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    02 Accounting 1

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    Alyna Marie Senica
    The document discusses accounting concepts such as assets, liabilities, equity, the accounting equation, and examples of basic accounting transactions. It provides an example of setting up the accounting equation for a new business and recording initial investments and expenses. The accounting equation examples demonstrate how transactions affect account balances and how to maintain the balance between total assets and the sum of liabilities and equity.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    02 Accounting 1

    Uploaded by

    Alyna Marie Senica
    24 views21 pages
    The document discusses accounting concepts such as assets, liabilities, equity, the accounting equation, and examples of basic accounting transactions. It provides an example of setting up the accounting equation for a new business and recording initial investments and expenses. The accounting equation examples demonstrate how transactions affect account balances and how to maintain the balance between total assets and the sum of liabilities and equity.

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    oki na

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    The document discusses accounting concepts such as assets, liabilities, equity, the accounting equation, and examples of basic accounting transactions. It provides an example of setting up the accounting equation for a new business and recording initial investments and expenses. The accounting equation examples demonstrate how transactions affect account balances and how to maintain the balance between total assets and the sum of liabilities and equity.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    24 views21 pages

    02 Accounting 1

    Uploaded by

    Alyna Marie Senica
    The document discusses accounting concepts such as assets, liabilities, equity, the accounting equation, and examples of basic accounting transactions. It provides an example of setting up the accounting equation for a new business and recording initial investments and expenses. The accounting equation examples demonstrate how transactions affect account balances and how to maintain the balance between total assets and the sum of liabilities and equity.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 21

    Fundamentals of

    Accountancy,
    Business and
    Management 1
    ASSETS
    Shares of stocks LIABILITIES
    Cash
    Cars
    Bank Loans
    Credit Cards
    NET WORTH
    Mansions Mortgages
    Jewelries
    ACCOUNTING CONCEPTS

    Going
    Entity Accrual Period
    Concern
    Concept Concept Concept
    Concept

    General-
    Unit of Matching Dual Effect
    purpose
    Measure Concept Concept
    concept
    ACCOUNTING CONCEPTS

    Going
    Entity Accrual Period
    Concern
    Concept Concept Concept
    Concept

    General-
    Unit of Matching Dual Effect
    purpose
    Measure Concept Concept
    concept
    ACCOUNTING CONCEPTS

    Going
    Entity Accrual Period
    Concern
    Concept Concept Concept
    Concept

    General-
    Unit of Matching Dual Effect
    purpose
    Measure Concept Concept
    concept
    ACCOUNTING CONCEPTS

    Going
    Entity Accrual Period
    Concern
    Concept Concept Concept
    Concept

    General-
    Unit of Matching Dual Effect
    purpose
    Measure Concept Concept
    concept
    ACCOUNTING CONCEPTS

    Going
    Entity Accrual Period
    Concern
    Concept Concept Concept
    Concept

    General-
    Unit of Matching Dual Effect
    purpose
    Measure Concept Concept
    concept
    ACCOUNTING CONCEPTS

    Going
    Entity Accrual Period
    Concern
    Concept Concept Concept
    Concept

    General-
    Unit of Matching Dual Effect
    purpose
    Measure Concept Concept
    concept
    ACCOUNTING CONCEPTS

    Going
    Entity Accrual Period
    Concern
    Concept Concept Concept
    Concept

    General-
    Unit of Matching Dual Effect
    purpose
    Measure Concept Concept
    concept
    ACCOUNTING CONCEPTS

    Going
    Entity Accrual Period
    Concern
    Concept Concept Concept
    Concept

    General-
    Unit of Matching Dual Effect
    purpose
    Measure Concept Concept
    concept
    ACCOUNTING CONCEPTS

    Going
    Entity Accrual Period
    Concern
    Concept Concept Concept
    Concept

    General-
    Unit of Matching Dual Effect
    purpose
    Measure Concept Concept
    concept
    ACCOUNTING STANDARDS AND RULES

    Generally accepted
    accounting principles
    (GAAP)
    THE ACCOUNTING EQUATION

    ASSETS NET WORTH


    Cash
    Supplies
    LIABILITIES or

    Building
    Bank Loans EQUITY
    Payable to suppliers Initial Capital
    Land
    Equipment Gains or Losses

    ASSETS NET WORTH


    Cash
    Supplies
    LIABILITIES or

    Building
    Bank Loans EQUITY
    Payable to suppliers Initial Capital
    Land
    Equipment Gains or Losses
    THE ACCOUNTING EQUATION

    ASSETS = LIABILITIES + OWNER’S EQUITY

    Left Side Amount Right Side Amount


    THE ACCOUNTING EQUATION

    Delgado Web Services is a new business put up by Michael Delgado. Its services
    include creation of personal or company websites and building social media
    presence.

