VICE STORE
CHART OF ACCOUNTS
Assets Account No.
Current Assets
CASH 100
ACCOUNTS RECEIVABLE 110
MERCHANDISE INVENTORY 115
SUPPLIES 120
Liabilities
Current Liabilities
ACCOUNTS PAYABLE 300
Owner’s Equity
VICE, CAPITAL 400
VICE, DRAWING 401
Revenue
SALES 500
SALES DISCOUNT 510
SALES RETURN AND ALLOWANCES 520
Expenses
COST OF GOOD SOLD 600
SALARIES EXPENSE 700
RENT EXPENSE 710
UTILITIES EXPENSE 715
INCOME SUMMARY 800
General Journal
Date Account Name and Explanation P.R. Debit Credit
JULY 1 CASH 100 P50,000.00
VICE, CAPITAL 400 P50,000.00
TO RECORD BEGINNING CAPITAL.
1 MERCHANDISE INVENTORY 115 50,000
ACCOUNTS PAYABLE 300 50,000
TO RECORD MERCHANDISE PURCHASE ON ACCOUNT.
2 ACCOUNTS RECEIVABLE 110 8,000
SALES 500 8,000
TO RECORD SOLD MERCHANDISE ON ACCOUNT
COST OF GOOD SOLD 100 4,000
MERCHANDISE INVENTORY 115 4,000
TO RECORD COST OF MERCHANDISE SOLD.
5 ACCOUNTS PAYABLE 300 2,000
MERCHANDISE INVENTORY 115 2,000
TO RECORD RETURN MECHANDISE.
8 CASH 100 7,840
SALES DISCOUNT 510 160
ACCOUNTS RECEIVABLE 110 8,000
TO RECORD COLLECTION ON ACCOUNT.
10 ACCOUNTS PAYABLE 300 48,000
MERCHANDISE INVENTORY 115 960
CASH 100 47,040
TO RECORD PAYMENT WITH DISCOUNT.
11 SUPPLIES 120 3,000
CASH 100 3,000
TO RECORD COLLECTION ON ACCOUNT W/DISCOUNT.
Date Account Name and Explanation Ref. Debit Credit
JULY 13 MERCHANDISE INVENTORY 115 P25,000.00
CASH 100 P25,000.00
TO RECORD PURCHASE MERCHANDISE.
15 CASH 100 2,000
MERCHANDISE INVENTORY 115 2,000
TO RECORD RETURNED OF MERCHANDISE.
17 MERCHANDISE INVENTORY 115 19,000
ACCOUNTS PAYABLE 300 19,000
TO RECORD MERCHANDISE PURCHASE ON ACCOUNT.
19 MERCHANDISE INVENTORY 115 500
CASH 100 500
TO RECORD PAYMENT FOR SHIPPING.
24 CASH 100 9,600
SALES 500 9,600
TO RECORD SOLD MERCHANDISE.
COST OF GOOD SOLD 100 4,800
MERCHANDISE INVENTORY 115 4,800
TO RECORD COST OF MERCHANDISE SOLD.
25 VICE, DRAWINGS 401 2,000
CASH 100 2,000
TO RECORD WITHDREW CASH.
25 MERCHANDISE INVENTORY 115 10,000
ACCOUNTS PAYABLE 300 10,000
TO RECORD MERCHANDISE PURCHASE ON ACCOUNT.
27 ACCOUNTS PAYABLE 300 19,000
MERCHANDISE INVENTORY 115 380
CASH 100 18,620
TO RECORD PAYMENT WITH DISCOUNT.
Date Account Name and Explanation Ref. Debit Credit
JULY 28 SALES RETURN AND ALLOWANCES 520 P1,000.00
CASH 100 P1,000.00
TO RECORD REFUND FOR MERCHANDISE.
30 SALARIES EXPENSE 700 6,000
UTILITIES EXPENSE 715 2,100
RENT EXPENSE 710 3,500
CASH 100 11,600
TO RECORD PAYMENT FOR EXPENSES.
31 ACCOUNT RECEIVABLE 110 30,000
SALES 500 30,000
TO RECORD SOLD MERCHANDISE ON ACCOUNT.
