ADAMSON UNIVERSITY

ACCOUNTANCY DEPARTMENT
FINANCIAL ACCOUNTING AND REPORTING
Demonstration - Trial Balance
Prepare the Trial Balance for the month ended July 31, 20XX of Blooms Flower Shop
owned by Dexter. Omit the Peso sign. The following account titles are found in its Chart
of Accounts: Cash, Accounts Receivable, Furniture & Fixture, Office Equipment, Accounts
Payable, Notes Payable, Dexter Capital, Sales, Salaries & Wages, Supplies Expense,
Utilities Expense, Taxes & Licenses.

July 01 Dexter invested P500,000 as initial capital

July 02 Registered his business with the BIR and City Hall. Total registration costs,
P2,500
July 02 Bought a computer unit for P23,000
July 02 Bought 500 sheets of wrapping paper, P1,000
July 03 Purchased on account tables and chairs worth P16,000
July 06 Borrowed money from the bank, P500,000
July 08 Cash sales for the day, P35,000
July 15 Sales for the day: Cash - P25,000; On account – P10,000
July 20 Sales for the day: Cash – P15,000; On account – P20,000
July 25 Purchased additional wrapping paper, P1,000
July 27 Paid for the following utilities: electricity – P8,000; water – P3,000
July 29 Cash sales for the day, P5,000
July 30 Paid the salaries of the receptionist and delivery crew, P30,000
July 30 Made partial payment for the bank loan, P20,000

Prepared by: DANILO F. ACOSTA, CPA, MBA

 ADAMSON UNIVERSITY
ACCOUNTANCY DEPARTMENT
FINANCIAL ACCOUNTING AND REPORTING
Demonstration - Trial Balance
An important factor in the preparation of a correct Trial
Balance is the correct formulation of journal entries. Shown
below are the journal entries for the July transactions of
Blooms Flower Shop.
July 01 Dexter invested P500,000 as initial capital
Date Account Titles Debit (DR) Credit (CR)
July 01 Cash 500,000
Dexter, Capital 500,000

July 02 Registered his business with the BIR and City Hall. Total registration
costs, P2,500
Date Account Titles Debit (DR) Credit (CR)
July 02 Taxes & Licenses 2,500

Cash 2,500

July 02 Bought a computer unit for P23,000

Date Account Titles Debit (DR) Credit (CR)
July 02 Office Equipment 23,000
Cash 23,000

July 02 Bought 500 sheets of wrapping paper, P1,000

Date Account Titles Debit (DR) Credit (CR)
July 02 Supplies Expense 1,000
Cash 1,000

July 03 Purchased on account tables and chairs worth P16,000

Date Account Titles Debit (DR) Credit (CR)
July 03 Furniture & Fixture 16,000
Accounts Payable 16,000

Prepared by: DANILO F. ACOSTA, CPA, MBA

 ADAMSON UNIVERSITY
ACCOUNTANCY DEPARTMENT
FINANCIAL ACCOUNTING AND REPORTING
Demonstration - Trial Balance

July 06 Borrowed money from the bank, P500,000

Date Account Titles Debit (DR) Credit (CR)
July 06 Cash 500,000
Notes Payable 500,000

July 08 Cash sales for the day, P35,000

Date Account Titles Debit (DR) Credit (CR)
July 08 Cash 35,000

Sales 35,000

July 15 Sales for the day: Cash - P25,000; On account – P10,000

Date Account Titles Debit (DR) Credit (CR)
July 15 Cash 25,000
Accounts Receivable 10,000
Sales 35,000

July 20 Sales for the day: Cash – P15,000; On account – P20,000

Date Account Titles Debit (DR) Credit (CR)
July 20 Cash 15,000
Accounts Receivable 20,000
Sales 35,000

July 25 Purchased additional wrapping paper, P1,000

Date Account Titles Debit (DR) Credit (CR)
July 25 Supplies Expense 1,000
Cash 1,000

