MODULE 2

LESSON 3
ASSESSMEN
T: I.

GENERAL JOURNAL
Date Descriptions PR Debit Credit

1 Cash 20,000
Dee Malas, Capital 20,000
To record the cash investment
of Dee Malas.
2 Cleaning Supplies 3,000
Cash 3,000
To record the purchased
cleaning supplies.
3 Office Equipment 15,000
Cash 5,000
Accounts Payable 10,000
To record the office
equipment purchased.
4 Cash 1,000
Service Income 1,000
To record the cash received
from the service rendered.
Salaries Expense 300
Cash 300
To record the salary paid for
crew.
Cleaning Supplies 300
Cash 300
To record the cleaning
supplies spent.
5 Cash 2,000
Service Income 2,000
To record the cash received
for the service rendered.
Accounts Receivable 3,000
Service Income 3,000
To record uncollected income.
 Salaries Expense 2,000
Cash 2,000
To record the salaries for
crew.
Supplies Expense 1,000
Cleaning Supplies 1,000
To record the used cleaning
supplies.

GENERAL LEDGER
ACCOUNT:
CASH
DATE DEBITS CREDITS
1 20,000
2 3,000
3 5,000
4 1,000
300
300
5 2,000
2,000
23,000 10,600
TOTAL 12,400

GENERAL LEDGER
ACCOUNT: ACCOUNTS
RECEIVABLE
DATE DEBITS CREDITS
5 3,000
TOTAL 3,000

GENERAL LEDGER
ACCOUNT:
SUPPLIES
DATE DEBITS CREDITS
2 3,000
4 300
5 1,000
3,300 1,000
TOTAL 2,300
 GENERAL LEDGER
ACCOUNT: OFFICE
EQUIPMENT
DATE DEBITS CREDITS
3 15,000
TOTAL 15,000

GENERAL LEDGER
ACCOUNT: ACCOUNTS
PAYABLE
DATE DEBITS CREDITS
3 10,000
TOTAL 10,000

GENERAL LEDGER
ACCOUNT: DEE MALAS,
CAPITAL
DATE DEBITS CREDITS
1 20,000
TOTAL 20,000

GENERAL LEDGER
ACCOUNT: SALARIES
EXPENSE
DATE DEBITS CREDITS
4 300
5 2,000
TOTAL 2,300

GENERAL LEDGER
ACCOUNT: SUPPLIES
EXPENSE
DATE DEBITS CREDITS
5 1,000
TOTAL 1,000

GENERAL LEDGER
ACCOUNT: SERVICE
 INCOME
DATE DEBITS CREDITS
4 1,000
5 5,000
II.

GENERAL JOURNAL
Date Descriptions PR Debit Credit

1 Cash 50,000
Mary, Capital 50,000
To record the cash investment
of Mary.
2 Taxes and 1,200
Licenses Cash 1,200
To record the taxes and
licenses.
3 Office Equipment 5,000
Cash 5,000
To record the printer
acquired.

4 Utilities Expense 500

Utilities Payable 500
To record the electric bill
received.
5 Furniture and Fixtures 5,000
Accounts Payable 5,000
To record the chairs acquired
on account.
6 Cash 30,000
Professional income 30,000
To record the collection
for
audit services.
7 Accounts Receivable 10,000
Professional Income 10,000
To record the uncollected
income.
8 Transportation Expense 1,000
Cash 1,000
To record the incurred
transportation expense.

9 Accounts Payable 5,000

Cash 5,000
To record the payment for
chairs purchased on account.
10 Utilities Payable 500
Cash 500
To record the payment for
electric bill.
11 Mary, Drawing 2,000
Cash 2,000
To record the cash withdrawal
of Mary.

GENERAL LEDGER
ACCOUNT:
CASH
DATE DEBITS CREDITS
1 50,000
2 1,200
3 5,000
6 30,000
8 1,000
9 5,000
10 500
11 2,000
80,000 14,700
TOTAL 65,300

GENERAL LEDGER
ACCOUNT: ACCOUNTS
RECEIVABLE
DATE DEBITS CREDITS
7 10,000
TOTAL 10,000
 GENERAL LEDGER
ACCOUNT: OFFICE
EQUIPMENT
DATE DEBITS CREDITS
3 5,000
TOTAL 5,000
 GENERAL LEDGER
ACCOUNT: FURNITURE AND
FIXTURES
DATE DEBITS CREDITS
5 5,000
TOTAL 5,000

