In August 2021, Aurora Veronica Pascual and Portia Ignacio formed GLS Partnership, a NON-
VAT registered Legal Services with initial capital contribution of P200, 000 each and agreed Additional Information:
to share profits and losses equally. 1. Depreciation on office equipment is 10% per annum based on the office equipment
The entity prepares financial statement on a monthly basis; hence, it prepares adjusting and balance.
closing entries at the end of each month. 2. Purchases of supplies are immediately charge to expense
The chart of accounts of GLS Partnership is as follows: 3. Percentage Tax is accrued monthly at 3% of service revenues.
110 Cash
120 Accounts Receivable
130 Input VAT Presented below is the Post Closing Trial Balance of GLS Partnership for the month ended
140 Office Equipment September 30, 2021.
145 Accumulated Depreciation – Office Equipment
Debit Credit
210 Accounts Payable
220 Withholding Tax Payable
230 Expanded Withholding Tax Payable
Cash ₱ 375,000
240 SSS, PhilHealth and Pagibig Contributions Payable Accounts Receivable 100,000
250 Utilities Payable Office Equipment 150,000
260 Accrued Percentage Tax Payable Accumulated Depreciation- Office Equipment ₱ 8,000
310 A. Pascual, Capital Withholding Taxes Payable 1,000
320 P. Ignacio, Capital Expanded Withholding Tax Payable 5,000
330 A. Pascual, Withdrawals SSS, Philhealth and PAG-IBIG Contribution Payable 8,000
340 P. Ignacio, Withdrawals Utilities Payable 4,200
350 Income Summary Accrued Percentage Tax Payable 4,950
410 Service Revenues
A. Pascual, Capital 296,925
510 Salaries Expense
P. Ignacio, Capital 296,925
520 SSS, PhilHealth and Pagibig Contribution
530 Rent Expense
540 Utilities Expense
550 Supplies Expense
560 Transportation Expenses
570 Depreciation Expense –Office Equipment
580 Percentage Tax Expense
590 Miscellaneous Expense