Prepared by: DANILO F. ACOSTA, CPA, MBA

 ADAMSON UNIVERSITY
ACCOUNTANCY DEPARTMENT
FINANCIAL ACCOUNTING AND REPORTING
Demonstration - Trial Balance

July 27 Paid for the following utilities: electricity – P8,000; water – P3,000
Date Account Titles Debit (DR) Credit (CR)
July 27 Utilities Expense 11,000
Cash 11,000

July 29 Cash sales for the day, P5,000

Date Account Titles Debit (DR) Credit (CR)
July 29 Cash 5,000

Sales 5,000

July 30 Paid the salaries of the receptionist and delivery crew, P30,000
Date Account Titles Debit (DR) Credit (CR)
July 30 Salaries & Wages 30,000
Cash 30,000

July 30 Made partial payment for the bank loan, P20,000

Date Account Titles Debit (DR) Credit (CR)
July 30 Notes Payable 20,000
Cash 20,000

Prepared by: DANILO F. ACOSTA, CPA, MBA

 ADAMSON UNIVERSITY
ACCOUNTANCY DEPARTMENT
FINANCIAL ACCOUNTING AND REPORTING
Demonstration - Trial Balance
Another important factor in the preparation of a correct Trial
Balance is the careful and proper posting of amount(s) found in
the journal entries to the corresponding General Ledger of a
particular account.
If the account and amount are debited in the journal entry,
transfer (post) the amount in the DEBIT side of the Ledger (T-
account).
If the account and amount are credited in the journal entry,
transfer (post) the amount in the CREDIT side of the Ledger (T-
account)
To illustrate:
July 01 Dexter invested P500,000 as initial capital
Date Account Titles Debit (DR) Credit (CR)
July 01 Cash 500,000
Dexter, Capital 500,000

CASH
Date Debit (DR) Date Credit (CR)

July 01 500,000

DEXTER, CAPITAL
Date Debit (DR) Date Credit (CR)

July 01 500,000

Prepared by: DANILO F. ACOSTA, CPA, MBA

 ADAMSON UNIVERSITY
ACCOUNTANCY DEPARTMENT
FINANCIAL ACCOUNTING AND REPORTING
Demonstration - Trial Balance

July 02 Registered his business with the BIR and City Hall. Total registration
costs, P2,500
Date Account Titles Debit (DR) Credit (CR)
July 02 Taxes & Licenses 2,500
Cash 2,500

CASH
Date Debit (DR) Date Credit (CR)

July 01 500,000 July 02 2,500

DEXTER, CAPITAL
Date Debit (DR) Date Credit (CR)

July 01 500,000

TAXES & LICENSES

Date Debit (DR) Date Credit (CR)

July 02 2,500

Prepared by: DANILO F. ACOSTA, CPA, MBA

 ADAMSON UNIVERSITY
ACCOUNTANCY DEPARTMENT
FINANCIAL ACCOUNTING AND REPORTING
Demonstration - Trial Balance

July 02 Bought a computer unit for P23,000

Date Account Titles Debit (DR) Credit (CR)
July 02 Office Equipment 23,000
Cash 23,000

CASH
Date Debit (DR) Date Credit (CR)

July 01 500,000 July 02 2,500

July 02 23,000

DEXTER, CAPITAL
Date Debit (DR) Date Credit (CR)

July 01 500,000

TAXES & LICENSES

Date Debit (DR) Date Credit (CR)

July 02 2,500

OFFICE EQUIPMENT
Date Debit (DR) Date Credit (CR)

July 02 23,000

The same procedure shall be done for all of the journal entries.

Prepared by: DANILO F. ACOSTA, CPA, MBA

 ADAMSON UNIVERSITY
ACCOUNTANCY DEPARTMENT
FINANCIAL ACCOUNTING AND REPORTING
Demonstration - Trial Balance
Upon posting all of the journal entries to their respective
general ledger accounts, the next step will be to extract the
balance on a per account basis.

To extract the balance on a per account basis, sum up all the

amounts posted in the DEBIT side of the Ledger (T-account);
Sum up all the amounts posted in the CREDIT side of the
Ledger (T-account). Then, compute for the difference.

