Professional Documents
Culture Documents
• Assets DR
ALWAYS
• Liabilities CR
CONSIDER • Owner’s Equity / Capital CR
YOURSELF AS THE • Drawing / Withdrawals DR
“BUSINESS” • Income / Revenue CR
• Expenses DR
TRANSACATIONS:
• Purchased / Bought
ALWAYS • Sold
CONSIDER • Paid
YOURSELF AS THE
“BUSINESS” • Collected
• Rendered Services
Dr. Alegre
invested cash
Cash 2,000,000 amounting to
Office Furniture 2,500,000 P2,000,000 and
Alegre, Capital 4,500,000
a clinic
furniture worth
P2,500,000.
Bought
Supplies 100,000
supplies
Cash 100,000
for cash,
P100,000
.
Bought office
equipment on
account
Office Equipment 750,000 amounting to
Cash 200,000 750,000, paying
Note payable 550,000
200,000 and
issued a note for
the balance.
Office Equipment 750,000
Cash 200,000 Full payment
Note payable 550,000
of the note
Note payable 550,000
issued from
Cash 550,000 the last
transaction,
P550,000.
Cash 50,000
Accounts Receivable 60,000 Rendered services
Medical Fess 110,000
and these are the
medical fees income
Cash 50,000
Medical Fees 50,000 for the week:
Accounts Receivable 60,000
Medical Fees 60,000
Cash 50,000
On account 60,000
Cash 50,000
Accounts Receivable 60,000
Medical Fess 110,000 Collected in
full the
Cash 60,000 patients’
Accounts Receivable 60,000
accounts
from last
transaction.
Paid
Taxes and Licenses 20,000
taxes
Cash 20,000
and
licenses,
P20,000.
The doctor
withdrew
Alegre, Drawing 15,000 for his
Cash 15,000
personal
use,
P15,000.
TRANSACTION DR CR
INVESTMENT ASSET e.g. Cash, Equipment CAPITAL
BOUGHT (CASH) ASSET / PURCHASES CASH
BOUGHT (ON ACCOUNT) ASSET / PURCHASES LIABILITY e.g. Account
Payable, Note Payable
PAYMENT OF AN ACCOUNT LIABILITY e.g. Account CASH
Payable, Note Payable