SAP B1 on Cloud – Fundamentals of Accounting

Fundamentals of Accounting
EXERCISE WORKBOOK

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

Table of Contents
1. Basic Navigation......................................................................................................................................4
Exercise 1.1..............................................................................................................................................4
Exercise 1.2..............................................................................................................................................4
2. Introduction to Fundamentals of Accounting..........................................................................................5
Exercise 2.1..............................................................................................................................................5
3. Chart of Accounts....................................................................................................................................6
Exercise 3.1..............................................................................................................................................6
4. Subsidiary Ledgers...................................................................................................................................7
Exercise 4.1..............................................................................................................................................7
5. The Accounting Cycle...............................................................................................................................8
Journalizing..................................................................................................................................................8
Exercise 5.1..........................................................................................................................................8
Exercise 5.2..........................................................................................................................................9
Manual Journal Entry and Journal Vouchers.........................................................................................10
Exercise 5.3........................................................................................................................................10
Exercise 5.4........................................................................................................................................11
Exercise 5.5........................................................................................................................................12
Exercise 5.6........................................................................................................................................13
Special Journals (Purchase)....................................................................................................................14
Exercise 5.7........................................................................................................................................14
Exercise 5.8........................................................................................................................................15
Exercise 5.9........................................................................................................................................16
Special Journals (Disbursements)..........................................................................................................17
Exercise 5.10......................................................................................................................................17
Exercise 5.11......................................................................................................................................18
Exercise 5.12......................................................................................................................................19
Special Journals (Sales)..........................................................................................................................20
Exercise 5.13......................................................................................................................................20
Exercise 5.14......................................................................................................................................21

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

Exercise 5.15.........................................................................22
Special Journals (Collection)..................................................................................................................23
Exercise 5.16......................................................................................................................................23
Exercise 5.17......................................................................................................................................24
General Ledger..........................................................................................................................................25
Exercise 5.18......................................................................................................................................25
Adjusting Entries........................................................................................................................................26
Exercise 5.19......................................................................................................................................26
Exercise 5.20......................................................................................................................................27
Exercise 5.21......................................................................................................................................28
Unadjusted Trial Balance...........................................................................................................................29
Exercise 5.22......................................................................................................................................29
Adjusted Trial Balance...............................................................................................................................30
Exercise 5.23......................................................................................................................................30
Financial Statements.................................................................................................................................31
Exercise 5.24......................................................................................................................................31
Exercise 5.25......................................................................................................................................32
Period End-Closing.....................................................................................................................................33
Exercise 5.26......................................................................................................................................33

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

1. Basic Navigation
Exercise 1.1
Fill each blank with the appropriate words or terminologies that will make the statements correct.

1. The ______________ displays at the top of the screen. It contains the Windows standard menu
(File, Edit, W window, Help) as well as generic SAP Business One functions.

2. The _____________ is a collection of icon buttons that grant you easy access to commonly-used
functions.

3. Navigation in SAP Business One is done using the _____________. It arranges the functions of the
individual applications in a tree structure.

4. The users of SAP Business One are defined in the _____________ window.

5. Accessing SAP Business One on Cloud is done using _____________ like Google Chrome, Mozilla
Firefox or Safari.

Exercise 1.2
Identify the terminologies being described by each sentence.

1. This is a business management software that allows an organization to use a system of integrated applications
to manage the business. It aims to serve as a backbone for your whole business.

2. This is also known as Internal Cloud, is a cloud based infrastructure operated exclusively for a single
organization with all data protected behind an internal firewall.

3. This is also known as External Cloud, is available to the public where data are created and stored on
third-party servers.

4. This is a key feature of cloud computing where resources can be accessed anywhere (except on
limitations set by company's internal control).

5. This the place where SAP, a European multinational software corporation, was founded in 1972.

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

2. Introduction to Fundamentals of Accounting

Exercise 2.1
Fill each blank with the appropriate words or terminologies that will make the statements correct.

1. _____________ is a systematic process of identifying, recording, measuring, classifying, verifying,

summarizing, interpreting and communicating financial information.
2. _____________ is known as the Father of Accounting.
3. A _____________ an organization that uses economic resources or inputs to provide goods or
services to customers in exchange for money or other goods and services.
4. _____________ is the fundamental concept underlying present-day bookkeeping and accounting.
This is based on the fact that every financial transaction has equal and opposite effects in at least two
different accounts.
5. _____________ is the concept that accounting transactions should be recorded in the accounting
periods when they actually occur, rather than in the periods when there are cash flows associated
with them.
6. _____________ is the concept that a business will remain in operation for the foreseeable
future.
7. _____________ is the concept that the transactions of a business should be kept separate from
those of its owners and other businesses.
8. _____________ is the concept that a business should only record transactions that can be stated in
terms of a unit of currency.
9. _____________is the concept that you should include in or alongside the f inancial statements of a
business all of the information that may impact a reader's understanding of those financial
statements.
10. Double entry bookkeeping is used to satisfy the equation that Assets = ______+_______.

