CHAPTER 7
THE USE OF SPECIAL JOURNALS
SPECIAL JOURNALS
There are two kinds of journal. These are General Journal and Special Journals which are
called books of original entries.
The emphasis of general journal is being tackled in the previous section. As volume of business
transactions increases, the use of special journals is highly recommended. The use of special journals
eliminates hassle the bookkeeper is experiencing during the posting process because it needs only a
short general ledger particularly the cash accounts.
The following books of original entries are utilized as addition to general journal when special
journals are adopted in recording business transactions.
a.
b.
c.
d.
Sales Book or Sales Journal
Purchases Book or Purchases Journal
Cash Receipts Book or Cash Receipts Journal
Cash Disbursements Book or Cash Disbursement Journal
Each book or journal is a book of original entry but is used in recording only one kind of
business transaction. Thus, they are called special journal.
WHAT ARE THE TRANSACTIONS TO BE RECORDED IN EACH JOURNAL?
Sales Journal. Only transactions involving sale of merchandise on account or on credit are recorded in
this book. The proforma journal entry is as follows:
Accounts Receivable
Sales
Output Tax
xxx
xxx
xxx
Purchases Journal. Only transactions involving purchase of merchandise on account or on credit are
recorded in this book. The proforma journal entry is as follows:
Purchases
Input Tax
Accounts Payable
xxx
xxx
xxx
Cash Receipts Journal. All transactions involving receipts of cash are recorded in this book. The
proforma journal entry is as follows:
Cash
Various Credits (depending on the source)
xxx
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
xxx
Document No.1
Revision # 01
Issued by:
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Page 150 of 199
Cash Disbursements Journal. All transactions involving cash payments are recorded in this book.
The proforma journal entry is as follows:
Various debits (depending on what is being paid)
Cash
xxx
xxx
General Journal. Even special journals are used, a general journal will still be used but is limited to
recording of transactions which cannot be recorded in the above-mentioned books. Examples of
transactions that are recorded in the general journal are as follows:
1.
2.
3.
4.
5.
Investment of the owner not involving cash
Returns of merchandise to supplier previously bought on account
Returns of merchandise by a customer that were sold on account
Adjusting and correcting journal entries
Closing and reversing journal entries
It must be noted, that the rules of debit and credit are still being observed in the recording of
transactions in these special journals.
Merchandising business is a little bit complicated. While we identify, analyze and measure
transactions, we also have to identify the type special journal to use in recording the transaction. The
recording in the special journals depends upon the source documents supporting the transactions.
Invoice. An invoice is issued by the seller particularly when the transaction is on account or on
credit. This document will then be used by the business as a supporting document to
record Purchases. Conversely, the same document is used by the supplier to record its
Sales. Remember, in merchandising business a company can be a buyer and a seller at
the same time. Some companies are using Charge Sales Invoice for a sale made on
account and Cash Sales Invoice for a sale made on a cash basis. An official receipt is
then issued to back up cash sales.
Official Receipt. An official receipt is issued by the seller when it made collections from a
previously sales on account, and when it made a cash sale.
Check Voucher. A check voucher is issued by the company prior to the issuance of check for a
particular payment. This is practice by the company that maintains a current account for
its business operations.
Purchase Order. This is a document used when the company is placing an order with the
supplier.
Delivery Receipt. This is a document that usually accompanies with the invoice as a proof that
the goods have been delivered and acknowledged by the buyer.
Receiving Report. This is a document used by the company for internal control purpose. The
goods are physically checked against what has been ordered and indicated in the invoice
and delivery receipt issued by the seller(supplier).
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
Document No.1
Revision # 01
Issued by:
Lala NHS
Page 151 of 199
It must be noted that there is no standard format of the above-mentioned business documents. It
depends upon the company’s choice on how these documents appeared.
To illustrate:
R&J Commercial Hub started its operations sometimes in 2022. The Company makes adjusting
entries and prepares its financial reports every end of the month. Its chart of accounts and the postclosing trail balance ending November 30, 2023 is given on the next page as your guide in recording its
transactions.
R&J Commercial Hub
Chart of Accounts
100
101
102
103
104
105
106
107
115
120
150
121
151
ASSETS
Cash in Bank
Petty Cah Fund
Accounts Receivable
Allowance for Bad Debts
Merchandise Inventory
Office Supplies
Prepaid Rent
Input Tax
Furniture and Fixtures
Accumulated Depreciation-F&F
Office Equipment
Accumulated Depreciation - OE
200
201
202
203
204
205
206
207
LIABILITIES
Accounts Payable
Withholding tax Payable
SSS Premium Payable
PhilHealth Premium Payable
Pag-ibig Premium Payable
VAT Payable
Output Pax
300
301
302
305
OWNER’S EQUITY
Jess, Capital
Jess, Drawing
Income and Expense Summary
400
REVENUE
401 Sales
410 Sales Returns & Allowances
411 Sales Discounts
500
501
502
505
506
510
511
512
513
514
515
516
517
518
521
522
523
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
COST and EXPENSES
Purchases
Freight In
Purchases Returns & Allowances
Purchases Discounts
Bad Debts Expense
Salaries Expense
Taxes and Licenses
Utilities Expense
Supplies Expense
Freight Out
Rent Expense
Depreciation Expense-F&F
Depreciation Expense-OE
SSS Contribution
PhilHealth Contribution
Pag-ibig Contribution
Document No.1
Revision # 01
Issued by:
Lala NHS
Page 152 of 199
R&J Commercial Hub
Post-Closing Trial Balance
November 30, 2023
101
102
103
104
105
106
107
120
150
121
151
201
202
203
204
205
206
301
Account Title
Cash in Bank
Petty Cah Fund
Accounts Receivable
Allowance for Bad Debts
Merchandise Inventory
Office Supplies
Prepaid Rent
Furniture and Fixtures
Accumulated Depreciation – Furt. & Fixt
Store Equipment
Accumulated Depreciation – office Equipment
Accounts Payable
Withholding Tax Payable
SSS Premium Payable
PhilHealth Premium Payable
Pag-ibig Premium Payable
VAT Payable
Jess, Capital
TOTAL
Debit
321,500
1,500
75,000
Credit
6,000
270,000
16,500
30,000
345,000
67,500
240,000
12,000
166,500
3,750
4,863
1,350
1,500
31,500
1,004,037
1,299,000
1,299,000
The following transactions occurred on December of the same year with the corresponding
analysis. You are to record the following transactions using the special journals.
