ACCOUNTI

NGTUTORI
AL .
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. DEBITExpe
nse10000
(
PART1) CREDITCash10000
3.Bi
naya
ranmonaa
ngut
ang.
.
"
DEBI
TANDCREDI
T" Nagka
roonkangga
stos(expe
nse
),
DEBIT:Acc
ountsPayabl
e50000 ka
yaDEBI T
1.Bumil
ikangLapt
opat CREDIT:Cash50000 Nawal
ankadinngcash,kaya
nagba
yadkangP50000 CREDIT.
Nawal
anaangutang(Account
s
DEBIT:Lapt
op50000 Pa
yabl
e),ka
yaDEBI T. NOTE:(EXPENSEorGASTOS)
CREDIT:Cash50000 Nawal
ankadinngCa s
h,kaya Pa
g"nagkaka
roon"kangga
stus
in
CREDIT. =DEBIT
Nagka
roonkangLapt
op,kaya
DEBIT *Ye
hey,wa
lana
ngut
ang. :
) ~~~~~~~~~~~~~~~~~~~~~~~~~~
Nawal
ankanamanngCa s
h,kaya ~
CREDIT .
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Poi
ntofvi
ewoft
heBUSI
NESS:
NOTE:(ASSET) 4.Gi namitmoyungLaptopsa
Pag"na
gkaka
roon"kangAsse
t(or businessmongAc c
ount
ing IncreaseinAs se
t
ba
gay)=DEBI T Tutorial
.KumitakangP20,000 Nagka karoonnga sseta
ngbusine
ss
Pag"na
wawalan"kangAss
et(or per
o" paut
ang"
. kasipwe de ng
ba
gay)=CREDI T -nanggali
ngs ainutangniya(
it
o
DEBITAcc
ountsRe
cei
vabl
e angpa utangorinvestmentng
.
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. 20,
000 cre
ditors)
CREDITSer
vic
eInc
ome20,000 -nanggali
ngs aowne r(i
toang
2.Bumi
likangLa
ptoppe
rout
ang, ini
tialora ddi
ti
onalinves
tmentng
P50,
000 owne r)
Nagkar
oonkang" pa
uta
ng"
(Asset
-gali
ngs as er
bis
yo/bent
a
si
yakasimakokol
ekt
amosiya
),
DEBIT:Lapt
op50000 kayaDEBIT
CREDIT:Account
sPaya
ble50000 Nagkar
oonkadinngkit
aoincome, De crea
seinAs set
kayaCREDIT. Na wawa la
nna mannga ss
eta
ng
NagkaroonkangLapt
op,kaya businesskasipwedeng
DEBI T -nagbayads i
yangut ang
NOTE:(INCOMEorKI TA)
Nagkaroonkangut
ang(Acc
ounts -ibi
naliknayungc apitals
aowne
r
Pa
g"nagkaka
roon"kangi
ncome
Pa
ya bl
e),ka
yaCREDI T (withdrawalbytheo wne r
)
=CREDIT
-ma ymgaga stus
inoe xpe
nse
s
NOTE:(LI
ABILITYorUTANG) .
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Pa
g"nagka
kar
oon"kangut
ang= Equit
y/Capi
ta
l=I nve
stme
nt+
CREDIT Revenue-Expenses-
5.Nakole
ktamonayungpauta
ng Drawings
(Withdr
a wa
l)
Pa
g"nawawal
an"kangut
ang= mosatinurua
nmongest
udyante
DEBIT P20,
000.
Incr
easeinEqui ty
#IMPORTANT -Tuma t
aasa ngEqui t
ypa gma s
DEBITCa s
h20000 ma l
akiangki ta(
revenue)kaysasa
Bali
ktada ngASSETa t CREDI TAcco
untsRe
cei
vabl
e
LIABI LITY gast
os(expens es
).Angta wagdit
o
20000 ay"Ne tIncome ".
(ASSET)
DEBI T:pa g" nagka
kar
oon"kang -Pweder i
nt uma asangEquitypag
NagkaroonkangCas
h,kaya nadadagdaga nangc api
tal
(perao
Asset(
orba ga y) DEBI T
CREDI T:pa g"nawawal
an"kang gamit)ngbus iness.
Nawa l
ankangpaut
ang(
Ac c
ount
s
Asset(orba gay) Recevable
),ka
yaCREDIT Decr
e a
sei nEquity
(LI
ABILITY) -
Buma ba baangEquitypagma s
.
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.. mal
akia ngga s
tos(
expens
es)kaysa
CREDIT:pag"nagka
karoon"ka
nguta
ng sar
evenueorki ta
.Angt a
wa gdit
o
6.Na gba
yadkangP10,000s
a ay"NetLos s
" .
DEBIT:pag"nawawal
an"kang
inuupahanmongl
ugarparas
a -
Pwe derinbuma baangEquitypag
uta
ng
tutor
ial
.
ibi
nal
iknaangcapi
tal
(per
ao Tinawagponati
ng"Utang"or -
Buildi
ng
gamit
)samay-a
ri.(
Wi t
hdrawa
lby "Obli
gati
on"angOwner's -
Ma chi
neryandEqu i
pment
theowner
) Equit
y/Capi
ta
ldahi
langpointof -
Furnit
ure&Fixtures
viewnati
naysi"Busi
ness" -
Accumul a
tedDe pr
eci
ati
on
No
rma
lBa
lan
ces
: -
Int
angibl
eAs s
ets
Dahi lnaka yBUSI NESSa ngmga -
Other"noncur
rent"as
set
s
DEBIT( DEAL) i
ninve st/c
ontri
buti
ons/
puhunanni
D-i
vidends(Dr
awi
ngs
) Owne r,para
ngma y"Utang"si .
..
..
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..
.
E-
xpe nses BUSI NESSda hilmay"obliga
ti
on"
A-s
set si
ya ngi bal
ikangmgaya ns amay- AngASSETa ynahahat
isa
L-
osse s ar
i/owne r
. dal
awa
ngclass
ifi
cat
ions
.
1."
Curr
ent
"As s
ets
CREDI T( GI
RLS) Agai
n,ourPOINTofVI
EW ist
he 2."
Noncur
rent
"As s
ets
G-ain
s "Bus
ine
ss"(nott
heo
wnerpo
)
I-
ncome CURRENT=SHORT-TERM
R-evenues ** (
gene
ral
ly,"
1ye
aro
rle
ss"
).
L-i
abili
ti
es
S-t
ockholder
's(
orOwne
r'
s)Equi
ty Magkai
ba /
hiwalayang"Busi
ness
" NONCURRENT=LONG- TERM
at"Owner"("Enti
ty"Conce
pt) (
gene
ral
ly,"
mor
eth
an1ye
a r
")
1.Busi
ness=a sifan"Art
if
ici
al
bei
ng"(ourPOI NTOFVI EW) *Siyempre,pags inabi
ng" gene
ral
",
ACCOUNTI
NGTUTORI
AL(
Par
t 2.Owner=Huma nbeing maye xc
epti
on.Ibi gsabihi
n,
2) pwe denghindima sunodyung
~~~~~~~~~~~~~~~~~~~~~~~ gui
dena" 1YEAR"
"
ASSETS" (da
hi lmaytinat
a wa gt
a yong
#START "Nor maloperat
ingc ycle")
Thekeyis"REPETI
TION.
(ba
sahi
nlamangpongmar
ami
ng ~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~
bese
s) : )
ASSETS: Q:ANOBAANGMGA
HALIMBAWANG"
CURRENT
YouneedPat
ie
nce,Pe
rseve
ranc
e..
A.Cu rrentAs sets
: ASSETS"
?
Si
pag,Ti
yaga(a
tDasalnar
in)
-Cash
-TradingSe curi
ties(Ma rketabl
e ANS:
Tip:
"Don'
tMEMORI
ZE, Secur it
ie s)(Fa i
rva l
uet hrough
INTERNALI
ZE" ProfitorLos s )(Short-
term Curre ntAs sets:
Investme nt) -Cash
-Acc ount sRe cei
vable -TradingSe curi
ties(Ma rketabl
e
~~~~~~~~~~~~~~~~~~~~
-Allowa ncef orDoubt fulAc count
s Secur it
ie s)(Fa i
rva l
uet hrough
(Allowa ncef orBa dde bts) ProfitorLos s )(Short-
term
Topi
c:"
ASSETS"
-Note sRe ceivable Investme nt)
-Me rcha ndi s
eI nventory* -Acc ou ntsRe cei
vable
~~~~~~~~~~~~~~~~~~~~ -Acc rued" _____"I ncome -Allowa ncef orDoubt fulAc count
s
-Prepa i
dExpe nses (Allowa ncef orBa dde bts)
#REVIEW a.(Suppl i
e s/
Of fi
ceSuppl ies/St
ore -Note sRe ceivable
Asse
ts=Lia
bil
it
ie
s+Owne
r'
s Supp lies*) -Me rch andi s
eI nventory*
Equi
ty b.(Pr epa i
dRe nt,PrepaidSa lar
ies
, -Acc rue d" _____"I ncome
etc.
)-a ngke ywor day -Prepa i
dExpe nses
CHARACTERS" "PREPAI D" a.(Suppl i
e s/
Of fi
ceSuppl ies/St
ore
a.BUSINESS=" I
kaw" -Adva nc es" TO"Empl oye s
s Suppl ies*)
b.ASSET=Pa g-
aari"ngbusiness" (Adva nc est oSuppl ier
s*) b.(Pr epa i
dRe nt,PrepaidSa lar
ies
,
c.LI
ABI LI
TY=Ut ang" ng -Othe r"c urrent"assets etc.
)-a ngke ywor day
busi
nes
s"saiba(
Ex. Bank) "PREPAI D"
d.OWNER' SEQUITY=" Ut
a ng" B.Nonc
urr
entAs
set
s -Adva nc es" TO"Empl oye s
s
"ngbus
ines
s"samay-ari(owne r
) -
Land (Adva nc est oSuppl ier
s*)
-
Othe
r"c
urr
ent
"as
set
s*** r
ece
ive
"ka
ngba
yadope
ra. SiBusiness
(IKAW)a yma yP100
ngayon
** ** AngP100a yI NINVEST.
Pagsinabi
ngi ni
nvest
,pa r
ang
1."
CASH" 3."
ALLOWANCEFOR "PAUTANG"di nyan.Ipapa
hawak
DOUBFULACCOUNTS" momunas aibayungpe ramopara
A=L+OE kumitaorma dagdagan(Takenot
e:
100=60+40 Ma yexpe rie
ncekada
tinal
agi
ng pweder i
nnama ba
wa sa
n)
"kal
a h
a t
i"langkungmagba
yad
SiBus i
ness(
Ikaw)aymaype
rang it
ongka ibiganmo(Mabai
tkal
ang Pwedekama g-invest
(or
P100nga yon. tal
agaka yalagimosi
yang magpautang)sada l
a wangit
o.
(P60,uta
ngs abank) pinapaut
a ng). ~DEBTSe curi
ties(dit
o,pwede
(P40,uta
ngs aowner) madagdagana ngpe ramong
TAKENOTE:Hi ndipas
iya ti
nat
awa gna" INTEREST" )
Anoa ngtawagsaP100? nagba
baya
dsai
nutangni
yang ~EQUI TYSe cur i
ti
es(dit
o,pwede
Yanpoa yCASH. P100. madagdagana ngpe ramong
CASH=P100 ti
nat
awa gna" DI VIDEND"a nd
*"CURRENTa s
set
"siya
,ka
si Peroia
a nt
icipatemonayunghi ndi "PRI
CEAPPRECI ATI ON)
pwedemoga stusi
n"anyt
ime"(
1 ni
yama ba
b ayaran.Angtawagdi to
yearorle
ss) ay"Allowa nceforDoubtful Example
:
Accounts".Iaanti
cipat
eorire
- Nag-i
nves
tkangP100.So
** re
cordmona ng" Al l
owancefor nawal
ankangP100.
Doubtf
ulAc counts"yungkal
a hat
i
2."
ACCOUNTSRECEI
VABLE" naP50( P100/2=P50) Aft
erngil
angbuwan,bi
nawimo
nayungper
aatnagi
ngP120.
ASSUME:Ang"l
ineofbus
ine
s" SimpleMat
hl a
nga ngaccount
ing
moay"pa
gpa
paut
ang" diba?padi
vide-
divideka Pakicompute.Magka
nopoa
ng
sobr
a?
la
ng. : )
P120-P100=P20
Ng a
yon,siBusines
saynila
pit
an
ngisangkaibi
gan.Angsabini
ya SUMMARY:
sayoay.."
Business
,pwedeng Angtawagpos asobrangP20a y
Paut
ang(Account
sReceivabl
e-AR)
"PAUTANG" ? INTEREST(pagde btsecur
it
y),or
P100
DIVIDEND/ PRICE
Anti
cipa
tednadibaba
ya r
an
APPRECI ATION(pa gequi
ty
Dahi
lmayP100Cashka,a
ngsabi (All
owanceforDoubt
fulAc c
ount
s
sec
urit
y)
moay"Sige
,pauut
angi
nkit
a. -ADA)P50
*SimpleI
ll
ustr
ati
onl angpo
Atyuna ngnangyar
i.I
nabotmo P100(
AR) -
P50 (
ADA) it
o : )
angP100s akanyaatwal
angna
tir
a =P50( i
tonalanga ngs
ati
ngin (Wagmunas akomp li
kado)
saiyo. mongma kokolektamosaf
utur
e).
InAccount
ing,"NRVorNe t Kail
ans iyanagingTRADI NG
Ta
nong:Magka
nonaanga
sse
tmo? Real
iz
a bl
eVa l
ue "angt
awagdit
o. SECURI TIES?
Ze
rooP100parin? Yuna ynungt imenana g-
investka
.
AngACCOUNTSRECEI VABLE Nag-investkaatna wal
a nkang
(orPa ut
ang)aypwe deri
ng pera
.Pe ronagkaroonkana ma nng
Sa
got
:P100par
in.
ma nggali
ngsa"servic
esrender
ed"
, "s
hort-t
e r
mi nvestment
"( para
ng
nahi ndimopana kokole
ktayung paut
angdi n)naa ngtawa gay
Oo ,nawalayungP100ka ya TRADI NGSECURI TIES.
parangwa l
anga s
set
.Pero bayadngc li
entorc us
tomermo.
nagkaroonkana manng
** **
"PAUTANG" .Angpauta
nga y
hindinahahawakanperoass
etmo
par i
nsiya. 5." TRADINGSECURI TIES" 6."
MERCHANDISE
(Ma rket
abl
eSecuri
ti
es)(
Fa i
rval
ue INVENTORY"
AngtawagsaPAUTANGnaya
n throughProf
itorLoss
)(Short
-t
erm
ay"ACCOUNTSRECEIVABLE". Inve s
tment
) SiBusi
nes
s(I
KAW),a
yma yP100.
Rec
e i
vabl
ekasima
y"ma
re- Pina
mbil
imong"
DAMI T
(
a s
suminga ngbusine
ssmoay 8."
ADVANCESTO Q:ANOBAANGEXAMPLES
"BUY&SELL"or EMPLOYEES" NGNONCURRENTASSETS
"Merchandi
s i
ng")par
aibe
ntas
a
masma halnah a
laga. P100
,pinautangsaempleyado. ANS:
Angpamba yadayibaba
wa sna
BUY:Da mi
tP100 l
amangsaka nyangsweldo. PROPERTY,PLANTAND
SELL:P120 Angtawag:ADVANCESTO EQUI PMENTorPPE( orFIXED
EMPLOYEES ASSET)
P120
-P100=P20. -Land
Kumit
akangP20. ** -Building
-Ma chineryandEqu i
pme nt
An oangta
wagduns
aDAMITna 9."
NOTESRECEI
VABLE" -Furnitur
e&Fi xtures
bini
bent
amo? -Ac c
umul ate
d
*Answer:MERCHANDI
SE P100,pinaut
angperoma y De precia
ti
on(Buildi
ng)
INVENTORY kasul
ata
n( PROMI SSORYNOTE) -Ac c
umul ate
d
-a
tkumi kit
ang"INTEREST. De precia
ti
on(Mac hi
nery&
** Angtawa g:Note
sRe ce
ivabl
e Equipme nt
-Ac c
umul ate
d
7."
PREPAI
DEXPENSE" ** De precia
ti
on(Fur
ni t
ure&Fi xt
ure
s)

SiBusi
ne s
s(I
KAW) ,aymayP100. 10."
