Nciii-Bookkeeping Sample Problem

Sample
TESDA
Bookkeeping
Assessment
Exam
On December 2017, Dereck Sanchez a budding entrepreneur registered his business in
the Department of Trade and Industry (DTI) as a sole proprietor-merchandising
nature/form of business under the business name Sanchez General Merchandising.
Dereck opted to use a Perpetual Inventory System.
The following transactions occured during the month:
1 Dereck put in 590,000 cash in the business.

2 Hired an office assistant with monthly salary of 18,000.
2 Purchased computer equipment on account for 30,000 from Xcel Computers, Inc.
3 Bought fire insurance with 1-year coverage, 12,000.
3 Bought merchandise from TY Traders 205,000 2/10, n/30, FOB Destination.
4 Paid freight for the Dec 3 transactions, 1,800.
5 Sold merchandise for cash, 88,000, costing 50,000.
5 Bought office supplies on account, 3,500 from MCS Marketing.
6 Paid in full Xcel Computers, Inc . accounts.
8 Received credit from TY Traders for wrongly delivered merchandise, 1,100.
9 Refunded customers for merchandise sold for 900 costing 500 due to minor
defects.
11 Sold merchandise to customers, 108,000, 2/10, n/30. FOB Shipping Point,
costing 61,400.
12 Paid feight for Dec 11 transactions, 900.
12 Availed 50,000 SME Loan from RCBC by signing a 180-day note.
13 Paid TY Traders account in full.
15 Credit customers account, 11, 330 for inventory returns costing, 6,400.
15 Paid assistant's salary 9,000
17 Bought merchandise from AC Merchandisers amounting to 79,000 2/10, n/30.
20 Received payment from customers.
24 Paid account for supplies purchased.
25 Sanchez take out cash from the business, 12,000.
26 Sold merchandise for cash, 99,000 costing 56,500.
27 Paid telephone bill, 5,700.
29 Made repairs to office electrical wirings and connections, 990.
30 Paid assistant's salary.
30 Paid the following expenses : Advertising 3,800, Utilities 2,900, and Rental
15,000.
30 Physical count at the end of the year indicates that Ending Inventory amounted
to 55,000.
Required:
1. Journalize Transactions using the following Chart of Accounts:
No. Account Titles No. Account Titles
101 Cash 301 Sanchez, Capital

102 Accounts Receivable 302 Sanchez, Drawings
103 Prepaid Insurance 303 Income Summary
104 Supplies 401 Sales
105 Merchandise Inventory 402 Sales Returns And Allowances
106 Office Equipment 403 Sales Discounts
107 Accumulated Depreciation 501 Cost of Sales
201 Accounts Payable 502 Advertising Expense
202 Interest Payable 503 Depreciation Expense
203 Notes Payable 504 Freight Out
505 Insurance Expense
No. Account Titles
506 Interest Expense

507 Rental
508 Repairs and Maintenance
509 Salaries
510 Supplies Expense
511 Telephone
512 Utilities
2. Post Transactions to the Ledger
3. Prepare the Trial Balance
4. Prepare the following Financial Statements:

a. Balance Sheet
b. Income Statement
c. Statement of Cashflow
d. Statement of Changes in Owner’s Equity
5. Journalize and Post Closing Entries
6. Prepare Post-Closing Trial Balance

Sanchez General Merchandise
General Journal
Page No. GJ-1
Date Particulars Ref Debit Credit
December 1 Cash 101 590,000
Sanchez, Capital 301 590,000
To record initial investment.
2 NO ENTRY
Office Equipment 106 30,000
Accounts Payable 201 30,000
To record purchase of office equipment on

account.
3 Prepaid Insurance 103 12,000
Cash 101 12,000
To record acquisition of insurance with 1-year

coverage.
Merchandise Inventory 105 205,000
To record inventory purchase.
4 Accounts Payable 201 1,800
Cash 101 1,800
To record payment of freight .
5 Cash 101 88,000
Sales 401 88,000
To record cash sales.
Cost of Sales 501 50,000
To record cost of merchandise sold.
Supplies 104 3,500
To record purchase of supplies on account.
TOTAL 980,300 980,300