COST OF GOOD SOLD 100 4,800
MERCHANDISE INVENTORY 115 4,800
TO RECORD COST OF MERCHANDISE SOLD.
General Ledger
ACCOUNT TITLE: CASH ACCOUNT NO. 100
Balance
Date Description PR Debit Credit Debit Credit
JULY 1 BEGINNING BALANCE GJ1 P50,000.00 P50,000.00
8 COLLECTION ON ACCOUNT GJ1 7,840 57,840
10 PAYMENT ON ACCOUNT GJ1 P47,040.00 10,800
11 PURCHASE SUPPLIES GJ1 3,000 7,800
13 PURCHASE MERCHANDISE GJ2 25,000 P17,200.00
15 RETURNED PURCHASE GJ2 2,000 15,200
MERCHANDISE
19 PAYMENT FOR SHIPPING GJ2 500 15,700
24 SOLD MERCHANDISE GJ2 9,600 6,100
25 WITHDREW CASH GJ2 2,000 8,100
27 PAYMENT ON ACCOUNTS GJ2 18,620 26,720
28 RETURNED SOLD GJ3 1,000 27,720
MERCHANDISE
30 PAYMENT OF EXPENSES GJ3 11,600 P39,320.00
ACCOUNT TITLE: ACCOUNT RECEIVABLE ACCOUNT NO. 110
Balance
Date Description PR Debit Credit Debit Credit
JULY 2 SOLD MERCHANDISE GJ P8,000.00 P8,000.00
1
3 COLLECTION ON ACCOUNT GJ 8,000 0
1
31 SOLD MERCHANDISE GJ 30,000 P30,000.00
3
ACCOUNT TITLE: MERCHANDISE INVENTORY ACCOUNT NO. 115
Balance
Date Description PR Debit Credit Debit Credit
JULY 1 PURCHASE MERCHANDISE GJ1 P50,000.00 P50,000.00
2 SOLD MERCHANDISE GJ1 P4,000.00 46,000
5 RETURNED MERCHANDISE GJ1 2,000 44,000
10 DISCOUNT ON PURCHASE GJ1 960 43,040
13 PURCHASE MERCHANDISE GJ2 25,000 68,040
15 RETURN PURCHASE GJ2 2,000 66,040
17 PURCHASE MERCHANDISE GJ2 19,000 85,040
19 PAYMENT FOR SHIPPING GJ2 500 85,540
24 SOLD MERCHANDISE GJ2 4,800 80,740
25 PURCHASE MERCHANDISE GJ2 10,000 90,740
27 DISCOUNT ON PURCHASE GJ2 370 90,370
31 SOLD MERCHANDISE GJ3 15,000 P75,350.00
ACCOUNT TITLE: SUPPLIES ACCOUNT NO. 120
Balance
Date Description PR Debit Credit Debit Credit
JULY 11 PURCHASE SUPPLIES GJ1 P3,000.00 P3,000.00
ACCOUNT TITLE: ACCOUNTS PAYABLE ACCOUNT NO. 300
Balance
Date Description PR Debit Credit Debit Credit
JULY 1 PURCHASE MERCHANDISE GJ1 P50,000.00 P50,000.00
5 RETURNED MERCHANDISE GJ1 P2,000.00 48,0000
10 DISCOUNT ON PURCHASE GJ1 48,000 0
17 PURCHASE MERCHANDISE GJ2 19,000 19,000
25 PURCHASE MERCHANDISE GJ2 10,000 29,000
27 DISCOUNT ON PURCHASE GJ2 18,500 P10,500.00
ACCOUNT TITLE: VICE, CAPITAL ACCOUNT NO. 400
Balance
Date Description PR Debit Credit Debit Credit
JULY 1 INITIAL INVESTMENT GJ1 P50,000.00 P50,000.00
31 CLOSING ENTRIES GJ4 11,040 61,040
31 CLOSING ENTRIES GJ4 2,000 P59,040.00
ACCOUNT TITLE: VICE, DRAWING ACCOUNT NO. 401
Balance
Date Description PR Debit Credit Debit Credit
JULY 25 WITHDREW CASH GJ2 P2,000.00 P2,000.00
31 CLOSING ENTRIES GJ4 P2,000.00 0
ACCOUNT TITLE:SALES ACCOUNT NO. 500
Balance
