Sales Journal

Invoice
Date No. Sales Output VAT
2020 Accounts Debited PR Credit Credit
Oct. 3 7001 Customer A a ₱ 150,000.00 ₱ 18,000.00
10 7002 Customer C a 100,000.00 12,000.00
15 7003 Customer D a 180,000.00 21,600.00

Total ₱ 430,000.00 ₱ 51,600.00

(411) (218)

Sales Journal is used to record sales of goods/merchandise on account

Sales Invoice (own company/natin) - proof of sales on account

Accounts Affected
Accounts Receivable (debit) Total Amount Before VAT
Sales (credit) Total Amount After VAT
Output Vat (credit) VAT Amount

Note:
On the accounts debited column write the name of our debtor (customer)

Immediately post on the Accounts Receivable Subsidiary Ledger of that particular customer
(debit side, amount added to the balance) SL PR is S- <page no.> Journal PR (check mark)

At the end of the period all columns are totalled and posted to its respective column in its correspondin
General Ledger Account. ( Sales and Output VAT credit side - amount added to balance and A/R debit si
amount - added to the balance; Journal PR (at the bottom of the total) is the account # of the account
where it is posted, Ledger PR - S- <page no.>)

Receipt of Returned Goods from Customer (Credit Memo/Receiving Report (natin) is sent) is recorded i
General Journal as follows:

Sales Returns And Allowances Total Amount After VAT

Output VAT VAT Amount
Accounts Receivable Total Amount Before VAT

It is important to note that entries at the general journal are also posted to the general ledger
 Accounts
Receivable
Debit
₱ 168,000.00
112,000.00
201,600.00

₱ 481,600.00
(113)

ar customer
(check mark)

umn in its corresponding

balance and A/R debit side
count # of the account

tin) is sent) is recorded in

general ledger
 Purchases Journal

Invoice
Date No. Purchases Input Vat
2020 Accounts Debited PR Debit Debit
Oct. 1 2452 Supplier A a ₱ 120,000.00 ₱ 14,400.00
5 6138 Supplier B a 180,000.00 21,600.00
8 8152 Supplier C a 70,000.00 8,400.00

Total ₱ 370,000.00 ₱ 44,400.00

(511) (118)

Purchases Journal is used to record purchase of goods on account

Sales Invoice (other company/nila) - proof of purchase on account

Accounts Affected
Purchases (Debit) Total Amount After VAT
Input VAT (Debit) VAT Amount
Accounts Payable (Credit) Total Amount Before VAT

Note:
On the accounts debited column write the name of our creditor (supplier)

Immediately post on the Accounts Payable Subsidiary Ledger of that particular customer
(Credit side, amount added to the balance) SL PR is P- <page no.> Journal PR (check mark)

At the end of the period all columns are totalled and posted to its respective column in its correspondin
General Ledger Account. ( Purchases and Input VAT debit side - amount added to balance and A/P cred
side - amount added to the balance; Journal PR (at the bottom of the total) is the account # of the acco
where it is posted, Ledger PR - P- <page no.>)

Receipt of Credit Memo/Receiving Report (nila) for Returned Goods is recorded in General Journal as
follows:

Accounts Payable Total Amount Before VAT

Purchase Returns and Alowances Total Amount After VAT
Input VAT VAT Amount

It is important to note that entries at the general journal are also posted to the general ledger
 Accounts
Payable Credit
₱ 134,400.00
201,600.00
78,400.00

₱ 414,400.00
(211)

PR (check mark)

umn in its corresponding

o balance and A/P credit
e account # of the account

d in General Journal as

general ledger
 Cash Receipt Journal

Invoice Account
Date OR NO Receivable
No.
2020 Accounts Debited PR Credit
* Oct. 8 3001 Customer B
* 11 3002 7001 Customer A a ₱ 145,600.00
* 20 3003 7002 Customer C a 112,000.00
* 22 3004 6115 Customer E a 25,000.00
*

Total ₱ 282,600.00
(113)

Cash Receipt Journal is used to record reciept/collection of cash out of SALES or COLLECTION OF RECEIVABLES

Official Receipt (own company/natin) - proof of cash reciept/collection

Accounts Affected for Cash Sales

Cash (Debit) Total Amount
Sales (credit) Total Amount After VAT
Output VAT (credit) VAT Amount

Accounts Affected for Collection of Receivables

Cash (Debit) Amount After Discount (if any)
Sales Discount (Debit if any) Discount Amount (if any)
Accounts Receivable (Credit) Receivable Amount

Note:
On the accounts debited column write the name of our customer who bought or paid an account (if
name of customer is not available simply write Cash Customer)

