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Mr.

Santos
General Journal
December 31, 2011
Amounts in Philippines Pesos

No. Date Account Name Ref Debit Credit


1 12/10/11 Cash 101 25,000
M. Santos capital 301 25,000
To record M. Santos initial capital
2 12/04/11 Computer equipment 101 100,000
Accounts payable 100,000
To record purchase of 5 sets of computer
equipment on account worth P100,00
3 12/05/11 Computer supplies 103 50,000
Cash 101 50,000
To record purchase of computer supplies
on cash worth P50,000
4 12/10/11 Taxes and licenses 504 20,000
Cash 101 20,000
To record payment of taxes and licenses
5 12/12/11 Cash 101 100,000
Loans Payable 202 100,000
To record bank loan received mounted to
P100,000
6 12/24/11 Cash 101 5,000
Internet service income 401 5,000
To record internet rental income received in
cash
7 12/24/11 Accounts Receivable 101 4,000
Printing service income 402 4,000
To record printing services income on
customers account
8 12/27/11 Account payable 201 100,000
Cash 101 100,000
To record full payment of computer
equipment purchased on account.
9 12/27/11 Rental expense 502 5,000
Cash 101 5,000
To record monthly rental expense paid
10 12/27/11 Salaries and wages 501 20,000
Cash 101 20,000
To record salaries and wages of employees
11 12/29/11 Cash 101 4,000
Accounts Receivable 102 4,000
To record collection of accounts receivable
12 12/29/11 Computer Supplies expense 503 3,000
Computer supplies 103 3,000
To record used supplies
13 12/29/11 Santos, drawing 302 25,000
Cash 101 25,000
To record drawn by Santos for his personal
use
14 12/30/11 Cash 101 50,000
Santos, Capital 301 50,000
To record additional ash capital invested to
the business

Mr. Santos
General Ledger Account
December 31, 2016
Amounts in Philippines Pesos

GENERAL LEDGER
Account Name: CASH
Account Number: 101
Date Explanation Ref Debit Credit Balance
1/1/11 Beg. Balance
12/01/11 See GJ #1 GJ1 250,000 250,000
12/05/11 See GJ #3 GJ3 50,000 200,00
12/10/11 See GJ #4 GJ4 20,000 180,00
12/12/11 See GJ #5 GJ5 100,000 280,000
12/24/11 See GJ #6 GJ6 5,000 285,000
12/27/11 See GJ #8 GJ8 100,000 185,000
12/27/11 See GJ #9 GJ9 5,000 180,000
12/29/11 See GJ #10 GJ10 20,000 160,000
12/29/11 See GJ #11 GJ11 4,000 164,000
12/29/11 See GJ #13 GJ13 25,000 139,000
12/30/11 See GJ #14 GJ14 50,000 189,000
GENERAL LEDGER
Account Name: ACCOUNTSRECEIVABLE
Account Number: 102
Date Explanation Ref Debit Credit Balance
1/1/11 Beg. Balance
12/20/11 See GJ #7 GJ7 4,000 4,000
12/24/11 See GJ #11 GJ11 4,000 -

GENERAL LEDGER
Account Name: COMPUTER SUPPLIES (UNUSED)
Account Number: 103
Date Explanation Ref Debit Credit Balance
1/1/11 Beg. Balance
12/05/11 See GJ #3 GJ3 50,000 50,000
12/29/11 See GJ #12 GJ12 5,000 -47,000

GENERAL LEDGER
Account Name: COMPUTER EQUIPMENT
Account Number: 104
Date Explanation Ref Debit Credit Balance
1/1/11 Beg. Balance
12/04/11 See GJ #2 GJ2 100,000 100,000

GENERAL LEDGER
Account Name: ACCOUNTS PAYABLE
Account Number: 201
Date Explanation Ref Debit Credit Balance
1/1/11 Beg. Balance
12/04/11 See GJ #2 GJ2 100,000 (100,000)
12/27/11 See GJ #8 GJ8 100,000 -

GENERAL LEDGER
Account Name: LOANS PAYABLE
Account Number: 202
Date Explanation Ref Debit Credit Balance
1/1/11 Beg. Balance
12/12/11 See GJ #5 GJ5 100,000 (100,000)
GENERAL LEDGER
Account Name: M.SANTOS CAPITAL
Account Number: 301
Date Explanation Ref Debit Credit Balance
1/1/11 Beg. Balance
12/01/11 See GJ #1 GJ1 250,000 (250,000)
12/30/11 See GJ14 GJ14 50,000 (50,000)