Date Description PR Debit Credit Debit Credit
JULY 2 SOLD MERCHANDISE GJ1 P8,000.00 P8,000.00
24 SOLD MERCHANDISE GJ2 9,600 17,600
31 SOLD MERCHANDISE GJ3 30,000 P47,600.00
31 CLOSING ENTRIES GJ4 P47,600.00 0
ACCOUNT TITLE: SALES DISCOUNT ACCOUNT NO. 510
Balance
Date Description PR Debit Credit Debit Credit
JULY 8 COLLECTION WITH GJ1 P160.00 P160.00
DISCOUNT
31 CLOSING ENTRIES GJ4 P160.00 0
ACCOUNT TITLE: SALES RETURN AND ALLOWANCES ACCOUNT NO. 520
Balance
Date Description PR Debit Credit Debit Credit
JULY 28 REFUND FOR CUSTOMER GJ3 P1,000.00 P1,000.00
31 CLOSING ENTRIES GJ4 P1,000.00 0
ACCOUNT TITLE: COST OF GOOD SOLD ACCOUNT NO. 600
Balance
Date Description PR Debit Credit Debit Credit
JULY 2 COST OF MERCHANDISE GJ P4,000.00 P4,000.00
SOLD 1
24 COST OF MERCHANDISE GJ 4,800 8,800
SOLD 2
31 COST OF MERCHANDISE GJ 15,000 P23,800.00
SOLD 3
31 CLOSING ENTRIES GJ P23,800.00 0
4
ACCOUNT TITLE: SALARIES EXPENSE ACCOUNT NO. 700
Balance
Date Description PR Debit Credit Debit Credit
JULY 30 PAYMENT FOR SALARY GJ3 P6,000.00 P6,000.00
31 CLOSING ENTRIES GJ4 P6,000.00 0
ACCOUNT TITLE: RENT EXPENSE ACCOUNT NO. 710
Balance
Date Description PR Debit Credit Debit Credit
JULY 30 PAYMENT FOR RENT GJ3 P3,500.00 P3,500.00
31 CLOSING ENTRIES GJ4 P3,500.00 0
ACCOUNT TITLE: UTILITIES EXPENSE ACCOUNT NO. 715
Balance
Date Description PR Debit Credit Debit Credit
JULY 30 PAYMENT FOR BILLS GJ3 P2,100.00 P2,100.00
31 CLOSING ENTRIES GJ4 P2,100.00 0
ACCOUNT TITLE: INCOME SUMMARY ACCOUNT NO. 800
Balance
Date Description PR Debit Credit Debit Credit
JULY 31 CLOSE REVENUE GJ4 P46,440.00 P46,440.00
ACCOUNT
CLOSE EXPENSE ACCOUNT GJ4 P35,400.00 11,040
CLOSE INCOME SUMMARY GJ4 11,040 0
TO CAPITAL ACCOUNT
VICE STORE
TRIAL BALANCE
AS OF THE MONTH ENDED JULY 31, 2023
Acc. No. Account Tittles Debit Credit
100 CASH (P39,320.00)
110 ACCOUNTS RECEIVABLE 30,000
115 MERCHANDISE INVENTORY 75,360
120 SUPPLIES 3,000
300 ACCOUNTS PAYABLE P10,000.00
400 VICE, CAPITAL 50,000
401 VICE, DRAWING 2,000
500 SALES 47,600
510 SALES DISCOUNT 160
520 SALES RETURN AND ALLOWANCES 1,000
600 COST OF GOOD SOLD 23,800
700 SALARIES EXPENSE 6,000
710 RENT EXPENSE 3,500
715 UTILITIES EXPENSE 2,100
TOTAL: P107,600.00 P107,600.00
VICE STORE
STATEMENT OF FINANCIAL PERFORMANCE
AS OF THE MONTH ENDED JULY 31, 2023
RECEIVED FROM SALES:
SALES P47,600.00
LESS: SALES DISCOUNT P160.00
SALES RETURN AND ALLOWANCES 1,000 1,160
NET SALES: P46,440.00
COST OF GOOD SOLD 23,800
GROSS PROFIT: P22,640.00
OPERATING EXPENSE
UTILITIES EXPENSE 2,100
RENT EXPENSE 3,500
SALARIES EXPENSE 6,000 11,600
