Financial Accounting

and Reporting of
different business
organizations and
types- part 1
( Corporation Accounting )
 A Service Activity

Its main purpose is to provide

quantitative information
ACCOUNTIN Primarily Financial in nature
G
About ECONOMIC ENTITIES

Intended to be useful in making

economic decisions
 ECONOMIC ENTITIES
Forms of Business Organization(BUSORGA)

Single
Partnership Corporation
Proprietorship
 ECONOMIC ENTITIES
Modes of Business Operations (BUSOPERA)

SERVICE MERCHANDISING MANUFACTURING

(TRADING)
 SOLE PROPRIETORSHIP

PARTNERSHIP

ACCOUNTING CORPORATION
FOR -
SERVICE

MERCHANDISING

MANUFACTURING
CORPORATION ACCOUNTING AND LAW
 Artificial Being

Creation of the law

LAW ON
CORPORATION
Have the right of succession
(What is a
Corporation?)
Have the powers, attributes and properties expressly authorized
by law or incident to its existence

Reference: Revised 2019 Corporation Code of the Philippines

 In Sole-proprietorship,
ASSETS=LIABILITIES +
Basic OWNER’S EQUITY
Accounting
Equation In Corporation, ASSETS=
LIABILITIES +
SHAREHOLDERS’
EQUITY
  In Sole-Proprietorship, use Capital account for Investments and
Net Income/Loss.

On the Use  In a Corporation, use Paid In Capital account for Investments and
Retained Earnings account for Net Income/Loss.
of Capital &
Drawing  In a Sole-Proprietorship, use the Drawing accoiunt for temporary
withdrawals.
Accounts
 In a Corporation, the Drawing account in not used, since
shareholders do not enjoy the right of withdrawing cash any time.
 PAID IN CAPITAL

Share Capital

Subscribed Share Capital

ADDITIONAL PAID IN CAPITAL

SHAREHOLDE
Paid in capital in excess of par.

RS’ EQUITY TOTAL CONTRIBUTED CAPITAL

RETAINED EARNINGS

Unappropriated

Appropriated

TOTAL SHAREHOLDERS’ EQUITY