COMPED 422

Exam n0. 1
Jeaneth P. Tormis, CPA, MBA

Problem:

Recording Transactions in Purchases, cash Payments and General Journal

Lumen Almachar operates a neighborhood pharmacy in front of the community hospital. The
books of original entry include purchases journal, cash payments journal and general journal. A
subsidiary ledger is used for accounts payable. The following are the transactions related to
purchases and cash payments for the month of June:

June 1 Purchased merchandise from seco co. on account for P23,420. Invoice no. 71
dated June 1, terms 2/10, n/30.

2 Issued check no. 536 for P10,000 in payment of rent for June.

5 Purchased merchandise from Ricarte Drug Supply on account for P56,240. Invoice
no. 72 dated June 2, terms 1/15, n/30.

7 Purchased merchandise from Casas Drug Co. on account for P36,735. Invoice no.
73 dated June 5, terms 3/10 eom.

9 Issued check no. 537 to Seco Co. in payment of invoice no. 71 less 2% discount.

12 Received a credit memorandum from Ricarte Drug Supply for P4,620 for
merchandise returned that was purchased on June 5.

14 Purchased merchandise from Balino Drug Co. on account for P47,940. Invoice no. 74
dated June 14, terms 2/10, n/30.

15 Received a P5,370 credit memorandum from Casas Drug Co. for merchandise
returned that was purchased on June 7.

17 Issued a check no. 538 to Ricarte Drug Supply in payment of invoice no. 72 less the
credit memorandum of June 12, and less 1% discount.

23 Issued check no. 539 to Balino Drug Co. in payment of invoice no. 74 less 2%
discount.

27 Purchased merchandise from Abeto Pharmaceuticals on account for P63,847.

Invoice no. 75 dated June 27, terms 2/10 eom.

30 Issued check no. 540 for P27,020 to Tudtud Co. for a rush purchase of merchandise.

Required:
1. Record the transactions in the purchases (page 7), cash payments (page 7) and general
journals (page 7).

2. Enter the totals and rule the purchases and cash payments journals. Post from the journals to
the general ledger accounts and accounts payable subsidiary ledger. Use the following
accounts: Cash (110), P918,000; Accounts Payable (210), P621,769; Purchases (510), P
1,382,625; Purchases Returns and Allowances (520), P31,623; Purchases Discounts (530), P21,145
and Rent Expense (620), P50,000.
3. Prepare a schedule of accounts payable. Show that the total of accounts payable in the
schedule equals the difference between the June 1 balance and the June 30 balance of
Accounts Payable in the general ledger.