TABLE OF CONTENTS:

cost
CHAPTER 1:
ACctg. & DEBIT & CREDIT
CHAPTER 2:
control JOURNALIZING

CHAPTER 3: T-
ACCOUNTS

CHAPTER 4:
BALANCING
(balance sheet)
Learning Resources by:
#AccountingGroupApproach
CHAPTER 5:
#TheAccountant ACCOUNTING
#Tutor_Michael RELATIONS
Golden Rule:
“Never assume unless otherwise
stated…” – Acccountants

Module prepared by:

PROF. Jhay Heart L.C.
Dela Cruz, IELTSP
MBA Cdt.
 Ready ka na ba Nak?
Game na?
Then lets begin…
Chapter 1 DEBIT – a.k.a. “left”
- ito yung tumutukoy sa D.E.A.L.

DEBIT & [D.E.A.L.]

CREDIT D - rawings

PAALALA: APPLICATION ng “Conceptual E - xpenses

Framework & Acctg. Standards.” [AE3]
A - ssets
~ WAG basahin kung hindi pa cleared
sa’yo ang Chapter1&2 ng AE3 dahil hindi
- L- osses (No Need) Kapag
mo lang maiintindihan. Mapu-frustrate ka
lang. nag-“increase” ang amount ng any type
of Asset, Expense, even Owner’s
Ang module na ito is a form of Drawing (Temporary Withrawal),
“SEQUENCE.”May pattern. that’s Debit.
Maa-apply ang AE4 pag na-recap ang AE3. Ex.
A.Receivable / Current / Asset = Debit.
Ang Chapter 1,2,3 ay mababasa sa
A. for Doubtful Acc. / Contra A. = Credit
“Conceptual Framework & Acctg. Insurance Exp. / Common / Exp. = Debit.
Standards.”
CREDIT – a.k.a. “right
Alam ko nakakalito pero may solusyon. - ito yung tumutukoy sa G.I.R.L.S
The key is "REPETITION.” Nasabi ko ito
[G.I.R.L.S.]
sa AE3 (Part1)
G – ains (No Need)
It takes time to Learn and Understand.
Basahin lamang ng maraming beses.  I - ncome
You need Patience, Perseverance, Sipag,
Tiyaga (at Dasal na rin.) R - evenue

TIP: L - iabilities
"Don't MEMORIZE, INTERNALIZE."
S- tocks / Shares
(Owner’s Equity)
- Kapag nag-“increase” ang amount ng any type Nakasabay? 
of G.I.R.L.S., that’s Credit.
Ex. Q. Papano naman kung mag-“DECREASE”?
A.Payable / Short-term / Liability = Credit.
Owner’s Additional Investment / OE = Credit. Debit pa din ba ang nature ng D.E.A.L.?
Prof. Fee/ Service / Revenue -Income =Credit Credit pa din ba nature ng G.I.R.L.S.?
Apply "Friends" & "Enemies" of OE
ANS. Not anymore.
Who are the "Friends" of OE? This time, it will become "OPPOSITE."

- “Revenue, Income, Gain”

Ex. If decreases… (or nawalan)
- Nature: Credit
A.Receivable / Current / Asset = Credit.
A. for Doubtful Acc. / Contra A. = Debit.
Who are the "Enemies" of OE? Insurance Exp. / Common / Exp. = Credit.
- “Expense, Owner’s Drawings” A.Payable / Short-term / Liability = Debit.
- Nature: Debit Owner’s Additional Investment / OE = Debit.
Prof. Fee/ Service/ Revenue -Income= Debit

Hence, D.E.A.L.= Nature: Credit (when decreases)

when Revenue increases, Credit. G.I.R.L.S. =Nature: Debit (when decreases)
when Income increases, Credit.
But… When INCREASES When DECREASES
when Expense increases,
Debit. DEBIT CREDIT DEBIT CREDIT
when Drawing increases, Debit. D.E.A.L. G.I.R.L.S D.E.A.L. G.I.R.L.S

