3rd Ed Textbook Solutions Even Numbers

i

SECTION 1

CHAPTER 1

INTRODUCTION TO ACCOUNTING – THEORY AND PRINCIPLES Note – in many cases with theory based questions, alternative answers or additional information may be appropriate.

Solution 1.2

Do they have the capacity to pay? Is the business a good credit risk? Do they have a good cash flow? Does the business have a profitable history? Have they borrowed money from other bodies? Have they already borrowed excessive amounts (gearing)?

Solution 1.4

Accounting is the process of collecting, classifying, recording, reporting, interpreting and analysing the effect of financial

transactions on a business or organisation to provide information to owners, management and other interested parties.

Solution 1.6

Directors, management, shareholders, banks, customers, suppliers, government bodies and staff and any interested party who intends to use the financial information to make decisions

Solution 1.8

Sole traders and partnerships.

Solution 1.10

(a) A customer pays cash for a purchase Copy of cash receipt

(b) A business pays rent to building owner Cheque butt

(c) A customer buys goods and agrees to pay later Copy of tax invoice

(d) the stores manager informs the accounting department that some inventory has been damaged or destroyed

Internal memorandum

(e) the business receives a cheque from a customer Copy of cash receipt

(f) the business makes a payment to the owner of the business Cheque butt

(g) goods are returned by a debtor (accounts receivable) Copy of Adjustment (Credit) Note

Solution 1.12

It is important that all business transactions are recorded. Using accountable documents (e.g. pre-numbered) helps ensure the completeness of these records. Any missing numbers indicate an unrecorded transaction. Secure storage of accountable documents and documented policies and procedures help ensure accountability of these documents

Solution 1.14

(i) sale of goods on credit Copy of tax invoice

(ii) cash paid to a creditor (accounts payable) Cheque butt

(iii) goods returned by a debtor (accounts receivable) Copy of adjustment note

(iv) cash received from a debtor (accounts receivable) Copy of cash receipt

Solution 1.16

No solution provided.

Solution 1.18

All except (c) – credit sales will not appear on the deposit slip.

Solution 1.20

(a) 10% of the cost is GST. Add 10% to the cost to calculate the total invoice value (b) Divide the total invoice vale by 11 to calculate the GST amount.

Solution 1.22

(a) $250 (b) $858 (c) $120 (d) $195 (e) $1 045 (f) $2 079 (g) $137.50 (h) $3 548.05

Solution 1.24

GST = $1 650 / 11 = $150 Value of goods = $1 650 – $150 = $1 500

Solution 1.26

Transaction GST impact buys a motor vehicle valued at $25 000 $2 500 paid pays their telephone account valued at $850

85 paid

buys stock valued at $3 000 300 paid sells goods valued at $35 000 (3 500) collected Total payable to ATO (615)

iii

Solution 1.28

Liabilities:

(c) loan from JLW Finance Company

(d) bank overdraft

(e) amounts due to suppliers

(h) mortgage

(i) GST collected

(k) accounts payable

Solution 1.30

(a) accounts receivable

Amounts owing by customers

(b) accounts payable Amounts owing to suppliers

(c) inventory Goods purchased for resale by the business

(d) GST collected GST on sales collected by the business and payable to the ATO

(e) capital Net value of assets (less liabilities) introduced by the owner to the business

(f) drawings Amounts (or assets) taken by the owner for their own personal use

(g) income earnings of the business such as sales and fees received

(h) expense costs of earning income such as wages and advertising expenses

(i) mortgage Amount owning to a lender in relation to borrowing made by the business to acquire an asset (e.g. land and buildings)

(j) profit the business makes a profit when the income earned is greater than the expenses

(k) bank overdraft Where the business has paid more from their bank account than they deposited and therefore owe this money to the bank – a short term or current liability.

Solution 1.32

(a) delivery costs Expense

(b) sales Income

(c) dividends received Income

(d) cash Asset

(e) shares in other companies Asset

(f) rent Expense

(g) loan from ACB Finance Company

Liability

(h) repairs and maintenance Expense

(i) equipment Asset

(j) bank overdraft Liability

(k) interest received Income

(l) sales commission paid Expense

(m) salaries Expense

(n) commission received Income

(o) bank charges Expense

Solution 1.34

Accounting conventions are accepted customs followed by the accounting profession. Accounting Doctrines refer to generally held beliefs or principles.

