In April 1, 2020 Atty. Norman Fumar and Atty.
Ruth Ramulte after passing the bar exam decided to form a
partnership to open Non- VAT registered practice named Fumar and Ramulte Law Firm. Each of them
invested ₱ 100,000.00 and decided to have an equal sharing of profit and losses.
The entity prepares a monthly financial statement; hence, adjusting and closing are made at the end of each
month.
CHART OF ACCOUNTS
110 Cash
120 Accounts Payable
130 Input VAT
140 Office Equipment
145 Accumulated Depreciation – Office Equipment
210 Accounts Payable
220 Withholding Tax Payable
230 Expanded Withholding Tax Payable
240 SSS, PH and Pag-ibig Contributions Payable
250 Utilities Payable
260 Accrued Percentage Tax
310 Fumar, Capital
320 Fumar, Withdrawals
330 Ramulte, Capital
340 Ramulte, Withdrawals
350 Income Summary
410 Service Revenue
510 Salaries Expense
520 SSS, PH and Pag-ibig Contirbutions
530 Rent Expense
540 Utilities Expense
550 Supplies Expense
560 Transportation Expense
570 Depreciation Expense – Equipment
580 Percentage Tax Expense
590 Miscellaneous Expense
Fumar & Ramulte Law Firm
Post-Closing Trial Balance
For the Month Ended October 31, 2020
Cash
Accounts Receivable
Office Equipment
Accumulated Depreciation – Office Equipment
Withholding Tax Payable
Expanded Withholding Tax Payable
SSS, PH and Pag-ibig Contributions
Utilities Payable
Accrued Percentage Tax
Fumar, Capital
Ramulte, Capital
Required:
1. Transfer the post-closing trial balance amounts to its corresponding account in general ledger as
beginning balance.
2. Journalize and post the transactions for the month of November.
3. Prepare a trial balance directly at a worksheet. Complete the worksheet.
4. Prepare the financial statements (Statement of Performance, Statement of Financial Position,
Statement of Partner’s Equity, and Cash Flows).
5. Journalize and post the adjusting entry.
6. Journalize and post the closing entry.
7. Prepare the post-closing trial balance for the month of November.
Additional Information:
a. Depreciation expense of long-lived asset is 10% of the asset cost per annum.
b. Percentage Tax is 3% of the monthly revenue.
c. Special Journals (Revenue, Cash Receipt, and Cash Disbursement)
d. General Journal (General Journal A, General Journal C)
REVENUES JOURNAL
Date Invoice Accounts Debited P. R. Service Accounts
2020 No. Revenue Receivable
Credit Debit
CASH RECEIPT JOURNAL
Date O. R. Invoice Accounts P. R. Accounts Service Cash
2020 No. No. Debited Receivable Revenue Debit
Credit Credit
GENERAL JOURNAL
ADJUSTING ENTRIES
Date Account Title and Explanation P.R. Debit Credit
GENERAL JOURNAL
CLOSING ENTRIES
Date Account Title and Explanation P.R. Debit Credit
GENERAL LEDGER
110 Cash
Date Description P.R. Debit Credit Balance
120 Accounts Receivable
Date Description P.R. Debit Credit Balance
130 Input VAT
Date Description P.R. Debit Credit Balance
140 Office Equipment
Date Description P.R. Debit Credit Balance
145 Accumulated Depreciation – Office Equipment
Date Description P.R. Debit Credit Balance
210 Accounts Payable
Date Description P.R. Debit Credit Balance
220 Withholding Tax Payable
Date Description P.R. Debit Credit Balance
230 Expanded Withholding Tax Payable
Date Description P.R. Debit Credit Balance
230 Expanded Withholding Tax Payable
Date Description P.R. Debit Credit Balance
250 Utilities Payable
Date Description P.R. Debit Credit Balance
260 Utilities Payable
Date Description P.R. Debit Credit Balance
310 Fumar, capital
Date Description P.R. Debit Credit Balance
320 Fumar, Withdrawals
