DIRECTION: Use the following CHART OF ACCOUNTS for Journalizing, Posting and Trial

Balance. Perpetual Method will be used.

Here are the steps that needs be done:

1. Read the transactions carefully, analyze, then journalize each. Be careful with the dates,
account names and amount. Then review again your journal entries.

2. Post the journal entries. Carefully transfer the amounts to their corresponding account ledger
and the correct debit and credit side.

3. After completing the posting, do the necessary computations until you come up with each
account balances.

4. Prepare the Trial Balance.

Cod Account Title Code Account Title

e

10  CASH  61 SALES DISCOUNT

11  ACCOUNTS RECEIVABLE 62 SALES RETURNS AND ALLOWANCES

12  NOTES RECEIVABLE  70 COST OF GOODS SOLD

13  MERCHANDISE INVENTORY 71 PURCHASES

20  OFFICE EQUIPMENT  72 FREIGHT IN

21  FURNITURE & FIXTURES 73 PURCHASE DISCOUNTS

30  ACCOUNTS PAYABLE 74 PURCHASE RETURNS AND ALLOWANCES

50  BUHAY, CAPITAL  75 FREIGHT OUT

51  BUHAY, PERSONAL  76 SALARIES EXPENSE

52  INCOME SUMMARY  77 UTILITIES EXPENSE

60  SALES  78 ADVERTISING EXPENSE

Mr. BUHAY operates a business named “ALIVE GENERAL MERCHANDISE”. He provided you
with the following transaction for the month of October, 2020.
October 1 Mr. Buhay made an initial investment in the company for 1,448,500 in cash.
October 3 Purchased Goods worth P250,000 on account terms 2/10, n/30 from NABUBUHAY
October 5 Sold the Goods he bought on October 3 at 475,000 in cash to MABUHAY. Cost:
P230,000.
October 8 MABUHAY founded out that P95,000 worth of goods bought from BUHAY were
defective. Cost of which is P50,000.
October 9 Mr. Buhay paid its account on October 3
October 12 Purchased goods from NABUHAY P335,000, terms 3/5, 2/8, 1/12, n/30 and later
sold to NAMUMUHAY at P670,000 on account, terms 2/10, n/30
October 15 Paid the following Expenses: Salaries- P 65,000, Advertising- P45,500 and freight
P37,500.
October 16 Namumuhay paid 40% of its account.
October 21 Purchased Goods worth P430,000 in Cash from LIVING and Paid Freight worth
P5,500
October 23 Mr. Buhay returned P85,400 worth of damaged goods to Living.
October 24 Mr. Buhay has taken cash from the business worth P200,000.
October 26 Paid Utilities worth P45,000.
October 28 Purchased Office Equipment worth P340,500 and Tables and Chairs worth
P225,400 in cash.
October 31 Purchased Goods worth P75,800 in cash and later sold to customer at P150,000 in
cash.
 Journal entries:
2021 page 1
Date Particular/Explanation P. R. Debit Credit
OCT

page 2
Date Particular/Explanation P. R. Debit Credit

Page 3
Date Particulars/Explanation P. R. Debit Credit
 2. Post the transaction to Ledger / T-Accounts
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Date Explanation J-R Debit Credit Balance

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Date Explanation J-R Debit Credit Balance
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Date Explanation J-R Debit Credit Balance

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Date Explanation J-R Debit Credit Balance
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Date Explanation J-R Debit Credit Balance

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Date Explanation J-R Debit Credit Balance

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Date Explanation J-R Debit Credit Balance
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Date Explanation J-R Debit Credit Balance

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Date Explanation J-R Debit Credit Balance

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Date Explanation J-R Debit Credit Balance
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Date Explanation J-R Debit Credit Balance

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Date Explanation J-R Debit Credit Balance

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Date Explanation J-R Debit Credit Balance
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Date Explanation J-R Debit Credit Balance

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Date Explanation J-R Debit Credit Balance

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Date Explanation J-R Debit Credit Balance

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Date Explanation J-R Debit Credit Balance

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Date Explanation J-R Debit Credit Balance

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Date Explanation J-R Debit Credit Balance
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Account Name Debit Credit

CASH
ACCOUNTS RECEIVABLE

NOTES RECEIVABLE
MERCHANDISE INVENTORY

OFFICE EQUIPMENT
FURNITURE & FIXTURES

ACCOUNTS PAYABLE
BUHAY, CAPITAL

BUHAY, PERSONAL
INCOME SUMMARY

SALES
SALES DISCOUNT

SALES RETURNS AND ALLOWANCES

COST OF GOODS SOLD

PURCHASES
FREIGHT IN

PURCHASE DISCOUNTS
PURCHASE RETURNS AND ALLOWANCES

FREIGHT OUT
SALARIES EXPENSE

UTILITIES EXPENSE
ADVERTISING EXPENSE
Total