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 700,000 cash. OR no. 00001

Purchased merchandise on account from KCC Mall, P 350,000. Charge Invoice no. 0024 Term 12 , 3/15, n/30
Purchased office equipment on account, P 70,000 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 4,000. Check no. 10000.
Purchased merchandise from XYZ company for cash, P 80,000. Check no. 10001 , OR NO. 6543
Sold merchandise on account, P 550,000 to ABC Marketing which cost amounted to , P 240,000. Term 15, 1/10, n/30. Charge i
Returned merchandise purchase from KCC Mall, 25,000.
Paid MR. CC for the delivery of the merchandise sold to ABC Marketing P 3,400. Check no. 10003
Sold merchandise to BB for cash, P 190,000 which cost amounted to , P 100,000. OR NO.00002
Returned merchandise purchased from XYZ company, P 21,000, OR NO. 7500
Received merchandise from ABC Marketing, P 12,000 which cost , P 8,000.
Received merchandise from BB, P 16,000 which cost , P 10,600. Check no. 10004
Paid P 130,000 of the merchandise purchased from KCC Mall. Chek no. 10005
Collected 260,000 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 60,000. 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 10,000. Check no. 10008
Paid salaries of the employees, P52,000. Check no. 10009
Sold Merchandise on account, P 450,000 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 150,000. 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 SALES DISCOUNT COMPUTA
PURCHASES 308,000 SALES
Cash receipts journal LESS: PURCHASE RETURNS 25000 LESS: SALES RETURNS
Purchase Journal NET PURCHASES 283,000 NET SALES
General jOurnal X DISCOUNT RATE 3% 3% X DISCOUNT RATE
PURCHASE DISCOUNT 8,490 SALES DISCOUNT
Cash Disbursement jOurnal
Cash Disbursement jOurnal
Sales Journal Accounts Payable
General jOurnal GJ RETURNS 25,000 308,000 PURCHASES PJ
Cash Disbursement jOurnal CDJ PAYMENT 130,000
cash receipts journal 155,000 308,000
Cash receipts journal 153,000 ENDING BALANCE
General jOurnal
Cash Disbursement jOurnal
Cash Disbursement jOurnal
Cash receipts journal
Cash Disbursement jOurnal Accounts Receivable
Cash receipts journal SJ SALES 467,500 12,000 RETURNS GJ
cash receipts journal 260,000 COLLECTION CRJ
Cash Disbursement jOurnal 467,500 272,000
Cash Disbursement jOurnal ENDING BALANCE 195,500
Cash Disbursement jOurnal
Sales Journal
Purchase Journal
Cash Disbursement jOurnal

aries expense per day.

SALES DISCOUNT COMPUTATION
467,500
LESS: SALES RETURNS 12,000
NET SALES 455,500
X DISCOUNT RATE 1%
SALES DISCOUNT 4,555
DATE DESCRIPTION PR DEBIT CREDIT
YEAR 2020
JANUARY
2 Office Equipment 70,000
Accounts Payable 70,000

6 Accounts Payable 25,000

Purchase Returns 25,000
Returned merchandise to KCCMall
10 Sales Returns 12,000
Account Receivable 12,000
Received goods from ABC Marketing
107,000 107,000
 DATE SUPPLIERS TERMS CHARGE SALES INVOICE NO. PURCHASES
YEAR 2020 DEBIT
JANUARY
1 KCC MALL 2/10,N/30 0011 308,000
27 NCCC MALL 3/15,N/30 0030 135,000
443,000
ACCOUNTS PAYABLE
CREDIT

308,000
135,000
443,000
 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

467,500 467,500
405,000 405,000
872,500 872,500
 DATE CUSTOMERS/PAYOR CASH SALES CASH IN BANK SALES DISCOUNT SALES
YEAR 2020 INV. / O.R DEBIT DEBIT CREDIT
JANUARY
1 MM 00001 700,000
8 BB 00002 190,000 190,000
9 XYZ COMPANY 7500 21,000
13 ABC MARKETING 00003 260,000
15 ABC MARKETING 00004 190,945 4,555
15 RCBC BANK 800,000
2,161,945 4,555 190,000

