PALIT TAN Trading
Jul 1 Tan, the owner, invested P 500 000 cash and P 50 000 worth of merchandise into the business. The
merchandise has an unpaid P 10 000 account from Han to be assumed by the Business.
2 Purchased from TINDAHAN store supplies worth P 3 000 on cash basis.
3 Returned P 300 worth of store supplies purchased from TINDAHAN
4 Purchased from MERCHANT store supplies worth P 4 000 on account
5 Returned P 400 worth of store supplies purchased from MERCHANT
6 Purchased from NAMALIGYA store equipment worth P 30 000 on cash.
7 Was granted a P 2 500 allowance on store equipment purchased from NAMALIGYA
8 Purchased from REESE E LER store equipment worth P 40 000 on terms P 10 000 down
9 Was granted P 3 500 allowance on store equipment purchased from REESE E LER
10 Received from BUSECO the electric bill for the month of July. P 11 000
11 Paid rent for the six months starting July, P 120 000
Purchased from STORE merchandise on cash basis, P 10 000, FOB shipping point, collect, P800
12 Purchased from TREYDING worth P 15 000 on terms 2/10 n30
13 The owner invested additional merchandise worth, P 12 000
Purchased from TINDAHAN worth P 20 000 on terms 50% down, balance at 2/10 n30
14 Returned P 500 worth of merchandise from STORE
15 Returned P 1 000 worth of merchandise form TREYDING
Sold to REITH TYLER, P 10 000
16 Retuned P 1 500 from TINDAHAN
Sold to MARK E. TING worth P 15 000 on terms 2/10 n30
17 Paid P 2 000 in partial payment of account with TINDAHAN
Sold to BIZ NESS merchandise worth P 20 000, 50% down, balance at 2/10 n30
18 Received return of P 500 worth of merchandise from REITH TYLER
20 Received returned merchandise of P 1000 from MARK. E. TING
Received returned merchandise of P 1500 from BIZ NESS
21 Collected P 2000 from BIZ NESS for partial payment
22 Paid TREY DING in full
26 Collected in full the account with MARK E. TING
30 TAN, withdrew merchandise worth P 6 000 for personal use
Paid in full account with TINDAHAN from July 13 purchase
Collected in full the account with BIZ NESS
Additional Information
a. Merchandise inventory at July 31 is determined to be P 68 720 based on physical count
b. Salaries incurred in July but unpaid as at July 31 amounted to P 10 000
c. Store supplies used for the month of July P 4 900
d. Store equipment is estimated to have a salvage value of P 10 000 and useful life of six years
e. Rentals are assumed paid at the start of the month
Practice Set: Merchandising
Part I. As the bookkeeper of the business. Prepare the following:
1. Chart of Accounts (Journal Paper)
2. Journal Entries (Journal Paper)
3. Ledger (Ledger Paper)
4. Unadjusted Trial Balance (Journal Paper)
5. Adjusting Entries (Journal Paper)
6. Worksheet (Columnar Paper 10 columns)
7. Adjusted Trial Balance (Journal Paper)
8. Balance Sheet (Short Bond Paper)
9. Income Statement (Short Bond Paper)
10. Notes to Financial Statements (Short Bond Paper)
11. Financial Ratios (Short Bond Paper) *use only what is applicable
For Part I, you will be graded as follows:
Accuracy 40%
(Correctness of Entry made; Accuracy of figures, totals, balances)
Completeness 20%
(All transactions were recorded, all ledgers and reports were prepared)
Format 20%
(Correct and proper format, alignment, and presentation was followed)
Neatness 10%
(Minimal to less erasures/ alterations were made.
.05% deduction for every 5 erasures made)
Team Dynamics 10%
(Team work and team members’ participation)
Total 100%
Important Note:
Make your practice set diligently. This will be used for Part II by another group.
