GENERAL JOURNAL

DATE
PARTICULARS F Debit Credit
URNAL

Explanation/Computation/Customer/Supplier Info
CREDIT TERMS:
Customer's Name:
Address:
Terms F Debit Credit

Customer's Name:
Address:
Date Terms F Debit Credit

Customer's Name:
Address:
Date Terms F Debit Credit
 Supplier's Name:
Address:
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Supplier's Name:
Address:
Balance Date Terms F Debit Credit
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Supplier's Name:
Address:
Date Terms F Debit Credit

Supplier's Name:
Address:
Date Terms F Debit Credit
Balance
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1- Term:FOB Shipping Point; Freight Collect
Entry on the books of the buyer: Entry on the books of the seller:
Freight-in NO ENTRY
Cash

Effect on Accounts Payable: none Effect on Accounts Receivable: none

2- Term:FOB Shipping Point; Freight Prepaid

Entry on the books of the buyer: Entry on the books of the seller:
Freight-in Accounts Receivable
Accounts Payable Cash

Effect on Accounts Payable: increase Effect on Accounts Receivable: increase

3- Term:FOB Destination; Freight Collect

Entry on the books of the buyer: Entry on the books of the seller:
Accounts Payable Freight Out
Cash Accounts Receivable

Effect on Accounts Payable: decrease Effect on Accounts Receivable: decrease

4- Term:FOB Destination; Freight Prepaid

Entry on the books of the buyer: Entry on the books of the seller:
NO ENTRY Freight Out
Cash

Effect on Accounts Payable: none Effect on Accounts Receivable: none

Free on Board at Shipping Point
- ownership of goods is immediately transferred to the buyer upon shipment (from the shipping point)
- therefore, the buyer who immediately becomes the owner of goods upon shipment, should pay or bear the cost fo
- such Freight Cost is added to the cost of merchandise purchased through the account title

Free on Board at Destination

- ownership of goods is transferred to the buyer only upon reaching the destination
- therefore, the seller who still owns the goods while in transit should bear the cost, should pay or bear the cost for
- such Freight Cost is considered a Delivery Expense of the seller and such expense is classified among Selling Expen
- buyer recognizes NO SHIPPING COST in relation to the purchase of merchandise.

Freight Prepaid
- freight was paid in advance (by the seller)

Freight Collect
- freight will be collected (from the buyer)
hipping point)
ould pay or bear the cost for the freight

ld pay or bear the cost for the freight

sified among Selling Expenses, through the account title
Bel’s FABricated is a fabric trading business. She has established connections with some who
fabrics from abroad, she buys locally at wholesale price and sells them in retail. In order to e
discount of 5% to all customers; whereas to encourage prompt payment, credit terms are se
30, 2020, the following suppliers and customers have outstanding payable and receivable bal

Suppliers: Balance Transaction date Term

JapSilk 44,800.00 29-Sep 2/15, n/30
FilAbaca 32,200.00 25-Sep 10%; 2/10, n/30

Customers: Balance
POSHMina 12,000.00 25-Sep
FABrides 24,000.00 5-Sep

In October 2020, the following transactions occured:

´Oct. 1- Purchased US Cotton from Dan Trading, P40,000, Terms: 2/10, n/30; FOB shipping point - Fre
´Oct. 2- Paid freight to Rapid Delivery for goods purchased on October 1, P2,240.
Oct . 4- Received full payment from POSHMina.
´Oct. 5- Sent a debit memo, DM No. 015, to Dan Trading for defective goods returned, P3,360.
´Oct. 7- Purchased store supplies, P1,120. Terms: credit card online payment facility; Freight of P50;
Oct 8 - Paid FilAbaca.
Oct. 9 - Received a non-interest bearing note from FABrides in full settlement of outstanding balance.
Oct 10 - Paid semi-monthly salaries of two store clerks, P15,000. Employees are deducted full contrib
made on the second payday.
´Oct 10- Paid in full the account with Dan Trading
Oct 11 - Received the store supplies purchased online, but with some defective items; returned P200
agreed upon. Received notice from supplier to reverse charge.
´Oct 12- Sold goods to Arlene Company, P28,000, net of trade discount. Freight terms: FOB shipping
Delivery P1,344, upon shipment of the goods.

Oct 13 - Purchased Japan Silk fabric from JapSilk, P100,000 with the following terms: 20% downpaym
Destination - Freight Collect. In order to maintain good credit standing with JapSilk, Bel settled its outs
non-interest bearing promissory note to JapSilk.

Oct 14 - Paid freight on Japsilk Shipment, P2,240.

´Oct. 14- Issued Credit Memo No. 100 to Arlene Co. for allowances granted on slightly deformed item
´Oct 15- Received P10,000 from Arlene Co. in partial settlement of the account on Oct. 11. No partial
Oct 16 - Sold bridal garments on account to FABrides, at a list price of P38,000. Shipping terms: FOB
Oct 17 - Purchased AC unit for the store from Abe Appliances, P50,000. Terms: 2/10; n/30; FOB Shippi
Oct 17 - Paid freight on AC unit, P560.
Oct 18 - Sold goods on account to POSHMina, P36,000 net of trade discount. Freight charged by Rapid
Destination, collect
´Oct 21- Collected the balance of the account of Arlene Co. in full.
Oct 25 - Paid semi-monthly payroll less deduction for PH and HDMF.
Oct 26- Paid Abe Appliance Center in full.
´Oct 27- Cash Purchases, P41,667 list price, less 10% and 20%. FOB Destination, prepaid, P1,120.
Oct 28 - Paid JapSilk account in full.
Oct 28 - Paid for utilities: Meralco - P13,440; PLDT - P2,240; Maynilad - P896
´Oct 30- Cash Sales, P280,000 list price. FOB shipping point, collect. Freight Cost P5,000.
Oct 31- Recorded Payroll Taxes
Oct 31- Refunded a cash customer for goods returned, P2,240.
 tions with some wholesalers that import special
retail. In order to encourage sales, Bel gives a trade
, credit terms are set at 2/10, n/30. As of September
e and receivable balances:

OB shipping point - Freight Collect.

0.

urned, P3,360.
acility; Freight of P50; FOB Destination - Freight Prepaid

outstanding balance.
e deducted full contribution to SSS, other deductions are

items; returned P200 worth of supplies to supplier as

t terms: FOB shipping point - Freight Prepaid . Paid Rapid

rms: 20% downpayment, balance 2/15, n/30; FOB

Silk, Bel settled its outstanding account by issuing 30-day

lightly deformed items delivered the previous day, P672.

on Oct. 11. No partial discount is applied.
 Shipping terms: FOB Destination - freight prepaid; P600.
2/10; n/30; FOB Shipping Point, Collect.

eight charged by Rapid Delivery amounts to P1,120; FOB

n, prepaid, P1,120.

st P5,000.
LIST OF ACCOUNT TITLES

Bel, Capital
Bel, Drawings
Accounts Payable
Accounts Receivable
Accrued Expenses
Advertising Expense
Allowance for Bad Debts
Bad Debt expense
Cash
Cost of Sales
Depreciation Expense
EC Contributions Payable
Freight-in
Freight-out
Furniture & Fixtures
Gas & Oil Expense
HDMF Premiums Payable
Input VAT
Insurance Expense
Interest Income
Loans Payable
Miscellaneous Expense
Notes Payable
Notes Receivable
Office Equipment
Office Supplies
Office Supplies Expense
Output VAT
Payroll Taxes
PH Premiums Payable
Prepayments
Purchases
Purchase Discounts
Purchase Returns & Allowances
Rent Expense
Repair Equipment
Repairs Expense
Sales Salaries
Salaries Payable
Sales
Sales Discounts
Sales Returns & Allowances
SSS Premiums Payable
Store Equipment
Store Supplies
Store Supplies Expense
Taxes & Licenses Expense
Utilities Payable
Utilties Expense
VAT Payable
Vehicles
 GENERAL JOURNAL

2020 F Debit Credit

10 1 Purchases 40,000.00
Accounts Payable / 40,000.00

2 Freight-in 2,240.00
Cash 2,240.00

4 Cash 11,760.00
Sales Discounts 240.00
Accounts Receivable / 12,000.00

5 Accounts Payable / 3,360.00

Purchase Returns & Allowances 3,360.00

7 Store Supplies 1,120.00

Accounts Payable / 1,120.00

8 Accounts Payable / 32,200.00

Cash 32,200.00

9 Notes Receivable 24,000.00

Accounts Receivable / 24,000.00

10 Sales Salaries 15,000.00

SSS Premiums Payable 1,200.00
Cash 13,800.00

Accounts Payable / 36,640.00

Purchase Discounts 732.80
Cash 35,907.20
11 Accounts Payable / 200.00
Store Supplies 200.00

