BASIC FINANCIAL ACCOUNTING AND REPORTING

COMPREHENSIVE EXAM REVIEWER

PART 5
IDENTIFICATION | SPECIAL JOURNALS

Identify what appropriate journal should be used for each transaction. Use the code only,
CAPITAL letter.
CRJ – Cash Receipts Journal
SJ – Sales Journal
PJ – Purchases Journal
CPJ – Cash Payments Journal
GJ – General Journal
Example: Paid Noel balance owed, check no. 3. (Answer: CPJ)

1. J. Lim invested P20,000 into the business.

2. Sold merchandise on account to Benedict Co., P5,000, invoice no. 1.
3. Purchased merchandise on account from Carmen Co., P5,000.
4. Sold P20,000 of merchandise for cash.
5. Paid Carmen Co. from previous purchases on account, check no. 1.
6. Sold merchandise on account to Lance Co., P10,000, invoice no. 2.
7. Received payment from Benedict for invoice no. 1.
8. Issued a credit memorandum to Lance Co. for P2,000 for faulty merchandise.
9. Received payment from Lance Co.
10. Purchased merchandise on account from Noel Co., P10,000.

Answer Key:
1. CRJ
2. SJ
3. PJ
4. CRJ
5. CPJ
6. SJ
7. CRJ
8. GJ
9. CRJ
10. PJ
Modified True or False | Special Journals and Subsidiary Ledgers

No. Statement True/False Answer

1 An accounting system is the combination of personnel, records,
and procedures that a business uses to meet its needs for
financial data.
A simple accounting information system consists of three basic
components.
2 Computerization comes when we deal with similar transactions in
groups to speed the process.
Accounting systems cope with heavy transaction loads in two
ways: specialization and computerization.
3 A control account is a summary account in the general journal
that represents numerous accounts with a common title.
To streamline operations, businesses place the accounts of their
individual credit customers in a Subsidiary ledger, called the
Accounts Payable Ledger.
4 A subsidiary ledger is established when it is necessary for a
business to keep a separate record of similar accounts.
The accounts receivable subsidiary ledger should contain
information about all sales and collections from the customer –
the customer’s credit history.
5 The individual accounts for creditors are maintained in numerical
or alphabetical order in a subsidiary ledger called the accounts
payable subsidiary ledger.
In sales journal, the column total is posted as a credit to Accounts
Receivable and a debit to Sales.
6 The purchases journal is used to record all purchases of
merchandise on credit
The subsidiary ledger should be posted daily.
7 The cash receipts journal is used to record any transactions
involving the disbursement of money.
Other Accounts debit and credit columns can be included and
used for transactions that occur infrequently, such as additional
investment of a cash in a business or receipt of cash from notes
receivable
8 As with any special journal, summary posting can be done at the
end of each month.
The cash payments journal is used to record all payment of cash.
9 The all-purpose two column journal, called the general journal,
can be used for entries that do not into any of the special
journals.
Fees earned on account would be recorded in the cash receipts
 journal.
10 Purchase of equipment on account would be recorded in
purchases journal.
If the controlling account and the subsidiary ledger do not agree,
an error has occurred, and must be located and corrected.

Answer Key:

No. Statement True/False Answer

1 An accounting system is the combination of personnel, records, T A
and procedures that a business uses to meet its needs for
financial data.
A simple accounting information system consists of three basic F
components.
2 Computerization comes when we deal with similar transactions in F B
groups to speed the process.
Accounting systems cope with heavy transaction loads in two T
ways: specialization and computerization.
3 A control account is a summary account in the general journal F D
that represents numerous accounts with a common title.
To streamline operations, businesses place the accounts of their F
individual credit customers in a Subsidiary ledger, called the
Accounts Payable Ledger.
4 A subsidiary ledger is established when it is necessary for a T C
business to keep a separate record of similar accounts.
The accounts receivable subsidiary ledger should contain T
information about all sales and collections from the customer –
the customer’s credit history.
5 The individual accounts for creditors are maintained in numerical T A
or alphabetical order in a subsidiary ledger called the accounts
payable subsidiary ledger.
In sales journal, the column total is posted as a credit to Accounts F
Receivable and a debit to Sales.
6 The purchases journal is used to record all purchases of T C
merchandise on credit
The subsidiary ledger should be posted daily. T
7 The cash receipts journal is used to record any transactions F B
involving the disbursement of money.
Other Accounts debit and credit columns can be included and T
used for transactions that occur infrequently, such as additional
investment of a cash in a business or receipt of cash from notes
receivable
8 As with any special journal, summary posting can be done at the T C
 end of each month.
The cash payments journal is used to record all payment of cash. T
9 The all-purpose two column journal, called the general journal, T A
can be used for entries that do not into any of the special
journals.
Fees earned on account would be recorded in the cash receipts F
journal.
10 Purchase of equipment on account would be recorded in F B
purchases journal.
If the controlling account and the subsidiary ledger do not agree, T
an error has occurred, and must be located and corrected.
Problem Solving | Payroll Register

Kween Yasmin recently established a new business – Kweens’ Bookstore. Provided below is the
incomplete information about the Payroll Register of Cherry’s Bookstore for the second
quincena (December 16).

Kweens’ Bookstore
Payroll Register
For the Period December 16-31, 2021

Employee Name Position Gross Pay

Kween Yasmin Owner & General Manager P 18,000
Kween Lengleng Cashier 8,000

SEMI-MONTHLY 1 2 3
Compensation P 10,417 and P10,417 – P 16,666 P16,667-P33,332
Range below
Prescribed 0.00 0.00 1,250.00
Withholding Tax + 20% over P10,417 +25% over P16,667
 Kween’s Bookstore
Payroll Register
For the Period December 16-31, 2021

Employee Position Gross SSS PhilHealth Pag- WHTAX WHTax Net Pay
Name Pay IBIG Base
Kween Owner & 18,000 400.00 315.00 50.00 17,235.00 1,392.00 15,843.00
Yasmin General
Manager
Kween Cashier 8,000 320.00 140.00 50.00 7,490.00 0.00 7,490.00
Lengleng
Total 26,000.00 720.00 455.00 100.00 24,725.00 1,392.00 23,333.00

Schedule of SSS and EC Contributions

Kweens’ Bookstore

Employee Name Dec. 1-15 Dec. 16-31 Total EE Total ER EC Total

Share share Employer
Share
Kween Yasmin 400.00 400.00 800.00 1,600.00 30.00 2,430.00
Kween Lengleng 320.00 320.00 640.00 1,280.00 30.00 1,950.00
Total 720.00 720.00 1,440.00 2,880.00 60.00 4,380.00

Schedule of PhilHealth Contributions

Kweens’ Bookstore

Employee Name Dec. 1-15 Dec. 16-31 Total EE Total ER Total

Share share
Kween Yasmin 315.00 315.00 630.00 630.00 1,260.00
Kween Lengleng 140.00 140.00 280.00 280.00 560.00
Total 455.00 455.00 910.00 910.00 1,820.00

Schedule for Pag-IBIG Contributions

Kweens’ Bookstore

Employee Name Dec. 1-15 Dec. 16-31 Total EE Total ER Total

Share share
Kween Yasmin 50.00 50.00 100.00 100.00 200.00
Kween Lengleng 50.00 50.00 100.00 100.00 200.00
Total 100.00 100.00 200.00 200.00 400.00