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Set A: Proving The Double Entry Bookkeeping Model

This document provides two practice sets for bookkeeping. Set A involves recording business transactions for Dr. Lodi Clinic in a double-entry journal. The transactions include investing capital, paying expenses, purchasing assets, borrowing money, rendering and collecting payment for services. Set B involves proving the accounting equation for various transactions such as investing cash, purchasing equipment, issuing a note payable, billing customers, collecting accounts receivable, paying expenses, and withdrawing funds. The goal is to prove that the accounting equation (Assets = Liabilities + Owner's Equity) balances after each transaction.

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180 views1 page

Set A: Proving The Double Entry Bookkeeping Model

This document provides two practice sets for bookkeeping. Set A involves recording business transactions for Dr. Lodi Clinic in a double-entry journal. The transactions include investing capital, paying expenses, purchasing assets, borrowing money, rendering and collecting payment for services. Set B involves proving the accounting equation for various transactions such as investing cash, purchasing equipment, issuing a note payable, billing customers, collecting accounts receivable, paying expenses, and withdrawing funds. The goal is to prove that the accounting equation (Assets = Liabilities + Owner's Equity) balances after each transaction.

Uploaded by

Zymon Andrew Maquinto
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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St.

Anthony Montessori Senior High School


FUNDAMENTALS OF ABM2

Bookkeeping Practice Set 1

Set A: Proving the Double Entry Bookkeeping Model

Analyze the following business transactions of Dr. Lodi Clinic, a sole proprietorship. Record the transactions
in a 2-column journal by following the rules of Double Entry Bookkeeping. Show the column totals of Debit
and Credit columns to prove the model.

Jan 1 Dr. Lodi invested P100,000 into the business


3 Dr. Lodi paid P7,500 to city hall for a business permit
5 Dr. Lodi paid P10,000 for a one-year insurance
10 Dr. Lodi purchased computer equipment amounting to P20,000 for the clinic
11 Dr. Lodi acquired furniture and fixtures on account amounting to P15,000
15 Dr. Lodi borrowed P30,000 from the bank by signing a note
17 Dr. Lodi rendered professional service to various patients and received P35,000 cash
and half on charge
20 Dr. Lodi rendered medical services to various patients. The total proceeds amounted to
P21,000. These patients had no cash and wrote a note to pay Dr. Lodi on Jan 30, 2017
21 Dr. Lodi paid 1/3 of the bank loan.
30 Dr. Lodi paid for remuneration of his clerk worth P15,000
31 Dr. Lodi paid P10,000 rent, P2,500 for utilities
` 31 Dr. Lodi collected P21,000 from various patients who owed him, with 3% interest
for late payment

Set B: Proving the Accounting Equation

For each of the following items, fill in the net effect on assets, liabilities and equity. Write the correct
amount and prove the accounting equation using the structure below: (Use short bond paper for your
answers in this set.)

Trans # Assets Liabiities Owner’s Equity


1 12000 12000
(5000)
2
5000
Total 12000 12000 0

1. Owner started the company by investing P100,000 cash in a company bank account.
2. Purchased equipment for P25,000, paying cash
3. Purchased furniture for P12,000 paying P3,000 cash and issuing note payable for the remaining P9000
4. Billed customers for professional services worth P3,000
5. Billed customers for professional services and received P18,000
6. Collected P9,000 cash from a former accounts receivable
7. Paid P18,000 of operating expenses in cash P12,000 for salaries
8. Owner withdrawn P5,000 for personal use

Proprietary & Exclusive to St. Anthony Montessori PAGE 1 of 1

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