cannot be recorded in the special journals, will be recorded in this journal. A journal voucher must
SPECIAL JOURNALS:
Recording Sales on Account
Sales transactions on credit will be recorded more efficiently using the Sales Journal.
Example:
The July sales transactions (all subject to value added tax of 12% The July sales transactions (all subject to value added tax of 12%
already included) :
July 2 Sales on account to Nestor Alcantara for P1,120 as per sales invoice # 0101.
4 Sales on account to Amelia Soriano for P2,800 as per sales invoice # 0102.
SPECIAL JOURNALS:
Example:
Invoice No. Sold to PR Accounts
Receivable Vat Output Sales
Date Debit Credit Credit
July 2 101 Nestor Alcantara 1,120.00 120.00 1,000.00 Sales Journal
4 102 Amelia Soriano 2,800.00 300.00 2,500.00 5 103 Paul Bernardo 2,464.00 264.00 2,200.00
Note: The VAT Output tax is 12% of Sales, which is already included in the bill. To compute the VAT output, the gross Invoice amount is divided by 1.12,
then multiplied by .12. Posting reference with mark means that this
transaction has been posted to the accounts receivable subsidiary ledger.
SPECIAL JOURNALS:
Cash Receipts Journal is a special journal used to record all transactions in which cash is received. The exact format and
number f special amount columns will vary depending upon the company’s needs.
Recording Sales on Account
Regular transactions affecting cash receipts are cash sales and
SPECIAL JOURNALS:
Example:
The July cash receipts transactions (all the cash sales are VAT inclusive): July 3 Cash sales to Maria Torres for P560 per invoice # 1001 and
OR # 009.
6 Sold office equipment costing P1,500 not used in business per O.R. # 010.
12 Received P1,100 per O.R. # 011 from Nestor Alcantara in 12 Received P1,100 per O.R. # 011 from Nestor Alcantara in
payment for invoice # 0101 for P1,120 less P20 cash discount.
14 Collected P3,360 from Rosa Video as rental payment per O.R. # 012.
16 Received P2,420 per O.R. 013 from Paul Bernardo in payment for invoice 0103 for P2,64 less cash
SPECIAL JOURNALS:
Example:
Cash Sales Discount Accounts Receivable Sales VAT Output
DR DR CR CR CR Account PR Amount
3-Jul Maria Toress 009 P 560 P 500 P 60
6 Cash 010 1,500 Office Equipment 121 1,500
CASH RECEIPTS JOURNAL Page 1
Date Received From OR # PR
Sundry CR
12 Nestor Alcantara 011 1,100 20 1,120
13 Rose Video 012 3,360 360 Rent Income 702 3,000
16 Paul Bernardo 013 2,420 44 2,464
Note: Accounts that have no money columns are recorded in the Sundry CR column. Special money columns may be provided for accounts, which are frequently used.
Posting reference with mark means that this transaction has been posted to the individual subsidiary ledger accounts.
SPECIAL JOURNALS:
Subsidiary Ledger a special ledger which shows in detail the transactions affecting a customer or a supplier. For customers, it is called Accounts Receivable Subsidiary Ledger and for suppliers, it is called Accounts Payable Subsidiary Ledger
Date Explanation Post Ref.
Debit
Credit
Balance
Nestor Alcantara
July 2
SJ1
1,120.00
1,120.00
12
CR1
1,200.00
0
Date Explanation Post Ref.
Debit
Credit
Balance
July 4
SJ1
2,800.00
2,800.00
SPECIAL JOURNALS:
Date Explanation PR Debit Credit Balance July 2 SJ1 P 1,120 P 1,120
12 CR1 P 1,120 0
Paul Bernado
Note: The posting to the A/R account in the general ledger will originate from the total debit amount in the sales journal and
Purchases Journal is a special journal used to record all purchases of merchandise on credit.
Recording Sales on Account
Purchases transactions on account can be recorded more conveniently by using the purchases journal.