ACCRUEDI
NCOME" (
Takenot
e:wala
ngAcc
umul
at
ed
Pumuntakasa7e
levenat Depr
eci
at
ion-
Land)
pi
nambilimongLOAD. Nagpapaupaka
(ikawangmay-
ari)
GlobeorSMART?( i
kawnapo ngisa
ngr oomforrent
. OTHERS:
Angpa upamoa yP100pe
rmonth. -
Int
angi
bleAss
ets
mamili : ))
-
Other"
noncur
rent
"as
set
s
Nu ngmgaorasnainabotmoyung Walangkapangnat
ata
nggapna
per
akahitmagka
no(Advanc
eman **
bayadsacas
hier,na
wa l
a nkang
P100Ca s
h.Peronagkaroonnaman orDeposi
t)
ngP100loadangc el
ll
phonemo. AngNonc
urr
entAs
seta
yLong-
Lumipasa ngis
angbuwa n.May t
erm.
Anoyungta
wa gsaP100loa
d. kini
takana ngP100parasaisa
ng
*Ans
we r
:Pre
paidExpens
e buwangupa . **NONCURRENT=LONG-
Perohindimopana t
ata
ngga p TERM (ge
ner
all
y,"
mor
etha
n1
yungpe r
a. year
")
PREPAIDEXPENSE:
~PAIDbutnotye
tincur
red. Kumi t
akana ,Per
ohindipa
"Baya
dna"pero"dipanaga
gami
t" nata
tanggapyungpera. Kayasi
ya"Long-t
erm"kasi
-
ma t
aga
langbuhayniyaand/
or
Angtawag:ACCRUEDI NCOME -
ma t
aga
lmos i
yap wedeng
Paanokungnagte
xta koa
t
(Ear
nedbutnotyetr
ece
ived) magami
torma pa
kinaba
ngan
nabawas
anngPi s
o?
~AngPREPAI DEXPENSEmoa
y Kumitana,hi
ndipanat
ata
nggap
P99nalang(P100-P1) yungpera **

I
nshor
t,a
ngPREPAIDEXPENSE *I
topoayi
san
guridinng 1."LAND"
a
ngyungamountngl
oadna RECEIVABLE(Par
ang It
oa ng"FAVORI
TEa s
set
"koka
si
"
HINDIMOPANAGAGAMI T"
. ACCOUNTSRECEI VABLE) anggandangmea
ningni
ya.
da
hilmay"
mare-
rec
eive"ka
ng
~Ganundinpagbumi l
ikang pe
ra. L-
A-N-
D
ball
pen,pe
nci
l,oryungmga
nabibi
li
ng"SUPPLIES"sa ~~~~~~~~~~~~~~~~~~~~~~~~ L-
ove(ofGOD)
NATI ONALBOOKSTORE, A-
lways"Appr
eci
at
e"And
"Prepa
idExpense
"dinangta
wag #NEXTTOPI
C N-
ever
dun. D-
eprec
iat
e : )
Angne
xtt
opi
cay
** NONCURRENTASSETS. You:Ya
nbat
al
agaa
ngme
ani
ng
ngLa
nd? ANS: Endof
2.Bui
ldi
ng(al
amni yonai t
o) YEAR1Ac cumul
at
ed
Me:SaACCOUNTI NG,s i
yempre 3.Machi
neryandEqui pme nt(Ex. De pr
eciat
ion=10
hi
ndi. :) Compute
r,Air
c on,etc) (P100-90)
Pi
napaa
lal
ala
ngnaminsayona 4.Fur
nit
ure&Fi xtures(Ex.Table
,
wagmongkali
muta
ns iGod.Alam Chai
r,Wallde
c orat
ions,etc) YEAR2Ac cumulat
ed
mobanaalamNiyaanglahatng Depr
e c
iat
ion=2 0
sa
kri
pis
yomo? Anonamanang (
100-80)or(10+10)
"ACCUMULATED
Nani
niwa l
aka minalahatng DEPRECIATION" ? YEAR3Ac cumulated
magagandaatdima gaga
ndang Exampl
enalangnatinyung Depr
e c
iat
ion=3 0
na
ngyaya r
isabuha ymoa y BUILDINGngs choolniyo. (
100-70)or(10+10+10)
na
kadis
e nyo.Disenyonakail
anga
n Kunwar
i,10year
sa ngbuhayni
ya.
mongpa gdaananpara YEAR4Ac cumulated
BUILDING: Depr
e c
iat
ion=4 0
"
makumpl
et
o"ka
. Cos
t:P100 (
100-60)or(10+10+10+10)
Li
fe:10ye
ars
Exampl e: YEAR5Ac cumulat
ed
Alammoyung" PUZZLE"diba ? P100/10year
s=P10* Depr
eci
at
ion=5 0
Nilal
arokoitonungbataako. (Depr
eci
at
ionorpa
gli
itngva
lue
) YEAR6Ac cumulat
ed
Pinagdidi
kit
-di
kitkoyungmga Depr
eci
at
ion=6 0
pira
sopa r
ama buoangma ganda
ng Endof: YEAR7Ac cumulat
ed
la
rawa n. Year1100-10*=90(r
emai
nin
g Depr
eci
at
ion=7 0
val
ue) YEAR8Ac cumulat
ed
Ganundins iGods a
yo.Angmga Year290-10*=80 Depr
eci
at
ion=8 0
pi
rasoayyungma gagandaatdi Year380-10*=70 YEAR9Ac cumulat
ed
magagandangn a
ngya yar
isabuhay Year470-10*=60 Depr
eci
at
ion=9 0
mo.Naka il
a n
ganmongma r
ana
san, Year560-10*=50 YEAR10Ac cumulat
ed
par
as aduloayma ging Year650-10*=40 Depr
eci
at
ion=1 00
"magandanglara
wa n"ka .Magi
ng Year740-10*=30
Year830-10*=20 ~~~~~~~~~~~~~~~~~~~~~~
SUCCESSFULka . : ) Year920-10*=10
Year1010-10*=0(r
emai
ning "
INTANGI
BLEASSETS"
Appr
eci
ate
(Ap
prec
iat
ion)me
ans val
ue)
"i
ncr
eas
einva
lue
".
Exampl es:
Ihope
,na
sunda
nni
yo. 1.Patent(inventi
ons)
Exampl e
:
2.Copyright(Books,musi
c al
BumilikangLa nd(
Lupain)s
a Kungnapansi
nmo,na ubosor compos it
ion)
pr
obinsyaniyoforP100. nagi
ngzer
oa ngvaluesaYear10. 3.Tra
de ma rk(
Logo,Brandname)
Afte
r10ye ars
,angvalueay Kayaangt
a wagnas aBUILDING 4.Franchise(Joll
ibe
e,Mc do,
nagi
ngP500. ay"FULLYDEPRECI ATED".Or Star
buc ks,7eleve
n,etc
)
Tumaa syungvalue
. si
mply,walanangvalue. 5.Others
FromP100,na gi
ngP500.Tumaa
s,
nag-
APPRECI ATE.
Quest
ion:
Nasa
anyung" Ac
cumul
at
ed
Kayaa
n gLANDayis
angkl
aseng Depr
ec i
at
ion"
.
PPEnag-a
APPRECI
ATE. ACCOUNTI
NGTUTORI
AL
(
PART3)
Answer
:
** I
toyungnaiponor"
na-
aa
cumulat
e"napagbabangva
lue "
LIABI
LITI
ES"AND
Q:ANOnamanyungmgaPPEna "
OWNER'SEQUITY"
na
gde-
DEPRECIATE? *Hindina mi
nipapal
iwanga
ng
susunod(kas
ianggust
onamina
y Si
mul
anna
ti
nsa"
OWNER'
S
(
DEPRECIATE=mea
nslumi
li
it kayoa ngma g-
ANALYZE) EQUI
TY"
a
ngval
uehaba
ngt
umata
gal
)
-INI TI
ALI NVESTMENTby ** "
Kit
a"ngbus
ine
ssmo
theowne r
-ADDI TI
ONAL Kunghahat
ii
noribi
-bre
ak 4."
EXPENSES"
INVESTMENTbyt heowner downnati
nyungnati
rasa
-REVENUE/I NCOMEoft he ownernaP40,i
topoayang "
Gas
tus
in"ngbus
ine
ssmo
busines
s mgasumusunod(1t
o5):
-EXPENSESoft hebusi
nes
s Sa3&4,a ngdapa
tnagoa
lay
-DRAWI NGS/ (PEROthi
sti
me,l
etusc
hange ma smal
aki
ngREVENUE
WI THDRAWALbyt heowner ourPOI
NTOFVI EW) kaysaEXPENSE.

I
sa-
is
ahi
nna
ti
nya
nma
maya
. (
Isi
pinmonama
nnga
yonn
a Exampl
e:
I
KAW a ng"
OWNER") a)Reve
nue-Expe
nse=Ne
t
INCOME
(
Gagawinl
angnat
in'
topar
a 20-15=5
~~~~~~~~~~~~~~~~~~~~ masmadal
imongmaunawaan)
b)Reve
nue-Expe
nse=(
Net
"BASI
C"ACCOUNTI
NG Kungikaws iOWNER, LOSS)
EQUATION ta
nungi
nmol angangsari
limo: 15-20=-(5)
"Kungihi
hintokonaa ng
A=L+OE Busi
nessko,anoka yaang (
betweent
het
wo,
bet
te
rang
Asse
ts=Li
abi
li
ti
es+Owne
r'
s mababawikoga l
ingsabusine
ss NetINCOME)
Equi
ty ko?
Si
mpl
eMATHl
anga
ng
P100=P60+P40 1."
INITIALINVESTMENT"
bytheowne
r. Ac
count
ingdiba
?
**
Na ngma gtayokangne gosyo, *
"
Iba
hin"na
ti
nangEQUATI
ON yana ngka una-
unahangbinigay
mongp uhunan.Pwedengpe ra
,
5."
DRAWINGS/
A-L=OE pwe dengga mit
,etc.
WITHDRAWAL"oft
heowne
r
Investmentsorcontr
ibuti
onsmo
it
o" beforeopera
ti
ons"
Asse
ts-Li
abi
li
ti
es=Owne
r'
s Par
angsaATM ca
rd.Pa
g
Equi
ty na
gwithdr
awka
,ma yki
nuhaka
2."
ADDITIONAL
INVESTMENT"byt
heowne
r.
P100-P60=P40 DRAWI NGSorTempora
ry
wit
hdr
awal-i
toangt
awagpag
Dagdag-
puhuna
n.Bini
gaymo
Na
sunda
nba
? angki
nuhamoayyungKITA
i
to"duri
ngoper
ati
ons"
.
ngbus
ines
smo(NetINCOME)
**
Ma aa
ringsaunangtaonay
PERMANENT
sobra
ngda miagadng
Angi
bigs
abi
hinni
toa
y: WI THDRAWAL-i t
oang
cust
ome rsmokayana man
t
a wagpa
gangki
nuhamoa y
nagdagdagkangpuhunan.
SaASSETSnaP100, angINVESTMENTmo( yung1
Yungda gdag-
puhunannayan
&2)
ayginawamo" duri
ng
"pr
ior
it
y"namabaya
ranmuna
opera
tions"ngbusi
nessmo.
angLIABILI
TIESsaCre
dit
ors ~~~~~~~~~~~~~~~~~~~~
naP60.
*
EXAMPLE:
Kayaa
ngma
tit
ir
anala
ngp
ara
3."
REVENUE"or"
INCOME
saOWNERayP40. I
nit
ia
linves
tme
ntP50
Addi
ti
onali
nve
stmentP30
Revenue20 Mi
nus
(-)l
angpa
laa
ng orCASH.Atyungcas
hnayun
Expenses15 angiba
baya
dsaLIABILI
TIES
Drawings45 Acc
ount
ing atsaOWNER.
BASIC!
!!Kaya
ng-
kayamo!
* Cos
tngDa
mit
:P100
**
Q:Howmuc
hangNET A.Nabe
ntaf
orP100CASH.
I
NCOME Ife
ve rmag-deci
deangowne
r I
baba
yadsaLia
bil
it
ies=P60
naihint
onaa ngbusi
ness I
baba
yadsaOwner:P40*
A:Reve
nue-Expe
nse
s=Ne
t ngayon,P40*nalangang
Inc
ome mabab a
winiya. B.Nabe
ntaf
orP110CASH
20-15=5 I
baba
yadsaLia
bil
it
ie
s=60
*Peropwedepangma ba
goa ng I
baba
yadsaOwner=50*
Ans
weri
s5 amountnayanpag,"na-
conver
t
int
oc a
sh"angmgaASSETS C.Nabe
ntaf
orP80CASH
* bagoibal
iksaowner
. I
baba
yadsaLia
bil
it
ie
s=60
I
baba
yadsaOwner=20*
Q:Howmucha
ngOWNER'
S Yana ydahi
lsatina
tawagna
EQUITY? FAIRVALUEa ndNET *Pri
ori
tymunangmabaya
ran
REALI ZABLEVALUEng angLIABILI
TIES,bagoang
A:Be ginningCapi
tal
(Ini
ti
al ass
ets(i
ns i
mplewords, Owner.
invest
me nt)+Addit
ional "Today'
svalue
").
invest
me nt+Ne ti
ncome- ~~~~~~~~~~~~~~~~~~~~
Dr a
wings=Endi ngCa pi
ta
l HALI
MBAWA:
(Own er
'sequit
y) NOTETHESEFORMULAS:
50+30+5-45=P40 *Le
t'
sgobacktot
hePOINT
OFVIEW ofthe"
BUSINESS" 1.Revenuea
ndIncome-
Ans
weri
sP40. Expens
e s=NetI
ncomeor(
Net
A=L+OE Loss
)
*YUNGP40,yannalangang
por
ti
onnga
ssetnapwedeng Pa
nindangda
mit=Li
abi
li
ti
es+ 2.Beginni
ngCapit
al+
MABAWIngowne r. Owner'
sequi
ty Addit
ionalI
nvest
me nt-
PermanentWit
hdrawa l+Net
** 100=60+40. Inc
ome-Dr awings=Endi ng
Capit
al
Supposedly,a
ng"mababawi" Yunghal
agangpa
ninda
ng
niyadapatayyungI
NI TI
AL da
mitayP100. 3.Beginni
ngCa pit
al+
ANDADDI TIONAL Addit
ionalInve s
tment-
INVESTMENTni ya(50+30)at Q:Pwedebangipa
mbaya
dyung Per
ma nentWi thdra
wa l-Net
yungNETI NCOMEng DAMIT(P100).
.sa Loss-Dr a
wi ngs=Endi ng
busine
ss(5). LI
ABILITIES(P60)a
tsa Capit
al
OWNER( P40)?
50+30+5=85. 4.Beginni
ngCa pit
al+
Pwe
depo.
."Gugupi
ti
nna Addit
ionalI
nve s
tment-
Kay
alang,may"actual
" Per
ma nentWithdra
wa l+
DRAWI NGSs i
yangP45. RevenueandIncome-
l
ang.
."WOW ma
gic
..
.. Expenses-Drawings=Endi
ng
Kay
aangna t
ir
anala ngi
s40
(
85-
45)
. Capi
tal
Siye
mpr e,ala
mkohi ndiyan
*GRABEna'
t
o..Pl
us(
+) angisa
s agotmo. *Ca
pit
al=Owne
r'
sEqui
ty
Angga gawinmoa y,ibe
bent
a
yungda mitparamagi
ngPERA
~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~ EXPENSE:Ga
stus
in
~~~
#Ne
xtTOPI
C ACCRUEDEXPENSE=
REVENUEorI
ncome"
vs" "Hi
ndipaba
yad"na"
Gas
tus
in"
EXPENSE LI
ABI
LITI
ES
EXAMPLE:
A.INCOME=Ea
rni
ngsor ** -MERALCOBi l
l
Kit
a' (Hindikapabayad.
