BOOKKEEPING NC III REVIEW

ASSESSMENT ON PERPETUAL INVENTORY SYSTEM

Name: Date:
Qualification:

MICHAEL GENERAL MERCHANDISE

Legna Naiugalac is the sole owner of Legna General Merchandise. The transaction for the month of
August 2017 consisted of the following:

August 1 Received P200,000.00 cash from Legna Naiugalac as initial investment.

2 Bought merchandise inventory on account P50,000.00. term 10/30, n/40
3 Sold merchandise on account, P40,000. The Actual cost of goods sold is P15,000.00.
Term: 5/10, n/30.
5 Received returns from July 3 sale, P4,000.00. The cost of inventory is P1,500.00.
8 Paid taxes and licenses, P12,000.00 to the city government
9 Additional investment of L. Naiugalac, P30, 000.00.
12 Received July 3 sales
15 Bought merchandise inventory for cash, P80,000.00 and paid freight on shipment
P2,000.00.
17 Return P3,000.00 cost of goods purchased on July 15.
19 Sold merchandise amounting to P70,000.00. The cost of sales is P20,000.00
20 Paid Freight for July 19 transaction,P500.00
21 Paid the account on July 2
Withdrew P5,000.00 for personal use.
22 Received returns from July 19 sales,P7,000.00. The cost of inventory is P2,000.00.
25 Sold merchandise on account, P60,000.00. The actual cost of goods sold is P20,000.00.
28 Paid advertisement, P2,000.00.
30 Paid utilities for the month,P3,000.00
31 Paid salaries to employees, P50,000.00.
Paid rental for the month, P35,000.00.

Required: Perform the complete accounting cycle using Perpetual Inventory System for Michael General
Merchandise. Observe all customary procedure in all respects i.,e complete explanation in the journals/
particulars in the ledgers, correct folio referencing, double ruling, proper indention, etc.
 MICHAEL GENERAL MERCHANDISE
Chart of Accounts

ASSETS:

Current Assets:
101-Cash
102-Account Receivable
103- Merchandise Inventory
104- Supplies

Non-Current Assets:
105- Equipment

LIABILITIES:

Current Liabilities:
106-Accounts Payable

Non-Current liabilities:
107- Notes Payable

OWNER’S EQUITY:
108- L. Naiugalac, Capital
109- L. Naiugalac, Drawing
110- Income Summary

INCOME:
111-Sales
 112-Sales Returns and Allowances
113-Sales Discount

COST/EXPENSES:
114-Cost of Good Sold
118-Salaries
119-Rent Expense
120-Taxes and Licenses
121-Advertisement
122-Utilities
123-Freight-Out