MM COMPANY

CHART OF ACCOUNTS

ASSETS
PAGE NO. ACCOUNT NO. CURRENT ASSETS PAGE NO. ACCOUNT NO.

1 100 Cash in Bank 14 400

2 101 Accounts Receivable 15 401
3 102 Estimated Uncollectible Accounts 16 402
4 103 Office Supplies
5 104 Prepaid Rent

PROPERTY AND EQUIPMENT

6 105 Office Equipment 17 500

7 106 Accumulated Depreciation 18 501
19 502
LIABILITY 20 503

8 200 Accounts Payable

9 201 Salaries Payable
10 202 Utilities Payable 21 600
11 203 Bank Loan Payable 22 601
23 602
Owner's Equity 24 603
12 300 MM, Capital 25 604
13 301 MM, Withdrawal 26 605
27 606
INCOME

Sales
Sales Discount
Sales Returns

COSTS

Purchases
Purchase Discount
Purchase Returns
Freight in

EXPENSES

Freight out
Salaries Expense
Utilities Expense
Supplies Expense
Rent Expense
Uncollectible Accounts
Depreciation Expense
JANUARY
1
1
2

2
3
4
6
7
8
9
10
11
11
13
14
15
15
20
20
20
25
27
28
Additional Information

1
2

3
 The following are the transactions of MM company for the month of January 2020

MM invested P 500,000 cash. OR no. 00001

Purchased merchandise on account from KCC Mall, P 50,000. Charge Invoice no. 0011 Term 10 , 2/10, n/30
Purchased office equipment on account, P 50,000 from Gaisano Mall. Charge invoice no. 2134.
It has a useful life of 5 years with a salage value 5,000 at the end of its life.
Paid Mr. AA for the delivery of the merchandise purchased in no. 1. P 3,000. Check no. 10000.
Purchased merchandise from XYZ company for cash, P 30,000. Check no. 10001 , OR NO. 6543
Sold merchandise on account, P 150,000 to ABC Marketing which cost amounted to , P 60,000. Term 15, 1/10, n/30. Charge in
Returned merchandise purchase from KCC Mall, 5,000.
Paid MR. CC for the delivery of the merchandise sold to ABC Marketing P 2,000. Check no. 10003
Sold merchandise to BB for cash, P 30,000 which cost amounted to , P 18,000. OR NO.00002
Returned merchandise purchased from XYZ company, P 3,000, OR NO. 7500
Received merchandise from ABC Marketing, P 4,000 which cost , P 3,000.
Received merchandise from BB, P 6,000 which cost , P 3,600. Check no. 10004
Paid P 30,000 of the merchandise purchased from KCC Mall. Chek no. 10005
Collected 35,000 the account with ABC Marketing. OR no. 00003
Paid in full the account with KCC Mall. Check no. 10006
Collected in full the account of ABC Marketing, OR no. 00004
Paid XX Realty for 3 months rent in advance, P 45,000. Check no. 10007
Borrowed P 800,000 from RCBC bank at 8 % payable 1 year after.
Purchased office supplies from Crown Bookstore for cash P 6,000. Check no. 10008
Paid salaries of the employees, P52,000. Check no. 10009
Sold Merchandise on account, P 400,000 to HH Company which cost amounted to , P 190,000. Term 10, 2/10, n/30. Charge inv
Purchased merchandise on account from NCCC MALL, P 100,000. Charge Invoice no. 0030 Term 10 , 3/15, n/30
MM withdrew cash for his personal use, P 20,000. Check no. 10010
Additional Information

