INVENTORY SYSTEM

Perpetual Method

Pag ikaw ang bibili:

Merchandise Inventory
Cash / Accounts Payable (Pag may terms of payment example: 2/10, n/30 mga ganun)

Pag ikaw magbebenta:

Cash / Accounts Receivable (Pag may terms of payment example: 2/10,n/30 mga ganun)
Sales

Cost of Sales
Merchandise Inventory

*Laging may nakasunod na entry ng Debit: Cost of Sales at Credit: Merchandise Inventory pag
nagbenta ka
*Lagi din given na yung Cost of Sales

Periodic Method

Pag ikaw ang bibili:

Purchases
Cash / Accounts Payable (Pag may terms of payment example: 2/10, n/30 mga ganun)

Pag ikaw magbebenta:

Cash / Accounts Receivable (Pag may terms of payment example: 2/10,n/30 mga ganun)
Sales

*Wala ng kasunod na entry. Malalaman mo lang yung Merchandise Inventory pag nagPhysical
Inventory ka at the end of the period, kaya Periodic method

DISCOUNT

Pwede magkadiscount whether ikaw yung bumili or ikaw yung nagbenta depending on terms of
agreement at klase ng discount

Invoice Price
Final na price after mabawasan ng mga discounts. Sales Invoice Price pag nagbenta ka,
Purchase Invoice Price pag bumili ka
Trade Discount
• Sequential (Discount ng Discount base sa mga mga Balance na nakukuha)
Example: List Price
Less: 1st Trade Discount
Balance
Less: 2nd Trade Discount
Sales / Purchase Invoice Price
• Reduction in Prices
• Single or Multiple discount
• NOT recorded or hindi jinoJournalize
• List Price – Trade Discount = Invoice Price

Cash Discount
• Reduction in the Invoice Price. So binabawas sya sa final na price. Binabawas sya kahit may
Trade discount na or wala pa.
• Single Discount
• RECORDED or jinoJournalize
Recorded as:
Debit: Sales Discount
Credit: Purchase Discount
• Given only for CREDIT Transactions or mga UTANG (Accounts Receivable or Accounts
Payable)

Terms of payment:
• n/30 – Payable in 30 days yung utang mo or utang sayo
• 2/10, n/30 - Payable in 30 days yung utang mo or utang sayo tapos pag nagbayad ng utang
Within 10 days, may 2% Discount sa Invoice Price or Final Price
• 3/EOM, n/30 - Payable in 30 days yung utang mo or utang sayo tapos pag nagbayad ng utang
Within the end of the month, may 3% Discount sa Invoice Price or Final Price
• 2/10,1/15,n/30 - Payable in 30 days yung utang mo or utang sayo tapos pag nagbayad ng
utang Within 10 days, may 2% Discount sa Invoice Price or Final Price, or pag nagbayad
ng utang Within 15 days, may 1% Discount sa Invoice Price or Final Price

*Basta ang dapat tandaan pag Cash Discount, yung mga 2/10,1/15,3/EOM, Yung unang number or
bago mag “/” ay Percentage ng Discount. Tapos yung number after ng “/” ay discount period or
pagbibigay ng discount Ilang days after bumili o magbenta. Yung EOM naman ay end of the
month, So may discount kapag binayaran within the end of the month yung utang.
*Tapos ang pagbilang ng discount period ay days after bumili or magbenta
Example: 2/10,n/30 October 7, 2018. So 10 days after ng October 7, 2018, pasok pa sa
discount period. October 8, 9, 10, 11, 12, 13, 14, 15, 16, 17 ay pasok sa discount
period. Sa mga date na yan, meron kang 2% discount pag nagbayad ka ng utang
(Purchase Discount kasi ikaw bumili, ikaw magbabayad) or may nagbayad sayo ng
utang (Sales Discount kasi ikaw nagbenta, sayo magbabayad).
*Tapos yung mga n/30 naman, nirerepresent lang ilang days babayaran ng walang interest. Yung
number after ng “n/” ay days kung ilang araw babayaran yung utang ng walang interest. For example,
n/30, payable within 30 days. Pag n/45, payable within 45 days.
RETURNS AND ALLOWANCES

Sales Returns and Allowances kapag ikaw ang nagbenta

Sales Returns and Allowances

Cash / Accounts Receivable (Pag may terms of payment example: 2/10,n/30 mga
ganun)

Purchase Returns and Allowances kapag ikaw ang bumili

Cash / Accounts Payable (Pag may terms of payment example: 2/10,n/30 mga ganun)
Purchase Returns and Allowances