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

MM, CAPITAL 700,000

PURCHASE RETURNS 21,000

260,000
195,500
Bank loan payable 800,000
455,500 1,521,000
 DATE PAYEE CHECK NO./ OR NO. CASH IN BANK
YEAR 2020 CREDIT
JANUARY
2 MR AA 10000 4,000
3 XYZ COMPANY 10001 80,000
7 Mr CC 10003 3,400
11 BB 10004 16,000
11 KCC MALL 10005 130,000
14 KCC MALL 10006 144,510
15 XX REALTY 10007 60,000
20 CROWN BOOKSTORE 10008 10,000
20 PAYROLL 10009 52,000
28 MM 10010 20,000
519,910
 PURCHASE DISCOUNT PURCHASES ACCOUNTS PAYABLE SALARIES EXPENSE
CREDIT DEBIT DEBIT DEBIT

80,000

130,000
8,490 153,000

52,000

8,490 80,000 283,000 52,000

 SUNDRIES ACCOUNT
DESCRIPTION DEBIT CREDIT

FREIGHT IN 4,000

FREIGHT OUT 3,400

SALES RETURNS 16,000

PREPAID RENT 60,000

OFFICE SUPPLIES 10,000

MM WITHDRAWAL 20,000
- 113,400 -
 MM COMPANY
GENERAL LEDGER

ASSETS

CASH IN BANK ACCOUNT NO. 100

DATE PARTICULARS F DEBIT DATE PARTICULARS F

YEAR 2020
Jan-31 CRJ 2,161,945 Jan-31 CDJ
1,642,035

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
519,910 Jan-31 SJ 872,500 Jan-10
Jan-31
872,500
405,000

CDJ

ACCOUNTS PAYABLE ACCOUNT NO. 200

CREDIT DATE PARTICULARS F DEBIT DATE PARTICULARS

YEAR 2020
Jan-06 GJ 25,000 Jan-02
Jan-31 CDJ 283,000 Jan-31
308,000
 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
25,000 Jan-02 CDJ 4,000
21000
46,000

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 12,000
CRJ 455,500
467,500

UNT NO. 200 SALARIES PAYABLE ACCOUNT NO. 201

F CREDIT DATE PARTICULARS F DEBIT DATE PARTICULARS F

GJ 70,000
PJ 443,000
513,000
205,000
UNT NO. 400 SALES DISCOUNT ACCOUNT NO. 401

F CREDIT DATE PARTICULARS F DEBIT DATE PARTICULARS F

YEAR 2020
SJ 872,500 Jan-31 CRJ 4555
CRJ 190,000
1,062,500

UNT NO. 503 FREIGHT OUT ACCOUNT NO. 600

F CREDIT DATE PARTICULARS F DEBIT DATE PARTICULARS F

YEAR 2020
Jan-11 CDJ 3,400

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 10000

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 12,000
Jan-11 CDJ 16,000
28,000

SALARIES EXPENSE ACCOUNT NO. 601

CREDIT DATE PARTICULARS F DEBIT DATE PARTICULARS

YEAR 2020
Jan-31 CDJ 52,000

CREDIT
UNT NO. 103 PREPAID RENT

F CRDIT DATE PARTICULARS F DEBIT DATE

YEAR 2020
Jan-31 CDJ 60,000

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 443,000
Jan-31 CDJ 80,000
523,000

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 70,000

ACCOUNT NO. 203 MM,CAPITAL

PARTICULARS F CREDIT DATE PARTICULARS F DEBIT DATE

Jan-01 CRJ 700,000
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 8490

ACCOUNT NO. 603

PARTICULARS F CREDIT
 MM COMPANY
TRIAL BALANCE

ACCOUNT ACCOUNTS TITLES DEBIT CREDIT

NO.
100 Cash in Bank 1,642,035
101 Accounts Receivable 405,000
102 Estimated Uncollectible Accounts
103 Office Supplies 10,000
104 Prepaid Rent 60,000
105 Office Equipment 70,000
106 Accumulated Depreciation
200 Accounts Payable 205,000
201 Salaries Payable
202 Utilities Payable
203 Bank Loan Payable 800,000
300 MM, Capital 700,000
301 MM, Withdrawal 20,000
400 Sales 1,062,500
401 Sales Discount 4,555
402 Sales Returns 28,000
500 Purchases 523,000
501 Purchase Discount 8,490
502 Purchase Returns 46,000
503 Freight in 4,000
600 Freight out 3,400
601 Salaries Expense 52,000
602 Utilities Expense
603 Supplies Expense
604 Rent Expense
605 Uncollectible Accounts
606 Depreciation Expense
TOTALS 2,821,990 2,821,990 -