NAME:____________________________________________________________________________________

Determination of Unknown Accounting Elements

The following relates to the financial position of an enterprise:
CASE 1 CASE 2 CASE 3 CASE 4 CASE 5
Assets P175,000 P450,000 P380,000 P520,000
Liabilities 100,000 120,000 260,000
Owner’s Equity P75,000 P180,000 P0

Basic Accounting Equation

ASSETS LIABILITIES CAPITAL
CASE 1 P350,000 P195,000
CASE 2 P250,000 P350,000
CASE 3 P680,000 P450,000
CASE 4 P650,000 P320,000
CASE 5 P275,000 P85,000

Determination of Profit and Loss

The following relates to the operating results (performance) of the business:
CASE 1 CASE 2 CASE 3 CASE 4 CASE 5
Total Income P85,000 P90,000 P60,000 P75,000
Total Expenses 60,000 40,000
Profit (Loss) P60,000 (P10,000) P10,000 P -0-

Determination of Unknown Accounting Values

CASE 1 CASE 2 CASE 3 CASE 4 CASE 5
Assets P60,000 P50,000 P85,000
Liabilities 40,000 40% 35,000
Owner’s Equity P 30% P45,000 P 75% P 50%

Transactions Affecting Changes in Accounting Values

At the beginning of the year, Bulawan Enterprises had total assets of P700,000 and total liabilities of P500,000. Answer
the following questions:
1. If total assets increased by P150,000 during the year and total liabilities decreased by P80,000, what is the amount
of owner’s equity at the end of the year?
2. During the year, total liabilities increased by P100,000 and owner’s equity decreased by P70,000, what is the
amount of total assets at the end of the year?
3. If total assets decreased by P90,000 and owner’s equity increased by P110,000 during the year, what is the amount
of total liabilities at the end of the year?
4. If total assets increased to P850,000 during the year and total liabilities decreased to P400,000, what is the amount
of owner’s equity at the end of the year?
5. During the year, total liabilities increased to P650,000 and owner’s equity increased to P400,000, what is the
amount of total assets at the end of the year?
6. If total assets decreased by P50,000 and owner’s equity remained the same, how much is total liabilities at the end
of the year?
7. If total assets increased by 30% which corresponds to decrease in total liabilities by 20%, what is the amount of
owner’s equity at the end of the year?
8. During the year, total liabilities increased by 40%, and owner’s equity decreased by 30%, what is the amount of total
assets at the end of the year?
9. Total assets increased by 30% and owner’s equity increase by the same percent, what is the amount of total
liabilities at the end of the year?
10. If assets increased by P60,000 and liabilities decreased by P40,000, how much is owner’s equity balance before
these changes took place?

Computation of Unknown Accounting Values

a. Kaye Cee has an obligation P950,000. If the total assets are P1,850,000, how much is the amount of owner’s
equity?
b. Misty Ponce’s residual interest showed a balance of P350,000. If it claims an ownership in assets worth P1,000,000,
how much is the liabilities?
c. Luiz Araneta has an owner’s equity of P700,000 and a financial obligation of P300,000 how much is the firm’s total
assets?
d. As of the end of the period, Clyde Smith’s brokerage firm has a total assets equal to P970,000 and total liabilities
equal to P500,000. What is the equity of Clyde Smith as of the end of the period?
e. Eva Sanchez has put up cash in the amount of P150,000 representing her initial capital. Out of P150,000 cash she
acquired an equipment costing P100,000 which requires a cash outlay of P75,000 and incurs a liability of P25,000.
How much is the owner’s equity at the end of the year?
f. Olivia Madrigal opens a servicing business and started a capital of P200,000. At the end of the year, the creditor’s
claims is P100,000 and the owner’s equity is 80% of the total assets. How much is total assets at the end of the
year?
g. Tessie Lomanta’s owner’s equity at the beginning of the period is 70% of the total assets. If the total assets is
P300,000, how much is the total creditor’s claim at the end of the year?
h. Lerma Travilla-Ursua starts with a Repair Shop business in M’lang, Cotabato. At the beginning of the period her
capital is P350,000 which equaled to her investment. At the end of the period, her capital balance is P450,000 which
is 60% of total assets. How much represents the total claims from the outside creditors?