*Pag Perpetual Method, lahat ng Discount, Freight, tsaka Returns and Allowances, Merchandise
Inventory ang ginagamit na account title instead of Discounts or Returns and Allowances.
Example:

Freight
Freight In/Out:

Merchandise Inventory
Cash / Accounts Payable (Pag may terms of payment example: 2/10,n/30 mga ganun)

Returns and Allowances

Sales Returns and Allowances:

Merchandise Inventory
Cash / Accounts Receivable (Pag may terms of payment example: 2/10,n/30 mga
ganun)

Purchase Returns and Allowances:

Cash / Accounts Payable (Pag may terms of payment example: 2/10,n/30 mga ganun)
Merchandise Inventory

Discounts
Sales Discount:

Merchandise Inventory
Cash / Accounts Receivable (Pag may terms of payment example: 2/10,n/30 mga ganun)
Sales

Purchase Discount:

Purchases
Merchandise Inventory
Cash / Accounts Payable (Pag may terms of payment example: 2/10,n/30 mga ganun)
SHIPPING AND FREIGHT PAYMENT ARRANGEMENTS

FOB means Freight On Board

FOB Destinantion
• Seller ang owner ng goods na dinedeliver
• Seller ang magbabayad
• Freight Out (Pag ikaw ang Seller)

FOB Shipping Point

• Buyer ang owner ng goods na dinedeliver
• Buyer ang magbabayad
• Freight In (Pag ikaw ang buyer)

Freight Collect
• Binayaran na ng BUYER ang freight cost

Freight Prepaid
• Binayaran na ng SELLER ang freight cost

FOB Destination, Freight Prepaid

• Seller ang magbabayad dapat, seller naman ang nagbayad

Seller’s Entry
Freight Out
Cash

FOB Destination, Freight Collect

• Seller ang dapat magbabayad, Buyer ang nagbayad

Seller’s Entry
Freight Out
Accounts Payable

Buyer’s Entry
Accounts Receivable
Cash

FOB Shipping Point, Freight Collect

• Buyer ang dapat magbayad, buyer naman ang nagbayad

Buyer’s Entry
Freight In
Cash
FOB Shippping Point, Freight Prepaid
• Buyer ang dapat magbayad, Seller ang nagbayad

Seller’s Entry
Accounts Receivable
Cash

Buyer’s Entry
Freight In
Accounts Payable

VALUE ADDED TAX

Inclusive of VAT
• Ibig sabihin, meron ng VAT
• Ang gagawin mo ngayon ay hahanapin, magkano ang VAT na included
• Idivide mo by 1.12 yung mga nakuha mo

Example:
Sales
Cash / Accounts Receivable (Pag may terms of payment example: 2/10,n/30 mga ganun)
Sales
Output Tax

*Kung magkano yung Cash or Accounts Receivable, yun yung Sales diba. Ididivide mo yun sa
1.12 para makuha yung Sales muna muna tapos iminus mo yun Cash or Accounts Receivable
para makuha yung Output tax

Purchases
Purchases
Input Tax
Cash / Accounts Payable (Pag may terms of payment example: 2/10,n/30 mga ganun)

*Kung magkano yung Cash or Accounts Payable, yun yung Purchases diba. Ididivide mo yun
sa 1.12 para makuha yung Purchases muna tapos iminus mo yun Cash or Accounts Payable
para makuha yung Input tax

Sales Returns and Allowances

Sales Returns and Allowances
Output Tax
Cash / Accounts Receivable (Pag may terms of payment example: 2/10,n/30 mga
ganun)

*Kung magkano yung Cash or Accounts Receivable, yun yung Sales Returns and Allowances
diba. Ididivide mo yun sa 1.12 para makuha yung Sales Return and Allowances muna tapos
iminus mo yun Cash or Accounts Receivable para makuha yung Output tax
Purchase Returns and Allowances
Cash / Accounts Payable (Pag may terms of payment example: 2/10,n/30 mga ganun)
Purchase Returns and Allowances
Input Tax

*Kung magkano yung Cash or Accounts Payable, yun yung Purchase Returns and Allowances
diba. Ididivide mo yun sa 1.12 para makuha yung Purchase Return and Allowances muna
tapos iminus mo yun Cash or Accounts Payable para makuha yung Input tax

Sales Discount
Sales Discount
Output Tax
Cash
Cash / Accounts Receivable (Pag may terms of payment example: 2/10,n/30 mga
ganun)

*Kung magkano yung Cash / Accounts Receivable, kuhanin mo kung ilang percent yung
discount para makuha mo yung sales discount, pero di mo pa isusulat yun, kung magkano
yung nakuha mong sales discount, idivide mo sa 1.12 para makuha yung totoong sales
discount. Tapos iminus mo yung totoong sales discount sa nauna mong nakuhang sales
discount bago idivide sa 1.12, ayun yung output tax. Tapos iminus mo yung Cash / Accounts
Receivable sa total nung totoong sales discount at output tax para makuha yung value ng
cash.

