Mae Rachel Magquilat

BPA 2C

On July 1, 2024, the business was started with an initial capital investment of ₱250,000. This amount
was paid in cash and recorded as Capital.

On July 2, 2024, the business incurred ₱6,550 for Business Registration Expenses, which was paid in
cash to complete the necessary legal requirements.

On July 3, 2024, the company spent ₱100,000 on Tools and Equipment to support its operations. The
purchase was paid in full using cash.

On July 5, 2024, the business paid a total of ₱25,000 for the monthly Rent and Utilities. This was also
settled in cash.

On July 8, 2024, the business earned ₱30,000 in revenue through sales made on credit, creating an
Accounts Receivable.

On July 10, 2024, the company received ₱20,000 in cash from direct Sales made to customers.

On July 11, 2024, ₱10,000 was spent on purchasing Office Equipment, which was paid in cash.

On July 12, 2024, the business received cash from a Credit Customer, settling an outstanding receivable
amounting to ₱30,000.

On July 13, 2024, the company purchased ₱25,000 worth of Merchandise Inventory to stock up for
future sales. This was paid in cash.

On July 14, 2024, the company incurred ₱28,000 in Salary Expenses, which was paid to employees in
cash.

On July 15, 2024, the business earned ₱20,000 in sales, which was immediately received in cash.

On July 17, 2024, the company spent ₱15,000 on Store Equipment, enhancing the operational capacity
of the store. The expense was paid in cash.

On July 18, 2024, ₱20,000 was withdrawn from the business for the owner’s Personal Use.

On July 20, 2024, ₱10,000 was spent on Delivery Expenses, which were paid in cash to ensure the
timely transportation of goods.

On July 21, 2024, the business prepaid ₱30,000 for Rent covering future periods. The amount was paid
in cash.

On July 22, 2024, the company received ₱50,000 in additional Capital investment, bringing more cash
into the business.
On July 23, 2024, the company paid ₱15,000 for Insurance, securing coverage for future risks. This was
also settled in cash.

On July 25, 2024, the business earned ₱30,000 in Revenue, which was credited to the accounts
receivable for future collection.

On July 26, 2024, the company spent ₱20,000 on Advertising Expenses to promote the business and
reach a wider audience. The payment was made in cash.

On July 28, 2024, the business spent ₱15,000 on purchasing more Stock Inventory. This expense was
paid in cash to ensure that the business has sufficient inventory for future sales.

JOURNAL ENTRY

DATE ACCOUNT TITLE CF DEBIT CREDIT

JULY 2024 (1) Cash 101 ₱ 250,000
Magquilat’s 301 ₱ 250,000
Capital
Initial Investment
(2) Business 501 ₱ 6,550
Registration
Expense
Cash 101 ₱ 6,550
Papers
Registration
(3) Equipment 102 ₱ 50,000
Tools 103 ₱ 50,000
Cash 101 ₱ 100,000
Paid for furniture
and equipments
(5) Rent Expense 502 ₱ 15,000
Utilities Expense 503 ₱ 10,000
Cash 101 ₱ 25,000
Payment for
monthly bills
(8) Account 104 ₱ 30,000
Receivable
Billed Revenue 401 ₱ 30,000
Billed from a
customer
(10) Cash 101 ₱ 20,000
Revenue 401 ₱ 20,000
Weekly Sales
(11) Store Equipment 505 ₱ 24,000
Expense
 Cash 101 ₱ 24,000
Renovation of
store
(12) Cash 101 ₱ 30,000
Account 401 ₱ 30,000
Receivable
Billed from a
Credit Customer
(13) Merchandise 506 ₱ 25,000
Inventory
Cash 101 ₱ 25,000
For stock of
merchandise
(14) Salary Expense 503 ₱ 28,000
Cash 101 ₱ 28,000
Payment for
employees salary
(15) Cash 101 ₱ 30,000
Revenue 401 ₱ 30,000
Weekly Sales
(17) Store Equipment 103 ₱ 15,000
Cash 101 ₱ 15,000
Additional
equipments
(18) Cash 101 ₱ 20,000
Withdrawal of 302 ₱ 20,000
owner
For personal use
(20) Delivery Expense 507 ₱10,000
Cash 101 ₱10,000
Usage of Vehicles
for delivery
(21) Prepaid Rent 508 ₱ 15,000
Cash 101 ₱ 15,000
Payment for rent
(22) Cash 101 ₱ 50,000
Additional Capital 301 ₱ 50,000
Addition for
stores capital
(23) Insurance 504 ₱ 15,000
Cash 101 ₱ 15,000
(25) Advertising 506 ₱ 20,000
Expense
Cash 101 ₱ 20,000
For addition to
Revenue
 (28) Stock Inventory 505 ₱ 15,000
Cash 101 ₱ 15,000
Store stock

