Fabm2 Q2 M4 - 4 Csef

Name:____________________________________________________ Grade Level:_______________ Stand:________
FUNDAMENTALS OF ABM 2
Accounting Practice Set
Let us review the two types of journal, the general journal and the special journal. In contrast to general journal,
the purpose of the special journals is to increase efficiency and prevent redundancy in recording transactions in the
general journal. For example, a business may have ten credit sales transactions in one day. Without a sales journal, this
will require the recording of the following journal entries ten times in one day.
The sales journal is used to record only credit sales and not cash sales. In the same vein, purchase journal used
to record only credit purchases and not cash purchases. This is because all cash transactions are recorded in the cash
receipts and cash disbursement books. To record purchases and sales made in cash in the purchase and sales journals
will mean double recording because these are already recorded in their respective cash books. It will result in
inefficiency and complications.
Review the previous discussions about the different kinds of bank forms and the accounting process because in
this lesson you make adjusting and closing entries, preparing trial balance and worksheets.
Let’s take a look on the flowchart below.

 Purchase request – to document the processes involve prior to sending a confirmed order to the
seller. This may include getting quotations from various suppliers and securing budgetary approval to
ensure there is funding for the purchase.
 Check vouchers – used to document the disbursement process. Used to document the following
reconciliation process: orders are authorized, deliveries are from valid orders, and purchase invoices
represent actual deliveries and agreed upon price.
2. External business forms – forms used by both buyer and seller.
 Purchase order – a form prepared by the buyer and sent to the seller to document the order and
agreed upon terms of the purchase.
 Delivery receipts–a form prepared by the seller, with a copy given to the buyer, to document the
delivery of the items ordered.
 Purchase /Sales invoice –It contains information on the prices of the items delivered and the terms
of the purchase. This should be consistent with the information on the purchase order. The purchase
invoice
The flowchart and sales
shows how invoice
businessare the same form.
transactions It is referred
are recorded, to as and
classified purchase invoice by the buyer because it
summarized to become financial statements. Business forms are used to documentform is referred to as sales invoice by
documents its purchase transaction. On the other hand, the same
the seller
business transactions. to document
It contains its salerelevant
information transaction.
to the transaction such as

date of transaction, items receipts
Official bought or–sold,
usedprice, tax and name
to document cash of buyer andThe
transaction. seller.
entity receiving the cash will prepare the
More importantly, business forms document accountabil ity – identification of
Official Receipts (OR). The entity paying will receive the OR as evidence of payment mad
personnel who performed specific functions related to the transaction. The business
forms also show that established policies and procedures are followed in
Associate the following business forms with the respective accounting books:
implementing the transaction.
Business Forms Accounting Books
Different kinds
Check of business
voucher forms package includes
(check voucher Cash
1 . Inter purchase request,
nal business formspurchase order,
– forms useddelivery receipts
only within the business. disbursement
and purchase invoice), suppliers’ official receipt books
received for cash payment.
Official receipt issued for cash payment and cash Cash receipts
register tapes. books
Sales invoice issued to customers. Sales journal
Purchase invoice received from seller. Purchases journal
Go through the instruction to fill up the accounting practice set. This will normally include the following:
Fill out the business and bank forms to document the given business transactions.
Record the business transactions in the appropriate journal. Use the general and special journals
provided in the accounting practice set. Post the journal entries in the appropriate subsidiary ledgers
and general ledger accounts.
Summarize the ledger accounts and list the balances on the trial balance.
Record the necessary adjusting entries. Information to prepare the adjusting entries are normally provided
in the accounting practice set. - Prepare the financial statements from the trial balance.
Prepare necessary closing entries and record on the general journal and ledger.
You may perform financial statement analysis of the completed financial statements.
You may use MS Excel for journal, ledger, preparation of the worksheet, trial balance and the financial
statements.
What’s More
Activity 4.1. Identify Me
AngTindahan Co. is a wholesaler of office and school supplies. The following are the transactions of AngTindahan
Co. for the first month of its operations. All cash disbursements are made by bank check. Assume perpetual inventory
method is used.
Requirements:
1. Identify the following and indicate on the spaces provided:
a. Business or bank forms to be used by AngTindahan to document the above transactions.
b. Journal to be used to record the original entry for the respective transactions.
2. Prepare the journal entry (debit-credit format) to record the above transactions. Use only the accounts listed on
the chart of accounts given below.
What I have Learned

Activity 4.2 Provide Me
1. Fill up the relevant forms based on the answer in 1a. Format of the forms are provided below. Reproduce the
necessary forms. Follow the numbering instructions.
2. Based on your answer in 1b, record the transactions in the appropriate journals. Formats are also provided
below.
3. Post the journal entries in the appropriate subsidiary ledgers and general ledger accounts. Formats are also
provided below.
What I can Do
Activity 4.3 I Can Do This !
1. Record the following adjusting entries.
a. Accrual of one -month rent

b. One month depreciation of laptop compu ter. Estimated life is 5
years.
c. Accrue employee salary, P 7,000
2. Prepare the financial statements from the trial balance.

4.
Summarize the ledger accounts and list the balances on the trial balance.
3. Prepare necessary closing entries and record on the general journal and ledger.
4. Perform financial statement analysis on the completed financial statements.

Accounting Books
Worksheet

Fabm2 Q2 M4 - 4 Csef

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Name:____________________________________________ Grade Level:_ Stand:__

Let’s take a look on the flowchart below.

2. External business forms – forms used by both buyer and seller.

What I have Learned

Activity 4.3 I Can Do This !

1. Record the following adjusting entries.

a. Accrual of one -month rent

2. Prepare the financial statements from the trial balance.

4. Perform financial statement analysis on the completed financial statements.

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