Dec. 4 - Issued Check No. 00401 to the local government in payment of the of the business permits and
licenses, ₱22,275. This is covered by Check Voucher No. 221.
Journal Entry:
Taxes and Licenses
Cash in bank
22,275
22,275
Dec. 6 – Bought merchandise on account from the following suppliers:
Suppliers
M Trading
T Trade
Charge
Invoice No.
3110
4012
Cost
180,000
27,000
207,000
VAT
21,600
3,240
24,840
Total
201,600
30,240
231,840
Term
10%-15 days
30 days
Journal Entry:
Purchases
Input Tax
Accounts Payable
207,000
24,840
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
231,840
Document No.1
Revision # 01
Issued by:
Lala NHS
Page 153 of 199
Dec. 8 – Sold merchandise on account to the following customers:
Customers
Freedom Co.
Liberty Corp.
Hope Inc.
Charge
Invoice No.
1641
1642
1643
Cost
120,000
52,500
60,000
232,500
VAT
14,400
6,300
7,200
27,900
Total
134,400
58,800
67,200
260,400
Term
5%-15 days
30 days
30 days
Journal Entry:
Accounts Receivable
Sales
Output Tax
260,400
232,500
27,900
Dec. 9 - Issued Check No. 00402 to Light Shipping in payment of the freight and handling as per bill of
lading in the amount of ₱5,175. This is covered by Check Voucher No. 222.
Journal Entry:
Freight In
Cash in bank
5,175
5,175
Dec. 10 - Issued Check No. 00403 to Social Security System in the amount of ₱4,863 for the remittance
of SSS Premium Contribution for the month of November. This is covered by Check Voucher
No. 223.
Journal Entry:
SSS Premium Payable
Cash in bank
4,863
4,863
Dec. 10 - Issued Check No. 00404 to Philippine Health Insurance Corp. in the amount of ₱1,350 for the
remittance of PhilHealth Premium Contribution for the month of November. This is covered by
Check Voucher No. 224.
Journal Entry:
PhilHealth Premium Payable
Cash in bank
1,350
1,350
Dec. 10 - Issued Check No. 00405 to Home Development Mutual Fund in the amount of ₱1,500 for the
remittance of Pag-ibig Premium Contribution for the month of November. This is covered by
Check Voucher No. 225.
Journal Entry:
Pag-ibig Premium Payable
Cash in bank
1,500
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
Document No.1
Revision # 01
Issued by:
Lala NHS
1,500
Page 154 of 199
Dec. 10 - Issued Check No. 00406 to Bureau of Internal Revenue in the amount of ₱3,750 for the
remittance of Tax withheld from employees’ salaries for the month of November. This is
covered by Check Voucher No. 226.
Journal Entry:
Withholding Tax Payable
Cash in bank
3,750
3,750
Dec. 11 - Issued credit memo No. 2 to Hope Inc. for returning the goods sold to them on December 8
amounting to ₱5,040. The cost of merchandise is ₱4,500.
Journal Entry:
Sales Returns and Allowances
Output Tax
Accounts Receivable
4,500
540
5,540
Dec. 14 – Received the credit memo No. 5 issued by T Trade to us for the returned goods related to our
purchases of December 6, ₱1,680. The cost of merchandise is ₱1,500.
Journal Entry:
Accounts Payable
Purchases Returns and Allowances
Input Tax
1,680
1,500
180
Dec. 16 – Sold Merchandise for cash to the following customers:
Customers
Kapatagan Mart
Baroy Trading
Official
Receipt No.
602
603
Cost
135,000
37,500
172,500
VAT
16,200
4,500
20,700
Total
151,200
42,000
193,200
Journal Entry:
Cash in Bank
Sales
Output Tax
193,200
172,500
20,700
Dec. 17 – Issued Check Nos. 00407 and 00408 in the amount of ₱112,000 and ₱56,000 respectively for
the merchandise purchased in cash. These are covered by Check Voucher Nos. 227 and 228.
Suppliers
Ozamiz Co.
Tangub Corp.
Official
Receipt No.
512
832
Cost
135,000
60,000
195,000
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
VAT
16,200
7,200
23,400
Total
151,200
67,200
218,400
Document No.1
Revision # 01
Issued by:
Lala NHS
Page 155 of 199
Journal Entry:
Purchases
Input Tax
Cash in Bank
195,000
23,400
218,400
Dec. 19 – Received a cash refund amounting to ₱3,360 from Ozamiz Co. for shipping merchandise not
conforming with the order. The cost of merchandise is ₱3,000. Issued Official Receipt No. 604.
Journal Entry:
Cash
Purchases Returns and Allowances
Input Tax
3,360
3,000
360
Dec. 20 - Issued Check No. 00409 to Jess Horan representing his drawing ₱15,000. This is covered by
Check Voucher No. 229.
Journal Entry:
Jess, Drawing
Cash in bank
1,500
1,500
Dec. 20 - Issued Check No. 00410 to M Trading in full payment of our December 6 account, less 10%
discount availed, ₱181,440. This is covered by Check Voucher No. 230.
Journal Entry:
Accounts Payable
Purchases Discounts ((201,600/112%) *10%)
Input Tax (18,000 * .12)
Cash in Bank ((201,600 – (18,000+2,160))
201,600
18,000
2,160
181,440
Dec. 21 - Issued Official Receipt No. 605 to Freedom Co. representing full collection from their
December 8 account, less 5% discount availed, ₱127,680.
Journal Entry:
Cash in Bank ((134,400 – (6,000+720))
Sales Discounts ((134,400/112%) *5%)
Output Tax (6,000 * .12)
Accounts Receivable
127,680
6,000
720
134,400
Dec. 24 - Issued Check No. 00411 to Bureau of Internal Revenue in the amount of ₱31,500 for the
remittance of Value-Added Tax in November. This is covered by Check Voucher No. 231.
Journal Entry:
VAT Payable
Cash in bank
31,500
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
31,500
Document No.1
Revision # 01
Issued by:
Lala NHS
Page 156 of 199
Dec. 27 - Issued Check No. 00412 Mariano Buco in the amount of ₱7,200 for the payment of the
following expenses (Utilities Expense). Light bills, ₱2,100; Water bills, ₱1,950; PLDT bills,
₱3,150. This is covered by Check Voucher No. 232.
Journal Entry:
Utilities Expense
Cash in bank
7,200
7,200
Dec. 27 - Issued Check No. 00413 (pay to cash) in the amount of ₱ for the payment of Salaries and
Wages. This is covered by Check Voucher No. 233.