SPECIAL JOURNALS:
Example:
The July Purchases transactions (all the purchases are VAT inclusive):
July 1 Received Invoice # 7897 from KP Company for
merchandise purchased on account, P3,920; terms 2/10, n/30.
n/30.
3 Received Invoice # 3418 from City Supply Company for supplies bought on account, P1,008. (This will be
recorded in the general journal and subsidiary ledger) 5 Received invoice # 2419 from SL Company for
merchandise purchased on account, P8,736; terms 2/10, n/30
SPECIAL JOURNALS:
Purchase VAT Input
Accounts Payable
Debit Debit Credit
July 1 7897 KP Company P3,500 P420 P3,920
Date Inv. No Purchased from PR
Purchase Journal
Example:
5 2419 SL Company 7,800 936 8,736
7 2045 Modern Co. 20,000 2,400 22,400
Note: The 12% VAT is computed based on the gross invoice price
divided by 1.12 then multiplied by .12.
Posting reference with mark means that this transaction has been posted to the accounts payable subsidiary ledger.
If the business is buying NON-VAT products, there will be no VAT Input Tax and Accounts payable will be equal to purchases or cost of items
SPECIAL JOURNALS:
Cash Payments Journal is a special journal used to record all transactions in which cash is paid out or decreased.
Recording Cash Payments Transactions
normal transactions affecting cash payments are cash purchases normal transactions affecting cash payments are cash purchases
SPECIAL JOURNALS:
Example:
The July cash payments:
July 1 Paid P5,000 to Big Realty Company for the July rent, check # 122511.
2 Paid P4,256 to Pentagon Company for merchandise
purchased for cash inclusive of 12% vat, check # 122512. purchased for cash inclusive of 12% vat, check # 122512. 11 Issued check # 122513 for P3,850 to KP Company in full
payment of Invoice # 7897 net cash discount of P70.00 13 Paid P1,250 to Fast Delivery Co. for transportation
charges on merchandise bought from Pentagon and KP Company, check 1# 22514.
SPECIAL JOURNALS:
Cash
Purchase Discount
Accounts
Payable Purchases Vat Input
CR CR DR DR DR Account PR Amount July 1 Cash 122511 P 5,000 Rent Expense 608 P 5,000
2 Cash 122512 4,256 3,800.00 456.00 Date Paid to Check No. PR
Sundry DR Cash Payments Journal
Example:
11 KP Company 122513 3,850 70.00 3,920.00 13
Fast Delivery
Company 122514 1,400 150.00 Freight-in 504 1,250 Note: Other accounts represent a general column. Additional special account columns
may be provided depending on the frequency of the transaction affecting the particular account.
Posting reference with means that this transaction has been posted to the individual subsidiary ledger accounts.
SPECIAL JOURNALS:
Posting to Accounts Payable Subsidiary Ledgers
Explanation PR Debit Credit Balance
July 1 PJI 3,920 3,920
11 CPJ1 3,920 0
KP Company Date
Explanation PR Debit Credit Balance
July 3 PJ1 1,008 1,008
CPJ1 1,008 0
Date
City Supply Company
Explanation PR Debit Credit Balance
July 5 PJ1 8,736 8,736
SPECIAL JOURNALS:
Posting to Accounts Payable Subsidiary Ledgers
Explanation PR Debit Credit Balance
July 7 PJ1 22,400 22,400
Date
Modern Co.
Note: The Accounts Payable controlling account is posted to the general ledger based on the total credit amount in t he Purchases Journal and the total debit amount in the
SPECIAL JOURNALS:
General Journal is a special journal used to record all transactions that do not fall under the four special journals.
Recording General Journal
1. Purchases of other assets made on account.
2. Sales returns and allowances on sales made on account. 2. Sales returns and allowances on sales made on account. 3. Purchases returns and allowances on purchases made on
account
4. Extension of Accounts Receivable by receiving a promissory note.
SPECIAL JOURNALS:
Computerized Accounting System
some businesses may need only a microcomputer (PC), while others may need large computers like microcomputer or
mainframe computers to store their accounting information.