NOTE: Nakasabay? 
Napansin mo ba na everytime nag- WAG MALILITO NAK HA.
i-“INCREASE” o “nagkaroon” ng isang
entry, napupunta sya sa tamang Nature Kapag ang amount ng isang D.E.A.L. or
nito? G.I.R.L.S. ay nag-INCREASE, NORMAL
Ex. If increases…(or nagkaroon) BALANCE ang tawag. Ibig sabihin, yung
A.Receivable / Current / Asset = Debit. “normal na nature ang aggamitin.”
A. for Doubtful Acc. / Contra A. = Credit. Debit pag D.E.A.L. at Credit pag G.I.R.L.S.
Insurance Exp. / Common / Exp. = Debit.
A.Payable / Short-term / Liability = Credit. Kapag ang amount ng isang D.E.A.L. or
Owner’s Additional Investment / OE = Credit. G.I.R.L.S. ay nag-DECREASE, OPPOSITE
Prof. Fee/ Service / Revenue -Income=Credit BALANCE ang tawag. Ibig sabihin, yung
“opposite na nature ang aggamitin.”
Pag D.E.A.L. = Nature: Debit
Debit pag G.I.R.L.S. at Credit pag D.E.A.L.
Pag G.I.R.L.S. =Nature: Credit
Nakakasabay? If not, Ulit-ulitin mo lang to… A-ssets
L-osses
Hindi pwede sa Accounting ang hula-hula.

CREDIT (G.I.R.L.S.)
Wika nga sa kasabihan ng mga Acctg.
G-ains
Students, “NEVER ASSUME, UNLESS
OTHERWISE STATED.” I-ncome
R-evenues
Wag mag-a-assume. Dapat ALAM. L-iabilities
Dahil LAMANG ang may ALAM! S-tockholder's (or Owner's) Equity
BUSINESS’ POINT OF VIEW

ASSETS EQUITY/CAPITAL = Investment +

Revenue - Expenses – Drawings

Increase in Asset Increase in Equity

Nagkakaroon ng asset ang business -Tumataas ang Equity pag mas malaki
kasi pwedeng ang kita(revenue) kaysa sa
-nanggaling sa inutang niya (ito ang gastos(expenses). Ang tawag dito ay
pautang or investment ng creditors) "Net Income".
-nanggaling sa owner (ito ang initial or -Pwede rin tumaas ang Equity pag
additional investment ng owner) nadadagdagan ang capital(pera o
-galing sa serbisyo/benta gamit) ng business.

Decrease in Asset Decrease in Equity

Nawawalan naman ng asset ang -Bumababa ang Equity pag mas malaki
business kasi pwedeng ang gastos(expenses) kaysa sa revenue
-nagbayad siya ng utang or kita. Ang tawag dito ay "Net Loss".
-ibinalik na yung capital sa owner -Pwede rin bumaba ang Equity pag
(withdrawal by the owner) ibinalik na ang capital(pera o gamit) sa
-may mga gastusin o expenses may-ari. (Withdrawal by the owner)

NORMAL BALANCES: OPPOSITE BALANCES:

(When Increases or pag “nagklaroon”) (When amount decrease or pag “nawalan”)

DEBIT (D.E.A.L.) DEBIT (G.I.R.L.S.)

D-rawings G-ains
E-xpenses I-ncome
R-evenues DEBIT: pag "nagkakaroon" ka.
L-iabilities CREDIT: pag "nawawalan" ka.
S-tockholder's (or Owner's) Equity
CREDIT (D.E.A.L.) (LIABILITY)
DEBIT:pag "nawawalan" ka ng utang.
D-rawings
CREDIT: pag "nagkakaroon" ka ng utang.
E-xpenses
**********************************
A-ssets
L-osses
............................................
"DEBIT AND CREDIT" HERE’S AN EXAMPLE.
1. Bumili ka ng Laptop at nagbayad ka ASSESS YOURSELF!
ng P50, 000
DEBIT: Laptop 50,000
CREDIT: Cash 50,000 3. Binayaran mo na ang utang.

“Nagkaroon ka” ng Laptop, kaya DEBIT DEBIT: Accounts Payable 50,000

“Nawalan ka” naman ng Cash kaya CREDIT CREDIT: Cash 50,000
NOTE: (ASSET) “Nawala na” ang utang (A.P.),
Pag "nagkakaroon" ka ng Asset(or bagay) kaya DEBIT.
= DEBIT Nawalan ka din ng Cash, kaya CREDIT.
Pag "nawawalan" ka ng Asset (or bagay)
*Yehey, wala nang utang.
= CREDIT
**********************************
**********************************
4. Ginamit mo yung Laptop sa business
2. Bumili ka ng Laptop pero utang, mong Accounting Tutorial. Kumita ka
P50,000 ng P20,000 pero "pautang".
DEBIT: Laptop 50,000 DEBIT: A.Receivable 20,000
CREDIT: A.Payable 50,000 CREDIT: S. Income 20,000
“Nagkaroon ka” ng Laptop, kaya DEBIT Nagkaroon ka ng "pautang" or (A.R.)
“Nagkaroon ka” ng utang (A.P), CREDIT
(Asset siya kasi makokolekta mo siya),
NOTE: (LIABILITY or UTANG) kaya DEBIT
Pag "nagkakaroon" ka ng utang = CREDIT Nagkaroon ka din ng kita o income or
Pag "nawawalan" ka ng utang = DEBIT
(Prof. Fee), kaya CREDIT.