GENERAL LEDGER
ACCOUNT: ACCOUNTS
PAYABLE
DATE DEBITS CREDITS
5 5,000
9 5,000
5,000 5,000
TOTAL 0

GENERAL LEDGER
ACCOUNT: UTILITIES
PAYABLE
DATE DEBITS CREDITS
4 500
10 500
500 500
TOTAL 0

GENERAL LEDGER
ACCOUNT: MARY,
CAPITAL
DATE DEBITS CREDITS
1 50,000
TOTAL 50,000

GENERAL LEDGER
ACCOUNT: MARY,
DRAWING
DATE DEBITS CREDITS
11 2,000
 GENERAL LEDGER
ACCOUNT: UTILITIES
EXPENSE
DATE DEBITS CREDITS
4 500
TOTAL 500

GENERAL LEDGER
ACCOUNT: TRANSPORTATION
EXPENSE
DATE DEBITS CREDITS
8 1,000
TOTAL 1,000

GENERAL LEDGER
ACCOUNT: TAXES AND
LICENSES
DATE DEBITS CREDITS
2 1,200
TOTAL 1,200

GENERAL LEDGER
ACCOUNT: PROFESSIONAL
INCOME
DATE DEBITS CREDITS
6 30,000
7 10,000
TOTAL 40,000
Lesson 4
Assessment:
I.
GENERAL JOURNAL
Date Descriptions PR Debit Credit

Aug 1 Cash 150,000

Equipment 250,000
Furniture and Fixtures 30,000
Supplies 20,000
Monette, Capital 450,000
To record the investments of
Monette.
Aug 8 Cash 3,750
Accounts Receivable 3,750
Service Income 7,500
To record the laundry services
income.
Supplies Expense 750
Supplies 750
To record the used laundry
supplies.

Aug 10 Cash 4,500

Service Income 4,500
To record the laundry service
income.
Supplies Expense 500
Supplies 500
To record the used laundry
supplies.
Aug 15 Prepaid Rent 2,500
Cash 2,500
To record the rental paid for
the month.
Aug 20 Cash 300,000
Loan Payable 300,000
To record the received
proceeds of bank loan.
Aug 30 Cash 3,000
Accounts Receivable 3,000
To record the partial collection
from Aug 8 services.
Aug 31 Salaries Expense 5,000
Cash 5,000
To record the payment for the
salary of staff.
Aug 31 Monette, Drawing 500
Cash 500
To record the cash withdrawal
of Monette.

GENERAL LEDGER
ACCOUNT:
CASH
DATE DEBITS CREDITS
Aug 1 150,000
Aug 8 3,750
Aug 10 4,500
Aug 15 2,500
Aug 20 300,000
Aug 30 3,000
Aug 31 5,000
Aug 31 500
461,250 8,000
TOTAL 453,250

GENERAL LEDGER
ACCOUNT: ACCOUNTS
RECEIVABLE
DATE DEBITS CREDITS
Aug 8 3,750
Aug 30 3,000
TOTAL 750

GENERAL LEDGER
ACCOUNT:
EQUIPMENT
DATE DEBITS CREDITS
Aug 1 250,000
TOTAL 250,000

GENERAL LEDGER
ACCOUNT: FURNITURE AND
FIXTURES
DATE DEBITS CREDITS
Aug 1 30,000
TOTAL 30,000

GENERAL LEDGER
ACCOUNT:
SUPPLIES
DATE DEBITS CREDITS
Aug 1 20,000
Aug 8 750
Aug 10 500
20,000 1,250
TOTAL 18,750

GENERAL LEDGER
ACCOUNT: PREPAID
RENT
DATE DEBITS CREDITS
Aug 15 2,500
TOTAL 2,500

GENERAL LEDGER
ACCOUNT: LOAN
PAYABLE
DATE DEBITS CREDITS
Aug 20 300,000
TOTAL 300,000
 GENERAL LEDGER
ACCOUNT: MONETTE,
CAPITAL
DATE DEBITS CREDITS
Aug 1 450,000
TOTAL 450,000
 GENERAL LEDGER
ACCOUNT: MONETTE,
DRAWING
DATE DEBITS CREDITS
Aug 31 500
TOTAL 500

GENERAL LEDGER
ACCOUNT: SUPPLIES
EXPENSE
DATE DEBITS CREDITS
Aug 8 750
Aug 10 500
TOTAL 1,250

GENERAL LEDGER
ACCOUNT: SALARIES
EXPENSE
DATE DEBITS CREDITS
Aug 31 5,000
TOTAL 5,000

GENERAL LEDGER
ACCOUNT: SERVICE
INCOME
DATE DEBITS CREDITS
Aug 8 7,500
Aug 10 4,500
TOTAL 12,000
 MONETTE LAUNDRY
SHOP TRIAL
BALANCE AUGUST,
20XX

