Case 1

Date Accounts Debit Credit Assets Liabilities Equity

Ex. Mr. X invested furniture in the business ex Furniture xx Increase No effect Increase
Capital xx
1. The owner invests cash to open up a business. 1 Cash xx Increase No effect
X, Capital xx Increase
2. The owner withdraws business assets for personal use. 2 X, Withdrawals xx No effect Decrease
Cash xx Decrease
3. The company receives cash from a bank loan. 3 Cash xx Increase No effect
Loans Payable xx Increase
4. The company repays the bank that had lent money. 4 Loans Payable xx Decrease No effect
Cash xx Decrease
5. The company purchases equipment with its cash. 5 Equipment xx Increase No Effect No effect
Cash xx Decrease
6. The owner contributes her personal truck to the business. 6 Truck xx Increase No effect
X, Capital xx Increase
7. The company purchase supplies on credit. 7 Supplies xx Increase No effect
Accounts Payable xx Increase
8. The company purchase land by paying half in cash and 8 Land xx Increase No effect
signing a note. Cash xx Decrease
Notes Payable xx Increase
9. The owner withdraws cash for personal use. 9 X, Withdrawals xx No effect Decrease
Cash xx Decrease
10. The company repays the suppliers. 10 Accounts Payable xx Decrease No effect
Cash xx Decrease
11. Made sales, half of which is cash, and the other half is on credit. 11 Cash xx Increase No effect
Accounts Receivable xx Increase
Sales Revenue xx Increase
12. Paid the salaries of the employees 12 Salaries Expense xx No effect Decrease
Cash xx Decrease

CHART OF ACCOUNTS Rules of Debit and Credit

ASSETS LIABILITIES EQUITY Accounts Normal Balance/ To To Decrease
CAPITAL WITHDAWALS REVENUE EXPENSES Increase
Cash Accounts X, Capital X, Withdrawals Sales Salaries Assets Debit Credit
payable revenue expense Liabilities Credit Debit
Accounts Notes Capital Credit Debit
receivable payable Withdrawals Debit Credit
Supplies Loans Revenues Credit Debit
 payable Expenses Debit Credit
Truck
Equipment
Land
Case 2
Date Accounts Debit Credit Assets Liabilities Capital Withdrawals Revenues Expenses
a. Ms. Y invested cash in the business amounting to a Cash 500,000 500,000
500,000. Y, Capital 500,000 500,000
b. Purchased equipment for cash amounting to b Equipment 75,000 75,000
75,000. Cash 75,000 (75,000)
c. Purchased inventories through credit amounting c Inventories 40,000 40,000
to 40,000. Accounts Payable 40,000 40,000
d. Purchased furniture amounting to 35,000. Made d Furniture 35,000 35,000
partial payment with cash 15,000 and incurred a Cash 15,000 (15,000)
notes payable for the balance 20,000. Notes Payable 20,000 20,000
e. Paid cash to the local government for business e Business and license expense 5,000 5,000
permit 5,000. Cash 5,000 (5,000)
f. Made sales of 20,000: cash sales 12,500, credit f Cash 12,500 12,500
sales 7,500. Accounts Receivable 7,500 7,500
Sales Revenue 20,000 20,000
g. Paid the utilities amounted to 8,500. g Utilities expense 8,500 8,500
Cash 8,500 (8,500)
h. Paid the accounts payable in (d). h Notes Payable 20,000 (20,000)
Cash 20,000 (20,000)
i. Collected 2,500 out of the 7,500 credit sales. i Cash 2,500 2,500
Accounts Receivable 2,500 (2,500)
j. Paid employees 6,000. j Salaries Expenses 6,000
Cash 6,000 (6,000) 6,000
k. The owner borrowed 250,000 cash to Veterans k Cash 250,000 250,000
Bank. Loans Payable 250,000 250,000
l. Ms. Y withdraw 5,000 for her personal use. l Y, Drawings 5,000 5,000
Cash 5,000 (5,000)
Total 785,500 290,000 500,000 5,000 20,000 19,500
CHART OF ACCOUNTS Rules of Debit and Credit
ASSETS LIABILITIES EQUITY Accounts Normal Balance/ To To Decrease
CAPITAL WITHDAWALS REVENUE EXPENSES Increase
Cash Accounts Y, Capital Y, Drawings Sales Business Assets Debit Credit
payable revenue and licenses Liabilities Credit Debit
expense Capital Credit Debit
 Accounts Notes Salaries Withdrawals Debit Credit
receivable payable expense Revenues Credit Debit
Inventories Loans Utilities Expenses Debit Credit
payable expense
Equipment Salaries
expense
Furniture
Case 2 Additional Questions. Compute for the following.
a. Total assets
 785,500
b. Total liabilities
 290,000
c. Total revenue
 20,000
d. Total expenses
 19,500
e. What is the result of operation? How much?
 Profit of 500
f. Total equity
 495,500

