Scribd
Upload
747 views2 pages

ASP Notes Page 16

The document discusses accounting entries for payments to creditors. It provides an example where a payment of P12,900 to a creditor was recorded as a debit to Accounts Payable for P12,900 and a credit to Cash for P10,200. This understates the Cash account by P2,700. It also confirms that this error would cause unequal totals in the trial balance. Another example shows a payment of P15,000 that was debited to Accounts Receivable instead of Accounts Payable, which would cause unequal totals in the trial balance because both asset accounts (AR and Cash) are affected.

Uploaded by

Jeizel Concepcion
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
747 views2 pages

ASP Notes Page 16

The document discusses accounting entries for payments to creditors. It provides an example where a payment of P12,900 to a creditor was recorded as a debit to Accounts Payable for P12,900 and a credit to Cash for P10,200. This understates the Cash account by P2,700. It also confirms that this error would cause unequal totals in the trial balance. Another example shows a payment of P15,000 that was debited to Accounts Receivable instead of Accounts Payable, which would cause unequal totals in the trial balance because both asset accounts (AR and Cash) are affected.

Uploaded by

Jeizel Concepcion
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

A.

Payment to a creditor was recorded as a debit to Accounts Payable for P12, 900 and as a
credit to cash for P10, 200.

Tell me if an account is overstated, understated, and correctly stated sa trial balance.

Kapag overstated meaning sobra ang amount ng certain account.

Kapag understated kabaliktaran.

Okey ganito. Syempre hindi lang kayo sasagot ng over or under or correct sasabhin nio syempre
kung anong account. Kagaya sa example natin, kung ang tamang account that should be paid sa
creditor ay 12, 900. Overstated or understated ang cash?

A. Payment to a creditor was recorded as a debit to Accounts Payable for P12, 900 and as a
credit to cash for P10, 200.

Cash. UNDERSTATED

Okey cash is understated. By how much?

2,700 pesos po

Okey very good. Does it cause an unequal totals sa trial balance?

Okey. Answer is yes. Obviously, iba ang total. Doon pa lang makikita na ninyo. Pero kung same
amount, pero mali ang account. Does it cause unequal total?

Dito kasi makikita na hindi balanse given the amount na 12,900 and 10,500.

Hindi po pero maling entry siya

Yes. Correct. That is one of the errors that cannot be detected by a trial balance.

Kaya pinabasa ko muna sa inyo. Next error.

Check muna natin if this error causes unequal totals sa t balance.

B. A Payment of P15, 000 to a creditor for an Account Payable was debited to Accounts
Receivable and credited to cash.

Ano sagot? This error causes unequal totals ba?

Yes maam

Bakit unequal?

dapat po ma'am wala pong accounts receivable


Dapat sa account payable lang

Sure ba? Sa total ng T Balance natin unequal sila?

Wait ha. Balikan nga natin ang T Balance.

Saan galing ang balances ng T Balance?

Sa Ledger, tama ba? yes mam

Meaning, enter natin ang debit balances and crrdit balances sa respective column.

B. A Payment of P15, 000 to a creditor for an Account Payable was debited to Accounts
Receivable and credited to cash.

Anong account ang affected?

AR and Cash, both assets.

Nagdagdag sa AR, bawas ang cash.

May effect ba sa debit column?

You might also like