ROUNDING OFF INCOME MATRIX

Rules of Rounding Off Example

MJT washing house has the following transaction for its
1. If the digit or digits to be drop is greater than or first month operation.
equivalent to 5, 50, 500, 5000 and so on add 1 to
proceeding digit. May 2 – The owner invested cash in the business, P75,000
2. If the digit or digits to be drop is less than 5, 50, 500, 3 – Purchase washing equipment on credit, P60,000
5000 and so on the proceeding digit should be remain 5 – Bought washing supplies in cash, P15,000
7 – Received cash for washing services, P11,500
Example: 9 – Bought washing equipment in cash, P22,500
Round off to the nearest tenth 12 – Received Note for washing services, P7,500
A B 14 – Received cash for washing services, P13,500
1. 123.59 = 123.6 1 15 – Paid workers salaries, P9,500
2. 256.769 = 256.8 1 22 – Collected the note dated May 12
3. 596.4500 = 596.5 1 23 – Received cash for washing services, P8,500
4. 621.36122 = 621.4 1 26 – Paid utility bills in cash, P3,500
28 – Owner withdraw cash, P5,000
SIGNIFICANT DIGITS 30 – Received cash for washing services, P9,000
Rules in determining the number of significant digits in 31 – Paid worker salaries, P9,500
rounded number:
Income/Expense Asset - Liabilities = Capital
1. All non-zero digits in a rounded numbers are significant. 5/2 +75,000 +75,000
Example: 123456789 significant 9 5/3 +60,000 +60,000
2. Zeros to the right of non-zero digit in a rounded whole 5/5 -15,000 -15,000
number are not significant. 5/7 +11,500 +11,500
Example: 2,000,000 significant 1 5/9 +22,500
3. Zeros in between two non-zero digits in a rounded -22,500
number are significant. 5/12 +7,500 +7,500
Example: 303 significant 3 5/14 +13,500 +13,500
10.01 significant 4 5/15 -9,500 -9,500
4. Zeros to the left and to the right of a decimal point but 5/22 +7,500
located at the right side of a non-zero digit in rounded -7,500
number are significant. 5/23 +8,500 +8,500
Example: 20.00 significant 4 5/26 -3,500 -3,500
5. Zeros to the left and to the right of a decimal point but 5/28 -5,000 -5,000
located at the left side of non-zero digit in a rounded 5/30 +9,000 +9,000
number are not significant 5/31 -9,500 -9,500 ______ _______
Example: 0.0001 significant 1 Total 12,500 142,500 - 60,000 70,000
Significant number and rule number exercise ______ ______ +12,500
82,500 82,500
# of Significant Rule #
Exercise #9 Income Matrix
1. 123456789 9 1 MJT Marketing Services started its operations with the
2. 2,000,000 1 2 following transactions
3. 303 3 3
4. 10.01 4 3 1. Owner invested P200,000 cash in the business
5. 101,000 3 2,3 2. Paid rent for P35,000 cash
6. 20.00 4 4 3. Paid employee wages for P155,750
7. 101.00 5 3,4 4. Collected P295,000 cash for services rendered
8. 10.010 5 3,4 5. Borrowed cash P250,000 and issue a note
9. 0.0001 1 5 6. Received P300,000 cash for services rendered
10. 0.0010 2 4,5 7. Bought marketing equipment for P500,000 paid 50%
11. 0.0101 3 3,5 cash and issued note for the balance
12. 0.01010 4 3,4,5 8. Bought office equipment in cash P125,000
9. Paid employee wages, P155,750
10. Owner withdrew cash, P25,000

Income/Expense Asset - Liabilities = Capital

1. +200,000 +200,000
2. -35,000 -35,000
3. -155,750 -155,750
4. +295,000 +295,000
5. +250,000 +250,000
6. +300,000 +300,000
7. +500,000
-250,000 +250,000
8. +125,000
-125,000
9. -155,750 -155,750
10. ________ -25,000 _______ -25,000
Total 248,500 923,500 - 500,000 175,000
_______ _______ 248,500
423,500 423,500

NORTH-WEST METHODS
BALANCED TRANSPORTATION SAMPLE

W1 W2 W3 SUPPLY

10 7 9

A
300 100 400 100
Total Cost = 300(10)+100(7)+400(6)
+200(5)+500(8)
8 6 5
PLANT Total Cost = P 11,100
B
400 200 600 200

6 10 8

C
500 500

DEMAND
300 500 700
400 500
 MINIMUM ENTRY METHOD BALANCED TRANSPORTATION SAMPLE

W1 W2 W3 SUPPLY

10 7 9

A
400 400

8 6 5 Total Cost = 400(7)+600(5)+300(6)

PLANT
+100(10)+100(8)
B
600 600 Total Cost = P 9,400

6 10 8

C
300 100 100 500 200 100

DEMAND
300 500 700
100 100

VOGEL’S ENTRY METHOD

W1 W2 W3 SUPPLY

10 400 7 9 2 2
BALANCED TRANSPORTATION SAMPLE
A
400 Total Cost = 300(6)+400(7)+600(5)
+100(10)+100(8)
8 6 600 5 1 1 -
PLANT Total Cost = P 9,400
B
600

300 6 100 10 100 8 2 2 -

C 500 200
100
DEMAND 2 1 1
300 500 1
700 1
100 4 100 3