Rules of Debit and Credit

Accounts Normal Balance/To Increase To Decrease

ASSETS Debit Credit
LIABILITIES Credit Debit
CAPITAL Credit Debit
DRAWINGS/WITHDRAWALS Debit Credit
REVENUES Credit Debit
EXPENSES Debit Credit

Chart of Accounts
ASSETS REVENUES
Cash Service Revenue
Accounts Receivable Other Revenue
Supplies EXPENSES
Land Salaries Expense
Furniture Telephone Expense
Equipment Depreciation Expense
Computer Rent Expense
Aircon Water Expense
LIABILITIES Supplies Expense
Accounts Payable Bad Debts Expense
Notes Payable Electricity Expense
Accrued Liabilities
Loans Payable
Other Payables
EQUITY
X, Withdrawals
X, Capital
On January 2023 Mr. X opened XYZ Computer Shop, and completed the following transactions.
May 1 Mr. X invested 250,000 cash to open up computer shop.
2 Hired employees with a total contract salary of 30,000 monthly.
2 Mr. X bought equipment worth 50,000 paid cash 25,000 and half on credit.
3 Purchased computers for cash 6,000.
6 Purchased air conditioning unit on credit 10,000
7 Mr. X made additional investment for the computer shop 50,000 cash.
10 Borrowed cash from the bank payable in a year 40,000.
15 Mr. X made additional investment 75,000.
16 Paid salaries to employees 15,000.
17 Made partial payment to the bank 20,000.
20 Purchased new furniture on credit 10,000
21 Billed customers for services rendered on account 30,000.
25 Collected from customers billed on account 10,000.
27 Rendered services for cash to customers 45,000.
28 Paid telephone bills 5,000.
28 Paid rental of the computer shop 10,000
29 Received electricity bill 3,000.
30 Mr. X withdraw cash 5,000.
31 Paid water bill 2,000.
31 Paid salaries to employees 15,000.