Maja’s Consultancy

CHART OF ACCOUNTS
CASH ACCOUNTS PAYABLE
ACCOUNTS RECEIVABLE NOTES PAYABLE
ALLOWANCE FOR DOUBTFUL SALARIES PAYABLE
ACCOUNTS
NOTES RECEIVABLE RUTH, CAPITAL
PREPAID RENT RUTH, DRAWING
OFFICE SUPPLIES INCOME SUMMARY
OFFICE EQUIPMENT
ACCUMULATED DEPRECIATION
-OFFICE EQUIPMENT
FURNITURES & FIXTURES
ACCUMULATED DEPRECIATION
-FURNITURES & FIXTURES
CHART OF ACCOUNTS
CONSULTING REVENUE

SALARIES EXPENSE
PERMIT & LICENSES
DEPRECIATION EXPENSE – OFFICE EQUIPMET
DEPRECIATION EXPENSE - FURNITURES & FIXTURES
GAS EXPENSE
TELECOMMUNICATION EXPENSE
UNCOLLECTIBLE ACCOUNT EXPENSE
RENT EXPENSE
September 1.
Maja Ruth invested P300,000 as initial account of his
capital.

4
September 1. Maja Ruth invested P300,000 as initial account of his
capital.

Cash 300,000
Ruth, Capital 300,000

5
September 1.
Bought office supplies costing P15,000.

6
September 1. Bought office supplies costing P15,000 .
Office Supplies 15,000
Cash 15,000

7
September 1.
Purchased photocopying machine amounting P32,000 from
Pokmaru Company with a down payment of 50% and the
balance payable in 90 days.

Promissory Note

8
September 1. Purchased photocopying machine amounting P32,000
from Pokmaru Company with a down payment of 50% and the
balance payable in 90 days.
Sales Invoice [ promisory note]

Office Equipment 32,000

Cash 16,000
Notes Payable 16,000

9
✘ September 1.
Paid rent expense for three months,
P21,000.

10
September 1. Paid rent expense for three months, P21,000.

Prepaid Rent 21,000

Cash 21,000

11
September 3.
Office tables and chairs were purchased for cash,
P9,000.

12
September 3. Office tables and chairs were purchased for cash,
P9,000.

Furnitures & Fixtures 9,000

Cash 9,000

13
September 4.
Received cash from a client due to overhauled
consulting services for P6,000

14
September 4. Received cash from a client due to overhauled
consulting services for P6,000

Cash 6,000
Consulting Revenue 6,000

15
September 6.
Billed client for services rendered, P30,000

16
September 6. Billed client for services rendered, P30,000

Accounts Receivable 30,000

Consulting Revenue 30,000

17
September 7.
Paid business permit and license fee to the city hall.

18
September 7. Paid business permit and license fee to the city hall.

Permit and Licenses 1,000

Cash 1,000

19
September 8.
Borrowed money from Security Bank, P20,000

20
September 8. Borrowed money from Security Bank, P20,000

Cash 20,000
Notes Payable 20,000

21
✘ September 8. Received
a 60-day note from a
client for services
rendered, P17,000.

22
September 8. Received a 60-day note from a client for services rendered,
P17,000.

Notes Receivable 17,000

Consulting Revenue 17,000

23
September 11.
Bought filling cabinets from Faasa Trading P12,500,
terms 15 days

24
September 11. Bought filling cabinets from Faasa Trading P12,500,
terms 15 days

Furnitures & Fixtures 12,500

Notes Payable 12,500

25
September 12.
Maja withdrew P8,000 cash for personal use

26
September 12. Maja withdrew P8,000 cash for personal use

Ruth, Drawing 8,000

Cash 8,000

27
September 15.
Paid P15,000 for salaries of the employees.

28
September 15. Paid P15,000 for salaries of the employees.

Salaries Expense 15,000

Cash 15,000

29
September 18.
Received a check from Pafall A Co. amounting to
P15,000 for consulting services rendered

30
September 18. Received a check from Pafall A Co. amounting to
P15,000 for consulting services rendered

Cash 15,000
Consulting Revenue 15,000

31
September 20.
Sent an e-mail to Ghoster Corp. for services rendered
in the amount of P30,000.

32
Accounts Receivable 30,000
Consulting Revenue 30,000
33
September 21.
Paid P600 gasoline used in the business

34
September 21. Paid P600 gasoline used in the business

Gas Expense 600

Cash 600

35
September 24.
Issued a promissory note to Pabebe Enterprise
P32,000 for a computer and printer bought.

36
September 24. Issued a promissory note to Pabebe Enterprise
P32,000 for a computer and printer bought.

Office Equipment 32,000

Notes Payable 32,000

37
September 26.
Paid MERALCO an amount of P4,800 and P1,200 to
Manila Waters.

38
September 26. Paid MERALCO an amount of P4,800 and P1,200 to
Manila Waters.

Utilities Expense 6,000

Cash 6,000

39
September 27.
Paid Petron P600 for the gasoline.

40
Gasoline Expense 600
Cash 600

41
September 30.
Received partial collection from clients who were billed
last September 8 amounting to P12,000.

42
September 30. Received partial collection from clients who were
billed last September 8 amounting to P12,000.

Cash 12,000
Notes Receivable 12,000
43
September 30.
Paid salaries expense of P15,000

44
 September 30. Paid salaries expense of P15,000

Salaries Expense 15,000

Cash 15,000

45
ADJUSTING ENTRIES

46
A. Per count, the office supplies on hand amounted to
P2,000.

47
A. Per count, the office supplies on hand amounted to P2,000.

Supplies Expense 13,000

Office Supplies 13,000

48
B. Received the September billing from PLDT,
P1,500.

49
 B. Received the September billing from PLDT, P1,500.

Telecommunication Expense 1,500

Accounts Payable 1,500

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C. 1% of accounts receivable is uncollectible.

51
 c. 1% of accounts receivable is uncollectible.

Uncollectible Account Expense 600

Allowance for Uncollectible Accounts 600
60,000 x 0.01

52
Depreciation:
(a) Office Equipment has a useful life of 10 years with
P5,000 salvage value; and
(b) Furniture & Fixtures has a depreciable cost of P3,000
annually.

53
 Office Equipment has a useful life of 10 years with P5,000 salvage
value

Depreciation Expense – Office Equipment 491.67

Accumulated Depreciation – Office Equipment 491.67
[(64,000 – 5000)/10] x 1/12

54
Furniture & Fixtures has a depreciable cost of P3,000 annually

Depreciation Expense – Furniture & Fixtures 250

Accumulated Depreciation – Furniture & Fixtures 250
3,000 x 1/12

55
e. Accrued salaries amounted to P3,500.

56
 e. Accrued salaries amounted to P3,500 .
Salaries Expense 3,500
Salaries Payable 3,500

57
f. One-third of prepaid rent is already incurred.

58
 f. One-third of prepaid rent is already incurred .
Rent Expense 7,000
Prepaid Rent 7,000

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✘End!!!!

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