..s
a
Cl
ass
ifi
cat
ionofLI
ABI
LITI
ES gastus
in(e
lect
ri
ci
ty)nanaga
mit
STORY1: orna -
consumengbusine
ssmo)
AngBus i
nessay"Sal
on"
.Ma
y ~Curr
entLia
bil
iti
es
is
angempleyadonaang baba
yaranwit
hin1yea
r(1ye
ar **
panga
lanay" Al
ma "
. oles
s)
D.Unea
rned"_____"I
ncome
Nangma g-openangSal
on,may ~Noncurr
entLiabi
li
ti
es (
Advance
sfro
mCus t
omers
)
pumasoknai s
angcust
omerat babaya
ranbeyond1year(
mor
e
nagpa
-hair
cut. than1year
) UNEARNEDI NCOME
~na
kat
angga
pngCASH(Pe
ra)
Pagt
aposayna
kakol
ektaang ---------------------- ~pe
rohi
ndpaINCOME(Ki
ta'
)
"Bus
iness
"ngP100dahils
a ----
HAIRCUT. STORY( new)
#Cur
rent
Lia
bil
it
ie
s Pumasoksicust
ome
rs aSa
lon
QUESTION: mopa r
a" MAGBAYAD"ng
Anoangta
wags
aP100? A.Ac c
ount
sPayable P100.
ACCOUNTS=Ut a
ng (Per
o"BUKAS"pas iya
ANSWER: PAYABLE=Ba bayara
npa magpapagupi
t)
*I
NCOME=P100( I
NCOME= (hi
ndipaba
yad)
Ear
ningsorKi
ta
') BUSI NESS(Ikaw)
ACCOUNTSPAYABLE= ~nakata
nggapngCASH( Per
a)
B.EXPENSE=Cos
torGa
stos "Ut
ang"na"
hindipaba
yad" ~perohindpaINCOMEka si
"BUKAS"pama gpapa
gupi
t.
STORY2: Uta
ngngbus
ine
sssamga
Dahi
lnagtat
rabahos i"Alma"sa t
ina
tawa
gna"Trade
"cr
edi
tor
s. TANDAAN:
Busi
ness
,kail
a ngans i
yang Maypagkaka
ibaang
swel
duhan.Ang" binayad"kay ** UNEARNED
AlmaayP70. INCOME(Generalt
erm)at
B.NotesPa
yabl
e(SHORT- t
erm) ADVANCESFROM
QUESTION: NOTES=Ut ang"nama y CUSTOMERS( spec
ifi
cfor
Anoangta
wags
aP70? kasul
at
an"(
Promis
s or
yNote
) cus
tomer
s)
PAYABLE=Ba bayara
npa
ANSWER: (hi
ndipaba
yad) ~~~~~~~~~~~~~~~~~~~~
*EXPENSE=P70(EXPENSE
=CostorGa
stos
) TANDAAN: #Nonc
urr
ent
Lia
bil
it
ie
s
InpayingNOTESPAYABLE,
#SUMMARY ma y"dagda
g-ba
yad"na E.Not
esPa
yabl
e(LONG-
ter
m)
INCOME:P100 "INTEREST"( I
nte
res
tExpe
nse
)
(EXPENSE)
:P70 Pa
rehos
a(B.
),pe
ro
** BABAYARANNG" HI
GIT"
=NETI
NCOME:P30 SAISANGTAON.
C.Ac
crue
d"_______"Expe
nse
~~~~~~~~~~~~~~~~~~~~~~~~ ACCRUED:HindipaBayad **
F.BondsPa yabl
e( LONG- t
erm) 2.PARTNERSHI Pisan (
Buy=>"
Produc
e"=>Se
ll
)
Pangma t
agala
ngk ontr
atang associ
a t
ionof"TWOor
pagkakaut
ang.Mgal ima MORE"pe r
sonswhobi nd ~~~~~~~~~~~~~~~~~~~~~~~~
hanggangsampungt aonbago themse l
vestocontri
butemoney, ~~
bayaran. propertyorindust
ry(s
ervi
ces
)to
** ac ommonf und,wi t
hthe "ELEMENTS"ofFS(
Fina
nci
al
inten
tionofd i
vidi
ngtheprofi
ts Sta
teme
nts
)
G.Mor t
gagePayable amongt hems el
ves.
MORTGAGE:Ut a ngnamay 7.I NCOME/ REVENUEi sthe
SANLA 3.CORPORATI ONisa n gros sINFLOW ofe conomic
PAYABLE:Ba ba
ya r
anpa arti
ficalbeing(
notnatural
,like be nefi
tsduri
ngt heperiodint he
(hi
ndipabayad) huma nbe i
ng)cre
ate
dby formofI NFLOWSor
ope r
a t
ionofLAW,ha vingthe enha ncementsona sset
sor
STORY: rightso fSUCCESSI ON,a nd de crea
seinliabil
it
iesthatresult
Bumi l
ikangLANDpe rodipa thePOWERSAND ini ncr
easeine qui
ty,othert
ha n
baya
d( Uta
ng-
Mortgage ATTRI BUTESe xpr
es s
ly thos erel
at
ingtoc ontri
buti
ons
Payabl
e) authorizedbyl a
wori ncidentt
o fromt heowne rorowne r
s.
*per
oyungLa nday itsexistence.
naka
SANLA( Col
la
tera
l) 8.EXPENSEi sdefi
ne da st
he
4.COOPERATI VEi salegal grossOUTFLOW ofe c onomic
Anongmea
ningng enti
tyowne dand benefit
sduringthepe r
iodi nthe
na
kaSANLA(Coll
at
era
l)? democ r
aticall
yc ontr
olledbyit
s courseofordinaryacti
vi t
ies
me mbers.Me mbe rsoftenhave whe ntheseOUTFLOWSr e
sult
A:Pa ghindinakabayads a acloseass oci
ati
onwi ththe inDECREASEi nequityother
utangnaMor t
gagePayable, enter
pri
s ea spr
oduc ersor thanthoserelat
ingto
yungLAND( Collat
era
l)a y consume rsofitsproductsor dist
ribut
iontoowne rs.
ibebent
a.Yungpe ragalingsa ser
vices,ora sit
se mployees
. ~Insimpleterms ,t
hesea re
bentaayga gamit
inpara COSTSi ncurre
dt oproduc e
ma baya
rannayungUt angna ~~~~~~~~~~~~~~~~~~~~~~~~ income /
revenue.
Mor t
gagePa yable
. ~~
9.ASSETSa rede finedas
*Kunghali
mba wa ngnag- "
TYPES"OFBUSI
NESS RESOURCESc ontroll
edbyt he
LOANna mans aba ngko, ent e
rpris
ea sar esultofpas t
pwederi
ngga wingCol l
ate
ral 4.SERVI CEBUSINESS.Thi
s transacti
onsa nde ventsand
angothe
rrealpropert
iesng busines
srende
rsse
rvi
cest
o fromwhi chfuturee conomi c
busi
ness
. cust
o mersorc
li
ent
sforaf
ee. be nefi
tsareexpe ctedtoflowt o
(Sal
eofSERVI CES) thee nter
prise
.
~Ins impleterms ,theseare
5. PROPERTI ESowne dbyt he
ACCOUNTI
NGTUTORI
AL MERCHANDI SING/TRADIN bus i
ness.
(
Par
t4) GBUSI NESS.Thisbusi
nes
s
buygoodsorcommodit
iesa
nd 10.LI ABI LITIESa r
ede fi
ned
"
BASI
CACCOUNTI
NG" sel
lthe
ma taprof
it
. aspr ese
ntOBLI GATI ONSof
(Sal
eofGOODS)( Buy=>Sel
l) ane nter
prisearisingfrompa st
"FORMS"OFBUSI
NESS tr
ans act
ionsore ve nts
,the
ORGANIZATI
ON 6.MANUFACTURI NG set
tleme ntofwhi c hisexpecte
d
BUSI NESS.Thisbusine
ss toresultinanout flowf romthe
1.SINGLE/SOLE makes" f
inis
hedgoods"from ent
e rpri
seofr esou rc
es
PROPRI ETORSHIPisa "ra
wma t
e r
ial
s"orunass
embled embodyi nge conomi cbe nefi
ts
.
busi
nessownedbyonl
yONE part
s.It"pr
oduces"t
hegoods ~Ins impleterms ,thesea r
ethe
INDIVIDUAL. tha
titsel
ls. fi
nanc ia
lobligationsorDEBTS
(Sal
eofGOODS) ofthebus iness.
Itisa l
so
desc
ribedasCLAI
M oft
he 4.ALLOWANCEFOR Cur
renta
sse
t.
CREDI TORSontheAss
etsof DOUBTFULACCOUNT
theente
rpr
ise
. rel
at
e stothec
ompany'
s 10.OFFICE/STORE
rec
eivable
swhichmightnotbe SUPPLIESa rebei
ngusedby
11.OWNER' S col
lecte
d. thebus
ines
slikepaper
s,pe
ns,
EQUITY/ CAPITALr e
present
s penci
ls
,fol
ders,s
tapl
ers
,et
c.
theCLAIMo ftheOWNERon Cur
renta
sse
t.(
Cont
ra-
Ass
et)
theAsse
tsofthebusi
ness.I
tis Cur
renta
sse
t.
theRESIDUALI NTERESTi n #NOTE:"CONTRA- ASSET"
theAsse
tsofthebusi
nessaft
er acc
ounti
stheoppos
it
eof 11.LANDi sanassett
hatisnot
deduc
ti
nga l
litsl
ia
bil
it
ies. "ADJUNCT"a cc
ount subj
ectt
ode pr
eci
at
ion.It
appr
ecia
tes(va
luei
nc r
ease
s)as
~~~~~~~~~~~~~~~~~~~~~~~~ Inl
ayman'
ste
rm, ti
megoe sby.
~~~ CONTRA=de duc
ted
ADJUNCT=a dde
d(Exa
mpl
e: Nonc
urr
enta
sse
t.
Import
ant
:CAPI TAL Fre
igh
tIn)
ACOUNT( orEQUI TY 12.BUI LDINGc anbeacquire
d
ACCOUNT)c onsi
stsoft
he 5.NOTESRECEI VABLEare byPURCHASEorbyme ansof
fol
lowi
ng: cl
aimss
uppor
tedbypr
omis
sory CONSTRUCTI ON.
a."Owner
'sCapita
l" not
e. Constructi
oncostsma yi
nclude
b."Owner
'sDrawing" materi
a l
s,la
bor,overhea
d,
Currenta
sset
,ifs
hor
t-
ter
m. permitorlice
nse,Archit
ectfee
,
~~~~~~~~~~~~~~~~~~~~~~~~ (AlsoaCurre
ntAsse
tift
he Excava t
ioncost
,etc.
~~ problemisSI
LENT)
Nonc
urr
enta
sse
t.
EXAMPLESof"
ASSET" Nonc
urr
enta
sse
t,i
flong-
ter
m.
Acc
ount
s 13.MACHI NERY&
6.MERCHANDISE EQUI PMENTi ncl
udes
1.CASHi sanyme diumof INVENTORYaregoodson computer
s,ai
r-
condit
ioni
ng
exchangethatabankwi ll handa
ndar
eava
ila
blefors
ale
. unit
s,el
ect
ri
cfans,f
reezer
s,
acc
e ptatfac
eva l
ue.Itinc
ludes ref
ri
gerat
ors
,tr
uck,et
c .
coi
nsa ndcurre
nc i
es,checks
, Cur
renta
sse
t.
mone yordersandbankdr a
fts
. Nonc
urr
enta
sse
t.
7.ACCRUEDI NCOME.
Cur
renta
sse
t. Earnedbutnotyet 14.FURNI TUREAND
rec
e i
ved/
coll
ect
ed. FIXTURESi ncludesta
bles
,
2.TRADI NGSECURI TI ESa r
e chai
rs,f
il
ingcabine
ts,et
c.
debtandequi
tysec
uri
ti
e sthat Cur
renta
sse
t.
arepurc
hasedwit
htheintentof Nonc
urr
enta
sse
t.
sel
li
ngthemi nt
he"nea
rt erm" 8.ADVANCESTO
orverysoon. EMPLOYEES.Ca s
hrece
ived 15.ACCUMULATED
byempl
oye
estobededuct
ed DEPRECI ATION."Tot
al
"
Cur
renta
sse
t. fr
omthe
irs
ala
rie
sinthef
u t
ure
. depr
eci
ate
dc ostofa
depr
eci
ableass
e t
.
3.ACCOUNTS Cur
rentAs
set
.
RECEI VABLESa reclai
ms Nonc
urr
enta
sse
t.(
Cont
ra-
ass
et)
agai
nstdebt
orsorcust
ome r
s 9.PREPAI DEXPENSESa r
e
ari
si
ngf r
oms er
vic
esrender
ed expense
sPAI DINADVANCE 16.INTANGI BLEASSETi san
onaccountandsal
eof bythebusine
ss("
Pai
dbutnot identi
fi
ablenon-monet
arya s
set
merchandi
seonaccount
. yeti
n c
urre
d"). "withoutphysi
calsubs
tance"or
havenophys ic
alappear
a nc
ebut
Cur
renta
sse
t.
a
reexpec t
edtoprovi
defut
ure 6.NOTESPAYABLE( long- 10.
e
conomi cbenef
it
stothe ter
m)a reamountsduet
o DRAWI NGS/ TEMPORARY
c
ompa ny. cre
ditor
s" be
yond"oneyear
, WI THDRAWALS.Cha r
gedto
evide
n c
e dbyWRI TTEN thisac
c ountarecashorother
Nonc
urr
enta
sse
t. PROMI SEtopay. asset
swi thdrawnbyt heowner
fromthebus i
nessf
orpe r
sona
l
~~~~~~~~~~~~~~~~~~~~~~~~ (
Nonc
urr
entLi
ab) use(representedbytheowner'
s
~~~~ sharei
npr ofi
t)
7.BONDSPAYABLEi sa
"
LIABI
LITI
ES" lia
bil
ityowe dbyac ompa nyto 11.INCOMESUMMARY.I tis
obtai
ns ubstant
ials
umsof at e
mpor aryaccountus eda tt
he
1.ACCOUNTSPAYABLEa r
e mone yfroml ender
stofinanc
e endoft hea cc
ountingpe ri
odt o
amount
sduet
ocr
edi
tor
sfor theacquisit
ionofequipment closeincomea nde xpe nse
s .
ASSETSACQUIREDon andothe rneededasse
ts. Thisa ccountshowst hepr ofi
tor
acc
ount
. lossforthepe r
iodbe fore
(
Nonc
urr
entLi
ab) closi
ngt othec api
talac c
ou nt
.
(
Cur
rentLi
ab)
8.MORTGAGEPAYABLE. ~~~~~~~~~~~~~~~~~~~~~~~~
2.NOTESPAYABLE( shor
t- Long-ter
mde btofthebus iness ~~
ter
m)a r
eamountsduet
o forwhichthebus inesse ntity
cre
ditor
s"wi
thi
n"oneyear, hasPLEDGEDc ert
a inas s
e t
sas Tr
ueorFa
lse
evide
ncedbyWRI TTEN SECURI TYt othec reditor.In
PROMI SEtopay. theeventthatthede btpa yme nt
s 12.Theexc
essofI
NCOME
arenotma de,thec r
e dit
orc an overEXPENSESiscal
led
(
Cur
rentLi
ab) fore
closeorc ausethe "NETINCOME" .True
mortgagedass etTOBESOLD
3.ACCRUEDEXPENSESa r
e toenablethee nti
tytos ettl
et he 13.Theexce
ssofEXPENSES
amount
sowe
dtoot
her
sfor clai
m. overI
NCOMEi sca
ll
ed"NET
UNPAIDEXPENSES. LOSS".True
(
Nonc
urr
entLi
ab)
(
Cur
rentLi
ab) 14.I
NCOME" i
ncr
eas
es"
~~~~~~~~~~~~~~~~~~~~~~~~ Owner'
sEqui
ty.Tr
ue
4.UNEARNEDI NCOMEi s ~~
reve
nuecoll
ect
edbythe 15.EXPENSE" de
c r
eas
es"
busi
nessi
nadvance
.(Rece
ive
d/ "
OWNER'
SEQUI
TY" Owner'
sEqui
ty.True
coll
ect
edINADVANCE,but
notyetea
rned)
. 9.CAPI TAL.Thi saccountis 16.ADDITIONAL
usedtorecordthe"ORI GINAL INVESTMENT" i
ncr
eas
es"
(
Cur
rentLi
ab) andADDI TI ONAL Owner'
s.Tr
ue
INVESTMENTS"oft heowner
5.CURRENTPORTI ONOF ofthebusinessenti
ty.Itis 17.OWNER'sDRAWI NG
LONG- TERM DEBTa r
e inc
reasedbyt heamountof "dec
rea
ses
"Owner
'sEqui
ty.
porti
onsofmor tgage,notes, PROFI Tea r
ne dduri
ngt heye
ar True
bondsandot he rlong-ter
m orisdecre
a s
edbyaLOSS.
indebt
ednesswhi c
ha ret obe ~~~~~~~~~~~~~~~~~~~~~~~~
pa i
d"WITHI NONEYEAR" #NOTE:Thisaccounti
sal
so ~~
fromtheBa l
a nc eShee tdat
e(or usedtor
ecor
dthe
endofRe portingPe riod). "PERMANENTwi thdr
awal
"of DEBI
TORCREDI
T
theowner
.
