INTEGRATED ACCOUNTING

MID TERM PERIOD

LEARNING MODULE ATTACHMENT (DO NOT COPY)

BOOKS OF ACCOUNTS
• JOURNALS
Accounting record where the business transactions are first recorded in the journal “ book of original
entries”

Journals are classified into the following:

1. Special Journal – use to record transaction in similar nature
Examples : Sales Journal, Purchase Journal, Cash Receipts Journal, Cash Disbursements Journal

2. General Journal – use to record all other transactions that cannot be recorded in the special journals.
Examples of such transactions include adjusting entries, correcting entries, reversing entries and the
like.

• LEDGER
Systematic complication of a group of accounts. It is used to classify the effects of business transactions
on the account. The ledger “ book of secondary entries or book of final entries”. The process of
recording in the ledger is called “posting”

Ledger are classified into the following:

1. General Ledger – contains all the accounts appearing in the trial balance
2. Subsidiary Ledger – provides a breakdown of the balances of controlling accounts.
Controlling accounts is one of which consists of a group of accounts with similar nature.

General Ledger Subsidiary Ledger

Account Receivable – Customer A

P20,000.00

Account Receivable Account Receivable – Customer B

P100,000.00 P30,000.00

Account Receivable – Customer B

P50,000.00

THIS FORM IS FOR INSTITUTIONAL PURPOSES ONLY!

Formats of Books of A ccounts:
General Journal:
Date Column – indicates the
Account Numbers Column
recording dates of the Account Titles Column – the
– The corresponding
transactions. accounts affected by the
numberings of the accounts
Transactions are recorded in business transactions are
affected by the transaction
the journal chronologically, recorded in this column
are listed here
meaning arranged by dates

GENERAL JOURNAL
Date Account Titles Account Debit Credit
No.

8/12/2022 Bad Debts Expenses 540 250.00

Allowance for Bad Debts 125 250.00

To record the bad debts expense for the period

Debit & Credit Column - the

monetary affects of the
transaction to the accounts are
recorded here

Note : Other columns my be included, such P.R. (posting reference) which is used when the entries are
posted, that is until the amounts are transferred to the related ledger accounts.

GENERAL JOURNAL
Date Account Titles Account P.R. Debit Credit
No.
5/12/2022 Cash 110 250,000.00
Reyes Capital 310 250,000.00
To record the initial investment.

DOUBLE-ENTRY SYSTEM
• Each transaction is recorded in two parts - debit and credit

Simple and Compound Entry

Compound journal entry is an accounting entr y which affects three or more account heads.
- is actuall y a combination of two or more si mple journal entries but inst ead of recording
numerous separate journal entries, it is better to merge multiple journal entries of a single
accounting event into a single compound entr y because it saves time and keeps the related debits
and credits in one place in the journal.

Simple journal entry has just two rows i.e. one debit and one credit, whereas a compound journal
entr y has three or more rows.

THIS FORM IS FOR INSTITUTIONAL PURPOSES ONLY!

 TYPE OF ACCOUNTS INCREASE DECREASE
(NORMAL BALANCE)
ASSETS DEBIT CREDIT
LIABILITIES CREDIT DEBIT
EQUITY CREDIT DEBIT
INCOME CREDIT DEBIT
EXPENSE DEBIT CREDIT

TYPES AND EFFECTS OF TRANSACTIONS

1. Source of Assets (SA) - Asset increases, Liabilities or owner’s equit y al so increases
Ex. Purchase of supplies on account
2. Exchange of Assets (EA) - One asset account increases and anothe r asset account decreases
Ex. Acquired equipment for cash
3. Use of Assets (UA) - Asset decreases, liabilities or equit y also decreases
Ex. Paid salaries of emplo yees
4. Exchange of clai ms (EC) - Liabilities or equit y account increases and another liabilitie s or
equit y account decreases.
Ex. Received utilities bill but did not pa y

Journalizing-process of recording a transaction

Illustration: The following are the transactions for Wedding “R” us during the month of May.
The double -entr y s yste m will be used.

Initial Investment (Source of Assets)

May 1 Esterlina Gevera is a social entrepreneur from Dr Cr
the South. She is into a lot of interesting causes. Her
fine taste is preeminent such that she is considered an Cash (A) P250,000
authority in planning weddings. Upon the advice and Gevera, Capital (OE) P250,000
prodding of an esteemed colleague, Gloria Detoya, Gevera
decided to organize her wedding consultancy. She invested P250,000 into this entity

Rent paid in advance (Exchange of Assets)

Dr Cr
May 1 Rented office space and paid two
Prepaid Rent (A) 8,000
month’s rent in advance, P8,000
Cash (A) 8,000
Notes issued for Cash (Source of Assets)
May 2 Esterlina Gevera issued a promissory note for a Dr Cr
P210,000 loan from Metrobank. This availment will be used Cash (A) 210,000
for the acquisition of a service vehicle. The note carries a 20% Notes Payable (L) 210,000
interest per annum. The arrangement with the bank is that both
the interest and the principal are payable in full in one year.