NET INCOME: P11,040.00
VICE STORE
STATEMENT OF CHANGES IN OWNER’S EQUITY
AS OF THE MONTH ENDED JULY 31, 2023
VICE, OWNER’S EQUITY 07/1/2023 P50,000.00
NET INCOME P11,040.00
LESS: VICE, DRAWINGS 2,000
INCREASE IN OWNER’S EQUITY P9,040.00
VICE, OWNER’S EQUITY 07/31/2023 P59.040.00
VICE STORE
STATEMENT OF FINANCIAL POSITION
AS OF THE MONTH ENDED JULY 31, 2023
Assets
Current Assets
CASH (P39,320.00)
ACCOUNTS RECEIVABLE 30,000
MERCHANDISE INVENTORY 75,360
SUPPLIES 3,000
TOTAL CURRENT ASSETS: P69,040.00
TOTAL ASSETS: P69,040.00
Liabilities
Current Liabilities
ACCOUNTS PAYABLE 10,000
TOTAL CURRENT LIABILITIES: P10,000.00
TOTAL LIABILITIES: P10,000.00
Owner’s Equity
Vice, Owner’s Equity 7/31/2023 P59.040.00
TOTAL LIABILITIES AND OWNER’S P69,040.00
EQUITY
VICE STORE
STATEMENT OF CASH FLOW
AS OF THE MONTH ENDED JULY 31, 2023
Cash flow from OPERATING ACTIVITIES
Cash received from customers P17,440.00
Cash received from return merchandise 2,000
Payment on Account P65,660.00
Payment for shipping 500
Payment for expenses 11,600
Payment for return merchandise 1,000 78,760
Net Cash provided (used in) OPERATING (P59,320.00)
ACTIVITIES
Cash flow from INVESTING ACTIVITIES
Purchase supplies 3,000
Purchase merchandise 25,000
Net Cash provided (used in) INVESTING 28,000
ACTIVITIES
Cash flow from FINANCING ACTIVITIES
Initial Investment 50,000
Withdrew Cash (2,000)
Net Cash provided (used in) FINANCING 48,000
ACTIVITIES
Net decrease in Cash (P39,040.00)
Cash balance at the beginning of the period 0
Cash balance at the end of the period (P39,040.00)
VICE STORE
CLOSING ENTRIES
Date Account Name and Explanation P.R. Debit Credit
JULY 31 SALES 500 P47,600.00
SALES DISCOUNT 510 P160.00
SALES RETURN AND ALLOWANCES 515 1,000
INCOME SUMMARY 800 46,440
TO CLOSE REVENUES ACCOUNT TO INCOME
SUMMARY ACCOUNT.
31 INCOME SUMMARY 800 35,400
SALARIES EXPENSE 700 6,000
RENT EXPENSE 710 3,500
UTILITIES EXPENSE 715 2,100
COST OF GOOD SOLD 600 23,800
TO CLOSE EXPENSE ACCOUNT TO INCOME SUMMARY
ACCOUNT.
31 INCOME SUMMARY 800 11,040
VICE, CAPITAL 400 11,040
TO CLOSE INCOME SUMMARY ACCOUNT TO CAPITAL
ACCOUNT.
31 VICE, CAPITAL 400 2,000
VICE, DRAWING 401 2,000
TO CLOSE DRAWING ACCOUNT TO CAPITAL
ACCOUNT.
VICE STORE
POST CLOSING TRIAL BALANCE
FOR THE MONTH ENDED JULY 31, 2023
Acc. No. Account Tittles Debit Credit
100 CASH (P39,320.00)
110 ACCOUNTS RECEIVABLE 30,000
115 MERCHANDISE INVENTORY 75,360
120 SUPPLIES 3,000
300 ACCOUNTS PAYABLE P10,000.00
400 VICE, OWNER’S EQUITY 7/31/2023 59,040
TOTAL: P69,040.00 P69,040.00