MERCHANDISING BUSINESS

PERPETUAL SYSTEM
CHART OF ACCOUNTS
101- CASH
105- ACCOUNTS RECEIVABLE
110- MERCHANDISING INVENTORY
130- SUPPLIES
150- EQUIPMENT
201- ACCOUNTS PAYABLE
202- NOTES PAYABLE
301- MR. PING, CAPITAL
302- MR. PING, DRAWING
401- SALES
412- SALES RETURN AND ALLOWANCE
415- SALES DISCOUNTS
501- COST OF GOODS SOLD
601- ADVERTISING
610- FREIGHT OUT
630- RENT EXPENSE
640- SALARIES
650- UTILITIES
701- INCOME SUMMARY

SOTTO DISTRIBUTORS
JOURNALIZATION
DATE ACCOUNTS TITLE PR DEBIT CREDIT
JAN 1 CASH 101 P 85,000
MR. PING, CAPITAL 301 P 85,000
TO RECORD OF MR. PING INVESTMENT
2 EQUIPMENT 150 P 20,000
CASH 101 P 20,000
TO RECORD THE PURCHASE EQUIPMENT
2 MERCHANDISE INVENTORY 110 P 21,000
ACCOUNTS PAYABLE 201 P 21,000
TO RECORD THE PURCHASE MERCHANDISE
3 SUPPLIES 130 P 1,800
CASH 101 P 1,800
TO RECORD THE BOUGHT SUPPLIES
4 ACCOUNTS RECEIVABLE 105 P 28,000
SALES 401 P 28,000
4 COST OF GOODS SOLD 501 P 12,000
MERCHANDISE INVENTORY 110 P 12,000
TO RECORD THE COST OG GOODS SOLD
5 FREIGHT OUT 610 P 700
ACCOUNTS PAYABLE 201 P 700
TO RECORD THE PAYMENT FOR FREIGHT ON, SALE
6 ACCOUNTS RECEIVABLE 105 P 500
MERCHANDISING INVENTORY 110 P 500
TO RECORD TO RETURNED MERCHANDISE
11 ACCOUNTS PAYABLE 201 P 21,000
MERCHANDISING INVENTORY 110 P 630
CASH 101 P 20,370
TO RECORD THE FULL PAYMENT TO LENI SUPPLY CO.
13 CASH 101 P 27,440
SALES DISCOUNT 415 P 560
ACCOUNTS RECEIVABLE 105 P 28,000
TO RECORD THE FULL COLLECTION FROM CUSTOMERS
14 MERCHANDISING INVENTORY 110 P 21,500
CASH 101 P 21,500
TO RECORD THE BOUGHT MERCHANDISE
15 SALARIES 640 P 5,000
CASH 101 P 5,000
TO RECORD THE SALARIES EXPENSES
16 NOTES PAYABLE 202 P 35,000
ACCOUNTS PAYABLE 201 P 35,000
TO RECORD THE BORROWED MONEY FROM ISKO BANK
17 CASH 101 P 2,500
MERCHANDISE INVENTORY 110 P 2,500
TO RECORD THE RECEIVED REFUND FROM SUPPLIER
18 MERCHANDISE INVENTORY 110 P 17,000
CASH 101 P17,000
TO RECORD THE BOUGHT MERCHANDISE
20 MERCHANDISE INVENTORY 110 P 700
ACCOUNTS PAYABLE 201 P 700
TO RECORD THE PAYMENT FOR FREIGHT ON, PURCHASED
23 CASH 101 P 20,000
SALES 401 P 20,000
TO RECORD THE SOLD MERCHANDISE
26 MERCHANDISE INVENTORY 110 P 18,000
CASH 101 P 18,000
TO RECORD THE BOUGHT MERCHANDISE
27 ACCOUNTS PAYABLE 201 P 10,000
MERCHANDISE INVENTORY 110 P 10,000
TO RECORD THE PAYMENT FOR JAN. 18 PURCHASED
28 MR. PING, DRAWING 302 P 4,500
CASH 101 P 4,500
TO RECORD OF MR. PING WITHDRAWAL
29 SALES RETURN AND ALLOWANCE 412 P 1,000
CASH 101 P 1,000
TO RECORD THE MADE REFUND TO CUSTOMERS
30 ACCOUNTS RECEIVABLE 105 P 19,000
SALES 401 P 19,000
30 COST OF GOODS SOLD 501 P 1,200
MERCHANDISE INVENTORY 110 P 1,200
TO RECORD THE COST OF GOODS SOLD
30 ADVERTISING EXPENSES 601 P 1,100
UTILITIES EXPENSES 650 P 700
RENT EXPENSES 630 P 5,100
SALARIES EXPENSES 640 P 3,000
CASH 101 P 9,900
TO RECORD THE EXPENSES
 SOTTO DISTRIBUTORS
GENERAL LEDGER
ACCOUNT TITLE CASH ACCOUNTS NO. 101
DATE REMARKS PR DEBIT CREDIT BALANCES
JANUARY DEBIT CREDIT
1 INVESTMENT GJ-1 85,000 85,000
2 PURCHASED GJ-1 20,000 65,000
3 PURCHASED GJ-1 1,800 63,200
11 PAYMENT GJ-1 20,370 42,830
13 COLLECTION GJ-1 27,440 70,270
14 PURCHASED GJ-1 21,500 48,770
15 PAYMENT GJ-1 5,000 43,770
17 COLLECTION GJ-1 2,500 46,270
18 PURCHASED GJ-1 17,000 29,270
23 COLLECTION GJ-1 20,000 49,270
26 PURCHASED GJ-1 18,000 31,270
28 DRAWING GJ-1 4,500 26,770
29 PAYMENT GJ-1 1,000 25,770
30 COLLECTION GJ-1 19,000 44,770
30 EXPENSES GJ-1 9,900 34,870