Gross Salaries
Less: Deductions:
Withholding Tax
SSS Premium
PhilHealth Premium
Pag-ibig Premium
Net Paroll
₱48,000
3,750
500
450
500
5,200
₱42,800
Journal Entry:
Salaries Expense
Withholding Tax Payable
SSS Premium Payable
PhilHealth Premium Payable
Pag-ibig Premium Payable
Cash in bank
48,000
3,750
500
450
500
42,800
Dec. 30 – Employer’s share for SSS/EC, PhilHealth, and Pag-ibig during the month of December of the
same year are as follows:
SSS/EC
PhilHealth
Pag-ibig
Total
₱1,060
450
500
₱2,010
Journal Entry:
SSS Contribution
PhilHealth Contribution
Pag-ibig Contribution
SSS Premium Payable
PhilHealth Premium Payable
Pag-ibig Premium Payable
1,060
450
500
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
Document No.1
Revision # 01
Issued by:
Lala NHS
1,060
450
500
Page 157 of 199
Dec. 31 – Close the VAT Input and VAT Output accounts to VAT Payable in order to determine the
amount to be remitted to the Bureau of Internal Revenue.
Journal Entry:
Output Tax
Input Tax
VAT Payable
47,340
45,540
1,800
The closing of VAT Input and VAT Output accounts form part of the regular entries which
usually takes place at the end of each month.
JOURNALIZING (First Step)
The narrative transactions are recorded in the special journals and General Journal. Take note
that each amount column of the special journals is totaled while the General Journal is not.
Cash Disbursements Journal
Date
Official
Receipt
No.
Invoice
/Check
No.
Account
Debited
PR
SUNDRIES
Debit
Credit
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
Accounts
Purchases
Payable
Debit
Debit
Document No.1
Revision # 01
Issued by:
Lala NHS
VAT
Input
Debit
(Credit)
Purchases
Discounts
Credit
Cash in
Bank
Credit
Page 158 of 199
Cash Receipts Journal
Date
Official
Receipt
No.
Invoice
No.
Account
Credited
PR
SUNDRIES
Debit
Credit
Accounts
Receivable
Credit
Sales
Credit
VAT
Output
Credit
(Debit)
Sales
Discounts
Debit
Cash in
Bank
Debit
Purchases Journal
Date
Invoice
No.
Suppliers
PR
Purchases
Input VAT
Debit
Debit
Sales
Output VAT
Credit
Credit
Accounts
Payable
Credit
Sales Journal
Date
Invoice
No.
Customers
PR
Accounts
Receivable
Debit
General Journal
Page Number 1
Description
Ref
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
Current Journal Entries
DEBIT
CREDIT
Document No.1
Revision # 01
Issued by:
Lala NHS
Page 159 of 199
POSTING (Second Step)
Posting of entries to each of the Special Journal is usually done at the end of every month which
is on a per total basis while entries in the General Journal are posted to the General Ledger one by one
or entry after entry. At this point you need to be familiar with the normal balance of each account
because you need to place the running balance of the account in its normal balance.
GENERAL LEDGER
Date
Date
Date
Date
Date
Date
Account
101
Item
Post
Account
102
Item
Post
Account
102
Item
Post
Account
104
Item
Post
Account
105
Item
Post
Account
106
Item
Post
Cash in Bank
Debit
Credit
DR
Balance
CR
Petty Cash Fund
Debit
Credit
DR
Balance
CR
Accounts Receivable
Debit
Credit
DR
Balance
CR
Allowance for Bad Debts
Debit
Credit
DR
Balance
CR
Merchandise Inventory
Debit
Credit
DR
Office Supplies
Debit
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
Credit
Document No.1
Revision # 01
Issued by:
Lala NHS
DR
Balance
Balance
CR
CR
Page 160 of 199
Date
Account
107
2022
Item
Post
Date
Account
115
Item
Post
Account
120
Item
Post
Debit
Account
150
Accumulated Depreciation – Furt. & Fixt.
Item
Post
Debit
Account
121
Item
Post
Debit
Account
151
Accumulated Depreciation – Office Equipt.
Item
Post
Debit
Account
201
Item
Post
Account
202
Item
Post
Date
Date
Date
Date
Date
Date
Prepaid Rent
Debit
Credit
DR
Input Tax
Debit
Credit
DR
Balance
Balance
CR
CR
Furniture and Fixtures
Credit
Credit
DR
DR
Balance
Balance
CR
CR
Office Equipment
Credit
Credit
DR
DR
Balance
Balance
CR
CR
Accounts Payable
Debit
Credit
DR
Balance
CR
Withholding Tax Payable
Debit
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
Credit
Document No.1
Revision # 01
Issued by:
Lala NHS
DR
Balance
CR
Page 161 of 199
Date
Date
Date
Date
Date
Date
Date
Date
Account
203
Item
Post
Account
204
Item
Post
Account
205
Item
Post
Account
206
Item
Post
Account
207
Item
Post
Account
301
Item
Post
Account
302
Item
Post
Account
305
Item
Post
SSS Premium Payable
Debit
Credit
DR
Balance
CR
PhilHealth Premium Payable
Debit
Credit
DR
Balance
CR
Pag-ibig Premium Payable
Debit
Credit
DR
VAT Payable
Debit
Credit
DR
Output Tax
Debit
Credit
DR
Jess, Capital
Debit
Credit
DR
Jess, Drawing
Debit
Credit
DR
Balance
Balance
Balance
Balance
Balance
CR
CR
CR
CR
CR
Income & Expense Summary
Debit
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
Credit
Document No.1
Revision # 01
Issued by:
Lala NHS
DR
Balance
CR
Page 162 of 199
Date
Date
Date
Date
Date
Date
Date
Date
Account
401
Item
Post
Account
410
Item
Post
Account
411
Item
Post
Account
501
Item
Post
Account
502
Item
Post
Account
505
Item
Post
Account
506
Item
Post
Account
510
Item
Post
Sales
Debit
Credit
DR
Balance
CR
Sales Returns & Allowances
Debit
Credit
DR
Sales Discounts
Debit
Credit
DR
Purchases
Debit
Credit
DR
Freight In
Debit
Credit
DR
Balance
Balance
Balance
Balance
CR
CR
CR
CR
Purchases Returns & Allowances
Debit
Credit
DR
Balance
CR
Purchases Discounts
Debit
Credit
DR
Balance
CR
Bad Debts Expense
Debit
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
Credit
Document No.1
Revision # 01
Issued by:
Lala NHS
DR
Balance
CR
Page 163 of 199
Date
Date
Date
Date
Date
Date
Date
Date
Date
Account
511
Item
Post
Account
512
Item
Post
Salaries Expense
Debit
Credit
DR
Balance
CR
Taxes and Licenses
Debit
Credit
DR
Balance
CR
Account
513
Item
Post
Utilities Expense
Account
514
Item
Post
Account
515
Item
Post
Account
516
Item
Post
Debit
Account
517
Depreciation Expense – Furt. & Fist.
