Entrepreneurship
ROSE ANN B. FLORENCIO
Subject Teacher
Fundamental Concepts In
Bookkeeping
1. Support all transactions with business
documents.
2. Record the transactions using two-
column journal.
3. Use the proper account Title
4. Observe the guidelines when using the
two-column journal.
Illustrative Example on
Simple Bookkeeping
Let us try to analyze each
transaction and identify the
value received (debit) and value
parted with. After that, a journal
entry will follow.
December 1
Jenny Toledo opened her small laundry shop with
a legal trade name approved by DTI as Modern
Laundry Center. The business has been registered
as non-VAT taxpayer. Jenny rented a space for the
business at Ziga Avenue, Tabaco City. The rental
fee is ₱3,000 per month.
She made the following initial investment:
Cash ₱20,000
Three units of washing machine 45,000
Five units of electric iron 3,000
The Journal entry will be:
December 2
Bought detergents and other materials
needed for washing of clothes,
curtains, blankets, and related items
from Yvone Merchandising as
reflected in the cash invoice #2144
amounting to ₱1,800.
The journal entry for this transaction will be:
December 5
Rendered various laundry
services to walk-in customers
and issued several official
receipts amounting to ₱7,300.
The journal entry for this transaction will be:
December 7
Paid rent for the month of
December 2016; The Official
Receipt No. 844 issued by the
owner of the property showed
₱3,000.
To record the transaction, the entry will appear as
follows:
December 10
Issued Charged Invoice No.
0001 in the amount of ₱38,000
to Izzy Hotel for various
laundry services provided.
The entry in the journal will look as follows:
December 15
Paid the salaries of the laundry
workers for the first half of
December 2016; Voucher No.
005, as supported by the
payroll, showed total salaries
of ₱7,000.
To record the transaction, the entry will appear as
follows:
salaries
December 21
Collected the account of
Izzy Hotel; Issued Official
Receipt No. 10060 for the
full payment received from
Izzy Hotel.
The entry to record the transaction will appear as
follows:
December 23
Paid the following invoices as
supported by various official
receipts for the payment made:
Electric bill ₱3,500
Business permit and licenses 5,000
The entry to record the transaction will appear as
follows:
December 27
Rendered various laundry services to the
following:
Walk-in customers-Official receipts ₱30,000
Angel Convention Center-Charge invoice,
30-day received 55,000
Princess Resort- Charge invoice; received 25,000
The entry in the journal will appear as follows:
December 28
Bought the following from various
suppliers:
Office furniture- Charge invoice #2331 ₱28,000
Laundry supplies- Charge invoice #3855 10,000
The entry in the journal will appear as follows:
December 29
Received a 30-day, 12 percent
promissory note from Hyzel
Apartment for various laundry
services rendered amounting to
₱20,000.
To record the transaction, the entry will appear as
follows:
December 30
Paid the salary of the workers
for the second half of
December, 2016 as evidenced
by the voucher duly supported
by the payroll, ₱9,000.
The entry in the journal will appear as follows:
Activity:
Given the business transactions of Gandang
Ganda Lang Parlor Shop owned by Beauty
Siya, a sole proprietor. Analyze the
transaction by identifying the value received
and value parted with, indicate also the
amount.
Use the following account titles: Asset Account: Cash, Notes
Receivable, Parlor Equipment, Furniture & Fixtures; Liability
Account: Accounts Payable; Capital Account: Beauty Siya, Capital;
Income Account: Beauty Service Income; Expense Account: Taxes
& Licenses, Insurance Expense, Parlor Supplies Expense, Salaries
Expense, Utilities Expense and Rent Expense. Write your answer on
your notebook using the format below.
Date Value Received Value Parted
With
Transactions for the month of January, 2025 are as follows:
January 1, 2025 - Ms. Beauty invested Php500,000 in the
business.
January 4, 2025 - Paid the following:
Business permit - Php 9,500
One-Year Insurance - 12,000
January 7, 2025 – Purchase different kinds of Parlor
Equipment amounting to Php185,000.
January 8, 2025– Purchase the needed Parlor Supplies
amounting to Php75,000.
January 10, 2025 – Purchase tables, chairs, cabinets and other
furniture for the shop on account with Handsome Furniture
Shop amounting to Php88,000.
January 13, 2025 – Rendered services to cash customers
amounting to Php15,000.
January 15, 2025 – Received promissory note for the
wedding services rendered to Natalia Cruz, amounting
to Php50,000.
January 16, 2025 – Paid beautician’s and assistant’s
salary for the first half of the month, amounting to
Php8,500.
January 18, 2025 – Partial payment of the account to
Handsome Furniture amounting to Php44,000.
January 22, 2025 – Received full payment from Natalia
Cruz for the transaction on January 15, 2024.
January 25, 2025 – Rendered services to
various customers, amounting to Php36,000.
January 27, 2025 – Payment of utilities such as
water, electricity, cable and internet
connection amounting to Php7,800.
January 28, 2025 – Payment of shops rental
amounting to Php5,000.
January 30, 2025 – Paid beautician’s and
assistant’s salary for the second half of the
month, amounting to Php8,500.