TESDA Bookkeeping NC III Cheat Sheet

Journalize Transactions

Not published of exam
Debit + Credit Source Documents Journal Picker Inventory Systems

Post Transactions

Not published of exam
Ledger Basics Control Accounts Posting Workflow Error Checks

Prepare Trial Balance

Not published of exam
Adjusting Entries Trial Balance Worksheet Flow Error Search

Prepare Financial Reports

Not published of exam
Financial Statements Closing Cycle Cash Flows Ratio Basics

Review Internal Control System

Not published of exam
Internal Controls Bank Reconciliation Petty Cash Compliance Reports

Quick Facts

Qualification Bookkeeping NC III
Owner TESDA
Code SOCBKP307
Assessment Project type
Evidence Written + work project
Focus Five core units
Training 292 nominal hours
Duration Not published
Cut score Not published
Reassessment After one month
Award National Certificate
Roles Bookkeeper; accounting clerk

Normal Balances JO

DEAD debit; CLIC credit
D: drawings E: expenses A: assets L: liabilities I: income C: capital

Debit vs Credit JO

Debit

Left side
Assets and expenses increase

Credit

Right side
Liabilities and income increase
Side first; account second

Journal Picker JO

Credit merchandise sale → Sales journal
Credit merchandise purchase → Purchase journal
Cash receipt transaction → Cash receipts journal
Cash payment transaction → Cash payments journal
Adjusting entry → General journal
Closing entry → General journal
Correcting entry → General journal
Does not fit → General journal

Assessment Map JO

Core focus Five bookkeeping units
Basic units Integrated with core
Common units Integrated with core
Written exam Required evidence method
Work project Required evidence method
Assessment site TESDA-accredited center
Performance venue Center-designated workplace
SAG Readiness self-check
Calculator Bring for assessment
Phone Not allowed

Periodic vs Perpetual JO

Periodic

Purchases account
COGS at period-end

Perpetual

Inventory account
COGS each sale
Delayed vs continuous inventory

Debit + Credit JO

Equation Assets = liabilities + equity
Assets increase Debit
Expenses increase Debit
Drawings increase Debit
Liabilities increase Credit
Equity increases Credit
Income increases Credit
Contra asset Normal credit
Contra revenue Normal debit
Entry rule Debits equal credits

Source Documents JO

Sales invoice Sale evidence
Purchase invoice Purchase evidence
Official receipt Payment evidence
Voucher Authorized payment support
Sales journal Credit merchandise sales
Purchase journal Credit merchandise purchases
Cash receipts All cash inflows
Cash payments All cash outflows
General journal Nonroutine entries
Narration Transaction explanation

Inventory + Entity Rules JO

Periodic purchase Debit Purchases
Perpetual purchase Debit Inventory
Periodic sale No immediate COGS
Perpetual sale Record COGS immediately
Sole proprietor Capital + drawings
Partnership Separate partner capitals
Corporation Share capital + retained earnings
Owner withdrawal Debit drawings at cost

Accounting Cycle PO

Document → Journal → Ledger → Trial → Reports
Verify documents Journalize Post Adjust Report Close

Journal vs Ledger PO

Journal

Chronological
Original accounting entry

Ledger

By account
Running account balance
Record first; classify second

Ledger Basics PO

Journal Chronological record
Ledger Account-classified record
Posting Journal-to-ledger transfer
Journal PR Ledger account number
Ledger folio Source journal reference
Footing Column total
Balance Debit-credit difference
Sequence Post chronologically
Posting standard 100% accuracy

Control vs Subsidiary PO

Control

General-ledger total
One summary balance

Subsidiary

Individual details
Many customer/vendor balances
Total must equal details

Control Accounts PO

General ledger Summary accounts
Subsidiary ledger Individual details
AR control All customer balances
AP control All vendor balances
PPE subsidiary Individual fixed assets
Payroll subsidiary Individual employee details
Control test Control equals subsidiary total
Mismatch Trace posting differences

Accrual vs Deferral TR

Accrual

Recognition before cash
Record missing activity

Deferral

Cash before recognition
Allocate recorded cash
Missing now vs allocated later

Adjustment Picker TR

Earned but unrecorded → Accrued income
Incurred but unpaid → Accrued expense
Prepayment partly expired → Recognize expense
Advance partly earned → Recognize income
Asset consumed → Record depreciation
Receivables doubtful → Adjust allowance
Difference divisible by two → Check wrong side
Difference divisible by nine → Check transposition

