PHINMA Cagayan de Oro College

College of Management and Accountancy

NC III Bookkeeping Material

TRANSACTIONS
April 1 Daddy Lowie Pops decided to established his own DLP Hardware Store by investing cash of P150,000.
He purchase on account merchandise worth P15,000, 2/10,n/30.
2 He bought an equipment worth P50,000.
Billed sales of P14,300, 2/10, n/30. Cost of merchandise, P7,150
5 Returned merchandise to supplier bought last April 1 worth P250.
7 Paid transportation fee upon delivery of goods to a customer, P150.
9 Paid the April 1 purchases.
11 Bought supplies worth P850.
Received cash payment from April 2 sales.
12 Paid merchandise worth P5,700.
15 Three employees are paid, P2,500 for each employee.
16 Returned damaged purchases, P350. Initially paid cash.
Withdrew P508 for his date with Ate Girlie.
17 Bought on account P2,700 worth of merchandise.
18 Paid the transportation of goods from the supplier, P220.
21 Released promissory note for a loan of P100,000 from Lady Bank of the Philippines.
24 Received cash from sales of P6,300. Cost of merchandise, P3,150.
25 Received purchases from a credit supplier worth P1,100.
29 Customer who paid in cash returned goods worth P120.
30 Sales on account worth P1,500. Cost of merchandise, P750.
Paid various expenses:
Salaries – P7,500
Utilities – P10,000
Rent – P1,000
Advertising - P500
Hired additional two beautiful employees with a monthly salary of P6,000.

CHART OF ACCOUNTS
No. Accounts No. Accounts
101 Cash 413 Sales Discounts
112 Accounts Receivable 500 Cost of Sales
120 Merchandise Inventory 510 Purchases
126 Supplies 512 Purchase Returns and Allowances
130 Equipment 513 Purchase Discounts
201 Accounts Payable 516 Freight-In
202 Notes Payable 630 Salaries
301 DL. Pops, Capital 631 Advertising
302 DL. Pops, Drawing 635 Rent Expense
401 Sales 644 Freight-Out
412 Sales Returns and Allowances 645 Utilities Expense
PERPETUAL INVENTORY SYSTEM

JOURNALIZING

Date Particulars PR DR CR

April 1 Cash 101 150,000

DL. Pops, Capital 301 150,000

To record initial investment of DL. Pops

1 Merchandise Inventory 120 15,000

Accounts Payable 201 15,000

To record purchases on account. 2/10, n/30

2 Equipment 130 50,000

Cash 101 50,000

To record purchased of computer equipment.

2 Accounts Receivable 112 14,300

Sales 401 14,300

Cost of Sales 500 7,150

Merchandise Inventory 120 7,150

To record sales on account.

5 Accounts Payable 201 250

Merchandise Inventory 120 250

To record purchase return.

7 Freight-Out 644 150

Cash 101 150

To record freight on sales.

9 Accounts Payable 201 14,750

Cash 101 14,455

Merchandise Inventory 120 295

To record payment on account with 2% discount.

11 Supplies 126 850

Cash 101 850

To record purchase of supplies on cash.

11 Cash 101 14,014

 Sales Discounts 413 286

Accounts Receivable 14,300

To record collections from sales on account.

12 Merchandise Inventory 120 5,700

Cash 101 5,700

To record purchases on cash basis.

15 Salaries 630 7,500

Cash 101 7,500

To record payment of salaries.

16 Cash 101 350

Merchandise Inventory 120 350

To record purchase returns and allowances.

16 DL. Pops, Drawing 302 508

Cash 101 508

To record personal withdrawals.

17 Merchandise Inventory 120 2,700

Accounts Payable 201 2,700

To record purchases on account.

18 Merchandise Inventory 120 220

Cash 101 220

To record freight on purchases.

21 Cash 101 100,000

Notes Payable 202 100,000

To record borrowed money from LBP.

24 Cash 101 6,300

Sales 401 6,300

Cost of Sales 500 3,150

Merchandise Inventory 120 3,150

To record sales on cash.

 25 Merchandise Inventory 120 1,100

Accounts Payable 201 1,100

To record purchases on account.

29 Sales Returns and Allowances 412 120

Cash 101 120

To record refund to cash customers.

30 Accounts Receivables 112 1,500

Sales 401 1,500

Cost of Sales 500 750

Merchandise Inventory 120 750

To record sales on account.

30 Salaries 630 7,500

Utilities Expense 645 10,000

Rent Expense 635 1,000

Advertising 631 500

Cash 101 19,000

To record various expenses.

