Professional Documents
Culture Documents
PROBLEM #02
A company had a beginning total assets balance of P100,000, half of which were cash and the other half were accounts receivables. On
the same day, it had liabilities composing only of accounts payable amounting to P40,000. The next day, it collected all its accounts
receivable and paid half of its accounts payable. How much was the cash balance after these transactions?
PROBLEM #03
A company had total assets amounting to P250,000 and total equity amounting to P150,000. The next day, it made payments to its
vendors amounting to P45,000. How much was total liabilities after the transaction?
PROBLEM #04
At the beginning of the year, a company had a cash balance of P100,000. During the year, it rendered professional services amounting
to P500,000. Of this amount, P300,000 were immediately paid by its clients in cash, and the remaining balanced were on credit. Out of
all the accounts receivable, 75% were collected before the year ended. Assuming these were the only transactions of the company
during the year, how much is the ending balance of cash?
PROBLEM #05
At the beginning of the year, a company had P500,000 worth of assets and P180,000 worth of liabilities. During the year, the owner
made an additional investment of P100,000. The company was able to render professional services to its clients, earning P200,000
(50% cash, 505 on credit.) It also incurred expenses amounting to P50,000, all of which were paid in cash. Before the year ended, the
owner withdrew P20,000 from the company. How much is the ending balance of equity?
PROBLEM #06
During the year, a company rendered professional services amounting to P460,000, all of which were on account. Out of all its accounts
receivables, only P250,000 were collected. Also, the company purchased supplies worth P70,000, paid in cash. If cash balance at the
end of the year amounted to P500,000, then how much was cash at the beginning of the year?
PROBLEM #07
The company paid P120,000 to purchase an equipment. The equipment will be worth P130,000 in the next month, and was worth
P110,000 last month. How much is the net effect of this purchase to the assets of the company?
PROBLEM #08
The company purchased land for P1,000,000 in exchange for a promissory note for the whole amount payable after one year. The land
is worth P800,000 for tax assessment purposes and will be worth P1,200,000 next year. How much is the increase to the assets of the
company due to this purchase?
PROBLEM #09
At the beginning of the year, the company had total assets of P260,000 and total liabilities of P125,000
1.1 - If during the year, total liabilities decreased by P37,500 and equity increased by P25,000, how much is the total assets
at the end of the year?
1.2 - If during the year, equity decreased by P45,000 and assets increased by P30,000, by how much did the total liability
increase/decrease for the year?
1.3 - If during the year, total liabilities increased by P27,500 and assets decreased by P100,000, how much did equity
increase/decrease at the end of the year?
JUN 13 Rendered professional services to a client on credit. Billed the client for P50,000
14 Incurred and paid P5,000 transportation expense by travelling to and from the client.
JUL 01 Paid the remaining balance from the office supplies purchase
25 Purchase of equipment for the personal use of Louie, worth P25,000 paid in cash
Assuming these were all the transactions of LGM for the year ended July 31, 2020:
1.1 - How much was ending balance of cash?
1.2 - How much was total equity at the end of the year?
1.3 - How much was to be considered as expense of the year?
1.4 - How much was total assets at the end of the year?
1.5 - How much was to be considered as revenue for the year?
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FINANCIAL ACCOUNTING AND REPORTING
PROBLEM SETS | PRACTICE
PROBLEM #11
At the beginning of the year, EFR Company had total assets of P3,000,000 and total liabilities of P2,000,000. By the end of the year,
total equity increased by P500,000 while total liabilities decreased by P200,000. How much is total owner’s capital by the end of the
year?
PROBLEM #12
Refer to the information provided in the previous question. How much is the total assets by the end of the year?
PROBLEM #13
Refer to the information in question 1, what happened to assets during the year?
PROBLEM #14
Owner’s capital is P900,000. If creditors have a 60% claim on total assets, how much is total assets?
PROBLEM #15
By the end of year 2016, Procopio’s capital balance is P220,000. For the year 2017, the firm reported net income of P50,000 of which
Procopio made a permanent withdrawal of P30,000 as his share of the income. How much was Procopio’s capital balance at the end of
the year 2017?
PROBLEM #16
At the beginning of the year, Cool Company’s assets are P710,458 and its equity is P262,479. During the year, assets increased
P77,822 and liabilities increased P53,298. What is the equity at the end of the year?
PROBLEM #17
At the beginning of the year, Joke Company’s liabilities equal P100,000. During the year, assets increase by P40,000, and at year-end
assets equal P230,000. Liabilities decrease P25,000 during the year. What are the beginning and ending amounts of equity?
PROBLEM #18
Assets amounted to P500,000. 35% of which is equity, how much must be the liabilities?
PROBLEM #19
Assets amounted to P3.5M. 1/4 of which is liability, how much is equity?
PROBLEM #20
Equity is P100,000. This represents 40% of the total assets. How much is the liability?
