PERPETUAL SYSTEM

MODULE

Prepare the following:

 General Journal
 General Ledger
 Trial Balance
 Statement of Performance (Income Statement)
 Statement of Financial Position (Financial Statement)
 Statement of Owner’s Equity
 Statement of Cash Flow
 Post – Closing Journal Entry
 Closing Trial Balance
 PHIL ASIA DISTRIBUTION
CHARTS OF ACCOUNTS

Use for Journalizing and Posting to the Ledger

Ref Particulars/Description Ref Particulars/Description
100 ASSETS 400 INCOME
101 CASH 401 SALES
105 ACCOUNTS RECEIVABLE 410 SALES RETURNS & ALLOWANCES
115 MERCHANDISE INVENTORY 415 SALES DISCOUNTS
120 SUPPLIES 500 EXPENSES
150 EQUIPMENT 501 COST OF GOOD SOLD
200 LIABILITIES 503 ADVERTISING EXPENSE
201 ACCOUNTS PAYABLE 506 FREIGHT OUT
202 NOTES PAYABLE 510 RENT EXPENSE
300 EQUITY 530 SALARIES
301 LOPEZ, CAPITAL 540 UTILITIES
302 LOPEZ, DRAWINGS 601 INCOME SUMMARY

PHIL ASIA DISTRIBUTION

CHARTS OF ACCOUNTS
Use for Financial Statements
Ref Particulars/Description Ref Particulars/Description
100 ASSETS 400 INCOME
101 Cash & Cash Equivalent 401
105 Receivables 405 NET SALES
115 Inventories 410
120 Prepaid Expenses 500 EXPENSES
150 Property Plant & Equipment 501 Cost of Good Sold
200 LIABILITIES 503 Advertising Expense
201 Accounts Payable 506 Freight Out
202 Notes Payable 510 Rent Expense
300 EQUITY 530 Salaries
301 Lopez, Capital 540 Utilities
302 Lopez, Drawings
 CASE PROBLEM – PHIL ASIA DISTRIBUTORS

April 1 The business PHIL ASIA Distributors was registered as a single proprietorship with the
Department of Trade and Industry, Jian Lopez invested P39, 000.

April 2 Bought computer equipment for cash P10, 000.

April 2 Bought Merchandise on Account from LOWTOWN Co. P15, 900 terms 2/10, n/30.

April 3 Bought Office Supplies on cash basis for P700.

April 4 Sold Merchandise on Account P15,200, FOB Destination, terms, 2/10, n/30. The cost of
merchandise sold was P12, 200.

April 5 Paid 200 Freight on April 4 Customer.

April 6 Received credit from LOWTOWN Co for merchandise returned P300.

April 11 Paid LOWTOWN.

April 13 Collected from April 4 customer.

April 14 Bought Merchandise on cash basis for P14, 400.

April 15 Salaries paid P1,500.

April 16 Borrowed money from RCBC Bank, signed a promissory note for P12, 000.

April 17 Received refund from a supplier on cash purchase of April 14, P500.

April 18 Bought merchandise from MESDA, P14, 200, FOB Shipping point terms 2/10, n/30.

April 20 Paid freight on April 18 purchase, P700.

April 23 Sold Merchandise for P16, 400. The Merchandise sold had a cost of P10, 500.

April 26 Bought Merchandise for cash, P12, 300

April 27 Paid MESDA on the April 18 purchase, 9, 000 No discount allowed on partial payment.

April 28 J Lopez got cash from the business, P2,008.

April 29 Made refund to cash customers for defective merchandise, P900.

April 30 Sold Merchandise on account, P13, 700, n/30. Cost of the Merchandise Sold is P11, 000.

