Illustration 1: Identify what is the value received and the value parted with.

JOURNAL
VALUE RECEIVED VALUE PARTED WITH
TRANSACTIONS DEBIT CREDIT
1. Robin dela Cruz put up a typing services center named Robin Typing Services with a capital P 100,000 cash. Cash 100,000.00 Robin, Capital 100,000.00 Initial Investment
2. Purchased a computer costing P 40,000 from GB Computer Center on account. Computer 40,000.00 Accounts Payable 40,000.00 Purchase Computer on Account
3. Purchased bond papers and other supplies P 5,000 for cash. Supplies 5,000.00 Cash 5,000.00 Purchase Supplies for Cash
4. Received P 10,000 cash for clerical services rendered. Cash 10,000.00 Service Income 10,000.00 Rendered Service for Cash
5. Billed Dan Lim for services rendered on account, P 10,000. Accounts Receivable 10,000.00 Service Income 10,000.00 Rendered Service on Account
6. Paid P 25,000.00 of loan to GB Computer Center. Accounts Payable 20,000.00 Cash 20,000.00 Payment of Accounts
7. Paid employees P 5,000 for salaries Salaries Expense 5,000.00 Cash 5,000.00 Payment of Salaries
8. Received P 7,000 from Dan Lim for services rendered on account. Cash 7,000.00 Accounts Receivable 7,000.00 Collection of Accounts
9. Robin dela Cruz took P 5,000 from the business fund for his family expenditures. Robin, Drawing 5,000.00 Cash 5,000.00 Record owner's drawing
10. Inventory shows that supplies on hand is only P 1,000. Supplies Expense 4,000.00 Supplies 4,000.00

CASH ROBIN, CAPITAL

100,000.00 5,000.00 100,000.00
Using the T-accounts, illustrate the theory of debits and credits using the following transactions. 10,000.00 20,000.00
7,000.00 5,000.00
5,000.00
117,000.00 35,000.00 0 100,000.00
Ending Balance 82,000.00 100,000.00 Ending Balance

COMPUTER ACCOUNTS PAYABLE

40,000.00 20,000.00 40,000.00

40,000.00 0 20,000.00 40,000.00

Ending Balance 40,000.00 20,000.00 Ending Balance

SUPPLIES SERVICE INCOME

5,000.00 4,000.00 10,000.00
10,000.00

5,000.00 4,000.00 0 20,000.00

Ending Balance 1,000.00 20,000.00 Ending Balance

ACCOUNTS RECEIVABLE
10,000.00 7,000.00

10,000.00 7,000.00
Ending Balance 3,000.00

SALARIES EXPENSE
5,000.00

5,000.00 0
Ending Balance 5,000.00

ROBIN, DRAWING
5,000.00

5,000.00 0
Ending Balance 5,000.00

SUPPLIES EXPENSE
4,000.00

4,000.00 0
Ending Balance 4,000.00

TRIAL BALANCE
DEBIT CREDIT
Cash 82,000.00
Accounts Receivable 3,000.00
Supplies 1,000.00
Computer 40,000.00
Accounts Payable 20,000.00
Service Income 20,000.00
Salaries Expense 5,000.00
Supplies Expense 4,000.00
Robin, Drawing 5,000.00
Robin, Capital 100,000.00
TOTAL 140,000.00 140,000.00
Illustration 2: NORMAL BALANCES OF ACCOUNTS
In Column A, indicate wheter the account is ASSET, LIABILITY, EQUITY, INCOME or EXPENSE. A+E+D=L+C+I
If the account is a CONTRA or ADJUNCT account, indicate that as well (eg., CONTRA ASSET). In
Column B, indicate the normal Balance of the account. i.e., DEBIT or CREDIT.