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

3. Chart of Accounts
Exercise 3.1
Fill each blank with the appropriate words or terminologies that will make the statements correct.

1. _____________ is a financial organizational tool that provides a complete listing of every account in
an accounting system.

2. An _____________ is a unique record for each type of asset, liability, equity, revenue and expense.

3. The _____________ accounts reflect the monitory value of the company - stock, assets, debt, etc.
These accounts are carried over from one fiscal year to the next.

4. _____________ accounts has to be cleared at the end of each fiscal year through Period End
Closing process.

5. Chart of Accounts of SAP Business One can be viewed and managed through the _____________
module.

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

4. Subsidiary Ledgers
Exercise 4.1
What are the purpose of subsidiary ledgers?

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

5. The Accounting Cycle

Journalizing
Exercise 5.1
Fill each blank with the appropriate words or terminologies that will make the statements correct.

1. _____________ is a record of financial transactions in order by date. It is often defined as the

book of original entry.

2. _____________ is a special or specialized journal i s u s e d to record sales of merchandise to

customers.

3. _____________ is a special journal used to record money received.

4. _____________ is a record of all acquisitions made on credit during a period

5. _____________ is a record kept by accountants to record all financial expenditures made by a

company.

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

Exercise 5.2
Record the following transactions using the Manual Journal Entry:

On January 20, 2020, the company received billings for the following utilities:
Dr. Light Expense P 6,750
Dr. Water Expense P 4,400
Cr. Accrued Expense Payable P 11,150

On January 25, 2020, billings received were paid for cash.

Dr. Accrued Expense Payable P 11,150
Cr. Cash on Hand P 11,150

Insert the screenshot of your output here:

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

Manual Journal Entry and Journal Vouchers

Exercise 5.3
Record the following transactions using the Manual Journal Entry:

On February 10, 20XX, the owner of the company had an additional cash investment of P 500,000,
deposited on the company’s BDO Bank Account.
Dr. Cash in Bank – BDO P 500,000
Cr. Aquino, Capital P 500,000

Insert the screenshot of your output here:

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

Exercise 5.4
Record the following transactions using the Manual Journal Entry:

On March 15, 20XX, the owner withdrawn some of his cash investment to pay for his personal expenses
amounting to P 25,000. The Disbursement Officer withdrew the amount from the company’s BDO
account.
Dr. Aquino, Drawing P 25,000
Cr. Cash in Bank - BDO P 25,000

Insert the screenshot of your output here:

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

Exercise 5.5
Record the following transactions using the Manual Journal Entry:

On March 30, 20XX, the company recorded a Salary Expense worth of P 100,000, paid for through the
company’s BDO Bank Account:

Dr. Salaries and Wages P 100,000

Cr. Cash in Bank, BDO P 100,000

Insert the screenshot of your output here:

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

Exercise 5.6
Create the following entries in journal entry through the journal vouchers.

Date Transaction Amount

April 01, 20XX Sansa Aquino invested office equipment Php 850,000
for the business
April 02, 20XX The owner invested additional cash Php 72,000
through a bank deposit in Metrobank
April 03, 20XX Paid transportation for business related Php 1,750
travels

Submit the screenshot of the journal voucher created and the transaction journal report from April 01,
20XX – April 03, 20XX.

Insert the screenshot of your output here:

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

Special Journals (Purchase)

Exercise 5.7
On April 10, 20XX, the company received the billing from PLDT worth Php 11,200 (tax inclusive). It is to
be recorded as Communication Expense on the A/P invoice.

Screenshot the journal entry created from the A/P invoice.

Insert the screenshot of your output here:

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

Exercise 5.8
On April 11, 20XX, the company received the billing from Philhealth, worth P 3000, for the employees’
recent salary.

Screenshot the journal entry created from the A/P invoice.

Insert the screenshot of your output here:

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

Exercise 5.9
On April 13, 20XX, the company received the billing from SSS, worth P 5000, for the employees’ recent
salary.

Screenshot the journal entry created from the A/P invoice.

Insert the screenshot of your output here:

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

Special Journals (Disbursements)

Exercise 5.10
On April 15, 20XX, the invoice from PLDT was paid for by cash (based on Exercise 5.6).

