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?itia 79h,nA. tt,stoXu.r tt t-A1

A Cqt o{gnqqbmdre ir Pt"t00 tod Oc derired pr cefr of grom poftt ir r@6-_ -. Cuc I " if CIF rcs ir bucd m sda: (e) @ msi b lfue celliry FrG? 3, p_0) UIH ir thc-TCBc 2 . iNtP ffi.e lc b*led m cort (e) w{rm mt b ?trrc tdliry ffice? _34g_ (b) lt"Bd ir the g

E, r Sf;ltiuGgidb ir P,}O00 ceid grorr profft r* ir frFi6.--Gua i -.if ffiir 3G,7oofauler: r Wbetis lta costofrnffchcndfisefu::J b. hownmrq"tr*o tlre potcH.?Olse 2 -

if'fiI'il 3@6 of cqrt :

uWhO

ir tkeort of'merc&rndire? r,3ar b" how

mmh ir &egrusc

I 'rnne Ti*dinry &te 6c foltowing d.afe for&e firreo*,rrE61Btsirali4trvBmy i{WIH} I.{etrdec. NetpDtlrzr* 3@,ffi0 (horr profttree S6, , rr flia{C gof,do*vdl$le fur ldc--- b. cort ef go*.t& rdd -' --- s" Ilr .dory i cod :- -:d 9D Ats dmforibe

. Metcder t.2Netprcharm $O0$ffi ,' '''

e Total goodr avdhble frrde-_b. cortof goo& cold " _E Iffile61oay' dSrear-end of ABC Co,cpamyic ruIXlO. Netprfua for(he

rcriodilmJ3e,000

I""Y-lfiffiffi"fft

:m"-r-T*,old-

c. hrffiory dbe'" -- . sF ADC Coeupxly mniddnr r uul& rry (or ggorr profit) of6G++rbeic coct Th oqfi5fi *etlitrye&miulirtrutive flpffirrr ileer&Be 30fb of edel. For &c ycr 2008 cdes mriled to F96$Jm.fr. (;rtst of goo& rotO . - b. grn*o profitj-': ' - c. rdtiry ad cdm o,rp ":-:.-- d. tilec in*oS Begiuing invemtory ofABC Cquy il P[20,GX}; [rrever, mmagcmeilt wdr tc lixd8 lmverhrclrl a yer-od to Ylfifl0. If aet rdec frr fu yer ile projectrd to bc Pl Im,m rsnd p'ocl psnou$ to 3@6 ofnct rder.ft co@ue the uwurt of merchditc pr.r*hroec &d Eitl renit in thc drrfuld c$d.irg invcdo

H On Mrrch 31,2(m9, fu utme imreffiory ofA-BC Cqry wc dcruqred by fire. Ih fullewiqsblained llom availuble recordr:

Irruentory,Jun l, ffi9. f*o$m $de*"Jm. tr t+Mench31,2Flrchsel, ia- I to IdilGh 31,2&)9.,. 1r0,W fJrorl profittuaryrm ir 409t

a Teal goo& wailable for lde .---'-- b. cut of goodo lold .:. . ,e. ion.emery s* Methd Arrun ing ttrat udmaged rod dm.g+d goodu cla be rold for P12"[D0, cr6nratcd fire lola

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3/8

lvr,,//

01.cr\

ABC TradingTrial Bdtnce

f)ece*rbr 3t,2008Dshil

Cash 20Accountr receivable l@Merchiurdi;e invenlory, t I t t' O8 ffiFurniture and equipnrent 150Accunulated dcprn - fuin & equip.A.ccsrurts payatrleCruz" capitalCnu, drawing

,.SoJet

S:des rehlrru and allowulcet /Intcrest irrcortrel\uchases ,[i'eiglrt inI'urchase discountSalaries expelueRent expuise

Crsdil

(,&sins.cnuisr$"260)i .ltderchan

8/11/2019 1A9

4/8

n

ABC $tma $Ells o hrand of P0. Frr th$ rfl$nlh cf ,,hn ?00S, 0 w*tn d P2$,So0 wur p+"urdr*mor$. $u,ln6 &n ?#Sg,ABC cold 7 urrilr al aullnrg prioo of P3S,G00 scoft" ln Fob. ?00{}, cut+{hff ll u*o d Fl ,0M a*dryctro p{r{dtetod,Al FGb. 28. an irruanlorycourt siro'+od thrn 2 rr$lts ramdn cn hrnd Selos prim fur Fob h fr3?,eX)0 fr uni:.(Use tha iCesl cosl pricrs [o assig* velue to merdtandiee {nvemtoty at thc *nd }