12 Accounts Receivable / 29,344.00

Cash 1,344.00
Sales 28,000.00

13 Purchases 100,000.00
Cash 20,000.00
Accounts Payable / 80,000.00

Accounts Payable / 44,800.00

Notes Payable 44,800.00

14 Accounts Payable / 2,240.00

Cash 2,240.00

Sales Returns & Allowances 672.00

Accounts Receivable / 672.00

15 Cash 10,000.00
Accounts Receivable / 10,000.00

16 Accounts Receivable 36,100.00

Sales 36,100.00

Freight-out 600.00
Cash 600.00

17 Store Equipment 50,000.00

Accounts Payable 50,000.00
17 Store Equipment 560.00
Cash 560.00

18 Accounts Receivable / 36,000.00

Sales 36,000.00

Freight-out 1,120.00
Accounts Receivable / 1,120.00

21 Cash 18,125.44
Sales Discounts 546.56
Accounts Receivable / 18,672.00

25 Sales Salaries 15,000.00

PH Premiums Payable 450.00
HDMF Premiums Payable 200.00
Cash 14,350.00

26 Accounts Payable / 50,000.00

Store Equipment 1,000.00
Cash 49,000.00

27 Purchases 30,000.24
Cash 30,000.24
28 Accounts Payable / 77,760.00
Purchase Discounts 1,600.00
Cash 76,160.00

Utilties Expense 16,576.00

Cash 16,576.00

30 Cash 266,000.00
Sales 266,000.00

31 Payroll Taxes 3,110.00

SSS Premiums Payable 2,400.00
PH Premiums Payable 450.00
HDMF Premiums Payable 200.00
EC Contributions Payable 60.00

31 Sales Returns & Allowances 2,240.00

Cash 2,240.00
JOURNAL Bel gives a trade discount of 5% to all customers;
Credit terms are set at 2/10, n/30.
Explanation/Computation/Customer/Supplier Info
Oct. 1- Purchased US Cotton from Dan Trading, P40,000, Terms
Dan Trading: 2/10, n/30. n/30; FOB shipping point - Freight Collect.

FOB Shipping point: expense c/o buyer Bel ´Oct. 2- Paid freight to Rapid Delivery for goods purchased on O
P2,240.
Freight Collect: payment c/o buyer Bel

Account balance 12,000.00 Oct . 4- Received full payment from POSHMina.

Discount @ 2% 240.00 Sept 25 to Oct 4 9 days
Collection 11,760.00 Note: trade discount has already been deducted from list price,
Balance is already net of trade discount

Oct. 5- Sent a debit memo, DM No. 015, to Dan Trading for defe
returned, P3,360.
Defective goods returned to Dan Trading
Note: Debit Memo debits the Supplier Acct, which has a normal credi
therefore reduces the account balance

AP-Credit Card Co. Oct. 7- Purchased store supplies, P1,120. Terms: credit card on
payment facility; Freight of P50; FOB Destination - Freight Prepa
FOB Destination: expense c/o seller StoreSupplier Note: Freight on supplies is recorded as transportation expense,
Freight Prepaid: payment c/o seller added to cost of supplies

FilAbaca, Sept 25: 10%; 2/10, n/30 Oct 8 - Paid FilAbaca.

Sept 25 to Oct 8 13 days

FABRides, Sept 05 Oct. 9 - Received a non-interest bearing note from FABrides in f

settlement of9outstanding balance.
Sept 05 to Oct 34 days

Oct 10 - Paid semi-monthly salaries of two store clerks, P15,000. Employees a

full contribution to SSS, other deductions are made on the second payday.
Semi-monthly salary of sales clerks, net of SSS cont.
Note: Withholding Tax = 0; SSS = P600/employee.

Dan Trading, Oct 02: 2/10, n/30 Oct 10- Paid in full the account with Dan Trading
Gross Purchases 40,000.00 Oct 2 to 10 8 days
Less: Purchase Returns 3,360.00
Net Purchases entitled to discount 36,640.00
Less:Discount @ 2% 732.80
Payment 35,907.20
Return of defective supplies purchased Oct 11 - Received the store supplies purchased online, but with
AP-Credit Card Co. defective items; returned P200 worth of supplies to supplier as
upon. Received notice from supplier to reverse charge.

Note: return of item other than merchandise reduces the value

purchase; PRA is used only for return of merchandise

Arlene Co. Oct 12- Sold goods to Arlene Company, P28,000 net of Trade Dis
Freight terms: FOB shipping point - Freight Prepaid . Paid Rapid
FOB Shipping Point: expense c/o buyer Arlene P1,344, upon shipment of the goods.
Freight Prepaid: payment c/o seller Bel

JapSilk: 20%DP, 2/15, n/30 Oct 13 - Purchased Japan Silk fabric from JapSilk, P100,000 with
following terms: 20% downpayment, balance 2/15, n/30; FOB D
FOB Destination - expense c/o seller JapSilk - Freight Collect.
Freight Collect - payment c/o buyer Bel
In order to maintain good credit standing with JapSilk, Bel settle
outstanding account by issuing 30-day non-interest bearing pro
JapSilk: 2/15, n/30 note to JapSilk.
Sep 29 to Oct 13 14 days
But Bel can't avail of "cash discount" because we are not paying
instead, settling with PN

Payment of freight on FOB Destination - Oct 14 - Paid freight on Japsilk Shipment, P2,240.
reduce AP w/ JapSilk

Credit Memo #100 to Arlene Co. for return Oct. 14- Issued Credit Memo No. 100 to Arlene Co. for allowanc
of mdse sold on slightly deformed items delivered the previous day, P672.
Note: Credit Memo credits the Customer Acct, which has a norm
balance; therefore reduces the account balance

Arlene Co: partial settlement of account Oct 15- Received P10,000 from Arlene Co. in partial settlement o
account on Oct. 11. No partial discount is applied.

FABrides Oct 16 - Sold bridal garments on account to FABrides, at a list pr

P38,000. Shipping terms: FOB Destination - freight prepaid; P6
List Price 38,000.00
Less Trade Discount @5% 1,900.00
Invoice Price 36,100.00

FOB Destination: expense c/o seller

Freight Prepaid: payment c/o seller

Abe Appliances: 2/10, n/30 Oct 17 - Purchased AC unit for the store from Abe Appliances, P
Terms: 2/10; n/30; FOB Shipping Point, Collect.
FOB Shipping Point: expense c/o buyer Bel Oct 17 - Paid freight on AC unit, P560.
Freight Collect: payment c/o buyer Bel Note: freight on fixed asset is capitalized.

AR-POSHMina Oct 18 - Sold goods on account to POSHMina, P36,000 net of tra

discount. Freight charged by Rapid Delivery amounts to P1,120;
Destination, collect

FOB Destination - expense c/o seller Bel

Freight collect - payment c/o buyer

AR-Arlene Co. Oct 21- Collected the balance of the account of Arlene Co. in ful
Gross Sales 28,000.00 Oct 12 to 21 9 days
Less Sales Returns & Allowances 672.00
Sales entitled to discount 27,328.00
Discount 546.56
Net Sales 26,781.44
Add: Freight prepaid by Bel 1,344.00
Total amount collectible from Arlene 28,125.44
Less partial collection 10,000.00
Balance due for collection 18,125.44

Payment of salaries, net of PH & HDMF Cont. Oct 25 - Paid semi-monthly payroll less deduction for PH and HD

AP-Abe Appliance Center: 2/10, n/30 Oct 26- Paid Abe Appliance Center in full.
Cost of AC (Store Equipment), excl freight 50,000.00 Oct 17 to 26 9 days
Less discount 1,000.00 Discount on fixed asset is credited to fixed asset account
Net cost of equipment 49,000.00

Cash purchases Oct 27- Cash Purchases, P41,667 list price, less 10% and 20%. FO
Destination, prepaid, P1,120.
List price 41,667.00
First trade discount 4,166.70
Balance 37,500.30
2nd trade discount 7,500.06
Invoice Price 30,000.24

FOB Destination: expense c/o seller CashSeller

Freight Prepaid: payment c/o seller CashSeller
no entry
AP - JapSilk: 20%DP, 2/15, n/30 Oct 28 - Paid JapSilk account in full.
Cost of mdse purchased, net of DP 80,000.00 Oct 13 to 28 15 days
Less discount @ 2% 1,600.00
Net cost of purchases 78,400.00
Less freight collect on FOB Destination 2,240.00
Balance for full payment 76,160.00

Payment of utilities: Oct 28 - Paid for utilities: Meralco - P13,440; PLDT - P2,240; Ma
P896
Meralco 13,440.00
PLDT 2,240.00
Maynilad 896.00
Total 16,576.00

List Price 280,000.00 Oct 30- Cash Sales, P280,000 list price. FOB shipping point, colle
Cost P5,000.
Less Trade discount 14,000.00
Invoice Price 266,000.00
FOB Shipping point: expense c/o buyer CashBuyer
Freight collect: payment c/o CashBuyer

Payroll taxes for the month. Oct 31- Recorded Payroll Taxes
HDMF: P100 per employee
PH: @1.5%
SSS: P1,200
EC: P30

Refund to cash customer. Oct 31- Refunded a cash customer for goods returned, P2,240.
o all customers;

Dan Trading, P40,000, Terms: 2/10,

Collect.

very for goods purchased on October 1,

m POSHMina.

been deducted from list price, so AR

count

o. 015, to Dan Trading for defective goods

er Acct, which has a normal credit balance;

e

P1,120. Terms: credit card online

OB Destination - Freight Prepaid

ed as transportation expense, NOT

earing note from FABrides in full

e.

o store clerks, P15,000. Employees are deducted

are made on the second payday.