REMINDER: NOTE: (INCOME or KITA)

“Baliktad ang ASSET at LIABILITY!” Pag "nagkakaroon" ka ng
Service income = CREDIT
(ASSET) **********************************
5. Nakolekta mo na yung pautang mo 4. Owed office Tables & Chairs, P40,000.
sa tinuruan mong estudyante P20,000. Dr: Furniture and Fixtures P40,000
Cr: Accounts PayableP40,000
DEBIT: Cash 20,000
**********************************
CREDIT: A. R. 20,000
5. BILLED a client for Service, P20,000.
“Nagkaroon ka” ng Cash, kaya DEBIT. Dr: Accounts Receivable P20,000
“Nawalan ka” ng pautang or Cr: Service Income P20,000
(Accounts Receivable), kaya CREDIT. **********************************
******************************* 6. Purchases Office Supplies via Cash. P4,500
Dr: Office Supplies P4,500
ACCOUNTING Cr: Cash P4,500
TUTORIAL - PART 6.1

JOURNALIZIN
G
7. PAID 50% of the amount OWED. (See #3)
1. An owner "opened an account" with BDO Dr: A.Payable P20,000 (P40,000 x 50%)
and deposited P850,000 CASH. He also Cr: Cash P20,000
"invested" two personal COMPUTERS which **********************************
he acquired a year ago for P20,000 each but 8. Francis withdrew cash of P50,000 & Office
w/ a fair market value of P15,000 each. Supplies worth P1,000 for “personal use.”
DEBIT: Cash P850,000 Dr: Owner’s Drawing P51,000 (P50k + P1k)
Office Equipment (P30,000 (P15k x 2) Cr: Cash P50,000
CREDIT: Owner’s Capital P880,000 Office Supplies P1,000
**********************************
(P850k +P30k) 9. Received P5,000 as payment for the
********************************** Services rendered to one of their clients.
2. PAID local “TAXES”, P3,900. Dr: Cash P5,000
Dr: Taxes & Licenses Exp. P3,900 Cr: Service Income P5,000
Cr: Cash P3,900 **********************************
********************************** 10. Collected “one half” (½) of the amount
3. Bought a small Office Bldg. for P500,000. due from client on #5. (See #5)
(giving P250,000 CASH for Mortgage Payable. Dr: Cash P10,000
Dr: Office Building P500,000 Cr: Acc.Rec. P10,000 (P20,000 x ½)
Cr: Cash P250,000 **********************************
Mortgage Payable P250,000 11. Paid "1yr. Rent" for a special machine to
(P500k - P250k) be used in business operations, P30,000.
**********************************
Dr: Prepaid Rent P30,000 #1 P850,000 #2 P3,900
Cr: Cash P30,000
********************************** #9 P5,000 #3 P250,000
12. Paid "1yr. Insurance" of the Office
#10 P10,000 #6 P4,500
Bldg., P25,000.
Dr: Prepaid Insurance P25,000 #7 P20,000
Cr: Cash P25,000
#8 P50,000
**********************************
13. Paid P4,250 for employee’s salary #11 P30,000
Dr: Salaries Expense P4,250
Cr: Cash P4,250 #12 P25,000

ACCOUNTING #13 P4,250

TUTORIAL - PART 6.2 OFFICE EQUIPMENT (Computers)

#1 P30,000

T-ACCOUNTS
- is an informal term for a set of financial
records that uses “double entry”
bookkeeping. The symbol looks like a
letter “T”.

Debit Entry (Dr) Credit Entry (Cr) OWNER’s CAPITAL

#1 P880,000

TAXES & LICENSES EXPENSE (TLE)

#2 P3,900
- Nire-record nito ang amount ng isang
entry na pwedeng may amount sa Debit or OFFICE BUILDING
pwedeng may amount sa Credit.
#3 P500,000
Ex. Connect lang natin ung problem kanina MORTGAGE PAYABLE (M.P.)
sa Journalizing na meron ng amount for
Debit & Credit in questions #1 to #13. #3 P250,000

Now, this is an example of a FURNITURE AND FIXTURES (F&F)

