Chart of Accounts 10 Prepaid Insurance 6000

Acct. No. Account Title Cash in Bank 6000

1001 Cash in Bank Advance Payment for Insurance - 1 year

1002 Accounts Receivable

1003 Office Supplies 11 Cash in Bank 20000

1004 Service Tools Service Income 20000

1005 Service Supplies Cash Service Income

1006 Service Vehicle

11 Salaries Expense 2000
1007 Prepaid Insurance
Cash in Bank 2000
1008 Prepaid Rent
Payment of Salaries
2001 Accounts Payable
3001 Sky, Capital
15 Accounts Receivable 10000
4001 Service Income
Service Income 10000
5001 Utilities Expense
Service income on Account
5002 Salaries Expense

15 Utilities Expense - Water 850

Date Particulars SD Debit Credits Cash in Bank 850
Sept. 1 Cash in Bank 250,000
Sky, Capital 250,000
Initial Investment 17 Office Supplies 5800
Cash in Bank 5800
5 Prepaid Rent 12,000
Cash in Bank 12,000 17 Service Supplies 50000
Advance payment for Rent - 4 months Accounts Payable 50000

7 Service vehicle 90,000 18 Cash in bank 3000

Cash in Bank 90,000 Accounts Receivable 3000
Payment for Service Vehicle - Cash

21 Accounts Payable 10000

8 Service Tools 45,000 Cash in Bank 10000
Accounts Payable 45,000
Payment for Tools on account 30 Cash in Bank 14000
Accounts Receivable 6000
8 Utilities Expense - Electricity 1500 Service Income 20000
Cash in Bank 1500
Payment for Utilities
 CASH IN BANK Acct No: 1001 SERVICE SUPPLIES Acct No:
Date Particulars PR Debit Date Particulars PR Credit
Date Particulars PR Debit Date Particulars PR Credit
Advance payment for Rent -
9.01 Initial Investment 250,000.00 9.05 4 months 12,000.00 9.17 Initial Service Supplies 50,000.00
Payment for Service Vehicle
9.11 Service Income 20,000.00 9.07 - Cash 90,000.00
Payment from
9.18 Customer 3,000.00 9.08 Payment for Utilities 1,500.00
Advance Payment for
9.30 Service Income 14,000.00 9.10 Insurance - 1 year 6,000.00 SERVICE VEHICLE Acct No:

Total Debits 287,000.00 9.11 Payment of Salaries 2,000.00 Date Particulars PR Debit Date Particulars PR Credit
Less: Total Second Hand Vehicle -
Credits 128,150.00 9.15 Payment for Utilities 850.00 9.07 Pur.Am. 90,000.00

Running Balance 158,850.00 9.17 Payment for Office Supplies 5,800.00

9.20 Payment for Service Tools 10,000.00

PREPAID INSURANCE Acct No:
Total Credits 128,150.00
Date Particulars PR Debit Date Particulars PR Credit
Advance Payment for
9.1 Insurance - 1 year 6,000.00
ACCOUNTS RECEIVABLE Acct No:
Date Particulars PR Debit Date Particulars PR Credit
Payment from
9.15 Service Income 10,000.00 9.18 Customer 3,000.00

9.3 Service Income 6,000.00 Total Credits 3,000.00 PREPAID RENT Acct No:

Total Debits 16,000.00 Date Particulars PR Debit Date Particulars PR Credit

Less: Total
Credits 3,000.00 Advance payment for
Running 9.05 Rent - 4 months 12,000.00
Balance 13,000.00

OFFICE SUPPLIES Acct No:

Date Particulars PR Debit Date Particulars PR Credit
SALARIES EXPENSE Acct No:
9.17 Initial Office Supplies 5,800.00
Date Particulars PR Debit Date Particulars PR Credit
For Assistant 1/2
9.11 Month 2,000.00

SERVICE TOOLS Acct No:

Date Particulars PR Debit Date Particulars PR Credit
9.08 Initial Service Tools 45,000.00
 ACCOUNTS PAYABLE Acct No:
Date Particulars PR Debit Date Particulars PR Credit
Payment for Purchase of Tools on
9.21 Tools 10,000.00 9.08 account 45,000.00
Purchase of Supplies on
Total Debits 10,000.00 9.17 account 50,000.00

Total Credits 95,000.00

Less: Total Debits 10,000.00

Running Balance 85,000.00

SKY, CAPITAL Acct No:

Date Particulars PR Debit Date Particulars PR Credit

9.01 Initial Capital 250,000.00

SERVICE INCOME Acct No:

Date Particulars PR Debit Date Particulars PR Credit

9.11 Cash 20,000.00

9.15 On Account 10,000.00

9.30 Mixed Income 20,000.00

Running Balance 50,000.00

UTILITIES EXPENSE Acct No:

Date Particulars PR Debit Date Particulars PR Credit
9.08 Electricity 1,500.00
9.15 Water 850.00
Running Balance 2,350.00
---------------------------------------------FORMING PARTNERSHIP-----------------------------------------------------
PARTNERSHIP INCOME DISTRIBUTION
CASH AND CASH EQUIVALENTS & BANK RECONCILIATION

1 Checking Account 1,500,000 5 Cash in Peso (Unrestricted) 5,000,000

Cash in USD $100K @ P50 5,000,000
Less: Restricted for debt 500,000 1,000,000
Cash and Cash Equivalent 10,000,000
60-day Treasury Bill 800,000
FC $10,000 @ P50 500,000
6 Cash in Bank X 8,000,000
Cash and Cash Equivalent 2,300,000 Less: Compen. Bal. Restricted 3,000,000 5,000,000
90-day T-Bill 4,000,000
2 Cash in BDO 2,000,000 Cash and Cash Equivalent 9,000,000
Less: bank Overdraft 400,000

