BOOKKEEPING II

BOOKKEEPING II

Grade 8 students

Second Grading Course Outline

11.     Debit and Credit

22.     T – account

33.     Trial Balance

44.      Income Statement

55.      Elements in income statement

66.     Parts of T – account and income statement

Hello students!

Due to the crisis happened these past weeks, our lessons to be discussed were greatly affected. We discussed already the 3 topics (debit and credit system, T-account and the Trial balance).The last lessons we tackled is about Trial balance.

TRIAL BALANCE – is a two column schedule which prepares the total of all debit balance with the total of all credit balance.

INCOME STATEMENT

- May be defined as a summary of the revenue, expenses and net income or net loss of a business entity for a specific period of time.

The element of income statement:

11.     Revenue- the increase in capital resulting from the sale of goods or rendering of services by the business. In amount, the revenue is equal to the cash and receivables gained in compensation for the goods sold or services rendered.

22.     Expenses – the decrease in capital caused by the business’s revenue-producing operations. In amount, the expenses is equal to the value of goods and services used up or consumed in obtaining revenue.

33.     Net income – The increase in capital resulting from profitable operation of a business: It is the excess of revenues over expenses for the accounting period.

44.     Net loss – The decrease in capital resulting from the operations of a business. It is the excess of expenses over revenue for the accounting period.