Item
Post
Debit
Account
518
Depreciation Expense – Office Equipt.
Item
Post
Debit
Account
521
Item
Post
Debit
Credit
DR
Balance
CR
Supplies Expense
Debit
Credit
DR
Freight Out
Debit
Credit
DR
Rent Expense
Credit
Credit
Credit
DR
DR
DR
Balance
Balance
Balance
Balance
Balance
CR
CR
CR
CR
CR
SSS Contribution
Debit
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
Credit
Document No.1
Revision # 01
Issued by:
Lala NHS
DR
Balance
CR
Page 164 of 199
Date
Date
Account
522
Item
Post
Account
523
Item
Post
PhilHealth Contribution
Debit
Credit
DR
Balance
CR
Pag-ibig Contribution
Debit
Credit
DR
Balance
CR
R&J Commercial Hub
Accounts Receivable
SUBSIDIARY LEDGER
Customer:
Address:
Hope Inc.
Baroy, Lanao del Norte
2023
Nov. 30
Ending balance
Customer:
Address:
Liberty Corp
Kapatagan, LDN
2023
Nov 30
Ending Balance
Customer:
Address:
Freedom Co.
Lanipao, Lala, LDN
2023
Nov 30
Ending Balance
Particular
Debit
37,500
Credit
Balance
37,500
Particular
Debit
15,000
Credit
Balance
15,000
Debit
22,500
Credit
Balance
22,500
Debit
Credit
114,000
Balance
114,000
Particular
R&J Commercial Hub
Accounts Payable
SUBSIDIARY LEDGER
Supplier:
Address:
T Trade
Talisay Cebu
2023
Nov. 30
Ending balance
Particular
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
Document No.1
Revision # 01
Issued by:
Lala NHS
Page 165 of 199
Supplier:
Address:
2023
Nov 30
M Trading
Ozamiz City
Particular
Debit
Ending Balance
Credit
52,500
Balance
52,500
TRIAL BALANCE (Third Step)
After posting has been done in the General Ledger, a summary of all accounts with the corresponding
balance is prepared. That is called a Trial Balance.
R&J Commercial Hub
Trial Balance
December 31, 2023
No.
101
102
103
104
105
106
107
120
150
121
151
201
202
203
204
205
206
301
302
401
410
411
501
502
505
506
511
512
513
515
521
522
523
Account Title
Debit
Credit
Cash in Bank
Petty Cash Fund
Accounts Receivable
Allowance for Bad Debts
Merchandise Inventory, Dec. 1
Office Supplies
Prepaid Rent
Furniture and Fixtures
Accumulated Depreciation – Furt. & Fixt
Office Equipment
Accumulated Depreciation – Office Equipt.
Accounts Payable
Withholding Tax Payable
SSS Premium Payable
PhilHealth Premium Payable
Pag-ibig Premium Payable
VAT Payable
Jess, Capital
Jess, Drawing
Sales
Sales Returns and Allowances
Sales Discounts
Purchases
Freight In
Purchases Returns and Allowances
Purchases Discounts
Salaries Expense
Taxes and Licenses
Utilities Expense
Freight Out
SSS Contribution
PhilHealth Contribution
Pag-ibig Contribution
TOTAL
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
Document No.1
Revision # 01
Issued by:
Lala NHS
Page 166 of 199
TASK 1
The following transactions of Salvacion Enterprises occurred during the month of May 2023. VAT of
12% is billed separately.
May 1 Kythe Salvacion invested ₱500,000 cash for the business operations.
2 Cash purchases of merchandise from MacMac Trading, ₱10,000, plus VAT of ₱1,200. Issued check
no. 202.
3 Paid office rental to Bruce Yu, ₱2,000 Issued check no. 203.
5 Purchased merchandise from Delfin Trading for ₱12,000 with VAT of ₱1,440. Terms: 2/10, n/30.
Invoice no. 32651.
6 Paid Mindanao Express for freight charges on May 5 purchases ₱200. Issued check no. 204.
7 Purchased store equipment from Elegant Furniture costing ₱12,500, exclusive of ₱1,500 VAT. Terms:
50% down payment, balance n/60. Issued check no. 205.
8 Acquired a brand-new computer set for the office use on account, ₱25,000 with ₱3,000 VAT.
9 Returned defective merchandise costing ₱2,000 to Delfin Trading.
10 Paid business permits and licenses ₱200. Issued check no. 206.
11 Purchased office supplies from Paperhaus costing ₱6,250 plus VAT of ₱750. Issued check no. 207.
12 Cash sales to May Ornopia, ₱10,000 plus ₱1.200 VAT. Official receipt no.1011.
13 Sold merchandise to Rogelio Reyes ₱15,000 with ₱1,800 VAT. Terms: 2/10, n/30. Charge sales
invoice no. 1645.
14 Cash purchases from Mesalocha Merchandising, ₱5,000, VAT ₱600. Issued check no. 208.
14 Received merchandise worth ₱5,000 returned by Rogelio Reyes
15 Paid salaries to employees, ₱5,000 less SSS premium of ₱100 PhilHealth contribution of ₱50. Pag-ibig
contribution of ₱70 and withholding taxes of ₱150. Issued check no. 209.
15 Paid in full the account with Delfin Trading (May 5). Issued check no. 210.
17 Paid in full the account with Elegant Furniture. Issued check no. 211.
18 Purchased merchandise from R&J Trading for ₱20,000 plus ₱2,400 VAT. Terms: 2/10, n/30. Invoice
no. 65381
20 Cash purchases from Amazing Company, ₱3,000, VAT is ₱360. Issued check no. 212.
21 Cash sales to Beth Lim, ₱60,000 with VAT of ₱7,200. Official receipt no.1012 The owner withdrew
22 cash of ₱10,000 from the business for his personal use. Issued check no. 213
23 Collected in full the account of Rogelio Reyes. Official receipt no. 1013.
28 Sales on account to Marifuza Company, ₱50,000, VAT is ₱6,000. Terms: 2/10, n/30. Charge sales
invoice no. 1646.