    Transaction 1. January 2. Received cash from owner as an investment, P20,000.

    ASSETS = LIABILITIES + OWNER’S EQUITY


    Cash Delgado, Capital
    Beginning Balance ₱0 ₱0 ₱0

    Cash received from


    + ₱ 20,000 + ₱ 20,000
    owner as investment

    New Balances ₱ 20,000 ₱ 20,000


    THE ACCOUNTING EQUATION
    Transaction 2. January 2. Paid cash for supplies, P1,650.

    ASSETS = LIABILITIES + OWNER’S EQUITY


    Cash Supplies Delgado, Capital
    Beginning Balance ₱0 ₱0 ₱0

    Cash received from


    + ₱ 20,000 + ₱ 20,000
    owner as investment

    New Balances ₱ 20,000 ₱ 20,000


    Paid cash for supplies - 1,650 + 1,650

    New Balances ₱ 18,350 ₱ 1,650 ₱ 20,000


    THE ACCOUNTING EQUATION
    Transaction 3. January 3. Paid cash for insurance, P9,000.

    ASSETS = LIABILITIES + OWNER’S EQUITY


    Cash Supplies Insurance Delgado, Capital
    Beginning Balance ₱0 ₱0 ₱0

    Cash received from


    + ₱ 20,000 + ₱ 20,000
    owner as investment

    New Balances ₱ 20,000 ₱ 20,000


    Paid cash for supplies - 1,650 + 1,650

    New Balances ₱ 18,350 ₱ 1,650 ₱ 20,000


    Paid cash for
    - 9,000 + 9,000
    insurance

    New Balances ₱ 9,350 ₱ 1,650 ₱ 9,000 ₱ 20,000


    THE ACCOUNTING EQUATION
    Transaction 4. January 5. Bought office supplies on account from Canyon Office Supplies, P2,200.

    ASSETS = LIABILITIES + OWNER’S EQUITY


    Cash Supplies Insurance Accounts Payable Delgado, Capital
    Beginning Balance ₱0 ₱0 ₱0

    Cash received from


    + ₱ 20,000 + ₱ 20,000
    owner as investment

    New Balances ₱ 20,000 ₱ 20,000


    Paid cash for supplies - 1,650 + 1,650

    New Balances ₱ 18,350 ₱ 1,650 ₱ 20,000


    Paid cash for
    - 9,000 + 9,000
    insurance

    New Balances ₱ 9,350 ₱ 1,650 ₱ 9,000 ₱ 20,000


    Purchased supplies on
    account
    ₱ 2,200 ₱ 2,200

    New Balances ₱ 9,350 ₱ 3,850 ₱ 9,000 ₱ 2,200 ₱ 20,000


    THE ACCOUNTING EQUATION
    Transaction 4. January 9. Paid cash on accounts to Canyon Office Supplies, P1,000.

    ASSETS = LIABILITIES + OWNER’S EQUITY


    Cash Supplies Insurance Accounts Payable Delgado, Capital
    Beginning Balance ₱0 ₱0 ₱0

    Cash received from


    + ₱ 20,000 + ₱ 20,000
    owner as investment

    New Balances ₱ 20,000 ₱ 20,000


    Paid cash for supplies - 1,650 + 1,650

    New Balances ₱ 18,350 ₱ 1,650 ₱ 20,000


    Paid cash for
    - 9,000 + 9,000
    insurance

    New Balances ₱ 9,350 ₱ 1,650 ₱ 9,000 ₱ 20,000


    Purchased supplies on
    account
    ₱ 2,200 ₱ 2,200

    New Balances ₱ 9,350 ₱ 3,850 ₱ 9,000 ₱ 2,200 ₱ 20,000


    Paid cash on account - 1,000 - 1,000
    New Balances ₱ 8,350 ₱ 3,850 ₱ 9,000 ₱ 1,200 ₱ 20,000
    THE ACCOUNTING EQUATION
    Activity 1
    Copy the table on a piece of paper. Place a plus sign (+) in appropriate column if the
    classification is increased. Place a minus sign (-) in the appropriate column if the
    classification decreased. Take a picture of your answers then send here as an attachment.

    Transactions:
    1. Received cash from owner as an investment.
    2. Bought supplies on account.
    3. Paid cash for supplies.
    4. Paid cash for insurance.
    5. Paid cash on account.

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