nith credtt ienns of ?/10, 1130. The eecourd wle peid o$ .bt . $?r lnvolae prlcc ls -," r:::- b. caatr dl*enun (lf eny) -=-_--G. &tnour{ peld-5a ,.OnJan?7,2t}00,/Croldgrooristolsetsn {irrF SS,600,cr?4iltenrso[3/tCI, l/15.n/l]S. lssl*npcidinfuflonFob.?a oash diecoi,lnU salet dlscount i , -' b. anmsul colledrd *n lvfay t4 _ .:On .fuly3. ABC sold merc-hnndise to XYil for P80,000. Terwm; 2{1S, lItr$, ni30.On .fuFy 8, ABC lssu*d crodh rnonno to XYZ fur dlmrrarim granled #n d*floalfus rrrtrcfiandise, F?,S{}S.On $ly ,6, ABC colleded XIB actour* in $uH.

a arnounl subJed tc dlccount :-,- -_ h. meh eiiscounU salos diucounf -.iS:y(.- u. eenoml cniledod'-

-:--On lvlor 4, 2008, F,80 purdrased rmerSlandire fnrrn XYI irr the earounl af F4?,7$8. .Utrtl,Ec$rt, nls0, ffiC rstttlnedcornagud nrorcharadiua irwoiocd ot P2,SS0 to XIZ and poid ltt ac*ount h frdt on Aprii tr0, 200S.a emousi subjed to dtscount 4*, -"": b. cash dfuctru*U pmdla,se dttesrrftt -L...;:: e. amas( PM-].. ;jZ.F On ivlay l, ABC bougltl goods frorn XYI hr P245,&S0. A 20% tradc dlscount eme gflar*sd end thc tctnnaolthe trrdm3e$iar At$. n/3S. XYZ prcpeid frGitdfr m{ o[P 0.&Ml tftagaa&flctoABO (orpenca of AEC.]Om Mry t0, ABC rcturnod P20,S00 ae dufltiiuo md pdd ths balano on Ntry f 5., emoufil subjed to cssh rXi'sma.qslt ic ^E-][ b" p*rdrme dhooffitt Jfu--s. totsf smoffid Bsi{, J9*lgG ABC purdracad goods for PX00,S#dL Temrr: 20% d{$on prymeril and tho bolamco on tsmiu G{ 2/10,n/}0.AEC paid in fullyrilhin dicco'Jflt peried,I c. td*l -"'' ,:'": - l

H On 'ri /i': '-r'i-\''rlr'('

0n b&rmo(i ''

it is the policy of SC not to $rril discowd ur pertid pelmrmt, lxingvff if the he{cflrs, ffi ats$ psid $rithin thc dsootrtpcriod r fu{ dlecowil lt 6fucn lndudrtg thc dstounl oa padlal pa3nrnt.a ornounl subjed to dboount J1;- b. tdee dixcornl -j;- i. erflrxrrtl eolleded m May t5**,: On May 25, ABC *old nrorrAundlsa ofl &ffi*urd lo XYZ for P100,000 plus 12% VAT, ?10, ,id$O. XYZ Fddiis armunt in $uilruithin tlrc discoiff?t pcriod.a emt uubjorr te diss$ufit l. '1 -h e*Cr discourd - -, - . ncd ot&flptit ltrr 1;[' d" errtorrrl enhdsd , . ;tlm tvioy 3, /tBC ssld rncrdrendisc la XYZ on accou':t termr of 5/10,n/J$ for P? 1,200 h&ldve of t2% VAT.On htay,$, )(VZ, r*i..rrnrd P?,0G0 plur t 2% VAT rtorth of dofttlhrc mardlrsrdloc"On Msy t X:HYZ scttled hiE enrlsorrmt in $n$1.e rnil suhjed to diacuunt f ,-1" -b cesh diecout{ 'l' .,.. c. nd odpr.fr tax ', ,; , d" oriwrrd c6$odod g-On Feb.4 Jran Gr,.c, the cninstr, roithdmvr nnerdlsn'dbe wtkB Fl0,tX)0 fur pemonol wc. Mqrdrsdis? h frG|n$roltl a[ Pl5,Oii0.