Service vehicle Acquired for Cash (Exchange of Assets) Dr Cr

May 4 Acquired service vehicle for P420,000
Service vehicle (A) 420,000
Cash (A) 420,000

Insurance Premiums Paid (Exchange of Assets) Dr Cr

May 4 Paid Prudential Guarantee and Assurance, Inc. Prepaid Insurance (A) 14,400
P14,400 for a one-year comprehensive insurance coverage Cash (A) 14,400
on the service vehicle.

THIS FORM IS FOR INSTITUTIONAL PURPOSES ONLY!

Office Equipment Acquired on Account (Exchange and Source of Assets)
May 5 Acquired office equipment from Fair and Square
Dr Cr
Emporium for P60,000; paying P15,000 in cash and the
balance next month. Note: A compound entry is needed for Office Equipment (A) 60,000
this transaction. Cash (A) 15,000
Accounts payable (L) 45,000

Supplies Purchased on Account (Source of Assets)

May 8 Purchase supplies on credit for P18,000 from San Jose Dr Cr
Merchandising Supplies (A) 18,000
Accounts Payable(L) 18,000

Accounts Payable Partially Settled (Use of Assets) Dr Cr

May 9 Paid San Jose Merchandising P10,000 of the amount Accounts Payable (L) 10,000
owed. Cash (A) 10,000

Dr Cr
Revenues Earned and Cash Collected (Source of Assets) Cash (A) 26,400
May 10 Coordinated and finalized simple bridal arrangements Consulting Revenues(OE:I) 26,400
for three couples and collected fees of P8,800 per couple.
Services include prospecting and selecting the church and reception location, couturier, caterer, car service, flowers,
souvenirs and invitations.

Salaries Paid (Use of Assets) Dr Cr

May 13 Paid Salaries, P6,600. The entity pays salaries every two Salaries Expense (OE:E) 6,600
Saturdays Cash (A) 6,600

Unearned Revenues Collected (Source of Assets)

Dr Cr
May 15 The entity is earning additional revenues by
referring consulting clients to friendly hotels, caterers, Cash (A) 10,000
printers, and couturiers. Received P10,000 advance fees Unearned Referral Revenues (L) 10,000
for three clients referred.

Revenues Earned on Account (Source of Assets) Dr Cr

May 19 Coordinated and finalized elaborate bridal
Accounts Receivable (A) 36,000
arrangements for three couples and billed fees of P12,000 Consulting Revenues (OE:I) 36,000
per couple. Additional services include documents
preparation, consultation with a feng shui expert as to the ideal wedding date for prosperity and harmony, provision for
limousine service and honeymoon trip.

Withdrawal of Cash by Owner (Use of Assets) Dr Cr

May 25 Gevera withdrew P14,400 for personal expenses Gevera Withdrawals (OE) 14,400
Cash (A) 14,400

Salaries Paid (Use of Assets) Dr Cr

May 27 Paid salaries, P7200 Salaries Expense (OE:E) 7,200
Cash (A) 7,200

THIS FORM IS FOR INSTITUTIONAL PURPOSES ONLY!

Expenses Incurred but unpaid (Exchange of Claims) Dr Cr
May 30 Received the ICC-Bayan Tel bill, P1400 Utilities Expense (OE:E) 1,400
Utilities Payable (L) 1,400

Accounts Receivable Partially Collected (Exchange of Assets)

May 30 Received P24,000 from two clients for services Dr Cr
billed last May 19 Cash (A) 24,000
Accounts Receivable (A) 24,000

Dr Cr
Expenses Incurred and Paid (Use of Assets)
May 31 settled the electricity bill of P3,000 for the month Utilities Expense (OE:E) 3,000
Cash (A) 3,000

THIS FORM IS FOR INSTITUTIONAL PURPOSES ONLY!

 LEARNING ACTIVITY #02
Name: Score:
Program / Course: Class Schedule:
Year & Section: Contact No. / FB Account:
Residential Address:

Type of Activity (check or choose from below)

Concept Notes Laboratory Report Portfolio
Skills: Exercise / Drill Illustration Others:___________________

Activity Title : __________________________________________________________________

Learning Target : ________________________________________________________________
References (Author, Title, and Pages) :_______________________________________________

I. TRUE-FALSE STATEMENTS
_____ 1. The three books of acc ounts are journal, ledger and account.
_____ 2. The ledger is called “books of original entries”.
_____ 3. An account that necessaril y needs a breakdown is called con trolling accounts
_____ 4. The s ystem of recording used in f inancial reporting is called multiple -entr y s yste m.
_____ 5.