Less: rest. Compen. Bal. 500,000 1,100,000 7 Cash and Cash Equivalent -0-

FC in Metrobank $50K @50 2,500,000

8 Book Balance 2,500,000
Cash and Cash Equivalent 3,600,000 Less: Bank Charge 15,000
Less: NSF Check 200,000
Less: Check Error (500k-50k) 450,000
3 Book Balance 1,200,000 Add: Interest 30,000
Less: Bank Charges 5,000 Add: Stale Check 100,000
Less: NSF Check 100,000 Adjusted Book Balance 1,965,000
Add: Bank Collection 315,000
Add: Stale Check 50,000 9 Book Balance 4,000,000
Less: Error (80k-8k) 72,000 Less: Auto-Debit Error (800k-600k) 200,000
Adjusted Book Balance 1,388,000 Add: Direct Deposits 300,000
Add: Duplicate Check 500,000
4 Book Balance 2,000,000 Adjusted Book Balance 4,600,000
Less: Corrected Bank Charge (500k-400k) 100,000
Less: Bank Fee 410,000 10 Book Balance 1,500,000
Add: Customer Collection 530,000 Less: Stolen Check 200,000
Add: Error in Remittance (50-48)*$20,000 40,000 Less: Bank Charge 50,000
Add: Error in DIT (50-28)*$10,000 220,000 Adjusted Book Balance 1,250,000
Adjusted Book Balance 2,280,000
 ACCOUNT RECIEVABLES

1 Trade A/R 775,000.00 6 Amount Factored 2,000,000.00

Trade N/R 100,000.00 Less; Finance Charge (2 million x 3%) 60,000.00
Installment Receivable 300,000.00 Holdback (2 million x 5%) 100,000.00 160,000.00
Claims from Insurance Company 15,000.00
Amount Received 1,840,000.00
Subscription Receivable 300,000.00
Add: New Asset Received (Holdback) 100,000.00
Accrued interest receivable 10,000.00
Total consideration received 1,940,000.00
Trade and Other Receivable 1,500,000.00
Less: CV of the receivable equal to FV 2,000,000.00

Loss on Factoring - 60,000.00

2 Sales on Account 7,200,000.00
Less: Credits to AR
7 Proceeds 6,350,000.00
Collection 4,900,000.00
Less: CV of FA sold 5,000,000.00
Sales Discount 800,000.00
Liab recognized dur to servicing 200,000.00 5,200,000.00
Accounts written off 50,000.00
Gain from the transfer 1,150,000.00
N/R in settlement acct 800,000.00
Sales Returns 30,000.00 6,580,000.00
8 Consideration Received 9,800,000.00
Accounts Receivable 12.31.2024 620,000.00
Asset recognized related to continuing involvement (10M x 6% x 180/360) 300,000.00

Total 10,100,000.00
3 Invoice Price (300k x 70% x 80%) 168,000.00
Less: Cash Discount (168,000 x 2% 3,360.00 Less: Transferred asset 10,000,000.00

Net 164,640.00 Liability related to CI 340,000.00 10,340,000.00

Less: freight Cost - reimbursable 5,000.00 Loss from Transfer - 240,000.00

Remmitance 159,640.00

9 Interest (375,000 x8%) 30,000.00

4 A/R assigned 400,000.00 Maturity Value (375,000+30,000) 405,000.00
Less: Discount (405,000 x10% x 6/12) 20,250.00
Amount collected(110,000 + 380) 110,380.00
Proceeds (405,000 - 20,250) 384,750.00
Sales return 1,350.00
Interest after 6 Months (375,000*8%*6/12) 15,000.00
Write - off 2,980.00 114,710.00
Carrying Value at 6 Months (375k + 15k) 390,000.00
Carrying Value of A/R Assigned 285,290.00
Loss on Discounting (390k - 384,750) - 5,250.00

5 Total Loan (3million x 80%) 2,400,000.00

Less: Principal Payment
Total payment 2,000,000.00
Less: Payment for Interest (2.4 million x 1%) 24,000.00 1,976,000.00
Note Payable Balance 424,000.00
10 Interest (400,000 x 12% x 90/360) 12,000.00

Maturity Value (400,000+12,000) 412,000.00

Discount (412,000 x 15% x 60/360) 10,300.00

Due from the bank (412,000 - 10,300) 401,700.00

11 Interest (1.5 million x 12% x 6/12) 90,000.00

Total Liability (1.5 million + 90,000) 1,590,000.00
Collection by the bank (1.4 million - 50,000) 1,350,000.00
Remaining Liability 240,000.00

12 Advances (1.2 million x 80%) 960,000.00

Less: Fee (1.2 million x 3%) 36,000.00

Assumed Interest for 1 year (960,000x10%) 96,000.00 132,000.00

Net Proceeds 828,000.00

13 Sales on account 18,000,000.00

Less: Collections from customers 17,500,000.00

Recovery of written off accounts 50,000.00

Accounts written off as uncollectible 200,000.00 17,750,000.00

Add: A/R 5,000,000.00

Recovery of written off accounts 50,000.00 5,050,000.00

A/R 5,300,000.00
Aging Estimate 0.05

Estimated Uncollectible Account 265,000.00