Purchase Discount
Cash / Accounts Payable (Pag may terms of payment example: 2/10,n/30 mga ganun)
Purchase Discount
Input Tax
Cash

*Kung magkano yung Cash / Accounts payable, kuhanin mo kung ilang percent yung discount
para makuha mo yung purchase discount, pero di mo pa isusulat yun, kung magkano yung
nakuha mong purchase discount, idivide mo sa 1.12 para makuha yung totoong purchase
discount. Tapos iminus mo yung totoong purchase discount sa nauna mong nakuhang
purchase discount bago idivide sa 1.12, ayun yung input tax. Tapos iminus mo yung Cash /
Accounts Payable sa total nung totoong purchase discount at input tax para makuha yung
value ng cash.

Freight In/Out
Freight In/Out
Input Tax
Cash

*Idivide mo sa 1.12 yung value nung Cash para makuha mo yung value ng Freight In/Out.
Tapos iminus mo yung Cash dun sa Value ng Freight In/Out para makuha mo Value ng Input
Tax
Exclusive of Vat
• Wala pang VAT
• Lalagyan mo palang ng VAT
• Imumultiply mo sa .12 yung mga nakuha mo para magkaroon ng VAT
Example:
Sales
Cash / Accounts Receivable (Pag may terms of payment example: 2/10,n/30 mga ganun)
Sales
Output Tax

*Kung magkano yung Sales, Imultiply mo sa .12 para makuha yung output tax. Tapos iadd mo
yung sales at output tax para makuha mo value ng Cash/Accounts Receivable

Purchases
Purchases
Input Tax
Cash / Accounts Payable (Pag may terms of payment example: 2/10,n/30 mga ganun)

*Kung magkano yung Purchases, Imultiply mo sa .12 para makuha yung input tax. Tapos iadd
mo yung purchases at input tax para makuha mo value ng Cash/Accounts Payable

Sales Returns and Allowances

Sales Returns and Allowances
Output Tax
Cash / Accounts Receivable (Pag may terms of payment example: 2/10,n/30 mga
ganun)

*Kung magkano yung Sales Returns and Allowances, Imultiply mo sa .12 para makuha yung
output tax. Tapos iadd mo yung sales returns and allowances at output tax para makuha mo
value ng Cash/Accounts Receivable

Purchase Returns and Allowances

Cash / Accounts Payable (Pag may terms of payment example: 2/10,n/30 mga ganun)
Purchase Returns and Allowances
Input Tax

*Kung magkano yung Purchase Returns and Allowances, Imultiply mo sa .12 para makuha
yung input tax. Tapos iadd mo yung purchase returns and allowances at input tax para
makuha mo value ng Cash/Accounts Payable

Sales Discount
Sales Discount
Output Tax
Cash
Cash / Accounts Receivable (Pag may terms of payment example: 2/10,n/30 mga
ganun)

*Kung magkano sales discount, imultiply mo sa .12 para makuha mo yung output tax. Tapos
iminus mo yung cash/accounts receivable sa total ng sales discount at output tax para makuha
mo value ng cash
 Purchase Discount
Cash / Accounts Payable (Pag may terms of payment example: 2/10,n/30 mga ganun)
Purchase Discount
Input Tax
Cash

*Kung magkano yung Purchase discount, imultiply mo sa .12 para makuha mo yung input tax.
Tapos iminus mo yung cash/accounts payable sa total ng purchase discount at input tax para
makuha mo value ng cash

Freight In/Out
Freight In/Out
Input Tax
Cash

*Imultiply mo sa .12 yung Freight In/Out para makuha input tax. Tapos iadd mo Input tax at
Freight In/Out para makuha mo value ng Cash.

Input Tax
• Pag ikaw ang bumili
• Ginagamit sa Freight in or Freight out kasi additional sya sa purchase at expenses

Output Tax
• Pag ikaw ang nagbenta

Output Tax – Input Tax = VAT Payable

*Kapag mas Malaki ang Output Tax kesa Input Tax, VAT Payable yun

Input Tax – Output Tax = Deferred Tax

*Kapag mas Malaki ang Input Tax kesa Output Tax, Deferred Tax yun which is a current asset