P600/employee.

th Dan Trading
es purchased online, but with some
orth of supplies to supplier as agreed
ier to reverse charge.

merchandise reduces the value of item

urn of merchandise

pany, P28,000 net of Trade Discount.

- Freight Prepaid . Paid Rapid Delivery
ds.

ic from JapSilk, P100,000 with the

ent, balance 2/15, n/30; FOB Destination

tanding with JapSilk, Bel settled its

-day non-interest bearing promissory

nt" because we are not paying cash,

pment, P2,240.

100 to Arlene Co. for allowances granted

red the previous day, P672.
stomer Acct, which has a normal debit
count balance

lene Co. in partial settlement of the

count is applied.

ccount to FABrides, at a list price of

stination - freight prepaid; P600.

store from Abe Appliances, P50,000.

Point, Collect.
560.
talized.

POSHMina, P36,000 net of trade

d Delivery amounts to P1,120; FOB

he account of Arlene Co. in full.

ll less deduction for PH and HDMF.

r in full.

to fixed asset account

ist price, less 10% and 20%. FOB

ll.

o - P13,440; PLDT - P2,240; Maynilad -

rice. FOB shipping point, collect. Freight

r for goods returned, P2,240.

CREDIT TERMS: 2/10, N/30
Customer's Name: POSHMina
Address:
Terms F Debit Credit
25-Sep-20 12,000.00
04-Oct-20 collection in full 12,000.00
18-Oct-20 sale of goods 36,000.00
18-Oct-20 freight collect on mdse sold 1,120.00

Customer's Name: FABrides

Address:
Date Terms F Debit Credit
05-Sep-20 24,000.00
09-Oct-20 received PN in settlement of open account 24,000.00
16-Oct-20 36,100.00

Customer's Name: Arlene Co.

Address:
Date Terms F Debit Credit
12-Oct-20 sale of goods, freight prepaid 29,344.00
14-Oct-20 return of mdse 672.00
15-Oct-20 partial collection 10,000.00
21-Oct-20 collection in full 18,672.00
HMina Supplier's Name: JapSilk
Address:
Balance Date Terms F Debit Credit
12,000.00 29-Sep-20 2/15, n/30 44,800.00
- 13-Oct-20 20%DP, 2/15, n/30 80,000.00
36,000.00 13-Oct-20 Settlement w/ PN 44,800.00
34,880.00 14-Oct-20 Fob Destination, Freight Collect 2,240.00
28-Oct-20 full settlement of account 77,760.00

Brides Supplier's Name: FilAbaca

Address:
Balance Date Terms F Debit Credit
24,000.00 25-Sep-20 10%; 2/10, n/30 32,200.00
- 08-Oct-20 full payment 32,200.00
36,100.00
36,100.00

ne Co. Supplier's Name: Dan Trading

Address:
Balance Date Terms F Debit Credit
29,344.00 02-Oct-20 2/10, n/30 GJ1 40,000.00
28,672.00 05-Oct-20 Returns GJ1 3,360.00
18,672.00 10-Oct-20 full payment GJ1 36,640.00
-

Supplier's Name: Abe Appliances

Address:
Date Terms F Debit Credit
17-Oct-20 Purchase of AC unit; 2/10, n/30 GJ1 50,000.00
26-Oct-20 Payment of account in full GJ1 50,000.00

Supplier's Name: Credit Card Co.

Address:
Date Terms F Debit Credit
07-Oct-20 online purchase of supplies GJ1 1,120.00
11-Oct-20 Returns GJ1 200.00
pSilk

Balance
44,800.00
124,800.00
80,000.00
77,760.00
-

Abaca

Balance
32,200.00
-
-
-

Trading

Balance
40,000.00
36,640.00
-
-

ppliances

Balance
50,000.00
-
-
-

Card Co.
Balance
1,120.00
920.00
920.00
920.00
Bel’s FABricated is a VAT-registered fabric trading business. She has established connection
special fabrics from abroad, she buys locally at wholesale price and sells them in retail. In or
trade discount of 5% to all customers; whereas to encourage prompt payment, credit terms
30, 2020, the following suppliers and customers have outstanding payable and receivable ba

Suppliers: Balance Transaction date Term

JapSilk ### 29-Sep 2/15, n/30
FilAbaca ### 25-Sep 10%; 2/10, n/30 ###

Customers: Balance
POSHMina ### 25-Sep
FABrides ### 5-Sep ###

In October 2020, the following transactions occurred. All transactions involving sale (and purchase) o
except sale (and purchase) transactions quoted at a list price, in which case, 12% VAT will be comput

´Oct. 1- Purchased US Cotton from Dan Trading, P44,800, Terms: 2/10, n/30; FOB shipping point - Fre
´Oct. 2- Paid freight to Rapid Delivery for goods purchased on October 1, P2,240.
Oct . 4- Received full payment from POSHMina.
´Oct. 5- Sent a debit memo, DM No. 015, to Dan Trading for defective goods returned, P3,360.
´Oct. 7- Purchased store supplies, P1,120. Terms: credit card online payment facility; Freight of P56
Oct 8 - Paid FilAbaca.
Oct. 9 - Received a non-interest bearing note from FABrides in full settlement of outstanding balance
Oct 10 - Paid semi-monthly salaries of two store clerks, P15,000. Employees are deducted full contrib
on the second payday.
´Oct 10- Paid in full the account with Dan Trading
Oct 11 - Received the store supplies purchased online, but with some defective items to be returned;
upon. Received notice from supplier to reverse charge.
´Oct 12- Sold goods to Arlene Company, P31,360, net of trade discount, VAT-inclusive. Freight terms
Paid Rapid Delivery P1,344, upon shipment of the goods.

Oct 13 - Purchased Japan Silk fabric from JapSilk, P112,000 with the following terms: 20% downpaym
Freight Collect. In order to maintain good credit standing with JapSilk, Bel settled its outstanding acco
promissory note to JapSilk.

Oct 14 - Paid freight on Japsilk Shipment, P2,240.

´Oct. 14- Issued Credit Memo No. 100 to Arlene Co. for allowances granted on slightly deformed item
´Oct 15- Received P10,000 from Arlene Co. in partial settlement of the account on Oct. 11. No partia
Oct 16 - Sold bridal garments on account to FABrides, at a list price of P38,000. Shipping terms: FOB
Oct 17 - Purchased AC unit for the store from Abe Appliances, P56,000. Terms: 2/10; n/30; FOB Shipp
Oct 17 - Paid freight on AC unit, P560.
Oct 18 - Sold goods on account to POSHMina, P40,320 net of trade discount, VAT-inclusive. Freight ch
P1,120; FOB Destination, collect
´Oct 21- Collected the balance of the account of Arlene Co. in full.
Oct 25 - Paid semi-monthly payroll less deduction for PH and HDMF.
Oct 26- Paid Abe Appliance Center in full.
´Oct 27- Cash Purchases, P40,000 list price, less 10% and 20%. FOB Destination, prepaid, P1,120.
Oct 28 - Paid JapSilk account in full.
Oct 28 - Paid for utilities: Meralco - P13,440; PLDT - P2,240; Maynilad - P896
´Oct 30- Cash Sales, P280,000 list price. FOB shipping point, collect. Freight Cost P5,000.
Oct 31- Recorded Payroll Taxes
Oct 31- Refunded a cash customer for goods returned, P2,240.
as established connections with some wholesalers that import
d sells them in retail. In order to encourage sales, Bel gives a
pt payment, credit terms are set at 2/10, n/30. As of September
payable and receivable balances:

olving sale (and purchase) of goods and services are VAT-inclusive,

ase, 12% VAT will be computed and added to the invoice price.

/30; FOB shipping point - Freight Collect.

