Journalizing Merchandising Transactions Under Periodic Inventory System

Date Particulars F Debit Credit

March 1 Cash in Bank 300,000.00
Furniture and Fixtures 150,000.00
Ayuban, Capital 450,000.00
Owner's Initial Investment

2 Business Permits Expense 2,400.00

Cash in Bank 2,400.00
Payment of Business Permit

4 Office Equipment 250,000.00

Notes Payabe 250,000.00
Purchased Equipment on account

5 Store Supplies 15,000.00

Cash in Bank 15,000.00
Purchased Supplies

8 Merchandise Inventory 75,000.00

Cash in Bank 75,000.00
Purchased Merchandise

10 Cash in Bank 10,000.00

Sales 10,000.00
Sold a Merchandise

11 Merchandise Inventory 25,000.00

Accounts Payable 25,000.00
Purchased Merchandise on account

15 Accounts Receivable 15,000.00

Sales 15,000.00
Sold a Merchandise on account

17 Merchandise Inventory 60,000.00

Cash in Bank 60,000.00
Purchased Merchandise

Freight-in 1,000.00
Cash in Bank 1,000.00
Payment of freight

19 Cash in Bank 20,000.00

 Sales 20,000.00
Sold a Merchandise

Freight-out 1,500.00
Cash in Bank 1,500.00
Payment of freight

20 Accounts Payable 25,000.00

Purchase discounts 500.00
Cash in Bank 24,500.00
Payment with a Discount

23 Rent Expense 10,000.00

Cash in Bank 10,000.00
Payment of Rent

24 Cash in Bank 14,550.00

Sales Discount 450.00
Accounts Receivable 15,000.00

26 Merchandise Inventory 15,000.00

Accounts Payable 15,000.00
Purchased Merchandise

Freight-in 800.00
Cash in Bank 800.00
Payment of freight

27 Merchandise Inventory 19,000.00

Accounts Payable 19,000.00
Purchased Merchandise on account

28 Cash in Bank 7,840.00

Sales 7,840.00
Sold a Merchandise

29 Utilities Expense 4,000.00

Cash in Bank 4,000.00
Payment of utility

Advertising Expense 2,500.00

Cash in Bank 2,500.00
Payment of Advertisement

30 Accounts Receivable 28,500.00

 Sales 28,500.00
Sold a Merchandise on account

31 Salaries Expense 20,000.00

Cash in Bank 20,000.00
Payment of Salary
Journalizing transactions Under Periodic and Perpetual Inventory System

Transaction Periodic
1 Purchased on account, P100,000 Purchases 100,000.00
Accounts Payable
Paid Freight on Purchases, P700 Freight-in 700.00
Cash
2 Purchase returns, P5,000 Accounts Payable 5,000.00
Purchase Returns
3 Sold on account, P80,000 Accounts Receivable 80,000.00
Sales

4 Returned Merchandise costing P2,000. Sold for Sales Returns 2,000.00

P3,500, was not replaced. Accounts Receivable

5
 Perpetual
Merchandise Inventor 100,000.00
100,000.00 Accounts Payable 100,000.00
Merchandise Inventor 700.00
700.00 Cash 700.00
Accounts Payable 5,000.00
5,000.00 Merchandise Inventory 5,000.00
Accounts Receivable 80,000.00
80,000.00 Sales 80,000.00
Cost of good sold 60,000.00
Merchandise Inventory 60,000.00
Sales Returns 2,000.00
2,000.00 Accounts Receivable 2,000.00
Merchandise Inventor 3,500.00
Cost of good sold 3,500.00
Comparison of Journal Entries
Non-Vat Registered VAT Registered
1 Merchandise Inventory 15000 Merchandise Inventor 15000
Accounts Payable 15000 Input Tax 1800
Accounts Payable 16800
2 Cash 20000 Cash 22400
Sales 20000 Sales 20000
Output Tax 2400
3 Merchandise Inventory 60000 Merchandise Inventor 60000
Cash 60000 Input Tax 7200
Cash 67200
4 Accounts Receivable 75000 Accounts Receivable 84000
Sales 75000 Sales 75000
Output Tax 9000
5 Accounts Payable 15000 Accounts Payable 16800
Cash 15000 Cash 15000
Input Tax 1800
6 Cash 75000 Cash 84000
Accounts Receivable 75000 Accounts Receivable 75000
Output Tax 9000
7 Freight-in 5000 Freight-in 5000
Cash 5000 Input Tax 600
Cash 5600
8 Freight-out 5000 Freight-out 5600
Cash 5000 Cash 500
Output Tax 600
9 Merchandise Inventory
Cash
Purchase Discount
Computation VAT Input and Output

Journal Entry

Purchases 710000
Input VAT 85200
Cash 795200

Cash 5600
Purchase Returns and Allowances 5000
Input VAT 600