(
Cur
rentLi
ab) (PERMANENTwi thdr
awa
l Gui
de:
me a
nswit
hdrawa
lof A=L+OE
INVESTEDc api
tal)
Lookatthee
qualsi
gn(=) S-t
ock
hol
der
's(
orOwne
r'
s) Accr
uedExpense
,Une a
rne
d
IfLEFT:Debi
t Equi
ty I
ncome,BondsPaya
ble,
IfRIGHT:Credi
t Mort
gagePayabl
e.
..
..CREDIT
*
(Nor
malBal
anc
e) 32.Whatist
he"NORMAL
18.I
NCREASEinASSET..
..
. (Nor
malBa
lanc
e)-ADE& BALANCE"ofOwne r'
sCapi
ta
l,
DEBIT LOR RevenueorI
ncome.
..
..CREDIT
19.I
NCREASEinLI
AB. .
..
.
CREDIT DEBIT(ADE) 33.Whati
sthe"NORMAL
20.I
NCREASEinOE..
..
. A-sset BALANCE"ofOwne r'
s
CREDIT* D-r
awings Drawi
ng,Expens
e..
..
.DEBI
T
E-xpens
e
Appl
y"FRIENDS"and 34.Wha tist
he"NORMAL
"ENEMIES"ofOE CREDIT( LOR) BALANCE"ofAl l
owancefor
L-ia
bili
tie
s Doubtf
ulAc counts
,
Whoar
ethe"Frie
nds"ofOE? O-wne r
'sequi
ty Accumul a
tedDe pr
eci
at
ion.
..
..
-
Inc
ome,Revenue,Gai
n R-evenue CREDI T*
(
CREDIT)*
~~~~~~~~~~~~~~~~~~~~~~~~ *CREDI T,bec
aus
ethe
yar
e
Whoaret
he"Enemie
s" cont
ra-
asset
s
-
Expe
nse,Dr
awings(DEBI
T) *ForDECREASES,j
ustdot
he
"OPPOSITE" ~~~~~~~~~~~~~~~~~~~~~~~~
21.I
NCREASEi nINCOME.
..
.. ~~~
CREDIT 24.DECREASEinASSET..
..
.
22.I
NCREASEi n CREDIT Def
ini
ti
ons,Cl
ass
ifi
cat
ionsa
nd
EXPENSE.
..
..DEBIT 25.DECREASEinLIAB..
..
. Exa
mplesofAccount
s
23.I
NCREASEi nOWNER'S DEBIT
DRAWING..
...DEBIT 26.DECREASEinOE..
..
. I
.
DEBIT
NOTE: 27.DEREASEinINCOME...
.. -REALa
ccount
s(or
(
INCREASEi nASSET.
..
.. DEBIT PERMANENTa ccount
s)
DEBIT) 28.DECREASEin
(
INCREASEi n"CONTRA- EXPENSE..
..
.CREDIT Therea
lacc
ountsar
e
ASSET.
"..
.."
CREDIT") 29.DECREASEinOWNER' S -Ass
ets
DRAWI NG.
..
..CREDIT -Li
abi
li
ti
esand
* -Owner
’sEqui
ty/
Capit
al
DECREASEi nCONTRA-
(
NormalBa
lanc
e)-DEAL& ASSET.
..
..DEBIT Realaccountsarerepor
tedi
n
GIRLS t
heSta t
eme ntofFinanc
ial
30.Wha ti sthe"NORMAL Posi
ti
on(or" BALANCE
DEBIT( DEAL) BALANCE"ofCa sh,Trading SHEET" ).Theya renot
D-i
vidends(Dr
awi
ngs
) Secur it
ies,Ac counts "cl
osed"atthee ndof
E-
xpe nses Re c
e ivables,Not e
sRe c
eivabl
es, acc
ountingpe r
iod.
A-s
set Ac cruedI ncome ,Supplies,
L-
osse s Prepa idExpe nse,La nd, -
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
Building,Ma chinery& -
--
--
--
--
--
--
--
--
--
--
--
-
CREDI T(GIRLS) Equi pme nt,Furnitur
e&
G-ains Fixtures..
...DEBI T -NOMI
NALacc
ounts(
or
I-
ncome TEMPORARYacc
ount
s)
R-evenues 31.Whati
sthe"NORMAL
L-i
abili
ti
es BALANCE"ofAc c
ounts Thenomi
nala
ccount
sar
e
Paya
ble
,NotesPayabl
e,
-
Inc
ome /
revenue
s Reve
nueac
count
sha
venor
mal -
--
--
--
--
--
--
--
--
--
--
--
-
-
Expensesand CREDITbal
ance
.
-
Own er
’sDr a
wing TheEXPENSESAc
count
Bel
owa r
esomecommon
NominalAcc ount saret
hose r
evenu
ea c
count
s: Expensesar
ec os
tincurr
edin
t
hatcompriset hee le
mentsof conduct
ingthebusi
ness
t
heState
me ntofFi nanc
ial Sa l
es–ana ccountusedto act
ivit
ie
s.Expenseaccount
s
Perf
ormance( orINCOME summa r
izesaleofgoodsofa havenormalDEBI Tba l
anc
es.
STATEMENT)–t here
venue t
radeorme rchandi
singbusi
nes
s. Somec ommone xpense
andexpens
esa ccounts. Thisinc
ludescashsa l
esand account
sareasfoll
ows:
sal
esona cc
ount .
Thes eaccountsarecal
led CostofSal
es–theva
lueof
te
mpor a
rybe causethe
ya r
e Servi
ceI ncome–t heear
ning mer
chandis
esol
d
"cl
o sed",orputintozer
o der
ivedfroms er
vicerende
red
bal
a nce,attheendofthe byas e
rvicingbusi
nesstoit
s Suppli
e sExpense–t he
accountingperiod. cust
omers.Thisincl
udescash amountofs uppl
iesconsumedor
andona c
c ountser
vice. usedbythebus i
nessduringthe
*Pl
easenot etha tOwne r’
s peri
od.Exampl e
s:usedin
Drawingi sNOTa nincome Pr ofess
ionalFees–the paper
s,inks,bal
lpoi
ntpe ns
,e t
c.
st
ate
me nta ccount,butmus t earningde r
ivedfroms e
rvic
es
al
sobec losed,orputi ntozer
o renderedbyapr ofessi
onalor Sala
riesandWagesExpens
es
bal
ance,atthee ndoft he professi
onals e
rvici
ngfir
m –theamountpai
dtoser
vice
acc
ountingpe riod. whi chcouldbei ncashorin r
enderedbythee
mployeesin
collect
ibl
est oit
sc l
ie
nts. t
heoperati
onoft
hebusine
ss
-
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
-
--
--
--
--
--
--
--
--
--
--
--
- I ntere
stI nc
ome–t heearni
ng InsuranceExpe nse–the
repr es
entingthetimeval
ueof amountofi nsura
nc epoli
cy
SUMMARY: mone yde ri
vedfrompromiss
ory inc
urreddur i
ngthec urr
ent
REALa cc
ount
s(or note srec
e ive
dbyt hebusi
ness
, per
iod.Exa mples:premiumson
PERMANENTa cc
ount
s) whe t
herinc ashorcol
lec
ti
bles buil
dinginsurance,li
fe
-Ass
ets int hefuture. ins
urance,plantinsur
ance,e
tc.
-Li
abi
li
ti
es
-Owner
’sEqui
ty RentI ncome–t heinc
ome Ta xesa ndLi ce
nse sExpe nse
s
ear
nedf roma l
lowingothe
rsto –thec ostofloc a
la swe llas
NOMI NALa ccounts(or useprope r
tyorfaci
li
tyofthe nati
ona ltaxesthatareinc ur
red
TEMPORARYa ccounts
) busi
ness. andr e
qui redtobepa idin
-Inc
ome /
revenues connectionwi t
ht hec onductof
-Expense
sa nd Ga i
nonSa l
esofot herAs set
s thebusine ss
.
–t heincomede r i
vedfromt he
-
Own
er’
sDr
awi
ng salesofa s
setsus edinthe Exa mpl
e :Costtoacquir
e
bus i
nessope r
ation.Thereisa ma yor
’spe r
mit,regi
str
ati
on
-
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
-- gainons aleifthepr oc
e eds costofthebuildi
ng,percent
age
-
--
--
--
--
--
--
--
--
--
--
--
- exc e
edthebookva l
ueorc ostof t
a xonsa le
s,et
c .
disposedasset.Exa mplesare
I
I. gainone quipme nt,gai
nons al
e Ot
her
s
investments,gainons aleof
TheREVENUEAc
count
s land,etc. "
Est
ima
tedExpe
nse
"
Revenuereprese
ntstheear
nings Ot
her
s Doubtf
ulAc c
ountExpens
es–
ofthebus
ine s
sfroms al
esof
t
heest
imate
da mountofl
osses
goodsorservic
er e
ndered. -
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
-- t
heuncol
lec
tibl
eaccount
s
ari
singf r
omc reditsalesofthe I
NDI
VIDUAL. t
hatits
ell
s.
curr
e ntperi
od.Thi sisa l
so (
SaleofGOODS)
cal
ledt hedebtexpe nseor 2.PARTNERSHI Pisan (
Buy=>"Produc
e"=>Se
ll
)
uncollect
ibl
ea c
c ounte xpen
s e
. associ
a t
ionof"TWOor
MORE"pe r
sonswhobi nd ~~~~~~~~~~~~~~~~~~~~~~~~
De pre ci
ationExpe nse– themse l
vestocontri
butemoney, ~~
r
e presentsthecurrentpe r
iodi
c propertyorindust
ry(s
ervi
ces
)to
costforus ingdepre cia
bleplant ac ommonf und,wi t
hthe "ELEMENTS"ofFS(
Fina
nci
al
assets
.I nac cor
danc ewi t
hthe inten
tionofd i
vidi
ngtheprofi
ts Sta
teme
nts
)
syst
e micc ostofde preci
able amongt hems el
ves.
assetshouldbea l
loca t
edas 7.I NCOME/ REVENUEi sthe
expenseove rit
sus efulli
fe. 3.CORPORATI ONisa n gros sINFLOW ofe conomic
arti
ficalbeing(
notnatural
,like be nefi
tsduri
ngt heperiodint he
Ot
her
s huma nbe i
ng)cre
ate
dby formofI NFLOWSor
ope r
a t
ionofLAW,ha vingthe enha ncementsona sset
sor
-
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
-- rightso fSUCCESSI ON,a nd de crea
seinliabil
it
iesthatresult
-
--
--
--
--
--
--
--
--
--
--
--
- thePOWERSAND ini ncr
easeine qui
ty,othert
ha n
ATTRI BUTESe xpr
es s
ly thos erel
at
ingtoc ontri
buti
ons
SUMMARY: authorizedbyl a
wori ncidentt
o fromt heowne rorowne r
s.
Re venue itsexistence.
-Sales 8.EXPENSEi sdefi
ne da st
he
-ServiceInc
o me 4.COOPERATI VEi salegal grossOUTFLOW ofe c onomic
-Professi
onalFees enti
tyowne dand benefit
sduringthepe r
iodi nthe
-Intere
stInc
o me democ r
aticall
yc ontr
olledbyit
s courseofordinaryacti
vi t
ies
-Re ntInc
ome me mbers.Me mbe rsoftenhave whe ntheseOUTFLOWSr e
sult
-Ga inonSalesofothe
rAs
set
s acloseass oci
ati
onwi ththe inDECREASEi nequityother
-Oth er
s enter
pri
s ea spr
oduc ersor thanthoserelat
ingto
consume rsofitsproductsor dist
ribut
iontoowne rs.
Expenses ser
vices,ora sit
se mployees
. ~Insimpleterms ,t
hesea re
-CostofSa le
s COSTSi ncurre
dt oproduc e
-Suppli
esExpe nse ~~~~~~~~~~~~~~~~~~~~~~~~ income /
revenue.
-Sal
ariesandWa ge
sExpens
es ~~
-Ins
uranceExpe nse 9.ASSETSa rede finedas
-TaxesandLi ce nse
sExpens
es "
TYPES"OFBUSI
NESS RESOURCESc ontroll
edbyt he
-DoubtfulAc countExpens
es ent e
rpris
ea sar esultofpas t
-Depreciat
ionExpe nse 4.SERVI CEBUSINESS.Thi
s transacti
onsa nde ventsand
-Other
s busines
srende
rsse
rvi
cest
o fromwhi chfuturee conomi c
cust
o mersorc
li
ent
sforaf
ee. be nefi
tsareexpe ctedtoflowt o
(Sal
eofSERVI CES) thee nter
prise
.
~Ins impleterms ,theseare
ACCOUNTI
NGTUTORI
AL 5. PROPERTI ESowne dbyt he
(
Par
t4) MERCHANDI SING/TRADIN bus i
ness.
GBUSI NESS.Thisbusi
nes
s
"
BASI
CACCOUNTI
NG" buygoodsorcommodit
iesa
nd 10.LIABI LITIESa r
ede fi
ned
sel
lthe
ma taprof
it
. asprese
ntOBLI GATI ONSof
"FORMS"OFBUSI
NESS (Sal
eofGOODS)( Buy=>Sel
l) anenter
prisearisingfrompa st
ORGANIZATI
ON tr
ansact
ionsore ve nts
,the
6.MANUFACTURI NG set
tl
eme ntofwhi c hisexpecte
d
1.SINGLE/SOLE BUSI NESS.Thisbusine
ss tore
sultinanout flowf romthe
PROPRI ETORSHIPisa makes" f
inis
hedgoods"from ent
erpri
seofr esou rc
es
busi
nessownedbyonl
yONE "r
awma t
e r
ial
s"orunass
embled embodyinge conomi cbe nefi
ts
.
par
ts.It"pr
oduces"t
hegoods ~Insimpleterms ,thesea r
ethe
financialobli
gat
ionsorDEBTS Cur
renta
sse
t. ye
tinc
urr
ed"
).
ofthebus iness
.I
tisals
o
de s
cribeda sCLAIM ofthe 4.ALLOWANCEFOR Cur
renta
sse
t.
CREDI TORSont heAsset
sof DOUBTFULACCOUNT
thee nte
rprise
. rel
at
e stothec
ompany'
s 10.OFFICE/STORE
rec
eivable
swhichmightnotbe SUPPLIESa rebei
ngusedby
11.OWNER' S col
lecte
d. thebus
ines
slikepaper
s,pe
ns,
EQUITY/ CAPITALr e
present
s penci
ls
,fol
ders,s
tapl
ers
,et
c.
theCLAIMo ftheOWNERon Cur
renta
sse
t.(
Cont
ra-
Ass
et)
theAsse
tsofthebusi
ness.I
tis Cur
renta
sse
t.
theRESIDUALI NTERESTi n #NOTE:"CONTRA- ASSET"
theAsse
tsofthebusi
nessaft
er acc
ounti
stheoppos
it
eof 11.LANDi sanassett
hatisnot
deduc
ti
nga l
litsl
ia
bil
it
ies. "ADJUNCT"a cc
ount subj
ectt
ode pr
eci
at
ion.It
appr
ecia
tes(va
luei
nc r
ease
s)as
~~~~~~~~~~~~~~~~~~~~~~~~ Inl
ayman'
ste
rm, ti
megoe sby.
~~~ CONTRA=de duc
ted
ADJUNCT=a dde
d(Exa
mpl
e: Nonc
urr
enta
sse
t.
