ASSESSMENT

1. Differentiate bookkeeping from accounting.

 (Petroff, 1991) Bookkeeping is concerned with the recording of business data, while
accounting is concerned with the design, interpretation of data, and the preparation of financial
reports. Therefore, accounting is focused on the final financial records, bookkeeping is just a part
of this process. It is where transactions such as income and expenses are being recorded in the
journal or are entered in the database considering most businesses these days are using online
platforms in bookkeeping.

2. Why is accounting the language of business?

 It is because through its financial reports and the accounting reports which is the reason
why accounting is termed as the language of business.

3. Site at least 3 examples of service business, merchandising business and manufacturing business.

 Service businesses include airlines, banks, and computer service.

 Merchandising businesses include retail clothing, grocery stores and bookstores.
 Manufacturing business examples are automotive companies, bakeries, shoemakers
and tailors

4. Have you ever tried running a small business before? Like selling snacks in school or selling
load? How did you record your cash flows?

During our Entrepreneurship in Senior High School this is how we record our cash
flows:

 Start with the Opening Balance.

 Calculate the Cash Coming in (Sources of Cash)
 Determine the Cash Going Out (Uses of Cash)
 Subtract Uses of Cash (Step 3) from your Cash Balance (sum of Steps 1 and 2)
5. If you are to form a business in the future, what would it be and why?
- If I were to form a business I want to build a refreshing business which is Halo-Halo
because I had a background of knowledge of making halo-halo since I experienced working
in that certain business. And, for sure it would serve as my guide to run my business smoothly
and not only I had a background knowledge about that kind of business but based on my
observation it is super demand in the economy since the pandemic is slowly back to normal
and also it is very demand especially for students.

ASSESSMENT

I. Write the normal balances of the

following:
Liabilities CREDIT
Assets DEBIT
Contra-liabilities DEBIT
Contra-Assets CREDIT
Capital CREDIT

Income CREDIT

Expenses DEBIT

II. X those accounts whose normal balances

are debits
6. Duran, Capital
X 1. Building
X 7. Bad Debts Expense
X 2. Depreciation Expense
X 8. Interest Expense
X 3. Office Supplies
X 9. Transformation Equipment
X 4. Notes Receivable
X 10. Duran, Drawing
X 5. Utilities Expense
III. X those accounts whose normal
balances are credits
X 6. Accounts Payable
X 1. Interest Income
7. Diputs, Drawing
X 2. Notes Payable
8. Prepaid Insurance
3. Office Supplies
9. Accounts Receivable
X 4. Service Income
10. Prepaid Rent
X 5. Subscription Income

IV. Types of accounts. Write I if the E 10. Commission Expense

account is INCOME, E if EXPENSE, A if
ASSET, I if LIABILITY.

L 1. Accounts Payable

A 2. Accounts Receivable A 11. Commission Receivable

A 3. Accumulated Depreciation E 12. Depreciation Expense

E 4. Advertising Expense I 13. Dividend Income

A 5. Allowance for doubtful accounts I 14. Interest Income

E 6. Bad Debts Expense A 15. Land

L 7. Bonds Payable E 16. Fuel and Oil Expense

A 8. Building A 17. Furniture and Fixture

A 9. Cash L 18. Mortgage Payable

E 19. Miscellaneous Expense

A 20. Office Equipment

A 21. Prepaid Insurance

A 22. Rent Receivable

I 23. Rent Income

E 24. Repairs and Maintenance

I 25. Service Income

E 26. Salaries Expense

A 27. Machineries

L 28. Unearned Revenues

A 29. Taxes and licenses

A 30. Trading Securities

V. Fill in the blanks (increase or decrease)

We debit to We credit to

increase in Assets decrease in Assets

decrease in Liabilities increase in Liabilities

decrease in Owner’s Equity increase in Owner’s Equity

increase in Drawing decrease in Drawing

decrease in Income increase in Income

increase in Expense decrease in Expense

ASSESSMENT

I. The following entries were made during the first month: Journalize the entries after which you make
a ledger of each account

1. Dee Malas started her own janitorial services agency. She started with a cash

investment of P20000.

2. Dee Malas purchased P3000 worth of cleaning supplies for cash.

3. Part of the cash in the amount of P5000 was used to purchase office equipment valued

at P15000. The rest will be paid at the end of the month.