Systems Software Systems Software
the program that instructs or directs the operations of the computer.
Hardware
SPECIAL JOURNALS:
Computerizing
The Microsoft Excel or Lotus SmartSuite spreadsheet program is a very convenient tool in computerizing an accounting system using Special Journals.
Balance Sheet:
1. Make the Balance Sheet format with all Assets, Liabilities, and Owner’s Equity accounts.
Schedules of Accounts Receivable and Payable:
1. Make the Schedules of Accounts Receivable and Payable formulas with the list of all Customers and Creditors.
2. Link with equal sign from the Subsidiary Ledgers to
VOUCHER SYSTEM:
Voucher System a control technique that requires every acquisition and subsequent payment be supported by an approved voucher. It is a very important part of the overall accounting system because it provides documentation and control of the disbursement process.
Elements of Internal Control Contained in a Voucher System: Elements of Internal Control Contained in a Voucher System:
1. Segregation of duties of employees.
2. Authorization procedures and related responsibilities. 3. Accounting procedures that require pre-numbering and
VOUCHER SYSTEM:
A Voucher System usually includes: 1. Vouchers
2. Voucher Register
3. Voucher Payable Account 4. Voucher Checks
VOUCHER SYSTEM:
Voucher system may be used for materials, payroll, supplies,
taxes, interest, payables, and other expenditures. It is best used when one or more of the following conditions exist:
1. Invoices are paid in full when due rather than in partial payments.
payments.
2. Controls over expenditures are needed because there are a large number of transactions.
PURCHASING PROCESS:
Purchasing Process
Purchase Requisition
A purchase request to the purchasing department
for goods needed. The bill for the goods supplied
by the vendor. Invoices may be received for purchases of material, supplies, services,
inventories, or other assets.
A Report that describes the nature, quantity, and condition of the goods received.
Purchase Order Receiving Report Receiving Report other assets. A written order to a vendor/supplier to buy certain items. It is sent to the
VOUCHER SYSTEM:
Flow of the Purchasing Process:
1. The user department requests goods to be purchased to the purchasing department.
2. The purchasing department prepares purchase order from the purchase requisition duly approved.
3. The purchase order is sent to the vendor for delivery.
4. Goods are received from the vendor and a receiving report is prepared.
VOUCHER SYSTEM:
Function of the Accounting Department in the Purchasing Process:
1. It verifies all extensions and additions in the Sales invoice supplied by the vendor .
2. It compares the sales invoice with the receiving report to make sure that the company is being billed for goods actually
received.
VOUCHER PREPARATION:
Voucher is a document that shows that an acquisition is proper and that payment is authorized. A voucher usually contains
VOUCHER SYSTEM:
User Department Purchasing Department Purchase Requisition Purchase Order Receiving Department Vendor Receiving Report Vendor Accounting Department Vendor Purchase Invoice Voucher Register Unpaid
VOUCHER PREPARATION:
Preparing a Voucher:
1. Compare the invoice with the purchase requisition, purchase order, and receiving report to determine that:
a. The quantity was requisitioned (purchase requisition), ordered (purchase order), and received (receiving report). b. The price and credit terms are proper (purchase order). 2, Determine whether the purchase is appropriate for the
business.