P2,240.

ods returned, P3,360.

ment facility; Freight of P56; FOB Destination - Freight Prepaid

ment of outstanding balance.

ees are deducted full contribution to SSS, other deductions are made

ective items to be returned; charges to be adjusted by P224 as agreed

VAT-inclusive. Freight terms: FOB shipping point - Freight Prepaid .

wing terms: 20% downpayment, balance 2/15, n/30; FOB Destination -

settled its outstanding account by issuing 30-day non-interest bearing
 d on slightly deformed items delivered the previous day, P672.
count on Oct. 11. No partial discount is applied.
8,000. Shipping terms: FOB Destination - freight prepaid; P560.
erms: 2/10; n/30; FOB Shipping Point, Collect.

unt, VAT-inclusive. Freight charged by Rapid Delivery amounts to

tination, prepaid, P1,120.

896
ght Cost P5,000.
 GENERAL JOURNAL

2020 F Debit Credit

10 1 Purchases 40,000.00
Input VAT 4,800.00
Accounts Payable / 44,800.00

2 Freight-in 2,000.00
Input VAT 240.00
Cash 2,240.00

4 Cash 12,073.60
Sales Discounts 220.00
Output VAT 26.40
Accounts Receivable / 12,320.00

5 Accounts Payable / 3,360.00

Input VAT 360.00
Purchase Returns & Allowances 3,000.00

7 Store Supplies 1,000.00

Input VAT 120.00
Accounts Payable / 1,120.00

8 Accounts Payable / 32,200.00

Cash 32,200.00

9 Notes Receivable 24,080.00

Accounts Receivable / 24,080.00

10 Sales Salaries 15,000.00

SSS Premiums Payable 600.00
Cash 14,400.00

Accounts Payable / 44,773.60

Input VAT 95.94
Purchase Discounts 799.53
Cash 43,878.13
11 Accounts Payable / 224.00
Input VAT 24.00
Store Supplies 200.00

12 Accounts Receivable / 32,704.00

Output VAT 3,360.00
Sales 28,000.00
Cash 1,344.00

13 Purchases 100,000.00
Input VAT 12,000.00
Cash 22,400.00
Accounts Payable / 89,600.00

Accounts Payable / 44,800.00

Notes Payable 44,800.00

14 Accounts Payable / 2,240.00

Cash 2,240.00

Sales Returns & Allowances 600.00

Output VAT 72.00
Accounts Receivable / 672.00

15 Cash 10,000.00
Accounts Receivable / 10,000.00

16 Accounts Receivable / 40,432.00

Output VAT 4,332.00
Sales 36,100.00

Freight-out 500.00
Input VAT 60.00
Cash 560.00
17 Store Equipment 50,000.00
Input VAT 6,000.00
Accounts Payable / 56,000.00

17 Store Equipment 500.00

Input VAT 60.00
Cash 560.00

18 Accounts Receivable / 40,320.00

Output VAT 4,320.00
Sales 36,000.00

Freight-out 1,000.00
Input VAT 120.00
Accounts Receivable / 1,120.00

21 Cash 21,418.24
Sales Discounts 548.00
Output VAT 65.76
Accounts Receivable / 22,032.00

25 Sales Salaries 15,000.00

PH Premiums Payable 450.00
HDMF Premiums Payable 200.00
Cash 14,350.00

26 Accounts Payable / 56,000.00

Input VAT 120.00
Store Equipment 1,000.00
Cash 54,880.00

27 Purchases 28,800.00
Input VAT 3,456.00
 Cash 32,256.00

28 Accounts Payable / 87,360.00

Input VAT 192.00
Purchase Discounts 1,600.00
Cash 85,568.00

Utilties Expense 14,800.00

Input VAT 1,776.00
Cash 16,576.00

30 Cash 297,920.00
Output VAT 31,920.00
Sales 266,000.00

31 Payroll Taxes 3,110.00

SSS Premiums Payable 2,400.00
PH Premiums Payable 450.00
HDMF Premiums Payable 200.00
EC Contributions Payable 60.00

31 Sales Returns & Allowances 2,000.00

Output VAT 240.00
Cash 2,240.00

Output VAT #REF!

VAT Payable #REF!
Input VAT 27,660.06
RNAL Bel gives a trade discount of 5% to all customers;
Credit terms are set at 2/10, n/30.
Explanation/Computation/Customer/Supplier Info
Dan Trading: 2/10, n/30. Oct. 1- Purchased US Cotton from Dan Trading, P44,
Terms: 2/10, n/30; FOB shipping point - Freight Coll

FOB Shipping point: expense c/o buyer Bel ´Oct. 2- Paid freight to Rapid Delivery for goods
purchased on October 1, P2,240.
Freight Collect: payment c/o buyer Bel

Account balance 12,320.00 Oct . 4- Received full payment from POSHMina.

Sales 11,000.00 Sept 25 to Oct 9 days
Discount @ 2% 220.00 4
Vat 26.40 Note: trade discount has already been deducted from
Collection 12,073.60 list price, so AR Balance is already net of trade disco

Defective goods returned to Dan Oct. 5- Sent a debit memo, DM No. 015, to Dan Trad
Trading for defective goods returned, P3,360.

Note: Debit Memo debits the Supplier Acct, which has a

Net Purchases entitled to discount normal credit balance; therefore reduces the account bal

AP-Credit Card Co. Oct. 7- Purchased store supplies, P1,120. Terms: cr

card online payment facility; Freight of P56; FOB
Destination - Freight Prepaid
FOB Destination: expense c/o seller StoreSupplier Note: Freight on supplies is recorded as transportat
Freight Prepaid: payment c/o seller expense, NOT added to cost of supplies

FilAbaca, Sept 25: 10%; 2/10, n/30 32,200.00 Oct 8 - Paid FilAbaca.
Sept 25 to Oct 13 days
8
FABRides, Sept 05 24,080.00 Oct. 9 - Received a non-interest bearing note from
FABrides
Sept 05 to in full settlement
Oct of outstanding balance.
34 days
9
Semi-monthly salary of sales clerks, net of SSS cont. Oct 10 - Paid semi-monthly salaries of two store clerks, P15,000
Employees are deducted full contribution to SSS, other deductio
Note: Withholding Tax = 0; SSS = P600/employee.

Dan Trading, Oct 01: 2/10, n/30 Oct 10- Paid in full the account with Dan Trading

Gross Purchases 40,000.00 Oct 1 to 10 9 days

Less: Purchase Returns 3,000.00
Net Purchases entitled to discount 37,000.00
Less:Discount @ 2% 740.00
Payment 36,260.00

Return of defective supplies purchased Oct 11 - Received the store supplies purchased onlin
AP-Credit Card Co. but with some defective items to be returned, paym
to be adjusted by P224 as agreed upon. Received no
from supplier to reverse charge.
Note: return of item other than merchandise reduce
the value of item purchase; PRA is used only for retu
of merchandise

Arlene Co. Oct 12- Sold goods to Arlene Company, P31,360 net
Trade Discount. Freight terms: FOB shipping point -
FOB Shipping Point: expense c/o buyer Arlene Freight Prepaid . Paid Rapid Delivery P1,344, upon
shipment of the goods.
Freight Prepaid: payment c/o seller Bel

JapSilk: 20%DP, 2/15, n/30 Oct 13 - Purchased Japan Silk fabric from JapSilk,
P112,000 with the following terms: 20% downpaym
FOB Destination - expense c/o seller JapSilk balance 2/15, n/30; FOB Destination - Freight Collect
Freight Collect - payment c/o buyer Bel
In order to maintain good credit standing with JapSi
JapSilk: 2/15, n/30 Bel settled its outstanding account by issuing 30-da
non-interest bearing promissory note to JapSilk.

Sep 29 to Oct 14 days

13
But Bel can't avail of "cash discount" because we are
paying cash, instead, settling with PN

Payment of freight on FOB Oct 14 - Paid freight on Japsilk Shipment, P2,240.

Destination - reduce AP w/ JapSilk

Credit Memo #100 to Arlene Co. for Oct. 14- Issued Credit Memo No. 100 to Arlene Co. fo
return of mdse sold allowances granted on slightly deformed items
delivered the previous day, P672.
Note: Credit Memo credits the Customer Acct, which
has a normal debit balance; therefore reduces the
Arlene Co: partial settlement of account Oct 15- Received P10,000 from Arlene Co. in partial
settlement of the account on Oct. 11. No partial
discount is applied.
FABrides Oct 16 - Sold bridal garments on account to FABride
a list price of P38,000. Shipping terms: FOB
List Price 38,000.00 Destination - freight prepaid; P560.
Less Trade Discount @5% 1,900.00
Invoice Price 36,100.00
FOB Destination: expense c/o seller
Freight Prepaid: payment c/o seller

Abe Appliances: 2/10, n/30 Oct 17 - Purchased AC unit for the store from Abe
Appliances, P56,000. Terms: 2/10; n/30; FOB Shippin
Point, Collect.

FOB Shipping Point: expense c/o buyer Bel Oct 17 - Paid freight on AC unit, P560.

Freight Collect: payment c/o buyer Bel Note: freight on fixed asset is capitalized.