POSTING TO THE LEDGER

Account Title: CASH

Account #: 101

AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

April 1 DL. Pops, Capital GJ-1 150,000 150,000

2 Equipment GJ-1 50,000 100,000

7 Freight-Out GJ-1 150 99,850

9 Accounts Payable GJ-1 14,455 85,395

11 Supplies GJ-1 850 84,545

11 Accounts Receivables GJ-1 14,014 98,559

12 Merchandise Inventory GJ-1 5,700 92,859

15 Salaries GJ-1 7,500 85,359

16 Merchandise Inventory GJ-1 350 85,709

16 DL. Pops, Drawing GJ-1 508 85,201

18 Merchandise Inventory GJ-1 220 84,981

21 Notes Payable GJ-2 100,000 184,981

 24 Sales GJ-2 6,300 191,281

29 Sales Returns and Allowances GJ-2 120 191,161

30 Operating Expenses GJ-2 19,000 172,161

Account Title: ACCOUNTS RECEIVABLES

Account #: 112

AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

April 2 Sales GJ-1 14,300 14,300

11 Cash, Sales Discounts GJ-1 14,300 0

30 Sales GJ-2 1,500 1,500

Account Title: MERCHANDISE INVENTORY

Account #: 120

AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

April 1 Accounts Payable GJ-1 15,000 15,000

2 Cost of Sales GJ-1 7,150 7,850

5 Accounts Payable GJ-1 250 7,600

9 Accounts Payable GJ-1 295 7,305

12 Cash GJ-1 5,700 13,005

16 Cash GJ-1 350 12,655

17 Accounts Payable GJ-1 2,700 15,355

18 Cash GJ-1 220 15,575

24 Cost of Sales GJ-2 3,150 12,425

25 Accounts Payable GJ-2 1,100 13,525

30 Cost of Sales GJ-2 750 12,775

Account Title: MERCHANDISE INVENTORY

Account #: 120

AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

April 1 Accounts Payable GJ-1 5,000 5,000

2 Cost of Sales GJ-1 7,150 2,150

5 Accounts Payable GJ-1 250 2,400

9 Accounts Payable GJ-1 95 2,495

12 Cash GJ-1 2,700 205

16 Cash GJ-1 350 145

17 Accounts Payable GJ-1 1,700 1,555

18 Cash GJ-1 220 1775

24 Cost of Sales GJ-2 3,150 1375

25 Accounts Payable GJ-2 1,100 275

30 Cost of Sales GJ-2 750 1025

Account Title: SUPPLIES

Account #: 126

AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

April 11 Cash GJ-1 850 850

Account Title: EQUIPMENT

Account #: 130
 AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

April 2 Cash GJ-1 50,000 50,000

Account Title: ACCOUNTS PAYABLE

Account #: 201

AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

April 1 Merchandise Inventory GJ-1 15,000 15,000

5 Merchandise Inventory GJ-1 250 14,750

9 Cash, Merchandise Inventory GJ-1 14,750 0

17 Merchandise Inventory GJ-1 2,700 2,700

25 Merchandise Inventory GJ-2 1,100 3,800

Account Title: NOTES PAYABLE

Account #: 202

AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

April 21 Cash GJ-2 100,000 100,000

Account Title: DL. POPS, CAPITAL

Account #: 301

AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

April 1 Cash GJ-1 150,000 150,000

30 Income Summary GJ-4 16,006 133,994

30 DL. Pops, Drawing GJ-4 508 133,486

Account Title: DL. POPS, DRAWING

Account #: 302

AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

April 16 Cash GJ-1 508 508

30 DL. Pops, Capital GJ-4 508 0

Account Title: SALES

Account #: 401

AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

April 2 Accounts Receivables GJ-1 14,300 14,300

 24 Cash GJ-2 6,300 20,600

30 Accounts Receivables GJ-2 1,500 22,100

30 Income Summary GJ-4 22,100 0

Account Title: SALES RETURNS AND ALLOWANCES

Account #: 412

AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

April 29 Cash GJ-2 120 120

30 Income Summary GJ-4 120 0

Account Title: SALES DISCOUNTS

Account #: 412

AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

April 11 Accounts Receivables GJ-1 286 286

30 Income Summary GJ-4 286 0

Account Title: COST OF SALES

Account #: 500

AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

April 2 Merchandise Inventory GJ-1 7,150 7,150

24 Merchandise Inventory GJ-2 3,150 10,300

30 Merchandise Inventory GJ-2 750 11,050

30 Income Summary GJ-4 11,050 0

Account Title: SALARIES

Account #: 630

AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

April 15 Cash GJ-1 7,500 7,500

30 Cash GJ-2 7,500 15,000

30 Income Summary GJ-4 15,000 0

Account Title: ADVERTISING

Account #: 631

AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

April 30 Cash GJ-1 500 500

30 Income Summary GJ-4 500 0

Account Title: Rent Expense

Account #: 635

AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

April 30 Cash GJ-1 1,000 1,000

30 Income Summary GJ-4 1,000 0

