If you have a beginning equity of P5,003, a total

income for the period of P 10,004, and incurred

P3,003 expenses, how much is the ending
balance of your equity?
P 10,004-P 3,003=P 7,001
Equity, beg P 5,003
Equity, beg P5,003
Add:Income P10,004
Add:Profit P7,001
Less:Expense(P3,003)
Equity,end P???
12,004
Equity,end P???
12,004

Problem Discussion
 If you have a beginning equity of P12,025, a
total income for the period of P 5,324 and
incurred P9,008 expenses, how much is the
ending balance of your equity?
P 5,324-P 9,008=(P 3,684)
Equity, beg P12,025
Equity, beg P12,025
Add:Income P 5,324
Add:Loss (P3,684)
Less:Expense(P9,008)
Equity,end P???
8,341
Equity,end P???
8,341

Problem Discussion
If you have a beginning If you have a beginning
equity of P7,026 and an equity of P3,010 and an
ending equity of ending equity of P1,010,
P8,026, how much is how much is the your
the your profit(loss)? profit(loss)?

Equity, beg P 7,026 Equity, beg P 3,010

Add:Profit P 1,000
??? Add:Loss (P???
2,000)
Equity,end P 8,026 Equity,end P 1,010

Problem Discussion
 You have total assets, liabilities, and equity of
P10,000, P7,000, and P3,000, respectively, at the
beginning of the period. During the period, your total
liabilities decreased by P4,000 while your profit is
decreased to
P5,000. how much is your ending total assets?

ASSET = LIABILITIES + EQUITY

Beg, balance P 10,000 P 7,000 P 3,000
Adjustments (P 4,000) P 5,000
End, balance PP12,000
11,000
??? PP 4,000
3,000 + P 8,000

Problem Discussion
 Let’s Master the Equation
ASSET = LIABILITIES + EQUITY

??? P 5,500 P 10,500

ASSET = LIABILITIES + EQUITY

P 16,000 P 5,500 P 10,500

Problem Discussion
 ASSET = LIABILITIES + EQUITY

P 97,345 ??? P 35,400

LIABILITIES = ASSET EQUITY

P 61,945 P 97,345 P 35,400

Problem Discussion
 ASSET = LIABILITIES + EQUITY

P 72,250 P 25,999 ???

EQUITY = ASSET LIABILITIES

P 46,251 P 72,250 P 25,999

Problem Discussion
 If you have a total If you have a total
income of P11,450 and income of P14,395 and
total expense of P4,777, total expense of
How much is your P20,020, How much is
profit(loss)? your profit(loss)?

Solution: Solution:
Total Income P11,450 Total Income P 14,395
Less:Expenses P 4,777 Less:Expenses P20,020
Profit P???6,673 Loss (P???
5,625)

Problem Discussion
 If you have a profit of
If you have a profit of
P7,220 and total
P6,222 and total income
expense of P6,115, How
of P12,813, How much is
much is your total
your total expense?
income?

Solution: Solution:
Total Income PP13,335
??? Total Income P 12,813
Less:ExpensesP 6,591
Less:Expenses P 6,115
Profit P 7,220 + Profit
???
P 6,222

Problem Discussion
 If you have ending total assets of P7,300, ending
total liabilities of P1,003, beginning equity of
P3,700, and incurred P2,404 expenses. How
much is your total income?

= + +
ASSET LIABILITY EQUITY INCOME EXPENSE
P7,300 P1,003 P3,700 ??? P2,404

= +
INCOME ASSET EXPENSE LIABILITY EQUITY
P5,001 P7,300 P2.404 P1,003 P3,700
Problem Discussion
 If you have ending total assets of P13,200,
ending total liabilities of P2,230, beginning
equity of P5,040, and total income of P2,350.
How much is your total expense for the period?

= + +
ASSET LIABILITY EQUITY INCOME EXPENSE
P13,200 P2,230 P5,040 P2,350 ???

=
EXPENSE ASSET LIABILITY INCOME EQUITY

P3,580 P13,200 P2,230 P2,350 P5,040

Problem Discussion
If you have a beginning equity of P8,003, a total
income for the period of P 12,040, and incurred
P6,030 expenses, how much is the ending
balance of your equity?
P 12,040-P 6,030=P 6,010
Equity, beg P 8,003
Equity, beg P8,003
Add:Income P12,040
Add:Profit P6,010
Less:Expense(P6,030)
Equity,end P14,013
???
Equity,end P???
14,013

Problem Discussion
 If you have a beginning equity of P15,825, a
total income for the period of P 7,304 and
incurred P10,008 expenses, how much is the
ending balance of your equity?
P7,304 – P10,008=(P 2,704)
Equity, beg P15,825
Equity, beg P15,825
Add:Income P 7,304
Add:Loss (P2,704)
Less:Exp (P10,008)
Equity,end P13,121
???
Equity,end P???
13,121

Problem Discussion
If you have a beginning If you have a beginning
equity of P8,526 and an equity of P5,910 and an
ending equity of ending equity of P3,222,
P10,446, how much is how much is the your
the your profit(loss)? profit(loss)?

Equity, beg P 8,526 Equity, beg P 5,910

Add:Profit P 1,920
??? Add:Loss (P???
2,688)
Equity,end P10,446 Equity,end P 3,222

Problem Discussion
 You have total assets, liabilities, and equity of
P20,000, P5,500, and P14,500, respectively, at the
beginning of the period. During the period, your total
liabilities decreased by P2,800 while your profit is
decreased to
P8,303. how much is your ending total assets?

ASSET = LIABILITIES + EQUITY

Beg, balance P 20,000 P 5,500 P 14,500
Adjustments (PP 2,800)
2,800 P 8,303
End, balance PP25,603
25,503
??? PP2,800
2,700 + P 22,803

Problem Discussion