FINANCIAL TRANSACTION WORKSHEET
During March 2019, the first month of operations, various
transactions took place.
a. March 1. Medina started his new business by depositing P350,000 in
a bank account in the name of Medina Graphics Design at BPI Poblacion
Branch.
b. March 5. Computer equipment costing P145,000 is acquired on cash
basis.
c. March 9. Computer Supplies in the amount of P25,000 are purchased
on account.
d. March 11. Medina Graphics Design collected P88,000 cash for
designing interactive websites for two exporters inside Davao
Ecozone.
e. March 16. Medina paid P18.900 to Bills Express, a one-stop bills
f. March 17. The entity has service agreements with several
Netpreneurs to maintain and update their web sites weekly. Medina
billed these clients P35,000 for services already rendered during the
month.
g. March 20. Medina made a partial payment of P17,000 for the March 9
purchase on account.
h. March 20. Checks totaling P25,000 were received from clients for
billings dated March 17.
i. March 21. Medina withdrew P20,000 from the business for his
personal use.
j. March 27. Loqueloque Publishing submitted a bill to Medina for
P8,000 worth of newspaper advertisements for this month. Medina will
pay this bill next month.
k. March 31. Medina paid his assistant designer salaries of P15,000
for the month.
Required: Record the transactions using a financial transaction
worksheet.
FINANCIAL TRANSACTION SHEET
LIABILITIES + OWNER EQUITY = ASSETS
DATE ASSETS LIABILITIES OWNER
EQUITY
Cash Account Comp. Comp. Account OE
Receive Supply Eqpmt Payable
3/1 350K 350K
3/5 (145K) 145K
3/9 25K 25K
3/11 88K 88K
3/16 (18K) (18K)
3/17 35K 35K
3/20 (17K) (17K)
3/20 25K (25K)
3/21 (20K) (20K)
3/27 8K (8K)
3/31 (15K) (15K)
TOTAL 248K 10K 25K 145K 16K 412K
FINAL 428K 16K 412K
TOTAL
NOTE: () means deduction
FINANCIAL TRANSACTION SHEET
LIABILITIES + OWNER EQUITY = ASSETS
DATE ASSETS LIABILITIES OWNER
EQUITY
Cash Account Comp. Comp. Account OE
Receive Supply Eqpmt Payable
3/1
3/5
3/9
3/11
3/16
3/17
3/20
3/20
3/21
3/27
3/31
TOTAL
FINAL
TOTAL
Recording Transactions in a Financial Transaction Worksheet
Simeon has started his own business,Property Appraisals. He
inspects" property for buyers and sellers of real estate. Simeon
rents office space and has a part-time assistant to answer the
phone and to
help with inspections.
The transactions for the month of September are as follows:
a. Simeon invested cash by making a deposit in a bank account
for the business,
P150,000.
b. Paid rent for the month, P3,000.
c. Bought a second-hand service vehicle for cash, P80, 000.
d. Bought service tools on account, P30,000./on Credit
e.Paid electricity bill, P500.
f. Paid a one-year insurance premium on the service vehicle,
P6,000.
g. Received cash from clients for service performed, P20,000.
h. Paid salaries to assistant for the first half of the month,
P20,000.
i. Performed appraisal services for clients on account, P10,000.
j. Paid water bill, P350.
k. Bought office supplies for cash, P1, 000.
l. Received cash from clients for inspections performed on
account in (f), P3,000.
m. Paid salaries to assistant for the last half of the month,
P2,500.
n. Made partial payment on the service tools bought in (d),
P10,000.
o. Additional revenues earned amounted to P20,000: P14,000 for
cash and P6,000 on
p. Simeon withdrew cash for personal expenses, P5,000.
Required:
1. Establish the following accounts in a financial transaction
worksheet: Cash; Accounts Receivable; Office Supplies; Prepaid
Insurance; Service Tools; Service Vehicle; Accounts Payable;
Manoban, Capital; Manoban, Withdrawals; Revenues; and Expenses.
2. Compute the ending balances for all accounts.
DEBITS AND CREDITS- THE DOUBLE ENTRY SYSTEM
Accounting is based on double-entry system which means the dual
effect of a business transaction is recorded. Each transaction
affects at least two accounts. The total debits for a transaction must
be always equal the total credits.
Account may be defined as a detailed record of the increases,
decreases and the balance of each element that appears in an entity's
financial statements.
An account is debited when an amount is entered on the left side of
the account and credited on the right side.
ACCOUNT TITLE
LEFT SIDE OR DEBIT SIDE RIGHT SIDE OR CREDIT SIDE
D - Drawing/Withdrawals Liabilities - L
E - Expenses Equity/Owner's Equity - E
A - Assets Revenue - R
"DEA LER"
Drawings/Withdrawals, Expenses, and Assets (DEA)
• Increases in Drawings/Withdrawals, Expenses and Assets (DEA)
are recorded as debits. (Debit +)
• Decreases in Drawings/Withdrawals,
Expenses and Assets (DEA)
are recorded as credits. (Credit -)
• Normal balance = "Debit".
Liabilities, Equity/Owner's Equity, and Revenue (LER)
• Increases in Liabilities,
Equity/Owner's Equity,
and Revenue
(LER) are recorded as credits. (Credit +)
• Decreases in Liabilities, Equity/Owner's Equity, and Revenue (LER)
are recorded as debits. (Debit -)
• Normal balance = "Credit".