For collection of receivables, immediately post the A/R amount on the Accounts Receivable
Subsidiary Ledger of that particular customer (Credit side, amount deducted to the balance) SL PR is
CR- <page no.>, Journal PR (check mark)

At the end of the period all columns are totalled and posted to its respective column in its
corresponding General Ledger Account. ( A/R credit side - amount deducted to the balance; Sales
credit side - amount added to the balance; Output VAT credit side - amount added to balance; and
Cash and Sales Discount debit side - amount added to the balance; Journal PR (at the bottom of the
total) is the account # of the account where it is posted, Ledger PR - CR- <page no.>)

Cash receipt from Investment, Loans and Refunds for returned goods are recorded in the General Journ

Investment
Cash
X, Capital
Loans
Cash
Notes Payable

Refunds from supplier

Cash
Purchase Returns and Allowances
Input VAT

It is important to note that entries at the general journal are also posted to the general ledger
pt Journal

Cash
Sales Discount Output VAT
Sales Credit Debit Credit Debit
₱ 130,000.00 ₱ 15,600.00 ₱ 145,600.00
₱ 2,600.00 143,000.00
2,000.00 110,000.00 *
25,000.00

₱ 130,000.00 ₱ 4,600.00 ₱ 15,600.00 ₱ 423,600.00 ₱ 428,200.00

(411) (413) (218) (111)

COLLECTION OF RECEIVABLES

unt After VAT

fter Discount (if any)

mount (if any)

ught or paid an account (if

counts Receivable
ed to the balance) SL PR is

ve column in its
ed to the balance; Sales
nt added to balance; and
l PR (at the bottom of the
page no.>)

recorded in the General Journal as follows:

o the general ledger
₱ 428,200.00
 Cash Disbursement Jour

Check
Voucher Check No.
Date No. Sundry Debit
2020 Accounts Debited PR (Credit)
Oct. 3 82001 5320001 Supplies Expense 650 ₱ 2,000.00
Input VAT 118 240.00
5 82002 5320002 Office Equipment 112 6,000.00
Input VAT 118 720.00
5 82003 5320003 Rent Expense 531 20,000.00
Expanded Withholding Taxes Pay. 213 (1,000.00)
10 82004 5320004 Expanded Withholding Taxes Pay. 213 1,000.00
10 82005 5320005 SSS, Philhealth, Pagibig
10 82006 5320006 Utilities Payable 215 1,000.00
10 82007 5320007 Utilities Payable 215 4,000.00
15 82008 5320008 Payroll
16 82009 5320009 Supplier D 
20 82010 5320010 Supplier B 
25 82011 5320011 Purchases 511 30,000.00
Input VAT 118 3,600.00
30 82012 5320012 Supplier A 
31 82013 5320013 Payroll

Total ₱ 67,560.00

Cash Disbursement Journal is used to record cash payment made by the company.

Proof of Cash Disbursement are as follows:

* Cash Voucher/Check Voucher
* Copy of Check
* Official Receipt (other company (nila)
* Payment Confirmation (from the bank/electronically)

Accounts affected vary according to transaction:

* Purchase of Goods
Purchases (debit) Total Amount After VAT
Input VAT (debit) VAT Amount (note: if no column for inpu
Cash (credit) Total Amount Before VAT

* Purchase of Supplies
Supplies/Supplies Expense (debit) Total Amount After VAT (note: if no colu
Input Vat (debit) VAT Amount (note: if no column for inpu
Cash (credit) Total Amount Before VAT

* Purchase of Other Assets

 Asset Purchased (debit) Total Amount After VAT (note: the amou
Input VAT (debit) VAT Amount (note: if no column for inpu
Cash (credit) Total Amount Before VAT

* Payment for Payables

Accounts Payable (debit) Total Amount Before Discount (if any) (N
Cash (credit) Total Amount after discount (if any)
Purchase Discount (credit) Discout amount (if any)

* Payment of Salaries
Salaries Expense (debit) Gross Pay
SSS, PhilHealth & Pag-ibig Payable (CR) Deduction Amount
Witholding Tax Payable (credit) Deduction Amount
Cash (credit) Net Pay

* Payment of Rent (if rent amount in the check voucher is bigger than the check issued)

Rent Expense (debit) Rent Amount

Cash (credit) Paid amount
Expanded Withholding Tax Payable (CR) EWHT Amount (if any)

* Payment of Rent (if Check issued is equal to the Rent amount in the check voucher)

Rent Expense (debit) Rent Amount

Cash (credit) Paid amount

* Payment of Other Expenses

Expense Account (debit) Amount is written on the sundry column
Cash Credit expense amount

