COLUMBAN COLLEGE, INC

CENTER FOR LIFE-LONG LEARNING AND SKILLS DEVELOPMENT

#1 1ST Street New Asinan, Olongapo City
047-222-3329, local 113 (CBA Office)

The following are the account titles and their normal balances:
ACCOUNT TITLES
ASSETS DEBIT (+) CREDIT (-)
 Investment of owner  Withdrawal of owner
CASH  Service performed for Cash  Payment of bill/ expense
 Collection of an account  Purchase of asset
 Sold Goods/Merchandise for cash  Payment of Liability
 Refund received for returned  Paid purchases for cash
goods  Paid merchandise for cash
 Cash received from bank loans  Paid supplies for cash
 Sale of PPE  Refund to customers for
returned goods
Accounts  service performed on account  Collection made to
Receivable  Sold goods/merchandise on customer on account
credit or on account
 Billed to customers on account
Notes Receivable  Received a Promissory Note  PN is already paid
from a customer
Office Supplies  Purchase/bought/acquire office  Used/consumed of office
supplies for use supplies
MERCHANDISE
INVENTORY

 Periodic  Ending Inventory  When Beginning Inventory

Inventory are closed
System

 Perpetual  Purchase of Goods for cash

Inventory  Purchase of Goods on account Return of goods
 Freight in  Purchase discount
 Sale of Goods at Cost (2 nd
entry in a sales
transaction)
Prepaid  Paid expenses in advance  Recognition of the
Expenses expense/consumed portion
Property, Plant and  Purchase / acquired/bought a PPE.  Sale of PPE
Equipment  Investment of owner of any PPE
 Land
 Building
 Equipment
 Furniture and
Fixtures
DEBIT (-) CREDIT (+)
ACCOUNT TITLES
CONTRA-ASSET
Allowance for Bad Debts  Allocation for Bad Debts
 allocation of depreciation on
Accumulated Depreciation the PPE
 ACCOUNT TITLES DEBIT (-) CREDIT (+)
LIABILITY and CAPITAL
 Payment of an account  Purchase/Acquisition of an
Accounts Payable  PN is issued for the accounts asset on account.
payable  Received a bill and did not
immediately pay
 Purchase
goods/merchandise on
account
 Record unpaid expenses

 Payment made on the PN  Issued a PN for an account

Notes Payable
 Recognition of a revenue  Received an advance
Unearned Revenues earned payment for a service
 Payment of a loan  Acquired a loan from a
Loans Payable bank or financial institution
 Permanent withdrawal of owner  Investment of owner
X, Capital  Net Loss (Exp>Income)  Additional Investment
 Net Profit (Income>Exp)
ACCOUNT TITLES
CONTRA-EQUITY DEBIT (+) CREDIT (-)
 Payment of a personal expense
X, Drawing  Withdrawal of Cash for
personal use
ACCOUNT TITLES DEBIT (-) CREDIT (+)
REVENUE
 Performance of a service
Revenue whether for cash or on
account
Sales  Sold goods/merchandise for
cash
 Sold goods/ merchandise
on account / on credit
 Billed customers for goods
sold
ACCOUNT TITLES
CONTRA REVENUE ACCOUNT DEBIT (+) CREDIT (-)
Sales Returns  Record goods returned 
and allowances  Record refund on goods
sold
Sales Discount  Record cash discounts for 
goods sold
ACCOUNT TITLES
EXPENSE DEBIT (+) CREDIT (-)
Cost of Goods  Sale of goods  Return of goods
Sold/ Cost of
Sales (Under
Perpetual
Inventory)
Purchases  Record goods/ merchandise
bought/acquired for cash
 Record goods/merchandise
goods/acquired on account / on
credit

DOLLY VINLUAN-ABASTA,CPA,MBA
Trainer/Assessor – Bookkeeping NCIII
For Exclusive use of Columban College, Inc. – Bookkeeping NC III Trainees and Students.
No part of this Matrix be used in any books without permission of its author/creator (2016)
  Received a bill for goods
purchased/acquired
Freight In  Record Freight Charges for
goods PURCHASED
Purchase  Record discount availed for
Discount early payment
Salaries Expense  Bill received for cash or on
Rent Expense account
Supplies Expense  Recognition of an expense for
Insurance Expense it was consumed, expired
Depreciation Expense
Utilities Expense
Interest expense

Freight out  Freight charges for goods sold

to customer
ACCOUNT TITLES
CONTRA- EXPENSE DEBIT (-) CREDIT (+)
 Record goods returned
Purchase returns bought for cash
and allowances  Record goods returned
bought on credit/on account
Purchase  When paying an account
Discounts within the discount period

Below is the step on how to use the matrix.

1. The matrix comprises the common account titles used in a business.
2. There is the column for the debit and credit.
3. To know what side increases and decreases for each account title, you have to know their NORMAL
BALANCES. The normal balances of the accounts increases every time a transaction is recorded.
4. For Example for CASH- Debit (+) meaning the normal balances is DEBIT that every time you DEBIT cash it
will increase its balance.

DOLLY VINLUAN-ABASTA,CPA,MBA
Trainer/Assessor – Bookkeeping NCIII
For Exclusive use of Columban College, Inc. – Bookkeeping NC III Trainees and Students.
No part of this Matrix be used in any books without permission of its author/creator (2016)