Professional Documents
Culture Documents
Lesson 4-3
Objectives:
Analyze transactions with the
use of the debit and credit in T-
accounts
Use of T-Accounts
An Account is a form of record that summarizes the increase
or decrease of any specific accounting value. The simplest
form of an account is the T-account because the accounting
equation resembles the capital letter T. It is an informal tool
used to analyze the effect of a transaction in the
assets,liabilities,owners equity,revenue and expenses.
Cash Ong,
5/2 300,000 Capital
5/2 300,000
May 3 Gisel Ong issued a promissory note for a P100,000 loan
from Allay Bank. The note carriers a 12% interest per
annum. The interest and the principal are payable after one
year.
Rules Debit increase in assets. Credit increases in
liabilities.
Accnts. Payable
5/5 28,000
May 6 Gisel Ong rented office space and pais two
months rent in advance, all costing P18,000
Rules Debit increase in assets. Credit decreases in assets.
Cash Accnts.
5/2 300,000 5/5 18,000 Receivable
5/11 120,000 5/15 50,000
5/3 100,000 5/5 12,200
5/15 50,000 5/6 18,000
5/7 10,800
5/12 3,000
May 18 Gisel Ong withdrew P18,000 for personal
use.
Rules Debit decrease in owners equity. Credit decreases
in assets.