Adjusting Entries TR

Accrued expense Expense + payable
Accrued income Receivable + income
Expired prepayment Expense + asset reduction
Earned advance Liability reduction + income
Depreciation Expense + accumulated depreciation
Bad debts Expense + allowance
Cash account Never in adjustments
Interest Principal × rate × time
Straight-line Cost less residual ÷ life
Adjusted balance Before reports

Trial Balance TR

Purpose Test debit-credit equality
Source Ledger ending balances
Unadjusted TB Before period-end adjustments
Adjusted TB After period-end adjustments
Post-closing TB Permanent accounts only
Equal totals Not proof of accuracy
Difference ÷ 2 Wrong-side clue
Difference ÷ 9 Transposition clue
Equal omission TB still balances
Wrong account TB may balance

Cash Flow Classes RE

OIF: Operate, Invest, Finance
O: daily business I: long-term assets F: owners and lenders

Adjusting vs Closing RE

Adjusting

Before statements
Updates balances

Closing

After statements
Zeros temporary accounts
Measure first; reset afterward

Financial Statements RE

Income statement Income less expenses
Changes in equity Equity rollforward
Balance sheet Point-in-time position
Cash flows Cash movement categories
Net sales Sales less contra-sales
Net purchases Purchases less reductions
COGS Beginning + net purchases − ending
Gross profit Net sales − COGS
Ending capital Begin + income − drawings
Statement order Income → equity → position

Closing + Cash Flows RE

Temporary accounts Income, expenses, drawings
Permanent accounts Assets, liabilities, equity
Income Summary Closing bridge
Drawings close Directly into capital
Operating cash Primary business activities
Investing cash Long-term asset activity
Financing cash Owners + creditors
Current ratio Current assets ÷ current liabilities
Net margin Net income ÷ net sales

Internal Control Core CO

SADPI protects assets
S: segregation A: authorization D: documentation P: physical controls I: independent checks

Bank Side vs Book Side CO

Bank side

Transit deposits
Outstanding checks

Book side

Charges and NSF
Interest and collections
Book items require entries

Bank Reconciliation Picker CO

Deposit not recorded by bank → Add bank side
Check not cleared → Deduct bank side
Bank service charge → Deduct book side
Customer check returned → Deduct book side
Bank collected note → Add book side
Bank credited interest → Add book side
Company book error → Correct book side
Bank statement error → Correct bank side

Internal Controls CO

Authorization Approve before action
Segregation Separate custody and records
Documentation Create audit trail
Physical control Protect assets
Independent check Separate verification
Internal-control manual Document firm procedures
Compliance check Validate actual practice
Compliance report Findings for management
Report filing Future reference
Small team Use compensating review

Bank Side CO

DIT adds; OC subtracts
DIT: deposit in transit OC: outstanding check

Preventive vs Detective CO

Preventive

Before error
Authorization and segregation

Detective

After activity
Reconciliation and review
Block first; find afterward

Bank Reconciliation + Petty Cash CO

Deposit in transit Add bank side
Outstanding check Deduct bank side
Bank charge Deduct book side
NSF check Deduct book side
Bank interest Add book side
Book-side item Journalize after reconciliation
Bank-side timing Usually no entry
Imprest fund Fixed ledger balance
Replenishment Debit expenses; credit cash
Cash short Debit Cash Over/Short

Common Traps

Balanced is not correct

Totals may agree ≠ Accounts may be wrong

Cash is not adjusted

Adjustments update accruals ≠ Bank entries update cash

Inventory method changes entries

Periodic uses Purchases ≠ Perpetual uses Inventory

Posting references run both ways

Journal names ledger ≠ Ledger names journal

Bank timing needs no entry

Transit deposit is recorded ≠ Outstanding check is recorded

Petty replenishment is not setup

Setup debits Petty Cash ≠ Replenishment debits expenses

Drawings are not expenses

Drawings reduce equity ≠ Expenses reduce income

Training is not assessment

292 hours is training ≠ Assessment duration unpublished

Last Minute

1. Five core units; weights unpublished
2. Assessment = written + work project
3. Verify documents before journalizing
4. Total debits equal total credits
5. Journal first; post chronologically
6. Control account = subsidiary total
7. Adjust before preparing statements
8. Cash never enters adjusting entries
9. Income → equity → balance sheet
10. Close temporary accounts only
11. DIT adds; outstanding checks subtract
12. Book-side reconciling items need entries
13. Segregate custody from recording
14. Bring calculator; phone prohibited

TESDA Bookkeeping NC III Competency Assessment — Philippines

Practice Questions 118 questions Study Guide 37 topics Cheat Sheet 114 facts Flashcards 50 cards Podcast