In March 2020, Marites Cruz and Marisol Reyes formed MARS Partnership, a NON-VAT Additional Information:

registered Accounting Services with initial capital contribution of ₱300, 000 each and agreed 1. Depreciation on office equipment is 10% per annum based on the office equipment
to share profits and losses equally. balance.
The entity prepares financial statement on a monthly basis; hence, it prepares adjusting and 2. Purchases of supplies are immediately charge to expense
closing entries at the end of each month. 3. Percentage Tax is accrued monthly at 3% of service revenues.
The chart of accounts of MARS Partnership is as follows:
110 Cash
120 Accounts Receivable Presented below is the Post Closing Trial Balance of MARS Partnership for the month ended
130 Input VAT June 30, 2020.
140 Office Equipment Debit Credit
145 Accumulated Depreciation – Office Equipment
210 Accounts Payable
220 Withholding Tax Payable
Cash ₱ 365,000
230 Expanded Withholding Tax Payable Accounts Receivable 95,000
240 SSS, PhilHealth and Pagibig Contributions Payable Office Equipment 110,000
250 Utilities Payable Accumulated Depreciation- Office Equipment ₱ 3,000
260 Accrued Percentage Tax Payable Withholding Taxes Payable 800
310 Marites Cruz, Capital Expanded Withholding Tax Payable 500
320 Marisol Reyes, Capital SSS, Philhealth and PAG-IBIG Contribution Payable 5,550
330 Marites Cruz, Withdrawals Utilities Payable 4,200
340 Marisol Reyes, Withdrawals
Accrued Percentage Tax Payable 4,950
350 Income Summary
Marites Cruz, Capital 275,500
410 Service Revenues
510 Salaries Expense
Marisol Reyes, Capital 275,500
520 SSS, PhilHealth and Pagibig Contribution
530 Rent Expense
540 Utilities Expense
550 Supplies Expense
560 Transportation Expenses
570 Depreciation Expense –Office Equipment
580 Percentage Tax Expense
590 Miscellaneous Expense
 REVENUES JOURNAL
Date Invoice No. Accounts Debited P.R. Service Revenue Accounts Receivable
Credit Debit
2020
Jul 5 2001 Apol 8 Grocery Store  35,000 35,000
8 2002 AC Café  25,000 25,000
16 2003 Relax Salon and Spa  30,000 30,000

TOTAL 90,000 90,000

(410) (120)

CASH RECEIPT JOURNAL

Date O.R Invoice Accounts Debited P.R. Accounts Service Cash Debit
No. No. Receivable Revenue
2020
July 3 1051 1010 Emeris Corp  45,000 45,000
7 1052 Green Excel Agency  30,000 30,000
12 1053 2001 Apol 8 Grocery Store  35,000 35,000
14 1054 1006 Redor Security Agency  50,000 50,000
22 1055 2002 AC Café  25,000 25,000

TOTAL 155,000 30,000 185,000

(120) (410) (110)
 CASH DISBURSEMENT JOURNAL
Date Check Check No. Accounts Debited P.R Sundry Salaries SSS, PH, Withholding Supplies Input Expanded Cash
Voucher Debit Expense Pag-ibig Tax Payable Expense VAT Withholding Credit
No. Debit Payable Debit Debit Debit Tax Payable
Debit (Credit) Debit
(Credit) (Credit)
2020
Jul 2 3001 1210001 National Bookstore-Office  3,000 360 3360
Supplies
3 3002 1210002 Aldo Office Equipment Center- 140 25,000 3,000 28,000
Office Equipment
10 3003 1210003 Builders Space Corp-Rental 530 10,000 (500) 9,500
11 3004 1210004 BIR  800 500 1,300
12 3005 1210005 SSS, Philhealth and Pagibig  5,550 5,550
15 3006 1210006 Utilities Payable-Water 540 700 700
15 3007 1210007 Utilities Payable-Electricity 540 3,500 3,500
15 3008 1210008 Payroll (Jul 1-15)  24,000 (950) 23,050
30 3009 1210009 Payroll (Jul 16 -31)  24,000 (1,100) (800) 22,100
30 3010 1210010 Martires Cruz, Withdrawals 330 20,000 20,000
30 1210011 Marisol Reyes, Withdrawals 340 20,000 20,000

