FABM- 1

Name: ______________________________________ Date: ____________________

Grade: ______________________________________ Section: ___________________

Quarter: IV Week: 5 MELC(s): Posting and Preparation of Trial Balance

MELC Code: ABM_FABM11- 1Ve-j37-38

⮚ Title of Textbook/LM to Study: Fundamentals of ABM1 for SHS

⮚ Topic: Posting & Preparing Trial Balance Re: Merchandising Business

⮚ Objective: Post Journal Entries to Ledger and Prepare Trial Balance.

Let Us Discover

Below are sample Journal Entries taken from the General Journal. From these
entries, we will try to Post this to our General Ledger. In our previous discussion, you
were taught about the template of a General Ledger where posting is to be made.

GENERAL JOURNAL
XYZ COMPANY

Date Particulars Folio Debit Credit

Jan1 Cash in bank 850,000
Merchandise Inventory 250,000
Transportation Equipment 1,800,000
Y Gutierrez, Capital 2,900,000
# Investment of Y. Gutierrez

Jan 2 Purchases 150,000

Freight In 2,500
Cash In Bank 152,500
#Purchase of merchandise and payment of
freight
Jan3 Cash in Bank 3,000.
Purchase returns and allowances 3,000.
#returned of merchandise purchase

Jan5 Cash in bank 116,400

Sales 116,400
#Sale of merchandise with discount
Jan5 Freight out 3,500
Cash in bank 3,500.
#freight on merchandise sold

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Jan7 Purchases 50,000
Accounts Payable-S. Madelo 50,000
Company

Jan8 Accounts Receivable- F. Ybanez Trading 185,000

Sales 185,000
#merchandise sold on account

Freight Out 1,200

Cash 1,200
#payment of freight

Step 2 Posting ASSETS

CASH IN BANK
Date Particulars Foli Debit Date Particulars Folio Credit Balance
o
Jan 1 Initial investment
of Y Gutierrez P P850,000
850,000
Jan 2 Purchase of
merchandise P 697,500
for cash 152,500
Jan 3 Returned of
merchandise 3,000 700,500
purchased
Jan 5 Sale of 116,400 816,900
merchandise
Jan 5 Payment of 3,500
freight 813,400
Jan 8 Payment of
Freight 1,200 812,200

Account Receivable
Date Particulars Foli Debit Date Particulars Folio Credit Balance
o
Jan 8 Sales on Account P 185,000 P185,000

Merchandise Inventory
Date Particulars Foli Debit Date Particulars Folio Credit Balance
o
Jan 1 Initial investment P 250,000 P250,000

Transportation Equipment
Date Particulars Foli Debit Date Particulars Folio Credit Balance
o
Jan 1 Initial investment P1,800,000 P1,800,000

LIABILITIES

Accounts Payable
Date Particulars Foli Debit Date Particulars Folio Credit Balance
o
Jan 7 Jan7 Purchase on
Account-S P50,000 P 50,000
Madelo
Company

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 CAPITAL

Y. Gutierrez, Capital
Date Particulars Foli Debit Date Particulars Folio Credit Balance
o
Jan 1 Jan Initial
investment of P2,900,00 P2,900,00
Y Gutierrez 0
INCOME/ REVENUE

SALES
Date Particulars Foli Debit Date Particulars Folio Credit Balance
o
Jan5 Cash sales 116,400
Jan8 Sales on
account 185,00 P 301,400

COST

PURCHASES
Date Particulars Foli Debit Date Particulars Folio Credit Balance
o
J an2 CASH
PURCHASE 150,000
Jan7 Purchase on
account 50,000 200,000

FREIGHT IN
Date Particulars Foli Debit Date Particulars Folio Credit Balance
o
J an2 Freight on cash
purchase 2,500 2,500
PURCHASE RETURNS AND ALLOWANCE
Date Particulars Foli Debit Date Particulars Folio Credit Balance
o
JAN3 3,000 3,000
EXPENSES

