PowerPoint Presentation for Bookkeeping.

Lecture Notes

1. KEY BOOKKEEPING
PERFORMING
TASKS

2. BOOKKEEPING
What is Bookkeeping?
• Bookkeeping is the systematic
way of recording financial
transactions of a business.

3. BOOKKEEPER
The bookkeeper is responsible for recording, maintaining,
and updating business records using account titles,
utilizing the Book of Accounts for this purpose.
DEFINITION OF TERMS
BOOK ACCOUNTS
The book of accounts is composed of the Journal and Ledger.
Journal
Referred to as the book of original entry.

4. General
journal
It is the most basic journal which provides columns for date,
account titles and explanations, folio or references and a
separate column for debit and credit entries.
DEFINITION OF TERMS
I

5. Debit
The left-hand side entry, also known as "Value
Received," indicates that when cash or non-cash
items are received, they must be recorded in the
debit column, indicating an increased debit
balance.
DEFINITION OF TERMS
Credit
The right-hand side entry, also known as "Value Parted
With," indicates that when cash or non-cash items are
given, they must be recorded in the credit column,
indicating an increase in the credit balance.

6. RULES OF DEBIT AND CREDIT
Journalizing business transactions requires understanding the rules of Debit and Credit,
abbreviated as DR and CR respectively, to ensure accurate recording and sound
decision-making, and it is crucial for the bookkeeper to master the normal account
balance.
The following steps will be undertaken in determining account balances for every account
title such as cash, account receivable, etc.:
1. Add all the debit side to generate total debit
2. Add all the credit side to generate total credit
3. Subtract total debit to the total credit.
4. Determine the balance of each account.

7. Assets
-Anything that is owned or controlled by a individual,
corporation, or country to generate economic benefits.
- Economic resource for a company.
DEFINITION OF TERMS
Liability
-A loan that you need to pay back.
- Owed to investors or banks that issued loan.
Owner's equity
- Money value of an owner's interest in property
after liabilities are accounted for.
-Net Income

8. Revenue
- Refers to money brought into a company by its business
activities. Revenue is commonly known as service income or
fees, sales, and sales discount.
DEFINITION OF TERMS
EXPense
- Refers to the cost of operations that a company incurs to
generate revenue. Common expenses include payments to
suppliers, employee wages, factory leases, and equipment
depreciation.

9. T- ACCOUNT
The "T" Account is a convenient and fast method for posting journal
entries to the ledger. It is divided into two sides: the debit side, which
shows the received value, and the credit side, which shows the value
parted with. The account is named after the capital letter "T" and has
an account title above it.

10. GENERAL JOURNAL