JOURNALIZING TRANSACTIONS

DEBIT : VALUE RECEIVED

CREDIT : VALUE PARTED WITH
 Account Classifications

• Assets DR
ALWAYS
• Liabilities CR
CONSIDER • Owner’s Equity / Capital CR
YOURSELF AS THE • Drawing / Withdrawals DR
“BUSINESS” • Income / Revenue CR
• Expenses DR
 TRANSACATIONS:

• Purchased / Bought
ALWAYS • Sold
CONSIDER • Paid
YOURSELF AS THE
“BUSINESS” • Collected
• Rendered Services
 Dr. Alegre
invested cash
Cash 2,000,000 amounting to
Office Furniture 2,500,000 P2,000,000 and
Alegre, Capital 4,500,000
a clinic
furniture worth
P2,500,000.
 Bought
Supplies 100,000
supplies
Cash 100,000
for cash,
P100,000
.
 Bought office
equipment on
account
Office Equipment 750,000 amounting to
Cash 200,000 750,000, paying
Note payable 550,000
200,000 and
issued a note for
the balance.
Office Equipment 750,000
Cash 200,000 Full payment
Note payable 550,000
of the note
Note payable 550,000
issued from
Cash 550,000 the last
transaction,
P550,000.
Cash 50,000
Accounts Receivable 60,000 Rendered services
Medical Fess 110,000
and these are the
medical fees income
Cash 50,000
Medical Fees 50,000 for the week:
Accounts Receivable 60,000
Medical Fees 60,000
Cash 50,000
On account 60,000
Cash 50,000
Accounts Receivable 60,000
Medical Fess 110,000 Collected in
full the
Cash 60,000 patients’
Accounts Receivable 60,000
accounts
from last
transaction.
 Paid
Taxes and Licenses 20,000
taxes
Cash 20,000
and
licenses,
P20,000.
 The doctor
withdrew
Alegre, Drawing 15,000 for his
Cash 15,000
personal
use,
P15,000.
 TRANSACTION DR CR
INVESTMENT ASSET e.g. Cash, Equipment CAPITAL
BOUGHT (CASH) ASSET / PURCHASES CASH
BOUGHT (ON ACCOUNT) ASSET / PURCHASES LIABILITY e.g. Account
Payable, Note Payable
PAYMENT OF AN ACCOUNT LIABILITY e.g. Account CASH
Payable, Note Payable

SOLD / RENDERED CASH INCOME / REVENUE

SERVICES (CASH)
SOLD / RENDERED ACCOUNTS RECEIVABLE / INCOME / REVENUE
SERVICES (ON ACCOUNT) NOTE RECEIVABLE

COLLECTION OF AN CASH ACCOUNTS RECEIVABLE /

ACCOUNT NOTE RECEIVABLE
PAYMENT OF EXPENSES EXPENSES CASH
WITHDRAWAL DRAWING / WITHDRAWAL CASH
TRANSACTION DR CR
INVESTMENT ASSET e.g. Cash, CAPITAL
Equipment
BOUGHT (CASH) ASSET / PURCHASES CASH 1. Vega deposited P200,000 as initial
BOUGHT (ON ASSET / PURCHASES LIABILITY e.g.
investment under savings account.
ACCOUNT) Account Payable, 2. Bought equipment for cash, P50,000.
Note Payable
PAYMENT OF AN LIABILITY e.g. Account CASH
3. Rendered laundry income to various
ACCOUNT Payable, Note Payable customers, P5,000.
4. Bought supplies on account, P10,000.
SOLD / CASH INCOME / REVENUE
RENDERED 5. Withdrew cash for personal use,
SERVICES (CASH)
P3,000.
SOLD /
RENDERED
ACCOUNTS
RECEIVABLE / NOTE
INCOME / REVENUE
6. Paid the account for supplies in item
SERVICES (ON RECEIVABLE no. 4.
ACCOUNT)
7. Billed various customers for laundry
COLLECTION OF
AN ACCOUNT
CASH ACCOUNTS
RECEIVABLE / NOTE
income, P4,000.
RECEIVABLE 8. Paid salaries to employees, P20,000.
PAYMENT OF
EXPENSES
EXPENSES CASH
9. Collected the account in item no. 7.
WITHDRAWAL DRAWING / CASH
WITHDRAWAL