Screenshot the journal entry created from the outgoing payment.

Insert the screenshot of your output here:

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

Exercise 5.11
On April 16, 20XX, the invoice from Philhealth was paid for by cash (based on Exercise 5.7).

Screenshot the journal entry created from the outgoing payment.

Insert the screenshot of your output here:

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

Exercise 5.12
On April 16, 20XX, the invoice from SSS was paid for by cash (based on Exercise 5.8).

Screenshot the journal entry created from the outgoing payment.

Insert the screenshot of your output here:

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

Special Journals (Sales)

Exercise 5.13
On May 2, 20XX, the company billed Mariah Carey for the services it rendered worth P 50,000 (tax
exclusive, tax will automatically be computed by the system). It is to be recorded as Sales and Service
Income in the A/R invoice.

Screenshot the journal entry created from the A/R invoice.

Insert the screenshot of your output here:

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

Exercise 5.14
On May 5, 20XX, the company rendered service to a walk-in customer amounted to P 15,000 (tax not
yet included). The customer immediately paid cash.

Screenshot the journal entry created from the A/R invoice + Payment.

Insert the screenshot of your output here:

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

Exercise 5.15
On May 9, 20XX, the company rendered service to Elvis Presley amounted to P 80,000 (tax not yet
included). It is to be recorded as Sales and Service Income in the A/R invoice.

Screenshot the journal entry created from the A/R invoice.

Insert the screenshot of your output here:

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

Special Journals (Collection)

Exercise 5.16
On May 9, 20XX, Mariah Carey paid her invoice via Bank Transfer to the company’s Metrobank account
with reference number RQL0965YT.

Screenshot the journal entry created from the Incoming Payment.

Insert the screenshot of your output here:

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

Exercise 5.17
On May 10, 20XX, Elvis Presley paid his invoice by cash.

Screenshot the journal entry created from the Incoming Payment.

Insert the screenshot of your output here:

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

General Ledger
Exercise 5.18
Generate the General Ledger as of the date of the latest transaction.

Insert the screenshot of your output here:

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

Adjusting Entries
Exercise 5.19
Assuming the company uses Asset Method in recording prepayments. Perform the adjusting entries
based on the transactions below:

On June 1, 20XX, the company paid in advance, 1 year worth of rent, for a total of P 120,000 (P 10,000
per month), from its Cash in Bank – BDO account.

Dr. Prepaid Rent P 120,000

Cr. Cash in Bank – BDO P 120,000

(Adjusting Entry) On December 31, 20XX, recognize the rent expense incurred.

Dr. Rent Expense P 70,000

Cr. Prepaid Rent P 70,000

Insert the screenshot of your output here:

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

Exercise 5.20
Assuming the company uses Expense Method. Perform the adjusting entries based on the transactions
below:

On July 15, 20XX, the company bought Office Supplies worth Php 35,000.

Dr. Supplies Expense P 35,000

Cr. Cash on Hand P 35,000

(Adjusting Entry) On December 31, 20XX, office supplies worth Php 15,000 were used and expensed.

Dr. Office Supplies P 20,000

Cr. Supplies Expense P 20,000

Insert the screenshot of your output here:

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

Exercise 5.21
Perform the adjusting entries based on the transactions below:

On August 1, 20XX, the company bought Office Machinery worth Php 20,000.

Dr. Office Machinery P 20,000

Cr. Cash on Hand P 20,000

(Adjusting Entry) On December 31, 20XX, Office Machinery was computed to have a depreciated by P
2,500.

Dr. Depreciation Expense – Machinery P 2,500

Cr. Accumulated Depreciation - Machinery P 2,500

Insert the screenshot of your output here:

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

Unadjusted Trial Balance

Exercise 5.22
Generate the unadjusted Trial Balance as of the end of the year.

Insert the screenshot of your output here:

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

Adjusted Trial Balance

Exercise 5.23
Generate the adjusted Trial Balance as of the end of the year.

Insert the screenshot of your output here:

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

Financial Statements
Exercise 5.24
Generate the Balance Sheet as of the end of the year.

Insert the screenshot of your output here:

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

Exercise 5.25
Generate the Income Statement for the year ended 20XX.

Insert the screenshot of your output here:

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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SAP B1 on Cloud – Fundamentals of Accounting

Period End-Closing
Exercise 5.26
Perform Period End Closing for the year 20XX.

Screenshot the closing entries generated in the Transaction Journal Report.

Insert the screenshot of your output here:

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FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph

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