4. Dee Malas rendered services and received P1000 in cash. She paid P300 salary for crew

and spent P300 for cleaning supplies.

5. Dee Malas rendered another services for a week at the library and received P2000 in

cash and P3000 to be collected at the end of the month. Salaries for crew is P2000 and

used up P1000 for cleaning supplies.

 JOURNALIZING ENTRIES

DATE DESCRIPTION PR DEBIT CREDIT

1 GENERAL
Cash LEDGER 20, 0000

ACCOUNT: Cash Capital, 20, 000

Date 2 Debits Credits

Cleaning Supplies 3,000

1 20, 000 Cash 3,000

2 3 Cash 3, 000 5, 000

Office Equipment 15,000

3 5, 000
Accounts Payable 10,000

4 4 400 CASH 1,000

5 14,000
Service revenues 1, 000

34, 400 8, 000

Salaries & Wages 300

26, 400
Cleaning Supplies 300

CASH 600

5 GENERAL
CASH 2, 000
LEDGER
Service revenues 2, 000
ACCOUNT: Capital
Accounts 3, 000
Date Debitsreceivable
Credits
2, 000
1 Salaries20, 000
&wages
1, 000
20,supplies
Cleaning 000

GENERAL LEDGER

ACCOUNT: Accounts Payable

Date Debits Credits

1 10, 000

10, 000
 GENERAL
LEDGER

ACCOUNT: Office Equipment

Date Debits Credits

3 15, 000

15, 000

GENERAL LEDGER GENERAL LEDGER

ACCOUNT: Supplies ACCOUNT: Revenues

Date Debits Credits Date Debits Credits

2 3, 000 4 1, 000

4 300 5 2, 000

5 1, 000 3, 000

4, 300

II. Mary Dips started her audit firm. The following transpired during the month:

1. Mary invested P50000 in cash

2. The business was registered spending P1200 for taxes and licenses.

3. Acquired printer amounting to P5000.

4. Received electric bill P500.

5. Acquired chairs on account P5000.

6. Collected P30000 for audit services.

7. Billed P10000 for consultancy performed.

8. Incurred transportation expense amounting to P1000.

9. Paid P5000 for chairs purchased on account.

10. Paid electric bill

11. Mary withdrew P2000 for personal use.

JOURNALIZING ENTRIES

DATE DESCRIPTION PR DEBIT CREDIT

1 Cash 50, 0000

Capital, 50, 000

2 Taxes and Licenses 1,200

Cash 1,200

3 Equipment 5, 000

Cash 5, 000

4 Utilities Expense 500

Utilities Payable 500

5 Furniture & Fixtures 5, 000

Accounts Payable 5, 000

6 Cash 30, 000

Revenues 30, 000

7 Utilities Expense 10, 000

Utilities Payable 10, 000

8 Transportation 1, 000
Expense
1, 000
cash

9 Accounts Payable 5, 000

Cash 5, 000

10 Utilities Payable 500

Cash 500

11 Withdrawal 2, 000

Cash 2, 000

GENERAL LEDGER GENERAL LEDGER

ACCOUNT: Cash ACCOUNT: Capital

Date Debits Credits Date Debits Credits

1 50, 000 1 50, 000

2 1, 200 50, 000

3 5, 000

6 30, 000

8 1, 000
9 5, 000

10 500

11 2, 000

80, 000 14,700

65, 300

GENERAL LEDGER
GENERAL LEDGER

ACCOUNT: Utilities Expense

ACCOUNT: Taxes & Licenses

Date Debits Credits

Date Debits Credits

500
1, 200

10, 000
1, 200

10, 500

GENERAL LEDGER GENERAL LEDGER

ACCOUNT: Equipment ACCOUNT: Utilities Payable

Date Debits Credits Date Debits Credits

GENERAL LEDGER 500

5, 000
ACCOUNT: Furniture & Fixtures 10, 000
5, 000
10, 500

Date Debits Credits

5, 000

5, 000
 GENERAL LEDGER

ACCOUNT: Revenues

Date Debits Credits

30, 000

30, 000

GENERAL LEDGER GENERAL LEDGER

ACCOUNT: Accounts Payable ACCOUNT: Transportation Expense