Ledger

CASH ACCOUNT
DATE DESCRIPTION DEBIT CREDIT BALANCE
July 1, 2024 Initial Investment ₱ 250,000 ₱ 250,000
July 2, 2024 Business ₱ 6,550 ₱ 243, 450
Registration
July 3, 2024 Furniture and ₱ 100,000 ₱ 143,450
Equipment
Payments
July 5, 2024 Rent and Utilities ₱ 25,000 ₱ 118,450
Payment
July 10, 2024 Weekly Sales ₱ 20,000 ₱ 138, 450
July 11, 2024 Renovation of ₱ 10,000 ₱ 10,000
Store
July 12, 2024 Payment From ₱ 30,000 ₱ 158,450
Billed Customer
July 13,2024 Merchandise ₱ 25,000 ₱ 133,450
Inventory
July 14, 2024 Salary Payment ₱ 28,000 ₱ 105,450
July 15, 2024 Weekly Sales ₱ 30,000 ₱ 135,450
July 17, 2024 Store Equipment ₱ 15,000 ₱ 120,450
July 18, 2024 Withdrawal of ₱ 20,000 ₱ 100,450
personal use
July 20, 2024 Delivery Expense ₱ 10,000 ₱ 90,450
July 21, 2024 Prepaid Rent ₱ 15,000 ₱ 75,450
July 22, 2024 Additional Capital ₱ 50,000 ₱ 125,450
July 23, 2024 Insurance ₱ 18,000 ₱ 107,450
Payment
July 25, 2024 Advertising ₱ 20,000 ₱ 87,450
Expense
July 28, 2024 Stock Inventory ₱ 15,000 ₱ 72,450

ACCOUNT RECEIVABLE
DATE DESCRIPTION DEBIT CREDIT BALANCE
July 8, 2024 Billed from a ₱ 30,000 ₱ 30,000
Customer
July 12, 2024 Payment from ₱ 30,000 0
Credit Customer

CAPITAL
DATE DESCRIPTION DEBIT CREDIT BALANCE
July 1, 2024 Initial Investment ₱ 250,000 ₱ 250,000
 July 22, 2024 Additional Capital ₱ 50,000 ₱ 300,000

REVENUE
DATE DESCRIPTION DEBIT CREDIT BALANCE
July 8, 2024 Billed Revenue ₱ 30,000 ₱ 30,000
July 10, 2024 Weekly Sales ₱ 20,000 ₱ 50,000
July 15, 2024 Weekly Sales ₱ 30,000 ₱ 80,000

TRIAL BALANCE
ACCOUNT TITLE DEBIT CREDIT
ASSETS
CASH (101) 72,450
ACCOUNT RECEIVABLE (104) 30,000
MERCHANDISE INVENTORY 25,000
(506)
EQUIPMENT (102) 50,000
TOOLS (103) 50,000
PREPAID RENT 15,000
LIABILITIES AND EQUITY
CAPITAL (301) 300,000
WITHDRAWAL (302) 20,000
REVENUE (401) 80,000
EXPENSES
RENT EXPENSE(502) 15,000
UTILITY EXPENSE (503) 10,000
SALARY EXPENSE (503) 28,000
BUSINESS REGISTRATION 6,550
EXPENSE (501)
STORE EQUIPMENT EXPENSE 10,000
(505)
DELIVERY EXPENSE (507) 10,000
ADVERTISING EXPENSE (506) 20,000
INSURANCE (504) 18,000
TOTAL: 380,000 380,000

Payroll

Employee 1 : Aliah Pearl Alano (Office Clerk)

Salary ₱10,000
SSS (4%) ₱400
Pag-IBIG (1%) ₱100
Tax (5%) ₱500
Total Deductions ₱1,000
Net Salary ₱9,000
Employee 2 : Philipp Las-ay (Sales Associate)
Salary ₱9,000
SSS (4%) ₱360
Pag-IBIG (1%) ₱90
Tax (5%) ₱450
Total Deductions ₱900
Net Salary ₱8,100

Employee 3 : Jericho Roman (Stock Associate)

Salary ₱9,000
SSS (4%) ₱360
Pag-IBIG (1%) ₱90
Tax (5%) ₱450
Total Deductions ₱900
Net Salary ₱8,100

Summary of Payroll
Employee Salary Total Deductions Net Salary
Aliah Pearl Alano 10,000 1,000 9,000
Philipp Las-ay 9,000 900 8,500
Jericho Roman 9,000 900 8,500

Total 28,000 2,800 25,200