The six books, and how they connect
3 quick questions. Pick an answer to see why.
1. Kuting Kitchen pays ₱1,200 cash for packing tape on the spot. Which book?
It's paid on the spot, so it's money out. The purchase journal is for things bought now and paid later.
2. What does the general ledger do that the journals don't?
Journals record events in date order; the ledger gathers them by account, so you can see where Cash, Sales or Output VAT stands.
3. Where do the numbers on the 2550Q VAT return come from?
The return uses the VAT accounts built up from the journals and posted to the ledger, which is why every sale and purchase must be recorded first.