Sanchez General Merchandising
General Journal
Page No. GJ-2
December 6 Accounts Payable 201 30,000
Cash 101 30,000
To record payment to Xcel Computers, Inc.
To record credit memo from TY Traders.
9 Sales Returns and Allowances 402 900
Cash 101 900
To record customer refund.
Merchandise Inventory 105 500
Cost of Sales 501 500
To record cost of merchandise returned.
11 Accounts Receivable 102 108,000
Sales 401 108,000
To record sales on account.
12 Accounts Receivable 102 900
Cash 101 900
To record freight for merchandise sold.
Cash 101 50,000
Notes Payable 203 50,000
To record loan proceeds from RCBC.
TOTAL 252,800 252,800
xz
General Journal
Page No. GJ-3
December 13 Accounts Payable 201 202,100
Cash 101 198,022

To record full payment to TY Traders.
15 Sales Returns and Allowance 402 11,330
Accounts Receivable 102 11,330
To record sales returns.
To record the cost of merchandised

returned.
Salaries 509 9,000
Cash 101 9,000
To record assistant's salaries.
17 Merchandise Inventory 105 79,000
To record purchase of merchandise on

account.
20 Cash 101 95,636.60
Sales Discounts 403 1,933.40
Accounts Receivable 102 97,570
To record customer payments.
Cash 101 3,500
To record full payment to MCS Marketing.
25 Sanchez, Drawings 302 120,000
Cash 101 120,000
To record owner's withdrawals
TOTAL 528,900 528,900

General Journal
Page No. GJ-4
December 26 Cash 101 99,000
Sales 401 99,000
To record cash sales.
27 Telephone 511 5,700
Cash 101 5,700
To record payment of telephone bill.
29 Repairs and Maintenance 508 990
Cash 101 990
To record repairs and maintenance
30 Salaries 509 9,000
Cash 101 9,000
To record assistant's salary
Advertising 502 3,800
Utilities 512 2,900
Rental 507 15,000
Cash 101 21,700
To record payment of several expenses.
TOTAL 192,890 192,890

Cash
Acct No. 101
Balance
Date Explanation Ref. Debit Credit
Debit Credit
Dec 1 Initial Investment GJ-1 590,000 590,000
3 Acquisition of insurance with GJ-1 12,000 578,000
1-year coverage
4 Payment of freight GJ-1 1,800 576,200
5 Cash Sales. GJ-1 88,000 664,200
6 Payment to Xcel Computers, GJ-2 30,000 634,200
Inc.
9 Customer refund GJ-2 900 633,300
12 Freight for merchandise sold GJ-2 900 632,400
12 Borrowing from RCBC. GJ-2 50,000 682,400
13 Full payment to TY Traders. GJ-3 198,022 484,378
15 Assistant's salaries. GJ-3 9,000 475,378
20 Customer payments GJ-3 95,636.60 571,014.60
24 Full payment to MCS GJ-3 3,500 567,514.60
Marketing.
25 Owner's withdrawals GJ-3 120,000 447,514.60
26 Cash sales GJ-4 99,000 546,514.60
27 Payment of telephone bill. GJ-4 5,700 540,814.60
29 Repairs and maintenance GJ-4 990 539,824.60
30 Assistant's salary GJ-4 9,000 530,824.60
30 Payment of several GJ-4 21,700 509,124.60
expenses.
Accounts Receivable
Accnt No. 102
Balance
Debit Credit
Dec 11 Sales on account. GJ-2 108,000 108,000
12 Freight for merchandise sold. GJ-2 900 108,900
15 Sales returns. GJ-3 11,330 97,570
20 Customer payments. GJ-3 97,570 0
Prepaid Insurance
Accnt No. 103
Balance
Debit Credit
Dec 3 Acquisition of insurance with GJ-1 12,000 12,000
1-year coverage.
Supplies
Accnt No. 104
Date Balance
Explanation Ref. Debit Credit
Debit Credit
Dec 5 Purchase of supplies on GJ-1 3,500 3,500
account
Merchandise Inventory
Acct No. 105
Date Balance
Debit Credit
Dec 3 Inventory purchase. GJ-1 205,000 205,000
5 Cost of merchandise sold. GJ-1 50,000 155,000
8 Credit memo from TY Traders GJ-2 1,100 153,900
9 Cost of merchandise returned. GJ-2 500 154,400
13 Payment discount TY Traders GJ-3 4,078 88,922
15 Cost of merchandise returned GJ-3 6,400 95,322
17 Purchase of merchandise on GJ-3 79,000 174,322
account.
26 Cost of merchandise sold GJ-4 56,500 117,822
Office Equipment
Accnt No. 106
Balance
Debit Credit
Dec 2 Purchase of office equipment GJ-1 30,000 30,000
on account.
Accumulated Depreciation
Accnt No. 107
Balance
Date
Debit Credit
Accounts Payable
Accnt No. 201
Date Balance
Debit Credit
Dec 2 Purchase of office equipment GJ-1 30,000 30,000
on account.
3 Inventory purchase. GJ-1 205,000 235,000
4 Payment of freight GJ-1 1,800 233,200
5 Purchase of supplies on GJ-1 3,500 236,700
account
6 Payment to Xcel Computers. GJ-2 30,000 206,700
8 Credit memo from TY GJ-2 1,100 205,600
Traders
13 Full payment to TY Traders. GJ-3 202,100 3,500
17 Purchase of merchandise on GJ-3 79,000 82,500
account.
24 Full payment to MCS GJ-3 3,500 79,000
Marketing.
Interest Payable
Accnt No. 202
Balance
Date Debit Credit
Notes Payable
Accnt No. 203
Balance
Date
Debit Credit
Dec 12 Borrowing from RCBC. GJ-2 50,000 50,000
Sanchez, Capital
Accnt No. 301
Balance
Date
Debit Credit
Dec 1 Initial Investment. GJ-1 590,000.00 590,000.00
Sanchez, Drawings
Accnt No. 302
Balance
Date
Debit Credit
Dec 25 Owner's withdrawals GJ-3 120,000 120,000
Income Summary
Accnt No. 303
Balance
Date
Debit Credit
Sales
Accnt No. 401
Balance
Date
Debit Credit
Dec 5 Cash sales. GJ-1 88,000 88,000
11 Sales on account. GJ-2 108,000 196,000
26 Cash sales. GJ-4 99,000 295,000
Sales Returns and Allowances

