Sample Problem:

1. 1IS invested P1,000,000 in a computer shop business.

2. Paid a one-year rent, P134,400.
3. Acquired computer equipments, P224,000.
4. Bought office supplies, P8,960.
5. Bought furniture and fixture on credit, P33,600.
6. Collected P22,400 for services rendered.
7. Billed customer for services rendered.
8. Paid utility expense P16,800
9. Paid salary of employees, P12,000.
 ASSETS = LIABILITES + OWNER'S EQUITY

TOTAL - -
OWNER'S EQUITY