AR-POSHMina Oct 18 - Sold goods on account to POSHMina,

P40,320 net of trade discount. Freight
charged by Rapid Delivery amounts to
P1,120; FOB Destination, collect
FOB Destination - expense c/o seller Bel

Freight collect - payment c/o buyer

AR-Arlene Co. Oct 21- Collected the balance of the account of Arlen
Gross Sales Co. in
28,000.00 Oct 12full.
to 21 9 days

Less Sales Returns & Allowances 600.00

Sales entitled to discount 27,400.00
Discount 548.00
Net Sales 26,852.00
VAT 3,222.24
Partial Collection (10,000.00)
Freight of Arlene paid by us 1,344.00
Amount collected 21,418.24

Payment of salaries, net of PH & HDMF Cont. Oct 25 - Paid semi-monthly payroll less deduction fo
and HDMF.

AP-Abe Appliance Center: 2/10, n/30 Oct 26- Paid Abe Appliance Center in full.

Cost of AC (Store Equipment), excl fr 50,000.00 Oct 17 to on

Discount 26 fixed asset 9isdays
credited to fixed asset
Less discount 1,000.00 account
Net cost of equipment 49,000.00

Cash purchases Oct 27- Cash Purchases, P40,000 list price, less 10%
20%. FOB Destination, prepaid, P1,120.
 Oct 27- Cash Purchases, P40,000 list price, less 10%
20%. FOB Destination, prepaid, P1,120.
List price 40,000.00
First trade discount 4,000.00
Balance 36,000.00
2nd trade discount 7,200.00
Invoice Price 28,800.00

FOB Destination: expense c/o seller CashSeller

Freight Prepaid: payment c/o seller CashSeller
no entry

AP - JapSilk: 20%DP, 2/15, n/30 Oct 28 - Paid JapSilk account in full.

Cost of mdse purchased, net of DP 80,000.00
Less discount @ 2% 1,600.00 Oct 13 to 28 15 days
Net cost of purchases 78,400.00
VAT 9,408.00
Freight paid for JapSilk 2,240.00
Net amount paid 85,568.00

Payment of utilities: Oct 28 - Paid for utilities: Meralco - P13,440; PLDT -

P2,240; Maynilad - P896
Meralco 13,440.00
PLDT 2,240.00
Maynilad 896.00
Total 16,576.00

List Price 280,000.00 Oct 30- Cash Sales, P280,000 list price. FOB shippin
point, collect. Freight Cost P5,000.
Less Trade discount 14,000.00
Invoice Price 266,000.00
FOB Shipping point: expense c/o buyer CashBuyer
Freight collect: payment c/o CashBuyer

Payroll taxes for the month. Oct 31- Recorded Payroll Taxes
HDMF: P100 per employee
PH: @1.5%
SSS: P1,200
EC: P30

Refund to cash customer. Oct 31- Refunded a cash customer for goods returne
P2,240.

Oct 31 - Close Input and Output VAT accounts and

recognize VAT Payable (liability) OR Creditable Inpu
Tax (asset) account.
Gray-filled transactions bear the same entry as tha
No VAT transaction.
of 5% to all customers;

n from Dan Trading, P44,800,

pping point - Freight Collect.

id Delivery for goods

2,240.

ent from POSHMina.

ready been deducted from

already net of trade discount

DM No. 015, to Dan Trading

d, P3,360.

Supplier Acct, which has a

ore reduces the account balance

pplies, P1,120. Terms: credit

y; Freight of P56; FOB
id
s recorded as transportation
t of supplies

erest bearing note from

of outstanding balance.

es of two store clerks, P15,000.

ribution to SSS, other deductions
SSS = P600/employee.

ount with Dan Trading

 supplies purchased online,
ms to be returned, payment
agreed upon. Received notice
arge.
than merchandise reduces
PRA is used only for return

e Company, P31,360 net of

rms: FOB shipping point -
d Delivery P1,344, upon

lk fabric from JapSilk,

g terms: 20% downpayment,
stination - Freight Collect.

redit standing with JapSilk,

account by issuing 30-day
ssory note to JapSilk.

discount" because we are not

ng with PN

silk Shipment, P2,240.

o No. 100 to Arlene Co. for

htly deformed items
P672.
the Customer Acct, which
; therefore reduces the
rom Arlene Co. in partial
on Oct. 11. No partial

ts on account to FABrides, at
pping terms: FOB
d; P560.
 for the store from Abe
s: 2/10; n/30; FOB Shipping

unit, P560.

t is capitalized.

ount to POSHMina,
unt. Freight
amounts to
ollect

ce of the account of Arlene

payroll less deduction for PH

Center in full.

redited to fixed asset

0,000 list price, less 10% and

epaid, P1,120.
 0,000 list price, less 10% and
epaid, P1,120.

nt in full.

Meralco - P13,440; PLDT -

00 list price. FOB shipping

P5,000.

axes

stomer for goods returned,

tput VAT accounts and

bility) OR Creditable Input
ear the same entry as that of
ransaction.
CREDIT TERMS: 2/10, N/30
Customer's Name: POSHMina
Address:
Terms F Debit Credit
25-Sep-20 12,320.00
04-Oct-20 collection in full GJ1 12,320.00
18-Oct-20 sale of goods GJ1 40,320.00
18-Oct-20 freight collect on mdse sold GJ1 1,120.00

Customer's Name: FABrides

Address:
Date Terms F Debit Credit
05-Sep-20 24,080.00
09-Oct-20 received PN in settlement of op GJ1 24,080.00
16-Oct-20 GJ1 40,432.00

Customer's Name: Arlene Co.

Address:
Date Terms F Debit Credit

14-Oct-20 return of mdse GJ1 672.00

15-Oct-20 partial collection GJ1 10,000.00
21-Oct-20 collection in full GJ1 22,032.00
 SCHEDULE OF ACCOUNTS RECEIVABLE
31-Oct-20

POSHMina 39,200.00
FABrides 40,432.00
Total 79,632.00

Control Account ACCOUNTS RECEIVABLE

Date Terms F Debit Credit

30/9/20 Beginning balance 36,400.00
03-Oct-20 POSHMina GJ1 12,320.00
09-Oct-20 FABrides GJ1 24,080.00
12-Oct-20 Arlene Co. GJ1 32,704.00
14-Oct-20 Arlene Co. GJ1 672.00
15-Oct-20 Arlene Co. GJ1 10,000.00
16-Oct-20 FABrides GJ1 40,432.00
18-Oct-20 POSHMina GJ1 40,320.00
18-Oct-20 POSHMina GJ1 1,120.00
21-Oct-20 Arlene Co. GJ1 22,032.00
HMina Supplier's Name: JapSilk
Address:
Balance Date Terms F Debit Credit
12,320.00 29-Sep-20 2/15, n/30 44,800.00
- 13-Oct-20 20%DP, 2/15, n/30 GJ1 89,600.00
40,320.00 13-Oct-20 Settlement w/ PN GJ1 44,800.00
39,200.00 14-Oct-20 Fob Destination, Freight Collect GJ1 2,240.00
28-Oct-20 full settlement of account GJ1 87,360.00

Brides Supplier's Name: FilAbaca

Address:
Balance Date Terms F Debit Credit
24,080.00 25-Sep-20 10%; 2/10, n/30 32,200.00
- 08-Oct-20 full payment GJ1 32,200.00
40,432.00
40,432.00

ne Co. Supplier's Name: Dan Trading

Address:
Balance Date Terms F Debit Credit
02-Oct-20 2/10, n/30 GJ1 44,800.00
(672.00) 05-Oct-20 Returns GJ1 26.40
(10,672.00) 10-Oct-20 full payment GJ1 44,773.60
(32,704.00)

Supplier's Name: Abe Appliances

Address:
Date Terms F Debit Credit
17-Oct-20 Purchase of AC unit; 2/10, n/30 GJ1 56,000.00
26-Oct-20 Payment of account in full GJ1 56,000.00

Supplier's Name: Credit Card Co.