29 Paid freight of the above sale, ₱500. Issued check no. 214
30 Paid LANECO bill, ₱750. Issued check no. 215
Paid KAPWAD bill ₱400. Issued check no. 216
31 Close VAT input to VAT output then set-up VAT payable.
Required:
1. Record the above transactions in the Purchases Journal, Sales Journal, Cash Payments Journal, Cash
Receipts Journal and General Journal. Use the account titles in the Chart of Accounts below:
2. Post the entries in the above journals to the General Ledgers.
3. Prepare the trial balance.
4. Prepare the necessary adjusting entries.
5. Prepare a 10-column worksheet.
6. Prepare the financial statements: Cost of Goods Sold Statement, Statement of Financial Performance,
Statements of Changes in Owner’s Equity, Statement of Financial Position, and the Statement of Cash
Flows.
7. Closing Entries
8. Post-closing Trial Balance
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
Document No.1
Revision # 01
Issued by:
Lala NHS
Page 167 of 199
Salvacion Enterprises
Chart of Accounts
100
101
102
103
104
115
120
150
121
151
ASSETS
Cash in Bank
Accounts Receivable
Merchandise Inventory
Office Supplies
Input Tax
Store Equipment
Accumulated Depreciation-SE
Office Equipment
Accumulated Depreciation - OE
200
201
202
203
204
205
206
207
LIABILITIES
Accounts Payable
Withholding tax Payable
SSS Premium Payable
PhilHealth Premium Payable
Pag-ibig Premium Payable
VAT Payable
Output Tax
300
301
302
305
OWNER’S EQUITY
Salvacion, Capital
Salvacion, Drawing
Income and Expense Summary
JOURNALIZING
Date
May
500
501
502
505
506
511
512
513
514
515
516
517
518
519
520
521
COST and EXPENSES
Purchases
Freight In
Purchases Returns & Allowances
Purchases Discounts
Salaries Expense
Taxes and Licenses
Utilities Expense
Supplies Expense
Freight Out
Rent Expense
Depreciation Expense-SE
Depreciation Expense-OE
SSS Contribution
PhilHealth Contribution
Pag-ibig Contribution
Sales Journal
Invoice No.
13
28
400
REVENUE
401 Sales
410 Sales Returns & Allowances
411 Sales Discounts
Customers
PR
1645
1646
Credit
15,000
50,000
Credit
1,800
6,000
Accounts
Receivable
Debit
16,800
56,000
65,000
7,800
72,800
Purchases
Input VAT
Debit
12,000
20,000
Debit
1,440
2,400
Accounts
Payable
Credit
13,440
22,400
32,000
3,840
35,840
Sales
Output Tax
Purchases Journal
Date
May
Invoice No.
5
18
Suppliers
PR
23651
65381
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
Document No.1
Revision # 01
Issued by:
Lala NHS
Page 168 of 199
Cash Receipts Journal
Official
Receipt
No.
Date
May 1
12
21
23
Invoice
No.
Account
Credited
PR
S., Capital
1011
1012
1013
Sundries
Credit
Accounts
Receivable
Credit
500,000
Sales
Credit
Output
Tax
Credit (Debit)
1,200
7,200
(24)
200
8,376
200
589,376
Purchases
Input Tax
Purchases
Discounts
Cash in Bank
Debit
Debit
(Credit)
Credit
Credit
10,000
1,200
11,200
11,200
Cash in
Bank
Debit
500,000
11,200
67,200
10,976
10,000
60,000
1645
Sales
Discounts
Debit
70,000
Cash Disbursements Journal
Official
Receipt
No.
Date
May
2
3
6
7
10
11
14
15
Invoice/
Check
No.
202
203
204
205
206
207
208
209
Account
Debited
Rent Expense
Freight In
Store Equipment
Taxes and Licenses
Office Supplies
SSS Prem. Payable
PH Prem. Payable
Pag-ibig Prem. Payable
210
211
212
213
214
215
216
Sundries
Debit
2,000
200
12,500
200
6,250
Accounts
Payable
Debit
(7,000)
Freight Out
Utilities Expense
Utilities Expense
750
600
5,000
(150)
(100)
(50)
(70)
11,200
7,000
Salvacion, Drawing
11,200
2,000
200
7,000
200
7,000
5,600
4,630
1,500
5,000
Salaries Expense
Withholding Tax
15
17
20
22
29
30
PR
(24)
3,000
360
18,000
4,386
200
10,976
7,000
3,360
10,000
500
750
400
200
70,816
10,000
500
750
400
11,200
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
Document No.1
Revision # 01
Issued by:
Lala NHS
Page 169 of 199
General Journal
Page Number 1
May
8
9
1
4
3
1
Current Journal Entries
Description
Ref
Office Equipment
Input Tax
Accounts Payable
Acquired on account.
Debit
25,000
3,000
Credit
28,000
Accounts Payable
Purchases Returns & Allowances
Input Tax
Returns to Delfin Trading.
2,240
Sales Returns & Allowances
Output Tax
Accounts Receivable
Returns from Rogelio Reyes.
5,000
600
Output Tax
Input Tax
VAT Payable
Setting up the VAT payable.