TOTAL 79,200 48,000 3,500 - 3,000 3,360 - 137,060

 (510) (520) (220) (550) (130) (230) (110)
 GENERAL JOURNAL
GENERAL JOURNAL ADJUSTING ENTRIES CLOSING JOURNAL ENTRIES
Date Accounts Title and Explanation P.R Debit Credit Date Accounts Title and Explanation P.R Debit Credit
2020 2020
Jul 31 Utilities Expense-Water 540 700 Jul 31 Service Revenues 410 120,000
Utilities Payable 250 700 Salaries Expense 510 48,000
Water usage for July SSS,Philhealth and Pagibig Contribution 520 3,500
Rent Expense 530 10,000
31 Utilities Expense-Electricity 540 3,500 Utilities Expense 540 4,200
Utilities Payable 250 3,500 Supplies Expense 550 3,000
Electricity usage for July Depreciation Expense-Office Equipment 570 1,125
Percentage Tax Expense 580 3,600
31 SSS, Philhealth and Pagibig Contribution 520 3,500 Income Summary 350 45,575
SSS, Philhealth and Pagibig Contributions Payable To close the nominal account
240 3,500
Employers share on
SSS, Philhealth and Pagibig 31 Income Summary 350 46,575
Marites Cruz, Capital 310 23,287.50
31 Depreciation Expense-Office Equipment 570 1,125 Marisol Reyes, Capital 320 23,287.50
Accumulated Depreciation-Office Equipment To distribute the net income
145 1,125
Depreciation for July Equally among the partners

31 Percentage Tax Expense 580 3,600 31 Marites Cruz, Capital 310 20,000
Accrued Percentage Tax Payable 260 3,600 Marisol Reyes, Capital 320 20,000
Accrual of percentage tax for July Marites, Cruz, Withdrawals 330 20,000
Marisol Reyes, Withdrawals 340 20,000
To close the withdrawals to capital
 GENERAL LEDGER
110 Cash 145 Accumulated Depreciation- Office Equipment
Date Description P.R Debit Credit Balance Date Description P.R Debit Credit Balance
2020 2020
Jul 1  365,000 Jul 1  3,000 3,000
31 CRJ-1 185,000 550,000 31 GJ1 1,125 4,125
31 CDJ-1 137,060 412,940

120 Accounts Receivable 210 Accounts Payable

Date Description P.R Debit Credit Balance Date Description P.R Debit Credit Balance
2020
Jul 1  95,000
31 RJ-1 90,000 185,000
31 CRJ-1 155,000 30,000

130 Input VAT 220 Withholding Tax Payable

Date Description P.R Debit Credit Balance Date Description P.R Debit Credit Balance
2020 2020
Jul 31 CDJ-1 3,360 3,360 Jul 1  800
31 CDJ1 - 800

140 Office Equipment 230 Expanded Withholding Tax Payable

Date Description P.R Debit Credit Balance Date Description P.R Debit Credit Balance
2020 2020
Jul 1  110,000 Jul 1  500
3 CDJ1 25,000 135,000 31 CDJ1 - 500
240 SSS, PhilHealthand Pag-Ibig Contribution Payable
Date Description P.R Debit Credit Balance 320 Marisol Reyes, Capital
2020 Date Description P.R Debit Credit Balance
Jul 1  5,550 2020
31 CDJ1 3,500 2,050 Jul 1  275,500
31 GJ1 3,500 5,550 31 GJ2 23,287.50 298,787.50
31 GJ2 20,000 278,787.50
250 Utilities Payable
Date Description P.R Debit Credit Balance 330 Marites Cuz, Withdrawal
2020 Date Description P.R Debit Credit Balance
Jul 1  4,200 2020
15 CDJ1 700 3,500 Jul 30 CDJ1 20,000 20,000
15 CDJ1 3,500 0 31 GJ2 20,000 -
31 GJ1 700 700
31 GJ1 3500 4,200
260 Accrued Percentage Tax 340 Marisol Reyes, Withdrawal
Date Description P.R Debit Credit Balance Date Description P.R Debit Credit Balance
2020 2020
Jul 1  4,950 Jul 30 CDJ1 20,000 20,000
31 GJ1 3,600 8,550 31 GJ2 20,000 -

