Professional Documents
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BKPNG Activity 2
BKPNG Activity 2
NAME:_________________________________________________________________________________________
Instruction: The following “paired” transactions are related to each other. Determine the value received or DEBIT and
the value parted with or CREDIT.
Debit Credit
A-1 Henry Chua invested cash in the business.
2 Henry Chua withdrew cash from the business.
B-1 Bought shop supplies on account from Kath Ramos.
2 Paid in full its account with Kath Ramos.
C-1 Rendered services on account to Nathan Sy.
2 Collected in full the account of Nathan Sy.
D-1 Sold an old typewriter on account to Barbie Reyes.
2 Collected in full the account of Barbie Reyes.
E-1 Borrowed money from James Tan and issued a promissory note to him
2 Paid its promissory note issued to James Tan.
F-1 Received a note from Marvin Ongkiko for services rendered on account.
2 Collected in full the note issued by Marvin Ongkiko.
G-1 Bought a new computer on account from Liza Escodero.
2 Paid its account with Liza Escodero.
H-1 Received a promissory note from Rogie Sanchez for borrowed money.
2 Collected in full the promissory note issued by Rogie Sanchez.
Instruction: Determine the Value Received or DEBIT and Value Parted With or CREDIT and indicate the account
classification as to Asset, Liability, Owner’s Equity, Income and Expenses. The transaction of Sept. 1 is answered for
your guide.
The following were the transactions of Mikan Maray during the month of September 2023.
Sept. 1 Made cash investment to the business.
3 Rendered service on account.
5 Borrowed money from a bank with a note issued.
8 Received cash for services rendered.
10 Withdrew cash from the business.
12 Paid business permits.
14 Received a promissory note for a service rendered.
16 Made additional investment – computer.
17 Collected a customer’s account.
20 Paid postage and stamps.
22 Paid light and water bills (Utilities Expense).
29 Paid the promissory note issued.
30 Paid salaries to employees.
Account Account
Date Value Received or DEBIT = Value Parted With or CREDIT
Classification Classification
Sept. 1 Cash Asset = Maray, Capital Owner’s Equity
3
5
8
10
12
14
16
17
20
22
29
30
Determine the effects (increase/decrease) of the following transactions on the elements of Financial Statements.
Sample: Paid rentals for the month.
Increase in Expense and Decrease in Asset
The formation of an Accounting Equation is presented below. Fill in the amounts in each of the Accounting Value
affected by the given transactions. For your guide, the “BALANCES” of each is already given and transaction No. 1 is
answered. Use a parenthesis sign for the decrease.
Transactions Assets = Liabilities + Capital
1. Mr. Pedro Matapang invested cash in the business, P150,000. P150,000 P150,000
2. Rendered service to a client on account, P4,000.
3. Bought computer on account, P40,000.
4. Pedro Matapang withdrew cash of P5,000.
5. Paid office rental for the month, P1,000.
6. Partial payment of account, P3,000.
7. Pedro Matapang invested office table, P10,000.
8. Partial collection of a client’s account, P2,000.
9. Borrowed money from a bank and issued a note, P10,000.
10. Partial payment of account, P2,000.
11. Paid taxes and licenses and other assessments, P1,000.
12. Paid the bank for borrowed money, P10,000.
13. Received cash for services rendered, P3,000.
14. Bought office supplies on account, P5,000 (expense).
15. Full payment of account (Office Supplies), P5,000.
16. Received cash P10,000 but services has not yet been rendered.
BALANCES
Instruction: Analyze and determine the effect of each transaction below on Assets, Liabilities and Owner’s Equity by
using the appropriate account titles. Transaction of Jan. 1 is answered for your guide.
Assets Liabilities Owner’s Equity
Date Increase Decrease Decrease Increase Decrease Increase
DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
Jan. 1 Cash Smith, Capital
5
9
14
19
20
23
25
27
29
30
31
The selected transactions of Mrs. Janine Smith, a practicing accountant, are narrated hereunder:
Jan. 1 Mrs. Janine Smith made an initial cash investment.
5 Rendered professional service on account.
9 Collected cash from a client account.
14 Mrs. Janine Smith withdrew cash from her business for personal use.
19 Bought a car on account.
20 Paid rental for the month.
23 Paid salaries for the month.
25 Paid the car acquired on account.
27 Bought office cabinet on account.
29 Received a promissory note for services rendered.
30 Rendered professional service for cash.
31. Billed a customer for professional service rendered.