Scribd
Upload
2K views2 pages

Accounting Basics for Students

The document lists 10 business transactions for Puring Company during its first month of operations: 1) The owner invested ₱300,000 cash in the business. 2) Equipment was purchased for ₱50,000 cash and inventories for ₱35,000 on credit. 3) Sales of ₱17,000 were made, with ₱12,000 in cash sales and ₱5,000 in credit sales. The cost of these sales was ₱8,500.

Uploaded by

Mylene Salvador
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
2K views2 pages

Accounting Basics for Students

The document lists 10 business transactions for Puring Company during its first month of operations: 1) The owner invested ₱300,000 cash in the business. 2) Equipment was purchased for ₱50,000 cash and inventories for ₱35,000 on credit. 3) Sales of ₱17,000 were made, with ₱12,000 in cash sales and ₱5,000 in credit sales. The cost of these sales was ₱8,500.

Uploaded by

Mylene Salvador
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
  • Business Transactions Overview

Individual Activity FABM1 (Accounting Equation)

Listed below are ten business transactions for Puring Company during its first month of operations:
a. Owner invested cash in the business amounting to P300,000
b. Purchased equipment for cash amounting to P50,000
c. Purchased inventories through credit amounting to P35,000
d. Purchased furniture amounting to P30,000. Made partial payment with cash P10,000 and incurred an accounts
payable for the balance P20,000
e. Paid cash to the local government for business permit P9,000
f. Made sales of P17,000 (P12,000 cash sales, P5,000 credit sales)
g. The cost of sales made in (f) amounted to P8,500
h. Paid accounts payable in (d)
i. Collected P2,500 out of the P5,000 credit sales in (f)
j. Paid employee P12,000

Indicate the effects of the given transactions on each of the financial statement elements in the table shown below. The
answer for transaction (a) is given as an example.

ASSETS = LIABILITIES + EQUITY REVENUES EXPENSES


a P + 300,000 P + 300,000
= +
b
= +

c
= +

d
= +

e
= +
f
= +

g
= +

h
= +
i
= +

j
= +
On the transaction summary table below, indicate the effect of each transaction on each account. Put “ + “ if the account
has increased or “ – “ if the account has decreased. Put the amount of increase or decrease for each account.

ASSETS = LIABILITIES + OWNER'S EQUITY


Accounts Office Accounts Loan Jane, Revenues Expenses
Cash Receivable Equipment Payable Payable Capital
1. Jane invested P200,000
= +
cash.
2. Rendered services to
= +
Mr. Lee on account, P10,000
3. Cash services to clients,
= +
P22,000.
4. Bought P30,000 worth of
= +
office equipment on account.
5. Paid electric bill to Meralco,
= +
P1,800.
6. Mr. Lee paid 50%
= +
(transaction #2)
7. Proceeds from bank loan,
= +
P50,000.
8. Cash collections from
= +
various customers, P18,000
9. Jane withdrew P10,000
= +
for personal use.
10. Paid the office equipment
= +
in full.
11. Paid secretary's salary,
= +
P4,000
12. Paid 25% of the bank loan
= +
13. Jane made an additional
= +
investment, P20,000
14. Paid monthly rent
= +
P5,000.
15. Paid interest on bank loan
= +
P420.

Individual Activity FABM1 (Accounting Equation) Listed below are ten business transactions for Puring Company during its fir
On the transaction summary table below, indicate the effect of each transaction on each account. Put “ + “ if the account ha

You might also like