 Address:
Date Terms F Debit Credit
07-Oct-20 online purchase of supplies GJ1 1,120.00
11-Oct-20 Returns GJ1 224.00

SHEDULE OF ACCOUNTS PAYABLE

31-Oct-20

Credit Card Co. 896.00

RECEIVABLE Control Account ACCOUNTS PAYABLE

Balance Date Terms F Debit Credit

36,400.00 30/09/20 Beginning balance 77,000.00
24,080.00 01-Oct-20 Dan Trading GJ1 - 44,800.00
- 05-Oct-20 Dan Trading GJ1 26.40
32,704.00 07-Oct-20 Credit Card Co. GJ1 1,120.00
32,032.00 08-Oct-20 FilAbaca GJ1 32,200.00
22,032.00 10-Oct-20 Dan Trading GJ1 44,773.60
62,464.00 11-Oct-20 Credit Card Co. GJ1 224.00
102,784.00 13-Oct-20 JAPSilk GJ1 89,600.00
101,664.00 JAPSilk GJ1 44,800.00
79,632.00 14-Oct-20 JAPSilk GJ1 2,240.00
79,632.00 17-Oct-20 Abe Appliances GJ1 56,000.00
79,632.00 26-Oct-20 Abe Appliances GJ1 56,000.00
79,632.00 28-Oct-20 JAPSilk GJ1 87,360.00
79,632.00
79,632.00
79,632.00
79,632.00

1.00
pSilk

Balance
44,800.00
134,400.00
89,600.00
87,360.00
-

Abaca

Balance
32,200.00
-
-
-

Trading

Balance
44,800.00
44,773.60
-
-

ppliances

Balance
56,000.00
-
-
-

Card Co.
 Balance
1,120.00
896.00
896.00
896.00

TS PAYABLE

Balance
77,000.00
121,800.00
121,773.60
122,893.60
90,693.60
45,920.00
45,696.00
135,296.00
90,496.00
88,256.00
144,256.00
88,256.00
896.00
896.00
896.00
896.00
896.00

1.00
 GENERAL JOURNAL
DATE
2023 PARTICULARS F Debit Credit
7 1 Cash 200,000.00
Merchandise Inventory 50,000.00
Lopez, Capital 250,000.00

2 Purchases 7,500.00
Cash 2,500.00
Accounts Payable / 5,000.00

3 Purchases 10,000.00
Accounts Payable / 10,000.00

4 Freight-in 750.00
Cash 750.00

5 Cash 15,000.00
Sales x 15,000.00

7 Cash 4,000.00
Accounts Receivable / 5,000.00
Sales x 9,000.00

8 Office Supplies 1,500.00

Cash 1,500.00

10 Accounts Payable / 500.00

Purchase Returns & Allowances 500.00

12 Sales Returns & Allowances 220.00

Cash 220.00

13 Cash 4,950.00
Sales Discounts 50.00
Accounts Receivable 5,000.00

15 Sales Salaries 3,500.00

Office Salaries 2,500.00
Cash 6,000.00

17 Cash 14,000.00
 Sales x 14,000.00

18 Accounts Payable 5,000.00

Cash 4,850.00
Purchase Discounts 150.00

19 Accounts Receivable 5,836.10

Sales x 5,336.10
Cash 500.00

20 Accounts Payable 4,500.00

Cash 4,500.00

25 Cash 1,167.22
Accounts Receivable 1,167.22

31 Taxes & Licenses Expense 1,291.98

Cash 1,291.98
JOURNAL

Explanation/Computation/Customer/Supplier Info
Gross Sales
Investment of Lopez - cash and
merchandise Less:

Net Sales
Purchase of merchandise from Pax Candles Less Cost of Sales
Term: P2500 DP; bal. 2/10, n/30 Merchandise Inventory, Beg.
Net Cost of Purchases

Divisoria Capiz Crafts

Term: 3% eom, n/30
FOB SP, Collect

Total Goods Available for Sale

Paid freight for capiz shipment Less: Merchandise Inventory, End
Cost of Goods Sold or Cost of Sales
Cash sales Less Gross Profit
Less Operating Expenses

Sold to Manuela Shopping Mart

P4000 DP; balance 2/5, 1/10, n/30
Operating Income

Purchase of office supplies

Return of mdse to Pax Candles

return of sold mdse from customer

Date of payment 13.00

Date of sale trx 7.00
# of days - entitled to 1% disct 6.00
Collection of Manuela's account w/in
10 day disct period.

Paid salaries

Cash sales to Kulasa Scents

Payment to Divisoria Capiz Crafts within the
discount period

List price 5,500.00

Less 1% TD 55.00
Balance 5,445.00
Less 2% TD 108.90
Invoice Price 5,336.10
Terms: 2/10, n/30
FOB SP, Prepaid

Payment to Pax Candles in full.

20% collection of Marivic's account

Paid 3% percentage tax on net sales

Gross Sales 43,336.10
Sales Discounts 50.00
Sales Returns & Allowances 220.00 270.00
Net Sales 43,066.10
Less Cost of Sales
Merchandise Inventory, Beg. 50,000.00
Net Cost of Purchases
Purchases 17,500.00
Add: Freight In 750.00
Total 18,250.00
Less: Purchase Discounts - 150.00
Purchase Returns & Allowances - 500.00 17,600.00
Total Goods Available for Sale 67,600.00
Less: Merchandise Inventory, End 43,500.00
Cost of Goods Sold or Cost of Sales 24,100.00
Less Gross Profit 18,966.10
Less Operating Expenses
Sales Salaries 3,500.00
Office Salaries 2,500.00
Taxes and Licenses 1,291.98 7,291.98
Operating Income 11,674.12
 GENERAL JOURNAL Additional assumption fo
DATE
2023 PARTICULARS F Debit Credit
7 1 Cash 200,000.00 Gross Sales
Merchandise Inventory 50,000.00 Less:
Lopez, Capital 250,000.00
Net Sales
2 Merchandise Inventory 7,500.00 Less: Cost of Sales
Cash 2,500.00 Gross Profit
Accounts Payable / 5,000.00

3 Merchandise Inventory 10,000.00

Accounts Payable / 10,000.00

4 Merchandise Inventory 750.00

Cash 750.00

5 Cash 15,000.00
Sales x 15,000.00

Cost of Sales 9,000.00

Merchandise Inventory 9,000.00

7 Cash 4,000.00
Accounts Receivable / 5,000.00
Sales x 9,000.00

Cost of Sales 5,400.00

Merchandise Inventory 5,400.00

8 Office Supplies 1,500.00

Cash 1,500.00

10 Accounts Payable / 500.00

Merchandise Inventory 500.00

12 Sales Returns & Allowances 220.00

Cash 220.00

Merchandise Inventory 132.00

 Cost of Sales 132.00

13 Cash 4,950.00
Sales Discounts 50.00
Accounts Receivable 5,000.00

15 Sales Salaries 3,500.00

Office Salaries 2,500.00
Cash 6,000.00

17 Cash 14,000.00
Sales x 14,000.00

Cost of Sales 8,400.00

Merchandise Inventory 8,400.00

18 Accounts Payable 5,000.00

Cash 4,850.00
Merchandise Inventory 150.00

19 Accounts Receivable 5,836.10

Sales x 5,336.10
Cash 500.00

Cost of Sales 3,201.66

Merchandise Inventory 3,201.66

20 Accounts Payable 4,500.00

Cash 4,500.00

25 Cash 1,167.22
Accounts Receivable 1,167.22

31 Taxes & Licenses Expense #REF!

Cash #REF!
Additional assumption for PERPETUAL SYSTEM: Cost of merchandise is 60% of Sales

MERCHANDISE INVENTORY
Gross Sales 43,336.10 50,000.00
Sales Discounts (50.00) 7,500.00
Sales Returns & Allowances (220.00) 10,000.00
Net Sales 100% 43,066.10 750.00
Less: Cost of Sales 60% (26,001.66)
Gross Profit 40% 17,064.44
68,250.00
41,598.34
ERCHANDISE INVENTORY
9,000.00
5,400.00
500.00
8,400.00
150.00
3,201.66
26,651.66
CREDIT TERMS:
Customer's Name: Manuela Shopping Mart
Address:
Date Terms F Debit Credit
07-Jul-23 Balance 2/5, 1/10, n/30 5,000.00
13-Jul-23 collection 5,000.00

Customer's Name: Marivic Pena

Address:
Date Terms F Debit Credit
19-Jul-23 Terms: 2/10, n/30 5,836.10

Customer's Name:
Address:
Date Terms F Debit Credit
opping Mart Supplier's Name: PAX CANDLES
Address:
Balance Date Terms F Debit Credit
5,000.00 02-Jul-23 2/10, N/30 5,000.00
- 10-Jul-23 return of mdse 500.00
-
-

c Pena Supplier's Name: Divisoria Capiz Craft

Address:
Balance Date Terms F Debit Credit
5,836.10 03-Jul-23 Term: 3% eom, n/30 10,000.00
5,836.10 18-Jul-23 payment in full 5,000.00
5,836.10
5,836.10

Supplier's Name:
Address:
Balance Date Terms F Debit Credit
-
-
-
-

SALES

Date Terms F Debit Credit

05-Jul-23 Cash Sales 15,000.00
07-Jul-23 Manuela Shopping Mart 9,000.00
17-Jul-23 Cash Sales 14,000.00
19-Jul-23 Marivic Pena 5,336.10

