Debit, Value received = Credit, Value Parted with

Purchaser
Debit, Bugas =

At the beginning of the year, Sarangani Enterprises had total assets of P700,000 and total liabilities of 500,000.
1. If total assets increased by P150,000 during the year and total liabilities decreased by P80,000, what is the amount
of owner's equity at the end of the year.

Basic Accounting Equation

A = L + OE
A 700,000
L 500,000
700,000 = 500,000 + 200,000
A L OE
700,000 500,000 200,000
150,000 - 80,000
850,000 420,000 430,000
850,000 = 420,000 +430,000

2. If total assets increased to P850,000 during the year and total liabilities decreased to P400,000, what is the amount of own
A L OE
850,000 400,000 450,000

3. If total assets increased by 30% which corresponds to decrease in total liabilities by 20%, what is the amount of owner's eq
A L OE
700,000 500,000
30% 20%
210,000 100,000

700,000 500,000
210,000 -100,000
910,000 400,000 510,000

4. If total assets decreased by P50,000 and owner's equity remained the same, how much is total liabilities at the end of the y
A L OE
700,000 500,000 200,000
- 50,000 -
650,000 450,000 200,000

A - OE = L

A= L OE
Debit Credit Credit

Assets
Current Assets
Cash
Petty cash fund
Cash equivalents
Notes Receivable
Accounts receivable
500,000 500,000
200,000 100,000
300,000 - 50,000
550,000
bilities of 500,000.
000, what is the amount

,000, what is the amount of owner's equity?

what is the amount of owner's equity?

otal liabilities at the end of the year?

Debit, Value received = Credit, Value Parted with
Purchaser
Debit, Bugas = Cash, Credit

Seller
Cash, Debit = Sales

Render
Accounts receivable = Service Income

Nagpaayo
Repairs and maintenance = Accounts payable

Bought a car for cash, P850,000

Car 850,000
Cash 500,000
Note payable 350,000
Bought a car for cash 500,000 and the remaing is on account

Sold a car for cash

Cash 850,000
Car 850,000
Sold car for cash
Transactions
1 Bought a delivery car for cash, P600,000 Assets
Liabilities
Delivery equipment 600,000 Capital
Cash 600,000 Drawing
Income
2 Sold an old computer for cash Expense
Cash 20,000
Office equipment 20,000

3 Bought laundry supplies on credit from SM City - Davao, P35,000

Laundary supplies 35,000
Accounts payable 35,000

4 Paid our account with SM City - Davao P35,000

Accounts payable 35,000
Cash 35,000

5 Bought an office table on account from Emcor, P25,000 and a promissory note was issued
Office furniture and fixtures 25,000
Notes payable 25,000

6 Paid our account with Emcor, P25,000 and get back the note we issued
Notes payable 25,000
Cash 25,000

7 Received cash, P15,000 for services render to a customer

Cash 15,000
Service Income 15,000

8 Rendered services to a customer, P12,000. The customer made an oral promise to pay.
Accounts receivable 12,000
Service Income 12,000

9 Collected the customer's account, P12,000. (Refer to trasaction 8)

Cash 12,000
Accounts receivable 12,000

10 Rendered services to a customer, P16,000. The customer gave us his written promise to pay.
Notes receivable 16,000
Service Income 16,000

11 Collected the customer's promissory note, P16,000.

 Cash 16,000
Notes receivable 16,000

12 Mr. Tyrone Gutierez invests cash of P1,000,000 in the business.

Cash 1,000,000
Gutierez, Capital 1,000,000

13 Mr. Tyrone Gutieres withdraws cash P25,000 from the business for his personal use.
Gutierez, drawing 25,000
Cash 25,000

14 Paid salaries to employees for the month, P20,000.

Salaries expense 20,000
Cash 20,000
 (Increase) (Decrease)
Normal Balance
A D C
L C D
C C D
D D C
I C D
E D C

