DATE PARTICULARS DEBIT CREDIT

Jan. 1 Merchandise Inventory 200,000

Cash on Hand 100,000
Cash in Bank 400,000
C. Lopez, Capital 700,000
Initial Investment

2 Rent expense 25,000

Cash in bank 25,000
Issuance of check for rent deposit

3 Purchases 246,400
Input tax (246,400 x 12%) 29,568
Accounts payable 275,968
2/10, n/30 from Hong Kong distributor

Freight in 1,540
Input tax (1,540 x 12%) 185
Accounts payable 1,725
Freight prepaid

4 Purchases 38,032
Input tax (38,032 x 12%) 4,564
Accounts payable 42,596
2/10, 1/15, n/30 from Folks wear
5 Freight in (1,440 / 1.12) 1,286
Input tax (1,286 x 12%) 154
Cash on Hand 1,440
Fob shipping point, freight collect

6 Accounts receivable 8,960

Sales (8,960 / 1.12) 8,000
Output tax (8,000 x 12%) 960
2/10, n/30 to Sari Store

7 Accounts payable 1,800

Purchase returns and allowances (1,800 / 1.12) 1,607
Input tax (1,607 x 12%) 193
To record return of merchandise

11 Accounts payable (275,968 + 1,725) 277,693

Cash in bank 272,174
Purchase discount (246,400 x 2%) 4,928
Input tax (4,928 x 12%) 591
Paid in full to Hong Kong account

14 Cash in bank 15,680

Sales (15,680 / 1.12) 14,000
Output tax (14,000 x 12%) 1,680
Cash Sales

15 Salaries expense 28,000

Cash on hand 28,000
Paid salaries
16 Accounts payable (42,728 - 1,800) 40,796
Cash in bank 40,388
Purchase discount (36,417 x 1%) 364
Input tax (364 x 12%) 44
Paid in full our account to Folks wear

17 Cash in bank 8,960

Accounts receivable 8,960
Full Collection of Sari Account

18 Cash in bank 16,800

Sales (16,800/1.12) 15,000
Output tax (15,000 x 12%) 1,800
Cash sales

19 Sales return and allowances (12,320 / 1.12) 11,000

Output tax (11,000 x 12%) 1,320
Cash on hand 12,320
Cash refund

20 Accounts receivable 33,600

Sales (33,600 / 1.12) 30,000
Output tax (30,000 x 12%) 3,600
2/10, n/30 to Robinson’s

Accounts receivable 1,456

Cash on hand 1,456
Fob shipping point, prepaid freight

21 Cash in bank 9,520

 Sales (9,520 / 1.12) 8,500
Output tax (8,500 x 12%) 1,020
Cash sales

22 Sales return and allowances (4,704 / 1.12) 4,200

Output tax (4,200 x 12%) 504
Accounts receivable 4,704
To record sales return

23 Bank service charges 1,125

Cash in bank 1,125
To record service fee charges

24 Utilities expense 5,650

Rent expense 15,000
Cash on Hand 20,650
Paid utilities and rent

25 Salaries Expense 28,000

Withholding taxes payable 1,433
SSS premium payable 1,260
PhilHealth premium payable 490
Pag – ibig contribution payable 200
Cash on hand 24,617
Paid salaries less payroll tax liabilities

28 Rent expense 12,500

Cash in bank 12,500
Paid rent
 30 Cost of Goods Sold 553,000
Merchandise Inventory 553,000
To record goods on hand

ACCOUNTS PAYABLE

HONGKONG DISTRIBUTOR
DATE EXPLANATION DEBIT CREDIT BALANCE
3 Purchase Journal 275,968 275,968
3 General Journal 1,725 277,693
11 Cash Disbursement Journal 277,693 0

FOLKS WEAR
DATE EXPLANATION DEBIT CREDIT BALANCE
4 Purchase Journal 42,596 42,596
7 General Journal 1,800 40,796
16 Cash Disbursement Journal 40,796 0

ACCOUNTS RECEIVABLE

SARI STORE
DATE EXPLANATION DEBIT CREDIT BALANCE
6 Sales Journal 8,960 8,960
17 Cash Receipts Journal 8,960 0
,
ROBINSON
DATE EXPLANATION DEBIT CREDIT BALANCE
20 Sales Journal 33,600 33,600
20 Cash Disbursement Journal 1,456 35,056
22 General Journal 4,704 30,352

