Untitled 9

BOOKKEEPING
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COMPETENCIES:
• Basic competencies (20 hours)
• Common Competencies (24 hours)
• Core Competencies (248 hours)
1 Journalize transactions
2 Post transactions
3 Prepare trial balance
4 Prepare financial reports

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ACCOUNTING OVERVIEW
Importance of Records
• By keeping records, the owner will have the ability to assess which
transactions provided him income and which transactions resulted to
expenses. He can also assess if he will have the ability to pay his debts
on time.
• In business arena, accounting is the language. It would not be easy to

account economic transactions without records. The records will tell
the story concerning the progress and position of the business.

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REPUBLIC ACT No. 9298
(Philippine Accountancy Act of
2004)
• The present law that governs the accounting in the
Philippines.
• As a whole accountants use rules, procedures, practice
and standards followed in the preparation and
presentation of financial statements known as
Generally Accepted Accounting Principles (GAAP).

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ACCOUNTING
• “the process of identifying, measuring, communicating
economic information to permit informed judgment and
decision by users of the information”

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Identifying
• The process of recognition and nonrecognition of
business activities as “accountable” events.
• Accountable events occur when it affects an entity’s
assets, liabilities and equity .

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Measuring
• Process of assigning peso amounts to the accountable
economic transactions and events.
• In the Philippines, Philippine peso is the unit of
measuring accountable economic transactions.

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Communicating
• Process of preparing and distributing accounting reports
to possible users of accounting information.
• Implicit in the communication process are recording,
classifying and summarizing aspects of accounting.

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Recording
• Another name for recording is bookkeeping or
journalizing.
• It refers to writing business data such as economic
transactions and events on the books of the business
systematically.

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Classifying
• Similar items are grouped under a common
characteristics (assets, liabilities, equity or capital,
revenue and expenses)

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Summarizing
• This is the preparation of financial statements which
include: the balance sheet, income statement, cash flow
statement, statement of changes in equity or statement
of recognized gains and losses and notes to financial
statements.

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Forms of Business Organization
• SINGLE PROPRIETORSHIP
• PARTNERSHIP
• CORPORATION

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Forms of business
• Service provider- this business gives their
customers services instead of tangible products.
• Merchandising- commonly known as buy and sell
or trading business. The purchased products and the
products being sold are the same.
• Manufacturing- this kind of business buys raw
materials and transforms it into finished products.

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Accounting Assumptions
• These are the basic notions or fundamental premises on
which the accounting process is based.
• Also known as postulates.

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ACCRUAL and GOING
CONCERN
• Accrual Accounting means that income is recognized
when earned regardless of when received and expense
is recognized when incurred regardless of when paid.
• Going Concern this assumption looks on a business that
it will continue its operations for the foreseeable future.

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ACCOUNTING ENTITY
• Under this assumption, the business enterprise is
separate from the owners, managers and employees
who comprise the firm.

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TIME PERIOD
• This postulate requires that a business must present its
financial reports on financial position, performance and
cash flows for a “one year period”
● Calendar year- one year period that starts from Jan 1
and ends up December 31.
● Fiscal year
● Natural Year- one year period that ends when business

operations are at their lowest level of annual cycle.
➢ Sometimes, financial statements are made less than
one year ( semiannually or quarterly) for internal uses
or govt. requirements. This is called interim reporting
which uses interim period.

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MONETARY UNIT
• Imposes that financial statements must be stated in the
Philippine peso, any changes in the value of peso may
be ignored.

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ACCOUNTING PROCESS
(Accounting cycle)
• ANALYZING- transactions are checked if it affects
the elements of FS and if it can be measured reliably.
• JOURNALIZING- Economic transactions are
recorded in journals upon transaction
• POSTING- recorded transactions are classified and
balances are computed.
• Unadjusted Trial balance- all account balances are
totaled to reflect equal debits and credits.

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5. ADJUSTING ENTRIES- Some account balances are
updated to reflect their true balances.
6. FINANCIAL STATEMENT PREPARATION-
7. CLOSING ENTRIES- All income statement accounts
are closed. This is why income statement accounts are
also called temporary accounts.
8. POST-CLOSING TRIAL BALANCE-
9. REVERSING ENTRIES

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ELEMENTS OF FINANCAL STATEMENTS
• ASSET
• LIABILITIES
• EQUITY
• INCOME
• EXPENSES

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ASSET
• Are valuable resources owned by the entity.
• Per framework, asset is a resource controlled by the
enterprise as a result of past events and from which
future economic benefits are expected to flow to the
enterprise.
• Cash, cash equivalents, accounts receivable, notes
receivable, inventories, prepaid expenses, property,
plant and equipment, investments, intangible assets and
other assets.

