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The document outlines the financial transactions of 'Smell of Divine' for July, detailing initial capital, expenses, sales, and payroll. Key transactions include an initial investment of 250,000, various expenses totaling 100,000 for tools and equipment, and cash sales of 25,000. The payroll section summarizes salaries and deductions for three employees, totaling 28,000 in salary expenses.

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3 views

Document-11

The document outlines the financial transactions of 'Smell of Divine' for July, detailing initial capital, expenses, sales, and payroll. Key transactions include an initial investment of 250,000, various expenses totaling 100,000 for tools and equipment, and cash sales of 25,000. The payroll section summarizes salaries and deductions for three employees, totaling 28,000 in salary expenses.

Uploaded by

maeracheldelacruz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Magquilat, Mae Rachel D.

Basic Accounting
BPA 2C

Narrative Transaction

For the month of July

1. Smell of divine have 250,000 in the business as the initial capital, which was recorded as cash. This
increased the cash account and Magquilat’s equity.

2. Smell of divine spent 6,500 to register the business, reducing the cash account. This amount was
recorded as a business registration expense.

2. Including the sss, pag-ibig, brgy permit

3. 100,000 was spent on the purchase of tools and furniture equipment, reducing the cash account and
increasing the tools and furniture equipment asset account.

3. Smell of divine paid for Appliances

3. Smell of divine paid for the Utensils

5. Smell of divine paid 25,000 for rent and utilities, which decreased the cash account and was
recorded as a rent and utilities expense.

5. Smell of divine paid for Electricity Bills 7,500

5. Smell of divine paid for Water Bills 7,000

5. Smell of Divine paid for Rent 15,000

8. Smell of divine sold products/services on credit, creating 30,000 in accounts receivable and
recognizing 30,000 in sales revenue This reflects future payments owed to the business.

10. Smell of divine earned 25,000 in cash sales, which increased the cash account and was recorded as
sales revenue.

11. Smell of divine collected 30,000 from accounts receivable previously recorded on July 8, increasing
the cash account and reducing accounts receivable.

15. Smell of divine paid 28,000 in salaries, decreasing the cash account and recording a salary expense.

20. Smell of divine draw 15,000 from the business for personal use, reducing the cash account and
recording it as an owner's withdrawal.

20. Smell of divine use the cash for some designs 10,000
Ledger (For the month of July)

Cash Account
Date Description Debit Credit Balance
July 1 Initial Investment 250,000 250,000
(capital)
July 2 Business 6,500 243,500
Registration
July 3 Purchase for 100,000 143,500
Tools and
Equipments
July 5 Rent and Utilities 25,000 118,500
July 10 Sales (cash) 25,000 143,500
July 11 Collection from 30,000 173,500
Account
Receivable
July 15 Salary Payment 28,000 145,500
July 20 Owner’s 15,500 130,500
withdrawal

Tools and Furniture Equipment


Date Description Debit Credit Balance
July 3 Purchase of Tools 100,000 100,000
and Equipment

Accounts Receivable
Date Description Debit Credit Balance
July 8 Sales on Credit 30,000 30,000
July 11 Cash collected 30,000 0
from Receivables

Salary Expense
Date Description Debit Credit Balance
July 15 Salary Payment 28,000 28,000

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

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