GENERAL LEDGER

ACCOUNTS RECEIVABLE CONTROL ACCOUNT

DEBIT CREDIT
44,016 13,664
BALANCE = 30,352

ACCOUNTS PAYABLE CONTROL ACCOUNT

DEBIT CREDIT
320,289 320,289
BALANCE = 0
DATE PARTICULARS DEBIT CREDIT
July 1 Merchandise Inventory GJ 80,000
Office equipment 150,000
Accounts payable 6,000
V. Reyes, Capital 224,000
Initial investment

2 Cash on Hand CRJ 50,000

Cash in bank 200,000
V. Reyes, Capital 250,000
Additional investment

5 Purchases (22,400 / 1.12) PJ 20,000

Input tax (20,000 x 12%) 2,400
Accounts payable 22,400
2/10,1/15, n/30 from Sherwin Co.

6 Freight in (1,400 / 1.12) CDJ 1,250

Input tax (1,250 x 12%) 150
Cash on Hand 1,400
Paid freight

7 Office equipment --- 9,856

Cash in bank 5,000
Notes payable 4,856
 Issuance of note and down payment to Fine Furnishing

8 Accounts payable CDJ 5,000

Purchase discount [(5,000 / 1.12) x 2%) 89
Input tax (89 x 12%) 11
Cash on Hand 4,900
Partial payment to Sherwin Co.

10 Accounts receivable CRJ 9,800

Cash on Hand SJ 9,800
Sales (19,600/1.12) 17,500
Output Tax (17,500x.12) 2,100
Sales From Ana Gonzalo, 2/10, n/30

12 Accounts receivable SJ 7,280

Sales (7,280 / 1.12) 6,500
Output tax (6,500 x 12%) 780
To record sales of A. Dimaano

14 Purchases (39,200 / 1.12) PJ 35,000

Input tax (35,000 x 12%) CDJ 4,200
Cash in bank 39,200
To record purchases from beautiful music

15 Cash on Hand CRJ 2,520

Purchase return and allowances (2,520 / 1.12) 2,250
Input tax (2,250 x 12%) 270
Refund of merchandise to beautiful music

18 V. Reyes, Drawing CDJ 5,000

 Cash in bank 5,000
Withdrawals

20 Notes receivable GJ 9,800

Account receivable 9,800
Ana Gonzalo Issued 10-days 6% note

22 Cash on Hand CRJ 2,427

Account receivable 2,427
Partial Collection of A. Dimaano

Accounts payable (22,400 - 5,000) CDJ 17,400

Cash in bank 17,400
Full payment to Sherwin

23 Purchases (14,560 / 1.12) GJ 13,000

Input tax (13,000 x 12%) 1,560
Notes payable 14,560
Issuance of note to Alpha Music Center

Cash on Hand (7,280 - 2,427) CRJ 4,853

Account receivable 4,853
Full Collection of A. Dimaano

28 Account Receivable SJ 44,800

Sales (44,800/1.12) 40,000
Output tax (40,000x.12) 4,800
2/10, n/30 to Universal bank

29 Cash on Hand CRJ 56,000

 Sales (56,000 / 1.12) SJ 50,000
Output tax (50,000 x .12) 6,000
Cash Sales

30 Cash on Hand CRJ 9,816

Interest income (9,800 x 6% x 10/360) 16
Note receivable 9,800
Collection of notes of Ana Gonzalo

Freight out (280 / 1.12) CDJ 250

Input Tax (250 x 12%) 30
Cash on Hand 280
Paid freight

31 Salaries Expense CDJ 30,000

SSS Premiums payable 900
PhilHealth premiums payable 450
Pag - ibig premiums payable 600
Cash in bank 28,050
Paid salaries less various deduction

Service fee 739

Cash in bank 739
To record service fee

PURCHASE JOURNAL

ACCOUNTS
PURCHASED INVOICE PURCHASES INPUT TAX CASH PURCHASES
DATE PAYABLE
FROM NUMBER DEBIT DEBIT CREDIT
CREDIT
 July 5 Sherwin Co. 123 20,000 2,400 22,400
14 Beautiful Music 901 35,000 4,200 39,200
Balance 55,000 6,600 22,400 39,200