Supplier's Name:
Address:
Date Terms F Debit Credit
ANDLES

Balance
5,000.00
4,500.00
4,500.00
4,500.00
4,500.00

Capiz Craft

Balance
10,000.00
5,000.00
5,000.00
5,000.00

Balance
-
-
-
-

LES

Balance
15,000.00
24,000.00
38,000.00
43,336.10

Balance
-
-
-
-
LIST OF ACCOUNT TITLES

Lopez, Capital
Lopez, Drawings
Accounts Payable
Accounts Receivable
Accrued Expenses
Advertising Expense
Allowance for Bad Debts
Bad Debt expense
Cash
Cost of Sales
Depreciation Expense
EC Contributions Payable
Freight-in
Freight-out
Furniture & Fixtures
Gas & Oil Expense
HDMF Premiums Payable
Input VAT
Insurance Expense
Interest Income
Loans Payable
Merchandise Inventory
Miscellaneous Expense
Notes Payable
Notes Receivable
Office Equipment
Office Salaries
Office Supplies
Office Supplies Expense
Output VAT
Payroll Taxes
PH Premiums Payable
Prepayments
Purchases
Purchase Discounts
Purchase Returns & Allowances
Rent Expense
Repair Equipment
Repairs Expense
Sales Salaries
Salaries Payable
Sales
Sales Discounts
Sales Returns & Allowances
SSS Premiums Payable
Store Equipment
Store Supplies
Store Supplies Expense
Taxes & Licenses Expense
Utilities Payable
Utilties Expense
VAT Payable
Vehicles
 GENERAL JOURNAL
DATE
2023 PARTICULARS F Debit Credit
7 1 Cash 25,000.00
Furniture & Fixtures 15,000.00
Merchandise Inventory 20,000.00
Poras, Capital 60,000.00

4 Store Supplies 1,339.29

Input VAT 160.71
Cash 1,500.00

5 Purchases 4,285.71
Input VAT 514.29
Accounts Payable - Chic Wear / 4,800.00

6 Freight In 178.57
Input VAT 21.43
Cash 200.00

10 Cash 1,000.00
Accounts Receivable - Mona's D.S. 3,000.00
Sales 3,571.43
Output VAT 428.57

11 Employees' IOU or Advances to Employees 150.00

Cash 150.00

12 Accounts Payable - Chic Wear / 4,800.00

Purchase Discount 42.86
Input VAT 5.14
Cash 4,752.00

14 Cash 1,500.00
Rent Income 1,500.00

15 Salaries Expense 13,000.00

Payroll taxes 2,600.00
Employees' IOU or Advances to Employees 150.00
Cash 10,250.00

Jul-17 Cash 9,750.00

Sales 8,705.36
Output VAT 1,044.64
Jul-18 Cash 4,000.00
Notes Receivable - Lea's Creations / 10,000.00
Output Tax 1,500.00
Sales 12,500.00

Jul-20 Purchases 8,928.57

Input VAT 1,071.43
Accounts Payable - Fashion House 10,000.00

Jul-20 Cash 2,940.00

Output VAT 6.43
Sales Discount 53.57
Accounts Receivable - Mona's D.S. / 3,000.00

24 Furnitures & Fixtures - High Builders 2,232.14

Input Tax 267.86
Cash 2,500.00

25 Purchase 3,125.00
Input VAT 375.00
Cash 3,500.00

28 Cash 10,055.56
Interest Income 55.56
Notes Receivable - Lea's Creations / 10,000.00

29 Cash 3,750.00
Accounts Receivable - Brenda's Apparels / 3,750.00
Sales 6,696.43
Output Vat 803.57

30 Rent Expense 2,678.57

Input VAT 321.43
Cash 3,000.00

30 Salaries Expense 13,000.00

Payroll taxes 2,600.00
Cash 10,400.00

31 Utilities Expense 669.64

Input VAT 80.36
Utilities Payable 750.00
NAL All transactions, except investment and salaries, are

Explanation/Computation/Customer/Supplier Info
Gross Sales
Investment by the owner - no VAT Less:
transactions.
Net Sales
Less Cost of Sales
VAT inclusive transactions: Invoice Price = Cost + VAT Merchandise Inventory, Beg.
therefore: Invoice Price = 100% Cost + 12% VAT Net Cost of Purchases
Purchase of supplies

Purchased merchandise from Chic Wear

Terms: 1/10, n/30. Invoice #123

Total Goods Available for Sale

Less: Merchandise Inventory, End
Freight on merchandise purchased. Cost of Goods Sold or Cost of Sales
Less Gross Profit
Less Operating Expenses
Sold mdse to Mona's
Terms: 25% DP; 2/10, n/30

Operating Income

Cash advance by a store clerk.

Additional assumptions:

7-Jul
Gross amount of Purchases 4,285.71 11-Jul
x Discount of 1% (12-5=7 days) 0.01 12-Jul
Discount 42.86 18-Jul
Jul-20
Rental income from Nova Lozada
20/7
27-Jul
28-Jul
assume 20% total payroll deductions

Cash sales to date

Invoice Price 14,000.00
Sale of mdse to Lea's Creations

Received shipment of goods from Fashion House

Gross Sales value subject to discount 2,678.57

July 20 - July 10 = 10days

Payment of display cabinets to High Builders

Cash purchases from Fanny Soriano

Collection of Lea's Creations P.N.

Sold mdse to Brenda's Apparel, invoice price 7,500

Terms: 50% DP 2/10, n/30

Paid rent for the store

Payment of salaries, assume 20% payroll taxes

Received bills from PLDT & Meralco

All transactions, except investment and salaries, are VAT-inclusive

Gross Sales
Sales Discounts
Sales Returns & Allowances
Net Sales
Less Cost of Sales
Merchandise Inventory, Beg.
Net Cost of Purchases
Purchases
Add: Freight In
Total
Less: Purchase Discounts
Purchase Returns & Allowances
Total Goods Available for Sale
Less: Merchandise Inventory, End
Cost of Goods Sold or Cost of Sales
Less Gross Profit
Less Operating Expenses
Sales Salaries
Office Salaries
Taxes and Licenses
Operating Income

Additional assumptions:
7-Jul AP - Chic Wear
P336 worth of merchandise was returned to Chic Wear. PRA
Mona returned 224 worth of merchandise sold. Input VAT
Paid Chic Wear in full
Rather assume that Lea's PN was a 60-day, 20% note 11-Jul SRA
Assume further, for Fashion House: Output VAT
FOB Shipping Point, Freight Prepaid 224.00 AR-Mona's
Collected from Mona
Paid Fashion House 12-Jul Accounts Payable - Chic Wear
Discounted the note of Lea's Creations Purchase Discount
Input VAT
Cash

18-Jul same entry

20/7 Additional entry:

Freight In
 Input VAT
Accounts Payable-Fashion House

20-Jul Cash
Output VAT
Sales Discount
Accounts Receivable - Mona's D.S.

27-Jul Accounts Payable - Fashion House

Purchase Discount
Input VAT
Cash

28-Jul
 336.00
300.00
36.00

200.00 Chic Wear Purchases

24.00 Gross Purchases 4,285.71
224.00 Less Purchase Returns & Allowances 300.00
Purchases entitled to discount 3,985.71
4,464.00 Discount 39.86
39.86 Net Purchases 3,945.86
4.78
4,419.36

Principal of the note

Interest
Maturity Value of note
200.00 Discount @ 22%
 24.00 Net Proceeds
ashion House 224.00 Less Carrying Amount
Principal of the note 10,000.00
3,700.48 Accrued interest
8.09
67.43
e - Mona's D.S. 3,776.00

ashion House 10,224.00

178.57
21.43
10,024.00
 VAT AP AR-Arlene Co. Sales VAT
514.29 4,800.00 Gross Sales 3,571.43 428.57
36.00 336.00 Less DP
478.29 4,464.00 AR Balance 3,571.43 428.57
4.78 44.64 Less Sales Returns & Allowances 200.00 24.00
473.50 4,419.36 AR entitled to discount 3,371.43 404.57
Discount 67.43 8.09
Net Sales/collection 3,304.00 396.48

10,000.00
333.33 Term of note 60.00
10,333.33 Less expired days 8.00
328.37 Discount Period 52.00
10,004.96
AR Chic Wear Purchases VAT AP
4,000.00 Gross Purchases 8,928.57 1,071.43 10,000.00
1,000.00 Less Purchase Returns & Allowances - - -
3,000.00 Purchases entitled to discount 8,928.57 1,071.43 10,000.00
224.00 Discount 178.57 21.43 200.00
3,776.00 Balance 8,750.00 1,050.00 9,800.00
75.52
3,700.48 Freight In 200.00 24.00 224.00
Total Payment 10,024.00
10,024.00
CREDIT TERMS:
Customer's Name: Mona's Dress Shop
Address:
Date Terms F Debit Credit
10-Jul-23 2/10, n/30 GJ1 3,000.00
20-Jul-23 collection of account GJ1 3,000.00

Customer's Name: Lea's Creation

Address: Promissory Note
Date Terms F Debit Credit
18-Jul-23 10-day, 20% PN GJ1 10,000.00
28-Jul-23 payment GJ1 10,000.00