, ,. .,]J ,

a the smourTt of &'aring i*d- b. ihe awourl rffisd h j_*_ c. ttw t-il- , -,P,EG Mantla purclrasod rr 8n*ralldlro {ho{n X\fZ Ccbu, P2 },0O0. Tawru: 2fl0,n4}0, byUoa.,Tramsputalion cost of PXl.fi 0 was paid to o mmrtoa cryrier. i.,, . I

i. Datarnllne thc lmqrmfl of lhclgMJn (lf efiy) and lhs srlouril peid ts XYZ mdcr thc hU6uh0 sl*pphg tmtt:a F0B desiinEtio*. c.b FCI8 shlpghg pol ,rd.ABi.] Mnmila sold merchandige to XYA Oc&u, P1@,000. T Traupoilrfioncont of P5,CIO.wm prld lo a commofi enbr.Deiermirre lhc ernou$ of freigrt.out (ll aDfi ild thc mrount cof,sded fom XYZ rndcr the ffiflrhg CieDinS tcrm;a FOB dGstkution, frclgN rrqpil-2;.'):y- c. FOB &dhdbo, frol$il collod --d-15-'b id. he(;M colled . -;:-.J,c: d, FOts d*Srine pfu*,A& ntsry r{ Dec. 3t, 2008 lr uailrod d P'500,000 ba*ed onon harrd. The follry*ing ilerrs erc in tmnel 8t ths. 3t, 2008 efid sc,e $d irt*dcd lrl FS00,ffiS:

I

t,.

K

L

i...lr.'

M

. )t(i' ''

H

.,.o,oL'

("' o

lvirrdundlm purdtecod tllll h tr*na[ (of$Dpod FOB thhphg folnl]..... 25,CI00Men{'iandise purdrased still ilr transiq (shifped FOB de$inCion).. ...... , 30.ffi0Mer$randise sold ttlil in traneli trhbpcd FOB eNpptng poinl), ril cost.. 26,0fl0tr{err}rundire cold still in trsnsil (shryWed FOB dcctit f,liort}, d tpsl. . . . . " 8$,CIt}0Y T'1-T:::T1 lY' Y:1fLTff :i' ' P ie - iL-

8/11/2019 1A9

5/8

8/11/2019 1A9

6/8

Rizia ,q . fu'leTuio /-AC

Ui?holtiJA[ fx' lnpul taror Prepaid Tar (lf lnpul tar > output tar)

Feb. 15 Paid VAT P4mblcr

Input lsr ac*6se1 l. Og< rL,;.,trn ?40Purchase returns and allelancas in etrotJJcn?,000

I1,200500

0.500

I 100,[00' 2,( 00

336,r 00

38,000

2/t,000

C t Purdrascd of Produrt X, 1,000 unhs at F100 pcr unlt or2 Paid freigtrl on purdrases, Pt0,0003 During thc pcrlod: Sold 050 unlts el Pl50 pcr unit4 End of the period' A*iual counl of Produd X is P40 units

flcdodic lnYcntorv slrslom

P100,000.

(Et P1t0 per unii)Pamctual lnvcntoru ndcm

t FurdrascsAcoounls papblc

2 Freight in

Carh$ Aecounts receivableSalcs

No enlry for cosl of goodr cold

.l00,{t00

t00,000t0,000

10,00014?,500

r42,500

Merchandise imentoryAcconnts papble

Merdrandise inventory

CashAr+ounts receiYableSalcs

Gest of good sold

100,000

,0,000

t42,500

10+,500

100,000

10,000

t.12,500

104,500

t "4 Merdtandise irwenlory, end ,1,400

iact a0 cnndt q+ld t05.600

Mcrdtrndisc lruentorylnventoryshorlage 1.t00

Msrcfiandlse lmrcntor

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7/8

sa sX Co. returned goods worth P{,fi10 beceuse lhe goods were nol Es ordered.

Sales returns and allunances t,000Aceounts nec*iaable t,000

3 ABC colleded fiorn X Co in fuityellhin discouril period3,S20

8t)4,000

4 ABC prid LBC Trucking for freigtrl on goods dcliuarad lo X Oo, P500 (fr6 dt-Afrlaa-r-i c"r,)

CashSales discount

'ecffiunts Recsivable

Fraight+ut (or Dcliuory Erpensc) 5S0Cash 500

Selor rctums and alluruancrs0ntput tar

Aceounts recai'*ablE

CIash

$ales discountOutput tar

accounls Receivable

Freightoul {or Delivcry Erperse)Cash

Accounts papblcPurdrase discountlnpul tarCash

5,000

1,000,20

1,120

4,391.4080

8"004J80

500 5m5 ABC bought goods from lstafi, list pricc of F15,000 subied lo lrade discount of 20%, credit temrs of 5/l0,n80