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LIABILITIES
• A present obligation of the enterprise arising from past
events, the settlement of which is expected to result in
an outflow from the enterprise of resources embodying
economic benefits.
• Include notes payable, accounts payable, accrued
liabilities, unearned revenues, mortgage payable, bonds
payable and other debts of the enterprise.

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EQUITY
• The residual interest in the assets of the enterprise after
deducting all its liabilities.
• Other names: capital, proprietorship, owner’s equity,
net worth.

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INCOME
• Increases in economic benefits during the accounting
period in the form of inflows or enhancements of assets
or decreases of liabilities that result in increases in
equity, other than those relating to contributions from
equity participants.
• Encompasses both revenue and gains.

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• REVENUE- arises in the course of the ordinary
activities of an enterprise and is referred to by variety
of different names including sales, fees, interest,
dividends, royalties and rent.
• GAINS- represent other items that meet the definition
of income and may, or may not, arise in the course of
the ordinary activities of an enterprise.

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EXPENSES
• Decreases in economic benefits during the accounting
period in the form of outflows or depletions of assets or
incurrences of liabilities that result in decreases in
equity, other than those relating to distributions to
equity participants.

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FUNDAMENTALS OF
BOOKEEPING
BOOKKEEPING- is the systematic and chronological
recording of business transaction or events.
• Transaction means exchange of values

• Values referred to are “value received” and “value
parted with”

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THE DOUBLE ENTRY SYSTEM
• Accounting is based on a double-entry system which
means that the dual effects of a business transaction is
recorded.
• For every transaction, there must be one or more
accounts debited and one or more accounts credited.
• Each transaction affects at least two accounts.
• Total debits for a transaction must always equal the
total credits.

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Example
• When purchasing a car in cash amounting to P 100, 000
a person receives an automobile and pays cash.
Automobile 100, 000

Cash 100, 000

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• The abbreviations for debit and credit are Dr. (from the
Latin debere) and Cr. (from the Latin credere),
respectively.

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The account
• Basic summary device of accounting.
• Detailed record of the increases, decreases and balance
of each element that appears in the entity’s financial
statements.
• The simplest form of the account is known as the “T”
account.
• The account has three parts as shown below:
Account Title
Left side or Debit Right side or Credit

side Side

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The Accounting Equation
Basic accounting equation:
ASSETS= LIABILITIES + OWNER’S EQUITY
Algebraically, the ff. formula can be derived:
LIABILITIES = ASSETS - OWNER’S EQUITY
OWNER’S EQUITY = ASSETS - LIABILITIES

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• Note that the assets are on the left side of the equation
opposite the liabilities and owner’s equity. This
explains why increases and decreases in assets are
recorded in the opposite manner as liabilities and
owner’s equity are recorded. The equation also
explains why liabilities and owner’s equity follow the
same rules of debit and credit.
• The logic of debiting and crediting is related to the
accounting equation.

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Illustration
Case 1:
Assume that Mr. Jomer Reyes invested P10, 000 cash as
initial capital for a vulcanizing business called Reyes
vulcanizing shop. The business also took charge of the P2,
000 payable of furniture and equipment it is using.

= P2, 000 + 10, 000
= P12, 000

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Case 2:
Assume that Mr. Ruben Viray invested assets worth of P50, 000
for handicraft business. However, actual assets he invested is
only P40, 000.

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LIABILITIES = ASSETS - OWNER’S EQUITY
=P50, 000-P40, 000

=P10, 000

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Case 3:
Assume that Mr. Nick Ligon gave cash and goods for a
buy and sell business amounting to P60, 000. However a
P5,000 notes payable by him to PNB is assume by the
business.

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OWNER’S EQUITY = ASSETS - LIABILITIES
=P60, 000-5,000
=P55, 000

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FINANCIAL STATEMENTS
• The end product or main output of the financial
accounting process.
• The general-purpose FS is to provide information about
the financial position, financial performance and cash
flows of an entity that is useful to a wide range of users
in making economic decision.
• Also show the outcome of management’s stewardship
of the wealth entrusted to it.

