No.

Assets Liabilities Proprietorship

Account Titles Amount Account Titles Amount Account Titles Amount
1 Cash 50,000.00 Abad, Capital 50,000.00
2 Cash (4,500.00) Rent Expense (4,500.00)
3 Accounts Payable 1,500.00 Supplies Expense (1,500.00)
4 Office Furniture 18,000.00 Accounts Payable 18,000.00
5 Cash 6,000.00 Commission Income 6,000.00
6 Accounts Payable 2,500.00 Advertising Expense (2,500.00)
7 Cash (3,800.00) Salary Expense (3,800.00)
8 Accounts Receivable 21,000.00 Commission Income 21,000.00
9 Cash 11,000.00
Accounts Receivable (11,000.00)
10 Notes Receivable 10,000.00
Accounts Receivable (10,000.00)
11 Cash (850.00) Telephone &Telegram (850.00)
12 Cash 25,000.00 Notes Payable 25,000.00
13 Cash (5,000.00) Abad, Drawing (5,000.00)
14 Notes Payable 1,500.00
Accounts Payable (1,500.00)
15 Cash 15,000.00 Abad, Capital 15,000.00
P 120,850.00 P 47,000.00 P 73,850.00

Asset= Liabilities + Proprietorship

120,850.00= 47,000.00 + 73,850.00

120,850.00=120,850.00
No. ASSETS LIABILITIES PROPRIETORSHIP
Accounts Notes Account Expenses Account
Cash Office Furniture Notes Payable Net Capital Revenues Expenses
Receivable Receivable Payable Title
1 P 50,000.00 P 50,000.00
2 (4,500.00) (4,500.00) Rent Expense
3 P 1,500.00 (1,500.00) Supplies Expense
4 18,000.00 18,000.00
5 6,000.00 6,000.00
6 2,500.00 (2,500.00) Advertising Expense
7 (3,800.00) (3,800.00) Salary Expense
8 P 21,000.00 21,000.00
9 11,000.00 (11,000.00)
10 (10,000.00) 10,000.00
11 (850.00) (850.00) Telephone and
Telegram
12 25,000.00 P 25,000.00
13 5,000.00 (5,000.00)
14 (1,500.00) P 1,500.00
15 15,000.00 15,000.00
P 92,850.00 P 10,000.00 P 18,000.00 P 20,500.00 P 26,000.00 P 60,000.00 P 27,000.00 (P
13,150.00)
P 120,850.00 P 47,000.00 P 73,850.00

Note:

a. Net capital is obtained as follows:

Abad, Capital ………………………………. P 65,000.00
Less: Abad, Drawing…………………….. 5,000.00 c. Total Proprietorship may be shown as follows:
Net Capital ………………………………… P 60,000.00 Net Capital ………………………………….. P 60,000.00
Add- Net Income for the month ….. 13,850.00
b. Net Income for the month may be determine as follows: Total Proprietorship …………………….. P 73,850.00
Total Revenues ………………………….. P 27,000.00
Less: Total Expenses ………………….. 13,150.00 d. Income Statement and balance sheet will discuss later.
Net Income for the period …………. 13,850.00