OUTPUT NO.
3 - THE ACCOUNTING EQUATION (TOTAL HPS=41 PTS)
Sophia F. Magdaraog January 29, 2021
ABM 11 – St. Scholastica
Activity 1 = HPS 6
ACTIVITY 1
ASSETS = LIABILITIES + OWNER'S EQUITY
5000 = 2000 + 3000
5000 = 2000 + 3000
5000 = 2000 + 3000
5000 = 2000 + 3000
DO IT YOURSELF
ASSETS = LIABILITIES + OWNER'S EQUITY
250,000.00 = 150,000.00 + 100,000.00
3,275,180.00 = 1,752,630.00 + 1,522,550.00
687,500.00 = 207,230.00 + 480,270.00
3,450,000.00 = 2,075,000.00 + 1,375,000.00
2,113,250.00 = 875,600.00 + 1,237,650.00
5,650,710.00 = 2,750,690.00 + 2,900,020.00
Activity 2 - Write the accounting equation for each independent transaction.
HPS = 20
1. The owner invested ₱200,000 to start a printing business.
(Assets and Owner’s Equity)
ASSETS = LIABILITIES + OWNER'S EQUITY
Cash: ₱200,000 = + Capital: ₱200,000
Total: ₱200,000 = 0 + ₱200,000
2. The company obtained a loan from a bank, ₱300,000
(Assets and Liabilities)
ASSETS = LIABILITIES + OWNER'S EQUITY
Cash: ₱500,000 = Bank Loan ₱ 300,000 + Capital: ₱200,000
Total: ₱500,000 = ₱300,000 + ₱200,000
3. The company purchased printers and paid a total of ₱12,000
(Assets)
ASSETS = LIABILITIES + OWNER'S EQUITY
Cash: ₱488,000 = Bank Loan ₱ 300,000 + Capital: ₱200,000
Printers ₱12,000 = +
Total: ₱500,000 = ₱300,000 + ₱200,000
4. Rendered services and received cash, ₱5,000
(Assets and Owner’s Equity)
ASSETS = LIABILITIES + OWNER'S EQUITY
Cash: ₱493,000 = Bank Loan ₱ 300,000 + Capital: ₱200,000
Printers ₱12,000 = + Service: ₱5,000
Total: ₱505,000 = ₱300,000 + ₱205,000
5. Rendered services on account, ₱7,500
(Assets and Owner’s Equity)
ASSETS = LIABILITIES + OWNER'S EQUITY
Cash: ₱493,000 = Bank Loan ₱ 300,000 + Capital: ₱200,000
Printers ₱12,000 = + Service: ₱12,500
A/R ₱7,500 = +
Total: ₱512,500 = ₱300,000 + ₱212,500
6. Purchased office supplies on account, ₱2,000
(Assets and Liabilities)
ASSETS = LIABILITIES + OWNER'S EQUITY
Cash: ₱493,000 = Bank Loan ₱ 300,000 + Capital: ₱200,000
Printers ₱12,000 = + Service: ₱12,500
A/R ₱7,500 = +
Supplies ₱2,000 = A/P ₱2,000 +
Total: ₱514,500 = ₱302,000 + ₱212,500
7. Had its printer repaired for bet for ₱4,000, to be paid after 15 days
(Assets and Liabilities)
ASSETS = LIABILITIES + OWNER'S EQUITY
Cash: ₱493,000 = Bank Loan ₱ 300,000 + Capital: ₱200,000
Printers ₱12,000 = + Service: ₱12,500
A/R ₱7,500 = +
Supplies ₱2,000 = A/P ₱6,000 +
Repair ₱4,000 = +
Total: ₱518,500 = ₱306,000 + ₱212,500
8. The owner withdrew ₱5,000 cash for personal use.
(Assets and Owner’s Equity)
ASSETS = LIABILITIES + OWNER'S EQUITY
Cash: ₱488,000 = Bank Loan ₱ 300,000 + Capital: ₱200,000
Printers ₱12,000 = + Service: ₱12,500
A/R ₱7,500 = + P Use (-) ₱5,000
Supplies ₱2,000 = A/P ₱6,000 +
Repair ₱4,000 = +
Total: ₱513,500 = ₱306,000 + ₱207,500
9. Paid ₱100,000 of the loan obtained from a bank.
(Assets and Liabilities)
ASSETS = LIABILITIES + OWNER'S EQUITY
Cash: ₱388,000 = Bank Loan ₱ 200,000 + Capital: ₱200,000
Printers ₱12,000 = + Service: ₱12,500
A/R ₱7,500 = + P Use (-) ₱5,000
Supplies ₱2,000 = A/P ₱6,000 +
Repair ₱4,000 = +
Total: ₱413,500 = ₱206,000 + ₱207,500
10. Collected from customer, ₱7,500.
(Assets)
ASSETS = LIABILITIES + OWNER'S EQUITY
Cash: ₱395,500 = Bank Loan ₱ 200,000 + Capital: ₱200,000
Printers ₱12,000 = + Service: ₱12,500
A/R 0 = + P Use (-) ₱5,000
Supplies ₱2,000 = A/P ₱6,000 +
Repair ₱4,000 = +
Total: ₱413,500 = ₱206,000 + ₱207,500
Fill in the blanks with increase(s) / decrease(s) / no net change / equal
HPS = 15
1. Revenue increase owner’s equity
2. Expenses decrease owner’s equity
3. Owner’s withdrawal decreases owner’s equity
4. Initial and additional investments increases both assets and owner's equity.
5. Assets purchased on credit increases both assets and liabilities.
6. When assets are used to purchase other assets, there is no net change in the amount of total
assets.
7. Assets used to pay debts decreases assets and liabilities.
8. Net income increases assets and owner's equity.
9. Net losses decreases assets and owner's equity.
10. Assets that are used up for the purpose of the generating revenue increases assets and owner's
equity.
11. Owner’s withdrawal and dividends decreases assets and owner's equity.
12. Expenses decreases assets and owner's equity.
13. The two sides of the equation must equal at all times.
14. Payments of debt decreases asset and liability
15. Cash used to purchase equipment has no net change in the total assets.