Import
ant
:CAPI TAL Fre
igh
tIn)
ACOUNT( orEQUI TY 12.BUI LDINGc anbeacquire
d
ACCOUNT)c onsi
stsoft
he 5.NOTESRECEI VABLEare byPURCHASEorbyme ansof
fol
lowi
ng: cl
aimss
uppor
tedbypr
omis
sory CONSTRUCTI ON.
a."Owner
'sCapita
l" not
e. Constructi
oncostsma yi
nclude
b."Owner
'sDrawing" materi
a l
s,la
bor,overhea
d,
Currenta
sset
,ifs
hor
t-
ter
m. permitorlice
nse,Archit
ectfee
,
~~~~~~~~~~~~~~~~~~~~~~~~ (AlsoaCurre
ntAsse
tift
he Excava t
ioncost
,etc.
~~ problemisSI
LENT)
Nonc
urr
enta
sse
t.
EXAMPLESof"
ASSET" Nonc
urr
enta
sse
t,i
flong-
ter
m.
Acc
ount
s 13.MACHI NERY&
6.MERCHANDISE EQUI PMENTi ncl
udes
1.CASHi sanyme diumof INVENTORYaregoodson computer
s,ai
r-
condit
ioni
ng
exchangethatabankwi ll handa
ndar
eava
ila
blefors
ale
. unit
s,el
ect
ri
cfans,f
reezer
s,
acc
e ptatfac
eva l
ue.Itinc
ludes ref
ri
gerat
ors
,tr
uck,et
c .
coi
nsa ndcurre
nc i
es,checks
, Cur
renta
sse
t.
mone yordersandbankdr a
fts
. Nonc
urr
enta
sse
t.
7.ACCRUEDI NCOME.
Cur
renta
sse
t. Earnedbutnotyet 14.FURNI TUREAND
rec
e i
ved/
coll
ect
ed. FIXTURESi ncludesta
bles
,
2.TRADI NGSECURI TI ESa r
e chai
rs,f
il
ingcabine
ts,et
c.
debtandequi
tysec
uri
ti
e sthat Cur
renta
sse
t.
arepurc
hasedwit
htheintentof Nonc
urr
enta
sse
t.
sel
li
ngthemi nt
he"nea
rt erm" 8.ADVANCESTO
orverysoon. EMPLOYEES.Ca s
hrece
ived 15.ACCUMULATED
byempl
oye
estobededuct
ed DEPRECI ATION."Tot
al
"
Cur
renta
sse
t. fr
omthe
irs
ala
rie
sinthef
u t
ure
. depr
eci
ate
dc ostofa
depr
eci
ableass
e t
.
3.ACCOUNTS Cur
rentAs
set
.
RECEI VABLESa reclai
ms Nonc
urr
enta
sse
t.(
Cont
ra-
ass
et)
agai
nstdebt
orsorcust
ome r
s 9.PREPAIDEXPENSESa r
e
ari
si
ngf r
oms er
vic
esrender
ed expens
esPAIDI
NADVANCE 16.INTANGI BLEASSETisan
onaccountandsal
eof bythebus
ine
ss(
"Pa
idbutnot ide
ntif
iabl
enon-
monet
arya
sse
t
merchandi
seonaccount
.
"withoutphysi
cals ubs
tance"or (
Cur
rentLi
ab) mea
nswi
thdr
awa
lof
havenophys ica
la ppear
a ncebut I
NVESTEDcapi
ta
l)
areexpec t
edtoprovidefuture 6.NOTESPAYABLE( long-
economi cbenef
it
st othe ter
m)a reamountsduet
o 10.
compa ny. cre
ditor
s" be
yond"oneyear
, DRAWI NGS/ TEMPORARY
evide
n c
e dbyWRI TTEN WI THDRAWALS.Cha r
gedto
Nonc
urr
enta
sse
t. PROMI SEtopay. thisac
c ountarecashorother
asset
swi thdrawnbyt heowner
~~~~~~~~~~~~~~~~~~~~~~~~ (
Nonc
urr
entLi
ab) fromthebus i
nessf
orpe r
sona
l
~~~~ use(representedbytheowner'
s
7.BONDSPAYABLEi sa sharei
npr ofi
t)
"
LIABI
LITI
ES" lia
bil
ityowe dbyac ompa nyto
obtai
ns ubstant
ials
umsof 11.INCOMESUMMARY.I tis
1.ACCOUNTSPAYABLEa r
e mone yfroml ender
stofinanc
e at e
mpor aryaccountus eda tt
he
amount
sduet
ocr
edi
tor
sfor theacquisit
ionofequipment endoft hea cc
ountingpe ri
odt o
ASSETSACQUIREDon andothe rneededasse
ts. closeincomea nde xpe nse
s .
acc
ount
. Thisa ccountshowst hepr ofi
tor
(
Nonc
urr
entLi
ab) lossforthepe r
iodbe fore
(
Cur
rentLi
ab) closi
ngt othec api
talac c
ou nt
.
8.MORTGAGEPAYABLE.
2.NOTESPAYABLE( shor
t- Long-ter
mde btofthebus iness ~~~~~~~~~~~~~~~~~~~~~~~~
ter
m)a r
eamountsduet
o forwhichthebus inesse ntity ~~
cre
ditor
s"wi
thi
n"oneyear, hasPLEDGEDc ert
a inas s
e t
sas
evide
ncedbyWRI TTEN SECURI TYt othec reditor.In Tr
ueorFa
lse
PROMI SEtopay. theeventthatthede btpa yme nt
s
arenotma de,thec r
e dit
orc an 12.Theexc
essofI
NCOME
(
Cur
rentLi
ab) fore
closeorc ausethe overEXPENSESiscal
led
mortgagedass etTOBESOLD "NETINCOME" .True
3.ACCRUEDEXPENSESa r
e toenablethee nti
tytos ettl
et he
amount
sowe
dtoot
her
sfor clai
m. 13.Theexce
ssofEXPENSES
UNPAIDEXPENSES. overI
NCOMEi sca
ll
ed"NET
(
Nonc
urr
entLi
ab) LOSS".True
(
Cur
rentLi
ab)
~~~~~~~~~~~~~~~~~~~~~~~~ 14.I
NCOME" i
ncr
eas
es"
4.UNEARNEDI NCOMEi s ~~ Owner'
sEqui
ty.Tr
ue
reve
nuecoll
ect
edbythe
busi
nessi
nadvance
.(Rece
ive
d/ "
OWNER'
SEQUI
TY" 15.EXPENSE" de
c r
eas
es"
coll
ect
edINADVANCE,but Owner'
sEqui
ty.True
notyetea
rned)
. 9.CAPI TAL.Thi saccountis
usedtorecordthe"ORI GINAL 16.ADDITIONAL
(
Cur
rentLi
ab) andADDI TI ONAL INVESTMENT" i
ncr
eas
es"
INVESTMENTS"oft heowner Owner'
s.Tr
ue
5.CURRENTPORTI ONOF ofthebusinessenti
ty.Itis
LONG- TERM DEBTa r
e inc
reasedbyt heamountof 17.OWNER'sDRAWI NG
porti
onsofmor tgage,notes, PROFI Tea r
ne dduri
ngt heye
ar "dec
rea
ses
"Owner
'sEqui
ty.
bondsandot he rlong-ter
m orisdecre
a s
edbyaLOSS. True
indebt
ednesswhi c
ha ret obe
pa i
d"WITHI NONEYEAR" #NOTE:Thisacc
ounti
sal
so ~~~~~~~~~~~~~~~~~~~~~~~~
fromtheBa l
a nc eShee tdat
e(or usedtor
ecor
dthe ~~
endofRe portingPe riod). "PERMANENTwi t
hdr
awal
"of
theowner
. DEBI
TORCREDI
T
(PERMANENTwi t
hdr
awa
l
Gui
de: I-
ncome 31.Wha ti
sthe"NORMAL
A=L+OE R-eve
nues BALANCE"ofAc count
s
L-i
abil
it
ie
s Payable
,NotesPayable,
Lookatthee
qualsi
gn(=) S-t
ockhol
der
's(
orOwne
r'
s) Acc r
uedExpense
,Une arne
d
IfLEFT:Debi
t Equit
y Income,BondsPayable,
IfRIGHT:Credi
t Mor t
gagePayabl
e..
..
.CREDI T
*
(Nor
malBal
anc
e) 32.Whatist
he"NORMAL
18.I
NCREASEinASSET..
..
. (Nor
malBa
lanc
e)-ADE& BALANCE"ofOwne r'
sCapi
ta
l,
DEBIT LOR RevenueorI
ncome.
..
..CREDIT
19.I
NCREASEinLI
AB. .
..
.
CREDIT DEBIT(ADE) 33.Whati
sthe"NORMAL
20.I
NCREASEinOE..
..
. A-sset BALANCE"ofOwne r'
s
CREDIT* D-r
awings Drawi
ng,Expens
e..
..
.DEBI
T
E-xpens
e
Appl
y"FRIENDS"and 34.Wha tist
he"NORMAL
"ENEMIES"ofOE CREDIT( LOR) BALANCE"ofAl l
owancefor
L-ia
bili
tie
s Doubtf
ulAc counts
,
Whoar
ethe"Frie
nds"ofOE? O-wne r
'sequi
ty Accumul a
tedDe pr
eci
at
ion.
..
..
-
Inc
ome,Revenue,Gai
n R-evenue CREDI T*
(
CREDIT)*
~~~~~~~~~~~~~~~~~~~~~~~~ *CREDI T,bec
aus
ethe
yar
e
Whoaret
he"Enemie
s" cont
ra-
asset
s
-
Expe
nse,Dr
awings(DEBI
T) *ForDECREASES,j
ustdot
he
"OPPOSITE" ~~~~~~~~~~~~~~~~~~~~~~~~
21.I
NCREASEi nINCOME.
..
.. ~~~
CREDIT 24.DECREASEinASSET..
..
.
22.I
NCREASEi n CREDIT Def
ini
ti
ons,Cl
ass
ifi
cat
ionsa
nd
EXPENSE.
..
..DEBIT 25.DECREASEinLIAB..
..
. Exa
mplesofAccount
s
23.I
NCREASEi nOWNER'S DEBIT
DRAWING..
...DEBIT 26.DECREASEinOE..
..
. I
.
DEBIT
NOTE: 27.DEREASEinINCOME...
.. -REALa
ccount
s(or
(
INCREASEi nASSET.
..
.. DEBIT PERMANENTa ccount
s)
DEBIT) 28.DECREASEin
(
INCREASEi n"CONTRA- EXPENSE..
..
.CREDIT Therea
lacc
ountsar
e
ASSET.
"..
.."
CREDIT") 29.DECREASEinOWNER' S -Ass
ets
DRAWI NG.
..
..CREDIT -Li
abi
li
ti
esand
* -Owner
’sEqui
ty/
Capit
al
DECREASEi nCONTRA-
(
NormalBa
lanc
e)-DEAL& ASSET.
..
..DEBIT Realaccountsarerepor
tedi
n
GIRLS t
heSta t
eme ntofFinanc
ial
30.Wha ti sthe"NORMAL Posi
ti
on(or" BALANCE
DEBIT( DEAL) BALANCE"ofCa sh,Trading SHEET" ).Theya renot
D-i
vidends(Dr
awi
ngs
) Secur it
ies,Ac counts "cl
osed"atthee ndof
E-
xpe nses Re c
e ivables,Not e
sRe c
eivabl
es, acc
ountingpe r
iod.
A-s
set Ac cruedI ncome ,Supplies,
L-
osse s Prepa idExpe nse,La nd, -
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
Building,Ma chinery& -
--
--
--
--
--
--
--
--
--
--
--
-
CREDIT(
GIRLS) Equi pme nt,Furnitur
e&
G-a
ins Fixtures..
...DEBI T -NOMI
NALacc
ounts(
or
TEMPORARYacc
ount
s)
Thenomi nalacc
ount
sar
e Reve
nueac
count
sha
venor
mal -
--
--
--
--
--
--
--
--
--
--
--
-
-Inc
ome /
revenues CREDITbal
ance
.
-Expensesand TheEXPENSESAc
count
-Own er
’sDr a
wing Bel
owa r
esomecommon
r
evenu
ea c
count
s: Expensesar
ec os
tincurr
edin
NominalAcc ount saret
hose conduct
ingthebusi
ness
t
hatcompriset hee le
mentsof Sa l
es–ana ccountusedto act
ivit
ie
s.Expenseaccount
s
t
heState
me ntofFi nanc
ial summa r
izesaleofgoodsofa havenormalDEBI Tba l
anc
es.
Perf
ormance( orINCOME t
radeorme rchandi
singbusi
nes
s. Somec ommone xpense
STATEMENT)–t here
venue Thisinc
ludescashsa l
esand account
sareasfoll
ows:
andexpens
esa ccounts. sal
esona cc
ount .
CostofSal
es–theva
lueof
Thes eaccountsarecal
led Servi
ceI ncome–t heear
ning mer
chandis
esol
d
te
mpor a
rybe causethe
ya r
e der
ivedfroms er
vicerende
red
"cl
o sed",orputintozer
o byas e
rvicingbusi
nesstoit
s Suppli
e sExpense–t he
bal
a nce,attheendofthe cust
omers.Thisincl
udescash amountofs uppl
iesconsumedor
accountingperiod. andona c
c ountser
vice. usedbythebus i
nessduringthe
peri
od.Exampl e
s:usedin
*Pl
easenot etha tOwne r’
s Pr ofess
ionalFees–the paper
s,inks,bal
lpoi
ntpe ns
,e t
c.
Drawingi sNOTa nincome earningde r
ivedfroms e
rvic
es
st
ate
me nta ccount,butmus t renderedbyapr ofessi
onalor Sala
riesandWagesExpens
es
al
sobec losed,orputi ntozer
o professi
onals e
rvici
ngfir
m –theamountpai
dtoser
vice
bal
ance,atthee ndoft he whi chcouldbei ncashorin r
enderedbythee
mployeesin
acc
ountingpe riod. collect
ibl
est oit
sc l
ie
nts. t
heoperati
onoft
hebusine
ss

-
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
-- I ntere
stI nc
ome–t heearni
ng InsuranceExpe nse–the
-
--
--
--
--
--
--
--
--
--
--
--
- repr es
entingthetimeval
ueof amountofi nsura
nc epoli
cy
mone yde ri
vedfrompromiss
ory inc
urreddur i
ngthec urr
ent
SUMMARY: note srec
e ive
dbyt hebusi
ness
, per
iod.Exa mples:premiumson
REALa cc
ount
s(or whe t
herinc ashorcol
lec
ti
bles buil
dinginsurance,li
fe
PERMANENTa cc
ount
s) int hefuture. ins
urance,plantinsur
ance,e
tc.
-Ass
ets
-Li
abi
li
ti
es RentI ncome–t heinc
ome Ta xesa ndLi ce
nse sExpe nse
s
-Owner
’sEqui
ty ear
nedf roma l
lowingothe
rsto –thec ostofloc a
la swe llas
useprope r
tyorfaci
li
tyofthe nati
ona ltaxesthatareinc ur
red
NOMI NALa ccounts(or busi
ness. andr e
qui redtobepa idin
TEMPORARYa ccounts
) connectionwi t
ht hec onductof
-Inc
ome /
revenues Ga i
nonSa l
esofot herAs set
s thebusine ss
.
-Expense
sa nd –t heincomede r i
vedfromt he
salesofa s
setsus edinthe Exa mpl
e :Costtoacquir
e
-
Own
er’
sDr
awi
ng bus i
nessope r
ation.Thereisa ma yor
’spe r
mit,regi
str
ati
on
gainons aleifthepr oc
e eds costofthebuildi
ng,percent
age
-
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
-- exc e
edthebookva l
ueorc ostof t
a xonsa le
s,et
c .
-
--
--
--
--
--
--
--
--
--
--
--
- disposedasset.Exa mplesare
gainone quipme nt,gai
nons al
e Ot
her
s
I
I. investments,gainons aleof
land,etc. "
Est
ima
tedExpe
nse
"
TheREVENUEAc
count
s
Ot
her
s Doubtf
ulAc c
ountExpens
es–
Revenuereprese
ntstheear
nings
t
heest
imate
da mountofl
osses
ofthebus
ine s
sfroms al
esof -
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
-- t
heuncol
lec
tibl
eaccount
s
goodsorservic
er e
ndered.
ari
singf r
omc reditsalesofthe LI
ABI LITI
ES: s
igni
ngaMORTGAGEpa ya
ble
curr
e ntperi
od.Thi sisa l
so Account
sPaya
ble
,Mor
tga
ge i
n10y e
arsf
ort
heba
lanc
e.
cal
ledt hedebtexpe nseor Pa
ya bl
e
uncollect
ibl
ea c
c ounte xpen
s e
. DEBI T:Offi
ceBui l
ding
CAPITAL(Owner
'sEqui
ty)
: 500000
De pre ci
ationExpe nse– DeAsisCa
pit
al
,DeAs i
s CREDI T:Cash25 0000
r
e presentsthecurrentpe r
iodi
c Dra
wing CREDI T:Mor t
gagePa ya
ble
costforus ingdepre cia
bleplant 250000(500000-250000)
assets
.I nac cor
danc ewi t
hthe REVENUES:
syst
e micc ostofde preci
able Ser
vic
eInc
ome .