DEBIT CREDIT
Cash 453,250
Accounts Receivable 750
Equipment 250,000
Supplies 18,750
Furniture and Fixtures 30,000
Prepaid Rent 2,500
Loan Payable 300,000
Monette, Capital 450,000
Monette, Drawing 500
Supplies Expense 1,250
Salaries Expense 5,000
Service Income 12,000

TOTAL 762,000 762,000

 MODULE 3

LESSON 5
ASSESSMEN
T

GENERAL
JOURNAL
Date Account Name Debit Credit
8/2 Owner, Mons Dips invested P1,500,000 to the business.
8/2 Cash 1,500,000
Mons Dips, Capital 1,500,000
Note To record the investment of Mons Dips.
8/4 Bought merchandise on account from ABS Co., P795,000, 2/10, n/30.
8/4 Purchases 795,000
Accounts Payable 795,000
Note To record the purchase merchandise on account.
8/5 Bought office supplies for cash, P35,000.
8/5 Office Supplies 35,000
Cash 35,000
Note To record the bought office supplies.
8/6 Bought equipment for cash, P100,000.
8/6 Equipment 100,000
Cash 100,000
Note To record the bought equipment.
8/7 Sold merchandise on account, P760,000, term is 5/10.
8/7 Accounts 760,000
Receivable
Sales 760,000
Note To record the sold merchandise on account.
8/9 Paid P10000 freight on the sale on 8/7.
8/9 Freight Out 10,000
Cash 10,000
Note To record the payment of freight on the sale on 8/7.
8/10 Received credit from ABS Co. for merchandise returned due to improper size, P15,000.
8/10 Accounts Payable 15,000
Purchase Returns and 15,000
Allowances
Note To record the merchandise returned due to improper size.
8/11 Collected 8/7 transaction.
8/11 Cash 722,000
 Sales Discounts 38,000
(760,000 x 0.05)
Accounts Receivable 760,000
Note To record the collected 8/7 transaction.
8/12 Paid ABS Co. (P795,000, 2/10, n/30) Less P15,000 for merchandise retuned on 8/10 =
P780,000
8/12 Accounts Payable 780,000
Purchase Discounts 15,600 (780,000 x
0.02)
Cash 764,400
Note To record the payment of the merchandise on account before the 10th day (2/10),
discount is availed.
8/13 Bought merchandise for cash, P720,000.
8/13 Purchases 720,000
Cash 720,000
Note To record purchase merchandise.
8/15 Paid salaries P75,000.
8/15 Salaries Expense 75,000
Cash 75,000
Note To record paid salaries.
8/16 Received a refund of P25,000 for the goods purchased on 8/13.
8/16 Cash 25,000
Purchase Returns and 25,000
allowances
Note To record the refund for the goods purchased.
8/17 Borrowed money from Bank A-Z, P1,000,000.
8/17 Cash 1,000,000
Notes Payable 1,000,000
Note To record the money borrowed from bank A-Z.
8/18 Paid advertising expense, P20,000.
8/18 Advertising 20,000
Expense
Cash 20,000
Note To record the payment for advertising expense.
8/19 Bought goods from GHI Co. P710,000, 3/10, n/30.
8/19 Purchases 710,000
Accounts Payable 710,000
Note To record the goods bought.
8/21 Paid freight from the goods purchased on 8/19, P35,000.
8/21 Freight in 35,000
Cash 35,000
Note To record the payment for freight from the goods purchased.
8/21 Paid rent, P50,000.

