Drawing

Increase in
Drawings is debited .

Decrease in
Drawing is credited .

Separate Entity principle ,

legal perspective
Accounting perspective .

① Sole
proprietorship
:

② Partnership :

③ Corporations : →
artificial person

Balance sheet
.

Assets liabilities
cash I
✗

$31
Fixed Assets 4

{ E9Y→±T
<
$10T IT
$71
-

$101
Historical cost principle .

'

Rs wi > Objectivity

[
t, →
subjectivity
20 years

}
-
Asset Balance
-

liability sheet
E9uity
wings
-

Transaction and event : •

Revenue
E✗ { statement
Income
-
?⃝
 1¥ Salaries Expense Alc 500,000
Cash Afc 500,000

Vehicle Afc 11000,000

Cash Alc
500,000 Compound
Albay able Alc szqooo Entry
Bought car
Reg .

# '
027 from ABC .
paid
50016 mi Cash the ,
remainder to be paid ni 6 months .

Ist fan -

,
2021 :

cash T by $80,000 → Asset T → debited

Equity t
by $80,000 → credited Reve①
Balance sheet
Ahto repair
2×-1 - 2021
Assets liab . and Equity

10,600 Nl $30
cash payable ,
ooo

pre-paid Dent 6,000 A "" °

7,000
Land 52,000
Building 36,000 T liabilities $3#o=
Tools d uipment 13,800-12,0001-1
37,000
A / Receivable 1,200 T
Equity $80,800
-

[Link]#-ist-ouo
Total Assets Total
¥000

$1107000
8oo $o
•
Assets , liabilities , Equity ,
revenue or
expenses
-

2nd of fan $6,000 .

advance rent for
→ 6 months as .

-
Land for $52,000 Cash .

Building for $36,000 → $6,000 → $30,000 hi t months

.

purchases tools and Equipment for $13,800 on credit

.

- partial payment of Al payable 7 $6,800

Collection of Revenue from customers $2,200
=
-
?⃝
 Date Alc title Dr Cr .

1-1-2021 Cash AIG 80,000

Equity AK 80,000
2-
pre-paid Rent AK 6,000
Cash Alc 6,000

3- Land Alc 52,000

Cash Alc 52,000

5- Building Alc 36,000

Cash AK 6,000
Nl payable Alc 30,000

Tools and Equipment AIC 13,800

Al
Payable Alc 13,800

A / Receivable Ale
' 1800
tools a equipment Alc 1,800

25 - Cash Ale 600

At Receivable 600

26 -
A / payable Alc 6,800
cash Alc 6,800

30 -

Cash Ale 2,200

Revenue Ale 2,200

30 -
Salaries Expense AIC 1,200
utility Expense Ala 200
Cash Ale 1,400

1- 2- Promotion Expense Alc 360

Cash Ako 360

2- 2- promotion Expense AK 470

At payable 470
Matching Principle : Accounting Period

$##fJan Feb March April May June

1 '
1

F÷÷→E÷÷É÷
i

Financial statements $3④

ÉÉ÷*
[Link]
Revenue
cash

Net income

promotion Expense