Ika-walong aralin

Magandang umaga sa inyong lahat, today ay pag aaralan naman natin yung mga
definition or kahulugan ng mga account titles na gagamitin natin sa pagre-record ng
ah transaction sa libro, so tignan muna natin kung nasaan tayo sa ating pag aaral
ngayon. Andito tayo sa pang walong aralin pang walong aralin kahulugan o depinisyon
ng iba't ibang account titles at start tayo ng ating slide show, where ma share
natin yung screen natin so let me share my screen video. Okay, screen share muna
tayo, ito ang ating aralin ngayong araw na 'to, so pang walong aralin, kahulugan
definition o depinisyon ng iba't ibang account titles.

Oh ito na yung mga account titles, account titles are names or titles used to sort
record, and store transaction. Siguro unahin na din yun used to record sort and
store transaction kasi yung record journalizing eh, nauuna yung journalizing,
nauuna yung journalizing sa ahm, teka muna ayaw lumabas ng aking pointer. Okay di
ko makita lang pala, so ito yung pangit pala tong color ng pointer na to let me
change the color of my pointer into blue, yan mas kita. So account titles are names
used or titles used to record, record muna, to journalize eh, tapos sort, ito sa
posting to the ledger, and stored transactions. So ano-ano ba yung gagamitin nating
pangalan, account titles hindi lang sabihin eh pangalan or tawag doon sa ah account
or element ng ah assets liabilities or capital na maglalarawan dun sa transaction.

Ito yung napag usapan natin last time yung account titles commonly used in
business, meron tayong cash, accounts receivable, allowance for bad debts,
supplies, prepayments, equipment, building, accumulated depreciation, and land.
Meron tayo nitong accounts payable for liabilities, notes payable, mortgage
payable, and unearned revenue. Kung sole proprietorship, meron tayong ito yung
capital account natin, corrales capital, corrales drawing. Then we have revenue,
supplies expense, rent expense, utilities expense, bad debts, and depreciation. So
this is a sole proprietorship having service business kasi wala tayong nakitang
merchandise inventory.

So ito na yung pinag aralan natin last time. Oh pag service business pare pareho
lang hanggang dito sa building pareho lang sila ito hanggang do'n sa building pare
pareho lang. Pag merchandising magkakaroon ka ng account na merchandise inventory.
Pagka manufacturing meron kang inventory ng royal crow- raw materials tapos work in
process at tsaka finished goods. Now ito yung mga liabilities so pare pareho lang
walang nabago ke service yan, merchandising yan, or manufacturing yan, pare pareho
they are all the same pagdating sa liabilities. Ito yung sa revenue so makita natin
pagdating sa revenue, service, merchandising, pare pareho yung name ng owner and
then the account, capital and drawing. Ngayon dito sa revenue magbabago kasi kung
ano yung service na pinoprovide yun ang itatawag natin. Ah katulad ng mekaniko
service revenue, kunwari mga CPA professional fees, lawyers, doctors, we call that
professional fees. Kunyari mga ahente avon dealers yan commissions earned and fees
earned. Eh kung nagpapaupa ng bahay, rental income. So nagpapautang ng pera,
interest income. So ito yung pipiliin niyo dito kung ano yung nature ng negosyo
niyo anong bi anong nature ng service na pino provide, so kung ano yung service na
pinoprovide yun yung gagamitin niyo ang title. Eh kunyari CPA ka, alangan namang
rental income eh CPA ka and nagpapaupa ka alangan namang professional fees so kung
ano yung account title na babagay dun sa service na pinoprovide niyo yun ang
gagamitin na account name or account title. Pagdating sa merchandising at tsaka sa
uhh manufacturing pareho lang ang kanilang revenue account sales, tapos kapag may
sinoli ibabawas sa sales, kung magkakaroon ng discount, babawas din sa sales. So
'tong dalawang to ay deduction sa sales so arrive at net sales. So eto, sa expenses
pare pareho lang naman yan ng mga expenses up to miscellaneous pareho, pero
pagdating sa merchandising at sa manufacturing, kung ang ginagamit nilang account
uh ang ginagamit nilang method of recording inventory ay ah periodic, meron silang
account title na purchases, pero kung perpetual ang ginagamit nila wala rin yang
purchases kasi papasok yan sa merchandise inventory. Pero ito kasing ano sa
manufacturing hindi kaagad papasok sa merchandise inventory, papasok talaga siya sa
account na purchases, pero dito sa merchandising pwedeng walang account na
purchases kung perpetual inventory ang ginagamit. Pag uusapan natin yan sa mga
susunod na topic natin pero sa ngayon para maunawaan niyo yung mga expense account
titles bakit may purchases 'yan bakit may purchases kasi meron silang merchandise,
ito merong finished goods, ito purchases nito ginagawa niya ring merchandise at the
end.