Shown below are the general ledger accounts of Blooms Flower

Shop with the corresponding extracted balance(s).

CASH
Date Debit (DR) Date Credit (CR)

July 01 500,000 July 02 2,500

July 06 500,000 July 02 23,000
July 08 35,000 July 02 1,000
July 15 25,000 July 25 1,000
July 20 15,000 July 27 11,000
July 29 5,000 July 30 30,000
July 30 20,000
------------- -------------
1,080,000 88,500
Balance DR 991,500
------------- -------------
1,080,000 1,080,000
======= =======

Prepared by: DANILO F. ACOSTA, CPA, MBA

 ADAMSON UNIVERSITY
ACCOUNTANCY DEPARTMENT
FINANCIAL ACCOUNTING AND REPORTING
Demonstration - Trial Balance
DEXTER, CAPITAL
Date Debit (DR) Date Credit (CR)

July 01 500,000
------------- -------------
0 500,000
Balance CR 500,000
------------- -------------

500,000 500,000
======= =======

TAXES & LICENSES

Date Debit (DR) Date Credit (CR)

July 02 2,500
------------- -------------
2,500 0
Balance DR 2,500
------------- -------------
2,500 2,500
======= =======

OFFICE EQUIPMENT
Date Debit (DR) Date Credit (CR)

July 02 23,000
------------- -------------

23,000 0
Balance DR 23,000
------------- -------------
23,000 23,000
======= =======

Prepared by: DANILO F. ACOSTA, CPA, MBA

 ADAMSON UNIVERSITY
ACCOUNTANCY DEPARTMENT
FINANCIAL ACCOUNTING AND REPORTING
Demonstration - Trial Balance
SUPPLIES EXPENSE
Date Debit (DR) Date Credit (CR)

July 02 1,000
July 25 1,000
------------- -------------
2,000 0

Balance DR 2,000
------------- -------------
2,000 2,000
======= =======

FURNITURE & FIXTURE

Date Debit (DR) Date Credit (CR)

July 03 16,000
------------- -------------
16,000 0
Balance DR 16,000
------------- -------------
16,000 16,000
======= =======

Prepared by: DANILO F. ACOSTA, CPA, MBA

 ADAMSON UNIVERSITY
ACCOUNTANCY DEPARTMENT
FINANCIAL ACCOUNTING AND REPORTING
Demonstration - Trial Balance
ACCOUNTS PAYABLE
Date Debit (DR) Date Credit (CR)

July 03 16,000
------------- -------------
0 16,000
Balance CR 16,000
------------- -------------
16,000 16,000
======= =======

NOTES PAYABLE
Date Debit (DR) Date Credit (CR)

July 30 20,000 July 06 500,000

Balance CR 480,000
------------- -------------
500,000 500,000
======= =======

ACCOUNTS RECEIVABLE
Date Debit (DR) Date Credit (CR)

July 15 10,000
July 20 20,000
------------- -------------
30,000 0
Balance DR 30,000
------------- -------------
30,000 30,000
======= =======

Prepared by: DANILO F. ACOSTA, CPA, MBA

 ADAMSON UNIVERSITY
ACCOUNTANCY DEPARTMENT
FINANCIAL ACCOUNTING AND REPORTING
Demonstration - Trial Balance
SALES
Date Debit (DR) Date Credit (CR)

July 08 35,000
July 15 35,000
July 20 35,000
July 29 5,000
------------- -------------
0 110,000
Balance CR 110,000
------------- -------------
110,000 110,000
======= =======

UTILITIES EXPENSE
Date Debit (DR) Date Credit (CR)

July 27 11,000
------------- -------------
11,000 0
Balance DR 11,000
------------- -------------
11,000 11,000
======= =======

Prepared by: DANILO F. ACOSTA, CPA, MBA

 ADAMSON UNIVERSITY
ACCOUNTANCY DEPARTMENT
FINANCIAL ACCOUNTING AND REPORTING
Demonstration - Trial Balance
SALARIES & WAGES
Date Debit (DR) Date Credit (CR)

July 30 30,000
------------- -------------
30,000 0
Balance DR 30,000
------------- -------------
30,000 30,000
======= =======

If the total debit is greater than the total credit, the difference
is called DEBIT BALANCE. Extend or bring this amount to the
Debit column of the Trial Balance.

