Scribd
Upload
55 views

Basic Accounting: Presented By: Genoveva L. Laroza BSA 4

This document provides an introduction to basic accounting concepts through a presentation given by Genoveva L. Laroza. The presentation covers the accounting equation, the five major accounts, account classifications, debits and credits, and exercises. It defines assets, liabilities, equity, income and expenses. It explains the balance sheet and income statement accounts. It provides examples of account titles and their normal debit and credit balances. Finally, it includes exercises to identify account types and whether transactions would result in debits or credits.

Uploaded by

Cherrie Arianne Fhaye Naraja
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
55 views

Basic Accounting: Presented By: Genoveva L. Laroza BSA 4

This document provides an introduction to basic accounting concepts through a presentation given by Genoveva L. Laroza. The presentation covers the accounting equation, the five major accounts, account classifications, debits and credits, and exercises. It defines assets, liabilities, equity, income and expenses. It explains the balance sheet and income statement accounts. It provides examples of account titles and their normal debit and credit balances. Finally, it includes exercises to identify account types and whether transactions would result in debits or credits.

Uploaded by

Cherrie Arianne Fhaye Naraja
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 15

ACCOUNTANCY STUDENT COUNCIL- JPIA

BASIC
ACCOUNTING

Presented by: Genoveva L. Laroza BSA 4


Agenda
K E Y TO PI CS D I SCU SSE D
I N THIS P R E S E N TAT I O N

Five Major Accounts


Account Titles
Debits and Credits
Exercises
Accounting Equation

ASSETS= LIABILITIES + EQUITY


Expanded
Accounting
Equation

ASSETS= LIABILITIES + EQUITY + INCOME - EXPENSES


FIVE MAJOR ACCOUNTS

1 2 3 4 5
ASSETS LIABILITIES EQUITY INCOME EXPENSES

Are the economic Are your present Assets Increases the Decreases the
resources you obligations that minus economic economic benefits
control that have have resulted liabilities. benefits. ❖ Expenses
resulted from from past events ❖ Revenue ❖ Losses
past events and and can require ❖ Gains
can provide you you to give up
with economic economic
benefits. resources when
settling them.
CLASSIFICATION:
BALANCE SHEET INCOME STATEMENT
ACCOUNTS ACCOUNTS
ASSETS INCOME

LIABILITIES EXPENSES

EQUITY
ASSETS LIABILITIES EQUITY INCOME EXPENSES
CASH ACCOUNTS PAYABLE ❑ OWNER’S CAPITAL SERVICE FEES COST OF SALES
INCREASED BY:
ACCOUNTS RECEIVABLE NOTES PAYABLE INVESTMENT OR OWNER’S SALES FREIGHT-OUT
CONTRIBUTION
ALLOWANCE FOR BAD DEBTS INTEREST PAYABLE INCOME EARNED INTEREST INCOME SALARIES EXPENSE

NOTES RECEIVABLE SALARIES PAYABLE DECREASED BY: GAINS RENT EXPENSE

INVENTORY UTILITIES PAYABLE WITHDRAWALS UTILITIES EXPENSE


PREPAID SUPPLIES UNEARNED INCOME EXPENSES/LOSS INCURRED SUPPLIES EXPENSE

PREPAID RENT ❑ OWNER’S DRAWINGS BAD DEBT EXPENSE


PREPAID INSURANCE DEPRECIATION EXPENSE

LAND ADVERTISING EXPENSE

BUILDING INSURANCE EXPENSE

EQUIPMENT TAXES & LICENSES

TRANSPORTATION & TRAVEL


EXPENSE
INTEREST EXPENSE
MISCELLANEOUS EXPENSE
LOSSES
Normal balances of accounts:

TYPE OF ACCOUNT NORMAL BALANCE

ASSET DEBIT

LIABILITY CREDIT

EQUITY CREDIT

INCOME CREDIT

EXPENSE DEBIT
T- ACCOUNT

DR CR
LEFT SIDE RIGHT SIDE
LIABILITY
ASSET
EQUITY
EXPENSE
INCOME
COLUMN A
EXERCISES: -ASSET -EQUITY
COLUMN B
-BALANCE SHEET A/C
-LIABILITY -INCOME -INCOME STATEMENT A/C
-EXPENSE

ACCOUNT TITLES A B
1. ACCOUNTS ASSET B/S 16. TAXES & LICENSES EXPENSE I/S
RECEIVABLE 17. FURNITURE & ASSET B/S
2. BAD DEBT EXPENSE EXPENSE I/S FIXTURES
3. BUILDING ASSET B/S 18. SUPPLIES EXPENSE EXPENSE I/S
4. NOTES PAYABLE LIABILITY B/S 19. INTEREST EXPENSE EXPENSE I/S
5. RENT EXPENSE EXPENSE I/S 20. INVENTORY ASSET B/S
6. OWNER’S EQUITY EQUITY B/S 21. LAND ASSET B/S
7. INTEREST INCOME INCOME I/S 22. ACCOUNTS PAYABLE LIABILITY B/S
8. CASH ASSET B/S 23. NOTES RECEIVABLE ASSET B/S
9. GAIN INCOME I/S 24. PREPAID INSURANCE ASSET B/S
10. COMPUTER ASSET B/S 25. LOSS EXPENSE I/S
EQUIPMENT 26. PREPAID SUPPLIES ASSET B/S
11. DEPRECIATION EXPENSE I/S LIABILITY B/S
27. RENT PAYABLE
12. UTILITIES PAYABLE LIABILITY B/S INCOME I/S
28. SALES
13. FREIGHT OUT EXPENSE I/S ASSET B/S
29. INTEREST
14. RENT INCOME INCOME I/S RECEIVABLE
15. UNEARNED LIABILITY B/S 30. TRANSPORTATION ASSET B/S
INCOME EQUIPMENT
EXERCISES: TELL ME IF IT IS DEBIT OR CREDIT?

ACCOUNT TITLES INCREASED BY A


1. CASH DR 13. ACCOUNTS PAYABLE CR

2. SALES CR 14. UNEARNED INCOME CR

CR 15. COST OF SALES DR


3. ACCUMULATED DEPRECIATION
16. EQUIPMENT DR
4. DEPRECIATION DR
17. NOTES PAYABLE CR
5. INVENTORY DR
18. INSURANCE EXPENSE DR
6. OWNER’S CAPITAL CR
19. PREPAID INSURANCE DR
7. RENT EXPENSE DR
20. GAINS CR
8. RENT INCOME CR
21. NOTES RECEIVABLE DR
9. INTEREST RECEIVABLE DR
22. LAND DR
10. INTEREST EXPENSE DR
23. BUILDING DR

11. PREPAID RENT DR DR


24. FURNITURE AND FIXTURES
12. OWNER’S DRAWINGS DR DR
25. FREIGHT OUT
Do you have
any questions?
THANK YOU
ATTENDEES!!!☺☺☺

You might also like