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
assetshouldbea l
loca t
edas
expenseove rit
sus efulli
fe. EXPENSES: 4.HI
REDas ec
ret
arywit
h
Sal
arie
sa ndWa gesExpens
e, mont
hlys
ala
ryof8500.
Ot
her
s Repair
sa ndMaintena
nce
Expense,Taxe
sa ndLice
nses "
NoEnt
ry"
-
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
-- Expense
-
--
--
--
--
--
--
--
--
--
--
--
- .
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
~~~~~~~~~~~~~~~~~~~~~~~~
SUMMARY: ~~ 5.Boughtoff
iceTABLESAND
Re venue CHAI RSonCREDI Tfrom
-Sales #J
OURNALI
ZING Mansion,I
nc.
,40000
-ServiceInc
o me
-Professi
onalFees 1.Franci
s"openedana ccount" DEBIT:Furni
tur
ea ndFi
xtur
e
-Intere
stInc
o me withBPIundertheTAC 40000
-Re ntInc
ome COMPANYna mea nd CREDI T:Acc
ountsPaya
ble
-Ga inonSalesofothe
rAs
set
s deposit
ed850000CASH.He 40000
-Oth er
s al
so" i
nvest
ed"histwope rsona
l
COMPUTERSwhi c
hhe .
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
Expenses acquir
edaye a
ragof or20000
-CostofSa le
s eachbutwithafairma r
ket 6.BI
LLEDacli
entfor
-Suppli
esExpe nse valueof15000each. SERVICESr
ender
ed,20000.
-Sal
ariesandWa ge
sExpens
es
-Ins
uranceExpe nse DEBI T:Cash850000 DEBIT:Ac c
ountsRe
cei
vabl
e
-TaxesandLi ce nse
sExpens
es DEBI T:Offi
ceEquipment 20000
-DoubtfulAc countExpens
es 30000(15000x2) CREDI T:Ser
vic
eInc
ome
-Depreciat
ionExpe nse CREDI T:DeAs is
,Ca pi
ta
l 20000
-Other
s 880000(850000+30000)
.
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
.
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
"
DEBI
TandCREDI
T" 7.Purc
hasescomput
erI
NK,
2.PAIDbar
anga
yand COUPONBONDPAPERa nd
ACCOUNTI
NGTUTORI
AL- munic
ipa
lTAXES,3500. BALLPENSt obeus
edinthe
PART5 off
ice
;ter
ms :CASHbasi
s,
DEBIT:Taxe
sandLice
nse
s 4500.
ASSETS: Expe
nse3500
Cash,AccountsRe c
e i
vabl
e, CREDIT:Cash3500 DEBIT:Off
iceSuppl
ie
s4500
Pre
p ai
dRe nt,Pre
paidInsu
ranc
e, CREDIT:Cash4500
Offi
ceSupplies. .
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
Offi
ceBuilding,Offi
ce .
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
Equipment,Furni
tureand 3.Boughtasmal
lof
fic
e
Fi
xture. CONDOMI NIUM f
or500000, 8.PAI
Dfi
ft
ype
rce
ntoft
he
givi
ng250000CASHa nd
a
mountOWEDt
oMa
nsi
on,I
nc. i
nbus
ine
ssope
rat
ions
,30000. It
oyunggui
de(
pakis
ula
tmo
(
See#5) na)
:
DEBIT:Pr
epa
idRent30000
DEBIT:Account
sPayabl
e CREDIT:Cas
h30000 *ASSET
20000(
40000x50%) Nagka
roon(+)
,DEBI
T
CREDIT:Cash20000 .
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
.. Nawal
an(-)
,CREDIT

.
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
.. 14.PAID"ONEYEAR *LIABILI
TI ES
INSURANCE"oft heoff
ice Nagkar
oon(+),CREDI
T
9.Fra
ncis"
WI THDREW" condomi
nium,25000. Nawala
n(-),DEBIT
"CASH"of50 000andt
wo
rea
msofBONDPAPERwor t
h DEBIT:Prepa
idI
nsur
anc
e *OWNER' SEQUITY
1000forpe
rsonalus
e. 25000 Na gka
roon(+)ngOE:
CREDI T:Cas
h25000 =Invest
ment/
Capit
al
..
..
DEBIT:DeAsis,Dra
wing CREDI T
51000(
50000+1000) .
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
.. =Re ve
nueorIncome.
..
.
CREDIT:Cash50000 CREDI T
CREDIT:Offi
ceSuppli
es1000 15.PAI
Donehal
fofthe
SALARYofthes
ecre
tar
y(s
ee Nawa l
an(-)ngOE:
.
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
.. #4) =Expe ns
es:
"Ba
wa s"(
-)saOE,pe
ro
10.PAID400fort
heREPAI
R DEBIT:Sal
ari
esExpens
e4250 "Dagdag"(
+)saExpe
nse
..
..
ofoneoft
hecompute
rs (
8500x1/2) DEBI T
CREDIT:Cash4250
DEBIT:Repa
irsand =Drawings:
Mai
ntena
nceExpense400 "Ba
wa s
"(-)saOE,per
o
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oonngOE" ,ang
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..
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vic
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ome5
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ks amay-
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si
nasagotangbawatit
ems. 1.CPABoa r
dExa ms
.
..
..
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it
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ykana
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~~~~~~~~~~
1.CPABoa
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ms -AFAR( Advanc
edFinanc
ial D.Gove
rnme
ntAc
count
ing
Account
inga
ndRe por
ti
ng)
Q:SINOa ngal
lowe
dmag-
take ~~~~~~~~~~~~~~~~~~~~
ngPhil
ippi
neCPABoar
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nomaka
pas
asaCPA
boa
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m? 3.Di
ff
ere
ntAc
count
ingAr
eas
A:
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ght
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tes
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se 75%a ndabove Bookkeeping
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INACCOUNTANCY anysubj
ect) C.Ma nageria
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ng
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ng
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patunaya
ng Gen.Ave
.a yabove75%, ~~~~~~~~~~~~~~~~~~~~
gui
lt
yng" MORAL nguni
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ikeAdulte
ryor saiba
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ct(s
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ff
ere
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A: A.PRC( pr
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li
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ober
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anda
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*Ma sa
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NGTUTORI
AL-
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k *AngCONDI TIONAL Pa
rt8
forBus
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acti
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akunina ngdi "
ADJ
USTI
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ES"
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Taxa
ti
on) nai
pas
angsubject
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hesi
x( 6)
-MAS(Mana
geme
ntAdvi
sor
y si
yana-
condit
ional
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ust
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ri
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Se
rvi
ces
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ness?
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andAudi
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ounti
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dexpe nse
C.Academe(Educat
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nedi ncome( i
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NG"wor
thP500. **
"Unear
nedSe rviceI
ncome "
)
5.Depre
ciat
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dingnai
toa yma y TUTORI
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r
6.Doubtf
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sexpense/ dal
awangrooms. ye
ar
Baddebtexpe nse Room1:Ga gami
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ine
ss"mongtutori
al. -STUDENTA:na g-advanc
e
~~~~~~~~~~~~~~~~~~~~ Room2:Va ca
nt(bakant
esiya
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yangP360(goodfor
3year
s).Dit
oaynakat
anggap
PAALALA:"
Basahi
n" ** ta
yongP360c a
sh
(Ka
hitwa
gmuna
ngunawa
in)
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lika -STUDENTB:hi
ndimuna
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hP500di
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oslahatyat
angna
g-BASIC -STUDENTC:hi
ndimuna
ACCOUNTI NG,a
ysatopi
cna ** nagba
yad
i
tonahi
rapan.
Nexta
ypumuntakasa7el
eve
n **
PEROIWANTTO pa
rabumi
lingPREPAID
"CHALLENGE"YOU.Ar al
in LOADCARDwor t
hP100. Ma ya
-ma yaayni l
a pit
ankang
monai to.Pa
rapagtinur
onani
is
angkaibiga
n.Na ghahanap
Teacherayma ybaonkanang
** dawsiyangma uupa han.Kaya
kaa
lama natdikana
angginawamo,pi nagamitmo
masyadongma hi
rapan.
Summary: munayungba ka ntengROOM 2
-OFFICEBUILDI
NGP500 bil
angroomf orr e
nt .
**
-CELLPHONEP500
-PREPAIDLOADCARD Angusapan,P60kadat
aonang
Nga
yona yga
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amolang
ng"
SUMMARY"ngl aha
tng angbayadattheENDOF2ND
Adj
ust
ingEnt
rie
s. YEAR( 60+60)
Tot
al
:P1,
100
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ial (
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e:J
anua
ry1,2
018)
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imulabuka s
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n
i
ta
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i
isa-
isa
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~~~~~
ADJUSTMENTS( 1-6) TUTORI
ALbus
ine
ss"
.
SUMMARY(
Jan.1,2018)
Oka
yla
ngbas
ayoyun?
?? (
Dat
e:J
anua
ry1,2018)
"ACCOUNTINGTUTORI
AL
"
YES"diba
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lakana
mang ~~~~~~~~~~~~~~~~~~~~ BUSINESS"
~~~~~~~~~~~~~~~~~~~~
ma
gaga
wae
h.
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ss -OfficeBuil
dingP500
-CellphoneP500
#GAME Fi
rst
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egi
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ncefrom
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sthesix(
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yongCELLPHONE. STUDENTA)P360
adj
ust
ingentr
iest
hruaSTORY.
Gagamit
inmoit
opara Note
:ang"pre
pai
dexpense",
makaha
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uruang ga
yangLOAD,a y"nabayara
n
STUDENTS( Te
xt,Cal
land na
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rodipana
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** Sur
f)
Tot
ala
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ts:(
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Bumi
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CE
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magkaka
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NCOME
=P1460 INCOME" (
Ser
vic
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®YungP360wor t
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ce
*"LI
ABILITY": (t
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ountsRe
cei
vable
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ome(
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a t
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fr
omSTUDENTA)P360 CREDIT:Ser
vic
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ome2 40
It
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nedincome" ser
vice
s"nangayongtaon(
1 (
B+C)(
120+120)
ayi s
a nglia
bil
ity.Utangsiy
a year
).
kasima ynat
anggapka ngP360 ~~~~~
cash,ngunithindimopa Ka yasaDec31,2018,P240na
natuturuansiStudentA( wal
a langanghindipanatin 2."RENTINCOME"P60(
dipa
pangs e
rvic
e) nabibi
gaykaySt udentAna ri
nbayad)
serbi
syo.
Ka yaa ngli
abil
it
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ang (P240nalanga ng"unear
ned It
oa yi
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imbawang
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uroor nangga
li
ngsa" ma
inbusi
nes
s"
"ser
v i
ce "
. Na
kaka
sunodpaba
? mongtutor
ial
.

*"
OWNER' SEQUITY": Atthesamet i
me,kumitakana Mayrenti
ncomekana
ngP60
-Capi
ta
l(I
nve
stme
nts
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ina ngt
utori
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a nga
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saunangtaon,P120.
** It
oa yga l
ingsaROOM FOR
EFFECT: RENTkungs aannakat
irana
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awasa
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ngt aon.
1460=360+1100 se
rvi
ce Kayala ngaydimopa
madad
agda
ganangI
NCOME nakokolektaangbayada sof
Dec.31,2018da hi
langus a
pa n
BALANCE!Ama
zing!
!!
!
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arnedSe
rvi
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I
ncome120 bayara
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CREDIT:Se
rvic
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ome120
~~~~~~~~~~~~~~~~~~~~ Year2018=P60RentI
ncome
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c.31,
"I
TONAANGADJ
USTI
NG STUDENTB&C(ACCRUED 2018)
ENTRI
ES" SERVI
CEINCOME)
EFFECT:
Q:Anona manangmgapwe de It
oa yACCRUEDI NCOME( i
n -magka
kar
oonkang
mongKI TAma kali
pasa
ng genera
l).Hindimopa PAUTANG
i
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on?(Da t
e: nakokolektaangcas
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o -magka
kar
oonkangINCOME
December31,2018) INCOMEnas iyada
hilna
gtur
o
kanangi s
angtaon. DEBIT:RentRe
ceiva
ble60
A: CREDIT:RentI
ncome60
Per
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ong
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® INCOMEda h
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li
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osa gi
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:
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iness
"mo( t
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ruedRe ntIncome
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d) 60
EFFECT: CREDIT:RentInc
ome60
** -magkaka
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PAUTANG( Account
s Not
e:Ang"Accr
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nt
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vabl
e) I
ncome"ayi
sang
RECEIVABLEa
ccount(
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et 3.LOADEXPENSE Expens
e"ayis
angPAYABLE
posi
ya) (yunggast
usi
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ate
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all acc
ount(Li
abi
li
typos
iya
)
andsurf
)
~~~~~~~~~~~~~~~~~~~~ **
~I
toayAdj
ust
mentf
or
Q:Anona manangmgapwe de PREPAI
DEXPENSE 5.DOUBTFULACCOUNTS
mongmgaEXPENSESor EXPENSE
GASTUSI Nma kali
pasa
ng Pagna
gte
xtka,ya
nay (par
as ast
udentnahindipa
i
sang(1)t
aon?(Da t
e: NAPAGASTOSka .Ka
si bayad,atmaaari
ng"hindina
December31,2018) na
bawasa
nyungLOADmo. tal
agama gba
bayad")

A: EFFECT: Ca
ndi
dat
edi
tos
inaSTUDENT
-magka
kar
oonkangEXPENSE B&C.
1.DEPRECIATIONEXPENSE -mawawal
an/
mababa
was
anka
-Off
icebui
ldi
ng ngPREPAIDBALANCE Ipagpalaga yna
tinnas iSt
ude
nt
Ca ylubosnana ghihi
rap
(pagli
itnghal
agaor DEBIT:Loa
dexpe
nse financi
ally.Malaking
"pagkaluma"dahi
lnagami
tmo CREDIT:Pr
epa
idexpe
nse posibil
idadnahi ndisi
ya
naa ng"Offi
ceBuil
ding"n
g ma kakaba yadsaparat
ingnadue
isa
ngt aon) ** da t
e.

EFFECT: 4.UTI LITIESEXPENSE EFFECT:

-magka
kar
oonkangEXPENSE (Me r
alco) -magka
kar
oonkangEXPENSE
-mawawal
an(
ngval
ue)a
ng (yungga st
usi
nmosa -mawawal
an/
mababa
was
anang
OFFICEBUILDING "Elect
rici
ty") PAUTANG

DEBIT:Depre
cia
ti
onexpe
nse ~I
toa
yAdjus
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or DEBI T:Doubtfulaccount
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ted ACCRUEDEXPENSE. expense
de
pre
c i
at
ion CREDI T:Allowa nc
ef or
I
pagpal
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ulaccounts
Note
:Ac c
umulatedde
prec
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nge l
ect
ri
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l.
i
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ount.
