Performance Task: RECORDING TRANSACTIONS OF MERCHANDISING and Bookkeeping Website

Don’t be dependent on the things which are temporary.

According to WIN Ballada, CPA, MBA,

Recording Business Transactions

Transaction Analysis (Step 1)

Identify the transaction from source documents.
Indicate the accounts - either assets, liabilities, equity, income or expenses - affected by the transaction.
Ascertain whether each account is increased or decreased by the transaction.
Using the rules of debit and credit, determine whether to debit or credit the account to record its increase or decrease.

Reference:

Ballada, W. (2013). Source Documents. In W. Ballada, Basic Accounting. DomDane Publishers and Made Easy Books.

I felt relieved when I saw my score and my paper. I passed the PT! But I am somewhat disappointed because my classmates got higher score and I also got a perfect score in the scaffold, that’s why I am wondering why. Did I lack understanding about the topic?

While we are doing the Task Sheet #1 Preparing the Trial Balance according to our PT, we are scanning our worksheets by pair. As we are scanning our own worksheets and telling what will be recorded for the T-Account, some items were wrongly checked. I only knew that Sir have wrongly checked it when we’re now comparing our worksheets with my partner. I went to Sir and told him that my answers in some transactions are wrong and it shouldn’t be considered as correct because it is obvious that it’s really wrong. I compared it with Shane and my other classmates, so I will know the correct answer.

I am contented with my score but as I am raising some discrepancy regarding the corrections that Sir Randy have made, random negative thoughts rushed into my mind. I felt worried; overthinking of what if I can’t passed the NCIII of Bookkeeping.

As I am reflecting with my paper now, I am asking myself why did I arrived at those answers with the transactions I’ve answered wrong and telling that it is just easy. I guess that I am pressured while I am recording the transactions. Sir told us that it is really tricky and it is! I should have read all the transactions first before recording.

35/50 These are the transactions I answered wrong. First, the September 3 transaction which states that the business is recording the merchandise bought as initial inventory. I thought that if it is the term “bought” stated there, cash will be credited but it should be account payable. Next, the September 5 transaction which tells that the business delivered merchandise with terms; FOB destination with freight cost. I debited note payable. It should be account payable. Third, the September 11 transaction which states that the business received interest bearing note, payable in 10 days. I should have credited sales. This is the transaction which I’ve got really confused. Fourth, the September 20 transaction which states that the business received the full payment. I don’t know where I’ve got 5400 as the interest income because I computed it now and got the answer of 3780 as the interest income. Fifth, the September 25 transaction which states that the owner of the business withdrew 48000 worth of merchandise for personal use. I credited cash in which I should have credited purchases because the owner withdrew 48000 worth of merchandise. Sixth, the September 27 transaction which states that the business paid GADGET CENTRAL. I debited purchases because I thought I have received purchases but it should be account payable which is debited. Lastly, the September 30 transaction which states that the business paid the account to CRISPIN in full. I relied on my notes which is telling me that I will debit account payable and credited cash and purchase discount in which I should have debited note payable and interest expense, and credited cash. I got 3/4 in the neatness because I have errors.

I really need to exert more effort on studying and practice how to record transactions of merchandising business and analyze how to do it correctly. I learned that I should not be dependent on my notes because it’s only my guide and time will come that it will be removed. Try and try until I succeed and I shouldn’t give up while learning from my mistakes.

27/28 I was overwhelmed when I saw my score. “Log-out is excellent!!! Reflections and learnings are awesome!!! Sniffets are remarkable... :)” Those were the comments given by my teacher, Sir Randy Palestina. Thanks to Sir! So much grateful to end this first quarter!