ELEMENTS OF

ACCOUNTING
ASSETS

LIABILITIES
OWNER’S EQUITY
 ASSETS

 Economic resources
 Things of value owned by the
business
 CURRENT ASSETS

 Cash
 Accounts Receivable
 Notes Receivable
 Supplies
 Merchandise Inventory
 Prepaid Expenses
(Prepaid Rent, Prepaid Insurance, etc.)
NON- CURRENT ASSETS

 Land
 Building
 Furniture and Fixtures
 Equipment

 Accumulated Depreciation*
 
 How can the assets
describe the financial
status of a
person/business?
CONCEPT ATTAINMENT

CURRENT
VS.
NON-CURRENT ASSETS
CONCEPT ATTAINMENT

CASH
VS.
ACCOUNTS RECEIVABLE
CONCEPT ATTAINMENT

ACCOUNTS RECEIVABLE
VS.
NOTES RECEIVABLE
 Analyzing Business
Transactions

• Dr. Maria Tan, a dentist, invested
₱350,000 cash to start her own
dental clinic. (1)

• Purchased an office equipment

worth P50,000 using cash. (2)
 Analyzing Business
Transactions

1. Returned dental supplies worth
₱1,640 purchased. (1)

2. Rendered services to some patients

on account, ₱9,500. (1)
 Analyzing Business
Transactions

3. Returned dental supplies worth
₱1,640 purchased. (1)

4. Rendered services receiving cash,

₱9,500. (1)
 Analyzing Business
Transactions

5-6. Received cash payment from
customer’s previous account. (2)

7. Invested office equipment worth

P70,000. (1)
 Analyzing Business
Transactions

8-10. Purchased products and
furniture and fixtures using cash. (3)
Page 14
_____1. Accounts Payable
_____2. Accounts Receivable
_____3. Building
_____4. Cash
_____5. Equipment
_____6. Furniture and Fixtures

Page 15
_____ 7. Fonda, Capital
_____ 8. Fonda, Drawing
_____ 9. Interest Payable
_____10. Land
_____11. Merchandise Inventory
_____12. Mortgage Payable
_____13. Notes Payable

Page 16
_____14. Prepaid Insurance
_____15. Prepaid Rent
_____16. Salaries Payable
_____17. Supplies
_____18. Taxes Payable

Page 17
Assessment
p.95

Page 18
TAKE - AWAYS

Page 19