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ectnit
oay"bawas" Na-c
onsumenaange
lec
tri
ci
ty
saOff
iceBuil
ding. saof
fic
emo,per
odiba ACCOUNTI
NGTUTORI
AL-
naba
bayar
an. PART9
**
EFFECT: "
ADJUSTI NGENTRI
ES"-
2.DEPRECIATI
ONEXPENSE -ma gka
karoonkangEXPENSE c
ont
inua
tion
-Cel
lphone (consumede l
ect
ri
ci
ty)
-ma gka
karoonkangUTANG ~~~~~~~~~~~~~~~~~~~~
(pagli
itnghal
agaor
"pagkaluma"dahi
lnaga
mitmo DEBIT:Ut
il
it
ie
se xpens
e ACCRUALS
naa ng"Cell
phone"ngi
sang CREDIT:Ut
il
it
iespayabl
e
taon) 1.Ac
crue
dEx
pen
se
Saibangmgalibro,gani
toang
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cia
ti
onexpe
nse gina
ga wa:
ADJ
USTI
NGENTRY:
CREDIT:Accumula
ted DEBI T:Uti
li
ti
ese xpe
nse
de
pre
c i
at
ion CREDI T:Accrue
dUt ili
ti
es
expense De
bit
:_____expense
** Cr
edi
t:_____payabl
e
Not
e:Ang"
Acc
rue
dUt
il
it
ie
s
(
Amount
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ed)
* ~~~~~~~~~~ me
thod)

2.Ac
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ome 4.Unear
ne dInc
ome(
or Cost-Sa
lva
geValue/Use
ful
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fe=Depre
cia
ti
onExpens
eper
year
ADJ
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a
.LI
ABI
LITYMe
thod
**
De
bit
:_____re
ceiva
ble Or
igi
nalEnt
ry:
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edi
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fulAc
count
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d
De
bit
:Cash debt
s)
(
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edi
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arne
d_____
ADJ
USTI
NGENTRY:
~~~~~~~~~~~~~~~~~~~~ (
Amount
:tot
al
)
Debit:Doubtf
ulacc
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s
DEFERRALS ADJ
USTI
NGENTRY: expens e
Credit:All
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3.Pr
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bit
:Une ar
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edi
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ome
A.ASSETMe
thod FORMULA:
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ti
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vablex%
Or
igi
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ry: uncoll
ect
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efor
** doubtf
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De
bit
:Pre
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sh b.I
NCOMEMe
thod ADA+( -)"
someadj
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al
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igi
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ry:
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:
ADJ
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NGENTRY: De
bit
:Ca s
h wri
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off
,begi
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(
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ome
Cr
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B.EXPENSEMe
thod Adjust
ingEntr
ies
(
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Or
igi
nalEnt
ry: Financ
ialSt
at
eme nt
s
~~~~~~~~~~~~~~~~~~~~
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bit
:_____expe
nse Clos
ingEntri
es
Cr
edi
t:Cash 5.De
pre
cia
ti
on Post
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osingTri
alBa
lanc
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ingEntr
ies
(
Amount
:tot
al
) ADJ
USTI
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ADJ
USTI
NGENTRY: MERCHANDI
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Debit
:Depre
cia
ti
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_____
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bit
:Prepai
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t:Acc
umulat
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Cr
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depre
cia
ti
on-_____ bus
ine
ss?
(
Amount
:unus
edpor
ti
on) FORMULA:(
str
aightl
ine
Kungbumi bilikangisang ** pa
ninda ng
bagay/panindas ahal
agang -Maha l(HighVa l
ue)
P100,a tbi
ne ntamoi t
os amas WHOLESALERvsRETAI
LER -Konti( Smallqua
nti
ty)
ma halnaha l
a ga(hal
imba wa -Magka kaiba(Hete
roge
nous
)
P150),ikawa yma s
asabing WHOLESALER=s il
ayun g
engageds aMe r
chandis
ing bumibil
ing"ma r
amihan"gali
ng Exa
mpl
e:
business. sasuppl
iers
/manufac
ture
rs.Na Car
si
yangnagbebentanamans a
Insi
mplewor
ds,BUYand mgas mallr
eta
ile
rs Angi bapangpagkakaibang
SELL. dala
wa ngsyst
emsnai to
(BUYlow=>SELLhigh) RETAILER=s i
lanamanyung (Per
iodicatPer
petual
)a ymas
bumibi
liga
li
ngs awhol
esal
ers
. pag-uusapa
nnati
npa gdati
ngsa
Note
:Kunganoangbi
nil
imo, Nasiya
ngna gbe
bent
asamga Journalent
ri
es.
si
yadinda
pata
ngbine
ntamo. cus
tomers
**
Exampl
e. #Summary
Tel
a,bi
nent
amodinasTe
la. Suppl
ie
rs/
Manuf
act
ure
rs=> TRADEDISCOUNTSvs
Damit
,bine
ntamodi
nasDamit Wholes
ale
r=>Reta
il
er=> CASHDISCOUNTS
Cust
omers
Per
opa gbumilikangTELA I
'msurenaalammoang
par
agupit
in/t
ahii
nupang Exampl
e: s
ali
ta
ng" di
scount
"
magingDAMI T,itoayHINDI Manufa
ctur
ingCompani
es=>
nama s
asabi
ngme rcha
ndi
sing. St
all
sinBaclar
an=>Sar
i-s
ari Pagbumilikanggoodssa
st
ore=>Customer
s hal
agangP100,atnagba
yadka
Angt awagnadi yana y la
ngngP98,ma gkanoangna-
"MANUFACTURI NG"dahil ** dis
countmo?
ma y"proces
sing"na ng
nangyarikungsa anangTELA I
NVENTORYSYSTEM 100-98=2.
aynagingDAMI Tba goi
bent
a.
1.Pe
riodicInventorySyst
em P2a
ngdi
scount
.
I
sangha
li
mbawadina
y 2.Pe
rpetualInventorySys
tem
KAHOY,nanagi
ngLAMESA. Soangdis
countpa
laayang
(
etc
) Bytheway,s
aAccount
ing,a
ng hal
agang"iba
bawas"s
adapat
t
awagsapani
ndaa
yGoodsor mobayara
n.
** "I
NVENTORY"
Angda patmongbayarana
y
Le
t'
sgoba
cks
a 1.PERI
ODI
Cinve
ntor
ysys
tem P100.
MERCHANDISI
NG. Dahilnakadis
countkangP2,
Inve
ntorysys
tempa r
asamga angbabayara
nmona l
angay
BUYER=bumibi
li pani
ndang P98.
SELLER=na
gbebent
a -Mura(LowVa lue)
-Ma r
amihan(Largequant
it
y) *
Pwedekangt
awa
gingBUYER -Pare-
pare
ho(Homoge nous)
atSELLER. Anobaangmgakl
aseng
Exampl
e: di
scount
s?
BUYERkakungika
wa ng Candi
es
bumi
bil
iga
li
ngsa"s
uppli
er" Ans
.
mo. 2.PERPETUALi
nve
ntor
y
syst
em 1.TRADEdi s
count
SELLERkana ma
nkungikaw Nakakakuhakang"TRADE
aynagbe
bent
asaiyongmg
a I
nve
ntor
ysys
tempa
ras
amga dis
count"kapag
"cus
tomer
s".
-mar
amika
ngbi
nibi
li(
bul
k * May1,Bumilikanggoodswit
h
or
der
s) an"i
nvoi
ceprice"ofP100.
Per
okel
anbanaka
kakuhang Cre
ditt
erm:2/10n/30
-a
d di
ti
ona
ldis
cou
ntsf
orb
eing ca
shdi
scount
?
a"member" Ma y11(aft
er10days
),
Ans. nagbayadkana.
-"
sal
e"(
yungma
dal
asmong Pagnakaba
yadkangma aga P100-2=P98( yannala
ng
wit
hinthe"di
scountpe
riod"
!!! babayar
an).
na
kiki
tas
aSM )
Ati
ngp a
g-us
apanang"dis
count Note
:pwedekadi
nmagbaya
d
NOTE:Ang" TRADEdisc
ount" pe
riod"(a
t"cr
edi
tter
m" ) be
tweenMay1-Ma y11)
ayhi
ndini
re-
recor
dsaj
ourna
l.
CREDI
TTERM:2/
10n/
30 *
Exampl
e:
Lis
tPri
ce:P120 2=discountr
ate(
%) PAANOkungwa
laka
ngp
era
ng
Less
:TradeDis
countP20 10=DISCOUNTPERI OD pamba
yad?
=Invoi
cePri
ceP100 (da
ys)
Ans.
Yung"i
nvoi
c epr
ice
"langna n=net Pwe dekapangmagbaya
d
P100a
nga t
ingni
re-r
ecor
d. 30=dea
dli
ne(
maxi
mumda
ys) hanggangMa y31(de
adli
ne)
.
Oka
y? Perobabaya
ranmonangbuo
ANONGme
ani
ngni
yan? angP100.
2.CASHdi scount
Nakakakuhakang" CASH * Ihopena
sunda
nangkwe
nto.
dis
count"kapag
Ma bi
bigyankang"2%"
-maagakangnagba
yad(
ear
ly dis
c o
unt,pagnagba
ya dkas
a
**
or"
promptpayment
") 10thday(ormasma agapa)
TAKENOTEt
hef
oll
owi
ng:
-PURCHASEDISCOUNT( i
to Ha
limbawa.
angt
awags
a"poi
ntofvi
ew"ni Maybabaya
ranka
ngP100.
Lis
tpric
e
buye
r) -Tradedis
count
I
nth
iscas
e,baba
wasanngP2
=INVOI CEPRICE
-SALESDISCOUNT( yan a
ngbaba
yaranmo.(
2%ofP100)
nama
nangtawags
a"pointof Sal
es
vi
ew"nis
ell
er) P100-P2(
cas
hdi
scount
)=P98.
-Sal
esre
turnsa
nda
ll
owa
nce
s
-Sal
esdi
scount
s
NOTE:Ya
nnamanaynir
e- P98n
ala
nga
ngba
baya
ran.
=NETSALES
r
ecor
dsaa
ti
ngj
ourna
l.
Dahi
lnagba
yadkangma
aga
,
Beginninginve
ntory
* l
umii
tangbina
yar
anmo.
+Pur chas
es
-Purchaseret
urnsand
CASHDI SCOUNT=Purchas
e Baki
tnasa
binat
ingnagbaya
d
al
lowa nces
di
scount(
ifBUYER) ngma a
ga??
-Purchasedis
counts
CASHDI SCOUNT=Sa l
es Dahila
ngdeadl
ineaysa30t
h
+Fre i
ghtin
di
scount(
ifSELLER) daypa.
=COSTOFGOODS
AVAI LABLEFORSALE
(
ii
salanga
ngCASH *
-Endinginventor
y
DISCOUNT,PURCHASE =COSTOFGOODSSOLD( or
DISCOUNT,atSALES La
gya
nna
ti
nngDATES.
COSTOFSALES)
DISCOUNT)
Nets al
e s Debit
:Ca s
h/Ac c
ount
sPayabl
e 3.Pa
rti
alc
oll
ect
ion
-Cos tofgoodss ol
d( orCostof Credi
t:Purcha
sere
tur
nsa
n d
sal
es) al
lowances De
bit
:Cash
=GROSSPROFI T Cr
edi
t:Ac
count
sre
cei
vabl
e
+Ot heri nc
ome 4.Pa
rti
alpa
yme
nt
=TOTALI NCOME 4.Ful
lcol
le
cti
on
-Distributi
oncost(orsell
ing De
bit
:Account
spa
yabl
e
expense s
) Cr
edi
t:Ca
sh De
bit
:Cash
-Ge neralandadmi ni
stra
ti
v e Cr
edi
t:Ac
count
sre
cei
vabl
e
expense 5.Fu
llpa
yme
nt
-Othe rexpense
s Or
-Financ ecost(
intere
stexpense
) De
bit
:Account
spa
yabl
e
=INCOMEBEFORETAX Cr
edi
t:Ca
sh De
bit
:Cash
-Tax De
bit
:Sal
esdis
count
=NETI NCOME(orNET Or Cr
edi
t:Ac
countsr
ece
iva
ble
LOSS)
De
bit
:Ac c
ount
spa
yable ~~~~~~~~~~~~~~~~~~~~~~~~
Cr
edi
t:Cash ~
MERCHANDI
SINGPART12 Cr
edi
t:Purc
has
edi
scount
"PERPETUAL"INVENTORY
6.Addit
iona
linve
stme
ntof SYSTEM (BUYER'
Spointof
PRO-
FORMAENTRI
ES" mercha
ndise vie
w)

A."PERIODICI
NVENTORY" De
bit
:Purc
hases 1.I
nit
ia
linves
tme
ntof
SYSTEM Cr
edi
t:Owner
'scapi
ta
l merc
handis
e
B."PERPETUAL
INVENTORY"SYSTEM 7.Wi
thdr
awa
lofme
rcha
ndi
se De
bit
:Mercha
ndis
einve
ntor
y
Cr
edi
t:Owner
'sc
apit
al
-BUYER'Spoi
ntofvie
w De
bit
:Owne r
'sdr
awi
ng
-SELLER'
Spointofvi
ew Cr
edi
t:Pur
chases 2.Pur
cha
seofme
rcha
ndi
se

** * De
bit
:Mercha
ndi
seinvent
ory
Cr
edi
t:Ca
sh/AccountsPa
yable
#START PERIODI
CINVENTORY"
SYSTEM (
SELLER'
Spoi
ntof 3.Ret
urnsa
nda l
lowanc
es
"PERI
ODICINVENTORY" vi
ew) (de
fec
ti
veme r
chandi
se)
SYSTEM (
BUYER'Spoi
ntof
vie
w) 1.Sa
leofme
rcha
ndi
se De
bit
:Cas
h/Ac c
ount
sPayable
Cr
edi
t:Mer
cha
ndisei
nve
ntory
1.I
nit
ia
linves
tme
ntof Debit:Cash/Ac
count
s
merc
handis
e r
eceiva bl
e 4.Pa
rti
alpa
yme
nt
Credit:Sal
es
De
bit
:Mercha
ndis
einve
ntor
y De
bit
:Account
spa
yabl
e
Cr
edi
t:Owner
'sc
apit
al 2.Ret
urnsa
nda l
lowanc
es Cr
edi
t:Ca
sh
(de
fec
ti
veme r
chandi
se)
2.Pur
cha
seofme
rcha
ndi
se 5.Ful
lpa
yme
nt
Debit:Salesr
etur
nsand
De
bit
:Pur
cha
ses al
lowa nces De
bit
:Account
spa
yabl
e
Cr
edi
t:Ca
sh/Account
sPa
yabl
e Credit:Cash/Account
s Cr
edi
t:Ca
sh
r
eceiva bl
e
3.Ret
urnsa
nda l
lowanc
es Or
(de
fec
ti
veme r
chandi
se)
De
bit
:Accountsp
ayabl
e r
ece
iva
ble OR
Cr
edi
t:Ca
sh
Cr
edi
t:Mercha
ndis
einve
ntor
y No2nde
ntr
y Debit:Account
sre
cei
vabl
e(i
f
pur
c hasei
sma def
orCASH)
6.Addit
iona
linve
stme
ntof 3.Pa
rti
alc
oll
ect
ion Credit:Ca
sh
mercha
ndise
De
bit
:Cash **
De
bit
:Mercha
ndis
einve
ntor
y Cr
edi
t:Ac
count
sre
cei
vabl
e
Cr
edi
t:Owner
'sc
apit
al SELLER'
Spoi
nto
fvi
ew
4.Fu
llc
oll
ect
ion
7.Wi
thdr
awa
lofme
rcha
ndi
se 1.FOBSHI
PPI
NGPOI
NT,
De
bit
:Cash COLLECT
De
bit
:Owner'
sdra
wing Cr
edi
t:Ac
count
sre
cei
vabl
e
Cr
edi
t:Me
rchandi
sei
nvent
ory "
Noe
ntr
y"
Or
* 2.FOBDESTI
NATI
ON,
De
bit
:Cash PREPAI
D
"PERPETUAL"INVENTORY De
bit
:Sal
esdis
count
SYSTEM (SELLER'
Spoi
ntof Cr
edi
t:Ac
countsr
ece
iva
ble De
bit
:Fre
ightout
vie
w) Cr
edi
t:Ca
sh
~~~~~~~~~~~~~~~~~~~~~~~~
1.Sa
leofme
rcha
ndi
se ~ 3.FOBSHI
PPI
NGPOI
NT,
PREPAI
D
Debi
t:Cash/Ac
count
s #Ne
wTopi
c
r
ecei
va bl
e De
bit
:Account
sre
cei
vabl
e
Cre
dit:Sal
es "
FREI
GHT"(
Per
iodi
csys
tem) Cr
edi
t:Ca
sh

De
bit
:Cos
tofgoodssol
d BUYER'
Spoi
ntofvi
ew 4.FOBDESTI
NATI
ON,
Cr
edi
t:Me
rcha
ndisei
nvent
ory COLLECT
1.FOBSHI
PPI
NGPOI
NT,
2.Ret
urna
ndal
lowance
s COLLECT De
bit
:Fre
ightout
(de
fec
ti
vemer
chandi
se) Cr
edi
t:Account
sre
cei
vabl
e
De
bit
:Fre
ighti
n
RETURNS Cr
edi
t:Ca
sh OR

1stentry 2.FOBDESTI
NATI
ON, Debit
:Fre
ightout
De b
it:Salesr
etur
nsand PREPAI
D Credi
t:Accountspa
yabl
e(i
f
al
lowa nces sa
leismadef orCASH)
Credit:Cash/Account
s "
Noe
ntr
y"
re
c e
iva bl
e ~~~~~~~~~~~~~~~~~~~~~~~~
3.FOBSHI
PPI
NGPOI
NT, ~
2ndentr
y PREPAI
D
Debit
:Me r
c ha
ndisei
nvent
ory "
FREI
GHT"(
Per
pet
uals
yst
em)
Credi
t:Costofgoodssol
d De
bit
:Fre
ightin
Cr
edi
t:Account
spa
yabl
e BUYER'
Spoi
ntofvi
ew
ALLOWANCES
4.FOBDESTI
NATI
ON, 1.FOBSHI
PPI
NGPOI
NT,
1s
te ntry COLLECT COLLECT
Debit:Sale
sret
urnsand
al
lowa nces De
bit
:Account
spa
yabl
e De
bit
:Mercha
ndi
sei
nve
ntor
y
Credit:Cash/Account
s Cr
edi
t:Ca
sh Cr
edi
t:Ca
sh
2.FOBDESTI
NATI
ON, Debit
:Fre
ightout -s
iBUYERdi
nangna
gba
yad
PREPAI
D Credi
t:Accountspa
yabl
e(i
f
sa
leismadef orCASH) COMBO2
"
Noe
ntr
y" FOBde s
ti
nat
ion,Prepa
id
** -siSELLERa nd"dapa
t"
3.FOBSHI
PPI
NGPOI
NT, magbayad
PREPAI
D NORMALBALANCES: -siSELLERdi nangnagba
yad

De
bit
:Mercha
ndiseinve
ntor
y DEBIT: COMBO3
Cr
edi
t:Ac
countspayabl
e -Merchandi
sei
nve
ntor
y FOBs hippi
ngpoi
nt,Pr
epai
d
-Purc
hases -siBUYERa ng"
dapat
"
4.FOBDESTI
NATI
ON, -Fre
ightin ma gbayad
COLLECT -Fre
ightout -pe r
os iSELLERmunaa ng
nagbaya d
De
bit
:Account
spa
yabl
e (c
ont
raaccount
s)
Cr
edi
t:Ca
sh -Sal
esre
turnsanda
ll
owa
nce
s COMBO4
-Sal
esdi
scount FOBde st
ina
tion,Coll
ect
OR -siSELLERa nd"da
pat"
* magbayad
Debi
t:Account
sre
cei
vabl
e(i
f -perosiBUYERa ng
pur
chasei
sma def
orCASH) CREDIT: pi
nagbayad
Cre
dit:Ca
sh -Sa
les
**
* (c
ontr
aaccount
s)
-Purc
haseret
urnsa
nd #Sa
mpl
eSTORY
SELLER'
Spoi
nto
fvi
ew al
lowanc
es
-Purc
hasedis
count Nagka
saba
ytayosaJ
EEP.Ang
1.FOBSHI
PPI
NGPOI
NT, pa
ma s
aheayP9.