April 30 Paid the following: Advertising, P1, 000; Utilities, P400; Rent, P3500; Salaries, P1,500.
 PHIL ASIA DISTRIBUTORS
GENERAL JOURNAL
As of April 30

Date Particulars Ref Debit Credit

April 1 CASH 101 39 000
LOPEZ, CAPITAL 301 39 000
To record initial investment

April 2 EQUIPMENT 150 10 000

CASH 101 10 000
To record acquisition of equipment

April 2 MERCHANDSIE INVENTORY 115 15 900

ACCOUNTS PAYABLE 201 15 900
To record merchandise inventory on account
with a term 2/10, n/30

April 3 SUPPLIES 120 700

CASH 101 700
To record acquisition of supplies

April 4 ACCOUNTS RECEIVABLE 105 15 200

SALES 401 15 200
To record sales with a term 2/10, n/30

April 4 COST OF GOOD SOLD 501 12 200

MERCHANDISE INVENTORY 115 12 200
To record cost of good sold on April 4 with a term
2/10, n/30

April 5 FREIGHT OUT 506 200

CASH 101 200
To record freight out on April 4 sale with a term
2/10, n/30

April 6 ACCOUNTS PAYABLE 201 300

MERCHANDISE INVENTORY 115 300
To record merchandise return

April 11 ACCOUNTS PAYABLE 201 15 600

MERCHANDISE INVENTORY 115 312
CASH 101 15 288
To record full payment on LOWTOWN

April 13 CASH 101 14 896

SALES DISCOUNTS 410 304
ACCOUNTS RECEIVABLE 105 15 200
To record collection

April 14 MERCHANDISE INVENTORY 115 14 400

CASH 101 14 400
To record goods bought on cash

April 15 SALARIES 530 1 500

CASH 101 1 500
To record salaries expense
April 16 CASH 101 12 000
NOTES PAYABLE 202 12 000
To record notes payable

April 17 CASH 101 500

MERCHANDISE INVENTORY 115 500
To record merchandise return

April 18 MERCHANDISE INVENTORY 501 14 200

ACCOUNTS PAYABLE 201 14 200
To record goods bought on account on April 18
with a term 2/10, n/30

April 20 MERCHANDISE INVENTORY 504 700

CASH 101 700
To record FOB Shipping point April 18
with a term 2/10, n/30

April 23 CASH 101 16 400

SALES 401 16 400
To record sales

April 23 COST OF GOOD SOLD 501 10 500

MERCHANDISE INVENTORY 115 10 500
To record cost of good sold on April 23

April 26 MERCHANDISE INVENTORY 115 12 300

CASH 101 12 300
To record goods bought

April 27 ACCOUNTS PAYABLE 201 9 000

CASH 101 9 000
To record partial payment on April 18 with a term
2/10, n/30

April 28 LOPEZ, DRAWINGS 302 2 008

CASH 101 2 008
To record withdrawal

April 29 SALES RETURNS AND ALLOWANCES 410 900

CASH 101 900
To record sales returns and allowances

April 30 ACCOUNTS RECEIVABLE 105 13 700

SALES 401 13 700
To record sales on account on April 30 with a term
n/30.

April 30 COST OF GOOD SOLD 501 11 000

MERCHANDISE INVENTORY 115 11 000
To record cost of good sold on April 30

April 30 ADVERTISING EXPENSE 505 1 000

UTILITIES 540 400
RENT EXPENSE 510 3 500
 SALARIES 530 1 500
CASH 101 6 400
To record payment of expense

GENERAL LEDGER
As of April 30

ASSETS
Cash Balance
Date Post Ref Debit Credit Debit Credit
April 1 GJ - 1 101 39 000 39 000
April 2 GJ - 1 101 10 000 29 000
April 3 GJ - 1 101 700 28 300
April 5 GJ - 1 101 200 28 100
April 11 GJ - 1 101 15 288 12 812
April 13 GJ - 1 101 14 896 27 708
April 14 GJ – 2 101 14 400 13 308
April 15 GJ - 2 101 1 500 11 808
April 16 GJ - 2 101 12 000 23 808
April 17 GJ - 2 101 500 24 308
April 20 GJ - 2 101 700 23 608
April 23 GJ - 2 101 16 400 40 008
April 26 GJ - 2 101 12 300 27 708
April 27 GJ - 2 101 9 000 18 708
April 28 GJ - 2 101 2 008 16 700
April 29 GJ - 2 101 900 15 800
April 30 GJ - 3 101 6 400 9 400
 Accounts Receivable Balance
Date Post Ref Debit Credit Debit Credit
April 4 GJ - 1 105 15 200 15 200
April 13 GJ - 1 105 15 200 0
April 30 GJ - 2 105 13 700 13 700

