ILLUSTRATION 1

Perpetual Inventory System

DATE TRANSACTIONS DEBIT CREDIT

JAN 1 Jan Raphael bought meat Merchandise Accounts
P8,000.00 from Owen. He will Inventory Payable Owen
pay for the meat a couple of 8,000.00 8,000.00
weeks time.
JAN3 Sold meat in cash customers , Cash 9,000 Sales 9,000
P9,000.00
Cost of Goods Merchandise
Sold 8,000 Inventory 8,000
JAN 4 He purchase meat 100 kilos, Merchandise Merchandise
P9,000.00 from Sheiks in cash. Inventory Inventory
Trucking expenses, 1,000. P 9,000 P 8,000

Trucking Expenses Cash

P 1,000 P 1, 000
JAN 5 Raphael supplies meat to Account Sales
Mandys Restaurant, 20 kil0s, Receivable P4,000
P4,000.00. They will pay for P 4,000
the meat at the end of the
month. Cost of Good Merchandise
Sold Inventory
P 2,000 P 2,000
JAN 7 Pays the rent for his shop, Rent Expense Cash
P1,500.00 P 1,500 P 1,500
JAN He pays the telephone bill, Telephone Bills Cash
15 P5,000. Expense P 5,000
P 5, 000
JAN He pays the salary of his Salary Expense Cash
15 helper, P1,000.00 P 1,000 P 1.000
JAN Raphael cash sales for the Cash Sales
18 day, P5,000.00 P 5,000 P 5,000