30% of the supplies were on hand

The entity paid its employees every 20th and 5th day of the month and is on a six day work week. It incurs P 4,000 salaries ex
Payroll cut off date is every 15th day and end of the month.
Unpaid Expenses at year end
Electricity expense 5,450
Telepone expense 1699
Water expense 1,450
 PURCHASE DISCOUNT COMPUTATION
PURCHASES
Cash receipts journal LESS: PURCHASE RETURNS
Purchase Journal NET PURCHASES
General jOurnal X DISCOUNT RATE
Purchases 45,000 ( 50,000 X 90%) PURCHASE DISCOUNT
Cash Disbursement jOurnal Accounts Payable - KCC MALL 45,000
Cash Disbursement jOurnal
Sales Journal
General jOurnal RETURNS
Cash Disbursement jOurnal Accounts Payable - kcc mall 30,000 PAYMENT
cash receipts journal Cash in bank 30,000
Cash receipts journal
General jOurnal Accounts payable 10,000
Cash Disbursement jOurnal Purchase discount 800
Cash Disbursement jOurnal Cash 9,200
Cash receipts journal
Cash Disbursement jOurnal Accounts Payable- KCC MALL 5,000
Cash receipts journal Purchase returns 5,000 SALES
cash receipts journal
Cash Disbursement jOurnal Accounts Receivable-ABC MARKETING 127,500
Cash Disbursement jOurnal Sales 127,500 ENDING BALANCE
Cash Disbursement jOurnal
Sales Journal Sales Returns 4,000
Purchase Journal Account Receivable- ABC MARKETING 4,000
Cash Disbursement jOurnal

Cash 87,265
Sales Discount 1,235
Accounts Receivable- ABC MARKETING 88,500
E DISCOUNT COMPUTATION SALES DISCOUNT COMPUTATION
45,000 SALES 127,500
CHASE RETURNS 5000 LESS: SALES RETURNS 4,000
40000 NET SALES 123,500
2% X DISCOUNT RATE 1%
E DISCOUNT 800 SALES DISCOUNT 1,235

Accounts Payable
5,000 45,000 PURCHASES
30,000
35,000 45,000
10,000 ENDING BALANCE

Accounts Receivable
127,500 4,000 RETURNS
35,000 COLLECTION
127,500 39,000
88,500
DATE DESCRIPTION PR DEBIT CREDIT
YEAR 2020
JANUARY
2 Office Equipment 50,000
Accounts Payable 50,000

6 Accounts Payable 5,000

Purchase Returns 5,000
Returned merchandise to KCCMall
10 Sales Returns 4,000
Account Receivable 4,000
Received goods from ABC Marketing
 DATE SUPPLIERS TERMS CHARGE SALES INVOICE NO. PURCHASES
YEAR 2020 DEBIT
JANUARY
1 KCC MALL 2/10,N/30 0011 45,000
27 NCCC MALL 3/15,N/30 0030 90,000
135,000
ACCOUNTS PAYABLE
CREDIT

45,000
90,000
135,000
 DATE CUSTOMERS TERMS CHARGE SALES INVOICE NO.
YEAR 2020
JANUARY
4 ABC MARKETING 1/10, N/30 0000001
25 HH COMPANY 2/10, N/30 0000002
ACCOUNTS RECEIVABLE SALES
DEBIT CREDIT

127,500 127,500
360,000 360,000
487,500 487,500
 DATE CUSTOMERS/PAYOR CASH SALES CASH IN BANK SALES DISCOUNT SALES
YEAR 2020 INV. / O.R DEBIT DEBIT CREDIT
JANUARY
1 MM 00001 500,000
8 BB 00002 30,000 30,000
9 XYZ COMPANY 7500 3,000
13 ABC MARKETING 00003 35,000
15 ABC MARKETING 00004 87,265 1,235
15 RCBC BANK 800,000
1,455,265 1,235 30,000

Cash 87,265
Sales Discount 1,235
Accounts Receivable- ABC MARKETING 88,500
ACCOUNTS RECEIVABLE SUNDRIES DEBIT CREDIT
CREDIT