So merong sa service wala silang freight-in, freight-out tsaka merchandise

inventory at cost of good sold account kasi nga diretso lang isang napakasimple ng
service na negosyo. Ang service na business, madaling i record pero mahirap i
perform kasi labor mo yun eh mapapagod ka talaga. Sa merchandising naman medyo
madali bebenta mo, bili ka lang bili benta ka lang pero ang accounting mahirap kasi
maraming account title, so meron siyang freight-in, may freight-out, merchandise
inventory, cause of good sold. So parehong sila up to this point cause of good sold
sa manufacturing kaya lang ito yung manufacturing expenses eh so kung manufacturing
yung business meron siyang factory overhead, direct labor, indirect labor, direct
materials and indirect materials expenses.

Oh isa isahin nga ngayon natin ang meaning niyang mga account titles na yan so pag
sinabi nating cash, ano ba ibig sabihin ng cash so ito yung cash. So ang ibig daw
sabihin checking account balance as shown in company records, it includes currency,
coins, checks, received from customers but not yet deposited. Kasi merong account
na cash in bank, so itong cash na to it pertains to cash in custody of the
business, yung nasa kamay pa ng business hindi pa na ide deposito sa bangko. So
pero ito nakalagay din checking account balance as shown in the ah temporary. So
dalawang klaseng cash, cash on hand and cash in bank. So kapag checking account
balance yan, that is cash in bank, tapos kung currency, coins, checks received from
customers but not yet deposited, that is cash on hand. Yung ibang check na to ito
yung tinatanggap natin sa mga customer natin, hindi pa natin na de deposito sa
bangko, that will be considered as cash on hand, di pa na deposit sa bangko eh
although that is a check.

Now accounts receivable, amounts owed to the company for services performed or
product sold but not yet paid for. Nagbebenta ka pero hindi ka nakakolekta kaagad
ng cash ang tawag dun ay accounts receivable.

Merchandise inventory, cost of merchandise purchased but not yet been sold. Ito
yung mga binili mong paninda na hindi mo pa nabebenta, at the end ang tawag diyan
ay merchandise inventory, comfort periodic system pero kapagka perpetual system at
the beginning merchandise inventory na ang tawag.

Sa raw materials inventory, ito yung at the end bibilangin ang natirang raw
materials, kasi ang gagamitin account na pag record sa raw materials will be
purchases. So at the end of the period bibilangin yung raw materials then that will
be ah the ending inventory of raw material. So raw materials inventory is the total
cost of all component parts currently in stock that have not been used in work in
process or finished goods production. There are two sub categories of raw materials
which are direct materials these are materials incorporated into the final product,
for example this is the wood used to manufacture a cabinet or indirect materials,
these are materials not incorporated into the final product but which are consumed
during the production process, for example, this is the lubricant, oils, rags,
light bulbs, and so forth, consumed in a typical a typical manufacturing facility.
Pero i correlate natin itong indirect materials dito sa ano factory ng paggawa ng
cabinet. So sa paggawa ng cabinet yung wood yung direct material mo ang mga
indirect material mo diyan ay pako, glue, or sander yung pangkinis ng kahoy, so
this ahhh ang tawag diyan uhh sand paper yun panglinis ng mga wood, so these are
the indirect materials for the ang ah manufacture of cabinet. Ang ang direct
material mo wood ang mga indirect materials mo diyan pako, ah sand paper, glue. So
anong ibig sabihin yung raw materials natin direct materials yung main component
nung product yung pinaka kitang kita mo dun sa product na ginawa mo, yung indirect
materials alam mong nasa product siya pero hindi siya ganon masyado ka litaw hindi
siya masyadong kita so hindi masyadong napapansin pero alam mong nandun siya at
bahagi siya ng pagbuo ng product.

Next ah we have this work in process inventory, ah nagawan mo na ng proseso yung

mga materials, nabuo mo na pero hindi pa siya ganap na buo para maibenta. So ito
yung tinatawag na work in process inventory, napagsama sama mo na yung raw
materials, labor, and overhead cost pero hindi pa rin siya buong buo para ma
consider mo as finished goods.