15,576
2,000
240
5,600
10,986
4,590
POSTING
Date
Account
Item
May
Date
May
Date
May
11
Receipts
Disbursements
101
PR
CRJ
CDJ
Debit
589,376
Account
Item
Sales on account
Sales returns
Collections
102
PR
SJ
GJ
CRJ
Accounts Receivable
Balance
Debit
Credit
72,800
72,800
5,600
67,200
11,200
56,000
Account
Item
Acquired for cash
104
PR
CDJ
Debit
6,250
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
Cash
Credit
70,816
Balance
589,376
518,560
Office Supplies
Balance
Credit
6,250
Document No.1
Revision # 01
Issued by:
Lala NHS
Page 170 of 199
Date
Account
Item
Purchases on account
Cash purchases
Office equipment account
Returns to supplier
Setting VAT Payable
115
PR
PJ
CDJ
GJ
GJ
GJ
Account
Item
Acquired in cash
120
PR
CDJ
Store Equipment
Balance
Debit
Credit
12,500
12,500
Date
Account
Item
150
PR
Accumulated Depreciation - SE
Balance
Debit
Credit
Date
Account
Item
Acquired on account
121
PR
GJ
Office Equipment
Balance
Debit
Credit
25,000
25,000
Date
Account
Item
151
PR
Accumulated Depreciation - OE
Balance
Debit
Credit
Date
Account
Item
Purchase of merchandise
Payment
Returns to supplier
Office equipment account
201
PR
PJ
CDJ
GJ
GJ
15
Account
Item
Deduction from employee
202
PR
CDJ
Withholding Tax Payable
Balance
Debit
Credit
150
150
15
Account
Item
Deductions from employees
203
PR
CDJ
SSS Premium Payable
Balance
Debit
Credit
100
100
May
Date
May
7
May
8
May
Date
May
Date
May
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
Debit
3,840
4,386
3,000
Input Tax
Credit
240
10,986
Balance
3,840
8,226
11,226
10,986
0
Accounts Payable
Balance
Credit
13,440
35,840
11,200
24,640
2,240
22,400
28,000
50,400
Debit
Document No.1
Revision # 01
Issued by:
Lala NHS
Page 171 of 199
Date
May
15
Account
Item
Deductions from employees
204
PR
CDJ
PhilHealth Premium Payable
Balance
Debit
Credit
50
50
15
Account
Item
Deductions from employees
205
PR
CDJ
Pag-ibig Premium Payable
Balance
Debit
Credit
70
70
31
Account
Item
Setting up VAT payable
206
PR
GJ
VAT Payable
Credit
4,590
Account
Item
Cash Sales
Sales on account
Sales returns
Setting up VAT payable
207
PR
CRJ
SJ
GJ
GJ
Account
Item
Initial investment
301
PR
CRJ
Debit
Account
Item
Cash withdrawal for personal
302
PR
CDJ
Salvacion, Drawing
Balance
Debit
Credit
10,000
10,000
Income and Expense Summary
Balance
Debit
Credit
Date
May
Date
May
Date
May
Date
May
Date
May
Date
Account
Item
305
PR
Date
Account
Item
401
PR
CRJ
SJ
May
Cash sales
Sales on account
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
Debit
Debit
600
15,576
Debit
Output Tax
Credit
8,376
7,800
Balance
4,590
Balance
8,600
16,400
15,576
0
Salvacion, Capital
Balance
Credit
500,000
500,000
Sales
Credit
70,000
65,000
Document No.1
Revision # 01
Issued by:
Lala NHS
Balance
70,000
135,000
Page 172 of 199
Date
May
14
Date
May
Date
May
Date
May
Date
May
9
Date
May
Date
May
Date
May
Account
Item
Returns from Reyes
410
PR
GJ
Sales Returns & Allowances
Balance
Debit
Credit
5,000
5,000
Account
Item
Discounts to Reyes
411
PR
CRJ
Debit
200
Account
Item
Cash purchases
Purchases on account
501
PR
CDJ
PJ
Account
Item
Freight on purchases
502
PR
CDJ
Debit
200
Account
Item
Returns to supplier
505
PR
GJ
Purchases Returns & Allowances
Balance
Debit
Credit
2,000
2,000
Account
Item
Discounts from Delfin Trading
506
PR
CDJ
Purchases Discounts
Balance
Debit
Credit
200
200
Account
Item
Salaries to employees
511
PR
CDJ
Salaries Expense
Balance
Debit
Credit
5,000
5,000
Account
Item
Business permits
512
PR
CDJ
Taxes and Licenses
Balance
Debit
Credit
200
200
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
Debit
18,000
32,000
Sales Discounts
Balance
Credit
200
Purchases
Credit
Freight In
Credit
Document No.1
Revision # 01
Issued by:
Lala NHS
Balance
18,000
50,000
Balance
200
Page 173 of 199
Date
Account
Item
513
PR
CDJ
CDJ
Utilities Expense
Balance
Debit
Credit
750
750
400
1,150
Date
Account
Item
514
PR
Debit
Date
Account
Item
515
PR
CDJ
Debit
500
Account
Item
Rental for the month
516
PR
CDJ
Debit
2,000
Date
Account
Item
517
PR
Depreciation Expense - SE
Balance
Debit
Credit
Date
Account
Item
518
PR
Depreciation Expense - OE
Balance
Debit
Credit
Date
Account
Item
519
PR
Debit
Account
Item
520
PR
PhilHealth Contribution
Balance
Debit
Credit
May
Electricity used
Water used
May
Freight on sales
Date
May
Date
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
Supplies Expense
Balance
Credit
Freight Out
Credit
Balance
500
Rent Expense
Credit
Balance
2,000
SSS Contribution
Balance
Credit
Document No.1
Revision # 01
Issued by:
Lala NHS
Page 174 of 199
Date
Account
Item
521
PR
Pag-ibig Contribution
Balance
Debit
Credit
Salvacion Enterprises
Trial Balance
May 31, 2023
Acct.
No.
101
102
104
120
121
201
202
203
204
205
206
301
302
401
410
411
501
502
505
506
511
512
513
515
516
Account Title
Cash in Bank
Accounts Receivable
Office Supplies
Store Equipment
Office Equipment
Accounts Payable
Withholding Tax Payable
SSS Premium Payable
PhilHealth Premium Payable
Pag-ibig Premium Payable
VAT Payable
Salvacion, Capital
Salvacion, Drawing
Sales
Sales Returns and Allowances
Sales Discounts
Purchases
Freight In
Purchases Returns and Allowances
Purchases Discounts
Salaries Expense
Taxes and Licenses
Utilities Expense
Freight Out
Rent Expense
TOTAL
Debit
518,560
56,000
6,250
12,500
25,000
10,000
5,000
200
50,000
200
5,000
200
1,150
500
2,000
692,560
Credit
50,400
150
100
50
70
4,590
500,000
135,000
2,000
200
692,560
NOTE: The rest of the requirements will be tackled in the next chapter.
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
Document No.1
Revision # 01
Issued by:
Lala NHS
Page 175 of 199
Task 7-2
The December 31, 2022 Post-closing Trial Balance for the MCC Company follows:
MCC Company
Post-closing Trial Balance
December 31, 2022
Cash in Bank
Accounts Receivable
Merchandise Inventory
Prepaid Rent
Office Supplies
Office Equipment
Accumulated Depreciation-Office Equipt.
Accounts Payable
Notes Payable-Long Term
Columbus, Capital
₱ 240,000
235,200
730,000
90,000
160,000
1,000,000
_________
₱ 250,000
145,600
400,000
1,659,600
₱2,455,200
₱2,455,200
Accounts receivable of ₱235,200 includes 12% VAT and is related to a sale to R. Loyola on
December 28, 2022. All credit sales are 2/10, n/30. The accounts payable balance of ₱145,600 includes
12% VAT is attributable to a purchase on December 29, 2022 from E. Samonte Company. All
purchases are 3/10, n/30.