MM, CAPITAL 500,000

PURCHASE RETURNS 3,000

35,000
88,500
Bank loan payable 800,000
123,500 1,303,000
 DATE PAYEE CHECK NO./ OR NO. CASH IN BANK
YEAR 2020 CREDIT
JANUARY
2 MR AA 10000 3,000
3 XYZ COMPANY 10001 30,000
5 CASH - PAYROLL 10002 52,000
7 Mr CC 10003 2,000
11 BB 10004 6,000
11 KCC MALL 10005 30,000
14 KCC MALL 10006 9,200
15 XX REALTY 10007 45,000
20 CROWN BOOKSTORE 10008 6,000
20 PAYROLL 10009 52,000
28 MM 10010 20,000
255,200
 PURCHASE DISCOUNT PURCHASES ACCOUNTS PAYABLE SALARIES EXPENSE
CREDIT DEBIT DEBIT DEBIT

30,000
52,000

30,000
800 10,000

52,000

800 30,000 40,000 104,000

 SUNDRIES ACCOUNT
DESCRIPTION DEBIT CREDIT

FREIGHT IN 3,000

FREIGHT OUT 2,000

SALES RETURNS 6,000

PREPAID RENT 45,000

OFFICE SUPPLIES 6,000

MM WITHDRAWAL 20,000
- 82,000 -
 MM COMPANY
GENERAL LEDGER

ASSETS

CASH IN BANK ACCOUNT NO. 100

DATE PARTICULARS F DEBIT DATE PARTICULARS F

YEAR 2020
Jan-31 CRJ 1,455,265 Jan-31 CDJ
1,200,065

ACCUMULATED DEPRECIATION ACCOUNT NO. 106

DATE PARTICULARS F DEBIT DATE PARTICULARS F

MM, WITHDRAL ACCOUNT NO. 302

DATE PARTICULARS F DEBIT DATE PARTICULARS F

YEAR 2020
Jan-31 CDJ 20,000

PURCHASE RETURNS ACCOUNT NO. 502

DATE PARTICULARS F DEBIT DATE PARTICULARS F

YEAR 2020
Jan-06 GJ
Jan-09 CRJ

RENT EXPENSE ACCOUNT NO. 604

DATE PARTICULARS F DEBIT DATE PARTICULARS F

 ACCOUNTS RECEIVABLE ACCOUNT NO. 101

CREDIT DATE PARTICULARS F DEBIT DATE PARTICULARS

YEAR 2020
255,200 Jan-31 SJ 487,500 Jan-10
Jan-31
487,500
360,000

CDJ

ACCOUNTS PAYABLE ACCOUNT NO. 200

CREDIT DATE PARTICULARS F DEBIT DATE PARTICULARS

YEAR 2020
Jan-06 GJ 5,000 Jan-02
Jan-31 CDJ 40,000 Jan-31
45,000
 SALES ACCOUNT NO. 400

CREDIT DATE PARTICULARS F DEBIT DATE PARTICULARS

YEAR 2020
Jan-31
Jan-31

FREIGHT IN ACCOUNT NO. 503

CREDIT DATE PARTICULARS F DEBIT DATE PARTICULARS

YEAR 2020
5,000 Jan-02 CDJ 3,000
3000
8,000

UNCOLLECTIBLE ACCOUNTS ACCOUNT NO. 605

CREDIT DATE PARTICULARS F DEBIT DATE PARTICULARS

UNT NO. 101 ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS ACCOUNT NO. 102