PROBLEM #21
At the beginning of the year, total assets amounted to P1,200,000 while total owner’s equity amounted to P350,000. During the year,
assets increased by P60,000 while liabilities decreased by 20%. If the owner contributed P18,200 and withdrawn P8,020 during the
year, how much is profit or loss earned or incurred by the entity? Indicate whether profit or loss.
PROBLEM #22
If total assets increased by P54,500 and owner’s equity increased by P40,000 during the period, the amount and direction (increase or
decrease) of the period’s change in total liabilities was?
PROBLEM #23
The owner’s equity at the beginning of the period was P100,000; at the end of the period, assets P155,000 and liabilities were P59,000.
If the owner made no additional investments or withdrawals during the period, did the business incur a net income or a net loss for the
period?
PROBLEM #24
What was the amount of the net income or net loss indicated in the previous question?
PROBLEM #25
If liabilities are P75,000 and owner’s equity is P35,000, the amount of the assets is?
PROBLEM #26
If assets are P190,000 and owner’s is P50,000, the amount of the liabilities is?
PROBLEM #27
If total assets increased by P30,000 and liabilities increased by P20,000 during the period, the amount and direction (increase or
decrease) of the period’s change in owner’s equity was?
PROBLEM #28
The owner’s equity at the beginning of the period was P45,000; at the end of the period, assets were P140,000 and liabilities were
P71,000. If the owner made no additional investments or withdrawals during the period, did the business incur a net income or a net
loss for the period?
PROBLEM #29
What was the amount of net income or net loss indicated in the previous question?
PROBLEM #30
If assets are P110,000 and owner’s equity is P37,000, the amount of liabilities is?
PROBLEM #31
Total assets amounted to P3,500,000. Liabilities are 40% more than owner’s equity. How much is the total liability?
PROBLEM #32
Total assets amounted to P800,000. Owner’s equity is 20% lesser than total liabilities. How much is the owner’s equity?
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FINANCIAL ACCOUNTING AND REPORTING
PROBLEM SETS | PRACTICE
PROBLEM #33
At the beginning of the year, Claro’s Company’s Assets equal P600,000. During the year, Liabilities increased by P50,000, and at the
year-end liabilities equal P250,000. Assets decreased to P580,000 at the end of the year. What are the beginning and ending amounts
of equity?
PROBLEM #34
Serj Company had Total Assets of P2,000,000 at the beginning of period, of which 70% of total assets is claimed by creditors. At the
end of accounting period, liabilities increased by P100,000 and the claim of the creditor is down to 60% of assets. If there were no
additional investment or drawings made, answer the following:
PROBLEM #35
CPA Consultancy Services Company
Debit Credit
Cash 252,000
Equipment 200,000
Building 1,000,000
Land 1,200,000
Capital 1,510,000
Drawing 65,000
● an entry to record payment of accounts payable amounting to P10,000 was debited to accounts payable of P10,000 and
credit cash P1,000
● the journal entry to record billing of customers for P44,000 was correct, however posting this transaction to service revenue
account was understated by P4,000
● payment of insurance was recorded as debit cash P9,000 and credit insurance expense P9,000
● the entry to record payment of utilities for P15,000 was recorded as debit Drawings P15,000 and credit cash P15,000
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FINANCIAL ACCOUNTING AND REPORTING
PROBLEM SETS | PRACTICE
PROBLEM #36
Allie Nursing Homes
Debit Credit
Cash 3,340
Equipment 2,600
● Cash received from a customer in payment of its account was debited for P580, and Accounts Receivable was credited for
the same amount. The actual collection was for P850.
● The purchase of a computer on account for P710 was recorded as a debit to Supplies for P710 and a credit to Accounts
Payable for P710.
● Services were performed on account for a client for P980. Accounts Receivable was debited for P980, and Service Revenue
was credited for P98.
● A payment of a balance due for P306 was credited to Cash for P306 and credited to Accounts Payable for P360.The
withdrawal of P600 cash for Allie’s personal use was debited to Salaries and Wages Expense for P600 and credited to Cash
for P600.
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FINANCIAL ACCOUNTING AND REPORTING
PROBLEM SETS | PRACTICE
PROBLEM #37
Davao Duplicators
Debit Credit
Cash 44,800
Supplies 70,800
Equipment 560,000
Revenues 371,600
TOTAL
Upon reviewing the trial balance and the process of transferring the amounts in the ledger accounts to the trial balance, two
errors were discovered:
When the balances of the ledger account were recomputed, two more errors were discovered:
d. The total debits in the cash account amounted to P184,600 and credits totaled P149,800
Discovered four more errors when postings were retraced from the journal to the ledger:
e. A debit posting to Accounts Receivable in the amount of P52,000 should have been P5,200
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FINANCIAL ACCOUNTING AND REPORTING
PROBLEM SETS | PRACTICE
PROBLEM #38
Weigh Loss Salon
Debit Credit
Cash 52,700
● A journal entry for cash received of P2,250 on treatment fees earned was not posted
● Supplies Used was copied in the trial balance on the wrong side