Accnt No. 402
Balance
Date Debit Credit
Dec 9 Customer refund GJ-2 900 900

15 Customer inventory returns GJ-3 11,330 12,230
Sales Discounts
Accnt No. 403
Balance
Date
Debit Credit
Dec 22 Customer payments. GJ-3 1,933.40 1,933.40
Cost of Sales
Accnt No. 501
Balance
Date
Debit Credit
Dec 5 Cost of merchandise sold GJ-1 50,000 50,000
9 Cost of merchandise returned GJ-2 500 49,500
15 cost of merchandised 6,400 104,500
GJ-3
returned
Advertising Expense
Accnt No. 502
Balance
Date
Debit Credit
Dec 30 Payment of several GJ-4 3,800 3,800
expenses.
Depreciation Expense
Accnt No. 503
Balance
Date
Debit Credit
Freight Out
Accnt No. 504
Balance
Date
Debit Credit
Insurance Expense
Accnt No. 505
Balance
Date
Debit Credit
Interest Expense
Accnt No. 506
Balance
Date
Debit Credit
Rental
Accnt No. 507
Balance
Debit Credit
expenses.
Repairs and Maintenance

Accnt No. 508
Balance
Debit Credit
Dec 29 Repairs and maintenance GJ-4 990 990
Salaries
Accnt No. 509
Balance
Debit Credit
Dec 15 Assistant's salary 9,000 9,000
30 Assistant's salary 9,000 18,000
Supplies Expense
Accnt No. 510
Balance
Date
Debit Credit
Telephone
Accnt No. 511
Balance
Debit Credit
Dec 27 Payment of telephone bill. GJ-4 5,700 5,700
Utilities
Accnt No. 512
Balance
Debit Credit
Dec 30 Payment of several expenses G-4 2,900 2,900
Trial Balance
December 31, 2017
Accnt No. Account Titles Debit Credit
101 Cash 509,124.60

102 Prepaid Insurance 12,000
103 Supplies 3,500
104 Merchandise Inventory 117,822
105 Office Equipment 30,000
201 Accounts Payable 79,000
202 Notes Payable 50,000
301 Sanchez, Capital 590,000
302 Sanchez, Drawings 120,000
401 Sales 295,000
402 Sales Returns And Allowances 12,230
403 Sales Discounts 1,933.40
501 Cost of Sales 161,000
502 Advertising Expense 3,800
503 Rental 15,000
504 Repairs and Maintenance 990
505 Salaries 18,000
506 Telephone 5,700
Utilities 2,900
Total 1,014,000 1,014,000

