FUNDAMENDALS OF

ABM
GENERAL & SPECIAL JOURNALS
BLAST IN THE PAST…
Identify the inventory system used in the following transactions.
Write PCIS for Periodic Inventory System, PLIS for Perpetual Inventory
System and SM if it is use both in Periodic & Perpetual Inventory
System.
1. M.Timba invested ₱250,000 in Plastic ni Marites merchandise.
Date Particulars Debit Credit
xxx Cash 250,000
M.Timba, Capital 250,000
2. Bought Merchandise at Plastican ng Bayan worth ₱50,000 in cash.
Date Particulars Debit Credit
xxx Merchandise Inventory 50,000
Cash 50,000
3. Sold basin, dipper, pail and hanger worth ₱20,000 to Capal
Tiangge. 50% where paid in cash while the other half has term
of 2/10, n/30. Merchandise cost ₱10,000.
Date Particulars Debit Credit
xxx Cash 10,000
Accounts Receivable 10,000
Sales 20,000
4. Received full payment 9 days after transaction was made from Capal
Tiangge.
Date Particulars Debit Credit
xxx Cash 9,800
Sales Discount 200
Accounts Receivable 10,000
5. Bought Merchandise at Sunrise Merchandise worth ₱80,000
terms 2/10, n/EOM.
Date Particulars Debit Credit
xxx Purchases 80,000
Accounts Payable 80,000
6. Sold 5 dozen of big tumbler in cash worth ₱10,000 to Myrna
Co. Merchandise cost ₱5,000.
Date Particulars Debit Credit
xxx Cash 10,000
Sales 10,000
Cost of Goods Sold 5,000
Merchandise Inventory 5,000
7. Made refund to Myrna Co on cash purchased made for
defective merchandise, ₱500.
Date Particulars Debit Credit
xxx Sales Return & Allowances 500
Cash 500

8. Bought Merchandise at ABC Plasticware in Divisoria worth ₱25,000,

terms 3/10, n/30.

Date Particulars Debit Credit

xxx Merchandise Inventory 25,000
Accounts Payable 25,000
9. Sold Merchandise to Mr. Cocuhain worth ₱7,000, terms 2/15,
n/30. Merchandise cost ₱3,500.
Date Particulars Debit Credit
xxx Accounts Receivable 7,000
Sales 7,000
10. Return defective merchandise to ABC Plasticware, worth
₱1,200.
Date Particulars Debit Credit
xxx Cash 3,500
Purchase Return & Allowances 3,500
Special Journal
a journal other than a general journal that records types of
transactions which occur frequently.
It may be seen as a repetitive list of entries when a general
journal is used.
The four common types of special journals:
Sales Journal (SJ)
used to record all sales on credit/account. It repeatedly records
debit on accounts receivable and credit on sales.
Purchases Journal (PJ)
is used to record all purchase merchandise/inventory on
credit/account. It repeatedly records debit to purchases and
credit to accounts payable.
Cash Receipts Journal (CRJ)
is used to record receipts of cash from whatever source / used to
record all cash that had been received. It repeatedly records a
debit to cash.
Cash Disbursements Journal (CDJ)
is used to record all payments of cash for whatever purpose /
used to record all transactions involving cash payment. It
repeatedly records a credit to cash.
LET’S KEEP THE BALL ROLLING…
Let us now analyze and journalize transactions in merchandising
business using CRJ, CDJ, and GJ

Sept. 1 - L, the owner, invested P300,000 cash into the business. (OR#001).