VOUCHER PREPARATION:
M odern Department Store
808 Veterans Ave. Cebu City P.R. No. A-110 Date Issued: June 26, 20CY Order Form:
Date Required: July 10, 20CY Zoom Appliances, Inc. Department: Appliances 345 Rizal Avenue
PURCHASE REQUISITION
Deliver To: Jose Vergara Manila City Quantity
6 Sony Color TV, Model 2057 6 Sharp Color TV, Model 1538
6 Standard Electric Fans, Model 0680
Placed by: Emily Granada Purchase Order No. 335 Approved by: Gary Pichel Date: June 27, 20CY
VOUCHER PREPARATION:
M odern Department Store
808 Veterans Ave. Cebu City P.O. No. 335 Date Issued: June 26, 20CY Order Form:
Delivered by: July 10, 20CY Zoom Appliances, Inc. Terms: 2/10, n/30 345 Rizal Avenue
PURCHASE ORDER
Shipped by: Pambato Forwarders Manila City Shipment FOB, Manila City
Quantity
6 Sony Color TV, Model 2057 6 Sharp Color TV, Model 1538
6 Standard Electric Fans, Model 0680
VOUCHER PREPARATION:
ZOOM Appliances
345 Rizal Avenue, Manila City Invoice No. 157391 Sold to: Modern Department Store Date: July 3, 20CY
808 Veterans Ave. Terms: 2/10, n/30
Cebu City P.O. No.: 335
PURCHASE INVOICE
Cebu City P.O. No.: 335
Quantity
6 Sony Color TV, Model 2057 6,500.00 39,000.00 6 Sharp Color TV, Model 1538 5,500.00 33,000.00 6 Standard Electric Fans, Model 0680 1,050.00 12,600.00 84,600.00
Plus 10% Vat 8,460.00
VOUCHER PREPARATION:
M odern Depratment Store
808 Veterans Avenue, Cebu City Voucher No. 102 Date: July 3, 20CY
Payee: ZOOM Appliances, Inc. Terms: 2/10, n/30
345 Rizal Ave. FOB Manila
Manila City Due: July 3, 20CY
Date: Details
03-Jul Appliances - Invoice No. 157391 Attached - supporting documents
Total
93,060.00
VOUCHER
Attached - supporting documents
Debit Amount Amount
Purchases 84,600.00 Adjustment Vat Input Tax 8,460.00 Discount
Supplies Net
Salary Expense Approved by: Alan Torres
Recorded by: Marisa Toledo
Credit Amount
Income Tax Withheld Date July 13, 20CY
SSS/PH Withheld Amount: 91,368.00
Check No. 322413
Distribution Approved by: Teresa Santos
approved by: Carlos Paterno Recorded by: Angelo Orosa
Payment Summary
RECORDING VOUCHERS:
Recording Vouchers:
When the voucher, invoice, purchase order, and receiving
report are complete and in agreement, the voucher is recorded in the voucher register. Since the voucher register is used to record the purchase of assets and services, it can be thought of as an enlarged purchases journal; it is also similar to an invoice as an enlarged purchases journal; it is also similar to an invoice regular.
RECORDING VOUCHERS:
The difference between a Voucher Register and Purchases Journal for a merchandising business is:
1. The Voucher Register has paid columns for Date and Check Number while the Purchases Journal has none.
2. Vouchers for Payroll transactions and other payments in cash are entered in the Voucher Register and not in the Purchases Journal.
RECORDING VOUCHERS:
Debit Credit
July 1 101 Star Realty Co. - Rent 605 8,000.00 8,000.00 3 102 ZOOM Appliances 93,060.00 5 103 Manila Power-Utilities 612 2,080.00 2,080.00 Voucher Payable Credit Amount Sundry Accounts VOUCHER REGISTER Date Voucher No. Payee Acct. No. 5 103 Manila Power-Utilities 612 2,080.00 2,080.00 7 104 Standard Supply 1,808.00 9 105 Vinson Appliance Co. 115,742.00 11 106 Roadster Equipment 123 585,300.00 585,300.00 13 107 SM Appliance Center 60,500.00 14 108 National Insurance Co. 105 1,650.00 1,650.00 15 109 Payroll, Tax withheld 211 1,250.00 8,395.00
FILING UNPAID VOUCHERS:
After the voucher is entered in the Voucher Register, the
voucher and the supporting documents (purchase requisition, purchase order, receiving report, and purchase invoice) are stapled together and is then filled in an Unpaid Voucher File, normally by due date. Filing by due date will help management normally by due date. Filing by due date will help management plan for cash requirements and ensure that vouchers are paid on the due date and cash discounts are taken. The unpaid vouchers file serves as the accounts payable subsidiary ledger but
FILING UNPAID VOUCHERS:
Posting from the voucher Register
1. Post each amount from the sundry account, debit and credit columns to the appropriate general ledger account.
2. Insert the date in the Date column and the voucher register
page number (ex. VR1) in the posting reference column of each page number (ex. VR1) in the posting reference column of each general ledger account.