Statement of CashFlows
December 31, 2017
Cashflow from Operating Activities

Cash Sales 187,000
Customer Payments 95,636.60
Payment for Merchandise purchased on account (198,022)
Paid assistant’s salaries (18,000)
Acquisition of Insurance (12,000)
Payment of freight (2,700)
Customer refund (900)
Payment for purchase of supplies on account (3,500)
Payment of telephone bill (5,700)
Payment for repairs and maintenance (990)
Payment for several expenses (21,700)
Net Cash Inflow from Operating Activities 19,124.60
Cashflow from Investing Activities

Payment for purchase of office equipment on account. (30,000)
Net Cash Outflow from Investing Activities (30,000)
Cashflow from Financing Activities

Iniitial Investment 590,000
RCBC Borrowing 50,000
Owner’s Withdrawals (120,000)
Net Cash Inflow from Investing Activities 520,000
Net Increase in Cash 509,124.60
Opening Cash -
Closing Cash 509,124.60

Statement of Financial Position
As of December 31, 2017
ASSETS
Current Assets
Cash 509,124.60
Prepaid Insurance 12,000.00
Supplies 3,500.00
Merchandise Inventory 117,822.00
Total Current Assets 642,446.60
Non-current Assets
Office Equipment 30,000.00
Total Non-current Assets 30,000
TOTAL ASSETS 672,446.60
LIABILITIES AND OWNER’S EQUITY
Current Liabilities
Accounts Payable 79,000.00
Total Current Liabilities 79,000
Non-Current Liabilities
Notes Payable 50,000.00
Total Non-current Liabilities 50,000.00
Sanchez, Capital 543,446.60
TOTAL LIABILITIES AND OWNER’S EQUITY 672,446.60

Statement of Financial Performance
For the month ended December 31, 2017
Sales 295,000.00
Less: Sales Returns and Allowances 12,230
Sales Discounts 1,933.40 14,163.40
Net Sales 280,836.60
Less: Cost of Sales 161,000.00
Gross Profit 119,836.60
Less: Operating Expenses

Advertising Expense 3,800
Rental 15,000
Repairs and Maintenance 990
Salaries 18,000
Telephone 5,700
Utilities 2,900 46,390
NET INCOME 73,446.60

Statement of Changes in Owner’s Equity
For the month ended December 31, 2017
Owner’s Equity, beg -

Add: Investments 590,000
Net Income 73,446.60 663,446.60
Less: Withdrawals 120,000 120,000.00

Owner’s Equity, end 543,446.60
General Journal
Page No. GJ- 5
December 31 Sales 401 295,000.00

Income Summary 295,000.00
To close nominal accounts.
Sales Returns and Allowances 12,230

Sales Discounts 1,933.40
Cost of Sales 161,000
Advertising Expense 3,800
Rental 15,000
Repairs and Maintenance 990
Salaries 18,000
Telephone 5,700
Utilities 2,900
To close nominal accounts.

Sanchez, Capital 73,446.6
To close Income Summary to Capital.
Sanchez, Capital 120,000

Sanchez, Drawing 120,000
To close Drawing to Capital.
Sanchez, Capital
Accnt No. 301
Balance
Date
Debit Credit
Dec 1 Initial Investment. GJ-1 590,000.00 590,000.00
31 Close Income Summary to GJ-5 73,446.6 663,446.60
Capital.
Close Drawing to Capital GJ-5 120,000 543,446.60
Sanchez, Drawings
Accnt No. 302
Balance
Date
Debit Credit
Dec 25 Owner's withdrawals GJ-3 120,000 120,000
31 Close Drawing to Capital. GJ-5 120,000 0
Income Summary
Accnt No. 303
Balance
Date
Debit Credit
Dec 31 Close nominal accounts. GJ-5 295,000 295,000
Close nominal accounts GJ-5 221,553.40 73,446.6
Close Income Summary to 73,446.6 0
Capital.
Sales
Accnt No. 401
Balance
Date
Debit Credit
Dec 5 Cash sales. GJ-1 88,000 88,000
11 Sales on account. GJ-2 108,000 196,000
26 Cash sales. GJ-4 99,000 295,000
31 Close nominal accounts. GJ-5 295,000 0
Sales Returns and Allowances