FREIGHT OUT
Date Particulars Foli Debit Date Particulars Folio Credit Balance
o
JAN5 Freight on Jan5
sales 3,500
Jan8 Freight on jan8
sales 1,200 4,700

Step 3 – Trial Balance

XYZ
Trial Balance
January 8, XXXX
Account Title Debit Credit
ASSETS
Cash in Bank 812,200
Accounts Receivable 185,000
Merchandise Inventory 250,000
Transportation Equipment 1,800,000
LIABILITIES
Accounts Payable 50,000

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 CAPITAL
Y Gutierrez, capital 2,900,000
REVENUE
Sales 301,400
COST
Purchases 200,000
Freight In 2,500
Purchase returns and allowances 3,000
EXPENSES
Freight Out 4,700
Total P 3,254,400 P 3,254,400

Let Us Try

Directions: Read the statements carefully. Record the following business transactions in
The General Journal. Post and Prepare a Trial Balance

1. January 1- Ms. Gutierrez invested the following:

a) Bank deposit with Banco de Oro, P850,000
b) Merchandise with net realizable value of P250,000;
c) Transportation Equipment with fair market value of P1,800,000.

2. January 2- Purchased merchandise in cash from Rowena Tuyor Trading costing

P150,000 and paid freight and handling, P2,500.

3. January 3 -.Returned P3,000 cost of merchandise to Rowena Tuyor Trading due

to some defects and no replacements have been made.

4. January 5- Sold merchandise for cash, P120,000 to R. Guiang Grocery ang gave
a 3% trade discount and paid freight on shipment, P3,500.

5. January 7- Purchase merchandise on account from S. Madelo, P50,000. Term

3/10, n/30.

6. January 8 – Sold merchandise on account to F. Ybanez Trading, P185,000 Term

2/10, n/30. Paid freight on shipment, P1,200.

Let Us Do

Directions: Journalize the following business transactions. Follow the same format as
shown above. Post and prepare a Trial Balance

7. January 9 – Purchased merchandise on account from E. Sardido Company

Costing P230,000. Term 2/10 EOM.

8. January 10 – Received P4,000 worth of merchandise from F. Ybanez Trading for

Not conforming with the order and was not replaced.

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 9. January 12 – Paid the account with S. Madelo Company, P48,500 after availing of
The 3% purchase discount.

10. January 13 – Sold merchandise on account to R. Langbid Company, P80,000.

Term 2/10, n/30

11. January 15 – Purchased merchandise on account from M. Cervantes C., P70,000

Term 3/10, n/30

12. January 18 – Returned P1,500 cost of merchandise to M. Cervantes Company

due
Bad order and was not replaced.

13 January 18 – Collected in full the account of F. Ybanez Trading, P177,380.

Let Us Apply

Directions: Journalize the following business transactions. Follow the same template as above. Take note th
T

14. January 20 – Sold merchandise for cash, P50,000 to R. Valle Enterprises and
Gave a 1% trade discount.

15. January 22 – Received P500 worth of merchandise from R. Valle Enterprise as

Item breakage and was not replaced due to out of stock.

16. January 23 – Collected from R. Langbid Company the amount of P78,400 net of
Discount on January 13 sales on account.

17. January 26 – Sold merchandise on account to K. Peras Commercial, P420,000

Term 3/10, EOM.

18. January 28 – Paid the following expenses as follows;

Salaries for the month P 15,000
Light and water bill (utilities expense) 5,800
Taxes and Licenses 6,500
Rent Expense 10,000
Total P 37,300

19. January 30 – Withdrew P20,000 for personal use of Ms. Gutierrez.

20. January 31 – Sold merchandise on account to J. Mascarinas Company P35,000

Term 2/10, n/30

end

References
GSC-CID-LRMS-ESSLM, v.r. 02.00, Effective April 21, 2021
⮚ Fundamentals of Accountancy Business and Management1 by Rafael M. Lopez, Jr.

⮚ MELC Code: ABM_FABM11- 1Ve-j36-37

GSC-CID-LRMS-ESSLM, v.r. 02.00, Effective April 21, 2021