T-ACCOUNTS. #3 P250,000

CASH – P477,350 ACCOUNTS PAYABLE (A.P.) – P20,000

 #7 P20,000 #4 P40,000 #11 P30,000

ACCOUNTS RECEIVABLE(A.R.)P30,000 #12 P25,000

#13 P4,250
#5 P20,000
#10 P10,000
Q. Saan galing ang Cash worth P477,350?
SERVICE INCOME P25,000

#5 P20,000 ACCTG. ENTRIES Dr Cr

#9 P5,000
Cash P477,350
OFFICE SUPPLIES P3,500
Accounts Receivable P10,000
#6 P4,500 #8 P1,000
Prepaid Rent P30,000
PREPAID RENT
Prepaid Insurance P25,000
#11 P30,000
Office Supplies P3,500

PREPAID INSURANCE Office Building P500,000

#12 P25,000 Office Equipment P30,000

SALARIES EXPENSE Furniture & Fixture P40,000

#13 P4,250 Accounts Payable P20,000

NOTE: Mortgage Payable P250,000

Look at the CASH entries.
Owner’s Capital P880,000
As you can see, may mga amount ang Cash
both in Debit and Credit. To get its Total Owner’s Drawing P51,000
Balance, All debit amounts of Cash will be
minus or subtracted by all credit amounts. Service Income P25,000
In equation,
[ Debit – Credit ] Salaries&Wages Exp. P4,250
Ex.
CASH – P477,350 Taxes& Licenses Exp. P3,900

#1 P850,000 #2 P3,900 TRIAL BALANCE 1,175,000 1,175,000

#9 P5,000 #3 P250,000 ANS. Galing ito sa Total amount ng Debit Cash

#10 P10,000 #6 P4,500 “minus” Total amount of Credit Cash.
[ Debit – Credit ]
#7 P20,000 P 865,000 – P 387,650 = P477,350
NOTE:
#8 P50,000
Pag mga D.E.A.L.Entries,
Debit minus Credit.
 Ex. Yung sa Cash. BALANCING (Closing Entries)
- Tha “last applying stage” in
Pag mga G.I.R.L.S.Entries, Basic Accounting.
Credit minus Debit.
- a.k.a. “Closing Entries” dahil dito
Ex. Look at Accounts Payable or A.P.
nagtatapos ang “application” ng
ACCOUNTS PAYABLE (A.P.) – P20,000 Basic accounting.

#7 P20,000 #4 P40,000 Q. Saan ba tayo nagsimula patunkgol sa

A.P. is a form of Liability kaya under sya ng application ng Basic Accounting?
G.I.R.L.S. Hence, [Credit–Debit] ang ANS. Sa Part 5.Debit and Credit.
format. Then nag-proceed na tayo sa:
In equation, 1. Journalizing (Adjusting Entry)
[ Credit – Debit ] 2. T-Accounts at ngayon sa,
P40,000 – P20,000 = P20,000 3. Balancing
SUMMARY: NOTE: Sa pagba-Balancing, may Iba’t
Kung susumahin lahat ng entries from ibang Format ito na dapat ay aware ka:
Questions #1-13 na nai-“Journal” at nai- “T- A. FinancialStatement
Accounts” na, The table below shows the B. Income Statement
Accounting Entries w/ amounts based on its
C. Trial Balance
nature. (Debit-Credit) Go see for yourself and
Na-explain na to. Backread na lang. 
relate how it is done. 
On the other hand,
NOTE: A. FinancialStatement (or Balance Sheet)
FINANCIAL STATEMENT ang tawag sa - is a Statement of “Financial Position”
isang table kapag “Real Accounts” lang B.Income Statement
ang Acctg. Entries. (“Assets, Liabilities, - Statement of “Financial Performance”
& Owner’s Equity” Entries only…) C.Trial Balance
INCOME STATEMENT kapag “Nominal - both Financial & Income Statement.
Accounts” (“Revenue /Income, Expenses F.S. I.S. T.B.
& Owner’s Drawing” Entries only…) Assets Rev/Income Both F.S. &
TRIAL BALANCE both Real & Nominal. I.S. Acctg.
Liabilities Expenses
{[A+ (Exp+OD)] = (L+OE) + (Rev/Inc)} Entries
OE (Capital) OD (Drawing)
ACCOUNTING
TUTORIAL - PART 6.3 - Ex. Look under the table w/ a balancing
amount of P1,175,000
- CLOSING ENTRIES -

