Owner's Equity and Expense Account

• represents the claim of the owner over the assets of the business after the liabilities have been paid. Two accounts are used to record the owner’s equity/capital; these are the owner’s capital and owner’s drawing. 

  Owner's Equity
•  an account used to record initial and additional investments.  


  Owner's Capital
• an account used to record the personal withdrawal of the owner.

  Owner's Drawing
• an account used to record the salaries and wages paid to employees and workers.  

  salaries and wages expense
• an account used to record the rental expense on the property leased for the period. The lease paid for the property, whether an office, store or shop is recorded in this account. 


  rent expense
• an account used to record utility bills from Meralco, PLDT, BayanTel, Maynilad, and Internet connections.  

  utilities expense
• an account used to record the repair and maintenance cost of equipment including related properties.  

  repair and maintenance expense
• an account used to record the business registration fees such as mayor’s permit, BIR registration, SEC registration, DTI registration, and other local taxes such as community tax, real property tax, professional tax receipt of the key personnel and officers and registration of vehicles and big machinery.  

  taxes and licenses expense
• an account used to record the employment benefits given to employees such as insurance premiums paid by the employer for the benefit of employees.  

  Fringe Benefit Expense
• an account used to record communication expenses incurred by the business. It includes the bills issued by telephone companies

  Telephone Expense
• an account used for magazines and newspapers purchased for the use of the company.  

  Subscription Expense
• an account used to record gasoline and related products such as oil, kerosene, and change oil.  

  Gasoline Expense
• an account used to record insurance premiums paid to insurance companies when the company’s properties are insured and the beneficiary is the company itself  

  Insurance Expense
• an account used to record entertainment, amusement and recreational expenses paid or incurred to entertain guests and visitors of the company for an official activity  


  Representation Expense
• an account used to record the expense portion of the property, plant and equipment due to the time element  

  Depreciation Expense
• an account used to record the provision for the uncollectible portion of the receivable

  Bad debt expense
• an account used to record the cost of janitorial services and the cost of security guards incurred by the company and the services were hired from security and janitorial agencies.  

  Contractor Fee Expense
• an account used to record bank charges such as the penalty and interest incurred because of dishonored checks.  

  Bank Charges
• an account used to record the donations made to the philanthropic activities, sport activities and church and religious activities. 

  Contribution and Donation Expense