So ito yung inventory, yung natira na ganun na produkto na hindi pa natatapos yun
ang tinatawag na work in process invented, so kapag natapos na yan parang
merchandise inventory mo na or finished goods inventory ito yung goods na completed
at pwede mo ng ibenta

Supplies the cost of supplies that have not been used. Supplies that have been used
a recorded in supplies expense, so yung hindi pa yung hindi naubos na supplies ay
yan ang inventory or cost of supplies. Pero kasi merong two ways of recording ng
supplies, pwede mong i record kaagad ang supplies na expense kahit hindi mo pa
nauubos kasi eventually mauubos mo rin naman at kung at the end of the period ine-
expect mo na mauubos mo rin yung supplies, pwede mo siyang i record kaagad as
supplies expense, pero kung masyadong marami yung supplies na binibili at aabot at
the end of the period pwede mo siyang i record na asset supplies. So pag tinawag
mong supplies yon, asset method ang ginagamit, pero pag may record mo siya kaagad
ay supplies expense, ang tawag doon expense method ang ginagamit. Pwede mong
irecord kaagad na expense or asset na supplies.

So prepaid insurance, ito rin pwede mo ring i record kaagad na expense, pwede mo
din i record na asset. So ito yung cost of insurance paid in advance and includes a
future accounting period. So ah kunyari two years yung insurance ah na binayaran mo
so meron kang prepaid na one year, pwede mong i record kaagad na expense na yung
insurance or i record mo as prepaid insurance kasi meron pa tayong tinatawag na
recording of internal transaction or adjusting entries. Do'n sa recording of
internal transactions, bibilangin mo naman din yung magkano yung nag expire eh so
makikita mo magkano yung expense magkano yung prepaid mai aadjust man ang tama. So
pwede mong gamitin itong asset account na prepaid insurance or yung expense account
na insurance expense.

So equipment, cost to acquire and prepare equipment for use by the company. Magkano
ang pagkakabili ng equipment kasama yung transportation expense of course.

Accumulated depreciation, amount of equipment's cost that has been allocated to

depreciation since the time the equipment was acquired. Kapag humingi ka ng
equipment meron ngang useful life tapos over that useful life ah i divide pero cost
by the useful life minus the salvage value of course and you will come up with your
depreciation expense. So yung depreciation expense taon taon yung inire record mo
yun as exh as a deduction from the equipment although hindi directly month dine
deduct sa equipment then inilalagay mo yun sa accumulated depreciation account. So
itong accumulated depreciation account pag pin-resent mo sa financial statement
deduction siya sa equipment na dine-depreciate niya. So ganito taon taon magre
recognize ka ng depreciation expense instead na iki credit mo tong equipment ang
iki credit mo ay accumulated depreciation, so makikita mo sa financial statement
magkano na yung ah mga expenses na nadeduct sa equipment so kapag pinresent ang
equipment kasama palagi ang depreciate accumulated depreciation.

Prepaid insurance, parang meron na tayo nyan kanina noh so let us see oh meron na
don burahin na natin tong pangalawa, done, we're done here tapos na tayo diyan.
So buildings pareho lang din nung equipment, cost to purchase or construct
buildings for use by the company. So ganun din meron siyang accumulated
depreciation so ang tawag diyan sa building office equipment, office ah furnitures
and fixtures, they are called depreciable asset, kasi over the years nasisira sila.

The only asset that cannot be appreciated is the land, on the contrary tumataas pa
yung value ng land, o sa halip tumataas yung value ng land hindi siya bumababa. So
cost to acquire and prepare the land for use yan ang gagamitin nating account title
sa pagpa titulo ide debit mo yung land so yung cost ng land lahat ng cost
associated sa pagbili mo ng lupa ay gagamitin mong account title ay ang land.

Okay eto na tayo sa liabilities, so meron tayong notes, accounts, wages, interest.
So sa lahat ng expenses na hindi mo nababayaran ah you can create the account title
by adding payable, so kung salary yan na hindi mo nabayaran, salaries payable, kung
ah utilities na di mo nabayaran, utilities payable, so idadagdag mo lang yung word
na payable dun sa lahat ng klaseng expenses na hindi mo nababayaran.

Now we go to the accounts payable, ito yung mga pautang mo nagbenta ka o nag
provide ka ng service pero hindi ka nakakolekta, you call that accounts payable.
Amount owed to suppliers, ay sorry uhm nangutang ka pala dito sorry, ah bumili ka
pero walang bayad, nangutang ka so accounts payable. Obligasyon mong bayaran yan
dun sa supplier, wala itong ano wala itong mga dokumento para patunayan na utang to
except dun sa invoice credit, invoice na ibibigay sayo hindi ka ire require ng
promise to pay hindi ka irerequire ng guarantor kasi ito yung accounts payable
tiwala sa mukha mo bilang mangungutang may tiwala sila sayo, so kung may tiwala
sayo character character yung kada character credit you have a good character when
it comes to credit transaction. Pautangin din nila ng walang kahit anong support or
evidence except the OR uh the invoice ino-note lang nila don na utang yun. So
amount owed to suppliers who provided goods and services to the business but did
not require immediate cash payment. Pinautang ka pero kung walang tiwala sayo
hahanapan ka ng notes payable ng note or ano you call that notes payable. Pareho
lang yang accounts payable tsaka notes payable kaya lang ang notes payable may
formal written promise to pay formal written promise to pay. Minsan may interest
yan minsan wala. Ang purpose lang naman yan ay to guarantee your credit standing
hindi ka pa lubos na kilala ng ng supplier, sometimes nire require ka ng notes
payable. Yan yung mga liabilities account na gagamitin.