* Remittance of SSS, PhilHealth and Pag-ibig Payable to its Collecting Body (If adjusting entry are made on a m
SSS, PhilHealth & Pag-ibig Payable (Debit) Employee + Employer's Share
Cash (credit) Employee + Employer's Share
Note: In reality, separate accounts may be created for SSS, PhilHealth and Pag-ibig respectively)

* Remittance of SSS, PhilHealth and Pag-ibig Payable to its Collecting Body (No adjusting entry is made)
SSS, PhilHealth & Pag-ibig Payable (Debit) Employee's Share
SSS, PhilHealth & Pag-ibig Contribution (DR) Employer's Share
Cash (credit) Employee + Employer's Share

* Remittance of Witholding Tax

Withholding Tax Payable (debit) Payable Amount
Cash (credit) Payable Amount

* Remittance of Expanded Witholding Tax

Expanded Withholding Tax Payable(debit) Payable Amount
Cash (credit) Payable Amount
* Remittance of Witholding Tax and Expanded Witholding Tax (combined)
Withholding Tax Payable (debit) Payable Amount
Expanded Withholding Tax Payable(debit) Payable Amount
Cash (credit) WHT + EWHT

* Cash Refund to Customer

Sales Returns and Allowances Amount After VAT (note: amount is writt
Output VAT VAT Amount
Cash Amount Before VAT

Note:

Sundry Column is used to hold the amount debited for the account that has no debit money column. Th
debited column

On the Accounts Debited Column, if no entry was made at the sundry column, write the name of credito

For payment of payables, immediately post the A/P amount on the Accounts Payable Subsidiary Ledger
balance) SL PR is CD- <page no.>, Journal PR (check mark)

All columns except for Sundry is totalled and posted to its corresponding column in its respective Gener
account # of the account where it is posted, Ledger PR - CD- <page no.>)

Each amount in the Sundry column is posted to the debit column of the account affected. Journal PR (A
where it is posted, Ledger PR - CD- <page no.>)
ash Disbursement Journal

SSS, PH, Pag Pay

Debit With. Tax Cash
Salaries Expense Payable Debit Acounts Purchase
Debit (Credit) (Credit) Payable Debit Discount Credit Credit

₱ 2,240.00

6,720.00

19,000.00
₱ 1,266.00 2,266.00
₱ 6,700.00 6,700.00
1,000.00
4,000.00
₱ 24,000.00 (920.00) 23,080.00
₱ 30,000.00 30,000.00
201,600.00 ₱ 1,800.00 199,800.00

33,600.00
112,000.00 112,000.00
24,000.00 (1,600.00) (1,266.00) 21,134.00

₱ 48,000.00 ₱ 4,180.00 ₱ - ₱ 343,600.00 ₱ 1,800.00 ₱ 461,540.00

(522) (214) ( ) (211) (513) ( 111 )

unt After VAT

nt (note: if no column for input VAT the amount is written on sundry column and the account title on the account debited column)
unt Before VAT

unt After VAT (note: if no column for Supplies/Supplies Expense, the amount is written on sundry column and the account title on the
nt (note: if no column for input VAT the amount is written on sundry column and the account title on the account debited column)
unt Before VAT
 unt After VAT (note: the amount is written on sundry column and the account title on the account debited column)
nt (note: if no column for input VAT the amount is written on sundry column and the account title on the account debited column)
unt Before VAT

unt Before Discount (if any) (Note: the payable amount is written on the sundry column and the account title on the account debited c
unt after discount (if any)
mount (if any)

ount (if any)

written on the sundry column and the account title on the account debited column

justing entry are made on a monthly basis)

+ Employer's Share
+ Employer's Share
d Pag-ibig respectively)

adjusting entry is made) employee's shareEmployers share

1000 1500

+ Employer's Share
fter VAT (note: amount is written on the sundry column and the account title on the account debited column

as no debit money column. The account title of the account affected is written on the account

umn, write the name of creditor (if given) or description of the transaction.

nts Payable Subsidiary Ledger of that particular Supplier (debit side, amount deducted to the

column in its respective General Ledger Account. Journal PR (at the bottom of the total) is the

ccount affected. Journal PR (Adjacent to the account title) is the account # of the account
 ,

,
,
,
,
,
,
,
,

,
,
,

₱ 463,340.00 ₱ 463,340.00

he account debited column)

mn and the account title on the account debited column)

he account debited column)
ited column)
he account debited column)

nt title on the account debited column

Utilities Expense
Utilities Payable
Adjusting Entry

SSS, Ph,Pagibig contribution 1500

SSS,PH,Pagibig Payable 1500
Adjusting entry

Remittance
SSS,PH,Pagibig Payable 2500
Cash 2500
 Date Account Title and Explanation PR Debit Credit

