3rd Quarter Tle Reviewer

ASSET CAPITAL
*Cash *Drawing
*Accounts Receivable *Income/Revenue
*Inventory *Expenses
*Equipment -consumable expense
*Furniture -Rent Expense
*Land -Utilities Expense
*Pre[aid expense -Supply Expense
*Intangible Asset

LIABILITY D-Debit C-Credit

*Accounts Payable E-Expense O-Owner’s C
*Unearned Income/Revenue A-Asset I-Income
D-Drawing L-Liability

TWO MAJOR BOOKS OF ACCOUNT:

*Journal- Book of original entry
*Ledger-Book of final entry

LEDGER- one ledger each account

NAME OF ACCOUNT NO. ??

Date Particular Ref DEBIT CREDIT BALANCE

April 1 Invested Cash J1 ₱85,000 ₱85,000
April 7 Purchased Equipment J1 ₱15,000 70,000
April 10 Paid Business Permit J1 8,000 62,000
April 18 Paid Rent J1 15,000 47,000
April 20 Paid Business Permit J1 5,600 41,400
April 23 Collected Half Payment J1 750 42,150
April 25 Withdrew J2 900 41,250

STEPS IN MAKING TRIAL BALANCE:

TRIAL BALANCE
-list of all accounts
-total of all debits and all credits
-prove that debit is equal to credit

*Purpose
~to ensure that the entries in a company’s bookkeeping system are mathematically
correct
~used as an aid in preparing financial statements

1st Name of company

2nd Trial balance
3rd Date

EXAMPLE:

Ka Oa Company
Trial Balance
April 30, 2015
ACCOUNT TITLE DEBIT CREDIT
Cash ₱34,950

Accounts Receivable 35,750

Equipment 15,000

Furniture 8,000

Accounts Payable ₱1,700

Oa, Capital 85,000

Oa, Drawing 900

Service income 36,500

Rent Expense 15,000

Business Permit Expense 13,600

TOTAL: ₱123,200 ₱123,200

STATEMENT OF PERFORMANCE:
~known as profit and loss statement
~Income Statement
~State of operation
-net profit or loss

SOP- 2 Major accounts 1st – name of company

*Income 2nd - statement of performance
*Expense 3rd - Date

Ka Oa Company
Statement Of Performance
April 30, 2015

Service Income ₱36,500

Rent Expense ₱15,000

Business Permit Expense 13,600

Total Expense (28,600)

Net Income ₱ 7,900

Net Loss -20,700