ACCOUNT TITLE ACCOUNTS RECEIVABLE ACCOUNTS NO. 105

DATE REMARKS PR DEBIT CREDIT BALANCES
JANUARY DEBIT CREDIT
4 COLLECTION GJ-1 28,000 28,000
6 COLLECTION GJ-1 500 28,500
13 COLLECTION GJ-1 28,000 500
30 COLLECTION GJ-1 19,000 19,500

ACCOUNT TITLE MERCHANDISE INVENTORY ACCOUNTS NO. 110

DATE REMARKS PR DEBIT CREDIT BALANCES
JANUARY DEBIT CREDIT
2 PURCHASED GJ-1 21,000 21,000
4 COLLECTION GJ-1 12,000 9,000
6 COLLECTION GJ-1 500 8,500
11 PURCHASED GJ-1 630 7,870
14 PURCHASED GJ-1 21,500 29,370
17 PURCHASED GJ-1 2,500 26,870
18 PURCHASED GJ-1 17,000 43,870
20 PAYMENT GJ-1 700 44,570
26 PURCHASED GJ-1 18,000 62,570
 27 PAYMENT GJ-1 10,000 52,570
30 COLLECTION GJ-1 1,200 51,370

ACCOUNT TITLE SUPPLIES ACCOUNTS NO. 130

DATE REMARKS PR DEBIT CREDIT BALANCES
JANUARY DEBIT CREDIT
3 PURCHASED GJ-1 1,800 1,800

1,800

ACCOUNT TITLE EQUIPMENT ACCOUNTS NO. 150

DATE REMARKS PR DEBIT CREDIT BALANCES
JANUARY DEBIT CREDIT
2 PURCHASED GJ-1 20,000 20,000

20,000

ACCOUNT TITLE ACCOUNTS PAYABLE ACCOUNTS NO. 201

DATE REMARKS PR DEBIT CREDIT BALANCES
JANUARY DEBIT CREDIT
2 PURCHASED GJ-1 21,000 21,000
5 PAYMENT GJ-1 700 21,700
11 PURCHASED GJ-1 21,000 700
16 BORROWED GJ-1 35,000 35,700
20 PAYMENT GJ-1 700 36.400
27 PAYMENT GJ-1 10,000 26,400

