Activity 10-Recording Credit

So far, all our lessons are based on Cash activities. Let’s now study to handle credit.
Divine’s Lechon Manok
Divine has a Lechon Manok business. The following are her activities for the month of
February:
Date Description Amount
Feb.1 Beginning Balance 15,000.00
Feb.3 Bought Charcoal 550.00
Bought ingredients for chicken sauce 725.00
Feb.5 Bought dressed chicken 1,000.00
Feb.8 Sold 7 Lechon Manok at ₱ 150.00 1,050.00
Feb.11 Paid wages of Lechonero 500.00
Feb.12 Got Charcoal on credit 750.00
Sold 5 Lechon Manok at ₱ 150.00 750.00
Feb.15 Paid Electricity bill 325.00
Sold 5 Lechon Manok at ₱ 150.00 750.00
Feb.17 Paid Charcoal obtained on credit 750.00
Bought dressed chicken 1,500.00
Feb.21 Paid rent 800.00
Feb.22 Paid installment for motorcycle (for delivery) 5,000.00
Feb.25 Sold 20 Lechon Manok at ₱ 150.00 3,000.00
Feb.26 Sold 5 Lechon Manok at ₱ 150.00 on credit to Mrs. Cruz 750.00
Feb.28 Bought Charcoal in cash 750.00
Paid wages of Lechonero 500.00
Paid for tuition fees of son 2,000.00
Feb.28 Mrs. Cruz pays for Lechon Manok that she owes 750.00
Notice that she has credit activities. She buys some supplies and sells her product on credit.
This will affect her record-keeping. She needs a Credit Record Book aside from a Cash
Record Book.

She has to separate her cash from her credit transactions. She uses a simple notebook as
her Credit Record Book. Complete her recording below based on her activities listed above:

PAUTANG SA UTANG SA
Date Sold Custome Amount Paid Bought Supplier Amount Paid out
Items r in Items
12-Feb. Charcoal Mang Toto 750.00
17-Feb. Mang Toto 750.00

Use the forms in the next pages to make Divine’s Cash Record Book and Cash Flow.
Remember, record only the cash activities in the Cash Record Book and in the Cash Flow.
Divine’s Cash Record Book
Date Cash in Cash Out Balance

Item Amount Item Amount

Date/Month
Cash at the beginning of the Period
CASH IN
Sales + Product
Any other cash in
TOTAL CASH IN
CASH OUT
Direct Materials

Direct Labor
Indirect Costs

TOTAL CASH OUT

Cash at the end of the day
Cash Out for Family Wages
Remaining Cash After Family Wage
Divine’s Cash Flow
NO NAME OF CUSTOMER TYPE OF SERVICE TIME AMOUNT
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Submitted by: ___________________________

TRAINEE

Submitted to: _____________________________

TRAINER