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ABM 2 PRACTICE SET

FOR PRACTICE SET (BOOKKEEPING) (ESTIMATED NO. OF MEETINGS TO FINISH – 2 TO 3 MEETINGS)

THIS WILL BE CREDITED FOR 1 QUIZ AND 1 ASSIGNMENT (NO CREDIT WILL BE GIVEN TO STUDENTS WHO MISSED 1 MEETING AND LATE MORE THAN 20 MINUTES DURING
THE PROCESS)

Arman Barzaga owns and operates the AB Meat Mart. He opened the business on January 1, 2008 selling beef, pork, chicken, canned goods and dairy products. The following
balances for the five months of its operation are found in its general ledger and subsidiary ledger:
Cash On Hand P 75,000 Sales P258,650
Cash In Bank 154,734 Sales Discount 3,500
Accounts Receivable 10,250 Sales Returns & Allowances 2,500
Merchandise Inventory 173,800 Purchases 64,210
Prepaid Supplies 1,500 Freight In 1,105
Furniture & Equipment 17,655 Purchase Returns & 3,000
Allowances
Delivery Jeep 215,200 Purchase Discount 1,550
Accounts Payable 7,350 Utilities Expense 1,810
Notes Payable dated May 15, Repairs & Maintenance 3,755
18%, 45 days 150,000 Taxes & Licenses Expense 3,000
Withholding Taxes Payable 2,990 Sales Salaries Expense 59,850
SS and PH Premiums Payable 2,700 Input Tax 6,500
Pag-ibig Premiums Payable 1,197 Commission Expense 14,500
Barzaga, Capital 471,148 Output Tax 15,800
Barzaga, Drawing 20,000 Rent Expense 75,000
SS and PH Premium Expense 8,516
HDMF Premium Expense 2,000
Accounts Receivable:
Auring Cold Store P1,450 Dated May 25
Ben Sunga 2,500 April 12
Chit Grocery 3,750 May 5
Virgie Meat Mart 2,550 May 30
Accounts Payable:
Joffre's Farm P2,450 Dated May 29, 2/10, n/30
Josie's Chicken House 2,500 May 25, 2/15, n/30
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Johnny's Piggery 2,400 May 25, 2/15, n/30

Open the subsidiary ledgers and place the balances of the customers' and creditors' accounts. Journalize the following transactions and make immediate postings to the
subsidiary ledgers. Term of account sale is 2/10, n/30, for all customers. All collections are immediately deposited. All payments are made by checks if over P5,000. VAT of 12%
already included in all invoices.
June 1 Purchased beef from Joffre's Farm, P2,464.
Terms: 20% down, balance 2/10, n/30.
3 Purchased chicken and eggs from Josie's Chicken House, P3,360 list price.
Terms: Cash less 5% trade discount.
A helper got a cash advance of P150, to be deducted from his salary at the end of the
month.
4 Sold goods to Auring Cold Store P6,160 on account.
5 Paid for gas & oil, P336.
7 Sold goods to Myrna's Variety Store, P15,680 and received a 15 day 18% promissory
note.
8 Chit Grocery paid for its account.
Paid BIR for the withholding tax, SS, PhilHealth and HDMF for the premiums.
9 Virgie Meat Mart paid P1,500 to apply to its account.
10 Cash sales to date, P14,000.
12 Paid for repairs and maintenance of jeep, P500.
Paid BIR for the VAT.
14 Issued a credit memo to Myrna's Variety Store for spoiled goods returned worth
P336.
5 Paid Josie's Chicken House in full with a check.
18 Bought pork from Johnny's Piggery, P3,080. Terms: 50% down, balance 2/15,
n/30. Freight of P150 FOB Destination.
20 Cash purchases, P4,480.
21 Ben Sunga issued a 30 day 10% promissory note for his account which was past
due.
23 Myrna's Variety Store paid for its note. Made a cash deposit.
25 Delivered some goods to Chit Grocery on account, P2,240.
28 Auring Cold Store paid its May account.
29 Paid the notes discounted by PNB which matures today.
30 Paid for rent, P3,000 and utility, P850.
Cash sales to date, P13,440.
Paid for salaries, P5,000 less withholding tax P300, SS and Medicare premiums
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P200 and the cash advance.

