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    Fabm 1 Lesson 3 Cont

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    Cyrene Mediana
    The document discusses five models of accounting transactions: 1. Increase in asset and capital from an investment or revenue 2. Increase in asset and liability from borrowing money or purchasing on credit 3. Decrease in asset and capital from expenses or owner withdrawals 4. Decrease in asset and liability from loan or account payments It provides examples for each model and the corresponding journal entries to record the transactions.

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    Fabm 1 Lesson 3 Cont

    Uploaded by

    Cyrene Mediana
    168 views30 pages
    The document discusses five models of accounting transactions: 1. Increase in asset and capital from an investment or revenue 2. Increase in asset and liability from borrowing money or purchasing on credit 3. Decrease in asset and capital from expenses or owner withdrawals 4. Decrease in asset and liability from loan or account payments It provides examples for each model and the corresponding journal entries to record the transactions.

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    fabm 1 lesson 3 cont

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    The document discusses five models of accounting transactions: 1. Increase in asset and capital from an investment or revenue 2. Increase in asset and liability from borrowing money or purchasing on credit 3. Decrease in asset and capital from expenses or owner withdrawals 4. Decrease in asset and liability from loan or account payments It provides examples for each model and the corresponding journal entries to record the transactions.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    168 views30 pages

    Fabm 1 Lesson 3 Cont

    Uploaded by

    Cyrene Mediana
    The document discusses five models of accounting transactions: 1. Increase in asset and capital from an investment or revenue 2. Increase in asset and liability from borrowing money or purchasing on credit 3. Decrease in asset and capital from expenses or owner withdrawals 4. Decrease in asset and liability from loan or account payments It provides examples for each model and the corresponding journal entries to record the transactions.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 30

    The

    Accounting
    Equation
    FABM 1 – LESSON 3 CONTINUATION
    Model 1: Increase in asset, increase in capital (investment)
    Paul contributed office chairs and table into his business Via Nar
    Services, amounting to Php50,000
    Paul contributed office chairs and table into his business Via Nar
    Services, amounting to Php50,000

    Journal Entry:
    Model 2: Increase in asset, increase in capital (revenue)
    Via Nar Services rendered services to its customer for cash
    amounting to Php50,000.
    Via Nar Services rendered services to its customer for cash
    amounting to Php50,000.

    Journal Entry:
    Via Nar Services rendered services on account to its customer,
    amounting to Php75,000.
    Via Nar Services rendered services on account to its customer,
    amounting to Php75,000.

    Journal Entry:

    75
    75
    Via Nar Services rendered services to its customer, amounting to
    Php75,000. The customer made a 30% down payment and the
    balance on account.
    Via Nar Services rendered services to its customer, amounting to
    Php75,000. The customer made a 30% down payment and the
    balance on account.

    Journal Entry:
    Via Nar Services rendered services on account to its customer and
    the customer has sign a promissory note amounting to Php30,000.
    Via Nar Services rendered services on account to its customer and
    the customer has sign a promissory note amounting to Php30,000.

    Journal Entry:
    Model 3: Increase in asset, increase in liabilities
    Via Nar Services borrowed money from the Bank X amounting to
    Php300,000 to finance its operation.
    Via Nar Services borrowed money from the Bank X amounting to
    Php300,000 to finance its operation.

    Journal Entry:
    Via Nar Services purchased a computer at SY Appliances Center
    amounting to Php35,000 on account.
    Via Nar Services purchased a computer at SY Appliances Center
    amounting to Php35,000 on account.

    Journal Entry:
    Via Nar Services
    purchased a
    photocopier from
    SY Appliances
    Center amounting
    to Php65,000 under
    the terms of 10%
    down payment and
    the balance on
    account.
    Via Nar Services Journal Entry:
    purchased a
    photocopier from
    SY Appliances
    Center amounting
    to Php65,000 under
    the terms of 10%
    down payment and
    the balance on
    account.
    Model 4: Decrease in assets, decrease in capital
    Via Nar Services paid rental expenses for the month amounting to
    Php4,500.
    Via Nar Services paid rental expenses for the month amounting to
    Php4,500.

    Journal Entry:
    Paul, the owner, withdrew Php2,000 for personal use.
    Paul, the owner, withdrew Php2,000 for personal use.

    Journal Entry:

    2,000
    2,000
    Model 5: Decrease in assets, decrease in liabilities
    Via Nar Services paid its loan account with Bank X amounting to
    Php300,000.
    Via Nar Services paid its loan account with Bank X amounting to
    Php300,000.

    Journal Entry:
    Via Nar Services paid its account with SY Appliances Center
    amounting to Php70,000.
    Via Nar Services paid its account with SY Appliances Center
    amounting to Php70,000.

    Journal Entry:

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