310 Marites Cruz, Capital

Date Description P.R Debit Credit Balance 350 Income Summary
2020 Date Description P.R Debit Credit Balance
Jul 1  275,500 2020
31 GJ2 23,287.50 298,787.50 Jul 31 CJ1 120,000 120,000
31 GJ2 20,000 278,787.50 31 CJ1 73,425 46,575
31 CJ1 46,575 -
410 Service Revenue 540 Utilities Expense
Date Description P.R Debit Credit Balance Date Description P.R Debit Credit Balance
2020 2020
Jul 31 RJ1 90,000 90,000 Jul 31 GJ1 700 700
31 CRJ1 30,000 120,000 31 GJ1 3,500 4,200
31 CJ1 120,000 - 31 CJ1 4,200 -

510 Salaries Expense 550 Supplies Expense

Date Description P.R Debit Credit Balance Date Description P.R Debit Credit Balance
2020 2020
Jul 31 CDJ1 48,000 48,000 Jul 31 CDJ1 3,000 3,000
31 CJ1 48,000 - 31 CJ1 3,000 -

520 SSS, Philhealth and Pag-Ibig Contribution 560 Transportation Expense

Date Description P.R Debit Credit Balance Date Description P.R Debit Credit Balance
2020
Jul 31 GJ1 3,500 3,500
31 CJ1 3,500 -

530 Rent Expense 570 Depreciation Expense

Date Description P.R Debit Credit Balance Date Description P.R Debit Credit Balance
2020 2020
Jul 10 CDJ1 10,000 10,000 Jul 31 GJ1 1,125 1,125
31 CJ1 10,000 - 31 CJ1 1,125 -
 Accounts Receivable- Apol 8 Grocery Store
580 Percentage Tax Expense Date Description P.R Debit Credit Balance
Date Description P.R Debit Credit Balance 2020
2020 Jul 5 Issued Invoice No. 2001 RJ1 35,000 35,000
Jul 31 GJ1 3,600 3,600 12 Issued OR No. 1053 CRJ1 35,000 -
31 CJ1 3,600 -

Accounts Receivable- AC Café

590 Miscellaneous Expense Date Description P.R Debit Credit Balance
Date Description P.R Debit Credit Balance 2020
Jul 8 Issued Invoice No. 2002 RJ1 25,000 25,000
22 Issued OR No. 1055 CRJ1 25,000 -

Accounts Receivable- Redor Agency

Date Description P.R Debit Credit Balance
SUBSIDIARY LEDGER 2020
Accounts Receivable- Emeris Corp. Jul 1 Issued Invoice No. 1006  50,000 50,000
Date Description P.R Debit Credit Balance 14 Issued OR No. 1054 CRJ1 50,000 -
2020
Jul 1 Issued Invoice No. 1010  45,000 45,000
3 Issued OR No. 1051 CRJ1 45,000 - Accounts Receivable- Relax Salon and Spa
Date Description P.R Debit Credit Balance
2020
Jul 16 Issued Invoice No. 2003 RJ1 30,000 30,000
 MARS PARTNERSHIP
Worksheet
For the Month Ended July 31, 2020
Account Title Trial Balance Adjustment Income Statement Balance Sheet
Debit Credit Debit Credit Debit Credit Debit Credit
Cash 412,940 412,940
Accounts Receivable 30,000 30,000
Input VAT 3,360 3,360
Office Equipment 135,000 135,000
Accumulated Depreciation-Office Equipment 1,125 4,125
3,000
Withholding Tax Payable 800 800
Expanded Withholding Tax Payable 500
500
SSS, PH and Pagibig Contri. Payable 2,050 3,500 5,550
Accrued Percentage Tax Payable 4,950 3,600 8,550
Marites Cruz, Capital 275,500 275,500
Marisol Reyes, Capital 275,500 275,500
Marites Cruz, Withdrawals 20,000 20,000
Marisol Reyes, Withdrawals 20,000 20,000
Service Revenues 120,000 120,000
Salaries Expense 48,000 48,000
Rent Expense 10,000 10,000
Supplies Expense 3,000 3,000
682,300 682,300
SSS, PH and Pagibig Contri P 3,500 3,500
Utilities Expense 4,200 4,200
Utilities Payable 4,200 4,200
Depreciation Expense-Office Equipment 1,125 1,125
Percentage Tax Expense 3,600 3,600
12,425 12,425
73,425 120,000 621,300 574,725
Net Income 46,575 46,575
120,000 120,000 621,300 621,300
 Mars Partnership
Statement of Comprehensive Income
For the month ended July 31, 2020