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USERS OF FS
• Investors
• Employees
• Lenders
• Suppliers and other trade creditors.
• Customers
• Government and their agencies
• Public

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Complete set of basic financial
statements
• Income Statement
• Balance Sheet
• Statement of Changes in equity
• Cash flow statement
• Notes comprising a summary of significant
accounting policies and explanatory notes.

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Income Statement
• A formal statement showing the financial performance
of the enterprise for a given period of time
• Presents income and expenses of the business.
• Nominal or temporary accounts.
• These accounts are all closed at the end of the period.

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Mr. Chit Manlunas established an advertising business on Dec.
1, 2017. For the whole month of December, below are the
pertinent data:
Total Service Revenues for the month is P10,110
The following are the expenses:
a. Advertising Expense P5,225
b. Rent Expense 400
c. Salaries Expense 800
d. other expenses 500

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CHIT MANLUNAS
Income Statement
For the Period December 31, 2017
Service Revenue P10,110

Less: Expenses
Advertising Expenses P5,225
Rent Expenses 400
Salaries Expenses 800
Other Expenses 500 6,925
Net Income P3,185

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BALANCE SHEET
• A formal statement showing the financial position of
the enterprise as of a particular date.
• Reflects the three elements of financial position namely,
assets, liabilities and capital.
• Real or permanent accounts.
• All accounts in the balance sheet are called real or
permanent accounts.
• These accounts are not closed at the end of the period.

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Mr. Chit Manlunas has the following information in his
journals as of Dec. 31, 2017:
Total Cash P5,235
Receivable from Customers 750
Delivery equipment for business 16,500
Tables, chairs and other fistures 1,950
Payable to Cyrex Commercial 250
Initial Capital of P22,000 decrease by personal
withdrawal of 1,000
Profit for the month 3,185

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CHIT MANLUNAS
Balance Sheet
As of December 31, 2017
ASSETS
Cash P5,235
Accounts Receivable 750
Delivery equipment 16,500
Furniture and Fixture 1,950
Total Assets 24,435
LIABILITIES AND OWNER’S EQUITY
Liablilities
Accounts Payable- Cyrex P250
Owner’s Equity
Manlunas, Capital P22,000
Less: Withdrawal 1,000
P21,000

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Exercises
• Mr. Paul Arancon started business by investing
P7,500 cash. In addition, the business assumes a
payable of Mr. Arancon amounting to P1,500.
• Mr. Samson Andres invested assets worth P20,000.
Capital of Mr. Andres is computed as P15,000
Required:Based on the above information, formulate the

accounting equation.

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3. From the data Paocial and Sons below, prepare a
simple balance sheet as of Dec31, 2017:
• Cash in Bank 2,500
• Receivable from customers 10,500
• Payable to Almaden Company 8,000
• Counters, chairs and tables 2,000
• Initial capital of P20,000 decrease by personal
withdrawal of 1,500
• Delivery Equipment worth 15,000
• Profit for the month 3,500

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4. Based on the following information, prepare a simple
income statement of Johnny Diaz for the period Dec 1 to
December 31, 2017.
• Total Service Revenue for the month P10,000
• Supplies Expense 7,000
• Rent Expense 500
• Salaries 1,000
• Other Expenses 500

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5. Below is information of Salarde Enterprises as of
December 31, 2017:
Cash P5,000
Accounts Receivable 15,000
Other Assets 5,000
Accounts Payable 10,000
Salarde, Capital ?
Required: Prepare the Balance Sheet.

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JOURNALIZING
• Expanded Accounting Equation:
ASSETS= LIABILITIES+ ORIGINAL CAPITAL+ADDITIONAL

INVESTMENT-WITHDRAWAL+INCOME-EXPENSES

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AJPUAFCPR
Journal
• A general journal or simply journal is called book of
original entry.
• Some journals are Sales Journal, Purchase journal, Cash
Receipts journal, and Cash Payments journal.

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Normal Balance
This accounting terminology refers to the ordinary
balance of different accounts.
ACCOUNT NORMAL BALANCE
1 ASSETS DEBIT
2 LIABILITIES CREDIT
3 OWNER’S EQUITY CREDIT
4 INCOME CREDIT
5 EXPENSES DEBIT
6 DRAWING DEBIT
7 ACCUMULATED DEPRECIATION CREDIT
8 ALLOWANCE FOR CREDIT
DOUBTFUL ACCOUNTS

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Rules of Debit-Credit (ALPIE RULE)
PARTICULAR IF DEBITED IF CREDITED
ASSETS INCREASE DECREASE
LIABILITIES DECREASE INCREASE
OWNER’S EQUITY DECREASE INCREASE
INCOME DECREASE INCREASE
EXPENSES INCREASE DECREASE
ACCOUNT NORMAL BALANCE

