CHART OF ACCOUNTS

General Ledger General Ledger

Page No. Page No.

ASSETS Income
Current Assets 16 Sales
1 Cash in Bank
2 Accounts Receivable
3 Subscription Receivable Cost
4 Receivable from Highest Bidder 17 Purchases
5 Merchandise Inventory
6 Input Tax

LIABILITIES EXPENSES
Current Liabilities 18 Organization Expense
7 Accounts Payable 19 Taxes and Licenses
8 Output Tax 20 Salaries and Wages
9 VAT Payable 21 Rent Expense
10 Cash Dividend Payable 22 Store Supplies Used
23 Utilities Expense
SHAREHOLDER'S EQUITY
11 Ordinary Share Capital
12 Subscribed Ordinary Share
13 Share Premium
14 Income and expense Summary
15 Accumulated Profits and Losses
 DAVAO MERCHANDISING, INCORPORATED
GENERAL JOURNAL

Date Suppliers F Dr.

Jan-05 20A Subscription Receivable ₱ 1,250,000.00

Subscribed Ordinary Shares
To record subscription of six incorporators

May-17 20A Subscribed Ordinary Shares ₱ 825,000.00

Ordinary Share Capital
To record issuance of stock certificates to Un,
Leon and Obeso

Jun-10 20A Subscription Receivable ₱ 18,000.00

Subscribed Ordinary Shares
Share Premium
To record subscription of Pedrosa

Aug-31 20A Receivable from Highest Bidder ₱ 8,000.00

Subscription Receivable
To close the subscription of Pedrosa

Sep-17 20A Subscribed Ordinary Shares ₱ 15,000.00

Ordinary Share Capital
To record issuance of stock certificates to
Pedrosa and Beceira

Nov-14 20A Store Supplies Expense ₱ 37,000.00

Accounts Payable
Purchase of various store supplies on
account

Dec-15 20A Subscription Receivable ₱ 5,500.00

Subscribed Ordinary Shares
Share Premium
To record subscription of Selisana

Dec-31 20A Output Tax ₱ 1,310,610.00

Input Tax
VAT Payable
To record the VAT payable on Jan. 20 20B

Dec-31 20A Sales ₱ 10,921,750.00

Income Summary
To close sales account.

Dec-31 20A Merchandise Inventory-end ₱ 2,105,000.00

 Income Summary

Dec-31 20A Income Summary ₱ 1,487,000.00

Organization Expense
Taxes and License
Salaries and Wages
Rent Expense
Store Supplies Expense
Utilities Expense
To close the expense account

Dec-27 20A Accumulated Loss ₱ 84,000.00

Dividends Payable
To record declaration of 10% cash dividend
 Dr. Cr.

₱ 1,250,000.00
₱ 1,250,000.00

₱ 825,000.00
₱ 825,000.00

₱ 18,000.00
₱ 15,000.00
₱ 3,000.00

₱ 8,000.00
₱ 8,000.00

₱ 15,000.00
₱ 15,000.00

₱ 37,000.00
₱ 37,000.00

₱ 5,500.00
₱ 5,000.00
₱ 500.00

₱ 1,310,610.00
₱ 1,154,738.00
₱ 155,874.00

₱ 10,921,750.00
₱ 10,921,750.00

₱ 2,105,000.00
 ₱ 2,105,000.00

₱ 1,487,000.00
₱ 35,200.00
₱ 24,300.00
₱ 480,500.00
₱ 600,000.00
₱ 37,000.00
₱ 310,000.00

₱ 84,000.00
₱ 84,000.00
 Cash in Bank
Date Particulars F Debit Date
Dec-31 20A ₱ 9,218,495.00
Dec-31
₱ 9,218,495.00
₱ 187,295.00

Accounts Receivable
Date Particulars F Debit Date
Dec-31 20A ₱ 6,470,240.00
Dec-31
₱ 6,470,240.00
₱ 3,970,240.00

Subscription Receivable
Date Particulars F Debit Date
Jan-05 20A ₱ 1,250,000.00
Jun-10 20A ₱ 18,000.00
Aug-31
Dec-15 20A ₱ 5,500.00
Dec-31
₱ 1,273,500.00
₱ 320,125.00
 Receivable from Highest Bidder
Date Particulars F Debit Date
Aug-31 20A ₱ 11,000.00
Dec-31

