PRACTICE SET 2

In January 2021, DJ Ref Corporation was established as a corporation with authorized capital of Php 900,000 and
with paid-up capital of Php 300,000. DJ Ref Corporation is engaged in buying and selling of merchandise with a store
located in Lucena.

The corporation prepares financial statements on a monthly basis; hence, it prepares adjusting and closing entries at
the end of each month.

The Following is the Chart of Accounts of DJR Corp..

100 ASSETS 400 REVENUE

101 CASH 401 SALES
105 ACCOUNTS RECEIVABLE 405 SALES RETURNS AND ALLOWANCES
110 MERCHANDISE INVENTORY 410 SALES DISCOUNT
115 INPUT VAT 500 EXPENSES
120 STORE EQUIPMENT 501 PURCHASES
121 ACCUMULATED DEP-STORE EQUIP 505 PURCHASE RETURNS AND
ALLOWANCES
130 OFFICE EQUIPMENT 510 PURCHASE DISCOUNT
131 ACCUMULATED DEP-OFFICE EQUIP 515 SALARIES EXPENSE
200 LIABILITIES 520 SSS PH AND PAG IBIG CONTRIBUTION
201 ACCOUNTS PAYABLE 525 RENT EXPENSE
205 WITHOLDING TAX PAYABLE 530 UTILITIES EXPENSE
210 EXPANDED WH TAX PAYABLE 535 SUPPLIES EXPENSE
215 SSS PH PAG IBIG CONTRIBUTION 540 TRANSPORTATION EXPENSE
PAYABLE
220 UTILITIES PAYABLE 545 DEPRECIATION EXPENSE – STORE
EQUIP
225 OUTPUT VAT 550 DEPRECIATION EXPENSE – OFFICE
EQUIP
230 CASH DIVIDENDS PAYABLE 555 MISCELLANEOUS EXPENSE
300 EQUITY 560 INCOME TAX EXPENSE
301 ORDINARY SHARE CAPITAL,
P100 PAR
305 RETAINED EARNINGS
310 INCOME SUMMARY

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Direction: read carefully the accounting policy used by the corporation on their business DJR Corp.

1. The corporation uses special journals to record sales, purchases, cash receipts, and cash disbursements in
addition to general journal. It also maintains subsidiary ledger both for its customers and suppliers or
creditors.
2. Depreciation on store and office equipment is 10% per annum based on the store and office equipment
balance.
3. Purchases of supplies are immediately charge to expenses.
4. Merchandise Inventory at November 30 is Php 110, 000.

The following is the POST CLOSING TRIAL BALANCE OF DJR Corp. for month of November 2021
DEBIT CREDIT

Cash PHP 190 000

Account Receivable 25 000
Merchandise Inventory 90 000
Input VAT 12 000
Store Equipment 80 000
Accumulated Dep- store equipment 3 000
Office Equipment 40 000
Accumulated Dep- office equipment 1 400
Accounts Payable 30 000
Withholding Taxes Payable 800
Expanded Withholding Tax Payable 500
SSS Ph Pag Ibig Contribution Payable 5 550
Utilities Payable 3 800
Ordinary Share Capital, P100 par 300 000
Retained earnings 91 950

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 DJ REF CORPORATION

GENERAL JOURNAL

DATE PARTICULARS PR DEBIT CREDIT

2021

3
 DJ REF CORPORATION

GENERAL JOURNAL

DATE PARTICULARS PR DEBIT CREDIT

2021

DJ REF CORPORATION
4
 GENERAL JOURNAL

DATE PARTICULARS PR DEBIT CREDIT

2021

DJ REF CORPORATION
5
 SALES JOURNAL

DATE INVOICE PARTICULARS PR Sales Output VAT Accounts

2021 NO Receivable
Credit Credit Debit

Total

DJ REF CORPORATION

6
 CASH RECEIPTS JOURNAL

DATE OR INVOIC PARTICULARS PR Accounts Sales Outpu Sales Cash

2021 NO E NO Receivables t VAT Discount
Credit Credit Credit Debit Debit

Total

DJ REF CORPORATION
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 PURCHASES JOURNAL

DATE INVOICE PARTICULARS PR Purchases Input VAT Accounts

2021 NO Payable
Debit Debit Credit

Total