COLLECT
MERCHANDI
SING13 Si
nongdapatma
gba
yadng
"
Noe
ntr
y" pa
ma s
aheko?
EdiAKO.
2.FOBDESTI
NATI
ON,
PREPAI
D FREIGHT(Transpor
tat
ionc
ost
), Si
nongdapa
tmagba
yadng
si
nongmagba
ba yad?
?? pa
ma s
ahemo?
De
bit
:Fre
ightout EdiIKAW.
Cr
edi
t:Ca
sh *
*Yanangc onc
eptpag"
FOB
3.FOBSHI
PPI
NGPOI
NT, -FOB"
SHIPPI
NGPOINT" Shi
ppingpoint
"at"FOB
PREPAI
D -FOB"
DESTINATI
ON" Des
tinat
ion"

De
bit
:Account
sre
cei
vabl
e -"
COLLECT" Kungsi
noang"
dapa
t"
Cr
edi
t:Ca
sh -"
PREPAI
D" magba
yad?
?

4.FOBDESTI
NATI
ON, ** **
COLLECT
COMBO1 NGAYON,
De
bit
:Fre
ightout
Cr
edi
t:Account
sre
cei
vabl
e FOBs hi
ppingpoi
nt,Col
lec
t Kumuhaa
kongP9sabul
sako
-siBUYERa ng"
dapat" pa
rai
baya
dsadr
ive
r.
OR magbayad
KumuhakadinP9sabul
samo Nagkaut
angkanamansa
ken Ce
bupa
rama
tangga
pniBuye
r.
pa
rai
bayadsadri
ver
. ngayonnaP9dahi
lsapa
masahe
.
Angusapa
n,siSELLERang
It
onaa ng"ACTUAL"na Imbisnabayar
ankongbuo "da
pat
"ma gba
yadngpamasa
he
pagba
ba ya
dnat
inngpa
masa
he yungutangko,i
baba
wasnal
ang naP9(FOBDESTI NATION).
sadri
ver. dunyungP9.
TapossiSELLERdint
al
aga
*Ya
nnamanconc
eptpag Kayamagi
gingP82nal
angang angnagla
basngpe
rapar
a
COLLECTatPREPAID. i
babay
adkos a
yo(91-
9=82) bayar
anyungP9napamasa
he.
(PREPAID)
Kungsi
noangt
ala
gang **
na
glaba
sngper
apambaya
dsa *
dr
ive
r. #Goi
ngBa
ck
COMBO3
** SELLER:Mani
la FOBs hippi
ngpoi
nt,Pr
epai
d
BUYER:Cebu -siBUYERa ng"
dapat
"
#Ne
wSCENARI
O ma gbayad
Inve
ntor
y:P100 -pe r
os iSELLERmunaa ng
PAANOkungi
nabonoha
nko Frei
ght(
tra
nspor
tat
ionc
ost
):P9 nagbaya d
munaa
ngpama
sahemo?
COMBO1 Fr
omMa ni
la
,ipapadal
ani
Si
nong"da
pat
"magba
yadng Se
llera
nginventorypapunt
ang
pa
ma s
ahemo? FOBs hi
ppingpoint
,Colle
c t CebuparamatanggapniBuyer
.
Ans.I
KAW par
in. -siBUYERa ng"dapa
t"
magbayad Angusapa
n,siBUYERang
Per
osinongnagl
aba
sngper
a -siBUYERdi na
ngna gbayad "da
pat
"ma gba
yadngpa
masahe
pa
rama gbaya
dsadri
ver
? naP9(FOBSHI PPI
NG
Ans.AKO. Fr
omMa ni
la
,ipapadal
ani POINT).
Se
llera
nginventorypapunt
ang
Dahi
linabonohankoangP9na CebuparamatanggapniBuyer
. Pe r
oina
bonohanmunani
pa
masahemo ,mayobl
iga
ti
on SELLERyungpa ma
sahenaP9
ka
ngba yar
ana ko. Angusapa
n,siBUYERang fromMa nil
a,goi
ngt
oCe bu
"da
pat
"ma gba
yadngpa
masahe (PREPAI D)
* naP9(FOBSHI PPI
NG
POINT). Kayaangma ngyayar
i,
Scena
rioA: magigi
ngP109naa ng
Ma yDATIkangut
angs
ake
nna Taposs
iBUYERdi nta
lagaang makokoletaniSelle
r.
P91. nagl
aba
sngperapar
abayara
n Sa
leofi nventor
y:P100
yungP9napa
ma sa
he. Pl
usf r
eight:P9
Ida
dagdagkoyungba
gong (COLLECT)
uta
ngmos ake
nnaP9dahi
lsa Tot
alofP109
pamasahe
. *
*
Tota
lnautangmonas
ake
nay COMBO2
P100(91+9) FOBde s
ti
nat
ion,Prepa
id COMBO4
-siSELLERa nd"dapa
t" FOBde st
ina
tion,Coll
ect
* magbayad -siSELLERa nd"da
pat"
-siSELLERdi nangnagba
yad magbayad
Sce
nari
oB: -perosiBUYERa ng
Akoangma
yut
angs
ayoDATI Fr
omMa ni
la
,ipa
padal
ani pi
nagbayad
naP91. Se
ll
era
nginvent
orypa
punt
ang
Fr
omMa
nil
a,i
papa
dal
ani
Se
llera
nginv
entorypapunt
ang CYCLE" Curr
entass
etsba?Or
Cebuparama
tanggapniBuyer
. Noncur
rentass
et?
-Ma
yCASHs
ibus
ine
ss
Angusapa
n,siSELLERang Ans
.
"da
pat
"ma gba
yadngpamasa
he -yungCASHaypi
nambi
ling
Cur
renta
sse
tpar
in.
naP9(FOBDESTI NATION). INVENTORY

Per
osiBUYERangpi
nagba
yad -yungINVENTORYa y YOU:"Maynabas
apoakona
ngP9nagpa
mas
ahe bi
nentaa tna
gingACCOUNTS pa
g
(COLLECT)
. RECEI VABLE.( orna
ging -"
12monthsorl
ess
"=>
CASHa gad-kungcashsa
les
) CURRENT
Kay aangma ngyayari
, -"
moretha
n12months
"=>
ma gi
gingP91na langang NONCURRENT
-yungACCOUNTS
babayaranniBuye r. RECEIVABLEayki
nol
ekt
aat
Purchaseofinvent
ory:P100 nagi
ngCASHul
it
. Yes,t
amaka.Pe
royanaynag
Minusyungb i
nayaranni
yang aa
plysat
ina
tawagna
tingNON-
fr
eightnaP9. TRADERECEI VABLES.
*

Ba
lanc
e:P91 *
Ma
yCASHnaul
its
ibus
ine
ss

** #SUMMARY
-yungCASHaypi
nambi
ling
INVENTORY
FOB=Fr
eeOnBoa
rd 12mon
thsorl
ess=CURRENT
-yungINVENTORYa y
FOBShi ppingPoint
:FREEor bi
nentaa tna
gingACCOUNTS (
e xc
eptTRADE
nakali
breangshipper
.Ang RECEI VABLE( orna
ging RECEI VABLESnawithi
nthe
shi
ppera ysise
ll
er.Sise
ll
erang CASHa gad-kungc a
shsal
es) "NORMALOPERATI NG
li
bre. CYCLE" .Kahi
tmor
ethan12
Kay asi"BUYER"a ngdapat monthspa,CURRENTpa r
in)
-yungACCOUNTS
ma gbaya
dngf rei
ght. RECEIVABLEayki
nol
ekt
aat
nagi
ngCASHul
it
. Mor
etha
n12mont
hs=
FOBDe sti
nati
on:FREEor NONCURRENT
naka l
ibrekun gsi
noa ng *
ma kakatanggapng **
goods /
inve nt
orysade s
ti
nat
ion. YOU:"
Par
angi
nul
itl
ang?
"
Angma ka kat
angga paysi DEFI
NITI
ONOFTERMS
Buye rka yasi
yaan g
ma kakalibresafr
e i
ght. MERCHANDI
SE
Si" SELLER"a ngda pat I
NVENTORY=pani
nda
YES,t
amaka! Kayasi
ya
ma gbayadngf r
eight. t
ina
wagnacyc
le.Pa
uli
t-ul
it PURCHASES=a cc
ountna
Coll
ect
:SiBUYERang l
ang. gi
nagamitpa
gbumi
likang
nagl
aba
sngpera
ngpamba
yad. pani
nda.
*
Pr
epai
d:SiSELLERang PURCHASE" RETURNS"
na
gla
basngpera
ngpa
mba ya
d. Q.Kunga ngNORMAL AND" ALLOWANCES"=
OPERATI NGCYCLEngi s
ang acc
ountnagi
naga
mitpag
businessay" 5YEARS,a nong "de
fec
tive
"angnabi
limo.
MERCHANDI
SING14 ma gigi
ngc l
ass
ifi
cat
ionng
RECEI VABLESs aa t
ing (
RETURNS-def
ect
iveormay
Ba l
ances heet(orSt
atementof si
raa
ngna
bil
imokayabi
nal
ik
"
NORMALOPERATI
NG FinancialPosit
ion)?
? mo)
(ALLOWANCES-de fec
ti
veor FREI GHTOUT=a c
c ountna Jul
y11.Set
tl
edtheac
count
ma ysir
aangnabil
imoPERO ginaga mi
tparasa wit
hLornainful
l.
hindimobina
lik.Bina
wasan "t
rans por
tat
ioncost
"ngbi nent
a
nalangangba
ba ya
ranmo) mo( k ungsaanika
wnas ell
er *
ang" dapat
"ma gbayadnito)
PURCHASEDI SCOUNT= August6.Soldva ri
ousnurs
ery
accountnagi
nagamitpag bookstoVi c
tor,BAGUI O
nagbayadkangma agawit
hin MERCHANDI
SING15 CITYf or20,000.Terms:COD.
thedisc
ountper
iod. Frei
ghttermswe reFOB
(seeTUTORI ALSPART11 BAGUI O,PREPAI D700.
aboutsadis
countperi
od)
TACBooks tor
e"wasfor
medon August7.Vict
orrece
ive
da300
FREI GHTI N=a ccountna June1,2019.I
tisl
oca
tedin cas
hrefundduetothere
tur
nof
ginaga mi
tparasa Ma ni
la
. somedefect
ivebooks
.
"t
rans por
tat
ioncost
"ngbi ni
li
mo( kungs aa
ni ka
wnabuye r June1.Ros einveste
dthe August9.SoldP5 0,
000wort
h
ang" dapat
"ma gbayadnito) foll
owing: ofbookstoFe l
ix,DAVAO
Ca sh100,000 CITY.Te rms:50%down
* Me rchandis
e(books)125,
000 payment,bal
ance2/10,n/
30.
Storeequipme nt25,
000 Frei
ghttermswe reFOB
SALES=a c
countnagi
naga
mit Storefurnit
ureandfixt
ure
s MANI LA,PREPAI D1,800
pagnagbent
akanggoodssa 50,000
cust
omersmo. August19.Fe
li
xse
ttl
edi
ts
June4.Pur c
hase
d" books"f
rom ac
countinful
l.
COSTOFSALESorCOSTOF Edna ,QUEZONCI TYf or
GOODSSOLD=a ccountna 80,000less5.Ter
ms :2/5n/
eom; August25.10,000wor t
hof
gina
ga mitpara"c
ost"ng Freightof350wasont erms var
iousperi
odic a
lsweresol
dto
nabentamonggoodss a FOBQUEZONCI TY, Oli
ve,PASI GCI TY.Te r
ms:
cust
ome rsmo. PREPAI D. 2/
10,n/30.Freightt
ermswere
Pags i
nabing"cost
",it
oa ywala FOBMANI LA,PREPAI D
pangtubo' ormar
kup. June6.Issue
dac he
ckfor P500.
20,000inpart
ia
lset
tl
ementof
SALESRETURNSAND theaccountwit
hEdna. August29.Pur
chase
da ddi
ti
ona
l
ALLOWANCES=a ccountna booksfr
omBr yan45,
000.
gi
naga
mitpa
g"de
fec
ti
ve"a ng June9Set
tl
edt
hea
ccountwi
th Terms:2/
10n/30.Fre
ightt
erms
bi
nent
amo. Ednainf
ull
. wereFOBMANI LA,
PREPAI D500.
(RETURNS-de fe
cti
veorma
y *
sir
aangbine
ntamokaya
binal
iks
ayo) July2.Purchas
ed" s
tor
e
suppli
es"fr
omLor na,
(ALLOWANCES-de f
ect
iveor ANTI POLOCI TYfor10,000
ma ysir
aangbinent
amoPERO less10givi
nga20%down
hindibi
nali
ksayo.Binawasa
n payme nt
,bala
nceont e
rms2/10,
nalangangmakokole
ktamo) n/30.Frei
ghtof500wa son
termsFOBMANI LA,
SALESDI SCOUNT=a c
count COLLECT
nagina
gamitpa
gnaka kol
ekta
kangma a
gawithi
nthediscount J
uly4.Rece
ivedacreditmemo
peri
od. f
romLornafor1,
000f oran
(se
eTUTORI ALSPART11 a
llowa
ncegrant
edforde f
ect
ive
abouts
adisc
ountper
iod) s
uppli
essol
d.