F CREDIT DATE PARTICULARS F DEBIT DATE PARTICULARS F

YEAR 2020
GJ 4,000
CRJ 123,500
127,500

UNT NO. 200 SALARIES PAYABLE ACCOUNT NO. 201

F CREDIT DATE PARTICULARS F DEBIT DATE PARTICULARS F

GJ 50,000
PJ 135,000
185,000
140,000
UNT NO. 400 SALES DISCOUNT ACCOUNT NO. 401

F CREDIT DATE PARTICULARS F DEBIT DATE PARTICULARS F

YEAR 2020
SJ 487,500 Jan-31 CRJ 1235
CRJ 30,000
517,500

UNT NO. 503 FREIGHT OUT ACCOUNT NO. 600

F CREDIT DATE PARTICULARS F DEBIT DATE PARTICULARS F

YEAR 2020
Jan-11 CDJ 2,000

UNT NO. 605 DEPRECIATION EXPENSE ACCOUNT NO. 606

F CREDIT DATE PARTICULARS F DEBIT DATE PARTICULARS F

ENT
 OFFICE SUPPLIES ACCOUNT NO. 103

CREDIT DATE PARTICULARS F DEBIT DATE PARTICULARS

YEAR 2020
Jan-31 CDJ 6000

UTILITIES PAYABLE ACCOUNT NO. 202

CREDIT DATE PARTICULARS F DEBIT DATE PARTICULARS

 SALES RETURNS ACCOUNT NO. 402

CREDIT DATE PARTICULARS F DEBIT DATE PARTICULARS

YEAR 2020
Jan-10 GJ 4,000
Jan-11 CDJ 6,000
10,000

SALARIES EXPENSE ACCOUNT NO. 601

CREDIT DATE PARTICULARS F DEBIT DATE PARTICULARS

YEAR 2020
Jan-31 CDJ 104,000

CREDIT
UNT NO. 103 PREPAID RENT

F CRDIT DATE PARTICULARS F DEBIT DATE

YEAR 2020
Jan-31 CDJ 45,000

UNT NO. 202 BANK LOAN PAYABLE

F CREDIT DATE PARTICULARS F DEBIT DATE

YEAR 2020
Jan-31 Jan-31
UNT NO. 402 PURCHASES

F CREDIT DATE PARTICULARS F DEBIT DATE

YEAR 2020
Jan-31 PJ 135,000
Jan-31 CDJ 30,000
165,000

UNT NO. 601 UTILITIES

F CREDIT DATE PARTICULARS F DEBIT DATE

ACCOUNT NO. 104 OFFICE EQUIPMENT

PARTICULARS F CRDIT DATE PARTICULARS F DEBIT DATE

YEAR 2020
Jan-31 GJ 50,000

ACCOUNT NO. 203 MM,CAPITAL

PARTICULARS F CREDIT DATE PARTICULARS F DEBIT DATE

Jan-01 CRJ 500,000
CRJ 800,000
ACCOUNT NO. 500 PURCHASE DISCOUNT

PARTICULARS F CREDIT DATE PARTICULARS F DEBIT DATE

YEAR 2020
Jan-31

ACCOUNT NO. 602 SUPPLIES EXPENSE

PARTICULARS F CREDIT DATE PARTICULARS F DEBIT DATE

ACCOUNT NO. 105

PARTICULARS F CREDIT

ACCOUNT NO. 300

PARTICULARS F CREDIT
 ACCOUNT NO. 501

PARTICULARS F CREDIT
YEAR 2020
CDJ 800

ACCOUNT NO. 603

PARTICULARS F CREDIT
 MM COMPANY
TRIAL BALANCE

ACCOUNT ACCOUNTS TITLES DEBIT CREDIT

NO.
100 Cash in Bank 1,200,065
101 Accounts Receivable 360,000
102 Estimated Uncollectible Accounts
103 Office Supplies 6,000
104 Prepaid Rent 45,000
105 Office Equipment 50,000
106 Accumulated Depreciation
200 Accounts Payable 140,000
201 Salaries Payable
202 Utilities Payable
203 Bank Loan Payable 800,000
300 MM, Capital 500,000
301 MM, Withdrawal 20,000
400 Sales 517,500
401 Sales Discount 1,235
402 Sales Returns 10,000
500 Purchases 165,000
501 Purchase Discount 800
502 Purchase Returns 8,000
503 Freight in 3,000
600 Freight out 2,000
601 Salaries Expense 104,000
602 Utilities Expense
603 Supplies Expense
604 Rent Expense
605 Uncollectible Accounts
606 Depreciation Expense
TOTALS 1,966,300 1,966,300 -