ACC 111 PRACTICE SET
INSTRUCTIONS
1. Bring out ALL SALES INVOICE, cut in per invoice sumber and then stapled/lastened a
chronologically
2. Download the SALES JOURNAL template from the BBL. From the Sales Journal
template, record all the invoice number in a CHRONOLOGICAL ORDER. The invoices
has Value Added Tax (VAT).
VAT is a consumption tas imposed by government to goods and services. The Philippine
VAT rate is 12%
VAT should be SEPARATED from the SALES. Usually, all invoice is VAT
INCLUSIVE in this case, we need to separate the VAT from Sales
Example: Invoice No. 003 in 130,000 This F180,000 is presumed to be VAT inclusive.
To separate the VAT from sales, divided P180,000 to 112% (1 plus 12%)
P180,000/112%=P160,714 Sales, VAT is P19,286
To record it
DR CR
Accounts Receivable 130,000
Sales 160,714
VAT Output Tax 19,286
If there is a return or discount on the sales, you need to separate the VAT amount from
the discount or returns.
For Example. If the customer paid the account within the discount period with 2%
discount.
Sales Discount 3,214
VAT Output Tax 386
Accounts Receivable 3,600
*180,000 x 2% 3,600 inclusive of VAT; 3,600/112% = 3,214 discount without VAT
3. Kindly follow Invoice 1 to 3 found in the SALES JOURNAL as your guide
4. Bring out ALL RECEIVING REPORT (R) and cut it per RR number
5. Look for SUPPLIER'S INVOICE that corresponds to the RR number For example, The RR
No. 1 is from Hight Tech. You need to attached the Supplier's Invoice issued by High Tech to
the company you are recoding. The High Tech invoice no. 364533 is for the RR No. 1. You need
to staple High Tech Invoice No. 364533 to the RR No. 1
6. Download the PURCHASE JOURNAL template from the BBL Record all RR to the Purchase
Journal in a CHRONOLOGICAL order. You need to take cognizant that NOT ALL SUPPLIER
is a VAT registered company
If the Supplier is VAT-registered, the Purchases to record in the Purchase Journal book should
exclude VAT.
Example: RR No. 1001 has a total invoice of P1,955,000 The amount of P1,955,000 is presumed
to be VAT inclusive at the wpplier is a VAT-registered company.
P1,955,000/112% = 1,745,536 purchase without the VAT, VAT therefore is P209,464.
To record it:
Purchases 1,745 536
VAT Input Tax 209 464
Accounts Payable 1.955.000
The same with Sales, if there is discount or returns, we need to separate the VAT from the
discount or return. If the company return the portion of the goods due to some defects amounted
to P100,000
To record it.
Accounts Payable 100.000
Purchase Ret. & Allow 13.286
VAT Input Tax 10,714
P100,000/112% P89,286 without VAT, VAT therefore is P10,714
If the Supplier is Non-VAT registered, the Supplier's Invoice is recognized ENTIRELY as
Purchases.
For example, RR No 1016 with Supplier's Invoice of 3555 is Non-VAI. In this case, there is no
VAT INPUT TAX to separate from the P18,200
7. SUNDRY is the portion of the journal to record the Accounts NOT found to any of the
columns Take for example the RR No 1016, there is no Supplies in any of the columns in the
Purchase Journal In this case, we need to record the Supplies in the SUNDRY Be careful to
record the amount if the account is to debit or credit. Notice that the Account column in the
Sundry does not provide whether the account to record is debit or credit. The amount that you
extend will determine if the account is to debit or credit.
8. Kindly follow RR No. 1001 and RR No. 1016 found in the PURCHASE JOURNAL as your
guide.
9. Be guided with the submission deadline for the Sales Journal and Purchase Journal.
