Written Works #2

An asset account increases and a corresponding claims (liabilities or owner’s equity) account increases.

• Source of assets

• Exchange of assets

• Use of assets

• Exchange of claims

One claims (liabilities or owner’s equity) account increases and another claims (liabilities or owner’s equity) account decreases.

• Source of assets

• Exchange of assets

• Use of assets

• Exchange of claims

One asset account increases and another asset account decreases.

• Source of assets

• Exchange of assets

• Use of assets

• Exchange of claims

An asset account decreases and a corresponding claims (liabilities or equity) account decreases.

• Source of assets

• Exchange of assets

• Use of assets

• Exchange of claims

This is called the book of original entry.

• Journal

• Ledger

• Debit

• Credit

This is a listing of all accounts with their account numbers in the ledger.

• Chart

• Chart of Accounts

• Account Titles

• General Journal

Identify the wrong entry in the following situations: Write A if incorrect is debit entry, B if credit entry, C if both debit and credit entry and D if no incorrect entry.

Den established his own human resource agency by putting 100,000 initial investments.

Dr Cash; Cr Accounts Payable

• A

• B

• C

• D

Identify the wrong entry in the following situations: Write A if incorrect is debit entry, B if credit entry, C if both debit and credit entry and D if no incorrect entry.

Den hired 2 employees with the monthly compensation of 15,000 each.

  Dr Salaries Expense; Cr Cash

• A

• B

• C

• D

Identify the wrong entry in the following situations: Write A if incorrect is debit entry, B if credit entry, C if both debit and credit entry and D if no incorrect entry.

Borrowed money from BPI amounting to 120,000 with 2% annual interest.

  Dr Cash; Cr Accounts Payable

• A

• B

• C

• D

Identify the wrong entry in the following situations: Write A if incorrect is debit entry, B if credit entry, C if both debit and credit entry and D if no incorrect entry.

Collected 34,000 from clients who previously billed for the service provided.

  Dr Cash; Cr Revenue

• A

• B

• C

• D