During the month of January 2023, the following transactions were completed. VAT of 12% is
billed separately.
2023
Jan
2 Sold merchandise on credit to B. Bandonell, ₱240,000. Charge sales invoice no. 316.
3 Purchased merchandise on account from T. Arenas Company, ₱90,000. Invoice no. 302.
4 Collected the amount due from December 28 sale to R. Loyola less discounts. Official
receipt no. 0020.
5 Sold merchandise for Cash to G. Cua, ₱430,000. Cash sales invoice no. 006.
7 Paid the amount due to E. Samonte Company for the purchase on December 29, 2022 less
discounts. Issued check no. 83.
8 Sold merchandise on account to G. Sevidal, ₱310,000. Charge sales invoice no. 317.
9 Returned merchandise purchased from T. Arenas Company, ₱10,000.
10 Collected in full the amount due from B. Badonell. Official receipt no. 0021.
11 Purchased merchandise on account from L. Viray Company, ₱120,000. Invoice no. 025.
11 Paid in full T. Arenas Company the amount due. Issued check no. 84.
12 Purchased merchandise for cash from KC Marketing, ₱70,000. Issued check no. 85.
13 Sold merchandise on account to M. Cerda, ₱130,000. Charge sales invoice no. 318.
14 Paid interest on the note payable, ₱10,000. Issued check no. 86.
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
Document No.1
Revision # 01
Issued by:
Lala NHS
Page 176 of 199
Jan 15
17
18
19
21
22
22
23
24
25
25
26
27
28
29
30
30
30
Paid salaries, ₱80,000. Issued check no. 87.
Purchased merchandise on account from E. Samonte Company, ₱190,000. Invoice no. 465.
Sold merchandise on account to R. Loyola, ₱460,000. Invoice no. 319.
Columbus withdrew ₱100,000 from the business. Issued check no. 88.
Acquired office supplies for cash from Air Supply Company, ₱40,000. Issued check no.
89.
Paid freight charges to Air Freight Phils. on the merchandise purchased from E. Samonte
Company on January 17, ₱20,000. Issued check no. 90.
Collected the amount due from M. Cerda. Official receipt no. 0022.
Sold merchandise on credit to B. Bandonell, ₱110,000. Invoice no. 320.
Received returned merchandise from G. Sevidal, ₱30,000.
Received the amount due from G. Sevidal on the sale of January 8. Official receipt no.
0023.
Purchased merchandise on account from A. Braganza Company, ₱340,000. Invoice no.
0032.
Paid ₱90,000 worth of merchandise to E. Samonte Company in partial payment of January
17 account. Issued check no. 91.
Received ₱170,000 loan from First Morayta Bank and issued a note payable.
Purchased merchandise on account from L. Viray Company, ₱360,000. Invoice no. 1435.
Sold merchandise on account to M. Cerda, ₱170,000. Charge sales invoice no. 321.
Purchased merchandise on account from T. Arenas Company, ₱360,000. Invoice no. 0046.
Sold merchandise for cash to Q. Quirino, ₱1,310,000. Cash sales invoice no. 0024.
Close VAT input to VAT output and then set up VAT payable.
Required:
1. Record the transactions for the month of January using special journals.
2. Enter the December 31, 2022 post-closing trail balance amounts in the general ledgers. Total the
journals and post to the general ledger accounts.
3. Prepare the unadjusted trial balance.
4. Prepare the necessary adjusting entries. (Note: this activity will be performed in the next chapter)
5. Complete a 10-colunm Worksheet.
6. Prepare the following financial reports:
a. Statement of Cost of Goods Sold
b. Statement of Comprehensive Income
c. Statement of Changes in Owner’s Equity
d. Statement of Financial Position
e. Statement of Cash Flows
7. Prepare the necessary closing entries and post them in the individual ledger.
8. Prepare the Post-Closing-Trial Balance
9. Prepare the Reversing Entries.
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
Document No.1
Revision # 01
Issued by:
Lala NHS
Page 177 of 199
Cash Receipts Journal
Official
Receipt
No.
Date
Jan
Invoice
No.
Account
Credited
PR
SUNDRY
Credit
4 0020
5
Accounts
Receivable
Credit
Sales
VAT
Output
Credit
Credit
(Debit)
235,200
006
(504)
430,000
Sales
Discounts
Debit
Cash in
Bank
Debit
4,200
230,496
51,600
481,600
10 0021
268,800
(576)
4,800
263,424
22
022
145,600
(312)
2600
142,688
25 0023
313,600
27
Notes Payable
313,600
170,000
170,000
30 0024
1,310,000
157,200
1,467,200
963,200 1,740,000
207,408
11,600 3,069,008
Cash Disbursements Journal
Official
Receipt
No.
Date
Jan
Invoice
/Check
No.
Account
Debited
PR
SUNDRY
Accounts
Payable
Purchases
VAT
Input
Purchases
Discounts
Cash in
Bank
Debit
Debit
Debit
Debit
(Credit)
Credit
Credit
7
83
145,600
(468)
3,900
141,232
11
84
89,600
(288)
2,400
86,912
12
85
14
86
Interest Expense
10,000
10,000
15
87
Salaries Expense
80,000
80,000
19
88
Columbus, Drawing
100,000
100,000
21
89
Office Supplies
40,000
40,000
22
90
Freight In
20,000
20,000
26
91
70,000
100,800
336,000
70,000
8,400
78,400
(324)
2,700
97,776
7,320
9,000
654,320
Purchases Journal
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
Document No.1
Revision # 01
Issued by:
Lala NHS
Page 178 of 199
Date
Jan
Invoice
No.
3
11
17
25
28
30
Suppliers
PR
302
025
465
0032
1435
0046
Purchases
Input VAT
Debit
Debit
Accounts
Payable
Credit
90,000
120,000
190,000
340,000
360,000
360,000
1,460,000
10,800
14,400
22,800
40,800
43,200
43,200
175,200
100,800
134,400
212,800
380,800
403,200
403,200
1,635,200
Sales Journal
Date
Jan
Invoice
No.
2
8
13
18
23
29
Customers
PR
316
317
318
319
320
321
Sales
Output VAT
Credit
Credit
Accounts
Receivable
Debit
240,000
310,000
130,000
460,000
110,000
170,000
1,420,000
28,800
37,200
15,600
55,200
13,200
20,400
170,400
268,800
347,200
145,600
515,200
123,200
190,400
1,590,400
General Journal
Page Number 1
Jan
Current Journal Entries
Ref
DEBIT
CREDIT
Description
9 Accounts Payable – T. Arenas
Purchases Returns & Allowances
VAT Input
To record returns from purchases.