A mortgage kapagka meron kang naka prenda na real estate property. Umutang ka katol
karaniwan yun sa bangko umutang ka sa bangko sasanla mo ang real property mo
hanggang mabayaran mo yung utang mo tsaka pa lang ibabalik sayo yung titulo ng lupa
mo.

Unearned revenues, ito utang to tinanggap natin kaagad yung bayad pero hindi pa
tayo nakakapag provide ng service or nakakapag deliver ng goods, and yung mga utang
natin. Kaya mga account titles na gagamitin natin sa mga utang natin.

Ito naman ngayon yung sa income, service revenue, kapag ang income mo ay galing sa
services. Amounts earned for providing services to clienrs, either for cash or on
credit. When a service is provided on credit, both this and accounts receivable
will increase. When the service is provided for immediate cash, both this account
and cash will increase. So ang revenue kapartner niyan ay cash or accounts
receivable, kasi nasa double entry bookkeeping tayo hindi natin nire record isang
account title lang, ginagamit natin two or more account titles. Dapat yung total ng
debit account titles ay katumbas ng credit account titles, so hindi tayo pwedeng
gumamit ng isang account title lang because ang ginagamit nating sistema ay double
entry bookkeeping, ang kapartner nitong service is eihther cash or account
receivable. Tatandaan niyo palagi hindi pwedeng isa ang account title na gagamitin
para sa isang transaction, for every transaction there are two or more account
titles affected. Pag isang account uh pag dalawang account titles lang yung ginamit
niyo isang debit isang credit ang tawag diyan ay simple entry, a simple journal
entry, pero kapag gumamit ka ng more than two account titles, you call that
compound entry. Tandaan niyo simple entry isang pair lang ng debit at credit, kapag
more than the more than one debit and one credit that is called compound journal
entry.

Next revenue accounts for mer uhh ito sa merchandising and manufacturing na ito. Na
discuss na rin natin kanina yung sales account ng manufacturing and merchandising.
So sales, it contains the record of all sales transactions. This includes both cash
and credit sales the total account total, the account total is then paired with
sales returns and allowances account to derive at the net sells figure that is
listed in the income statement. So yung sales natin gross ito, so kapagka merong
mga returns and allowances and discounts hindi natin kini credit sa sales hindi
debit hindi debit yung accounts ah ano hindi debit yung act account o sales and
then credit account receivable. Parang yung accumulated depreciation na separate
account siya kung gagamitin mo siya ng sales returns and allowances account at
tsaka sales discount account.

Ito yon, so ito yung sales returns and allowances. Sales returns and allowances, a
contra revenue account that reports merchandise returned by a customer and the
allowances granted to a customer because the seller shipped improper or defective
merchandise. Sales returns occur when customers return deffective, damaged, or
otherwise undesirable products to the seller. Sales allowances occur when customers
agree to keep such merchandise in return for a reduction in the selling price.
These reduce the seller's accounts receivable and is subtracted from sales along
with sales discount. Oh, dalawang klase returns kapag pangit na pangit ibinalik na
talaga ay hindi pwedeng pagtiyagaan, allowances pwedeng pagtiyagaan kasi konti lang
naman yung defect pero babawasan yung amount na dapat bayaran. So return yung total
amount ng ibabawas, allowances reduction of the amount.

Okay this is the sales discount, ito naman wala kang ini return kaya lang nagbigay
ng offer yung seller na kung makakabayad ka within a specific due date eh babawasan
kita ng ten percent, five percent, so ito yung tinatawag na sales discount. Yung
sales discount ini encourage mo yung ahm buyer mo na magbayad ng utang niya within
a specific due date at kapag nagawa yun ng buyer binibigyan mo siya ng reward
binibigyan mo siya ng discount. So itong sales discount na to ay kabawasan to sa
sales na o kabawasan sa account receivable at sa sales, pero hindi directly
binabawas sa sales. Kunyari, instead na debit um sales credit accounts receivable
dahil may sales discount, ipapasok yan sa account na sales discount, tapos itong si
sales discount sa presentation ng ah financial statement will be a deduction from
the sales, gross sales.

