Balance- Sheet- Accounts PDF

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BALANCE SHEET ACCOUNTS ( Per manentaccount s )

ASSETS (current and non- current) Current assets - refer to all assets that are expected to be realized, sold or consumed within the enterprises’ normal operating cycle. Cash – the account used to describe money, either in paper or in coins. (checks, postal money orders, bank drafts and treasury warrants). Petty Cash Fund – the account title used for the money placed and set aside for petty or small expenses. Notes Receivable –promissory note that is received by the business from the customer arising from rendering of services, sale of merchandise, etc. Accounts Receivable – the account title used for amounts collectible from customers arising from the services rendered, sale of goods on credit/account. This constitutes an oral or verbal promise to pay by a customer or client. Allowance for bad debts – this is an “asset” or a “contra asset” account. It provides for possible losses from uncollected accounts. This is not an asset but is classified as such because it is shown as a deduction from the Accounts Receivable which is a Current Asset account. Accrued Interest income – the account title used for interest earned on a Notes Receivable which is not yet collected. Advances to Employees – the account title used for amounts collectible from employees for allowing them to make cash advances which are deductible against their salaries and wages. Inventories – these are assets which are (1) held for sale in the ordinary course of business; (2) in the process of production for such sale; or (3) in the form of materials or supplies to be consumed in the production process or in the rendering of services. Prepaid Expenses – account title used for expenses already paid but is not yet incurred. (Prepaid rental, prepaid advertising, and prepaid advertising). Unused Supplies – account title used for cost of stationery and other supplies purchased for use but are left on hand and still unused. Non- Current Assets Land – account title used for the site where the building used as office or store is constructed. Building – account title used for a finished construction owned by the business where operations and transactions took place. Equipment – includes calculators, typewriters, adding machines, computers, steel filing cabinets and the like. If these are used in the office, the account title to be used is “office equipment’. Trucks, jeeps, vans, automobiles and other kinds of motor vehicles are used exclusively for delivering goods; the account title is “Delivery Equipment”.

Furniture and Fixtures – includes chairs, tables, counters, display cases and the like. If these are used in the office, the account title is “office furniture & Fixtures” and if these are used in store, the account title is “store furniture & fixtures” Accumulated Depreciation – a “contra-asset” account. Shown as a deduction from the property and equipment.

LIABILITIES (current and non- current) Current liabilities - are what a company currently owes to its suppliers and creditors. These are short-term debts, all due in less than a year. Accounts payable - This is the money the company currently owes to its suppliers, Accrued expenses –expenses already incurred but not yet paid. Notes Payable – the same as accounts payable but only the obligation is evidenced by a promissory note. The enterprise is the one who issued the note. SSS Premium Payable – refers to the amount due and payable by the enterprise to the Social Security System. This is composed of both employer and employees’ share of SSS contributions. Phil health Premium Payable – refers to the amount due and payable by the enterprise to the Phil health Insurance Corporation. This is composed of both employer and employees’ share of Phil health contributions. Pag- Ibig Premium Payable – refers to the amount due and payable by the enterprise to the Home Development Mutual Fund. This is composed of both employer and employees’ share of Pag - Ibig contributions. Withholding Tax Payable – account title used referring to the amount due and payable by the enterprise to the Bureau of Internal Revenue for the tax withheld from employees Pre – collected or Unearned Income – account title used for an income collected or received in advance and is not yet earned. Non- current liabilities – opposite of current liabilities. Obligation that is not required to be satisfied within 12 months of the balance sheet date. Also called long-term liability. Notes Payable(long term) – same with that of Notes Payable (short term) but only, this requires payment for more than a year. Mortgage Payable – a financial obligation of the enterprise which requires a fixed or tangible property to be pledged as collateral to ensure payment.

OWNER’S EQUITY Llanes, Capital

Capital – is the amount of the business assets owned by the business owners. The calculation for owner’s equity is assets minus liabilities. In a simplified example, if the value of the business assets is P3, 500,000 and the total business liabilities are P2, 500,000, the owner’s equity is P1, 000,000. These values are expressed on the business balance sheet, which shows assets on the left and liabilities and owners equity on the right. LLANES, Withdrawal Withdrawal – the owner’s withdrawal is likewise indicated by the use of the owner’s name with the word “drawing” or “personal” written after the name which is separated by s “comma”. Income & Expense Summary – a temporary account created at the end of the accounting period where Income and expenses are temporarily closed to this account.

INCOME STATEMENT ACCOUNTS Sales – in general, this represents revenue derived from the sale of merchandise. Service Income – in general, this is the account title used for all types of income derived from rendering services. Sometimes the account title used is “service revenue”. Other specific income account titles used are: Professional Income – the account title generally used by professionals for income earned from the practice of their profession or maybe specified as “accounting or auditing fees income” for accountants, “legal fees income” for lawyers, “dental fees income” for dentists, “medical fees income” for doctors, etc. Rental Income – for income earned on buildings, space or other properties owned and rented out by the business as the main line of its activity. Interest Income – for income received by the business arising from an amount of money borrowed by a customer and is usually covered by a promissory note. Miscellaneous Income – for income earned by the business which is not the main line of its activity and could not be clearly classified.

EXPENSES Cost of Sales or Cost of Goods Sold – cost to produce and sell the goods. Interest Expense – an expense incurred from borrowed money. Salaries Expense - account title used for compensation given to employees. Rent Expense – account title used for the amount paid or incurred for use of property, usually premises. Repairs and Maintenance – account title used for expenses incurred in repairing or servicing the buildings, machineries, vehicles, equipment, etc., which are owed by the business.

Office Supplies – the stationery, envelopes, clips, fasteners, etc., used in the office will bear the account title as “office supplies”, if use in the store “store supplies” or another title may be used to describe the kind of supplies used. Bad Debts – account title used for the anticipated loss that the business may incur arising from uncollectible accounts. Depreciation Expense – account title used for the allocated portion of the cost of property and equipment or fixed assets. Taxes and Licenses – account title used for the amount paid for business permits, licenses and other government dues except the Income Tax which is not allowable by law as a deduction. Insurance Expense – account title used for the expired portion of the insurance premium paid. Utilities Expense – account title used for telephone, light and water bills. Also included is gasoline, lubricants and oil. SSS Contribution – account title used for the employer’s share on SSS Contribution. Phil Health Contribution – account title used for the employer’s share on Phil Health Contribution. Pag – Ibig Contribution – account title used for the employer’s share on Pag – Ibig contribution. Miscellaneous Expense – account title used for the amount paid as expense which is not significant enough to warrant a particular classification....