Date Debits Credits Date Debits Credits

5, 000 1, 000

5, 000 1, 000

GENERAL LEDGER

ACCOUNT: Withdrawal

Date Debits Credits

2, 000

2, 000
 Trial balance

Account title Debit Credit

Cash 65, 300

Capital 50, 000

Taxes & Licenses 1, 200

Equipment 5, 000

Utilities Expense 10, 500

Utilities Payable 10, 000

Furniture & 5, 000

Fixtures

Accounts Payable 0

Revenues 30, 000

Transportation 1, 000
Expense

Withdrawal 2, 000

90, 000 90, 000

ASSESSMENT

I. Journalize the following entries then post the entries to the ledger accounts. Make a

trial balance after.

Aug 1 Monette opened a laundry shop business and invested P150000 Cash and laundry

shop equipment pf P250000, office chairs and tables worth P30000 and laundry

supplies P20000.

Aug 8 Accepted laundry services on account P7500, 50% down and the balance to be paid

at the end of the month. Used P750 laundry supplies.

Aug 10 Accepted laundry services of or cash P4500, used 500 of laundry supplies

Aug 15 Paid rental for the month of P2500

Aug 20 Received proceeds of bank loan P300000.

Aug 30 Partial collection from Aug 8 services P3000

Aug 31 Paid the salary of staff P5000

Aug 31 Monette withdrew P500 for personal use.

 JOURNALIZING ENTRIES

DATE DESCRIPTION PR DEBIT CREDIT

Aug 1 Cash 50, 000

Equipment 250, 000

Furniture & Fixtures 30, 000

Supplies 20, 000

Capital, 350, 000

Aug 8 Cash 3,750

Accounts Receivable 3, 750

Service Revenue 7, 500

Supplies 750

Cash 750

Aug 10 Cash 4, 500

Service Revenue 4, 500

 Supplies 500

Cash 500

Aug 15 Rent Expense 2, 500

Cash 2, 500

Aug 20 Cash 300, 000

Loans 300, 000

GENERAL LEDGER
Aug 30 Cash 3, 000

ACCOUNT: Cash
Accounts Receivable 3, 000

Date Debits Credits

Aug 31 Salaries & Wages 5, 000

Aug 1 50, 000 Cash 5, 000

Aug 8 3, 750 Withdrawal, 500

750
Cash 500

Aug 10 4, 500

500
GENERAL LEDGER
Aug 15 2, 500
ACCOUNT: Equipment
Aug 20 300, 000
Date Debits Credits
Aug 30 3, 000
Aug 1 250,000
Aug 31 5, 000
250,000
500

361, 250 9, 250

352, 000
 GENERAL LEDGER

ACCOUNT: Furniture & Fixtures

Date Debits Credits

Aug 1 30,000

30,000

GENERAL LEDGER

ACCOUNT: Supplies

Date Debits Credits GENERAL LEDGER

Aug 1 20, 000 ACCOUNT: Capital

Aug 8 750 Date Debits Credits

Aug 1 350, 000

Aug 10 500 350, 000

21, 250
 GENERAL LEDGER

ACCOUNT: Accounts Receivable

Date Debits Credits

Aug 8 3, 750

Aug 30

3, 000

3, 750

750

GENERAL LEDGER
GENERAL LEDGER
ACCOUNT: Service Revenues
ACCOUNT: Rent Expense
Date Debits Credits
Date Debits Credits
Aug 8 7, 500
Aug 15 2, 500

2, 500
Aug 10 4, 500

12, 000
 GENERAL LEDGER

ACCOUNT: Salaries & Wages

Date Debits Credits

GENERAL LEDGER
Aug 31 5, 000
ACCOUNT: Loans
5, 000
Date Debits Credits

Aug 20 300, 000

GENERAL LEDGER
300, 000
ACCOUNT: Withdrawal

Date Debits Credits

Aug 31 500

500

Trial balance

Account title Debit Credit

Cash 352, 000

Capital 350, 000

Equipment 250,000
Furniture & Fixtures 30,000

Supplies 21, 250

Service Revenues 12, 000

Rent Expense 2, 500

Loans 300, 000

Accounts Receivable 750

Salaries & Wages 5, 000

Withdrawal 500

Total 662, 000 662, 000