Case 3
Date Accounts Debit Credit Asset Liability Capital/ Revenue Expenses Net Effect
Withdrawals
1.The owner invested cash to an internet 1 Cash 200,000 200,000 Both sides are
business 200,000. Capital 200,000 200,000 equal to 200,000
2. The business purchased internet 2 Equipment 50,000 50,000 Both sides are
equipment in cash 50,000. Cash 50,000 (50,000) equal to 0.
3. The business purchased computer 3 Computer Printers 10,000 10,000 Both sides are
printers on account 10,000. Accounts Payable 10,000 10,000 equal to 10,000
4. The business purchased supplies in 4 Supplies 2,000 2,000 Both sides are
cash 2,000. Cash 2,000 (2,000) equal to 0.
5. The business collected cash from the 5 Cash 50,000 50,000 Both sides are
internet gamers and users 50,000. Service Revenue 50,000 50,000 equal to 50,000
6. The business paid salaries to 6 Salaries Expense 10,000 10,000 Both sides are
employees 10,000. Cash 10,000 (10,000) equal to -10,000
7. The business paid communication 7 Communication Expense 20,000 20,000 Both sides are
expense 20,000. Cash 20,000 (20,000) equal to -20,000
 8. The business paid electricity bills 8 Electricity Expense 2,000 2,000 Both sides are
worth 2,000. Cash 2,000 (2,000) equal to -2,000
9. The owner withdraws cash 5,000. 9 Withdrawals 5,000 (5,000) Both sides are
Cash 5,000 (5,000) equal to -2,000
10. The business partially paid the 10 Accounts Payable 5,000 (5,000) Both sides are
payable incurred in the purchase of Cash 5,000 (5,000) equal to -5,000
computer printers 5,000.
11. The owner invested additional cash 11 Cash 100,000 100,000 Both sides are
to the business 100,000. B, Capital 100,000 100,000 equal to 100,000
Total 318,000 5,000 295,000 50,000 32,000
CHART OF ACCOUNTS Rules of Debit and Credit
ASSETS LIABILITIES EQUITY Accounts Normal Balance/ To Increase To Decrease
CAPITAL WITHDAWALS REVENUE EXPENSES Assets Debit Credit
Cash Accounts B, Capital B, Withdrawals Service Salaries Liabilities Credit Debit
payable revenue expense Capital Credit Debit
Supplies Telephone Withdrawals Debit Credit
expense Revenues Credit Debit
Equipment Electricity Expenses Debit Credit
expense
Computer
Case 3. Additional Questions. Compute for the following.
a. Total assets
 321,000
b. Total liabilities
 5,000
c. Total revenue
 298,000
d. Total expenses
 32,000
e. What is the result of operation? How much?
 Profit of 18,000
f. Total equity
 316,000

Date of Submission: March 10, 2023 (Friday) on or before 11:59PM

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CHART OF ACCOUNTS Rules of Debit and Credit

ASSETS LIABILITIES EQUITY Accounts Normal Balance/ To Increase To Decrease
CAPITAL WITHDAWALS REVENUE EXPENSES Assets Debit Credit
Cash Accounts A, Capital A, Withdrawals Sales Rent Liabilities Credit Debit
payable revenue expense Capital Credit Debit
Accounts Notes Salaries Withdrawals Debit Credit
receivable payable expense Revenues Credit Debit
Equipment Loans Electricity Expenses Debit Credit
payable expense
Computer Water
expense
Aircon Business
permit and
licenses
expense
Furniture

ABC Company
Date Accounts Debit Credit Asset Liability Equity Net Effect
a. Mr. A invested 200,000 cash and furniture a Cash 200,000 200,000 Both sides are equal to
amounting to 50,000 to open up ABC Company. Furniture 50,000 50,000 250,000.
A, Capital 250,000 250,000
b. Purchased equipment for cash amounting to b Equipment 75,000 75,000 Both sides are equal to 0.
75,000 Cash 75,000 (75,000)
c Aircon 25,000 25,000 Both sides are equal to
 c. Purchased aircon through credit amounting to Accounts payable 25,000 25,000 25,000.
25,000
d. Purchased computer through credit amounting to d Computer 30,000 30,000 Both sides are equal to
30,000. Made partial payment of cash 10,000 and Cash 10,000 (10,000) 20,000.
promissory note for the balance . Notes payable 20,000 20,000
e. Paid cash to the local government for business e Business permit and licenses 9,000 (9,000) Both sides are equal to -
permit 9,000. expense 9,000.
Cash 9,000 (9,000)
f. Made sales amounting to 100,000 of which f Cash 50,000 50,000 Both sides are equal to
50,000 is cash sales and the remaining is a Accounts receivable 50,000 50,000 100,000.
credit sale. Sales revenue 100,000 100,000
g. Paid the electricity 3,000; rent 5,000; and g Electricity expense 3,000 (3,000) Both sides are equal to -
water 1,500. Rent expense 5,000 (5,000) 9,500.
Water expense 1,500 (1,500)
Cash 9,500 (9,500)
h. Paid the liability in transaction d. h Notes payable 20,000 (20,000) Both sides are equal to -
Cash 20,000 (20,000) 20,000.
i. Collected the remaining credit sales in i Cash 50,000 50,000 Both sides are equal to 0.
transaction f. Accounts Receivable 50,000 (50,000)
j. Paid the salary of the employees 12,000. j Salaries Expense 12,000 (12,000) Both sides are equal to -
Cash 12,000 (12,000) 12,000.
Total 344,500 25,000 319,500
Additional Questions. Compute for the following.
a. Total assets
 The total assets are 344,500.
b. Total liabilities
 The total liabilities are 25,000.
b. Total revenue
 100,000
c. Total expenses
 21,500
d. What is the result of operation? How much?
 The result of the operation is a profit of 78,500.
f. Total equity
 The total equity are 319,500.