11,200
10,000
1,200
24 Sales Returns & Allowances
VAT Output
Accounts Receivable – G. Sabandal
To record returns on sales.
30,000
3,600
30 VAT Output
VAT Input
VAT Payable
Close VAT input & VAT output and set up VAT payable
374,208
33,600
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
181,320
192,888
Document No.1
Revision # 01
Issued by:
Lala NHS
Page 179 of 199
GENERAL LEDGER
Date
Jan
1
Date
Jan
1
Date
Jan
1
Account
111
Item
Post
Debit
Beginning Balance
Receipts
Payments
CRJ
CDJ
3,069,008
112
Item
Post
Debit
Beginning Balance
Sales on account
Collection
Returns
SJ
CRJ
GJ
1,590,400
Account
113
Item
Post
114
2022
Item
Post
Date
Jan
115
Item
Post
1 Beginning Balance
21
CDJ
Jan
1
Date
Jan
1
Account
120
Item
Post
Credit
963,200
33,600
120-A
Item
Post
Balance
DR
CR
235,200
1,825,600
862,400
828,800
Merchandise Inventory
Debit
Credit
Balance
DR
CR
730,000
Prepaid Rent
Debit
Credit
Balance
DR
CR
90,000
Office Supplies
Debit
Credit
40,000
Balance
DR
CR
160,000
200,000
Office Equipment
Debit
Credit
Beginning Balance
Account
Balance
DR
CR
240,000
3,165,720
2,654,688
Accounts Receivable
Beginning Balance
Account
Date
654,320
Beginning Balance
Account
1
Credit
Account
Date
Jan
Cash in Bank
Balance
DR
CR
1,000,000
Accumulated Depreciation – Office Equipt.
Debit
Credit
Beginning Balance
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
Document No.1
Revision # 01
Issued by:
Lala NHS
DR
Balance
CR
250,000
Page 180 of 199
Date
Jan
1
Date
Account
130
Item
Post
Debit
Beginning Balance
Purchases on account
Payments
Returns
PJ
CRJ
GJ
336,000
11,200
Account
131
Item
Post
Jan
Accounts Payable
Credit
Debit
Account
132
2023
Item
Post
Date
Account
132
2023
Item
Post
Credit
Account
140
Item
Post
1 Beginning Balance
27
CRJ
192,888
Debit
Credit
Date
Jan
1
27
Date
Jan
Account
150
Item
Post
Beginning Balance
Debit
Credit
Balance
CR
192,888
DR
Balance
CR
DR
Balance
CR
Notes Payable – Log term
Debit
Credit
DR
Balance
CR
400,000
570,000
170,000
Columbus, Capital
Debit
CRJ
Credit
DR
Balance
CR
400,000
570,000
170,000
Account
155
Item
Post
Debit
CDJ
100,000
19
DR
Accrued Salaries Expense
Jan
Jan
CR
145,600
1,780,800
1,44,800
1,433,600
Accrued Interest Expense
Jan
Date
Balance
1,635,200
VAT Payable
GJ
Date
DR
Columbus, Drawing
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
Credit
Document No.1
Revision # 01
Issued by:
Lala NHS
Balance
DR
CR
100,000
Page 181 of 199
Date
Account
160
Item
Post
Jan
Account
161
Item
Post
24
Date
GJ
Account
162
Item
Post
Jan
CRJ
Date
Account
163
Item
Post
Jan
CRJ
SJ
GJ
GJ
24
30
Date
Jan
Date
Jan
Debit
SJ
CRJ
Date
Jan
Sales
Date
DR
Balance
CR
1,420,000
3,160,000
Sales Returns & Allowances
Debit
Credit
30,000
Balance
DR
CR
30,000
Sales Discounts
Debit
Credit
11,600
Balance
DR
CR
11,600
VAT Output
Debit
3,600
374,208
170
Item
Post
Debit
Purchases on account
Cash purchases
PJ
CDJ
1,460,000
70,000
Account
171
Item
Post
Credit
207,408
170,400
DR
Balance
CR
207,408
377,808
374,208
0
Purchases
Credit
Balance
DR
CR
1,460,000
1,530,000
Freight In
Debit
Credit
Balance
DR
CR
20,000
CDJ
20,000
Account
172
Purchases Returns & Allowances
Item
Post
Jan
Date
1,420,000
1,740,000
Account
22
Credit
Debit
JG
Account
173
Item
Post
Jan
Credit
10,000
DR
Balance
CR
10,000
Purchases Discounts
Debit
CDJ
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
Credit
9,000
Document No.1
Revision # 01
Issued by:
Lala NHS
DR
Balance
CR
9,000
Page 182 of 199
Date
Account
174
Item
Post
Debit
CDJ
PJ
GJ
GJ
7,320
175,200
Jan
9
30
Date
Jan
180
Item
Post
15
Date
Jan
Account
VAT Input
181
Item
Post
14
1,200
181,320
Salaries Expense
Debit
CDJ
Account
Balance
DR
CR
7,320
182,520
181,320
0
Credit
Balance
DR
CR
80,000
Credit
80,000
Interest Expense
Debit
CDJ
Balance
DR
CR
10,000
Credit
10,000
MCC Company
Trial Balance
January 31, 2023
Account Title
Cash in Bank
Accounts Receivable
Merchandise Inventory
Prepaid Rent
Office Supplies
Office Equipment
Accumulated Depreciation – Office Equipt.
Accounts Payable
VAT Payable
Notes Payable
Columbus, Capital
Columbus, Drawing
Sales
Sales Returns & Allowances
Sales Discounts
Purchases
Freight In
Purchases Returns & Allowances
Purchases Discounts
Salaries Expense
Interest Expense
Debit
₱2,654,688
828,800
730,000
90,000
200,000
1,000,000
100,000
30,000
11,600
1,530,000
20,000
80,000
10,000
₱7,285,088
TOTAL
Credit
₱ 250,000
1,433,600
192,888
570,000
1,659,600
3,160,000
10,000
9,000
.
₱7,285,088
NOTE: The rest of the requirements will be tackled in the next chapter.
Fundamentals of ABM 1
Date Developed:
June 2023
The Use of Special Journals
Developed by:
Roberto P. Rebucas
Document No.1
Revision # 01
Issued by:
Lala NHS
Page 183 of 199