Merchandise Inventory Balance

Date Post Ref Debit Credit Debit Credit
April 2 GJ - 1 115 15 900 15 900
April 4 GJ - 1 115 12 200 3 700
April 6 GJ - 1 115 300 3 400
April 11 GJ - 1 115 312 3 088
April 14 GJ - 1 115 14 400 17 488
April 17 GJ – 2 115 500 16 988
April 18 GJ - 2 115 14 200 31 188
April 20 GJ - 2 115 700 31 888
April 23 GJ - 2 115 10 500 21 388
April 26 GJ - 2 115 12 300 33 688
April 30 GJ - 2 115 11 000 22 688

Supplies Balance
Date Post Ref Debit Credit Debit Credit
April 3 GJ - 1 120 700 700

Equipment Balance
Date Post Ref Debit Credit Debit Credit
April 2 GJ - 1 150 10 000 10 000

LIABILITIES
Accounts Payable Balance
Date Post Ref Debit Credit Debit Credit
April 2 GJ - 1 201 15 900 15 900
April 6 GJ - 1 201 300 15 600
April 11 GJ - 1 201 15 600 0
April 18 GJ - 2 201 14 200 14 200
April 27 GJ - 2 201 9 000 5 200
 Notes Payable Balance
Date Post Ref Debit Credit Debit Credit
April 16 GJ - 2 202 12 000 12 000

EQUITY
LOPEZ, CAPITAL Balance
Date Post Ref Debit Credit Debit Credit
April 1 GJ - 1 301 39, 000 39 000
April 30 GJ - 4 2, 296 41, 296
April 30 GJ - 4 2,008 39, 288

LOPEZ, DRAWINGS Balance

Date Post Ref Debit Credit Debit Credit
April 28 GJ – 2 302 2 008 2 008
April 30 Closing 302 2 008 0

INCOME
SALES Balance
Date Post Ref Debit Credit Debit Credit
April 4 GJ – 1 401 15 200 15 200
April 23 GJ - 2 401 16 400 31 600
April 30 GJ - 2 401 13 700 45 300
April 30 closing 401 45 300 0

SALES RETURNS AND ALLOWANCES Balance

Date Post Ref Debit Credit Debit Credit
April 29 GJ – 2 410 900 900
April 30 closing 410 900 0

SALES DISCOUNTS Balance

Date Post Ref Debit Credit Debit Credit
April 13 GJ – 1 415 304 304
April 30 closing 415 304 0

EXPENSES
COST OF GOOD SOLD Balance
Date Post Ref Debit Credit Debit Credit
April 4 GJ – 1 501 12 200 12 200
April 23 GJ - 2 501 10 500 22 700
April 30 GJ - 2 501 11 000 33 700
April 30 closing 501 33 700 0

ADVERTISING EXPENSE Balance

Date Post Ref Debit Credit Debit Credit
April 30 GJ – 2 505 1 000 1 000
April 30 closing 505 1 000 0

FREIGHT OUT Balance

Date Post Ref Debit Credit Debit Credit
April 5 GJ – 1 506 200 200
April 30 closing 506 200 0

RENT EXPENSE Balance

Date Post Ref Debit Credit Debit Credit
April 30 GJ – 2 510 3 500 3 500
April 30 closing 510 3 500 0

SALARIES Balance
Date Post Ref Debit Credit Debit Credit
April 15 GJ - 1 530 1 500 1 500
April 30 GJ – 2 530 1 500 3 000
April 30 closing 530 3 000 0

UTILITIES Balance
Date Post Ref Debit Credit Debit Credit
April 30 GJ – 2 540 400 400
April 30 closing 540 400 0

INCOME SUMMARY Balance

Date Post Ref Debit Credit Debit Credit
April 30 601 44 096 44 096
April 30 601 41 800 2 296
April 30 closing 601 2 296 0
 TRIAL BALANCE
As of April 30

