BASIC ACCOUNTING

ACCOUNTING IS PART OF YOUR LIFE

1.Budgeting your allowance
2. When you board a public utility vehicle
3. When you pay for food
4. When you buy school supplies
5. When you pay tuition fee
Revenue = fares received by driver
Expenses = gasoline, repairs, boundary
Revenue – Expenses = Net Income
Tuition Fee Income = fees received by school
Operating Expenses= salaries,electricity, water,
supplies,taxes, repair and maintenance
Tuition Fee – Operating Expenses=Net Income
 Assets =Liabilities + Equity

You probably have several gadgets, watch,bag which you

bought for a total amount of P80,000.
These are your assets and this also represents your net
worth. ASSETS = NET WORTH
80,000 = 80,000
If you bought your watch of P10,000 on credit, this
becomes your liability.
ASSETS = LIABILITIES + EQUITY
80,000 = 10.000 + 70,000
 Activity 1

List down your personal properties. Assign a cost

for each one. The total of your assets is also your
net worth unless you have liabilities.
What is business?
An economic unit that engages in buying and
selling of goods or services
Primary reason in putting up a business = profit
 Forms of Business Organization

1. Sole Proprietorship
2. Partnership
3. Corporation
4. Cooperative
Activity 2
List 5 existing businesses, describe its form of organization.
 Types of Business Operations

1. Service business
2. Merchandising or trading
3. Manufacturing
Activity 3
List 5 existing businesses, describe its line of
Business.
 What is Accounting

1. A service activity- provide financial information

2. Language of business-provides vital information to the
readers:how the company is doing, how it stands, where
it is going, what is has financially accomplished.
3. An art of recording, classifying, summarizing
in terms of money,transactions and events and
interpreting the results.