Financial Management and

Basic Bookkeeping
“Making our money grow”

JAYSON B. REYES, MBA, CSSYB

Are you lola Penny or Lola Pilar?
Do you want to have a stable
business?
The road to success is dotted with many tempting parking spaces. ― Will Rogers
Managing Business Enterprise
SLIDE 5

“Some men see things Effectively managing your business enterprise

as they are and say involves many aspects. From the day-to-day to
why. the large-scale annual events or maintenance,
I dream of things that managerial duties are often never-ending. Your
never were and say why solid leadership and understanding of the industry
are a great start, but these alone will not create
not.” solid management in your business.
~ John F. Kennedy
Do Research.
Invest in yourself.
Develop a Business Plan
Be Frugal
Stay Positive
Create your OWN Brand
Engage in support network
Never Give up
Are You Ready?
Budget?
How do we budget?
SLIDE 16
Food Transportation Clothes Utilities

…. and others .
Paano ba tayo mag record ng ating kita at gastos?

Meron ba tayong sistema sa pag rerecord ng

ating mga transaksyon araw araw?

Alam mo ba kung magkano na ang pera ng

negosyo mo sa ngayon?

Nagbabayad ka ba ng tamang buwis?

Paano mo ginagastos ang pera ng negosyo?

Ano ba ang mga maling praktis na nagagawa
natin sa pera ng negosyo?
 Steps in The Accounting Cycle

Analyze source
documents.
Journalize Post entries to the Prepare a trial balance.
transactions in the accounts in the
general journal. general ledger.

Prepare financial statements.

Analyzing Transactions
SLIDE 24
Analyzing Transactions
SLIDE 25
 Analyzing Transactions
Illustration: Leopoldo Medina decided to establish a
sole proprietorship business and named it as Medina
Graphics Design. Medina is a graphic designer who
has extensive experience in drawing, layout,
STEP 1 typography , lettering , diagramming and photography.
He possesses the talent to visually communicate to
a target audience with the right combination of words
and images.
Analyzing Transaction using Financial Transaction
Worksheet
March 1 Medina started his new business by depositing P350,000 in a
bank account in the name of Medina Design at BPI Poblacion
Branch
Financial Transaction is analyzed as follows:
• An entity separate and distinct from Medina’s personal financial affairs is created.
• P350,000 is invested in the business entity. The source of this asset is the
contribution made by the owner, which represents owner’s equity . The equity
account is Medina, Capital
• The dual nature of the transaction is that cash is invested and owners equity is
created. The effect on the accounting equation are as follows:
increase in asset (cash) 350,000; increase in owner’s equity 350,000
Analyzing Transaction using Financial Transaction
Worksheet
March 5 Computer equipment costing P145,000 is acquired on cash basis.
The effect on the basic equation is
Analyzing Transaction using Financial Transaction
Worksheet
March 11 Medina Graphics Design collected P88,000 in cash for designing
interactive web sites for two exporters based inside the Davao
Ecozone
Analyzing Transaction using Financial Transaction
Worksheet
March 16 Medina paid P18,000 to Bills Express, a one-stop bills payment
service company, semi-monthly utilities
Analyzing Transaction using Financial Transaction
Worksheet
March 17 The entity has service agreements with several Netpreneurs to
maintain and update their web sites weekly. Medina billed these
clients P35,000 for services already rendered during the month
Analyzing Transaction using Financial Transaction
Worksheet
March 19 Medina made a partial payment of P17,000 for the March purchase
on account.
Analyzing Transaction using Financial Transaction
Worksheet
March 20 Checks totalling P25,000 were received from clients for billing dated
March 17
Analyzing Transaction using Financial Transaction
Worksheet
March 21 Medina withdraw P20,000 from the business for his personal use
Analyzing Transaction using Financial Transaction
Worksheet
March 27 Received a bill from publishing for P8,000 worth of newspaper
advertisement for the month. Medina will pay this bill next month.
Analyzing Transaction using Financial Transaction
Worksheet
March 31 Medina paid his assistant designer salaries of P15,000 for the month.
 Journalizing Transaction
Step 2  Transactions are initially recorded in chronological order in a journal
before being transferred to the accounts.
 Every company has a general journal which contains
1. spaces for dates,
2. account titles and explanations,
3. references, and
4. two money columns.
Journalizing Transactions
Journalizing Transactions
Journalizing Transactions
Journalizing Transactions
Journalizing Transactions
Journalizing Transactions
Journalizing Transactions
Journalizing Transactions
Journalizing Transactions
Step 3
Posting Transaction
 The entire group of accounts maintained by a
company is referred to collectively as the ledger.
 A general ledger contains all the assets, liabilities, and
owner’s equity accounts.
Posting Transactions
Posting Transactions
Posting Transactions
T - Accounts
Trial Balance
Activity time!!!!!
SLIDE 54
1
2
3
4
5
6
Recording Transactions
SLIDE 55
1
2
3
4
5
6
Recording Transactions
SLIDE 56
1
2
3
4
5
6
Recording Transactions
SLIDE 57
1
2
3
4
5
6
Recording Transactions
SLIDE 58
1
2
3
4
5
6
Recording Transactions
SLIDE 59
1
2
3
4
5
6