8/21 Rent Expense 50,000

 Cash 50,000
Note To record the payment of rent.
8/21 Sold merchandise for P820,000.
8/21 Cash 820,000
Sales 820,000
Note To record the sales of merchandise.
8/22 Bought merchandise P600,000.
8/22 Purchases 600,000
Cash 600,000
Note To record the merchandise bought.
8/23 Paid GHI Co, P300,000. No discounts.
8/23 Accounts Payable 300,000
Cash 300,000
Note To record the payment to GHI.
8/24 Paid utilities expense, P35,000.
8/24 Utilities Expense 35,000
Cash 35,000
Note To record the payment of utilities expense.
8/25 Mons Dips withdrew P60,009.
8/25 Mons 60,009
Dips,
Drawing
Cash 60,009
Note To record the withdrawal of Mons Dips.
8/28 Made a refund to customers for damaged goods, P45,000.
8/28 Sales Returns and 45,000
Allowances
Cash 45,000
Note To record the discounts for sales.
8/29 Sold merchandise on account, P685,000, n/30.
8/29 Accounts 685,000
Receivable
Sales 685,000
Note To record the sales of merchandise on account.
8/31 Paid salaries for the staffs, P75,000.
8/31 Salaries Expense 75,000
Cash 75,000
Note To record the payment of salaries for the staffs.
 GENERAL LEDGER
ASSET ACCOUNTS
CASH
DATE DEBIT CREDIT RUNNING BALANCE
8/2 1,500,000 1,500,000
8/5 35,000 1,465,000
8/6 100,000 1,365,000
8/9 10,000 1,355,000
8/11 722,000 2,077,000
8/12 764,400 1,312,600
8/13 720,000 592,600
8/15 75,000 517,600
8/16 25,000 542,600
8/17 1,000,000 1,542,600
8/18 20,000 1,522,600
8/21 35,000 1,487,600
8/21 50,000 1,437,600
8/21 820,000 2,257,600
8/22 600,000 1,657,600
8/23 300,000 1,357,600
8/24 35,000 1,322,600
8/25 60,009 1,262,591
8/28 45,000 1,217,591
8/31 75,000 1,142,591

ACCOUNTS RECEIVABLE
DATE DEBIT CREDIT RUNNING BALANCE
8/7 760,000 760,000
8/11 760,000 0
8/29 685,000 685,000

OFFICE SUPPLIES
DATE DEBIT CREDIT RUNNING BALANCE
8/5 35,000 35,000

EQUIPMENT
DATE DEBIT CREDIT RUNNING BALANCE
8/6 100,000 100,000
 LIABILITIES
ACCOUNTS

ACCOUNTS PAYABLE
DATE DEBIT CREDIT RUNNING BALANCE
8/4 795,000 795,000
8/10 15,000 780,000
8/12 780,000 0
8/19 710,000 710,000
8/23 300,000 410,000

NOTES PAYABLE
DATE DEBIT CREDIT RUNNING BALANCE
8/17 1,000,000 1,000,000

OWNER’S EQUITY

MONS DIPS, CAPITAL

DATE DEBIT CREDIT RUNNING BALANCE
8/2 1,500,000 1,500,000

MONS DIPS, DRAWING

DATE DEBIT CREDIT RUNNING BALANCE
8/25 60,009 60,009
 INCOME

SALES
DATE DEBIT CREDIT RUNNING BALANCE
8/7 760,000 760,000
8/21 820,000 1,580,000
8/29 685,000 2,265,000

SALES RETURNS AND ALLOWANCES

DATE DEBIT CREDIT RUNNING BALANCE
8/28 45,000 45,000

SALES DISCOUNTS
DATE DEBIT CREDIT RUNNING BALANCE
8/11 38,000 38,000

EXPENSE
ACCOUNT

FREIGHT OUT
DATE DEBIT CREDIT RUNNING BALANCE
8/9 10,000 10,000

FREIGHT IN
DATE DEBIT CREDIT RUNNING BALANCE
8/21 35,000 35,000

SALARIES EXPENSE
DATE DEBIT CREDIT RUNNING BALANCE
8/15 75,000 75,000
8/31 75,000 150,000
 ADVERTISING EXPENSE
DATE DEBIT CREDIT RUNNING BALANCE
8/18 20,000 20,000

UTILITIES EXPENSE
DATE DEBIT CREDIT RUNNING BALANCE
8/24 35,000 35,000

RENT EXPENSE
DATE DEBIT CREDIT RUNNING BALANCE
8/21 50,000 50,000

PURCHASES
DATE DEBIT CREDIT RUNNING BALANCE
8/4 795,000 795,000
8/13 720,000 1,515,000
8/19 710,000 2,225,000
8/22 600,000 2,825,000