Merchandise Inventory
Date Particulars F Debit Date
Dec-31 20A Merchandise inventory at year-end ₱ 2,105,000.00

Input Tax
Date Particulars F Debit Date
Dec-31 20A ₱ 886,536.00
Dec-31 20A ₱ 268,200.00
₱ 1,154,736.00
 Accounts Payable
Date Particulars F Debit Date
Nov-14
Dec-31
Dec-31 20A ₱ 5,075,000.00
₱ 5,075,000.00

Output Tax
Date Particulars F Debit Date
Dec-31
Dec-31

VAT Payable
Date Particulars F Debit Date
Dec-31 20A Input Tax at year-end ₱ 1,154,736.00
Dec-31
 Cash Dividends Payable
Date Particulars F Debit Date
Dec-27

Ordinary Share Capital

Date Particulars F Debit Date
May-17
Sep-17
 Subscribed Ordinary Shares
Date Particulars F Debit Date
Jan-05
May-17 20A ₱ 825,000.00
Jun-10
Sep-17 20A ₱ 15,000.00
Dec-15
₱ 840,000.00

Share Premium
Date Particulars F Debit Date
Jun-10
Dec-15

Income and Expense Summary

Date Particulars F Debit Date
 Accumulated Profits and Losses
Date Particulars F Debit Date
Dec-27 20A Declaration of a 10% cash dividend ₱ 84,000.00

Sales
Date Particulars F Debit Date
Dec-31
Dec-31

Purchases
Date Particulars F Debit Date
Dec-31 20A ₱ 7,387,800.00
Dec-31 20A ₱ 2,235,000.00
₱ 9,622,800.00
 Organization Expense
Date Particulars F Debit Date
Jan-05 20A ₱ 35,200.00

Taxes and Licenses

Date Particulars F Debit Date
Jan-20 20A ₱ 24,300.00

Salaraies and Wages

Date Particulars F Debit Date
Dec-15 20A ₱ 480,500.00
 Rent Expense
Date Particulars F Debit Date
Dec-15 20A ₱ 600,000.00

Store Supplies Expense

Date Particulars F Debit Date
Nov-14 20A ₱ 37,000.00

Utilities Expense
Date Particulars F Debit Date
Dec-15 20A ₱ 310,000.00
 Page1
Date Particulars F Credit

20A ₱ 9,031,200.00
₱ 9,031,200.00

Page2
Date Particulars F Credit

20A ₱ 2,500,000.00
₱ 2,500,000.00

Page3
Date Particulars F Credit

20A ₱ 8,000.00

20A ₱ 945,375.00
₱ 953,375.00
 Page4
Date Particulars F Credit

20A ₱ 11,000.00

Page5
Date Particulars F Credit

Page6
Date Particulars F Credit
 Page7
Date Particulars F Credit
20A ₱ 37,000.00
20A ₱ 8,274,336.00

₱ 8,311,336.00
₱ 3,236,336.00

Page8
Date Particulars F Credit
20A ₱ 693,240.00
20A ₱ 617,370.00
₱ 1,310,610.00

Page9
Date Particulars F Credit

20A Output Tax at year-end ₱ 1,310,610.00

₱ 155,874.00
 Page10
Date Particulars F Credit
20A ₱ 84,000.00

Page11
Date Particulars F Credit
20A ₱ 825,000.00
20A ₱ 15,000.00
₱ 840,000.00
 Page12
Date Particulars F Credit
20A ₱ 1,250,000.00

20A ₱ 15,000.00

20A ₱ 5,000.00
₱ 1,270,000.00
₱ 430,000.00

Page13
Date Particulars F Credit
20A ₱ 3,000.00
20A ₱ 500.00
₱ 3,500.00

Page14
Date Particulars F Credit
 Page15
Date Particulars F Credit

Page16
Date Particulars F Credit
20A ₱ 5,777,000.00
20A ₱ 5,144,750.00
₱ 10,921,750.00