Oct. 4 Accounts Payable 2 211 ₱ 22,400.00

11
Purchase Returns and Allowances 512 ₱ 20,000.00
Input VAT 118 2,400.00
RR#8562-Supplier A

6 Sales Returns and Allowances 412 20,000.00

Output VAT 218 2,400.00
Accounts Receivable  113 22,400.00
RR#8001-Customer A

31 Utilities Expense 640 1,000.00

Utilities Payable 250 1,000.00
Adjusting Entry - Water Bill

31 Utilities Expense 640 4,000.00

Utilities Payable 250 4,000.00
Adjusting Entry - Electric Bill

31 Retained Earnings 320 30,000.00

Cash Dividends Payable 270 30,000.00
Adjusting Entry- Dividends

31 Depreciation Expense - Store Equipment 670 1,000.00

Accu. Depr - Store Equipment 155 1,000.00
Adusting Entry - Dep. S.E

31 Depreciation Expense - Office Equipment 680 725.00

Accu. Depr - Office Equipment 165 725.00
Adjusting Entry - Dep. O.E

Note:

All entries at the General Journal are posted individually to its respective column in its specific account in
the General Ledger. Journal PR is the account number of the account where it was posted and ledger P
is GJ-<pageno>

Adjusting Entries are recorded at the general journal. Before journalizing, adjustments are drafted at the
Adjustment Columns of the worksheet.

Things to be Adjusted at the End of the Period

* Accrual of Expenses (Expenses incurred during the current month but is paid on the succeding month
Expense Account (debit)
Expense Payable (credit)
Adjusting Entry
Ex.
Utilities Expense
Utilities Payable
adjusting Entry

SSS, PhilHealth and Pagibig Contribution Employer's Share

SSS, PhilHealth and Pagibig Payable Employer's Share
adjusting Entry

* Depreciation of Long-lived Assets

Depreciation Expense - Equipment
Accumulated Depreciation - Equipment
Adjusting Entry

Annual Depreciation Formula: Asset Cost x Rate

Monthly Depreciation Formula: (Asset Cost x Rate)/12

* Dividends Declaration
Retained Earnings (debit)
Dividends Payable (credit)
Adjusting Entry

Dividend declared is that portion of profits earned by the company that the company’s board of
directors decides to pay off as dividends to the shareholders of such company in return to the
investment done by the shareholders through the purchase of company’s securities and such
declaration of dividend creates a liability in the books of the concerned company.

Closing Journal Entries are also recorded at the General Journal after the preparation of financial reports
Step 1 Closing of Sales and sales related account to income summary

Sales Total Sales

Merchandise Inventory Ending Inventory
Purchase Returns and Allowances Total PRA
Purchase Discount Total PD
Sales Returns and Allowances Total SRA
Sales Discount Total Sales Discount
Purchases Total Purchases
Merchandise Inventory Beginning Inventory
Rent Expense Expense amount
Salaries Expense Expense amount
other expenses Expense amount
Income Summary Total Debit - Total Credit
Closing Entry
 Step 3 Close income summary account to Retained Earnings (Corporation)

Income Summary Income Summary (credit) - Income Summary (debit)

Retained Earnings Income Summary (credit) - Income Summary (debit)
ClosingEntry

Adjusting and Closing Entries are also posted to the general ledger.

After posting of adjusting and closing entries, prepare the post closing trial balance
 Date Account Title and Explanation PR Debit Credit

1 May 31 SSS, PhilHealth and Pagibig Cont. 620 ₱ 4,180.00

1 SSS, PhilHealth and Pagibig Payable 240 ₱ 4,180.00
1 Adjusting Entry

Sales 410 560,000.00

1 Merchandise Inventory 130 120,000.00
1 Purchase Returns and Allowances 520 20,000.00
1 Purchase Discount 530 1,800.00
Income Summary 701,800.00
To close credited accounts to income summary
1
1 Income Summary 605,505.00
1 Merchandise Inventory 130 100,000.00
Sales Return and Allowances 420 20,000.00
Sales Discount 430 4,600.00
Purchases 510 400,000.00
Salaries Expense 610 48,000.00
Rent Expense 630 20,000.00
Supplies Expense 650 2,000.00
Utilities Expense 640 5,000.00
SSS, PhilHealth and Pagibig Cont. 620 4,180.00
Depreciation Expense - Store Equip. 670 1,000.00
Depreciation Expense - Office Equip. 680 725.00
To close debited accounts to income summay