CONTRA EXPENSE ACCOUNTS

PURCHASE DISCOUNTS
DATE DEBIT CREDIT RUNNING BALANCE
8/12 15,600 15,600

PURCHASE RETURNS AND ALLOWANCES

DATE DEBIT CREDIT RUNNING BALANCE
8/10 15,000 15,000
8/16 25,000 40,000
 MONS DIPS
TRIAL
BALANCE
AUGUST,
20XX
ACCOUNT DEBIT CREDIT
Cash 1,142,591
Accounts Receivable 685,000
Office Supplies 35,000
Equipment 100,000
Accounts Payable 410,000
Notes Payable 1,000,000
Mons Dips, Capital 1,500,000
Mons Dips, Drawing 60,009
Sales 2,265,000
Sales Returns and Allowance 45,000
Sales Discounts 38,000
Purchases 2,825,000
Purchase Returns and 40,000
Allowances
Purchase Discounts 15,600
Freight Out 10,000
Salaries Expense 150,000
Advertising Expense 20,000
Utilities Expense 35,000
Rent Expense 50,000
Freight In 35,000
TOTAL 5,230,600 5,230,600
LESSON 6
ACTIVITIES/EXERCISES

MONS DIPS
STATEMENT OF FINANCIAL POSITION
FOR THE MONTH ENDED AUGUST, 20XX
Debit Credit
ASSETS
Current Assets
Cash 1,142,591
Accounts Receivable 685,000
Office Supplies 35,000
Total Current Assets 1,862,591
Non-Current Assets
Property Plant and Equipment 100,000
Total Non-Current Assets 100,000
TOTAL ASSETS 1,962,591

LIABILITIES
Current Liabilities
Accounts Payable 410,000
Non-Current Liabilities
Notes Payable 1,000,000
TOTAL LIABILITIES 1,410,000

OWNER’S EQUITY
Capital Ending 552,591

TOTAL LIABILITIES AND OWNER’S 1,962,591

EQUITY
 MONS DIPS
STATEMENT OF FINANCIAL
PERFORMANCE FOR THE MONTH
ENDED AUGUST, 20XX
SALES 2,265,000
LESS: SALES DISCOUNTS 38,000
SALES RETURNS AND 45,000 (83,000)
ALLOWANCES
NET SALES 2,182,000
LESS: COST OF GOODS SOLD (2,804,400) (2,804,400)

GROSS PROFIT (622,400)

LESS: OPERATING EXPENSES

FREIGHT OUT 10,000
SALARIES EXPENSE 150,000

ADVERTISING EXPENSE 20,000

RENT EXPENSE 50,000
UTILITIES EXPENSE 35,000
TOTAL OPERATING EXPENSE 265,000 (265,000)

NET INCOME(LOSS) (887,400)

MONS DIPS
STATEMENT OF CHANGES IN
EQUITY
FOR THE MONTH ENDED AUGUST, 20XX
CAPITAL BEGINNING 0
ADD:
INVESTMENTS 1,500,000
NET INCOME (LOSS) (887,400)
LESS:
MONS DIPS, DRAWING (60,009) (60,009)
CAPITAL ENDING 552,591
 MONS DIPS

STATEMENT OF COST OF GOODS

SOLD FOR THE MONTH ENDED
AUGUST, 20XX
PURCHASES 2,825,000
LESS: PURCHASE DISCOUNTS 15,600
PURCHASE RETURNS AND 40,000
ALLOWANCES (55,600)
NET PURCHASES 2,769,400
ADD: FREIGHT IN 35,000

TOTAL GOODS AVAILABLE FOR 2,804,400

SALE
COST OF GOODS SOLD 2,804,400

MONS DIPS
STATEMENT OF CASH
FLOWS
FOR THE MONTH ENDED AUGUST, 20XX
CASH FLOWS FROM OPERATING
ACTIVITIES
CASH RECEIVED FROM:
COLLECTION OF RECEIVABLES 722,000
REFUND FROM PURCHASES 25,000
CASH SALES 820,000
TOTAL CASH RECEIPTS 1,567,000
CASH PAYMENTS:
PURCHASE OF SUPPLIES 35,000
FREIGHT OUT 10,000
PURCHASE OF MERCHANDISE 2,374,400
OPERATING EXPENSES 265,000
FREIGHT IN 35,000
REFUND TO CUSTOMERS 45,000
TOTAL CASH PAYMENTS (2,764,400)
 NET CASH FLOWS FROM (1,197,400)
OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING
ACTIVITIES
PURCHASE OF EQUIPMENT 100,000
TOTAL CASH FLOWS FROM (100,000)
INVESTING
ACTIVITIES
CASH FLOWS FROM FINANCING
ACTIVITIES
INITIAL INVESTMENT 1,500,000
BORROWING 1,000,000
WITHDRAWALS (60,009)
TOTAL CASH FLOWS FROM 2,439,991
FINANCING
ACTIVITIES
NET INCREASE IN CASH
CASH BEGINNING BALANCE 0
CASH ENDING BALANCE 1,142,591