Purcfiases fo,onov.r] 12,000 | PurdrasesAmunts papblc t2,000 | lnput tar

t2,0001,1'4@

13,{40

50000.00

10,640

I12,000

300,00038,000

,2,00024,000

24,000

'0Accoirnls papble qss@ it

ABC paid DttL tur freight on goods purdrased ffom lsetan, P300 (FOB shipping polrit) r,i/o v"tFreight in 300 | Freight in 300Cash 300 I Cash c*4

Purctase returns and sllaflonces 2,000 input tax ec.*6se l.a7< ,a-,.)rn Zd,Purdrase returns and atlerancas in ettoucna ,969

ABC paid the ernoilm cred loAmunts papblc

Purchase discountCash

lselan in fuliwilhin discouttt periodi 0,000 I t,200

7 ABC retumed goods worth lr2.00C found lo be defediue, reeived , 6fur *"GD"rn lsitan for same arnouil.Accountsfapblo 2,000 i accounrs-iffiocumca* 4e 2,210

5000,5s0

.)t.t l

'8. 't Jirt.A;31 Furdtased goods ftn as@urTl, P|00,000, :, ;' ptus 1296 VAT, n,130

'.fai.f -f f Sales on occaunt, P336,000 indusiue

of l2% \lAT

Jan. 31 To close lnpul lax and outtput tax andset up VAT Payable (Output tar > Inpul taror Prepaid Tar (lf lnput tar > output tar)

Feb. 15 Paid VAT P4able

Purdraseslnput tar

Acmunts payableAcmunts receivable

Sa es0u{put tax

Oulput T'arItrpul iarVAT Fapble

VAT FayableCash

100,[;0012,C00

33G,(r00

30,('00

24,000

C tr Purdrascd of Produd X, 1,000 unlls rt F100 pcr unlt or P 00,000.2 Paid fieighl on purdraseg, Pl0,0003 Durinplho porlod: $old 050 unlts rl Pl50 par unit{ End of the period: Ar*ual count of Frodud X is P40 unils (rt PX 10 per unil}

P_oAsdiq lnveltqgswltlpt Furrdrascs

Accounts payablc2 Freight in

OarhS Amunts reccivable

$alcsNo entry for cost of goods cold

4 Merdandise inuentory, endCosl of goods sold

FurdrosesFroight ln

tG0,000100,000

tr0,00010,000

14a,500142,50{)

,1,400

t05,600100,000

10,000

Pcmclual lnYcntorv setcmMerdrandise invenlory

Accountt paPblcMerdrandisc irwentory

CashAr*ourts recciYable

SalasOesl of good sold

Mcrdtrndiso iruenlorylruentoryshorlrge

Merdtandlca lnucnlotyCost of good *old

lnvanlory ehortago

r00,000

,0,000

142,500

i0{,500

,t00

1,100

100,000

10,000

tt[2,500

104,500

t,t00

l,to0

8/11/2019 1A9

8/8

Ngme Ririo ich /1 ' &rstag.rld $edion l-Act

umilure snd

lS*tes ciis,:tuil

iFrulaht-inI-.-r----

Itrpn-ddniuP$S.-p*U.?.ilI00s-me-milcdd0-@d[000r,)UEe-{r'&{ire6slrbp-m[hd Jar

Tr&tldad eo". v1turffi

Fo,s ths lnar endcd [hc. 31, 2008 (a'-"

i.f,oral

IrSalaries

Het irrr.lr.re

Nel lslcc.Less: Cos of goods so|d...........Grmr profit.........Add: ltffcrurl kxsflioTotal inomcLcsc: Operdhg arp.

lfilcrwl crp.0{st hmmG

Trhld.d Conntry

HBffiJ s,trternenl

Tririfid Coqpqylronr $aomqU

For lho trcr endcd Dcc. 31, flm

ir)

3aal3087G75

u-t8

Trinidad $unp*ry8d*rrca Shmil

Deoembsr 3 ; ?{mB

&rEtrTo*d tunercl tsselt. ?:? -TdC non+pnr*ml esp,etg..., . . ".-:3-Toltl ntrds -2t:3

Tdd errffil lab$thr....... ".A Tri$drd, ct$d.........,...Tdd &lobi&Jaa and Egtl8y.....

,25

frlo{o Far6rf+fi**a"Z fl / ,--t4rv'**it'tc,l-4- frtsffv'{'*l**s'hf ar

.l)q2 I q*lt

Fm tha yrm cndod Dec. 31. 2(n8