Page17
Date Particulars F Credit
 Page18
Date Particulars F Credit

Page19
Date Particulars F Credit

Page20
Date Particulars F Credit
 Page21
Date Particulars F Credit

Page22
Date Particulars F Credit

Page23
Date Particulars F Credit
 DAVAO MERCHANDISING INCORPORATED
SALES JOURNAL

Charge Sales
Date Customers Invoice No. Term

Sep-20 20A Iligan Supermarket (c/o Gwen Hollanes) 001

Nov-27 20A Oro Superstore (c/o Cecil Laguna) 002
 Accounts Sales VAT
Receivable Output Tax
Dr. Cr. Cr.
₱ 3,242,400.00 ₱ 2,895,000.00 ₱ 347,400.00
₱ 3,227,840.00 ₱ 2,882,000.00 ₱ 345,840.00
₱ 5,777,000.00 ₱ 693,240.00
₱ 6,470,240.00 ₱ 6,470,240.00
F-3
 DAVAO MERCHANDISING INCORPORATED
PURCHASE JOURNAL

Charge Sales Accounts

Date Customers Invoice No. Term Payable
Cr.
Jan-10 20A Universal Textile Corporation 0421 ₱ 2,446,976.00
Sep-05 20A Manila Textile, Incorporated 0083 ₱ 5,827,360.00

₱ 8,274,336.00
 Accounts VAT
Purchases
Payable Input Tax
Cr. Dr. Dr.
₱ 2,446,976.00 ₱ 2,184,800.00 ₱ 262,176.00
₱ 5,827,360.00 ₱ 5,203,000.00 ₱ 624,360.00
₱ 7,387,800.00 ₱ 886,536.00
₱ 8,274,336.00 ₱ 8,274,336.00
F-4
 DAVAO MERCHANDISING INCORPORATED
CASH RECEIPTS JOURNAL

C.R. / Cash Cash in Bank

Date Payor Sales Invoice
No. Dr.
Jan-05 20A Luz On CR 0001 ₱ 100,000.00
Jan-05 20A Kareen Leon CR 0002 ₱ 62,500.00
Jan-05 20A Rosalina Besario CR 0003 ₱ 43,750.00
Jan-05 20A Cristina Obeso CR 0004 ₱ 43,750.00
Jan-05 20A Virginia Ruben CR 0005 ₱ 37,500.00
Jan-05 20A Janet Matuguinas CR 0006 ₱ 25,000.00
May-17 20A Luz On CR 0007 ₱ 300,000.00
May-17 20A Kareen Leon CR 0008 ₱ 187,500.00
May-17 20A Cristina Obeso CR 0009 ₱ 131,250.00
Jun-10 20A Mae Alma Pedrosa CR 0010 ₱ 10,000.00
Jun-15 20A Gensan Commercial CS 001 ₱ 2,890,048.00
Sep-17 20A Rosanna Beceira CR 0011 ₱ 11,000.00
Oct-11 20A Iligan Supermarket CR 0012 ₱ 2,500,000.00
Dec-10 20A Tagbilaran Trading CS 002 ₱ 2,872,072.00
Dec-15 20A Jessica Selisana CR 0013 ₱ 4,125.00

₱ 9,218,495.00
 Accounts Subscription Receivable from VAT
Receivable Sales Receivable Highest Bidder Output Tax
Cr. Cr. Cr. Cr. Cr.
₱ 100,000.00
₱ 62,500.00
₱ 43,750.00
₱ 43,750.00
₱ 37,500.00
₱ 25,000.00
₱ 300,000.00
₱ 187,500.00
₱ 131,250.00
₱ 10,000.00
₱ 2,580,400.00 ₱ 309,648.00
₱ 11,000.00
₱ 2,500,000.00
₱ 2,564,350.00 ₱ 307,722.00
₱ 4,125.00
₱ 2,500,000.00 ₱ 5,144,750.00 ₱ 945,375.00 ₱ 11,000.00 ₱ 617,370.00
₱ 9,218,495.00
F-5
 DAVAO MERCHANDISING INCORPORATED
CASH DISBURSEMENTS JOURNAL