1 ASSETS DEBIT
2 LIABILITIES CREDIT
3 OWNER’S EQUITY CREDIT
4 INCOME CREDIT
5 EXPENSES DEBIT
6 DRAWING DEBIT
7 ACCUMULATED DEPRECIATION CREDIT
8 ALLOWANCE FOR DOUBTFUL CREDIT
A C C O U N T S
NOTICE T H A T N O R MAL BALANCES EASES IN THE
REFLECT INCR ACCOUNT

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• Contra Accounts are exception from the ALPIE rule.
• Contra Accounts are accounts deducted from another
account.
• These are not offsetted rather it is presented below the
account from which it will be deducted from. (ex.
Drawings in the Balance Sheet)

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PARTICULAR CREDIT DEBIT
DRAWING INCREASE DECREASE
-This account is debited when the owner of a sole
proprietorship withdraws asset/s to the business
for personal use.
This is deducted from the capital account.
2. ACCUMULATED DEPRECIATION DECREASE INCREASE
-fixed assets (except land) like furniture, building etc.
decreases in value as time goes by. This account
reflects the decline in value of such assets. This is
deducted in the related fixed asset/s.
3. Allowance for doubtful accounts DECREASE INCREASE
-This is an estimate by the owner on the amount of
accounts receivable (collectibles) that is uncertain to
be collected. This is deducted in the Accounts
Receivable.
Other contra accounts: purchase discounts, purchase returns and allowances,

Sales discount and sales returns and allowances.

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Chart of Accounts
• A bookkeeper needs a guide in recording business
transactions and events. A list of accounts used by the
bookkeeper is called a CHART OF ACCOUNTS
• This list consists ALL the accounts to be used in
recording all economic transactions with corresponding
code numbers that will be reflected as “folio”.
• The accountant or the bookkeeper may add other
accounts he may find appropriate in the chart

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Code # ASSET ACCOUNTS Code # INCOME ACCOUNTS
1 Cash 71 Service Revenue

3 Accounts Receivable 73 Rent Income
5 Unused Supplies
6 Marketable Securities EXPENSE ACCOUNTS
8 Land 82 Salaries Expense
9 Building 83 Commissions
10 Furniture and Fixtures 84 Travelling expenses
11 Equipment 85 Advertising Expense
12 Machinery 86 Representation Expense
13 Other Assets 87 Utilities Expense
LIABILITY ACCOUNTS 88 Supplies Expense
52 Accounts Payable 90 Heat, Light and Water
53 Tax payable 91 Taxes
54 Accrued Salaries 92 Insurance Expense
55 Loans Payable 93 Repairs and Maintence
56 Bond Payable 94 Rent Expense
EQUITY ACCOUNTS 95 Depreciation Expense
61 Penduko Capital

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SIMPLE vs. COMPOUND ENTRY
Assume transactions below are provided with
corresponding entries.
Jan 2, 2018- Mr. Penduko invests an initial capital of

P5,000 for a trading business
Jan 2, 2018- Mr. Penduko contributed P6,000 worth of

tables and chairs for office use.

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Simple Entry
Date Particulars F Debit Credit
2008
Jan 2 Cash 1 P5,000
Penduko, Capital 61 P5,000
To record initial investment of owner
Furniture and Fixtures 10 6,000

Penduko, Capital 61 6,000
Compound Entry
Date Particulars F Debit Credit
2008
Jan 2 Cash 1 P5,000
Furniture and Fixture 10 6,000

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• A simple journal entry contains one account debited and
one account credited while compound journal entry
contains three or more accounts. Either entry is
accepted and will have the same effect.
• Note: Debit figure/s must always be equal to credit
figure/s

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On Dec. 1, 2004, Mateo Roa opened a videotape rental store, Oro Video, by investing
P250, 000 cash from his personal savings account. During the month of December, the
following transactions took place:
Dec. 1- Acquired supplies on account, P67, 000
4- Acquired Videotapes costing P235,000 on account
5- Paid P85, 000 to creditors
8- Received P78,000 cash from ACA Video for rental fees
11- Billed Video City for Video rentals, 105,000
16- Paid salaries 65,000
17- Collected 77,000 from video city
23- Roa withdrew 47,000 from the business
24- Paid rent for the month 41,500
30- Paid utilities bill for the month 17,500
Required: Journalize the transactions using the following accounts:

123-Cash, 234-Accounts Receivable, 345-Supplies, 456-Videotapes, 567-Accounts
Payable
And 678- Roa, Capital.