Income Summary 330 96,295.00

Retained Earnings 320 96,295.00
To close income summary acccount

REMITTANCE OF OUTPUT VAT TO BIR

Output VAT 64,800.00
Cash 6,240.00
Input VAT 58,560.00
Remittance of VAT

mn in its specific account in

it was posted and ledger Pr

ustments are drafted at the

aid on the succeding month)

the company’s board of

pany in return to the
s securities and such
ompany.

aration of financial reports

- Income Summary (debit)
- Income Summary (debit)
 111 Cash
Date Description PR Debit Credit Balance
Oct. 1 Beginning Balance ₱ 203,316.00
31 Cash Receipt CRJ-1 ₱ 423,600.00 626,916.00
31 Cash Disbursement CDJ-1 ₱ 461,540.00 165,376.00

115 Merchandise Inventory

Date Description PR Debit Credit Balance
Oct. 1 Beginning Balance ₱ 100,000.00
31 Closing Entry GJ-2 ₱ 120,000.00 220,000.00
31 Closing Entry GJ-2 ₱ 100,000.00 120,000.00

150 Store Equipment

Date Description PR Debit Credit Balance
Oct. 1 Beginning Balance ₱ 120,000.00

160 Office Equipment

Date Description PR Debit Credit Balance
Oct. 1 Beginning Balance ₱ 81,000.00
31 Purchase ₱ 6,000.00 87,000.00

210 Accounts Payable

Date Description PR Debit Credit Balance
Oct. 1 Beginning Balance ₱ 30,000.00
31 Puchase on Account PJ-1 ₱ 414,400.00 444,400.00
31 Payment CDJ-1 ₱ 343,600.00 100,800.00
31 Returns Gj-1 22,400.00 78,400.00

230 Expanded Witholding Tax Payable

Date Description PR Debit Credit Balance
Oct. 1 Beginning Balance ₱ 1,000.00
 240 SSS, PH and Pagibig Contribution Payable
Date Description PR Debit Credit Balance
Oct. 1 Beginning Balance ₱ 6,700.00
31 Remittance CDJ-1 ₱ 4,180.00 2,520.00
31 Adjusting Entry GJ-2 ₱ 4,180.00 6,700.00

270 Cash Dividends Payable

Date Description PR Debit Credit Balance
Oct. 31 Adusting Entry CDJ-5 ₱ 30,000.00 ₱ 30,000.00

320 Retained Earnings

Date Description PR Debit Credit Balance
Oct. 1 Beginning Balance ₱ 183,950.00
31 Adjusting Entry GJ-1 ₱ 30,000.00 153,950.00
31 Closing Entry ₱ 96,295.00 250,245.00

410 Sales
Date Description PR Debit Credit Balance
Oct. 31 Sales on account SJ-1 ₱ 430,000.00 ₱ 430,000.00
31 Cash sales CRJ-1 130,000.00 560,000.00
31 Closing Entry GJ-2 ₱ 560,000.00 -

430 Sales Discount

Date Description PR Debit Credit Balance
Oct. 31 Collection CRJ-1 ₱ 4,600.00 ₱ 4,600.00
31 Closing Entry GJ-2 ₱ 4,600.00 -

520 Purchase Returns and Allowance

Date Description PR Debit Credit Balance
Oct. 31 returns GJ-1 ₱ 20,000.00 ₱ 20,000.00
31 Closing Entry GJ-2 ₱ 20,000.00 -
 540 Transportation In
Date Description PR Debit Credit Balance

620 SSS, PH and Pagibig Contribution

Date Description PR Debit Credit Balance
Oct. 31 Adjusting Entry GJ-2 ₱ 4,180.00 ₱ 4,180.00
31 Closing Entry GJ-2 ₱ 4,180.00 -

640 Utilities Expense

Date Description PR Debit Credit Balance
Oct. 31 Adjusting Entry GJ-1 ₱ 1,000.00 ₱ 1,000.00
31 Adjusting Entry GJ-2 4,000.00 5,000.00
31 Closing Entry Gj2 5,000.00 -

660 Transportation Expense

Date Description PR Debit Credit Balance

680 Depreciation Expense - Office Equipment

Date Description PR Debit Credit Balance
Oct. 31 Adjusting Entry GJ-1 ₱ 725.00 ₱ 725.00
31 Closing Entry GJ-2 ₱ 725.00 -

Accounts Receivable Subsidiary Ledger - Customer A

Date Description PR Debit Credit Balance
Oct. 3 7001 SJ-1 ₱ 168,000.00 ₱ 168,000.00
6 8001 GJ-1 ₱ 22,400.00 145,600.00
11 3002 CRJ-1 145,600.00 -
Accounts Receivable Subsidiary Ledger - Customer C
Date Description PR Debit Credit Balance
Oct. 10 7002 SJ-1 ₱ 112,000.00 ₱ 112,000.00
20 3003 CRJ-1 ₱ 112,000.00 -