T- Account
Debit Side Credit side Assets

Delivery Equipment Cash

1 600,000 2 20,000 600,000 1 Owner's Equity
7 15,000 35,000 4
9 12,000 25,000 6
11 16,000 25,000 13
12 1,000,000 20,000 14
Office Equipment 1,063,000 705,000
20,000 2 358,000

Laundry Supplies Accounts payable

3 35,000 4 35,000 35,000 3
-

Office Furniture and Fixtures Notes payable

5 25,000 6 25,000 25,000 5
-

Service Income Notes receivable

15,000 7 10 16,000 16,000 11
12,000 8 -
16,000 10
 43,000

Accounts receivable Gutierez, Capital

8 12,000 12,000 9 1,000,000 12
-

Gutierez, Darwing
### 25,000

Salaries expense
### 20,000
 Debit Credit
Cash 358,000
Delivery Equipment 600,000
Office Equipment 20,000
Laundry Supplies 35,000
Office Furniture and Fixtures 25,000
Gutierez, Capital 1,000,000
Gutierez, Darwing 25,000
Service Income 43,000
Salaries expense 20,000
Total 1,063,000 1,063,000
 2020 Particulars F Debit Credit
Jan 1 Delivery Equipment 600,000 Assets
Cash 600,000 Liabilities
Capital
2 Cash 20,000 Drawing
Office equipment 20,000 Income
Expense
3 Laundry Supplies 35,000
Accounts payable 35,000
Delivery Equipment
4 Accounts payable 35,000 1-Jan 600,000
Cash 35,000

Feb 5 Office Furniture and Fixtures 25,000

Notes payable 25,000
Cash
6 Notes payable 25,000 Jan. 2 20,000
Cash 25,000 Feb-07 15,000
Feb-09 12,000
7 Cash 15,000 Feb-11 16,000
Service Income 15,000 Feb-12 1,000,000
1,063,000
8 Accounts Receivable 12,000 358,000
Service Income 12,000 Accounts payable
Jan. 4 35,000
9 Cash 12,000
Accounts Receivable 12,000

10 Notes Receivable 16,000

Service Income 16,000 Notes payable
Feb-06 25,000
11 Cash 16,000
Notes Receivable 16,000

12 Cash 1,000,000
Gutierez, Capital 1,000,000 Accounts Receivable
Feb-08 12,000
13 Gutierez, Drawing 25,000 -
Cash 25,000

14 Salaries Expense 20,000

Cash 20,000
Gutierez, Capital
 Salaries Expense
Feb-14 20,000
 (Increase(Decrease)
Normal Bal
A D C
L C D
C C D
D D C Tyrone Gutiere
I C D Trial Balance
E D C For the Month-ended Febr

Delivery Equipment Office equipment Account Titles

20,000 Jan. 2 Cash
Laundry Supplies
Delivery Equipment
Office equipment
Office Furniture and Fixtures
Cash Gutierez, Capital
600,000 1-Jan Laundry Supplies Gutierez, Drawing
35,000 Jan. 4 Jan. 3 35,000 Service Income
25,000 Feb-06 Salaries Expense
25,000 Feb-13 Total
20,000 Feb-14
705,000

Accounts payable Office Furniture and Fixtures

35,000 Jan. 3 Feb. 5 25,000
-

Notes payable Service Income

25,000 Feb-05 15,000 Feb-07
- 12,000 Feb-08
16,000 Feb-10
43,000

Accounts Receivable Notes Receivable

12,000 Feb-09 ### 16,000 16,000 Feb-11
-

Gutierez, Capital Gutierez, Drawing

1,000,000 Feb-12 ### 25,000
Salaries Expense
 Tyrone GutiereZ
Trial Balance
For the Month-ended February 28, 2020

Debit Credit
₱ 358,000
35,000
600,000
₱ 20,000
niture and Fixtures 25,000
1,000,000
25,000
43,000
20,000
₱ 1,063,000 ₱ 1,063,000
A
L
C
A=L+C