COLUMN A COLUMN B
1. Cash Asset debit
2. Owner's Equity Equity credit
3. Accounts Receivable Asset debit
4. Prepaid Supplies Asset debit EQUIPMENT 1,000,000.00
5. Accounts Payable Liability credit ACCUMULATED DEPRECIATION (300,000.00)
6. Salaries Payable Liability credit BOOK VALUE/CARRYING COST 700,000.00
7. Accumulated Depreciation contra assets credit
8. Sales income credit
9. Cost of Sales EXPENSE debit Sales 20,000.00
10. Depreciation EXPENSE debit Cost of Sales 15,000.00 EXPENSE
11. Notes Receivable ASSET debit Gross Income 5,000.00
12. Salaries Expense expense debit
13. Owner's Drawing contra-equity debit
14. Building asset debit
15. Service Fees income credit
16. Advances from Customers income credit
17. Gains income credit
18. Interest Expense expense debit Purchases 100,000.00
19. Unearned Rent Income liability credit ADD: Freight-In 2,000.00
20. Equipment asset debit Total Purchases 102,000.00
21. Interest Receivables asset debit
22. Furniture and Fixtures asset debit
23. Freight-out/Delivery Expense expense debit Accounts Receivable 50,000.00 Bad debts Expense 10,000
24. Freight-in adjuct account debit Less: Allowance for bad debts (10,000.00) Allow for BD 10,000
25. Losses expense debit Net Realizable Value 40,000.00
26. Allowance for Bad debts Contra-assets debit
27. Inventory asset debit
28. Utilities Payable liability credit
29. Inventory asset debit
30. Office Supplies used expense debit
Illustration 3: Identify what is the value received and the value parted with. Trial Balance
JOURNAL debit credit
VALUE RECEIVED VALUE PARTED WITH A cash 183,000
TRANSACTIONS DEBIT CREDIT beauty equipment 30,000
1 Flor Luna put up Flor Beauty Parlor with an initial investment of P 170,000 cash. Cash 170,000 Flor, Capital 170,000 Initial Investment rent expense 10,000
2 Purchased scissors, hair dryer, combs, and other beauty equipment from Mighty Beauty Supplies and Equipment, paying P 30,000. Beauty Equipment 30,000 cash 30,000 purchase equipment for cash L cosmetics and beauty supplies 8,000
3 Paid the one month rent expense, P 10,000. Rent Expense 10,000 cash 10,000 paid one month rent expense withdrawal 5,000
4 Purchased cosmetics and beauty supplies worth 20,000. Paid the supplier P 5,000, while the balance will be paid the following month. Cosmetic and beauty supplies 20,000 accounts payable - 15,000 Cash - 5,000 Paid 5,000 for the supplies C Water and electricity expense 2,000
5 Returned damaged supplies, P 2,000. It was deducted from her liability. acounts payable 2,000 costmetics and beauty supplies 2,000 payment for accounts payable D Flor Capital 170,000
6 Service income received for cash in the first half of the month totaled P 40,000. cash 40,000 Service Income 40,000 Service income I accounts payable 13,000
7 Took P 5,000 from the business for personal expenditures. withdrawal 5,000 cash 5,000 withdrawal for personal use E service income 70,000
8 Purchased additional supplies for cash P 5,000. Cosmetic supplies 5,000 cash 5,000 Purchase additional supplies for cash Cosmetic and beauty supplies expense 15,000
9 Paid water and electricity, P 2,000. Wate and Electricity expense 2,000 Cash 2,000 Paid water and electricy expense 253,000 253,000 0
10 Service income received for cash in the second half of the month totaled P 30,000. cash 30,000 service income 30,000 service income on service rendered
11 Supplies left at the end of the month are only worth P 8,000. cosmetic beauty supplies expense 15,000 supplies 15,000

20,000
Using the T-accounts, illustrate the theory of debits and credits using the following transactions. CASH beauty equipment -2,000
170,000 30,000 30,000 18,000
0 10,000 5000
40,000 23,000
30,000 5,000 -15,000
5,000 ending balance 30,000 8,000
5,000
2,000
240,000 57,000
Ending Balance 183,000