CASH RECEIPT JOURNAL CR1

Date OR # Received From Ref. Cash L, Capital
Dr Cr
Sept. 1 001 L 300,000 300,000
Sept. 2 - Purchased from G store supplies worth P3,000 on cash basis
(CV#001)
CASH DISBURSEMENT JOURNAL CD 1
Date Check Voucher Paid to Store Supplies Cash
No. Dr Cr
Sept. 2 001 G 3,000 3,000
Sept. 3 - Returned P300 worth of store supplies purchased from G
(OR#002)
CASH RECEIPT JOURNAL CR1
Date OR # Received Ref. Cash Sales Store
From Dr Cr Supplies
Cr
Sept. 3 002 G 300 300
Sept. 4 - Purchased from H store supplies worth P4,000 on account
GENERAL JOURNAL GJ1
Date Account Title Ref Debit Credit
Sept 4 Store Supplies 4,000
Accounts Payable - H 4,000
Purchase Store Supplies
Sept. 5 - Returned P400 worth of store supplies purchased from H
GENERAL JOURNAL GJ1
Date Account Title Ref Debit Credit
Sept 5 Accounts Payable - H 400
Store Supplies 400
Returned Store Supplies purchase
Sept. 6 - Purchased from J store equipment worth P30,000 on cash basis
(CV#002)
CASH DISBURSEMENT JOURNAL CD 1
Date Check Voucher Paid to Ref Store Cash
No. Equipment Cr
Dr
June 6 002 J 30,000 30,000

Sept. 7 - Was granted a P2,500 allowance on store equipment purchased

from J (OR#003)
CASH RECEIPT JOURNAL CR1
Date OR # Received From Ref. Cash Store Equipment
Dr Cr
June 7 003 J 2,500 2,500
Sept. 8 - Purchased from K store equipment worth P40,000 on terms
P10,000 down, balance on account (CV#003)
CASH DISBURSEMENT JOURNAL CD
1
Date Check Paid to Ref Accounts Store Cash
Voucher No. Payable Equipment Cr
Dr (Cr) Dr
Sept 810 - Received
Sept. 003 K
from Meralco 30,000bill for the
the electricity 40,000
month of10,000
May
amounting to P11,000
GENERAL JOURNAL GJ1
Date Account Title Ref Debit Credit
Sept 10 Utilities Expense 11,000
Accounts Payable – Meralco 11,000
Received utility bill
Sept. 11 - Paid rent of P20,000 (CV#004) for the month
CASH DISBURSEMENT JOURNAL
CD1
Date Check Paid to Ref Accounts Purchases Rent Expense Purchase Cash
Voucher No. Payable Discount
Dr Dr Cr
Dr (Cr) Cr
Sept. 11 004 Lessor 20,000 20,000
Sept. 13 Paid the utility bill received last Sept. 10 (CV#007)
CASH DISBURSEMENT JOURNAL
CD1
Date Check Paid to Ref Utility Purchas Other Purchase Cash
Voucher No. Expense es Accounts Discount Cr
Dr (Cr) Dr Dr Cr
June 007 Meralco 11,000 11,000
12
 LET US RUN THROUGH…
Analyze each transaction. Identify what journal should be use in recording. PJ –
Purchase Journal, SJ – Sales Journal, CDJ – Cash Disbursement Journal, CRJ –
Cash Receipts Journal & GJ – General Journal.
1. August 1, Maria de Paz invested ₱100,000 in her new Bookworm Supplies, a
school supplies business.
2. August 2, purchased merchandise from Office Warehouse Company amounting to
P15,000 cash.
3. August 3, purchased merchandise from Pandayan Bookshop amounting to P6,000,
50% where paid in cash while the half has a terms of 5/10, n/EOM
4. August 7, Bookworm Supplies returned P3,000 worth of merchandise to Office
Warehouse Company. Cash refund was granted.

5. August 13, Bookworm Supplies paid the account balance to Pandayan Bookshop.
6. August 14, sold merchandise to Kumon Learning Center with a price of P12,000,
terms 3/10, n/EOM.
7. August 15, received bill from prime water worth P2,750 for the month of July.
8. August 18, Sold merchandise to ABC Tutorial amounting to ₱7,500 terms 2/10 , n/30
9. August 20, Paid utility bill received last August 15.
10. August 23, purchase merchandise in AMSPEC amounting to ₱65,000 they gave
20% downpayment and the rest has a term of 2/10, n/30.
11. August 25, paid salaries of Alamat and Fable worth ₱20,000.
12. August 26, Sold merchandise to Mary Lapis worth ₱12,200.
13. August 28, Bought new computer set to be used for recording of transactions, terms
3/10 , n/30.
14. August 29, Sold merchandise to Divina Garcia amounting to ₱10,500 in cash.
15. August 30, Maria de Paz withdrew cash from the business amounting to ₱2,000 for
her personal use.