SALES JOURNAL

SALES ACCOUNTS CASH SALES

SALES OUTPUT TAX
DATE SOLD TO INVOICE RECEIVABLE
CREDIT CREDIT
NUMBER DEBIT DEBIT
10 Ana Gonzalo 17,500 2,100 9,800 9,800
12 A. Dimaano 6,500 780 7,280
28 Universal Bank 40,000 4,800 44,800
29 Various 50,000 6,000 56,000
Balance 114,000 13,380 61,880 65,800

CASH DISBURSEMENT JOURNAL

ACCOU
CASH CASH CASH
PURCHASE NTS INPUT
VO. ON IN PURCH
DATE PAID TO EXPLANATION DISCOUNT PAYABL TAX ACCOUNT TITLE DEBIT CREDIT
NO. HAND BANK ASEDEBI
CREDIT E DEBIT
CREDIT CREDIT T
DEBIT
6 WGA Paid freight 1 1,400 150 Freight in 1,250
8 Sherwin Co. Partial 4,900 100 5,000
payment
14 Beautiful Cash 901 39,200 4,200 35,000
Music purchases
18 Various Withdrawals 5,000 V. Reyes, 5,000
Drawing
22 Sherwin Full 17,400 17,400
payment
 30 Company Paid freight 280 30 Freight out 250
Co.
31 Various Paid salaries 28,050 Salaries 30,000
expense 900
SSS Premiums
payable 450
PhilHealth
Premiums
payable 600
Pag-ibig
premiums
payable
31 BDO Service fee 739 Bank service 739
charges
BALANCE 6,580 95,389 100 22,400 5,436 35,000 45,039 6,806

CASH RECEIPTS JOURNAL

ACC
OUNT
CASH CASH SALES
S CASH
RECEIVED O.R. ON IN DISCOU
DATE EXPLANATION RECEI SALES ACCOUNT TITLE DEBIT CREDIT
FROM NO. HAND BANK NT
VABLE CREDIT
DEBIT DEBIT DEBIT
CREDI
T
2 Vilma Additional 1 50,000 200,000 V. Reyes, 250,000
Investment Capital
10 Ana Down 9,800 9,800
Gonzalo payment
15 Beautiful Return of 2,520 Purchase return 2.520
Music merchandise and allowances
22 A. Dimaano Partial 2,427 2,427
collection
23 A. Dimaano Full collection 4,853 4,853
29 Various Cash sales 56,000 56,000
30 Ana Collection of 9,816 Note 9,800
Gonzalo notes Receivable
BALANCE 135,416 200,000 7,280 65,800 262,336

general JOURNAL

DATE PARTICULARS DEBIT CREDIT

July 1 Merchandise Inventory GJ 80,000
Office equipment 150,000
Accounts payable 6,000
V. Reyes, Capital 224,000

20 Notes receivable GJ 9,800

Account receivable 9,800
Ana Gonzalo Issued 10-days 6%note

23 Purchases (14,560/1.12) GJ 13,000

Input tax (13,000x.12) 1,560
Notes payable 14,560
Issuance of note to Alpha Music Center

ACCOUNTS PAYABLE

SHERWIN CO.
DATE EXPLANATION DEBIT CREDIT BALANCE
5 Purchase Journal 22,400 22,400
8 Cash 5,000 17,400
Disbursement Journal
22 Cash 17,400 0
 Disbursement Journal

ACCOUNTS RECEIVABLE

ANNA GONZALO
DATE EXPLANATION DEBIT CREDIT BALANCE
10 Sales Journal 9,800 9,800
20 General Journal 9,800

A. DIMAANO
DATE EXPLANATION DEBIT CREDIT BALANCE
12 Sales Journal 7,280 7,280
22 Cash 2,427 4,853
Receipt
Journal
23 General Journal 4,853 0
,
UNIVERSAL BANK
DATE EXPLANATION DEBIT CREDIT BALANCE
28 Sales Journal 44,800 44,800

GENERAL LEDGER

ACCOUNTS RECEIVABLE CONTROL ACCOUNT

DEBIT CREDIT
61,880 17,080
 BALANCE = 44,800

ACCOUNTS PAYABLE CONTROL ACCOUNT

DEBIT CREDIT
22,400 22,400
BALANCE = 0