Ito na yung mga iba ibang expenses. Salaries, it is incurred for the work performed
by salaried employees during the accounting period. These employees normally
receive a fixed amount on a weekly or annual basis. So kung regular employee yan,
salaries sa ang tawag diyan.

Ito naman mga pack wages salary kaya minsan pinagsasama yung salaries and wages,
ito para sa mga regular employees ito para sa mga per piece per hour employees.
Expenses incurred for work performed by non-salaried employees during the
accounting period. These employees receive an hourly rate or a per piece rate.
Hindi sila kung ano lang yun na perform nila yun lang ang babayaran sa kanila, so
we call the this expense as wages. So minsan separate account and salaries separate
account ang wages pero there are account titles na pinagsasa there are companies or
businesses na pinagsasama na sila, salaries and wages.

Now rent, kung umuupa ka ng kahit na ano, facilities ba yan or anything na

inuupahan kasama diyan lupa, bahay, equipment, then you utilities cost of
electricity meralco, ah water, ah maynilad, so we're maynilad and then meron tayong
wifi di ba, globe or smart, then telephone PLDT, yun yung mga utilities natin.
Tubig, ilaw, kuryente, ah tubig, kuryente, wifi, noong araw wala namang wifi ang
utilities lang ito bigat, kuryente, telepono, tubig, kuryente, telepono, ngayon
tubig, kuryente, telepono, internet.

So ito yung telephone expense kasama yan sa utilities na pero minsan kung malaki
yan naka separate, yung utilities pwede mo naman paghiwa hiwalay yan eh eh ah pwede
din sabihing electricity expense, gas, electricity expense ah telecommunications
expense, pwede mong i ano pero pag sinabi mong utilities lang, wala ka niyang mga
separate account titles yun ang composition ng utilities.

So we have advertising cost incurred by company during the accounting period for
ads, promotions, and other selling expenses, that promotes that promotes the sale
of the business.

So depreciation expense ito yung naip- di ba dun sa asset ito yung naipon na
depreciation, sa expenses taon taon nagre recognize ng depreciation expense para
malaman kung magkano yung nabawas dun sa value ng asset ng binili natin para sa pag
generate o pag ah kakaroon ng income.

Sa this is an expense account for merchandising and manufacturing business wala ito
sa service business kasi ang service business ang binibigay lang niya supplies eh,
so pag supplies dedebit mo yung supplies o na supplies expense to record your
purchases of supplies, pero pagdating sa merchandising and manufacturing gagamit ka
ng account na purchases. A temporary account used in periodic inventory system to
record purchases of merchandise for resale. Purchases of equipment or supplies are
not recorded in the purchases account. This account reports the gross amount of
purchases of merchandise. Net purchases is the amount of purchases minus purchase
returns and allowances but ah purchase returns, allowances, and discount. So kung
mayroon tayong sales returns and allowances, and sales discount mayroon rin tayong
purchases returns, allowances, and discounts. So ginagamit lang ito if using the
periodic inventory system kasi kung perpetual inventory system ang gagamitin mong
account title ay yung merchandise inventory, kung merchandising nga or direct
materials, ide-debit mo na kaagad yung direct materials hindi mo na iki-credit sa
hindi mo na ide debit sa purchases, kasi yung counterpart ng binibili mo sa
manufacturing na merchandise is the direct materials. Direct materials or raw
materials, yung raw materials mo yun yun ang ire record mo kapagka perpetual
inventory system, pero kung periodic i debit mo ay ang purchases account.

Sa cause of good sold, it refers to the direct cost attributable to the procurement
or production of the goods by the business. The cause of goods sold is the cost of
the products that a retailer, distributor, or manufacturer has sold. This account
is used in perpetual inventory system of accounting. Uhm pag perpetual lang, kasi
pag periodic purchases yung ginagamit mo eh so yung purchases minus uh ending
inventory that becomes your cause of goods sold, hindi ka gumagamit ng account
title na cause of good sold sa merchandise merchandising business kung periodic
dahil ah inventory mo ang ipapakita mo. So ang ginagamit mo lang tong cost of good
sold account kapag perpetual, pag periodic hindi, yung account na cost of goods
sold lalabas lang yan sa periodic kung ah kung ano yung ipe present moo na yung
financial statement mo FS na, pero dun sa pagjo journalize mo wala kang makikitang
cost of goods sold kapag ka periodic, tapos at the end of the period cocompute-in
mo yang cost of good sold mo by counting your inventory. Yung purchases mo minus
ending inventory mo that will be your cost of good sold pero hindi na siya account
title na gagamitin mo sa pagre record. ito kasi mga account titles na to ginagamit
natin sa pagjo journal alize so hindi lalabas as journal entry ang cost of goods
sold kung periodic system ang ginagamit, sa financial statement mo na siya
makikita, pero kung perpetual inventory system yan makikita niyo yang account na
cost of goods sold sa pagjo journalize kasi dine debit natin ang ahm sales at kine-
credit natin ang cause of good solds kapag perpetual inventory system diretso ang
pag record sa merchandise inventory at sa cost of goods sold pero sa periodic hindi
indirect kasi ang una mong ide debit mo na diyan ay purchases. magco compute ka to
get the cost of goods sold so sa recording hindi mag aappear ang cost of goods sold
kailangan mag compute ka muna para mo malaman ang cost of goods sold sa perpetual
hindi kasi may ledger ng inventory kung magkano yung binenta mo makikita mo sa
ledger ng inventory ang cost, so doon pa lang alam mo na magkano yung cost kinita
na magko compute.

