FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 1
Name: ________________________________ Grade Level: _________________
Strand and Section: _____________________ Date: _______________________
LEARNING ACTIVITY SHEET
SOLVING PROBLEMS ON DEBIT AND CREDIT
Background Information for Learners
Accounting is based on a double-entry system which means that the dual effects of a business
transactions is recorded. A debit side entry must have a corresponding credit side entry. For every
transaction, there must be one or more accounts debited and one or more accounts credited. Each
transaction affects at least two accounts. The total debits for a transaction must always equal the total
credits.
The summary of the rules of Debit and Credit presented in specific “T”-Accounts for the
accounting elements/type of accounts is as follows:
CAPITAL /
ASSETS LIABILITIES OWNERS’ EQUITY INCOME EXPENSES
Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
(+) (-) (-) (+) (-) (+) (-) (+) (+) (-)
Increases Decreases Decreases Increases Decreases Increases Decreases Increases Increases Decreases
Note:
Normal Side of Normal Side of Normal Side of Normal Side of Normal Side of
Asset: Debit Liabilities: Credit Capital: Credit Income: Credit Expenses:
Debit
Sample Illustration: Understand and analyze each given transaction. Take note that each transaction
is different in nature.
Transactions Debit Credit
1. Mateo Roa opened a Increase in Asset Increase in Capital
video rental store, Oro Account Title : Cash Account Title : Mateo Roa,
Video, by investing Amount: ₱ 250,000 Capital
₱250,000 cash from his Amount: ₱250,000
personal savings
account. Cash Mateo Roa, Capital
₱ 250,000 ₱ 250,000
2. Acquired supplies on Increase in Asset Increase in Liability
account ₱ 67,000. Account Title : Supplies Account Title : Accounts
Amount: ₱ 67,000 Payable
Amount : ₱ 67,000
Supplies Accounts Payable
₱ 67,000 ₱ 67,000
3. Paid ₱ 35,000 to Decrease in Liability Decrease in Assets
creditors. Account : Accounts Payable Account : Cash
Amount : ₱ 35,000 Amount : ₱ 35,000
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Accounts Payable Cash
₱ 35,000 ₱ 35,000
4. Received ₱ 78,000 cash Increase in Asset Increase in Capital
from ACA Video for Account Title : Cash Account Title : Revenue /
rental fees. Amount : ₱ 78,000 Income
Amount : ₱ 78,000
Cash Revenue /Income
₱ 78,000 ₱ 78,000
5. Sent a bill to Video City Increase in Asset Increase in Capital
for video rentals, Account Title : Accounts Account Title : Revenue /
₱105,000. Receivable Income
Amount : ₱ 105,000 Amount : ₱ 105,000
Accounts Receivable Revenue /Income
₱ 105,000 ₱ 105,000
6. Paid salaries, ₱ 65,000. Decrease in Capital Decrease in Asset
Account Title : Salaries Account Title : Cash
Expense Amount : ₱ 65,000
Amount : ₱ 65,000
Salaries Expense Cash
₱ 65,000 ₱ 65,000
7. Collected ₱ 77,000 Increase in Asset Decrease in another Asset
from Video City. Account Title : Cash Account Title : Accounts
Amount : ₱ 77,000 Receivable
Amount : ₱ 77,000
Cash Accounts Receivable
₱ 77,000 ₱ 77,000
8. Mateo Roa withdrew Decrease in Capital Decrease in Asset
₱47,000 from the Account Title : Mateo Roa, Account Title : Cash
business. Withdrawal Amount : ₱ 47,000
Amount : ₱ 47,000
Mateo Roa, Withdrawal Cash
₱ 47,000 ₱ 47,000
9. Paid rent for the month Decrease in Capital Decrease in Asset
₱ 15,000. Account Title : Rent Expense Account Title : Cash
Amount : ₱ 15,000 Amount : ₱ 15,000
Rent Expense Cash
₱ 15,000 ₱ 15,000
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Summary of Transactions using “T”-Accounts: Account balances are situated/located at their normal
side.