If the total credit is greater than the total debit, the difference
is called CREDIT BALANCE. Extend or bring this amount to the
Credit column of the Trial Balance.

Shown below is the Trial Balance of Blooms Flower Shop for the
month of July. Note that the five major accounts are presented
or listed in the following order:
1. Assets
2. Liabilities
3. Owner’s Equity
4. Revenues
5. Expenses
Also note that in the Trial Balance the Total Debit is equal to
the Total Credit.

Prepared by: DANILO F. ACOSTA, CPA, MBA

 ADAMSON UNIVERSITY
ACCOUNTANCY DEPARTMENT
FINANCIAL ACCOUNTING AND REPORTING

Demonstration - Trial Balance

Blooms Flower Shop
Trial Balance
For the month ended July 31, 20XX
Account Title DR CR

Cash 991,500

Accounts Receivable 30,000

Office Equipment 23,000

Furniture & Fixture 16,000

Accounts Payable 16,000

Notes Payable 480,000

Dexter, Capital 500,000

Sales 110,000

Taxes & Licenses 2,500

Supplies Expense 2,000

Utilities Expense 11,000

Salaries & Wages 30,000

------------- -------------

Total 1,106,000 1,106,000

======= =======

Prepared by: DANILO F. ACOSTA, CPA, MBA

 ADAMSON UNIVERSITY
ACCOUNTANCY DEPARTMENT
FINANCIAL ACCOUNTING AND REPORTING

Demonstration - Trial Balance

Clarisse Gargamonte opened Whirl & Twirl Studio, which offers yoga, ballet,
stretch, and tone classes. The following are the transactions for July:
July 01 Opened a business bank account with a cash deposit of P500,000.
July 02 Signed a contract of lease for a suite with SM Megamall for a monthly
rental of P30,000. Made a rent deposit of P150,000 which is good for
five months.
July 03 A computer, fax machine, and mobile phone which are personal
properties of Ms. Clarisse purchased for P68,500 just a month ago
were transferred to the studio.
July 04 Purchased a stereo set for use in the salon worth P245,000 from Music
Company. Terms: P45,000 down payment, the balance payable in
two equal monthly installments starting at the end of the month.
July 08 Purchased stationery and supplies for office use and paid cash of
P15,000.
July 10 Bought furniture and fixtures from Comfy Furniture Store and gave a
50% down payment of P25,000. She issued a promissory note for the
balance due in 15 days.
July 19 Ms. Clarisse withdrew P5,000 for personal use.
July 25 Paid the promissory note which matures today.
July 30 Hired a beautician and hair cutter for a monthly salary of P5,000
each.
July 31 Paid the first installment to Music Company.

Use the following account titles: Cash, Accounts Receivable, Office Equipment,
Furniture & Fixture, Rent Deposit, Installment Payable, Notes Payable, Clarisse
Capital, Clarisse Drawing, Supplies Expense, Rent Expense, Salaries and Wages.

Prepared by: DANILO F. ACOSTA, CPA, MBA

 ADAMSON UNIVERSITY
ACCOUNTANCY DEPARTMENT
FINANCIAL ACCOUNTING AND REPORTING

Demonstration - Trial Balance

Date Account Titles DR CR
July 01 Cash 500,000
Clarisse Capital 500,000
To record initial investment