3. Insert the general ledger account code in the Posting Reference column of the Sundry Accounts, Debit or Credit column of the voucher register.
FILING UNPAID VOUCHERS:
Posting from the voucher Register
5. Post each column total except the Sundry Account columns to the particular general ledger accounts indicated in the column headings.
6. Insert the date in the Date column and the voucher register 6. Insert the date in the Date column and the voucher register
page number in the posting reference column of each general ledger account.
7. Insert the general ledger account code immediately below each column total except the Sundry Account columns.
VOUCHER PAYMENT PROCESS:
On the due date, the voucher is pulled from the unpaid vouchers files is given to the person responsible for preparing the
voucher check who reviews the voucher and supporting documents to see that expenditures is proper. The voucher check is then prepared and signed by the authorized person/s and then sent to the payee.
Voucher Check is the special form of check with space for
entering data about the voucher being paid. The voucher check has two parts:
1. The check itself, which is similar to an ordinary check.
CHECK REGISTER:
Check Register is a special journal used to record all checks written in a voucher system. A copy of the used to enter the payment in a check register.
Voucher Purchases Check Register Date Check No. Payee Vo. No. Voucher Payable Debit Purchases Discounts Credit Cash in Bank Credit July 2 322411 Star Realty Co. 101 8,000.00 8,000.00
CHECK REGISTER:
Posting from Check Register
Only summary posting are required from the check register to the general ledger at the end of each month.
1. At month end, foot the amount columns, verify that the total of the debit columns equals the total of the credit columns, and then rule the columns.
columns.
2. Post each column total to the particular general ledger accounts indicated in the column headings.
3. Insert the date in the Date Column and the voucher register page number (ex CK1) in the Posting reference column of each general ledger account.
CHECK REGISTER:
Paid Voucher File
After payment, vouchers are usually filed in numerical order in paid voucher file. Every blank in the Payment column of the
voucher register represents unpaid voucher to be included in the schedule. If the schedule of unpaid voucher total and the
Voucher Payable balance do not agree, use the following Voucher Payable balance do not agree, use the following procedures to trace the error:
1. Verify the total of the schedule.
2. Review the voucher register or the unpaid vouchers file to be sure none were missed or counted twice.
ACCOUNTING FOR RETURNS AND ALLOWANCES:
1. If a complete return is made and a credit memo is received. a. The return is noted on the voucher, the credit memo is attached, and the voucher is placed in the paid voucher file.
b. The return is noted in the Payment column of the voucher register.
register.
c. A general journal entry is made for the return by debiting Voucher Payable and crediting Purchases Returns and
ACCOUNTING FOR RETURNS AND ALLOWANCES:
2. If a partial return is made and a credit memo is received. a. The return is noted on the voucher, the credit memo is attached, and the voucher is returned to the unpaid voucher’s file.
b. The return is noted in the Payment column of the voucher register.
register.
c. A general journal entry is made for the return by debiting Vouchers Payable and crediting Purchases Returns and
Allowances or asset items and Vat Input Tax for items subject to Vat.
ACCOUNTING FOR PARTIAL PAYMENTS:
1. If partial payments (installment) are planned at the time a purchase is made.
a. A separate voucher is prepared for each payment.
b. Each voucher and payment is then recorded in the voucher register and check register in the normal manner.
register and check register in the normal manner.
2. If the partial payment is made after a voucher is created and entered.
ACCOUNTING FOR PARTIAL PAYMENTS:
b. A notation is made in the Payment column of the original voucher in the voucher register.
c. A general journal entry is made to cancel the original voucher by debiting Voucher Payable and crediting Purchases or asset items and Vat Input tax for items subject to Vat.
items and Vat Input tax for items subject to Vat.
d. Two vouchers are prepared and entered in the voucher register.