So ito yung purchase returns and allowances, purchase turns and allowances
temporary contra purchases account used in a periodic inventory system which
represents the amounts of merchandise that were returned to suppliers and the
amounts allowed as deductions by suppliers for goods not returned. So pareho lang
din yung discussion sa sales returns returns kapag sinoli mo ng buo, allowances
pagka iniwan mo sa business pero hihingi ka ng discount or reduction in price kasi
nga may konting diprensya. So yung ah counter kung ikaw ang seller ang tawag sa
binalik sayo ay sales returns, kung ikaw ang buyer ang tawag sa binalik mo ay
purchase returns and allowances. Ganon din tong purchase discount kung ikaw ang
seller that is a sales discount eh ikaw nga ang bumili that is purchase discount.
So you talk about the same animal with the different name with different names so
pareho lang yung concept.

Freight-in, freight it in or transportation in, ito yung nagastos sa pag deliver ng

goods and this is part of the sell ah pag deliver ng goods kung ikaw ang buyer at
ikaw nagbayad ng delivery expense ang tawag mo dyan ay freight in and nagiging part
yan ng cost of goods na binili mo. Kung bumili ka ng worth one thousand na goods at
merong ten pesos na freight in the ten pesos will be added to the one thousand para
makuha mo yung cost ng iyong goods. The shipping cost to be paid okay let's deter
define the shipping cost to be paid by the buyer of the merchandise purchased when
the term sa are FOB shipping point, ang ibig sabihin ng FOB shipping point yung
buyer ang magsho shoulder ng transportation expense. Freight in is considered to be
part of the cost of the merchandise and should be included in the inventory if the
merchandise if the merchandise has not been sold. So part siya ng cost ng goods na
binili natin freight in, tandaan niyo FOB shipping point ang buyer ang magbabayad
ng delivery expense at ang tawag sa delivery expense na yon ay freight in at i aadd
yan dun sa value ng pinamili.

So meron tayong non operating revenues and expenses, so ang business natin buy and
sell pero nagkakaroon tayo ng pautang na cash sa ibang tao at nag e-earn ng
interest yan or yung deposit natin sa bangko nag earn ng interest, ang tawag diyan
ay non operating revenue and expense account. So meron tayong interest revenue
interest and dividends and on bank accounts investments or notes receivable this
account is increased when the interest is earned and either cash or interest
receivable is also increased. So interest revenue debit interest receivable credit
interest revenue, parehong nag increase, increase in interest revenue, increase in
interest receivable.

Gain on sale of assets, yung asset na sinasabi dito hindi ito merchandise, hindi
ito finished goods, ito yung asset na ginagamit mo sa business or hindi mo
ginagamit sa business. So kunyari ah lupa yan sa kinatatayuan ng building mo
binenta mo yun on sale of assets yon, pero kung real estate developer ka nagbenta
ka ng lupa ay hindi gain on sale of asset yon, because ah merchandise mo yung lupa
dahil real estate dealer ka eh. Hahaha hay naku muntik pa kong mag stop, may iihi
sana no kaya na ganyan ako pero let's go back to our lesson meron lang konting
intermission. So gain on sale of assets, ganyan talaga ang online learning sa
online meeting ngayon madaming domestic interventions so please bear with my with
me hindi ko na uulitin tong buo kasi sayang naman so nakita na intindihan niyo na
naman so ituloy na lang natin. Gain on sale of assets, okay na discuss ko na to
kung real estate ka.