July 02 Rent Deposit 150,000

Cash 150,000
Payment of rent deposit

July 03 Office Equipment 68,500

Clarisse Capital 68,500
To record additional investment

July 04 Office Equipment 245,000

Cash 45,000
Installment Payable 200,000
To record acquisition of stereo set

July 08 Supplies Expense 15,000

Cash 15,000
To record purchase of supplies

July 10 Furniture & Fixture 50,000

Cash 25,000
Notes Payable 25,000
To record acquisition of furniture

July 19 Clarisse Drawing 5,000

Cash 5,000
To record owner’s drawing

Prepared by: DANILO F. ACOSTA, CPA, MBA

 ADAMSON UNIVERSITY
ACCOUNTANCY DEPARTMENT
FINANCIAL ACCOUNTING AND REPORTING

Demonstration - Trial Balance

July 25 Notes Payable 25,000
Cash 25,000
To record payment of note

July 30 No Journal Entry Required

July 31 Installment Payable 100,000

Cash 100,000
To record 1st installment to Music Co.

Cash
July 01 500,000 July 02 150,000

July 04 45,000

July 08 15,000

July 10 25,000

July 19 5,000

July 25 25,000

July 31 100,000

---------------- ----------------

500,000 365,000

Balance DR 135,000

---------------- ----------------

500,000 500,000

======== ========

Prepared by: DANILO F. ACOSTA, CPA, MBA

 ADAMSON UNIVERSITY
ACCOUNTANCY DEPARTMENT
FINANCIAL ACCOUNTING AND REPORTING

Demonstration - Trial Balance

Clarisse, Capital
July 01 500,000

July 03 68,500

---------------- ----------------

0 568,500

Balance CR 568,500

---------------- ----------------

568,500 568,500

======== ========

Rent Deposit
July 02 150,000

---------------- ----------------

150,000 0

Balance DR 150,000

---------------- ----------------

150,000 150,000

======== ========

Prepared by: DANILO F. ACOSTA, CPA, MBA

 ADAMSON UNIVERSITY
ACCOUNTANCY DEPARTMENT
FINANCIAL ACCOUNTING AND REPORTING

Demonstration - Trial Balance

Office Equipment
July 03 68,500

July 04 245,000

---------------- ----------------

313,500 0

Balance DR 313,500

---------------- ----------------

313,500 313,500

======== ========

Installment Payable
July 31 100,000 July 04 200,000

---------------- ----------------

100,000 200,000

Balance CR 100,000

---------------- ----------------

200,000 200,000

======== ========

Prepared by: DANILO F. ACOSTA, CPA, MBA

 ADAMSON UNIVERSITY
ACCOUNTANCY DEPARTMENT
FINANCIAL ACCOUNTING AND REPORTING

Demonstration - Trial Balance

Supplies Expense
July 08 15,000

---------------- ----------------

15,000 0

Balance DR 15,000

---------------- ----------------

15,000 15,000

======== ========

Furniture & Fixture

July 10 50,000

---------------- ----------------

50,000 0

Balance DR 50,000

---------------- ----------------

50,000 50,000

======== ========

Prepared by: DANILO F. ACOSTA, CPA, MBA

 ADAMSON UNIVERSITY
ACCOUNTANCY DEPARTMENT
FINANCIAL ACCOUNTING AND REPORTING

Demonstration - Trial Balance

Notes Payable
July 25 25,000 July 10 25,000

======== ========

Clarisse, Drawing
July 19 5,000

---------------- ----------------

5,000 0

Balance DR 5,000

---------------- ----------------

5,000 5,000

======== ========

Prepared by: DANILO F. ACOSTA, CPA, MBA

 ADAMSON UNIVERSITY
ACCOUNTANCY DEPARTMENT
FINANCIAL ACCOUNTING AND REPORTING

Demonstration - Trial Balance

Whirl & Twirl Studio
Trial Balance
For the month ended July 31

Account Title DR CR

Cash 135,000

Furniture & Fixture 50,000

Office Equipment 313,500

Rent Deposit 150,000

Installment Payable 100,000

Clarisse, Capital 568,500

Clarisse, Drawing 5,000

Supplies Expense 15,000

---------------- ----------------

Total 668,500 668,500

======== ========

Prepared by: DANILO F. ACOSTA, CPA, MBA