HOW TO

PREPARE
JOURNAL ENTRY
for SINGLE
PROPRIETORSHI
P
Prepared by: MARIA CECILIA P. PAGANA

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF EDUCATION
Region IV-A CALABARZON
LUIS PALAD NATIONAL HIGH SCHOOL
City of Tayabas

BOOKKEEPING NC III
Unit of Competency

JOURNALIZE TRANSACTIONS

INTRODUCTION
This unit covers the knowledge,
skills and attitudes in recording
business transactions in an
accounting journal.

LEARNING OUTCOME
LO3. PREPARE JOURNAL ENTRY

OBJECTIVES
At the end of the lesson, the
trainees are expected to:
1. Record transactions in a general
journal.
2. Analyze business transactions

Equipment

Equipment
1. Laptop with Microsoft excel
application software

MATERIALS

MATERIALS
2. Calculator

3. Pen

MATERIALS
3. Journal
Page:
_____

PROCEDURES IN
PREPARING JOURNAL
ENTRY

SAMPLE TRANSACTION #1

April 1, 2016- Carlen opened a

repair shop with a cash
investment of P100,000.

STEP 1
The date of the transaction is entered in the date column.
J1

GENERAL JOURNAL
Date
2016
April 1

Account Titles and Explanation

Cash
Mr Rose, Capital
Invested cash in business.

Ref.

Debit

Credit

700,000
700,000

STEP 2
The debit account title is entered at the extreme
left margin of the Account Titles . The credit
account title is indented on the next line .
J1

GENERAL JOURNAL
Date
2016
April 1

Account Titles and Explanation

Cash
Mr. RoseCapital
Invested cash in business.

Ref.

Debit

Credit

700,000
700,000

STEP 3
The amounts for the debits are recorded in the Debit
column and the amounts for the credits are recorded in
the Credit column.

J1

GENERAL JOURNAL
Date
2016
April 1

Account Titles and Explanation

Cash
Mr Rose, Capital
Invested cash in business.

Ref.

Debit

Credit

150,000
150,000

STEP 4
A brief explanation of the transaction is given.

J1

GENERAL JOURNAL
Date
2016
April 1

Account Titles and Explanation

Cash
Mr Rose, Capital
Invested cash in business.

Ref.

Debit

Credit

150,000
150,000

ANALYSIS OF TRANSACTION #1
INCREASED ASSET.INCREASED
CAPITAL
Increased in asset is recorded
by a debit to cash. Increased
in capital is recorded by credit
to capital.

TASK
Direction: Journalize the following Transactions and
make an analysis of the effect in the accounting
equation.
April 2-Paid P250 for newspaper advertising
announcing the opening of her shop.
April 3- Purchased office tables, and a chairs and filing
cabinets from Cruz Furniture on credit, P 6 000
April 5- Completed repair work for R. Gil on credit,
P1 200.