BASIC ACCOUNTING

CONTROLLING ACCOUNTS

Illustrative Problems – Leo Trading

Selected transaction of Leo Trading for the month of January are presented as follows:

Jan. 2 Sold merchandise to Andres Seva P1,600.00, terms: 2/10, n/30, SI No.
201.
6 Sold merchandise to Renato Peleo P2,200.00, terms: 2/10, n/30, SI No.
202.
9 Collected from Andres Seva the sale of Jan. 2 less discount. OR No. 528
12 Sold merchandise to Romeo Jimenez P3,000.00, terms: 1/20, n/60, SI No.
209.
14 Issued credit memo to Renato Peleo for damaged merchandise sold on
Jan. 6, P100.00.
15 Sold merchandise to Claro Medina P2,500.00, terms: 1/20, n/60. SI No.
214.
16 Collected from Renato Peleo the sale of Jan. 6 less discount. OR No. 535.
16 Sold merchandise to Andres Seva P2,600.00, terms: 2/10, n/30. SI 215.
18 Sold merchandise to Andres Seva P2,600.00, terms: 2/10, n/30. SI No.
216.
19 Issued credit memo to Andres Seva for defective merchandise sold on
Jan. 18, P100.00.
20 Sold merchandise to Romeo Jimenez P1,550.00, terms: 2/10, n/30. SI No.
217.
21 Issued credit memo to Remeo Jimenez for defective merchandise sold on
Jan. 20, P50.00.
25 Collected from Renato Peleo the sale of Jan. 16 less discount.OR No. 542.
25 Sold merchandise to Andres Seva P1,000.00, terms: 2/10, n/30. SI No.
222.
27 Collected from Andres Seva the sale of Jan. 18 less discount. OR No. 543.
28 Sold merchandise to Claro Medina P2,000.00, terms: 2/10, n/30, SI No.
229.
30 Collected from Romeo Jimenez the sale of Jan. 20 less discount. OR No.
550.

Required:
1. Design and construct a sales journal, a cash receipts journal, and a general
ledger.
2. Design and construct three-column subsidiary ledger accounts for each of the
following charge customers:
a) Romeo Jimenez – 366 Dongalo, Paranaque, Metro Manila
b) Claro Medina – 168 P. Cruz, Mandaluyong, Metro Manila
c) Renato Peleo – 45 Green St., Marikina, Metro Manila
d) Andres Seva – 1256 EDSA, Quezon City
3. Design and construct a general ledger controlling account: Accounts Receivable.
4. Record the above transactions in the appropriate journals.
5. Total and rule the special journals.
6. Post to the general ledger controlling account and corresponding subsidiary
ledger accounts. Ignore the other accounts.
7. Prepare the schedule of accounts receivable as of January 31.