Calculation of the Unknown

Estimated Uncollectible Account P 6,000 Profit P 10,600
Employees’ Benefits 35,000 Withdrawal 20,000
Salaries and Wages 110,000 Additional Investment 30,000
Uncollectible Accounts 15,000 2. If owner’s equity, beg. was P80,000, how
Professional Income 150,000 much would be the owner’s equity, end?
Depreciation Expense 8,000
Accrued Taxes and Licenses 10,000 Accounts Payable P 90,000
Repairs and Maintenance 9,000 Accounts Receivable 150,000
1. How much is the loss from operation? Cash in Bank 280,000
Accrued Rent Expense 10,000
Owner’s Equity, beg. P 100,000 Arthur Ang, Capital 383,000
Withdrawal during the period 50,000 Prepaid Insurance 18,000
Additional Investment 30,000 Supplies Inventory 15,000
3. If owner’s equity, end is the same as owner’s equity, beginning, Arthur Ang, Drawing 20,000
how much profit generated at the end of the period? 4. Extract the basic accounting equation

Cash on Hand P 80,000 Professional Income P 100,000

Professional Income 130,000 Rent Expense 30,000
Estimated Uncollectible Account 3,000 Carolina Garbo, Drawing 20,000
Furniture and Fixtures 180,000 Taxes and Licenses 15,000
Depreciation Expense 30,000 Miscellaneous Income 25,000
Accu. Depreciation – Furniture & Fixtures 60,000 Carolina Garbo, Capital – beg. 280,000
Supplies Expense 15,000 6. How much is the new Owner’s Equity?
Mateo Roa, Capital – beginning 212,000
Notes Payable 50,000 Service Income P 120,000
Mateo Roa, Drawing 30,000 Equipment 250,000
Accounts Receivable 120,000 Accounts Payable 100,000
5. Extract the basic accounting equation Rent Expense 30,000
Cash in Bank 200,000
Flordeliz Rivera, Capital P 240,000 Kris Tiu, Drawing 50,000
Accounts Receivable 80,000 Kris Tiu, Capital – beginning 310,000
Cash in Bank 230,000 8. Extract the expanded accounting equation
Notes Payable 50,000
Flordeliz Rivera, Drawing 10,000
Accounts Payable 30,000
7. Extract the basic accounting equation

9. A business has an obligation of P450,000. If the total assets are P950,000, how much is the amount of

Proprietorship?
10. A company’s equity showed a balance of P350,000. If it claims an ownership in assets worth P1,000,000, how
much is the liabilities?

11. If an entity’s Gross Revenue is P48,500 and the reported Net Income is P39,000, how much is the amount of
Operating Expenses?

12. Cgee Ningkamot’s Income Statement showed Net Income amounting to P600,000 for the period December 31,
2022. Cardo made withdrawal during the year (2022) P300,000. Total assets were P6,800,000 and Liabilities
amounted to P2,300,000. Determine the following:
Beginning Capital Balance:
Ending Capital Balance:

13. How much is the total Assets? 14. How much is the total Expenses?
Prepaid Insurance P 25,000 Prepaid Expense P 17,000
Salaries Payable 15,000 Accounts Payable 32,000
Supplies 2,000 Depreciation 20,000
Accounts Receivable 50,000 Taxes & Licenses 13,000
Service Revenue 18,000 Heat, Light & Water 4,500

14. How much is the income from operations?

Commission Income P380,000
Rent Expense 27,000
Interest Income 15,200
Unearned Fees 23,500
Supplies Used 12,000
Miscellaneous Expense 21,000
Furniture & Fixtures 270,000

15. If Liability is 40% of the total Assets and Equity is P30,000, determine the following:
Total Assets:
Liability:

16. Service Revenue P200,000

Expenses 43,000
Net Income ?
Liabilities 35,000
Equity 85% of total assets
Assets ?