This document provides an introduction to basic accounting concepts for non-accountants. It explains the rules for debiting and crediting accounts, including increases and decreases to assets, expenses, liabilities, equity, and revenues. It also includes examples of journal entries to record various business transactions like purchasing supplies, paying salaries, taking out a loan, providing services, and more. The goal is to demonstrate how to properly record these types of events according to standard accounting principles.

1. BASIC ACCOUNTING FOR NON-ACCOUNTANTS
DIVINE GRACE C.
MARTINEZ, LPT
FACULTY, BUSINESS
HIGH SCHOOL

2. Changes
in Asset
An increase in
Asset is
DEBITED,
decrease in
Asset is
CREDITED
Rules on Debits & Credits | Journal
Entries

3. Post.
Ref.
JOURNAL
Date Description Debit Credit
Page 1
1
2
3
4
Apr. 1
2019
Furniture and Fixture 78 000 00
Cash 78 000 00
On April 1, 2019, the company
purchased furniture and fixture for a
total of P78,000. The entire amount
was paid in cash.
Rules on Debits & Credits | Journal
Entries

4. Post.
Ref.
JOURNAL
Date Description Debit Credit
Page 1
1
2
3
4
Apr. 5
2019
Supplies 4 500 00
Cash 4 500 00
On April 5, 2019, the company
purchased service supplies
amounting to P4,500 cash.
Rules on Debits & Credits | Journal
Entries

5. Changes in
Expense
An increase in
Expense is
DEBITED,
decrease in
Expense is
CREDITED
Rules on Debits & Credits | Journal
Entries

6. Post.
Ref.
JOURNAL
Date Description Debit Credit
Page 1
1
2
3
4
Apr. 15
2019
Salaries Expense 20 000 00
Cash 20 000 00
On April 15, 2019, the company paid
the salaries of the employees for
April, P20,000 cash.
Rules on Debits & Credits | Journal
Entries

7. Post.
Ref.
JOURNAL
Date Description Debit Credit
Page 1
1
2
3
4
Apr. 30
2019
Rent Expense 12 000 00
Cash 12 000 00
On April 30, 2019, the company paid
rent for April, P12,000 cash.
Rules on Debits & Credits | Journal
Entries

8. Changes in
Liability
An increase in
Liability is
CREDITED,
decrease in
Liability is
DEBITED
Rules on Debits & Credits | Journal
Entries

9. Post.
Ref.
JOURNAL
Date Description Debit Credit
Page 1
1
2
3
4
May 8
2019
Cash 50 000 00
Loans payable 50 000 00
On May 8, the company acquire cash
loan from the bank amounting to
P50,000.
Rules on Debits & Credits | Journal
Entries

10. Post.
Ref.
JOURNAL
Date Description Debit Credit
Page 1
1
2
3
4
May 23
2019
Supplies 5 000 00
Accounts payable 5 000 00
On May 23, the company purchased
supplies on account amounting to
P5,000.
Rules on Debits & Credits | Journal
Entries

11. Changes in
Equity
An increase in
Equity is
CREDITED,
decrease in
Equity is
DEBITED
Rules on Debits & Credits | Journal
Entries

12. Post.
Ref.
JOURNAL
Date Description Debit Credit
Page 1
1
2
3
4
May14
2019
Cash 40 000 00
Owner’s Capital 40 000 00
On May 14, the owner invested
additional P40,000 cash into the
business.
Rules on Debits & Credits | Journal
Entries

13. On May 31, 2019, the owner withdrew
P20,000 for personal use.
14
15
16
17
May 31
2019
Owner, Drawing 20 000 00
Cash 20 000 00
Rules on Debits & Credits | Journal
Entries

14. Changes in
Revenue
An increase in
Revenue is
CREDITED,
decrease in
Revenue is
DEBITED
Rules on Debits & Credits | Journal
Entries

15. Post.
Ref.
JOURNAL
Date Description Debit Credit
Page 1
1
2
3
4
June10
2019
Cash 25 000 00
Service Income 25 000 00
On June 10, 2019, the company
rendered services and received
P25,000 cash.
Rules on Debits & Credits | Journal
Entries

16. Post.
Ref.
JOURNAL
Date Description Debit Credit
Page 1
1
2
3
4
June15
2019
Cash 15 000 00
Service Income 15 000 00
On June 15, 2019, the company
rendered services and received
P15,000 cash.
Rules on Debits & Credits | Journal
Entries