Date Payee Explanation

Jan-05 20A Robinson Berhay Payment for various expenses

Jan-20 20A Davao City Treasurer Payment for taxes and licenses
May-10 20A Universal Textile Corporation Partial payment for assorted merchandise
Sep-05 20A Robinson Berhay Payment of advertisement expenses
Nov-07 20A Manila Textile, Incorporated Cash purchase of assorted merchandise
Dec-10 20A Manila Textile, Incorporated Partial payment of account
Dec-15 20A Robinson Berhay Payment of salaries and wages
Dec-15 20A A. Salazar Realty, Inc. Payment of rent
Dec-15 20A Davao Light and Power Corporation Payment of utilities
 Explanation Check No. Check Voucher No. Cash in Bank
Cr.
Payment for various expenses 91751 1 ₱ 35,200.00
Payment for taxes and licenses 91752 2 ₱ 24,300.00
Partial payment for assorted merchandise 91753 3 ₱ 1,200,000.00
Payment of advertisement expenses 91754 4 ₱ 3,000.00
Cash purchase of assorted merchandise 91755 5 ₱ 2,503,200.00
Partial payment of account 91756 6 ₱ 3,875,000.00
Payment of salaries and wages 91757 7 ₱ 480,500.00
Payment of rent 91758 8 ₱ 600,000.00
Payment of utilities 91759 9 ₱ 310,000.00

₱ 9,031,200.00
 VAT
Accounts Payable Purchases Input Tax Sundries Accounts
Dr. Dr.
Organization Expenses
Taxes and Licenses
₱ 1,200,000.00
Receivable from Highest Bidder
₱ 2,235,000.00 ₱ 268,200.00
₱ 3,875,000.00
Salaries and Wages
Rent Expense
Utilities Expense
₱ 5,075,000.00 ₱ 2,235,000.00 ₱ 268,200.00
₱

F-6
 Amount
Debit Credit
₱ 35,200.00
₱ 24,300.00

₱ 3,000.00

₱ 480,500.00
₱ 600,000.00
₱ 310,000.00
₱ 1,453,000.00
9,031,200.00
SUBSCRIBER'S LEDGER

Name: Besario, Rosalina

Address: 158 Sanciangko St., Cebu City
STOCK SUBSCRIBED STOCK PAYMEN
Date No. of Shares No. of Installments Value Date
Jan-01 20A 1,750 1 ₱ 175,000.00 Jan-05 20A

Name: Leon, Kareen

Address: 43 Kennon Rd., Baguio City
STOCK SUBSCRIBED STOCK PAYMEN
Date No. of Shares No. of Installments Value Date
Jan-05 20A 2,500 2 ₱ 250,000.00 Jan-05 20A
May-17 20A

Name: Matuguinas, Janet

Address: 453 Sobrecarey St., Tagum City
STOCK SUBSCRIBED STOCK PAYMEN
Date No. of Shares No. of Installments Value Date
Jan-05 20A 1,000 1 ₱ 100,000.00 Jan-05 20A

Name: Obeso, Cristina

Address: Tambler, General Santos City
STOCK SUBSCRIBED STOCK PAYMEN
Date No. of Shares No. of Installments Value Date
5-Jan 20A 1,750 2 ₱ 175,000.00 Jan-05 20A
May-17 20A

Name: Pedrosa, Mae Alma

Address: Notre Dame Ave., Cotabato City
STOCK SUBSCRIBED STOCK PAYMEN
Date No. of Shares No. of Installments Value Date
Jun-10 20A 150 1 ₱ 18,000.00 Jun-10 20A
Aug-31 20A 66.67 ₱ (8,000.00)

Name: Ruben, Virginia

Address: Rizal Street, Pagadian City
STOCK SUBSCRIBED STOCK PAYMEN
Date No. of Shares No. of Installments Value Date
Jan-05 20A 1,500 1 ₱ 150,000.00 Jan-05 20A

Name: Selisana, Jessica

Address: Mambaling, Cebu City
STOCK SUBSCRIBED STOCK PAYMEN
Date No. of Shares No. of Installments Value Date
Dec-15 20A 50 ₱ 5,500.00 Dec-15 20A

