Scribd
Upload
820 views2 pages

Davao Laundry Services Accounting

Mr. Severo Santos opened Davao Laundry Services in March 20A with an initial investment of P850,000. He purchased inventory of P90,000 on account from various suppliers and laundry machines for P150,000 in cash. The laundry services rendered P80,000 to various hotels on account. Expenses for the month included taxes and licenses of P4,000, cash withdrawal of P10,000 for personal use, interest and bank charges of P1,000, and salaries and rent totaling P27,000. Partial payment of P60,000 was made to suppliers.

Uploaded by

Sweet Angel 0721
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
820 views2 pages

Davao Laundry Services Accounting

Mr. Severo Santos opened Davao Laundry Services in March 20A with an initial investment of P850,000. He purchased inventory of P90,000 on account from various suppliers and laundry machines for P150,000 in cash. The laundry services rendered P80,000 to various hotels on account. Expenses for the month included taxes and licenses of P4,000, cash withdrawal of P10,000 for personal use, interest and bank charges of P1,000, and salaries and rent totaling P27,000. Partial payment of P60,000 was made to suppliers.

Uploaded by

Sweet Angel 0721
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Davao Laundry Services

Investment by owner
March 1 – Mr. Severo Santos opens a current account with Allied Banking
Corporation in the amount of P850,000 to start with his laundry shop business under the
trade name Davao Laundry Services.
March 2 – Purchased laundry supplies inventory on account, P90,000 from the
following suppliers:
SM City – Davao P 35,000
Gaisano Mall 25,000
NCCC Mall 30,000
Total Payable P 90,000

March 3 – Purchase of laundry machine for cash, P150,000.


March 4 – Rendered laundry services on account, P80,000 to the following customers:
Apo View Hotel P 5,000
Grand Men Seng Hotel 35,000
The Marco Polo Hotel 30,000
Royal Mandaya Hotel 10,000
Total Receivable 80,000

March 10 – Paid taxes and licenses due to government, P4,000.


March 12 – Mr. Santos withdrew P10,000 cash from the business for his personal use.
March 17 – The business borrowed money from Land Bank of the Philippines P100,000
by issuing a 15-day note. It was deposited to the account of Davao Laundry Services by
way of a Credit Memorandum issued by the bank.
March 17 – The bank issued a debit memo, P1,000 for interest and bank charges.
March 21 – Received cash of P45,000 representing collection from the following
customer’s account:
Grand Men Seng Hotel P30,000
The Marco Polo Hotel 10,000
Royal Mandaya Hotel 5,000
Total Collection 45,000
March 25 – Partial payment of accounts, P60,000 to the following suppliers:
SM City P25,000
Gaisano Mall 20,000
NCCC Mall 15,000
Total Payable 60,000
March 30 - Mr. Severo Santos ‘hired an accountant/manager for his business as he has
plenty of things to attain to at P10,000 per month effective April 1, 20A.
March 30 - The following expenses were paid by Davao Laundry Services for the
month of March 20A:
Space Rental P5,000
Telephone, light water 12,000
Salaries of Employees (contractual) 10,000
Total Expenses Paid 27,000

Davao Laundry Services Investment by owner March 1 – Mr. Severo Santos opens a current account with Allied Banking Corporati
Royal Mandaya Hotel 5,000

You might also like