Customer's Name: Brenda's Apparels

Address:
Date Terms F Debit Credit
29-Jul-23 2/10, n/30 GJ1 3,750.00
Dress Shop Supplier's Name: Chic Wear Store
Address:
Balance Date Terms F Debit Credit
3,000.00 05-Jul-23 1/10, n/30 GJ1 4,800.00
- 07-Jul-23 Returns GJ1 336.00
- 12-Jul-23 payment in full GJ1 4,800.00
-

reation Supplier's Name: Fashion House

ory Note Address:
Balance Date Terms F Debit Credit
10,000.00 20-Jul-23 2/10, n/30 GJ1 10,000.00
-
-
-

Apparels Supplier's Name:

Address:
Balance Date Terms F Debit Credit
3,750.00
3,750.00
3,750.00
3,750.00

SALES

Date Terms F Debit Credit

05-Jul-23 Cash Sales 15,000.00
07-Jul-23 Manuela Shopping Mart 9,000.00
17-Jul-23 Cash Sales 14,000.00
19-Jul-23 Marivic Pena 5,336.10

Supplier's Name:
Address:
Date Terms F Debit Credit
Wear Store

Balance
4,800.00
4,464.00
(336.00)
(336.00)
(336.00)

on House

Balance
10,000.00
10,000.00
10,000.00
10,000.00

Balance
-
-
-
-

SALES

Balance
15,000.00
24,000.00
38,000.00
43,336.10

Balance
-
-
-
-
Statement of Income THIS IS STILL IN PROGRESS!!!
Source Document/Report: Worksheet and Notes to FS

Automatrix
Statement of Income
For the month ended July 31, 2022
Amounts in Philippine Peso

Note
Sales 1 31,419.64
Less: Cost of Goods Sold 2 18,475.00
Gross Profit 12,944.64
Add: Other Income 3 1,394.84
Total 14,339.48
Less: Expenses
Distribution Costs 4 9,657.86
General and Administrative Expenses 5 2,990.98
Interest Expense 12,648.84
Net Income (Loss) 1,690.64

Statement of Changes in Equity

Source Document/Report:
Beginning and Additional Investment GL for Capital
Withdrawal Worksheet
Net Income (Loss) Statement of Income

Zodiac
Statement of Changes in Equity
For the month ended July 31, 2022
Amounts in Philippine Peso

Poras, Capital - July 1

Additional Investment 60,000.00
Withdrawal
Net Income (Loss) 1,690.64
Poras, Capital - July 31 61,690.64

Statement of Finanical Position

Source Document/Report:
All accounts except for Ending Capital Worksheet and Notes to FS
Ending Capital Statement of Changes in Equity
Zodiac
Statement of Financial Position
July 31, 2022
Amounts in Philippine Peso

ASSETS
Note
Current Assets
Cash 20,025.00
Trade and Other Receivables 6 12,000.00
Merchandise Inventory
Prepaid Expenses 7 750 58,207.05
Non-Current Assets
Property and Equipment 8 16,959.30
Total Assets 75,166.35

LIABILITIES AND EQUITY

Current Liabilities
Trade and Other Payables 9 13,475.71
Equity
Poras, Capital 61,690.64
Total Liabilities and Equity 75,166.35

Statement of Cash Flows: Direct Method

Source Document/Report:
Cash Beginning Balance GL for Cash
Cash Inflows CRJ
Cash Outflows CDJ

Zodiac
Statement of Cash Flows
For the month ended July 31, 2022
Amounts in Philippine Peso

Cash Flows from Operating Activities

Collection from Customers 31,495.56
Collection of Rent 1,500.00
Payment for Supplies -1,500.00
Payment for Freight -200
Payment for Salaries -6,649.00
Payment to Suppliers of Goods -8,252.00
Payment for Rent -3,000.00
Net Cash Flows Provided (Used) by Operating Activities 13,394.56
Cash Flows from Investing Activities
Payment for Construction of Display Cabinets -2,500.00
Net Cash Flows Provided (Used) by Investing Activities -2,500.00
Cash Flows from Financing Activities
Investment from Owner 25,000.00
Net Cash Flows Provided (Used) by Financing Activities 25,000.00
Net Increase (Decrease) in Cash 35,894.56
Cash Balance, July 1
Cash Balance, July 31 35,894.56

Statement of Cash Flows: Indirect Method

Source Document/Report:
Net Income/Non-Cash
Increase (Decreases) inExpense/Non-Cash Revenues
CA and CL except for Cash, Short-Term Investments, Short- Statement of Income
Term Borrowings Statement of Financial Position
Cash Inflows (Investing and Financing Activities) CRJ
Cash Ouflows (Investing and Financing Activities) CDJ
Cash, Beginning Balance Cash in the GL

Zodiac
Statement of Cash Flows
For the month ended July 31, 2022
Amounts in Philippine Peso

Cash Flows from Operating Activities

Net Income 1,690.64
Depreciation 272.84
Increase in Trade and Other Receivables, Net -3,562.50
Decrease in Merchandise Inventory 2,000.00
Increase in Prepaid Expenses -750
*Increase in Trade and Other Payables 13,743.57
Net Cash Flows Provided (Used) by Operating Activities 13,394.55
Cash Flows from Investing Activities
Payment for Construction of Display Cabinets -2,500.00
Net Cash Flows Provided (Used) by Investing Activities -2,500.00
Cash Flows from Financing Activities
Investment from Owner 25,000.00
Net Cash Flows Provided (Used) by Financing Activities 25,000.00
Net Increase (Decrease) in Cash 35,894.55
Cash Balance, July 1
Cash Balance, July 31 35,894.55
Zodiac
Notes to Financial Statements
As of and for the month ended July 31, 2022
Amounts in Philippine Peso

Note 1: Net Sales

Sales 31,473.21
Less: Sales Returns and Allowances
Sales Discounts 53.57 53.57
Net Sales 31,419.64

Note 2: Cost of Goods Sold

Merchandise Inventory, Beginning 20,000.00
Add: Net Purchases 16,475.00
Total Cost of Goods Available for Sale 36,475.00
Less: Merchandise Inventory End 18,000.00
Cost of Goods Sold 18,475.00

Purchases 16,339.29
Add: Freight In 178.57
Total Cost of Goods Delivered 16,517.86
Less: Purchase Returns and Allowances
Purchase Discounts 42.86 42.86
Net Purchases 16,475.00

Note 3: Other Income

Rent Income 1,339.29
Interest Income 55.56
Total Other Income 1,394.84

Note 4: Distribution Costs

Salaries Expense 6,240.00
SSS & EC Premiums Expense 187.20
Philhealth Premiums Expense 93.60
HDMF Premiums Expense 80.00
Store Supplies Expense 589.29
Utilties Expense 401.79
Rent Expense 1,875.00
Depreciation Expense 190.99
 Total Distribution Cost 9,657.86

Note 5: General and Administrative Expenses

Salaries Expense 1,560.00
SSS & EC Premiums Expense 46.80
Philhealth Premiums Expense 23.40
HDMF Premiums Expense 20.00
Utilties Expense 267.86
Rent Expense 803.57
Bad Debts Expense 187.50
Depreciation Expense 81.85
Total General and Administrative Expenses 2,990.98

Note 6: Trade and Other Receivables

Accounts Receivable 14,000.00
Allowance for Bad Debts - 2,000.00
Notes Receivable
Total Trade and Other Receivables 12,000.00

Note 7: Prepaid Expenses

Supplies 500.00
Prepaid Interest 500.00
Prepaid Rent 4,267.00
Advances to Employees
Prepaid VAT
Total Prepaid Expenses 750.00

Note 8: Property and Equipment

Equipment
Accumulated Depreciation - Equipment
Furniture and Fixtures 17,232.14
Accumulated Depreciation - Furniture & Fixtrues - 272.84
Total Property and Equipment 16,959.30

Note 9: Trade and Other Payables

Accounts Payable 10,000.00
Withholding Taxes Payable 700.00
SSS and EC Premiums Payable 468.00
Philhealth Premiums Payable 234.00
HDMF Premiums Payable 200.00
Utilities Payable 750.00
VAT Payable 1,123.71
Total Trade and Other Payables 13,475.71
of Financial Position

Increased Income, Not yet collected

Increased in COGS, Decrease in GP, Decrease in NI, No cash involved
Decreases Expense, Increased Net Income, Cash Payment
increased Exenses, Decreased Net Income, No cash payment

Increase in Trade and Other Payables 13,475.71

Add: Input Tax arising from purchase of F&F 267.86 Already accounted for in the Investing Actvitities; Dec
*Adjusted amount of Increase in Trade and Other Payables 13,743.57
If there are several cash accounts:
Note 6: Cash
Cash on Hand xxx
Cash in Bank xxx
Petty Cash Fund xxx
Total Cash xxx
n the Investing Actvitities; Decreased VAT Payab