Loss on sale of asset if it's the opposite naman kung nabenta mo ng mas mura kaysa
dun sa cost you have a lost on the sale of asset, itong gain you sell it above cost
so mura mo nabili nabenta mo na mahal you have a gain on sale of asset, ito naman
mahal mo nabili mura mo naibenta

Dun sa capital account na discuss na natin na pahapyaw o kahit papaano kapagka sole
proprietorship, yung pangalan plus the account capital, kapagka drawing naman
pangalan din drawing account. So ito yung nagre represent magkano ininvest no'ng
owner dun sa business, ito naman nagre represent magkano ang kinuha ng owner from
the business for personal use. Capital, amount owner invested in the company
through cash or other assets plus earnings of the company not withdrawn by the
owner. Drawing, amount that the owner of the sole proprietorship has withdrawn for
personal use during the accounting period. At the end of the year, the amount in
this account will be transferred to the capital account.

So ito yung partnership dalawa na sila kunyari si terimacor at si macorals ang

partner so pareho lang din ng sole proprietorship kaya lang this time dalawa na,
two or more hindi na katulad kanina na isa lang ngayon oh meron din silang same
drawing and capital. Dalawa dalawa na ang pangalan pagka dalawa at higit pa
partnership na yan but heres the same account capital and drawing.

Ito na yung last item natin will be the corporation. Sa corporation merong
tinatawag na capital stock ahm nilagay ko dito common and preffered pa kasi iyon
yung alam ko pero sa bago ang pangalan ng common ay ordinary shares at ito ang
preferred shares ay preference shares. So meron kayong malaking malaking puhunan
meron kang isang malaking share sa mundo ng business and you get a portion of that,
you call that a capital stock. Kumuha ka, nagbenta ka ng gusto mong mag raise ng
one million capital mag o organize ka ng corporation mo at mag i issue ka ng common
or prefer- uh ordinary shares and preference shares. Issue mo yan sa public, yung
public na bibili sa common o sa ordinary shares and preference shares ng business,
yun yung tinatawag na stockholders. Capital stock is the number of ordinary and
preference shares that a company is authorized to issue. Kung mag-apply ka sa sec,
securities and exchange commission ng number of shares na gusto mong i issue, pag
naaprubahan yan ng securities and exchange commission, then you can issue sa public
ng iyong stocks. The amount received by the corporation when it issued shares of
its capital stock is important in the shareholders' equity section. Hindi na owners
equity section ang tawag, shareholders equity section na. Kung sole proprietoryship
and partnership ah owners equity di ba pagka partnership ang tawag shareholders
equity.

Ano naman yung treasury stock. Treasury stock yung isa uhm capital capital stock,
ito treasury stock. Kumbaga imagine ninyo my mo- malaking buong market diyan at
maraming kapital diyan humingi ka sa sec ng authority na mag issue ng one million,
that is authorized capital stock. In-issue mo yun ngayon yun yung shares of stock
mo, yun yung iyong shares of stock na inissue mo that is your capital stock it is
an authorized capital stock pero hindi pa yan pera, pagka inissue mo na at nag
naging pera na yun yung capital stock mo. Eh ano ngayon yung treasury stock, na
issue mo na pero binili mo uli kasi ayaw mong magbayad ng malaking dividends, ayaw
mong magbayad ng malaking dividends dun sa mga stockholders mag o-offer ka ng ah
opportunity for them to sell back to the business yung mga binili nilang shares of
stock and kapag nabili na yun ng business ang tawag dun ay treasury stock.

Additional paid in capital APIC is the value of share capital above its stated par
value and is an accounting item under share hold- under shareholders' equity on the
balance sheet. APIC can be created whenever a company issues new shares and can be
reduced when a company repurchases its shares. So anong ibig sabihin ng additional
page and capital, may par value yung um shares of stock, hindi lahat ng shares of
stocks since stock ay may par value but there are shares of stock na my par value
and if naibenta yun ng corporation above the par value, yung excess na yun ang
tinatawag na additional paid in capital.

Dividends, a dividend is the distribution or re walk or reward from a por- a

portion of the company's earnings and is paid to a class of its shareholders.
Dividends are decided and managed by the company's board of directors, though they
must be approved by the shareholders through their voting rights. Ang counterpart
ng withdrawals or drawings sa sole proprietorship and partnership ay ang dividends,
kasi bumabalik dun sa investor yung kanyang kinita. Kung kumita yung business
magkakaroon siya ng share, usually yung mga partners naman tsaka sole proprietor
kumukuha lang yan ng pera sa negosyo kapag kumita na, unless of course there are
emer- emergencies. So sole proprietorship and partnership madali lang kumuha kasi
eh papa record mo lang yan eh pero pagdating na sa corporation eh kailangan pa ng
approval ng board members of the board of directors sometimes subject with the
approval of share holders so. Yan yung mga account titles para sa corporation.

