FABM 1: Review

5 Major Types of Accounts

1.ASSETS
2.LIABILITIES
3.OWNER’S EQUITY
4.REVENUE/INCOME
5.EXPENSES
Chart of Accounts
 ASSETS
110 Cash
111 Notes Receivables
112 Accounts Receivables
113 Interest Receivables
114 Merchandise Inventory
115 Office Supplies
116Prepaid Insurance
117 Land
118 Store Equipment
119 Accumulated Depreciation – office equipment
 Liabilities
210 Accounts Payable
211 Notes Payable
212 Mortgages
213 Bonds
 Owner’s Equity
300 Capital
301 Withdrawals/ Drawings
 Revenues
400 Service Revenue
401 Income (Rent Income and other incomes)
402 Sales
 Expenses
500 Salaries Expenses
501 Utilities Expenses
502 Rent Expenses
503 Miscellaneous Expenses
Rules on Journalizing
• Debit should always be equal to Credit.
Ex. Cash 100, 000
Dina Tuto’s Capital 100, 000
To record the investment of Ms. Dina Tuto.
• Double Entry System of accounting. There should be at least two or
more accounts that is affected in every transactions.
• The normal balance of the accounts are the side that receives the
increase.
The normal balance of ASSETS and EXPENSES
and the DRAWINGS IS DEBIT (Dr.)

CASH
The normal balance of Liabilities, OE and
Revenue is CREDIT (Cr.)
Accounts Payable
T – Account or the Ledger

Cash
(1) P80, 000 P5,000 (4)
(8) 200, 000 60, 000 (6)
20, 000 (7)
P280, 000 60, 000 (9)
80, 000 (10)

P55,000 P225, 000

Running Balance
Account Title: Cash 110
Date Dr. Cr. Balance
(1) 80, 000 80 ,000
(4) 5, 000 75, 000
(6) 60, 000 15,000
(7) 20, 000 (5, 000)
(8) 200, 000 195, 000
(9) 60, 000 135, 000
(10) 80,000 P55,000