Account Title: Freight-Out

Account #: 635

AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

April 7 Cash GJ-1 150 150

30 Income Summary GJ-4 150 0

Account Title: UTILITIES EXPENSE

Account #: 645

AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

April 30 Cash GJ-1 10,000 10,000

30 Income Summary GJ-4 10,000 0

 DLP HARDWARE STORE

TRIAL BALANCE

April 30, 2017

Acct. # Acct. Title Debit Credit

101 Cash 172,161

112 Accounts Receivables 1,500

120 Merchandise Inventory 12,775

126 Supplies 850

130 Equipment 50,000

201 Accounts Payable 3,800

202 Notes Payable 100,000

301 DL. Pops, Capital 150,000

302 DL. Pops, Drawing 508

401 Sales 22,100

412 Sales Returns and Allowances 120

413 Sales Discounts 286

500 Cost of Sales 11,050

630 Salaries 15,000

631 Advertising 500

635 Rent Expense 1,000

644 Freight-Out 150

645 Utilities Expense 10,000

TOTAL 275,900 275,900

DLP HARDWARE STORE

STATEMENT OF PERFORMANCE

For the Month Ended April 30, 2017

Sales 22,100

Less: Sales Returns and Allowances 120

Less: Sales Discounts 286 406

Net Sales 21,694

Less: Cost of Sales 11,050

Gross Sales 10,644

Less: Operating Expenses

Salaries 15,000

Advertising 500

Rent Expense 1,000

Freight-Out 150

Utilities Expense 10,000

 Total Operating Expense 26,650

NET LOSS (16,006)

DLP HARDWARE STORE

STATEMENT OF CHANGES IN OWNER’S EQUITY

For the Month Ended April 30, 2017

DL. Pops, Capital 150,000

Less: DL. Pops, Drawing 508

Total 149,492

Less: Net Loss 16,006

DL. Pops, Capital-End 133,486

 DLP HARDWARE STORE

STATEMENT OF FINANCIAL POSITION

As of the Month Ended April 30, 2017

ASSET

Current Asset

Cash 172,161

Accounts Receivables 1,500

Inventory 12,775

Prepaid Expenses 850

Total Current Asset 187,286

Non-Current Asset

Equipment 50,000

TOTAL ASSET 237,286

LIABILITIES AND OWNER’S EQUITY

Liabilities

Accounts Payable 3,800

Notes Payable 100,000

Total Liabilities 103,800

Owner’s Equity

DL. Pops, Capital-End 133,486

TOTAL LIABILITIES AND OE 237,286

DLP HARDWARE STORE

STATEMENT OF CASH FLOW

For the Month Ended April 30, 2017

Cash Flow from the Operating Activities

Cash Sales from Merchandising 6,300

Collection on Customers Account 14,014

Refund from Merchandise Purchased 350

Payment on Transportation (370)

Payment on Accounts (14,455)

Payment on Supplies (850)

Payment on Purchases (5,700)

Payment on Operating Expenses (26,500)

Refund on Merchandise Sold (120)

NET CASH FROM OPERATING ACTIVITIES (27,331)

Cash Flow from Investing Activities

 Purchase of Computer Equipment (50,000)

NET CASH FROM INVESTING ACTIVITIES (50,000)

Cash Flow from Financing Activities

Cash Investment by the Owner 150,000

Cash Borrowed by the Owner 100,000

Cash Withdrawals by the Owner (508)

NET CASH FROM FINANCING ACTIVITIES 249,492

NET INCREASE IN CASH 172,161

Cash Balance at the Beginning of the Period 0

Cash Balance at the End of the Period 172,161

JOURNALIZING: CLOSING ENTRIES

Date Particulars PR DR CR

April 30 Sales 401 22,100

Sales Returns and Allowances 412 120

Sales Discounts 413 286

Income Summary 900 21,694

To closed sales accounts on income summary account.

Income Summary 900 11,050

Cost of Sales 510 11,050

To close expense accounts to income summary account.

Income Summary 900 26,650

Salaries 630 15,000

Advertising 631 500

Rent Expense 635 1,000

Freight-Out 644 150

Utilities Expense 645 10,000

To close expense accounts to income summary account.

DL. Pops, Capital 301 16,006

Income Summary 900 16,006

To close income summary to capital account.

DL. Pops, Capital 301 508

DL. Pops, Drawing 302 508

To close drawing account to capital account.

DLP HARDWARE STORE

 POST-CLOSING TRIAL BALANCE

April 30, 2017

Acct. # Acct. Title Debit Credit

101 Cash 172,161

112 Accounts Receivables 1,500

120 Merchandise Inventory 12,775

126 Supplies 850

130 Equipment 50,000

201 Accounts Payable 3,800

202 Notes Payable 100,000

301 DL. Pops, Capital 237,286

TOTAL 237,286 237,286

 1 2 3

Nasundan Buhangin ADSCO Mang Inasal Initial Adjusting

DATE Dec. 31, Dec. 31 Dec. 31 Dec. 31 Nov. 5 Dec. 31

DEBIT Interest Exp. Accrued Accrued Rent Rent Supplies Supplies

Interest Receivable Expense Expense
Receivable

CREDIT Accrued Interest Rent Income Accrued Rent Cash Supplies

Interest Income Expense
Payable

AMOUNT 1,200 1,200 15,000 15,000 15,000 11,500