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FAR1 - Lecture 02 Double Entry System - Financial Transation Worksheet
FAR1 - Lecture 02 Double Entry System - Financial Transation Worksheet
Illustration 01:
College of Accountancy
On May 1, 2018, Mima Villanueva opened Self-Service Laundry. During May, the
following transactions were completed.
FINANCIAL ACCOUNTING AND REPORTING (FAR1)
Lecture 02: Double Entry System – Financial Transaction Worksheet a. Villanueva deposited P250,000 in a bank account in the name of the business.
b. Bought chairs and a table paying cash, P6,700.
DEBITS AND CREDITS – THE DOUBLE ENTRY SYSTEM
Accounting is based on a double-entry system which means that the dual effects of a c. Bought laundry supplies on account from Salvador Ho Supply Company,
business transaction is recorded. A debit side entry must have a corresponding credit P3,250.
side entry. It means that for every accountable transaction, there must be one or more d. Paid rent for the month, P5,750.
accounts debited and one or more accounts credited. Each transaction affects at least
e. Bought washing machines and dryers from Ilo-Ilo Equipment Company,
two accounts. The total peso amount of debits for a transaction must always equal the
P115,000, paying P35,000 in cash and the balance on account.
total peso amount of credits.
f. Revenue earned on cash basis for the first half of the month and P19,250.
g. Bought insurance for one year, P5,600.
FAR1: Lecture 02 – Double Entry System-Financial Transaction Worksheet (2018-2019 - 1 st Semester) jvacpa
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Illustration 2:
Joel Feliciano has started his own business, Property Appraisals. He inspects property Required: Record the transactions for the month of September 2018 using a financial
for buyers and sellers of real estate. Feliciano rents office space and has a part-time transaction worksheet. Use the following accounts:
assistant to answer the phone and to help with inspections. The transactions for the Cash Accounts Payable
month of September 2018 are as follows: Accounts Receivable Feliciano, Capital
Office Supplies Feliciano, Withdrawals
a. Feliciano invested cash by making a deposit in a bank account for the
Prepaid Insurance Revenues
business, P150,000.
Service Tools Expenses
b. Paid rent for the month, P3,000. Service Vehicle
c. Bought a second-hand service vehicle for cash, P80,000.
d. Bought service tools on account, P30,000.
e. Paid electricity bill, P500.
f. Paid a one-year insurance premium on the service vehicle, P6,000.
g. Received cash from clients for service performed, P20,000.
h. Paid salaries to assistant for first half of the month, P2,000.
i. Performed appraisal services for clients on account, P10,000.
j. Paid water bill, P350.
k. Bought supplies for cash, P1,000.
l. Received cash from clients for inspections performed on account, P3,000.
m. Paid salaries to assistant for last half of the month, P2,500.
n. Made partial payment on service tools bought on account, P10,000.
o. Additional revenues earned amounted to P20,000: P14,000 for cash and
P6,000 on account.
p. Feliciano withdrew cash for personal expenses, P5,000.
FAR1: Lecture 02 – Double Entry System-Financial Transaction Worksheet (2018-2019 - 1 st Semester) jvacpa
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a
b
FAR1: Lecture 02 – Double Entry System-Financial Transaction Worksheet (2018-2019 - 1 st Semester) jvacpa
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b
FAR1: Lecture 02 – Double Entry System-Financial Transaction Worksheet (2018-2019 - 1 st Semester) jvacpa
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