2. a) Using problem 8, open the general ledger, and post the entries. Extract the balances and prepare the trial balance as of June 30. Prepare a schedule of accounts receivable
and accounts payable and reconcile with the control accounts.
b) From the trial balance prepare financial statements assuming the goods on hand amounted to P60,685. Close Output Tax and Input tax to VAT Payable. Utilities, rent and
salaries are two-thirds selling expenses.
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ACCOUNTS PAYABLE SUBSIDIARY LEDGERS

SUPPLIERS' CARDS
Name:
Date Explanation Ref Debit Credit Balance

Name:

Date Explanation Ref Debit Credit Balance

Name:

Date Explanation Ref Debit Credit Balance

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Name:

Date Explanation Ref Debit Credit Balance

Name:

Date Explanation Ref Debit Credit Balance

Name:

Date Explanation Ref Debit Credit Balance

ACCOUNTS RECEIVABLE SUBSIDIARY LEDGERS

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CUSTOMERS’ CARDS
Name:
Date Explanation Ref Debit Credit Balance

Name:
Date Explanation Ref Debit Credit Balance

Name:
Date Explanation Ref Debit Credit Balance

Name:

Date Explanation Ref Debit Credit Balance

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Name:

Date Explanation Ref Debit Credit Balance

Name:

Date Explanation Ref Debit Credit Balance

GENERAL LEDGERS

Date Particulars F Debit Date Particulars F Credit

Date Particulars F Debit Date Particulars F Credit

8

Date Particulars F Debit Date Particulars F Credit

Date Particulars F Debit Date Particulars F Credit

Date Particulars F Debit Date Particulars F Credit

Date Particulars F Debit Date Particulars F Credit

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GENERAL LEDGERS

Date Particulars F Debit Date Particulars F Credit

Date Particulars F Debit Date Particulars F Credit

Date Particulars F Debit Date Particulars F Credit

10

Date Particulars F Debit Date Particulars F Credit

Date Particulars F Debit Date Particulars F Credit

Date Particulars F Debit Date Particulars F Credit

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GENERAL LEDGERS

Date Particulars F Debit Date Particulars F Credit

Date Particulars F Debit Date Particulars F Credit

Date Particulars F Debit Date Particulars F Credit

Date Particulars F Debit Date Particulars F Credit

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Date Particulars F Debit Date Particulars F Credit

Date Particulars F Debit Date Particulars F Credit

GENERAL LEDGERS

Date Particulars F Debit Date Particulars F Credit

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Date Particulars F Debit Date Particulars F Credit

Date Particulars F Debit Date Particulars F Credit

Date Particulars F Debit Date Particulars F Credit

Date Particulars F Debit Date Particulars F Credit

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Date Particulars F Debit Date Particulars F Credit

GENERAL LDEGERS

Date Particulars F Debit Date Particulars F Credit

Date Particulars F Debit Date Particulars F Credit

Date Particulars F Debit Date Particulars F Credit

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Date Particulars F Debit Date Particulars F Credit

Date Particulars F Debit Date Particulars F Credit

Date Particulars F Debit Date Particulars F Credit

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GENERAL LEDGERS

Date Particulars F Debit Date Particulars F Credit

Date Particulars F Debit Date Particulars F Credit

Date Particulars F Debit Date Particulars F Credit

Date Particulars F Debit Date Particulars F Credit

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Date Particulars F Debit Date Particulars F Credit

Date Particulars F Debit Date Particulars F Credit

GENERAL JOURNAL
DATE ACCOUNTS & EXPLANATIONS DEBIT CREDIT
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PURCHASES JOURNAL
CASH ACCOUNTS
DATE PURCHASED FROM INV. PURCHASES INPUT TAX PURCHASES F PAYABLE
NO. Debit Debit Credit Credit
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SALES JOURNAL
ACCOUNTS
DATE CUSTOMER'S INV. F RECEIVABL CASH SALES OUTPUT
NAME NO. E DEBIT SALES CREDIT TAX
DEBIT CREDIT

CASH RECEIPTS JOURNAL

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SALES ACCOUNTS CASH

DATE RECEIVED FROM EXPLANATIONS O.R. CASH DISCOUNT F RECEIVABLE SALES SUNDRY ACCOUNT CREDIT
NO. DEBIT DEBIT CREDIT CREDIT

CASH DISBURSEMENTS JOURNAL

PURCHASE ACCOUNTS CASH
DATE PAID TO EXPLANATIONS VO.. CASH DISCOUNT PAYABLE PURCHASES SUNDRY ACCOUNT
NO. CREDIT CREDIT F DEBIT DEBIT Account Title F Debit Credit
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AB MEAT MART
TRIAL BALANCE
JUNE 30, 2008

ACCOUNT TITLE DEBIT CREDIT

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