GENERAL LEDGER
Account Name: M.SANTOS DRAWING
Account Number: 302
Date Explanation Ref Debit Credit Balance
1/1/11 Beg. Balance
12/29/11 See GJ #13 GJ13 25,000 25,000

GENERAL LEDGER
Account Name: INTERNET SERVICE INCOME
Account Number: 401
Date Explanation Ref Debit Credit Balance
12/24/11 See GJ #6 GJ6 5,000 (5,000)

GENERAL LEDGER
Account Name: PRINTING SERVICE INCOME
Account Number: 402
Date Explanation Ref Debit Credit Balance
12/24/11 See GJ #7 GJ7 4,000 (4,000)

GENERAL LEDGER
Account Name: WAGES AND SALARIES
Account Number: 501
Date Explanation Ref Debit Credit Balance
12/29/11 See GJ #10 GJ10 20,000 20,000
GENERAL LEDGER
Account Name: RENTAL EXPENSE
Account Number: 502
Date Explanation Ref Debit Credit Balance
12/27/11 See GJ #9 GJ9 5,000 5,000

GENERAL LEDGER
Account Name: COMPUTER SUPPLIES EXPENSE
Account Number: 503
Date Explanation Ref Debit Credit Balance
12/29/11 See GJ #12 GJ12 3,000 3,000

GENERAL LEDGER
Account Name: TAXES ND LICENSES
Account Number: 504
Date Explanation Ref Debit Credit Balance
12/10/11 See GJ #4 GJ14 20,000 20,000

Sample business transactions and their journal


entries
The following are examples of business transactions for a sole proprietorship business
and their corresponding journal entries. Take note that the amount on the left side
represents debit and the amount on the right side represents credit.

Transaction #1:
M. Santos, invests P250,000 to start an internet café business.

Journal entry #1:


Cash P250,000
M. Santos, capital P250,000
To record M. Santos initial capital.
Transaction #2:
Santos purchase 5 sets of computer equipment on credit amounting to P100,000.

Journal entry #2:


Computer equipment P100,000
Accounts payable P100,000
To record purchase of 5 sets of computer equipment on account worth P100,000

Transaction #3
Santos buys computer supplies for cash worth P50,000.

Journal entry #3:


Computer supplies P50,000
Cash P50,000
To record purchase of computer supplies on cash worth P50,000

Transaction #4
Santos pay his taxes and licenses amounting to P20,000.

Journal entry #4
Taxes and licenses P20,000
Cash P20,000
To record payment of taxes and licenses

Transaction #5
Santos obtain a bank loan for business use and receives P100,000.

Journal entry #5
Cash P100,000
Loans payable P100,000
To record bank loan received amounted to P100,000

Transaction #6
Customers pay cash for internet rental amounted to P5,000.

Journal entry #6
Cash P5,000
Internet service income P5,000
To record internet rental income received on cash

Transaction #7
Customers render printing services on account amounted to P4,000.
Journal entry #7
Accounts receivable P4,000
Printing service income P4,000
To record printing services income on customers account

Transaction #8
Santos paid in full the computer equipment he purchased on account (see transaction #2).

Journal entry #8
Accounts payable P100,000
Cash P100,000
To record full payment of computer equipment purchased on account

Transaction #9
Santos paid his monthly rental for the internet café shop space.

Journal entry #9
Rental expense P5,000
Cash P5,000
To record monthly rental expense paid

Transaction #10
Santos pays salaries and wages of his staff and employees, P20,000

Journal entry #10


Salaries and wages P20,000
Cash P20,000
To record salaries and wages of employees

Note: Journal entry #10 will become different when there are withholding taxes, SSS,
PHIC, HDMF and other employees benefits or deductions involved.

Transaction #11
Santos collects its accounts receivables amounted to P4,000 from customers (see
transaction #7).

Journal entry #11


Cash P4,000
Accounts receivable P4,000
To record collection of accounts receivable
Transaction #12
Supplies amounted to P3,000 were used in business operation (see transaction #3).

Journal entry #12

Computer Supplies expense P3,000


Computer supplies P3,000
To record used supplies

Transaction #13
Santos withdraws P25,000 cash for personal use.

Journal entry #13


Santos, drawing P25,000
Cash P25,000
To record cash drawn by Santos for his personal use

Transaction #14
Santos invested additional cash capital amounting P50,000.

Journal entry #14


Cash P50,000
Santos, Capital P50,000
To record additional cash capital invested to the business