So yung five major accounts:
-
ASSET
LIABILITY
EQUITY
EXPENSES
INCOME
So lahat ng transaction na nirerecord ang ginagamit eh yung DOUBLE ENTRY SYSTEM, ang ibig sabihin
lang nito kung may debit dapat may equivalent amount sa credit and vise versa
DEBIT – eto yung narereceive mo
CREDIIT – eto naman yung binibigay mo
So pagdating sa NORMAL BALANCE ng mga accounts:
DEBIT
CREDIT
-
ASSET
EXPENSES
LIABILITY
EQUITY
INCOME
Rules of DEBITS and CREDITS
- To debit an account with a normal debit balance means to increase that account. To credit it
means to decrease it
 So for example, sa business may nagbayad sayo na customer so since nag increase yung
asset mo IDEDEBIT mo siya ngayon pero kapag ikaw naman yung nagbayad since
nabawasan/nag decrease yung asset mo ICCREDIT mo siya ngayon
-
To credit an account with a normal credit balance means to increase that account. To debit it
means to decrease it
 Example naman dito, umutang ka sa banko ngayon so since nadagdagan utang mo tsaka
yung LIABILITY eh may normal balance na CREDIT kapag nirecord mo siya ngayon
mapupunta siya sa CREDIT SIDE, kapag naman nabayaran na yung utang (nabawasan na)
mapupunta siya ngayon sa DEBIT SIDE
JOURNALIZING
Sa pag journalize naman, kailangan mo kasi munang i-analyze yung transaction kasi hindi lahat
kailangang irecord example nun eh yung mga non-accountable events.
Dec 1 Millan invested P200,000 in the firm.
Date
Description
Post Ref.
Debit
Dec 1
Cash
200,000
Millan, Capital
 Yung mga accounts na affected: CASH (asset), MILLAN CAPITAL, (equity)
 Nag increase yung asset so debit side
 Nag increase din yung equity so credit side
Credit
200,000
Dec 2 Paid rent covering 2 months (December to January) to Recoletos Realty, P8,000.
Date
Description
Post Ref.
Debit
Credit
Prepaid Rent
Dec 2
8000
Cash
8000
 Dito naman, since advance payment, irerecord mo siya as Prepaid Rent (sakan siya marerecord
na RENT EXPENSE kapag na incurred na); asset is increased through debit
 Naglabas ka ng pera (nabawasan asset mo); asset is decreased through credit
Dec 2 Purchased supplies on account, P7,200.
Date
Description
Post Ref.
Supplies
Dec 2
Accounts Payable
 Accounts affected: supplies (asset), a/p (liability)
 Supplies is increased (DEBIT) and a/p is increased (CREDIT)
Debit
7,200
Credit
7,200
Dec. 3 Surveyed xerox machine with price not exceeding P60,000
Non accountable events so no need irecord
Dec 5 Acquired 3 desktop sets, P75,000 paying P37,000 down with the balance due in 30 days
Date
Description
Post Ref.
Debit
Credit
Equipment
Dec 5
75,000
Cash
37,000
Accounts Payble
38,000
 Accounts affected: equipment (asset), cash (asset), a/p (liability)
 Nag acquire ka ng equipment so nadagdagan asset mo; nag partial payment ka rin so nabawasan
asset mo; may natira pa so nadagdagan yung a/p mo
 Asset in increased through debit and decreased through credit; liability is increased through
credit
Dec 8 Paid P7,200 on account for supplies purchased.
Date
Description
Post Ref.
Debit
Credit
Accounts Payable
Dec 8
7,200
Cash
7,200
 Accounts affected: a/p (liability), cash (asset)
 And since nagsettle ka ng payment; liability is decreased through debit and asset is decreased
through credit
Dec 10 Performed tax consultation services on account, P30,000.
Date
Description
Post Ref.
Debit
Account Receivable
Dec 10
30,000
Service Revenue
 Accounts affected: a/r (asset), service revenue (income)
 Asset is increased through debit and income is increased through credit
Dec 14 Performed consulting services for cash, P20,000.
Date
Description
Post Ref.
Debit
Cash
Dec 14
20,000
Service Revenue
 Affected accounts: cash (asset), income (service revenue)
 Asset is increased through debit and income is increased through credit
Dec. 15 Paid assistant's salaries for two weeks, P6,000.
Date
Description
Post Ref.
Debit
Salaries Expense
Dec 2
6,000
Cash
 Accounts affected: salaries expense (expense), cash (asset)
 Expense is increased through debit and asset is decreased through credit
Dec 17 Hired a part-time assistant, with agreed salary of P3,500 per month.
NON-ACCOUNTABLE EVENTS
Dec 18 Collected P5,000 cash from services performed on December 10
Date
Description
Post Ref.
Cash
Dec 18
Account Receivable
 Accounts affected: cash (asset), a/r (asset)
 Asset is increased through debit and is decreased through credit
Debit
5,000
Dec 25 Millan received electricity bill, P2,500
Date
Description
Post Ref.
Debit
Utilities Expense
Dec 25
2,500
Utilities Payable
 Accounts affected: utilities expense (expense), utilities payable (liability)
 Expense is increased through debit and liability is increased through credit
Credit
30,000
Credit
20,000
Credit
6,000
Credit
5,000
Credit
2,500
Dec 31 Millan withdrew P12,000 from the business.
Date
Description
Post Ref.
Debit
Credit
Dec 31
Millan, withdrawal
12,000
Cash
12,000
 Accounts affected: millan withdrawal (equity), cash (asset)
 Millan drawing (equity) is increased through debit and asset is decreased through credit
 Sa drawing/withdrawal kaya ang normal balance niya ay debit kasi consider siya as contra
account ng equity.