NORMAL BALANCE CHART

Dr.............|.......Cr....

--------------------------------

Asset.........| Liabilities

Drawings...| Equity

Expenses..| Revenue

1. Read the transaction

ex: bought office equipment for php300 on account.

2. Ano meron sa transaction?

-OFFICE EQUIPMENT

Ano ginawa dito?

- bought(binili)

How much?

- 300 pesos

Ano ito? Asset? Owner's Drawings? Expenses? liabilities? Owner's equity? Revenue/income?

- Asset

Nadagdagan or nabawasan tayo nito?

-nadagdagan kasi binili. INCREASE +

-ON ACCOUNT

Ano ginawa dito?

- on account, meaning utang(debt) this is an ACCOUNTS PAYABLE

How much?

- 300 pesos
 Ano ito? Asset? Owner's Drawings? Expenses? Liabilities? Owner's equity? Revenue/income?

- Liabilities

Nadagdagan or nabawasan tayo nito?

- nadagdagan tayo ng utang. INCREASE +

-Office equipment, INCREASE in ASSET

-Accounts Payable, INCREASE in LIABILITIES

3. Gamitin ang normal balance chart

saan nakalagay ang ASSET normal balance chart (in this trasaction, our asset is office equipt)

- na sa left side(meaning debit) ang asset.

- nag increase ang ating ASSET sa trasaction na ito. Kaya sa LEFT SIDE (debit) mo siya ilalagay.

Kapag naman nag decrease ang asset, sa kabilang pwesto nito mo siya ilalagay which is the right
side(CREDIT)

→......debit...................|....................credit

--------------------------------------------------------------

Office equipment 300 |

saan nakalagay ang LIABILITIES sa normal balance chart(in this trasaction, our liability is accounts
payable)

- na sa right side(meaning credit) ang liabilities.

- nag increase ang ating LIABILITY sa trasaction na ito. Kaya sa RIGHT SIDE (credit) mo siya ilalagay.

Kapag naman nag decrease ang liabilities, sa kabilang pwesto nito mo siya ilalagay which is the left
side(DEBIT)

JOURNAL ENTRY (answer)

→......debit...................|..................credit

-----------------------------------------------------------------------

Office equipment 300 | Accounts Payable 300

*always reffer on normal balance chart, there's more tips i can teach you using that chart for more
detailed explanation. Tell me if u want me to do a video on youtube. Hehe ☺