Muntinlupa National High School – Main

Senior High School – Accountancy, Business and Management

ACCOUNTING 2

Test Yourself

Activity #1
Analyzing transactions as to what account is debited and credited

Robinson Company uses the perpetual inventory system and this is a VAT Registered Company.
All transactions include 12% VAT.

1. Purchased merchandise from X Company for P7,200 under credit terms, n/30.
2. Purchased merchandise from BBB Company for P11,200 Cash.
3. Paid freight on the shipment in No. 2, P500.
4. Robinson Company sold merchandise costing P 20,000 for P25,000 under credit terms, 2/10, n/30, FOB
Destination.
5. Robinson Company paid P1,000 freight on no. 4 transaction.
6. Robinson sold merchandise costing P30,000 for P40,000 for cash. Freight of P 1,200 is also paid
by Robinson because the credit term is FOB Destination.
7. Paid the account to X Company in full.
8. Collected the account in no. 4 within the discount period.
9. Purchased merchandise from DDD company for P16,800. Terms, 5,2/10,n/30, FOB Shipping point.
10. Robinson Company paid P800 for freight on transaction no. 9.
11. Paid the account in full within the discount period.

REQUIRED: Using the format given below, prepare an analysis for each transaction as to what is debited or
credited. Analyze also the effects of the transactions on the accounting equation.
Lesson 2: Analyzing Merchandising Transactions

ACTIVITY#1
Analyzing transactions as to what account is debited and credited.

Description of each transaction Account Debited Account Credited

1. Purchased merchandised Merchandised Inventory, 7,200 Accounts Payable, 9,064
VAT payable, 864
2. Purchased merchandised Merchandised Inventory, 11,200 Cash, 12,544
VAT payable, 1,344
3. Purchased merchandised Merchandised Inventory, 2,500 Cash, 2,500
4. Sold merchandised Cost of Sale, 20,000 Merchandised Inventory, 20,000
Account Receivable, 28,000 Sales, 25,000
VAT payable, 3,000
5. Sold merchandised Freight out, 1,000 Cash, 1,000
6. Sold merchandised Cost of sale, 30,000 Merchandised Inventory, 30,000
Cash, 44,800 Sales, 40,000
Freight out, 1,200 VAT payable, 4,800
Cash, 1,200
7. Paid account Accounts Payable, 8,064 Cash, 8,064
8. Collected account Cash, 27,440 Account Receivable, 28,000
Sales discount, 500
VAT payable, 60
9. Purchased merchandised Merchandised Inventory, 15,960 Accounts Payable, 17,875.2
VAT payable, 1,915.2
10. Sold merchandised Freight out, 800 Cash, 800
11.Paid account Accounts Payable, 17,875.2 Merchandised Inventory, 319.2
VAT payable, 38.3
Cash, 17,517.17
Analysis as to the effect of each transaction on the accounting equation.
1. Effect on the Accounting Equation

ASSETS = LIABILITIES OWNER’S EQUITY

7,200 -864 No effect
8,064

= 7,200 = 7,200

2. Effect on the Accounting Equation

ASSETS = LIABILITIES OWNER’S EQUITY

11,200 -1,344 No effect
-12,544

= -1,344 = -1,344

3. Effect on the Accounting Equation

ASSETS = LIABILITIES OWNER’S EQUITY
2,500 No effect No effect
-2,500

=0

4. Effect on the Accounting Equation

ASSETS = LIABILITIES OWNER’S EQUITY

28,000 3,000 -20,000
-20,000 25,000

= 3,000 = 3,000 = 3,000

5. Effect on the Accounting Equation

ASSETS = LIABILITIES OWNER’S EQUITY

-1,000 No effect -1,000

= -1,000 = -1,000

6. Effect on the Accounting Equation

ASSETS = LIABILITIES OWNER’S EQUITY

44,800 4,800 -30,000
-30,000 40,000
-1,200 -1,200
= 13,600 = 13,600
7. Effect on the Accounting Equation

ASSETS = LIABILITIES OWNER’S EQUITY

-8,064 -8,064 No effect

= -8,064 = -8,064

8. Effect on the Accounting Equation

ASSETS = LIABILITIES OWNER’S EQUITY

27,400 -60 -500
-28,000

= -560 = -560 = -500

9. Effect on the Accounting Equation

ASSETS = LIABILITIES OWNER’S EQUITY
15,960 -1,915.2 No effect
-17,875.2

= 15,960 = 15,960

10. Effect on the Accounting Equation

ASSETS = LIABILITIES OWNER’S EQUITY

800 No effect No effect
-800

=0

11. Effect on the Accounting Equation

ASSETS = LIABILITIES OWNER’S EQUITY
-319.2 -17,875.2 No effect
-17,517.17 38.3

= -17,836.9 = -17,836.9