Rent Expense Water and electricity Expense

10,000 2,000

ending balance 10,000

accounts payable service income

2,000 15,000 40,000
30,000

13,000 ending balance 70,000

70,000 ending balance

flor , capital Costmetics and Beauty Supplies

170,000 20,000 2,000
5,000 15,000
25,000 17,000
ending balance 8,000
170,000 ending balance

withdrawal
5,000

ending balance 5,000

Costmetics and Beauty Supplies Expense

15,000
 1 Flor Luna put up Flor Beauty Parlor with an initial investment of P 170,000 cash.
2 Purchased scissors, hair dryer, combs, and other beauty equipment from Mighty Beauty Supplies and Equipment, paying P 30,000.
3 Paid the one month rent expense, P 10,000.
4 Purchased cosmetics and beauty supplies worth 20,000. Paid the supplier P 5,000, while the balance will be paid the following month.
5 Returned damaged supplies, P 2,000. It was deducted from her liability.
6 Service income received for cash in the first half of the month totaled P 40,000.
7 Took P 5,000 from the business for personal expenditures.
8 Purchased additional supplies for cash P 5,000.
9 Paid water and electricity, P 2,000.
10 Service income received for cash in the second half of the month totaled P 30,000.
11 Supplies left at the end of the month are only worth P 8,000. TRIAL BALANCE
DEBIT CREDIT
DATE Description Folio DEBIT CREDIT Cash Flor Luna, Capital Cash 183,000.00
1 Cash / 170,000.00 170,000.00 30,000.00 170,000.00 Cosmetic and Beauty Supplies 8,000.00
Flor Luna, Capital / 170,000.00 40,000.00 10,000.00 Beauty Equipment 30,000.00
To record initial investment 30,000.00 5,000.00 Accounts Payable 13,000.00
# 5,000.00 Flor Luna, Capital 170,000.00
2 Beauty Equipment / 30,000.00 5,000.00 Flor Luna, Drawing 5,000.00
Cash / 30,000.00 2,000.00 Service Income 70,000.00
To record purchase of equipment for cash 240,000.00 57,000.00 Rent Expense 10,000.00
183,000.00 Water and Electricity Expense 2,000.00
Cosmetic and Beauty Supplies Expense 15,000.00
# TOTAL 253,000.00 253,000.00
3 Rent Expense / 10,000.00 Beauty Equipment Accounts Payable
Cash / 10,000.00 30,000.00 2,000.00 15,000.00
To record payment of rent 30,000.00 13,000.00
#
4 Cosmetic and Beauty Supplies / 20,000.00
Cash / 5,000.00
Accounts Payable / 15,000.00
Purchase of supplies for cash and on account Rent Expense Service Income
# 10,000.00 40,000.00
5 Accounts Payable / 2,000.00 30,000.00
Cosmetic and Beauty Supplies / 2,000.00 70,000.00
To record return of supplies
#
6 Cash / 40,000.00
Service Income / 40,000.00 Cosmetic and Beauty Supplies
To record service income 20,000.00 2,000.00
# 5,000.00 15,000.00
7 Flor Luna, Drawing / 5,000.00 25,000.00 17,000.00
Cash / 5,000.00 8,000.00
To record drawing
#
8 Cosmetic and Beauty Supplies / 5,000.00 Flor Luna, Drawing
Cash / 5,000.00 5,000.00
To record purchase of supplies
#
9 Water and Electricity Expense / 2,000.00
Cash / 2,000.00
To record water and electricity expense
# Water and Electricity Expense
10 Cash / 30,000.00 2,000.00
Service Income / 30,000.00
To record service income
#
11 Cosmetic and Beauty Supplies Expense / 15,000.00
Cosmetic and Beauty Supplies / 15,000.00
To record cosmetic and beauty supplies expense Cosmetic and Beauty Supplies Expense
15,000.00