Accounts Receivable Subsidiary Ledger - Customer E

Date Description PR Debit Credit Balance
Oct. 1 Beg. Balance ₱ 25,000.00
22 3005 ₱ 25,000.00 -

Accounts Payable Subsidiary Ledger - Supplier A

Date Description PR Debit Credit Balance
Oct. 1 2452 PJ-1 ₱ 134,400.00 ₱ 134,400.00
4 8562 GJ-1 ₱ 22,400.00 112,000.00
30 82011 112,000.00 -
-

Accounts Payable Subsidiary Ledger - Supplier C

Date Description PR Debit Credit Balance
Oct. 8 8152 ₱ 78,400.00 ₱ 78,400.00
 113 Accounts Receivable
Date Description PR Debit Credit
Oct. 1 Beginning Balance
31 Sales on Account SJ-1 ₱ 481,600.00
31 Collection CRJ-1 ₱ 282,600.00
31 Returns GJ-1 22,400.00

118 Input VAT

Date Description PR Debit Credit
Oct. 1 Beginning Balance
31 Purchase on account PJ-1 ₱ 44,400.00
31 Cash purchase CDJ-1 4,560.00
31 Returns GJ-1 ₱ 2,400.00

155 Accumulated Depreciation - Store Equipment

Date Description PR Debit Credit
Oct. 1 Beginning Balance
31 Adusting Entry GJ-1 ₱ 1,000.00

165 Accumulated Depreciation - Office Equipment

Date Description PR Debit Credit
Oct. 1 Beginning Balance
31 Adusting Entry GJ-1 ₱ 725.00

220 Withholding Tax Payable

Date Description PR Debit Credit
Oct. 1 Beginning Balance

250 Utilities Payable

Date Description PR Debit Credit
Oct. 1 Beginning Balance
31 Payment CDJ-1 ₱ 5,000.00
31 adjusting entry GJ-1 ₱ 1,000.00
31 adjusting entry GJ-1 4,000.00
 260 Output VAT
Date Description PR Debit Credit
Oct. 31 Sales on account SJ-1 ₱ 51,600.00
31 Cash Sales CRJ-1 15,600.00
31 Returns GJ-1 ₱ 2,400.00

310 Ordinary Share Capital P100 par

Date Description PR Debit Credit
Oct. 1 Beginning Balance

330 Income Summary

Date Description PR Debit Credit
Oct. 31 Closing Entry GJ-2 ₱ 701,800.00
31 Closing Entry GJ-2 ₱ 605,505.00
31 Closing Entry GJ-2 96,295.00

420 Sales Returns and Allowances

Date Description PR Debit Credit
Oct. 31 Returns GJ-1 ₱ 20,000.00
31 Closing Entry GJ-2 ₱ 20,000.00

510 Purchases
Date Description PR Debit Credit
Oct. 31 Purchase on Account PJ-1 ₱ 370,000.00
31 Cash Purchase CDJ-1 30,000.00
31 Closing Entry GJ-2 ₱ 400,000.00

530 Purchase Discount

Date Description PR Debit Credit
Oct. 31 Purchases CDJ-1 ₱ 1,800.00
31 Closing Entry GJ-2 1,800.00
 610 Salaries Expense
Date Description PR Debit Credit
Oct. 31 Payroll CDJ-1 ₱ 48,000.00
31 Closing Entry GJ-2 ₱ 48,000.00

630 Rent Expense

Date Description PR Debit Credit
Oct. 31 Payment of rent CDJ-1 ₱ 20,000.00
31 Closing Entry GJ-2 ₱ 20,000.00

650 Supplies Expense

Date Description PR Debit Credit
Oct. 31 Purchase of supplies CDJ-1 ₱ 2,000.00
31 Closing Entry GJ-2 ₱ 2,000.00

670 Depreciation Expense - Store Equipment

Date Description PR Debit Credit
Oct. 31 Adjusting Entry GJ-1 ₱ 1,000.00
31 Closing Entry GJ-2 ₱ 1,000.00

690 Miscellaneous Expense

Date Description PR Debit Credit
Oct. 31

Accounts Receivable Subsidiary Ledger - Customer B

Date Description PR Debit Credit
Accounts Receivable Subsidiary Ledger - Customer D
Date Description PR Debit Credit
Oct. 15 7003 ₱ 201,600.00