BALANCING ACCTG. ENTRIES Dr Cr

(CLOSING ENTRIES) ASSETS
CURRENT ASSETS:
Accounts Receivable P10,000
Cash P477,350
Office Supplies P3,500 3. OWNER'S EQUITY
Prepaid Insurance P25,000 Nagkaroon (+) = CREDIT
Prepaid Rent P30,000 Nawalan (-) = DEBIT
TOTAL CURRENT A. P545,850 4. REVENUE OR INCOME
FIXED ASSETS: Nagkaroon (+) = CREDIT
Furniture & Fixtures P40,000 Nawalan (-) = DEBIT
Office Building P500,000 5. EXPENSES
Office Equipment P30,000 Nagkaroon (+) = DEBIT
TOTAL FIXED A. P570,000 Nawalan (-) = CREDIT
TOTAL ASSETS: 1,184,350 T-ACCCOUNTS
is a “double entry” bookkeeping.
LIABILITIES
The symbol looks like a letter “T”.
SHORT-TERM L.
BALANCING
Accounts Payable P20,000
it balances the amount of Dr & Cr.
TOTAL SHORT-T. L. P20,000
DEBIT:
LONG-TERM L.
1. Assets
Mortgage Payable P250,000
TOTAL LONG-T. L. P250,000 Current A.
TOTALLIABILITIES P270,000 Non-Current A. /
Fixed A.)
OWNER’s EQUITY
2. Expenses
Owner’s Capital P880,000
3. Drawings (Withrawals)
Owner’s Drawing (P51,000)
CREDIT:
TOTAL OE (Capital) (P51,000) P880,000
1. Liabilities
REVENUE/INCOME
Short-term L.
Service Income P25,000
Long-term L.
TOTAL REV/INC. P25,000 2. OE (Capital)
EXPENSES 3. Revenue / Y
Salaries & Wages Exp. P4,250 4. Contra Assets
Taxes & Licenses Exp. NOTE:
P3,900
Add the “amount” ofDebit Entries,
TOTAL EXPENSES P8,150 as same with Credit Entries. If the
TRIAL BALANCE 1,175,000 1,175,000amount of Dr & Cr “equals,” then…
it’s BALANCE! 
RECAPITULATION:
ACCOUNTING RELATIONS
JOURNALIZING 1. CPA Board Exams
1. ASSETS 2. Career Fields in Accounting
Nagkaroon (+) = DEBIT 3. Different Accounting Areas
4. Different Regulatory Bodies
Nawalan (-) = CREDIT 1. CPA Board Exams
2. LIABILITIES Q: SINO ang allowed mag-take ng Phil. CPA Board Exam?
Nagkaroon (+) = CREDIT A:- Yung mga graduate sa course na BSA
- Yung may GOOD MORAL CHARACTER
Nawalan (-) = DEBIT
- Yung hindi napatunayang guilty ng "MORALTURPITUDE"

(like Adultery or Concubinage - pakikiapid)

- Filipino citizen.
Q: Tuwing KAILAN ginaganap ang CPA Board Exam?
A: Dalawang beses sa isang taon. May and October.
Q: Ilan at Ano ang mga SUBJECTS sa CPA board exam ?
A: 6 subjects
- RFBT (Regulatory Framework for Bus. Transactions)
- TAX (Taxation)
- MAS (Management Advisory Services)
- AUDITING (Auditing theory and Auditing problems)
- FAR (Financial Accounting and Reporting)
- AFAR (Advanced Financial Accounting and Reporting)
Q: Paano makapasa sa CPA board exam?
A: General weighted average of 75% and above
(with no grades below 65% in any subject)
Q: Anong mangyayari pag ang Gen. Ave. ay above 75%,
ngunit may grade na below 65% sa ibang subject(s)
A: CONDITIONAL if 75% and above ang at least 4
subjects
-FAILED if 3 subjects and below lamang ang 75% & Up.
*Masasabing CONDITIONAL ang status kapag 75% and
above ang grade niya sa at least 4 subjects (kahit na
ZERO pa ang grade sa natitirang 2 subjects).
*Ang CONDITIONAL examinee ay kailangang mag-exam
ulit para kunin ang di naipasang subject(s) within 2 years
mula sa exam kung saan siya na-conditional.
2. Career Fields in Accounting
A. Public Accounting
B. Commerce and Industry / Private Accounting
C. Academe (Education)
D. Government Accounting
3. Different Accounting Areas
A. Basic Accounting / Bookkeeping
B. Financial Accounting
C. Managerial Accounting
D. Auditing
E. Cost Accounting
F. Government Accounting
4. Different Regulatory Bodies
A. PRC (professional Regulation Commission)
B. PRBOA (Professional Regulatory Board of Accountancy)
C. PICPA (Philippine Institute of Certified Public
Accountants)
D. FRSC (Financial Reporting Standards Council)
E. IASB (International Accounting Standards Board