ACCOUNT TITLE NOTES PAYABLE ACCOUNTS NO. 202

DATE REMARKS PR DEBIT CREDIT BALANCES
JANUARY DEBIT CREDIT
16 BORROWED GJ-1 35,000 35,000

35,000
ACCOUNT TITLE MR. PING, CAPITAL ACCOUNTS NO. 301
DATE REMARKS PR DEBIT CREDIT BALANCES
JANUARY DEBIT CREDIT
1 INVESTMENT GJ-1 85,000 85,000

85,000

ACCOUNT TITLE MR. PING, DRAWING ACCOUNTS NO. 302

DATE REMARKS PR DEBIT CREDIT BALANCES
JANUARY DEBIT CREDIT
28 WITHDRAWAL GJ-1 4,500 4,500

4,500

ACCOUNT TITLE SALES ACCOUNTS NO. 401

DATE REMARKS PR DEBIT CREDIT BALANCES
JANUARY DEBIT CREDIT
4 COLLECTION GJ-1 28,000 28,000
23 COLLECTION GJ-1 20,000 48,000
30 COLLECTION GJ-1 19,000 67,000

ACCOUNT TITLE SALES RETURN AND ALLOWANCE ACCOUNTS NO. 412

DATE REMARKS PR DEBIT CREDIT BALANCES
JANUARY DEBIT CREDIT
29 SALES RETURN GJ-1 1,000 1,000

1,000
ACCOUNT TITLE SALES DISCOUNTS ACCOUNTS NO. 415
DATE REMARKS PR DEBIT CREDIT BALANCES
JANUARY DEBIT CREDIT
13 COLLECTION GJ-1 560 560

560

ACCOUNT TITLE COST OF GOODS SOLD ACCOUNTS NO. 501

DATE REMARKS PR DEBIT CREDIT BALANCES
JANUARY DEBIT CREDIT
4 COLLECTION GJ-1 12,000 12,000
30 COLLECTION GJ-1 1,200 13,200

13,200

ACCOUNT TITLE ADVERTISING ACCOUNTS NO. 601

DATE REMARKS PR DEBIT CREDIT BALANCES
JANUARY DEBIT CREDIT
30 EXPENSES GJ-1 1,100 1,100

1,100

ACCOUNT TITLE FREIGHT OUT ACCOUNTS NO. 610

DATE REMARKS PR DEBIT CREDIT BALANCES
JANUARY DEBIT CREDIT
5 PAYMENT GJ-1 700 700

700
ACCOUNT TITLE RENT EXPENSE ACCOUNTS NO. 630
DATE REMARKS PR DEBIT CREDIT BALANCES
JANUARY DEBIT CREDIT
30 EXPENSES GJ-1 5,100 5,100

5,100

ACCOUNT TITLE SALARIES ACCOUNTS NO. 640

DATE REMARKS PR DEBIT CREDIT BALANCES
JANUARY DEBIT CREDIT
15 EXPENSES GJ-1 5,000 5,000
30 EXPENSES GJ-1 3,000 8,000

8,000

ACCOUNT TITLE UTILITIES ACCOUNTS NO. 650

DATE REMARKS PR DEBIT CREDIT BALANCES
JANUARY DEBIT CREDIT
30 EXPENSES GJ-1 700 700

700
 SOTTO DISTRIBUTORS
TRIAL BALANCE

PR ACCOUNTS TITLE DEBIT CREDIT

101 CASH 15,870
105 ACCOUNTS RECEIVABLE 19,500
110 MERCHANDISE INVENTORY 51,370
130 SUPPLIES 1,800
150 EQUIPMENT 20,000
201 ACCOUNTS PAYABLE 26,400
202 NOTES PAYABLE 35,000
301 MR. PING, CAPITAL 85,000
302 MR. PING. DRAWING 4,500
401 SALES 67,000
412 SALES RETURN AND ALLOWANCE 1,000
415 SALES DISCOUNT 560
501 COST OF GOODS SOLD 13,200
601 ADVERTISING 1,100
610 FREIGHT OUT 700
630 RENT EXPENSES 5,100
640 SALARIES 8,000
650 UTILITIES 700
178,400 178,400