ASSETS LIABILITIES CAPITAL
Cash Accounts Payable Mateo Roa, Capital
1.) ₱ 250,000 3.) ₱ 35,000 3.) ₱ 35,000 2.) ₱ 67,000 1.) ₱ 250,000
4.) ₱ 78,000 6.) ₱ 65,000 ₱ 35,000 ₱ 67,000
7.) ₱ 77,000 8.) ₱ 47,000 (₱ 35,000) ₱ 250,000
9.) ₱ 15,000 ₱ 32,000 Total Capital
₱ 405,000 ₱ 162,000 Accounts Payable
(₱ 162,000) Balance
₱ 243,000
Cash Balance
Accounts Receivable Mateo Roa, Withdrawal
5.) ₱ 105,000 7.) ₱ 77,000 9.) ₱ 47,000
₱ 105,000 ₱ 77,000 Total Withdrawal
(₱ 77,000)
₱ 28,000
Accounts Receivable
Balance
Revenue/Income
Supplies 4.) ₱ 78,000
2.) ₱ 67,000 5.) ₱ 105,000
Supplies Balance ₱ 183,000
Total Revenue/
Income
Salaries Expense
6.) ₱ 65,000
Total Salaries Expense
Rent Expense
9.) ₱ 15,000
Total Rent Expense
Note: Assets and Liabilities use Balance while Capital Accounts use Total.
Summary of Accounts
ASSETS LIABILITIES CAPITAL
Cash ₱ 243,000 Accounts Payable ₱ 32,000 Mateo Roa, Capital ₱ 250,000
Accounts Receivable 28,000 ---------------- Mateo Roa, Withdrawal ( 47,000 )
Supplies 67,000 Revenue / Income 183,000
----------------- Salaries Expense ( 65,000 )
Rent Expense ( 15,000 )
--------------
Total Assets ₱ 338,000 Total Liabilities ₱ 32,000 Total Capital ₱ 306,000
Learning Competency
Solve simple problems and exercises in the analyses of business transactions. [ABM_FABM11-IIIg-j-
28]
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ACTIVITY
SOLVE ME:
Direction: Using the “T” account, identify in each transaction the debit and credit and prepare the
summary of each accounting element. Use the chart of accounts below:
A. Arias
CHART OF ACCOUNTS
Code ASSETS Code OWNER’S EQUITY
Current Assets
101 Cash 301 A. Arias , Capital
102 Accounts Receivable 302 A. Arias, Drawing
103 Supplies REVENUES
Non-Current Assets 401 Service Revenue
110 Equipment EXPENSES
111 Land 501 Salaries Expense
LIABILITIES
Current Liabilities
201 Accounts Payable
The transactions of A. Arias for the month of December, 2020.
TRANSACTIONS DEBIT CREDIT
Example: Cash A. Arias, Capital
1. Invested ₱ 140,000 cash into the ₱ 140,000 ₱ 140,000
business.
2. Received ₱ 84,000 for services rendered.
3. Purchased equipment on account,
₱74,000.
4. Paid ₱ 15,000 for supplies.
5. Paid salaries, ₱ 42,000.
6. Acquired land for ₱ 350,000, on account.
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7. Paid ₱ 40,000 on account from #3
transaction.
8. Sent a bill to a customer for ₱ 50,000.
9. The owner withdrew cash ₱ 15,000 for
personal use.
10. Collected ₱ 30,000 from the bill sent in #8.
Summary of Transactions
ASSETS LIABILITIES CAPITAL
Summary of Accounts
ASSETS LIABILITIES CAPITAL
Cash ₱ _____ Accounts Payable ₱ ______ A.Arias, Capital ₱ _______
Accounts Receivable _____ A. Arias, Drawing (______)
Supplies _____ Service Income _______
Equipment _____ Salaries Expense (______)
Land _____
Total Assets: ₱ _____ Total Liabilities: ₱ ______ Total Capital : ₱ ______
Guide Questions
1. What type of accounts/elements are affected – Asset, Liability, Owner’s Capital, Owner’s
Withdrawal, Revenue/Income or Expense account?
2. What are the account titles affected by the transactions?
3. Should the account be debited or credited?
4. Should the account be increased or decreased?
5. How to summarize the accounts titles?
6. How to summarize the affected type of account/element?
Rubric for Scoring
Criteria (3 points) (2 points) (1 point)
Precision and Precise and accurate.Not precise but Not precise and not
Accuracy (50%) accurate / Precise but accurate.
not accurate.
Completeness (50%) All should have been Only 50% have been Only a part had been
answered. answered. answered.
