Name: ____________________________________________

Section: ______________________________

Transactions:

a. Received P260,000 cash from clients for services rendered

b. Paid P480,000 of salaries to employees
c. Collected P120,000 from clients on account.
d. The owner, Glyza De Guzman, withdrew P80,000 cash for personal use.
e. Purchased P140,000 of supplies on account.
f. Billed clients P180,000 for services rendered.
g. Paid P100,000 to suppliers on account.

For each of the transactions for Glyza De Guzman Company, a sole proprietorship, fill in the spaces to
answer the following questions:

1. What are the two accounts affected by the transaction?

2. What type of account is affected – Asset, Liability, Owner’s Capital, Owner’s Withdrawal,
Revenue or Expense Account?
3. Should the account be increased or decreased?
4. Should the account be debited or credited?

Tran N Account Affected Type of Account /Title Increase or Debit or

s. o (T-account) Decrease Credit
.

a. 1 ASSETS Cash Increase Debit

.

2 OWNER’S EQUITY Revenue Increase Credit

.

b. 1 ASSETS CASH DECREASE CREDIT

.

2 OWNERS EQUITY SALARIES INCREASE DEBIT

.

c. 1 ASSET ACCOUNT RECEIVABLE INCREASE DEBIT

.

2 OWNERS EQUITY REVENUE INCREASE CREDIT

.
d. 1 ASSET CASH DECREASE CREDIT
.

2 OWNERS EQUITY DE GUZMAN DECREASE DEBIT

. WITHDRAWAL

e. 1 ASSET SUPPLIES INCREASE DEBIT

.

2 LIABILITY ACCOUNT PAYABLE INCREASE CREDIT

.

f. 1 ASSET ACCOUNT RECEIVABLE INCREASE DEBIT

.

2 OWNERS EQUITY REVENUE INCREASE CREDIT

.

g. 1 ASSET CASH DECREASE CREDIT

.

2 OWNERS EQUITY ACCOUNTS PAYABLE DECREASE DEBIT

.