Accounts Payable Subsidiary Ledger - Supplier B

Date Description PR Debit Credit
Oct. 5 6138 ₱ 201,600.00
20 82010 CDJ-1 ₱ 201,600.00

Accounts Payable Subsidiary Ledger - Supplier D

Date Description PR Debit Credit
Oct. 1 Beg. Balance
16 82009 30,000.00
 Balance
₱ 25,000.00
506,600.00
224,000.00
201,600.00

Balance
₱ 12,000.00
56,400.00
60,960.00
58,560.00

Balance
₱ 8,000.00
9,000.00

Balance
₱ 5,400.00
6,125.00

Balance Debit Credit

₱ 1,266.00 1100
1100 0
1300 1300

Balance
₱ 5,000.00
-
1,000.00
5,000.00
 Balance
₱ 51,600.00
67,200.00
64,800.00

Balance
₱ 300,000.00

Balance
₱ 701,800.00
96,295.00
-

Balance
₱ 20,000.00
-
-

Balance
₱ 370,000.00
400,000.00
-

Balance
₱ 1,800.00
-
 Balance
₱ 48,000.00
-

Balance
₱ 20,000.00
-

Balance
₱ 2,000.00
-

Balance
₱ 1,000.00
-

Balance

Balance
₱ -
 Balance
₱ 201,600.00

Balance
₱ 201,600.00
-

Balance
₱ 30,000.00
-
 Company B
Worksheet
for the Month Ended October 31,2020
Account Trial Balance Adjustment Income Statement Balance Sheet
No. Account Title Debit Credit Debit Credit Debit Credit Debit Credit
Cash ₱ 165,376.00 165,376.00
Accounts Receivable 201,600.00 201,600.00
Merchandise Inventory 100,000.00 ₱ 100,000.00 ₱ 120,000.00 120,000.00
Input VAT 58,560.00 58,560.00
Store Equipment 120,000.00 120,000.00
Accumulated Depreciation - Store Equipment ₱ 8,000.00 ₱ 1,000.00 9,000.00
Office Equipment 87,000.00 87,000.00
Accumulated Depreciation - Office Equipment 5,400.00 725.00 6,125.00
Accounts Payable 78,400.00 78,400.00
Withholding Tax Payable 1,266.00 1,266.00
Expanded Withholding Tax Payable 1,000.00 1,000.00
SSS, PH and Pagibig Contribution Payable 2,520.00 4,180.00 6,700.00
Output VAT 64,800.00 64,800.00
Ordinary Share Capital P100 par 300,000.00 300,000.00
Retained Earnings 183,950.00 ₱ 30,000.00 153,950.00
Sales 560,000.00 560,000.00
Sales Returns and Allowances 20,000.00 20,000.00
Sales Discount 4,600.00 4,600.00
Purchases 400,000.00 400,000.00
Purchase Returns and Allowance 20,000.00 20,000.00
Purchase Discount 1,800.00 1,800.00
Salaries Expense 48,000.00 48,000.00
Rent Expense 20,000.00 20,000.00
Supplies Expense 2,000.00 2,000.00
Total ₱ 1,227,136.00 ₱ 1,227,136.00
Utilities Expense - 5,000.00 5,000.00
Utilities Payable 5,000.00 5,000.00
SSS, PH and Pagibig Contribution 4,180.00 4,180.00
Cash Dividends Payable 30,000.00 30,000.00
Depreciation Expense - Store Equipment 1,000.00 1,000.00
Depreciation Expense - Office Equipment 725.00 725.00
Totals ₱ 40,905.00 ₱ 40,905.00 ₱ 605,505.00 ₱ 701,800.00 ₱ 752,536.00 ₱ 656,241.00
Net Income 96,295.00 96,295.00
₱ 701,800.00 ₱ 701,800.00 ₱ 752,536.00 ₱ 752,536.00

Adjusting Entry - General Journal (Date - end of the period)

Supplies Expense 504.00
Supplies 504.00
Adjusting Entry

Depreciation Expense - Equipment 88.00

Accumulated Depr. - Equipment 88.00
Adjusting Entry

Closing Journal Entry - General Journal (Date - end of the period

Sales 45,760.00
Merchandise Inventory - ending 6,004.00
Income Summary 50,948.00
Sales Returns and Allowances 616.00
Sales Discount 200.00
Closing Entry