Date Description P.R. Debit Credit Balance
330 Ramulte, Capital
Date Description P.R. Debit Credit Balance
340 Ramulte, Withdrawals
Date Description P.R. Debit Credit Balance
350 Income Summary
Date Description P.R. Debit Credit Balance
410 Service Revenue
Date Description P.R. Debit Credit Balance
510 Salaries Expense
Date Description P.R. Debit Credit Balance
520 SSS, PH and Pag-ibig Contributions
Date Description P.R. Debit Credit Balance
530 Rent Expense
Date Description P.R. Debit Credit Balance
540 Utilities Expense
Date Description P.R. Debit Credit Balance
550 Supplies Expense
Date Description P.R. Debit Credit Balance
560 Transportation Expense
Date Description P.R. Debit Credit Balance
570 Depreciation Expense
Date Description P.R. Debit Credit Balance
580 Percentage Tax Expense
Date Description P.R. Debit Credit Balance
590 Miscellaneous Expense
Date Description P.R. Debit Credit Balance
SUBSIDIARY LEDGER
R. Cebailos Accounts Receivable Subsidiary Ledger
Date Description P.R. Debit Credit Balance
M. Mercado Accounts Receivable Subsidiary Ledger
Date Description P.R. Debit Credit Balance
E. Sudario Accounts Receivable Subsidiary Ledger
Date Description P.R. Debit Credit Balance
M. Tuscano Accounts Receivable Subsidiary Ledger
Date Description P.R. Debit Credit Balance
A. Cayosa Accounts Receivable Subsidiary Ledger
Date Description P.R. Debit Credit Balance
F. Avelino Accounts Receivable Subsidiary Ledger
Date Description P.R. Debit Credit Balance
Fumar & Remultive Law Firm
Statement of Comprehensive Income
For the Month Ended November 30, 2020
REVENUES
Service Revenue
OPERATING EXPENSES
Salaries Expenses
SSS, PH and Pag-ibig Contributions
Rent Expense
Utilities Expense
Supplies Expense
Depreciation Expense
Percentage Tax Expense
Miscellaneous Expense ______________
Total Expense _____________
Net Income
Fumar & Remultive Law Firm
Statement of Partner’s Equity
For the Month Ended November 30, 2020
Atty. Fumar Atty. Ramulte Total
Beginning Capital
Drawing
Net Income
Ending Capital
Fumar & Remultive Law Firm
Statement of Financial Position
For the Month Ended November 30, 2020
ASSETS
Cash
Accounts Receivable
Input VAT
Total Current Asset
Office Equipment
Accumulated Depreciation ______________
Total Non-current Asset ______________
TOTAL ASSET
LIABILITIES
Withholding Tax Payable
Expanded withholding Tax Payable
SSS, PH and Pag-ibig Contributions Payable
Utilities Payable
Accrued Percentage Tax __________
Total Liabilities ______________
PARTNER’S EQUITY
Fumar, Capital 11/30/2020 ______________
Ramulte, Capital 11/30/2020 ______________
TOTAL LIABILITIES AND PARTNER’S EQUITY ______________
______________
Fumar & Remultive Law Firm
Statement of Cash Flow
For the Month Ended November 30, 2020
CASH-IN ACTIVITIES
Total Cash-in
CASH OUT ACTIVITIES
________
Total Cash Out
NET INCREASE IN CASH
Add: Cash Balance 11/30/2020
Cash Balance 11/30/2020
Fumar & Ramulte Law Firm
Post-Closing Trial Balance
For the Month Ended November 30, 2020
P.R. Account Titles Debit Credit
CASH DISBURSEMENT JOURNAL
Date Check Check Accounts Debited PR Salaries Sundry SSS, PH Withholdin Input VAt Cash Credit
2020 Voucher No. Expenses Debit and Pag- g Tax Supplie Debit Expanded
No. Debit ibig payable Payable Expenses Withholdin
Debit Debit debit g Tax
(Credit) (Credit) Payable
Debit
(Credit)
Fumar & Remulta Law Firm
Worksheet
For the Month Ended November 30,2020
Account No. Account Title Total Balance Adjustment Income Statement Balance Sheet
Debit Credit Debit Credit Debit Credit Debit Credit