Accnt No. 402
Balance
Date Debit Credit
Dec 9 Customer refund GJ-2 900 900

15 Customer inventory returns GJ-3 11,330 12,230
Sales Discounts
Accnt No. 403
Balance
Date
Debit Credit
Dec 22 Customer payments. GJ-3 1,933.40 1,933.40
31 Close nominal accounts. GJ-5 1,933.40 0
Cost of Sales
Accnt No. 501
Balance
Date
Debit Credit
Dec 5 Cost of merchandise sold GJ-1 50,000 50,000
9 Cost of merchandise returned GJ-2 500 49,500
15 cost of merchandised 6,400 104,500
GJ-3
returned
Advertising Expense
Accnt No. 502
Balance
Date
Debit Credit
expenses.
Rental
Accnt No. 507
Balance
Debit Credit
expenses.
Repairs and Maintenance

Accnt No. 508
Balance
Debit Credit
Dec 29 Repairs and maintenance GJ-4 990 990
31 Close nominal accounts. GJ-5 990 0
Salaries
Accnt No. 509
Balance
Debit Credit
Dec 15 Assistant's salary 9,000 9,000
30 Assistant's salary 9,000 18,000
Telephone
Accnt No. 511
Balance
Debit Credit
Dec 27 Payment of telephone bill. GJ-4 5,700 5,700
Utilities
Accnt No. 512
Balance
Debit Credit
Dec 30 Payment of several expenses G-4 2,900 2,900
Post-Closing Trial Balance
December 31, 2017
Accnt No. Account Titles Debit Credit
101 Cash 509,124.60

102 Prepaid Insurance 12,000
103 Supplies 3,500
104 Merchandise Inventory 117,822
105 Office Equipment 30,000
201 Accounts Payable 79,000
202 Notes Payable 50,000
301 Sanchez, Capital 543,446.60
Total 672,446.60 672,446.60

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Dereck opted to use a Perpetual Inventory System.

The following transactions occured during the month:

1 Dereck put in 590,000 cash in the business.

No. Account Titles No. Account Titles

101 Cash 301 Sanchez, Capital

506 Interest Expense

2. Post Transactions to the Ledger

3. Prepare the Trial Balance

4. Prepare the following Financial Statements:

5. Journalize and Post Closing Entries

6. Prepare Post-Closing Trial Balance

Date Particulars Ref Debit Credit

December 1 Cash 101 590,000

Sanchez, Capital 301 590,000

To record initial investment.

Office Equipment 106 30,000

Accounts Payable 201 30,000

To record purchase of office equipment on

3 Prepaid Insurance 103 12,000

Cash 101 12,000

To record acquisition of insurance with 1-year

Merchandise Inventory 105 205,000

Accounts Payable 201 205,000

To record inventory purchase.

4 Accounts Payable 201 1,800

Cash 101 1,800

To record payment of freight .

5 Cash 101 88,000

Sales 401 88,000

To record cash sales.

Cost of Sales 501 50,000

Merchandise Inventory 105 50,000

To record cost of merchandise sold.

Supplies 104 3,500

Accounts Payable 201 3,500

To record purchase of supplies on account.

TOTAL 980,300 980,300

Date Particulars Ref Debit Credit

December 6 Accounts Payable 201 30,000

Cash 101 30,000

To record payment to Xcel Computers, Inc.

8 Accounts Payable 201 1,100

Merchandise Inventory 105 1,100

To record credit memo from TY Traders.

9 Sales Returns and Allowances 402 900

Cash 101 900

To record customer refund.

Merchandise Inventory 105 500

Cost of Sales 501 500

To record cost of merchandise returned.

11 Accounts Receivable 102 108,000

Sales 401 108,000

To record sales on account.

Cost of Sales 501 61,400

Merchandise Inventory 105 61,400

To record cost of merchandise sold.

12 Accounts Receivable 102 900

Cash 101 900

To record freight for merchandise sold.

Cash 101 50,000

Notes Payable 203 50,000

To record loan proceeds from RCBC.