II. IDENTIFICATION
Instruction: Indi cate how the accounts listed below are increased e.i. DEBIT or CREDIT
Account Titles INCREASED BY
1. Cash
2. Sales
3. Accumulated Depreciatio n
4. Depreciation
5. Inventor y
6. Owner’s Equit y
7. Rent Expenses
8. Rent Income
9. Interest Receivable
10. Interest Expenses
11. Prepaid Rent
12. Owner’s Drawings
13. Accounts Payable
14. Unearned income
15. Cost of sales
16. Equipment
17. Notes Payable
18. Insurance Expenses
19. Prepaid Insurance
20. Gains
21. Notes Receivable
22. Land
23. Building
24. Freight Out
25. Furniture and Fixtures

THIS FORM IS FOR INSTITUTIONAL PURPOSES ONLY!

III. ILLUSTRATI ONS:
Assume you are to start up a restaurant and coffee shop business. Make a sample chart of
account for the business entity.

THIS FORM IS FOR INSTITUTIONAL PURPOSES ONLY!

 LEARNING ACTIVITY #03
Name: Score:
Program / Course: Class Schedule:
Year & Section: Contact No. / FB Account:
Residential Address:

Type of Activity (check or choose from below)

Concept Notes Laboratory Report Portfolio
Skills: Exercise / Drill Illustration Others:___________________

Activity Title : __________________________________________________________________

Learning Target : ________________________________________________________________
References (Author, Title, and Pages) :_______________________________________________

Journalizing Transactions (Write your answer in a journal)

J & J Landscaping Service has the following completed transactions:

March 1 Joner deposited P200,000 in a bank account in the name of the business.
4 Jhon invested personal gardening equipment, with a fair market value of P10,000, in the business.
6 Bought a trailer on account from Sala Sales, P8,500.
7 Paid rent for the month, P6,000.
9 Bought a backhoe from Mobile Equipment, P62,000, paying P30,000 in cash and the balance on account.
10 Bought liability insurance for one year, P9,000.
13 Performed landscaping services on account for Tin&Ton Company, P34,200.
14 Bought supplies on account from office decor. P2,400.
15 Performed landscaping services on account for Eins University, P25,600.
17 Received and paid the bill from De Leon Services for gas and oil for the equipment, P1,400.
19 Performed landscaping services for St. Paul University on cash basis, P18,800.
22 Paid accounts to Sala Sales, P4,000.
24 Collected accounts from Tin&Ton Company, P7,000.
28 Performed landscaping services on account for Gucela Company, P16,250.
30 Paid the salaries of the employees, P13,400.
29 Received and paid the telephone bill, P1,8610.
31 Joner withdrew cash for personal use, P14,000.

Required:
Prepare the journal entries for the March transactions.
Use the following accounts:
110 Cash 410 Landscaping Revenues
120 Accounts Receivable 520 Salaries Expense
130 Prepaid Insurance 530 Rent Expense
150 Equipment 540 Gas and Oil Expense
210 Accounts Payable 550 Supplies Expense
310 Joner, Capital 560 Utilities Expense
320 Joner Withdrawals 570 Miscellaneous Expense

THIS FORM IS FOR INSTITUTIONAL PURPOSES ONLY!

 LEARNING ACTIVITY #04
Name: Score:
Program / Course: Class Schedule:
Year & Section: Contact No. / FB Account:
Residential Address:

Type of Activity (check or choose from below)

Concept Notes Laboratory Report Portfolio
Skills: Exercise / Drill Illustration Others:___________________

Activity Title : __________________________________________________________________

Learning Target : ________________________________________________________________
References (Author, Title, and Pages) :_______________________________________________

Journalizing Transactions (Write your answer in a journal)

Mr. Ki m Tae yung has started operating a service business in 2020. His compan y, VTS Co mpan y is
engaged in pro viding services t o its client. The following w ere VTS Compan y’s transactions in
Ma y 2020.

Ma y 1 Invested P700,000 in the business

3 Went to various g overn ment agenci es to register the business and paid P10,000.
6 Purchased supplies worth P 100,000 paid in cash
7 Purchased supplies worth P 20,000 on account
11 Rendered ser vices to various client for P60,000 received cash.
12 Rendered ser vices to various client for P 20,000 on account.
14 Paid salar y of emplo yee for the first half of the month, P4,000.
17 Paid supplier half of the total amount in Ma y 7 transac
21 Received p romissor y note from the client on M a y 12 transaction, who was not able
to pay within 8 days from the date of the transaction. Principal i s P20,000 with t he
interest of P2,000
25 Received payment on the promissor y note of Ma y 21.
29 Purchased equipme nt worth P100,000 b y issuing a promissor y note
30 Paid the salar y of emplo ye e for the se cond half of the month, P4,000
31 Paid Mera lco and Ma ynilad for utilities bill t otaling P 5,000
Withdrew P12,000 from the business for p ersonal use

Requirements:

Journalize the above transactions using the following account titles:

110 Cash 410 Service Income
120 Accounts Receivabl e 430 Interest Income
130 Notes Rece ivable 520 Salaries Expenses
150 Supplies 530 Taxes and Licen ses Expenses
210 Accounts Payab le 540 Supplies Expense
220 Notes Payable
310 V, Capital
320 V, Withdra wal

THIS FORM IS FOR INSTITUTIONAL PURPOSES ONLY!