The Account
The Account
The Account
A L E
DEBIT CREDIT
Increases in Increases in
Assets Liabilities
Expenses Owner’s Capital
Income
Decreases in Decreases in
Liabilities Assets
Owner’s Capital Expenses
Income
LET’S DO IT..
Oct. 1 Rey Fernan Refozar obtained the funds to start the
business by withdrawing P800,000 from his personal savings. He
deposited the money in new bank account that he opened in the
name of the firm, Refozar Accounting Services.
P900,000 = P900,000
EFFECT OF REVENUE AND EXPENSES
Oct. 13 Refozar Accounting Services earned P70,000 of
revenue from charge account clients. These clients are allowed 30
days to pay.
Refozar Accounting Services
Financial Transaction Worksheet
Month of October
P800,000 = P800,000
P100,000 P100,000
P70,000 = P 70,000
P970,000 = P970,000
Oct. 18 Refozar Accounting Services Hired an accounting
staff on October 1 to help in the business. The firm paid P25,000
in salaries for this employee.
Refozar Accounting Services
Financial Transaction Worksheet
Month of October
P800,000 = P800,000
P100,000 P100,000
P70,000 = P 70,000
(P25,000) = (P25,000)
P945,000 = P945,000
END
Prepare for a quiz next meeting