Income Summary 40,476.00

Purchase Returns and Allowances 352.00
Purchase Discount 318.00
Purchases 29,304.00
Merchandise Inventory - Beg. 120.00
Rent Expense 3,000.00
Salaries Expense 5,000.00
Utitlites Expense 1,200.00
Advertisement Expense 1,500.00
Freight In 250.00
Freight Out 300.00
Supplies Expense 504.00
Depreciation Expense- equipment 88.00
Closing entry
Single Proprietorship Partnership Corporation
Income Summary 10,472.00 Income Summary 10,472.00 Income Summary 10,472.00
Faith Angela Capital 10,472.00 Partner A 5,236.00 Retained Earnings 10,472.00
Closing entry Partner B 5,236.00
Closing Entry
Faith Angela, Capital 5,000.00 Retained Earnings
Faith Angela, withdrawal 5,000.00 Partner A, Capital Dividends
Closing entry Partner A, withdrawal

Partner B, Capital
Partner B, Withdrawal
 COMPANY B
STATEMENT OF COMPREHENSIVE INCOME
For the month ended October 31,2021

Sales ₱ 560,000.00
Sales Returns and Allowances (20,000.00)
Sales Discount (4,600.00)
Net Sales ₱ 535,400.00
Purchases ₱ 400,000.00
Purchase Returns and Allowances (20,000.00)
Purchase Discount (1,800.00)
Net Purchase ₱ 378,200.00
Merchandise Inventory – Beg 100,000.00
Merchandise Inventory – End (120,000.00)
Cost of Goods Sold 358,200.00
Gross Profit

Salaries Expense ₱ 48,000.00

SSS, PhilHealth and Pagibig Contribution 4,180.00
Rent Expense 20,000.00
Utilities Expense 5,000.00
Supplies Expense 2,000.00
Transportation Expense
Depreciation Expense – Store Equipment 1,000.00
Depreciation Expense – Office Equipmnet 725.00
Miscellaneous Expense
Total Expenses
NET INCOME (LOSS)

COMPANY B
STATEMENT OF CASH FLOWS
For the month ended October 31,2021

Cash-In Activities
Collection from Cash Customers ₱ 145,600.00
Collection from Receivables 278,000.00

Total Cash-In Activities ₱ 423,600.00

Cash-Out Activities
Purchase of Supplies 2,240.00
Purchase of Equipment 6,720.00
Payment of Rent 19,000.00
Payment of Taxes 2,266.00
Payment to SSS, PhilHealth and Pagibig 6,700.00
Payment of Utilities Payables 5,000.00
Payment of Salaries Expense 44,214.00
 Payment of Payables 341,800.00
Purchase of merchandise 33,600.00
Total Cash-Out Activities 461,540.00
Net Increase (Decrease) in Cash ₱ (37,940.00)
Beginning Cash Balance 203,316.00
Cash Balance -10/31/2021 ₱ 165,376.00

COMPANY B
POST-CLOSING TRIAL BALANCE
October 31,2021

Cash 165,376.00
Accounts Receivable 201,600.00
Merchandise Inventory 120,000.00
Input VAT 58,560.00
Store Equipment 120,000.00
Accumulated Depreciation - Store Equipment 9,000.00
Office Equipment 87,000.00
Accumulated Depreciation - Office Equipment 6,125.00
Accounts Payable 78,400.00
Withholding Tax Payable 1,266.00
Expanded Withholding Tax Payable 1,000.00
SSS, PH and Pagibig Contribution Payable 6,700.00
Output VAT 64,800.00
Ordinary Share Capital P100 par 300,000.00
Retained Earnings 250,245.00
Utilities Payable 5,000.00
Cash Dividends Payable 30,000.00
752,536.00 752,536.00
 COMPANY B
STATEMENT OF FINANCIAL POSITION
For the month ended October 31,2021

Assets
Current Assets
Cash
Accounts Receivable
Merchandise Inventory
Total Current Assets
Store Equipment ₱ 120,000.00
Accumulated Depreciation (9,000.00)
Office Equipment 87,000.00
Accumulated Depreciation (6,125.00)
Total Non-current Assets
₱ 177,200.00 Total Current and Non-current Assets

Liabilities
Current Liabilities
Accounts Payable
Withholding Tax Payable
Expanded Withholding Tax Payable
SSS, PhilHealth and Pagibig Contribution Pay.
Utilities Payable
Output VAT
Cash Dividends Payable
80,905.00 Total Current Liability
₱ 96,295.00
Stockholders' Equity
Ordinary Share Capital P100 par
Retained Earnings
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity
ANY B
ANCIAL POSITION
d October 31,2021

ets

₱ 165,376.00
201,600.00
120,000.00
₱ 486,976.00

₱ 111,000.00

80,875.00
191,875.00
₱ 678,851.00

₱ 78,400.00
1,266.00
1,000.00
6,700.00
5,000.00
6,240.00 OV-IV
30,000.00
₱ 128,606.00

₱ 300,000.00
250,245.00
550,245.00
₱ 678,851.00