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Reflection
Rate yourself. For each parameter, please put a check on the column that shows how much you
understand the Learning Activity Sheet.
Parameters
Need Confused Confident
Support
1. I can analyze the transactions using the rules
of debit and credit.
2. I can solve the problems on debit and credit.
3. I can prepare the summary of transactions
and summary of accounts.
References for Learners
Textbook: 1. Ballada, Win Lu (1998). Basic Accounting. Win Educational Series (pages 25-26)
2. D.S. Pasion (1999) Introductory Accounting Part One. Phoenix Publishing House
(pages 18-25)
Online References:
a. Power Point Presentation:
Link: https://www.slideshare.net/TSlay/basics-of-accounting-debits-and-credits
b. Video Lesson on Debit and Credit
• (Debit and Credit Filipino Version)
https://www.youtube.com/watch?v=cC9H86By3l8
• (Solving Debit and Credit)
https://www.youtube.com/watch?v=cC9H86By3l8&t=73s
Answer Key
₱ 217,000 Total Capital ₱ 184,000 Total Liabilities Total Assets
₱ 401,000
----------------
------------- Land 150,000
Salaries Expense ( 42,000) Equipment 74,000
Service Revenue 134,000 Supplies 15,000
A. Arias, Withdrawal ( 15,000) ----------------- Accounts Receivable 20,000
A.Arias, Capital ₱ 140,000 Accounts Payable ₱ 184,000 Cash ₱ 142,000
CAPITAL LIABILITIES ASSETS
Summary of Accounts:
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SJNHS - Malilipot
CHERRY B. LANTICAN, T-III
Prepared by:
Exercise: Solve Me
The transactions of A. Arias for the month of December, 2020.
Transactions Debit Credit
Example: Cash A.Arias, Capital
1. Invested ₱ 140,000 cash into the business. ₱ 140,000 ₱ 140,000
2. Received ₱ 84,000 for services rendered. Cash Service Revenue
₱ 84,000 ₱ 84,000
3. Purchased equipment on account, ₱ 74,000. Equipment Accounts Payable
₱ 74,000 ₱ 74,000
4. Paid ₱ 15,000 for supplies. Supplies Cash
₱ 15,000 ₱ 15,000
5. Paid salaries, ₱ 42,000. Salaries Expense Cash
₱ 42,000 ₱ 42,000
6. Acquired land for ₱ 150,000, on account Land Accounts Payable
₱ 150,000 ₱ 150,000
Accounts Payable Cash
7. Paid ₱ 40,000 on account from #3 transaction. ₱ 40,000 ₱ 40,000
Accounts Receivable Service Revenue
8. Sent a bill to a customer for ₱ 50,000. ₱ 50,000 ₱ 50,000
9. The owner withdrew cash ₱ 15,000 for personal use. A.Arias, Withdrawal Cash
₱ 15,000 ₱ 15,000
10. Collected ₱ 30,000 from the bill sent in #8. Cash Accounts Receivable
₱ 30,000 ₱ 30,000
Summary of Transactions:
ASSETS LIABILITIES CAPITAL
Cash Accounts Payable A. Arias, Capital
1.) ₱ 140,000 4.) ₱ 15,000
2.) ₱ 84,000 5.) ₱ 42,000 7.) ₱ 40,000 3.) ₱ 74,000 1.) ₱ 140,000
10.) ₱ 30,000 7.) ₱ 40,000 6.) ₱ 150,000
9.) ₱ 15,000 ₱ 140,000
₱ 254,000 ₱ 112,000 ₱ 40,000 ₱ 224,000 Total Capital
( 112,000) ( 40,000)
₱ 142,000
Cash Balance ₱ 184,000
Accounts Receivable Accounts Payable Balance
8.) ₱ 50,000 10.) ₱ 30,000 A. Arias, Withdrawal
₱ 50,000 ₱ 30,000 9.) ₱ 15,000
( 30,000) ₱ 15,000
₱ 20,000 Total Withdrawal
Accounts Receivable Balance
Supplies Service Revenue
4.) ₱ 15,000 2.) ₱ 84,000
Supplies Balance 8.) ₱ 50,000
₱ 134,000
Total Revenue/Income
Equipment Salaries Expense
3.) ₱ 74,000 5.) ₱ 42,000
Equipment Balance Total Salaries Expense
Land
6.) ₱ 150,000
