Accounting Process

Memorandum Method:

a.)

Nov. 4 Cash (9,000 x P100) 900,000

Ordinary Share Capital 900,000

Nov. 7 Subscriptions Receivable (5,500 x P120) 660,000

Subscribed Ordinary Share Capital (5,500 x P100) 550,000

Share Premium 110,000

Nov. 11 Cash (6,000 x P125 x 25%) 187,500

Subscriptions Receivable (6,000 x P125 x 75%) 562,500

Subscribed Ordinary Share Capital (6,000 x P100) 600,000

Share Premium 150,000

Nov. 15 Cash 660,000

Subscriptions Receivable 660,000


Subscribed Ordinary Share Capital 550,000

Ordinary Share Capital 550,000

Nov. 21 Machinery 125,000

Ordinary Share Capital (1,000 x P100) 100,000

Share Premium 25,000

Nov. 22 Cash 562,500

Subscriptions Receivable 562,500

Subscribed Ordinary Share Capital 600,000

Ordinary Share Capital 600,000

Nov. 24 Organization Costs 60,000

Ordinary Share Capital (500 x P100) 50,000