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Answers:
Journalizing ORO VIDEO transactions

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Journalizing Exercises: (Refer to slide 60 for the account titles
to be used)
Transaction1- Pedro Penduko decides to open an internet

café. On September 2, 2008, he invests P300,000 cash in
the business which he names Panday Online.
GENERAL JOURNAL J1
DATE PARTICULARS F DEBIT CREDIT
2008
Sep. 2 Cash 1 P300,000
Investment by owner

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Transaction 2- On Sep. 4, 2008, Panday Online purchases
computer equipment for P140,000 cash.
GENERAL JOURNAL J1
2008
Sep. 4 Equipment 11 P140,000
Cash 1 P140,000
Purchase of equipment for cash

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Transaction 3- On September 5, 2008 Panday Online
purchases computer paper and other supplies expected to
last several months from Crown Bookstore for P32,000.
Crow Bookstore agrees to allow Panday Online to pay to
pay this bill in October, a month later.
GENERAL JOURNAL J1
2008
Sep. 5 Supplies 5 P32,000
Accounts Payable 52 P32,000
Purchase of supplies on credit

Page 68 of 75
Transaction 4- On Sept. 17, 2008 Panday Online
Receives P24,000 cash from customers for typing
services it has provided.
GENERAL JOURNAL J1
2008
Sep17 Cash 1 P24,000
Service Revenue 71 P24,000
Services rendered for cash

Page 69 of 75
Transaction 5- Panday Online receives a bill for P5,000
from Sunstar newspaper on Sept 19, 2008 for advertising
the opening of its business but postpones payment of the
bill until a later date.
GENERAL JOURNAL J1
2008
Sep19 Advertising Expense 85 P5,000
Accounts Payable 52 P5,000
Purchase of advertising on credit

Page 70 of 75
Transaction 6- Panday Online provides printing and
online services of P70,000 for customers on Sep 20,2008.
Cash amounting to P30,000 is received from customers,
and the balance of P40,000 is billed to customers on
account.
GENERAL JOURNAL J1
2008
Accounts Receivable 3 40,000
Service Revenue 71 P70,000
Services rendered for cash and credit.

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Transaction 7- Expenses paid in cash for Sept 28, 2008
are store rent, P12,000, Salaries of employees, P18,000
and utilities P4,000.
GENERAL JOURNAL J1
2008
Sep28 Rent Expense 94 P12,000
Salaries Expense 82 18,000
Utilities Expense 87 4,000
Cash 1 P34,000
Payment of expenses.

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Transaction 8- On Sept. 28, 2008, Panday Online pays its
Sunstar newspaper advertising bill of P5,000 in cash.
GENERAL JOURNAL J1
2008
Sep28 Account Payable 52 P5,000
Cash 1 P5,000
Payment of accounts payable.

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Transaction 9- The sum of P12,000 in cash is received on
Sep 29,2008 from customers who have previously been
billed for services in transaction 6.
GENERAL JOURNAL J1
2008
Accounts Receivable 3 P12,000
Payment from customer with existingaccount.

Page 74 of 75
Transaction 10- On Sept 30, 2008 Pedro Penduko
withdraws P26,000 in cash from the business for his
personal use.
GENERAL JOURNAL J1
2008
Sep30 Penduko, Drawings 62 P26,000
Cash 1 P26,000
Withdrawal of cash by owner

Page 75 of 75

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BOOKKEEPING

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• In business arena, accounting is the language. It would not be easy to

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https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

● Natural Year- one year period that ends when business

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

• Transaction means exchange of values

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

Automobile 100, 000

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

Left side or Debit Right side or Credit

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

Algebraically, the ff. formula can be derived:

LIABILITIES = ASSETS - OWNER’S EQUITY

OWNER’S EQUITY = ASSETS - LIABILITIES

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

ASSETS= LIABILITIES + OWNER’S EQUITY

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

=P50, 000-P40, 000

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

Service Revenue P10,110

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM

Required:Based on the above information, formulate the

https://cdn.fbsbx.com/v/t59.2708-21/41364667_599082750493712_34880424554738…eJTfBxk8IcAeQAxJizw&oh=1b3c6430e2a455f5a2ccb2a8da4f337a&oe=5BB4F9B2&dl=1 02/10/2018, 1P19 PM