UNIVERSITY OF SAN CARLOS

SCHOOL OF BUSINESS AND ECONOMICS

MBA2008B – INTRODUCTION TO ACCOUNTING PRINCIPLES
EXERCISE NO. 3

NAME OF STUDENT: ___________________________________________ SCORE: ________________

EXERCISE ON DEBIT AND CREDIT

Indicate on the spaces provided after each number, the account/s to be debited and credited based
on the chart of accounts provided below.

Cash
Accounts Receivable
Notes Receivable
Merchandise Inventory
Furnitures and Fixtures
Office Equipment
Accounts Payable
Notes Payable
SSS, PHIC & HDMF Payable
Capital
Service Revenue
Purchases
Purchase Returns
Salaries and Wages
SSS, PHIC & HDMF Contributions
Rent Expense
Charitable Contributions
Taxes and Licenses

Transaction/Event Debit Credit

(Value Received) (Value Parted With)
1. Investment of cash by the
owner to the business.
2. Investment of office
furniture by the owner to
the business.
3. Bought office equipment
for cash.
4. Bought merchandise on
account.
5. Returned some
merchandise bought in #4.
6. Paid in cash ½ of the
balance of the account in
#5
7. Billed a client for
professional services
rendered by the business.
8. Collected in cash 40% of
the account in #7.
9. The client in #7 settled the
60% balance of the account
by issuing a non-interest
bearing note.
10. Collected in note in cash in
#9.
11. Bought a typewriter on
account.
12. Returned the typewriter
bought in #11 at it was
defective.
13. Bought merchandise on
account; a note was issued
for it.
14. Paid in cash the note in
#13.
15. Paid in cash rent for the
office.
16. Paid salaries of employees.
17. Set up of employer’s
contribution for the SSS of
employees and workers
18. Remittance of the
employer’s SSS
contribution to SSS for the
premiums in #17.
19. Cash donations made by
the business to the victims
of calamity.
20. Paid business taxes.