Ref Particulars Debit Credit

101 Cash P 9 400
105 Accounts Receivable P 13 700
115 Merchandise Inventory P 22 688
120 Supplies P 700
150 Equipment P 10 000
201 Accounts Payable P 5 200
202 Notes Payable P 12 000
301 LOPEZ, CAPITAL P 39 000
302 LOPEZ, DRAWINGS P 2 008
401 Sales P 45 300
410 Sales Returns and Allowances P 900
415 Sales Discounts P 304
501 Cost of Good Sold P 33 700
505 Advertising P 1 000
506 Freight Out P 200
510 Rent Expense P 3 500
530 Salaries P 3 000
540 Utilities P 400
Total P 101 500 P 101 500

STATEMENT OF PERFORMANCE
As of April 30
Sales P 45 300
Less:
Sales Return and Allowances P 900
Sales Discount P 304
P 1 204
Total Sales P 44 096
Less: Cost of Good Sold P 33 700
Gross Profit on Sale P 10 396
Less: Operating Expenses
Advertising P 1 000
Freight Out P 200
Rent Expense P 3 500
Salaries P 3 000
Utilities P 400
Total Operating Expenses P 8 100
Net Income P 2 296.00

STATEMENT OF FINANCIAL POSITION

As of April 30

CURRENT ASSETS
Cash & Cash Equivalents P 9 400
Receivables P 13 700
Inventories P 22 688
Prepaid Expense P 700
TOTAL CURRENT ASSET P 46 488
NON CURRENT ASSETS
Property Plant & Equipment P 10 000
TOTAL ASSETS: P 56 488

LIABILITIES & EQUITY

CURRENT LIABILITIES
Accounts Payable P 5 200
NON CURRENT LIABILITIES
Notes Payable P 12 000
TOTAL LIABILITIES: P 17 200

EQUITY
Lopez, Capital P 39 000
Add: Net Income P 2 296
Less: Lopez, Drawings P 2 008
Total P 288
Total Equity: P 39 288
Liabilities + Equity P 56 488.00

STATEMENT OF OWNER’S EQUITY

As of April 30
Lopez, Capital P 39 000
Add: Net Income P 2 296
Less: Lopez, Drawings P 2 008
Total P 288
Total Equity: P 39 288

STATEMENT OF CASH FLOW

As of April 30
Cash flow from Operating Activities

Cash received from

Sales P 16 400.00
Receivables collection P 14 896.00
Refund from purchases P 500.00
P 31 796.00
Payment for
Office Supplies - P 700.00
Freight on good sold - P 200.00
Goods bought - P 50 988 . 00
Opex - P 7 900.00
Refund to Customers - P 900.00
Freight on purchases - P 700.00
-P 61 388.00
Net Cash flow from Operating Activities -P 29 592.00

Cash flow from Investing Activities

Computer Equipment bought -P 10 000.00

Cash flow from Financing Activities

Initial investment P 39 000.00
Borrowings P 12 000.00
 Drawings -P 2 008.00
Net cash flow from Financing Activities P 48 992.00

Increase in cash and cash equivalents P 9 400.00

Add cash and cash equivalents, BEG 0
Cash and Cash Equivalents, April 30 P 9 400.00

POST – CLOSING ENTRY

As of April 30

Date Particulars Ref Debit Credit

April 30 Sales 401 45 300
Income Summary 601 44 096
Sales Returns and Allowances 410 900
Sales Discounts 415 304
To close the sales and its related to the income and expense summary

Income Summary 601 41 800

Cost of Good Sold 501 33 700
Advertising 505 1 000
Freight Out 506 200
Rent Expense 510 3 500
Salaries 530 3 000
Utilities 540 400
To close the expenses to the income and expense summary

Income Summary 601 2 296

Lopez, Capital 301 2 296
To close the capital to the income and expense summary

Lopez, Capital 301 2 008

Lopez, Drawings 302 2 008
To close the withdrawal to the income and expense summary

CLOSING TRIAL BALANCE

As of April 30
Ref Particulars Debit Credit
101 Cash P 9 400
105 Accounts Receivable P 13 700
115 Merchandise Inventory P 22 688
120 Supplies P 700
150 Equipment P 10 000
201 Accounts Payable P 5 200
202 Notes Payable P 12 000
301 LOPEZ, CAPITAL P 39 288
Total P 56 488.00 P 56 488.00