2. Bought office equipment worth P20,000 in cash. 3. Paid P5,000 for July rent. 4. Rendered services and received P15,000 cash. 5. Bought supplies worth P8,000 on credit. 6. Paid P4,000 to a supplier for a previous purchase. 7. Provided services worth P12,000 on account. 8. Received P6,000 from a customer for a previously billed service. 9. Owner withdrew P2,500 cash for personal use. 10. Paid P10,000 for employee salaries. Fill in the blanks in the table below: | Accounts affected | Elements | Dr | Cr | |---|---|---|---| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Answer (1)
The question provided involves understanding the basics of double-entry bookkeeping, which is a fundamental part of accounting. Each business transaction affects at least two accounts in the accounting records, and the accounting equation must stay balanced (Assets = Liabilities + Equity). In each transaction, one account is debited and another is credited.
Here's a breakdown of each transaction and how it affects the accounts:
Bought office equipment worth P20,000 in cash.
Accounts affected: Office Equipment (Asset), Cash (Asset)
Elements: Assets
Dr: Office Equipment P20,000
Cr: Cash P20,000
Paid P5,000 for July rent.
Accounts affected: Rent Expense (Expense), Cash (Asset)
Elements: Expense, Asset
Dr: Rent Expense P5,000
Cr: Cash P5,000
Rendered services and received P15,000 cash.
Accounts affected: Cash (Asset), Service Revenue (Revenue)
Elements: Asset, Revenue
Dr: Cash P15,000
Cr: Service Revenue P15,000
Bought supplies worth P8,000 on credit.
Accounts affected: Supplies (Asset), Accounts Payable (Liability)
Elements: Asset, Liability
Dr: Supplies P8,000
Cr: Accounts Payable P8,000
Paid P4,000 to a supplier for a previous purchase.
Accounts affected: Accounts Payable (Liability), Cash (Asset)
Elements: Liability, Asset
Dr: Accounts Payable P4,000
Cr: Cash P4,000
Provided services worth P12,000 on account.
Accounts affected: Accounts Receivable (Asset), Service Revenue (Revenue)
Elements: Asset, Revenue
Dr: Accounts Receivable P12,000
Cr: Service Revenue P12,000
Received P6,000 from a customer for a previously billed service.
Accounts affected: Cash (Asset), Accounts Receivable (Asset)
Elements: Asset
Dr: Cash P6,000
Cr: Accounts Receivable P6,000
Owner withdrew P2,500 cash for personal use.
Accounts affected: Owner’s Drawings (Equity), Cash (Asset)
Elements: Equity, Asset
Dr: Owner’s Drawings P2,500
Cr: Cash P2,500
Paid P10,000 for employee salaries.
Accounts affected: Salaries Expense (Expense), Cash (Asset)
Elements: Expense, Asset
Dr: Salaries Expense P10,000
Cr: Cash P10,000
This table records the double-entry bookkeeping process required for each financial transaction, ensuring books balance and providing clarity on how each transaction impacts the financial statements.