Meron pang isang account title, itong retained earnings. Retained earnings are the
profits that the company has earned today, less any dividends or other
distributions paid to investors. This amount is adjusted whenever there is an entry
to the accounting records that impacts a revenue or expense account-counterpart of
the income summary accounts when there are prior years adjustment. So yung retained
earnings account, parang accumulated ano yan earnings accumulated earnings hindi
yan ito yung mga ah income ng business na hindi na declare as dividends. So kunyari
kumita ng one hundred thousand ang dineclare lang na dividends para makabalik sa sa
orders eh fifty thousand, yung fifty thousand the other fifty thousand is a
retained earnings ang another sinabing counterpart siya ng income summary account
kasi kapag um sole proprietorship and partnership at the end of the period, isa-
summarize mo yung revenue tsaka expenses gumagamit ka ng clearing account na income
summary. Dito sa corporation diretso na eh wala na silang clearing clearing account
diretso na lahat ng transaction of prior period sa ahm i'm sorry itong retained
earnings parang ano eh kasi cross between ng income summary account at tsaka ng
capital account. Kasi kung end of the kung end of the ahmm end of the period yung
uhm transaction papasok yun sa income summary account pero kung prior years papasok
sa capital account. Pero dito sama na ahh sa retained earnings account kapag ka
prior years pagka current year ganun din sa retained earnings sa account na papasok
wala ng income summary ganon ba yon or parang pag corporation no actually this is
not a counterpart let me stand corrected on this note. Pag retained earnings
account ito yung account, may nagtitinda kasi ang kulit nitong nagtitinda kailan pa
malapit na ending saka pa nag tinda pero I wont cut my discussion we would continue
will start with the retained earnings. So the retained earnings ah ito yung na
discuss ko na na natira dun sa kinita na hindi na declare as dividend so kapag may
adjustment on prior years dito ipapasok instead na sa capital account ah instead na
sa capital account ipapasok, sa retained earnings account kasi ito yung parang
nagsisilbing capital account ng business. So ito ang capital account talaga ay ahm
ang capital stock lang pero for purposes of recording adjustment on prior years ang
ginagamit nating account ay retained earnings, pero sa income summary ah account pa
rin gagamit pa rin tayo ng income summary account dito sa pag record ng current
periods ah income or laws, oo. Hindi siguro to counterpart ng ano this is not a
counter part of the income summary because the corporation still maintains the
income summary account at the end of the period to record the revenue pero
pagdating sa adjustment on prior years ang gagamitin ay retained earnings account,
pero kung partnership and corporation prior year adjustment will be hindi sa income
summary eh don sa capital account so in a way it is a part of a capital account noh
yung retained earnings ah account is parang yung income na nag accumulate na naging
part ng capital. Kung ihahalintulad natin yan sa sole proprietorship at tsaka
partnership, ang partnership kasi pag kumita at saka sole proprietorship, pag
kumita yung capital niya plus net income plus net income so ah yung current period
ipapasok mo dun sa income summary yung summary na yan kung ano ang resulta ipapasok
mo sa capital. So kapag may prior period adjustment kaa may mga errors ng prior
period ang adjusting account na gagamitin mo ay capital pero sa corporation wala ka
ng account na capital eh, share of stocks na tsaka retained earnings, hindi mo
mapapasok sa kapit sa shares of stock na account ipapasok mo siya sa retained
earnings account. So kung merong prior period adjustment ng corporation instead na
sa capital account mo ilalagay ilalagay mo sa retained earnings account okay.
Pasensya na dun sa maiingay na nagtitinda wala tayong magawa ito kasi ang bahay na
convert na school so maraming ahente sa paligid ligid.

Okay, that ends our discussion at kung may natutunan kayo sa ating discussion today
na maraming intermission, like and subscribe my channel. Ang next topic natin nako
maganda na recording of external transaction na tayo journalizing entries na tayo,
okay have a blessed day ahead and I hope this pandemic ends soon so that we can
have our normal life in the classroom. Mas maganda kasi rin sa class of the same
yung mga bata makikita mo kaagad yung mga reaksyon ng mukha nila kumukunot so pag
parang may confusion at nag a approve kapagka nauunawaan nila so masarap ding
feeling yun eh ngayon kasi computer ka lang tapos yun nga yung mga nagtitinda ng
ulam, dumadaan na sasakyan, tumatahol na aso at tsaka mga manok dito nga samin kasi
province meron pang kuliglig, mas maingay ang kuliglig pati sa gabi wala palaka
naman yan. Okay, that ends of our discussion God bless everyone please don't forget
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you para makatulong din tayo sa iba, God bless everyone have a nice day.