Natacc Exam
Natacc Exam
Natacc Exam
2. The sole proprietor, a partner in the partnership, and stockholder in the corporation
and in a one-person corporation are all investors in their own right. TRUE
3. The accountant may use estimates in the financial statements; one example of
estimate is the life of the property. FALSE
4. Accounting principles are rules and procedures that were developed based on
customs, usage, business practice, corporate experience, government interventions,
laws, and opinions of accountants and other professionals. TRUE
5. Chronological order means transactions are recorded based on the date it happened.
TRUE
6. In an Asset account, debit signifies decrease while credit signifies increase. FALSE
8. Accounts and amounts found in the trial balance are extracted from the journal.
FALSE
10. A Balance Sheet can be prepared using two formats: Single Step and Multiple Step.
FALSE
II. MATCHING TYPE (Match column A with Column B) – 10 points
COLUMN A COLUMN B
C1. The owner of the corporation is one person only a. Franchise
H2. Journal b. Accounting equation
J3. “T” – Account c. One-Person Corporation
F4. Acquiring materials to process into finished d. Journalization
products
I5. Transaction recorded in the journal e. Revenue is more than expenses
G6. Official receipt f. Manufacturing concern business
A7. Intangible asset g. Business paper
E8. Net Income h. Simplest form of the account
D9. 1st step in the accounting cycle i. Business transaction
B10. Asset = Liabilities + Owner’s Equity j. Book of original entry
Clarence Decena Delivery Services Company started on December 2021 with a plan of
establishing the Delivery services business that will allow companies to receive essential
supplies without having to physically shop for the items, saving time and offering convenience
for employees. The business had the following transactions on the first month of operation in
December 2021:
Dec. 1 Clarence invested 200,000 and deposited the amount under the current account of the
business. He also invested his own car with the current fair market value of P300,000.
1 Bought one unit computer and printer for P30,000 cash for office use.
2 Paid the following regulatory fees: P6,500 for mayor’s permit, P500 for BIR registration fees
and DTI registration fees of P140.
3 Paid P21,000 for the advance payment for one month and two months security deposit of
security guards.
4 Bought computer table, office table, chairs, filing cabinet, and other furniture for office use
for cash, P50,000.
5 Bought office supplies, stapler, puncher, and other office supplies for cash P4,000 for office
use.
6 Paid P8,000 for the neon light bearing the name of the shop.
7 Hired office clerk with a salary of P12,000 per month and two delivery boys with a starting
salary of P12,000 per month.
8 Purchased two motorcycles. Terms P50,000 down payment with monthly amortization of
P10,000. Amortization will start on January 2, 2022 for 12 months.
9 Paid P30,000 for cost of advertisement such as flyers, tarpaulin, and radio advertisement.
10 After a week of preparation, Clarence Decena formally opened the business and spent
P10,000 for food in the opening ceremony.
11 On the first day of the operation, Clarence received P18,000 from clients.
15 Paid salary of employees P7,500 for one week, net of withholding tax of P1,200; paid
P2,000 for the office supplies.
20 For the last two weeks he received P120,000 from customers.
30 Spent total amount for gasoline, P3,000.
31 Paid salary of the personnel, P18,000, net of P300 SSS premium, and P200 PhilHealth
premiums.
2020
1 CASH IN BANK 101 P200,000
CAR AND VEHICLE
JERICHO LANCE, CAPITAL 106 300,000
TO RECORD INITIAL INVESTMENT
P500,000
CASH IN BANK
DATE PARTICULAR F DEBIT DATE PARTICULAR F CREDIT
2020
9 ADVERTISING P1 30,000
30 GASOLINE P2 3,000
OFFICE EQUIPMENT
DATE PARTICULAR F DEBIT DATE PARTICULAR F CREDIT
OFFICE SUPPLIES
DATE PARTICULAR F DEBIT DATE PARTICULAR F CREDIT
P6,000
ADVERTISING EXPENSE
DATE PARTICULAR F DEBIT DATE PARTICULAR F CREDIT
48,000
MOTORCYCLE
DATE PARTICULAR F DEBIT DATE PARTICULAR F CREDIT
ACCOUNTS PAYABLE
DATE PARTICULAR F DEBIT DATE PARTICULAR F CREDIT
SERVICE INCOME
DATE PARTICULAR F DEBIT DATE PARTICULAR F DEBIT
138,000
SALARY EXPENSE
DATE PARTICULAR F DEBIT DATE PARTICULAR F DEBIT
27,200
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