BOOKKEEPING NCIII

NAME: _______________________________________________________________________
Instruction: Classify the following account titles as to Assets, Liabilities and Owner’s Equity. Use “check
mark”.
ACCOUNT TITLE ASSET LIABILITY EQUITY ACCOUNT TITLE ASSET LIABILITY EQUITY
1. Repairs and Maintenance 14. Notes Receivable
2. Cash on Hand 15. Commission Income
3. Unused Office Supplies 16. Unearned Income

4. Postage and Communication 17.Petty Cash Fund

5. Accounts Receivable 18. Kyle Tiu, Drawing
6. Taxes and Licenses 19. Notes Payable (long-term)

7. Professional Income 20. Interest Income

8. Cash in Bank 21. Dental Fees Income
9. Insurance Expense 22. Interest Expense
10. Advances to Employees 23. Miscellaneous Expense

11. Accounts Payable 24. Office Supplies Expense

12. Rent Expense 25. Interest Payable

13. Kyle Tiu, Capital

Instruction: Classify the following asset accounts. On the space provided, write CA, if Current Asset and PE, if
Property and Equipment.
___ 26. Land ___ 30. Store Equipment ___ 34. Advances to Employees
___ 27.Office Equipment ___ 31.Building ___ 35. Prepaid Rent
___ 28. Cash on Hand ___ 32. Accounts Receivable ___ 36. Machinery
___ 29.Furniture & Fixtures ___ 33.Unused Office Supplies ___ 37. Cash in Bank

Instruction: On the space provided, put an X to accounts whose normal balances are debits.
___ 38.Building ___ 42. Utilities Expense ___ 46. Transportation Expense
___ 39.Depreciation Expense ___ 43. Mark Sy, Capital ___ 47. Mark Sy, Drawing
___ 40.Unused Supplies ___ 44.Uncollectible Accounts ___ 48. Unearned Income
___ 41. Notes Receivable ___ 45. Interest Expense ___ 49. Accrued Income

Instruction: On the space provided, put a ✓ to accounts whose normal balances are credit.
___ 50.Interest Income ___ 54. Accounts Receiavble ___ 58. Prepaid Expense
___ 51. Notes Payable ___ 55. Accounts Payable ___ 60. Professional Income
___ 52.Subscription Income ___ 56.Lily Cruz, Drawing ___ 62. Accrued Expense
___ 53. Lily Cruz, Capital ___ 57. Unused Supplies ___ 63. Gas & Oil
Instruction: Indicate whether the normal balance of each of the given account is a Debit or Credit.
___ 64. Notes Receivable ___ 72. Amy Chua, Drawing ___ 80. Supplies Used
___ 65.Taxes and Licenses ___ 73.Prepaid Insurance ___ 81. Office Equipment
___ 66. Cash in Bank ___ 74. Land ___ 82. Salaries & Wages
___ 67. Accounts Payable ___ 75. Notes Payable ___ 83. Rent Expense
___ 68. Amy Chua, Capital ___ 76. Prepaid Rent ___ 84.Unearned Service Income
___ 69.Insurance Expense ___ 77.Interest Expense ___ 85. Interest Receivable
___ 70.Interest Income ___ 78.Professional Income ___ 86. Accrued Income
___ 71.Unused Supplies ___ 79. Utilities Expense ___ 87. Accrued Expense

Instruction: Put a ✓ to accounts which will increase their balances when debited.
___ 88. Accounts Receivable ___ 92. Prepaid Advertising ___ 96. Insurance Expense
___ 89.Commission Income ___ 93. Rent Expense ___ 97. Accounts Payable
___ 90.Furniture & Fixtures ___ 94. Notes Receivable ___ 98. Utilities Expense
___ 91. Kris Tee, Capital ___ 95. Kris Tee, Drawing ___ 99. Machinery

Instruction: Indicate a check mark as to the effect on the balances of the following accounts.
Increased Decreased
Sample: Cash in Bank account was debited ✓
100. Notes Receivable account was debited
101. Accounts Payable account was debited
102. Mary Lee, Capital account was credited
103. Rent Expense account was debited
104. Petty Cash Fund account was debited
105. Accounts Receivable account was debited
106. Mary Lee, Drawing account was debited
107. Accounts Payable account was credited
108. Prepaid Insurance account was credited
109. Insurance Expense account was debited
110. Notes Payable account was debited
111. Accounts Receivable account was credited
112. Cash in Bank account was credited
113. Professional Income account was credited
114. Unearned Service Income was credited
Instruction: Indicate a ✓ on what has been done in each of the account which resulted to have increased or
decreased in its balance.
Debited Credited
Sample: Cash in Bank account was increased by P2,000 ✓
115. Bella Cruz, Capital account increased by P1,500
116. Prepaid Insurance account decreased by P3,000
117. Accounts Receivable account increased by P300
118. Accounts Payable account decreased by P750
119. Cash in Bank account decreased by P8,450
120. Accounts Payable account increased by P10,050
121. Accounts Receivable account decreased by P500
122. Rent Expense account increased by P700
123. Service Income account increased by P5,000
124. Salaries Expense account increased by P5,000
125. Notes Payable account increased by P9,750
126. Notes Receivable account decreased by P450
127. Building account increased by P45,000
128. Unused Supplies account decreased by P2,450
129. Bella Cruz, Drawing account increased by P800

Instruction: Place a ✓ on the appropriate column opposite each given data to correctly describe the effect of
the related account. (The first item is answered for your guide.)
Debit Credit Debit Credit
130. Increase in Revenue ✓ 140. Decrease in Accounts Payable
131. Decrease in Cash 141. Increase in Delivery Equipment
132. Increase in Accounts Receivable 142. Increase in Professional Income
133. Increase in Insurance Expense 143. Decrease in Notes Payable
134. Decrease in Revenue 144. Increase in Rent Expense
135. Increase in Owner’s Equity 145. Increase in Commission Income
136. Increase in Cash 146. Increase in Notes Payable
137. Increase in Drawing 147. Decrease in Delivery Equipment
138. Decrease in Commission Income 148. Decrease in Professional Income
139. Decrease in Accounts Receivable 149. Increase in Accounts Receivable
Instruction: Identify each account according to what Element of Financial Statements, indicate its normal
balance, determine the account where it should be presented, and specify whether it is temporary or
permanent.

Normal Income Statement or Temporary or

Account Titles Elements of FS
Balance Balance Sheet Permanent
1. Accounts Payable
2. Cash
3. Juan, Capital
4. Interest Income
5. Accumulated Depreciation
6. Advertising Expense
7. Accrued Interest Expense
8. Juan, Drawings
9. Equipment
10. Unearned Service Revenue
11. Bad Debts (Doubtful Accounts)
12. Furniture and Fixtures
13. Depreciation Expense
14. Service Revenue
15. Utilities Expense
16. Permits and Licenses
17. Supplies
18. Allowance for Doubtful Accounts
19. Repairs and Maintenance
20. Gain on Sale
21. Deferred Expense
22. Prepaid Insurance Expense
23. Salaries and Wages
24. Accrued Interest Income
25. Land
26. Patent
27. Loss on Fire
28. Miscellaneous Expense
29. Accrued Rent Income
30. Service Vehicle
31. Buildings
32. Professional Fees
33. Commissions
34. Claims and Damages
35. Copyright