Service Revenue ₱120,000

Salaries Expense ₱ 48,000

SSS, PH and Pagibig Contribution 3,500
Rent Expense 10,000
Utilities Expense 4,200
Supplies Expense 3,000
Transportation Expense -
Depreciation Expense 1,125
Percentage Tax Expense 3,600
Miscellaneous Expense -
Total Expenses (73,425)
NET INCOME (LOSS) ₱ 46,575

Mars Partnership
Statement of Partner’s Equity
For the Month Ended July 31, 2020
Marites Cruz Marisol Reyes Totals
Beginning Capital ₱ 275,500 ₱ 275,500 ₱ 551,000
Drawings (20,000) (20,000) (40,000)
Net Income 23,287.50 23,287.50 46,575
Ending Capital ₱ 278,787.50 ₱ 278,787.50 ₱ 557,575
 Mars Partnership
Statement of Financial Position
July 31, 2020

ASSETS
Cash ₱ 412,940
Accounts Receivable 30,000
Input VAT 3,360
Total Current Asset ₱ 446,300
Office Equipment ₱ 135,000
Accumulated Depreciation (4,125)
Total Non-current Asset 130,875
TOTAL ASSET ₱ 577,175

LIABILITIES
Accounts Payable
Withholding Tax Payable ₱800
Expanded Withholding Tax Payable 500
SSS, PH and Pagibig Contribution Payable 5,550
Utilities Payable 4,200
Accrued Percentage Tax 8,550
Total Liabilities ₱ 19,600

PARTNERS EQUITY
Marites Cruz, Capital–07/31/2020 ₱ 278,787.50
Marisol Reyes, Capital – 07/31/2020 278,787.50
Total Partner’s Equity 557,575
TOTAL LIABILITIES AND PARTNERS EQUITY ₱ 577,175
 Mars Partnership
Statement of Cash Flows
For the Month Ended July 31, 2020

CASH-IN ACTIVITIES:
Cash from Clients ₱ 185,000

Total Cash-In ₱ 185,000

CASH-OUT ACTIVITIES:
Payment for Supplies 3,360
Payment for Office Equipment 28,000
Payment for Rent 9,500
Payment for BIR 1,300
Payment for SSS,Philhealth and Pagibig 5,550
Payment for Water (June Bill) 700
Payment for Electricity (June Bill) 3,500
Payment for Payroll (Jul 1 – 15) 23,050
Payment for Payroll (Jul 16-31) 22,100
Withdrawals of partners 40,000

Total Cash-Out 137,060

NET INCREASE IN CASH ₱ 47,940
Add: Cash Balance, 07/01/2020 365,000

CASH BALANCE, 07/31/2020 ₱ 412,940

 Mars Partnership
Post-Closing Trial Balance
July 31, 2020

Account Titles Debit Credit

Cash 412,940

Accounts Receivable 30,000

Input VAT 3,360

Office Equipment 135,000

Accumulated Depreciation-Office Equipment 4,125

Withholding Tax Payable 800

Expanded Withholding Tax Payable 500

SSS,Philhealth and Pagibig Contri Payable 5,550

Utilities Payable 4,200

Accrued Percentage Tax Payable 8,550

Marites Cruz, Capital 278,787.50

Marisol Reyes, Capital 278,787.50

TOTALS 581,300 581,300