Name: Un, Luz

Address: 342 Rizal Street, Malaybalay City
STOCK SUBSCRIBED STOCK PAYMEN
Date No. of Shares No. of Installments Value Date
Jan-05 20A 4,000 2 ₱ 400,000.00 Jan-05 20A
May-17 20A
 STOCK PAYMENTS
No. of Shares No. of Installments Amount Paid
437.5 1 ₱ 43,750.00

STOCK PAYMENTS
No. of Shares No. of Installments Amount Paid
625 1 ₱ 62,500.00
1,875 2 ₱ 187,500.00

STOCK PAYMENTS
No. of Shares No. of Installments Amount Paid
250 1 ₱ 25,000.00
 STOCK PAYMENTS
No. of Shares No. of Installments Amount Paid
437.5 1 ₱ 43,750.00
1312.5 2 ₱ 131,250.00

STOCK PAYMENTS
No. of Shares No. of Installments Amount Paid
83.33 1 ₱ 10,000.00

STOCK PAYMENTS
No. of Shares No. of Installments Amount Paid
375 1 ₱ 37,500.00

STOCK PAYMENTS
No. of Shares No. of Installments Amount Paid
 37.5 ₱ 4,125.00

STOCK PAYMENTS
No. of Shares No. of Installments Amount Paid
1,000 1 ₱ 100,000.00
3,000 2 ₱ 300,000.00
 STOCKHOLDER'S JOURNAL

CERTIFICATE CANCELLED
LEFT BY
DATE TRANSFERRED BY Ledger No. of
Cert. No. SIGNATURE
Folio Shares
May-17 20A
May-17 20A
May-17 20A
Aug-07 20A Luz Un 500
Aug-07 20A
Sep-17 20A
CKHOLDER'S JOURNAL

CERTIFICATE ISSUED
RECEIVED BY
TRANSFERRED TO Ledger No. of Total No.
Cert. No. SIGNATURE
Folio Shares of Shares
Luz Un A-001 4 000 4 000
Kareen Leon A-002 2 000 2 500
Cristina Obeso A-003 1 750 1 750
Luz Un A-004 3500 3500
Guevera A-005 500 500
Mae Alma Pedrosa A-006 60 60
Rosanna Beceira A-007 90 90
 Davao Merchandising, Incorporated
Schedule of Accounts Receivable
As of 31 December 20A

Name of Customers Amount

Iligan Supermart ₱ 742,400.00

Oro Superstore 3,227,840.00
Total ₱ 3,970,240.00

Davao Merchandising, Incorporated

Schedule of Accounts Payable
As of 31 December 20A

Name of Suppliers Amount

Manila Textile, Incorporated ₱ 1,952,360.00

Mindanao Enterprises 37,000.00
Universal Textile Corporation 1,246,976.00
Total ₱ 3,236,336.00
 DAVAO MERCHANDISING, INCORPORATED
TRIAL BALANCE
December 31, 20A

Accounts Debit Credit

Cash in Bank ₱ 187,295.00

Accounts Receivable 3,970,240.00
Subscription Receivable 320,125.00
Acccounts Payable ₱ 3,236,336.00
VAT Payable 155,874.00
Ordinary Share Capital 840,000.00
Subscribed Ordinary Share 430,000.00
Share Premium 3,500.00
Sales 10,921,750.00
Purchases 9,622,800.00
Organization Expenses 35,200.00
Taxes and Licenses 24,300.00
Salaries and Wages 480,500.00
Rent Expense 600,000.00
Store Supplies Expense 37,000.00
Utilities Expense 310,000.00
Total ₱ 15,587,460.00 ₱ 15,587,460.00
 DAVAO MERCHANDISING INCORPORATED
STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 20A

Sales ₱ 10,921,750.00
Cost of Sales
Merchandise Inventory, Beg. -
Purchases ₱ 9,622,800.00
Merchandise Avaialble for Sale 9,622,800.00
Less: Merchandise Inventory, End 2,105,000.00 7,517,800.00

Gross Profit ₱ 3,403,950.00

Operating Expenses
Organization Expense 35,200.00
Taxes and Licenses 24,300.00
Salaries and Wages 480,500.00
Rent Expense 600,000.00
Store Supplies Expense 37,000.00
Utilities Expense 310,000.00 ₱ 1,487,000.00
Profit ₱ 1,916,950.00