Entrepreneurship

(Quarter 2)
Assets 3. Unearned Revenue
Normal Balance of Assets: DEBIT These represent cash collected by the business
in advance for a service or good that is yet to
1. Cash be rendered or delivered.
This includes cash-on-hand invested by the owner
and received from the customers.
2. Accounts Receivable (A/R)
This represents the amount of money owed by the Owner’s Equity
customers to the business. Normal Balance of Owner’s Equity: CREDIT

1. Capital
The underline is used for the name of the owner of
3. Office supplies
the business.
These are small purchases that are needed for you
Example: Dejumo, Capital. It is increased by
and your employees to be able to do their jobs.
additional contribution of the owner or income
4. Prepaid Rent
from the business and decreased by withdrawals of
This refers to an advance payment made by the
the owner or loss of the business.
business to cover future rental payments.
2. Drawing
5. Equipment/Machineries
It is used when withdrawal is made by the owner.
This represents manual or automated machines
used in business.
Examples: photocopying equipment, computers,
laptops, ring binders, laminating machines, Income
delivery vehicles, vans, among others. Normal Balance of Income: CREDIT
6. Furniture and Fixtures These represent assets
such as tables, chairs, filing cabinets, and display 1. Service Revenue
racks. This is the earnings made by any business that is
into rendering services. The term “revenue” is used
Expenses and not “income” to distinguish that such earning
Normal Balance of expenses: DEBIT arises from the main line of operations of the
business.
1. Utilities Expense
This refers to costs associated with the usage of
electricity, water, and communication for a
particular accounting period.
2. Salaries Expense
This refers to costs incurred associated with the
services rendered normally by permanent and full-
time employees who are paid on a regular monthly
basis.

3. Miscellaneous Expense

4. Telecommunication Expense

Liabilities
Normal Balance of Liabilities: CREDIT

1. Accounts Payable
These represent the amount of money owed by
the business to creditors or suppliers.

2. Notes Payable
These represent the amount of money owed by
the business to the supplier or creditor
evidenced by a promissory note.