Solution 1.36

Doctrine of consistency – This requires the business to follow the same accounting principles or methods from one accounting period to the next. For example, the valuation method used for inventory at the end of one financial year should be the same as that used at the end of the previous financial year. If there is some valid reason to change the valuation method, this reason and the financial impacts of the change should be disclosed in the financial statements.

Doctrine of disclosure – Under the doctrine of disclosure, the financial statements should be prepared at a sufficient level of detail to allow the owner (or any other interested party) to understand what has occurred in the reporting period and the current financial position of the business.

Doctrine of materiality – This doctrine states that all significant items relating to the operations of the business or its current financial position must be disclosed. This doctrine also extends to the level of accuracy in the financial statements in relation to reporting to the nearest dollar or the neared 1 000 dollars. The size of the business will be the main determinant of this level of accuracy.

Solution 1.38

No, the primary purpose is to match income and expenses for the same period to determine an accurate measure of performance (profit) that may be compared from one period to another.

Solution 1.40

(a) monetary convention

(b) business entity convention

Solution 1.42

Under the Corporations Law standards issued by the AASB are legally enforceable for companies only. However, all members of the professional accounting associations, under their membership rules, must observe them.

Solution 1.44

No - under the Corporations Law standards issued by the AASB are legally enforceable for companies only. However, all members of the professional accounting associations, under their membership rules, must observe them.

Solution 1.46

(a) depreciation of non-current assets AASB116 (AAS 4)

(b) materiality in financial statements AASB1031 (AAS 5)

(c) accounting for the acquisition of assets AASB116 (AAS21)

(d) profit and loss or other operating statements

AASB101 (AAS 1)

(e) statement of cash flows AASB107 (AAS 28)

Solution 1.48

The four principal qualitative characteristics are understandability, relevance, reliability and compatibility.

No examples provided.

Solution 1.50

v

No suggested solution

Solution 1.52

(a) If you agreed you would not be following the professions code of ethics (may include integrity, technical & profession standards, professional competence and acting in an ethical manner) and would be subject to disciplinary action.

(b) If you agreed you would not be following the professions code of ethics (particularly in relation to acting with integrity) and would be subject to disciplinary action.

1

SECTION 1

CHAPTER 2

ACCOUNT IDENTIFICATION, TRANSACTION ANALYSIS AND THE ACCOUNTING EQUATION Solution 2.2

(a) Items owned by the business which will be of use to future accounting periods. (b) Amounts owed by the business for goods and services received but not paid for or financed. (c) Owners’ investment in the business, represented by net assets.

Solution 2.4

Assets = Liabilities + Proprietorship

(a) Cash 8 000 A/c payable $1 500 + Capital $20 500

Inventory 9 000

A/C Receivable 5 000 ______ ______

$22 000 = $1 500 $20 500

(b) Plant & mach 22 000 A/c payable $3 700 + Capital $35 200

Inventory 14 000

Cash 2 400

Petty cash 500 _____ _______

$38 900 = $3 700 + $35 200

(c) Motor vehicle 42 800 Bank o/d $5 700 + Capital $60 600

A/C Receivable 14 300

Inventory 9 200 ______ ______

$66 300 = $5 700 + $60 600

(d) Computer Equipment

27 300 Bank o/d $11 300 + Capital $136 200

Furniture & fittings 18 200 Mortgage 45 000

Land & bldg 147 000 _______ _______

$192 500 = $56 300 $136 200

Solution 2.6

(a) OE increases $8 400 (b) OE decreases $5 200 (c) OE increases $7 900 (d) OE increases $10 000 (e) OE decreases $18 500 (f) OE increases $1 800 (g) OE decreases $1 600 (h) OE decreases $9 900

Solution 2.8

(a) Current assets are assets that will be converted into cash or used by the business within the next 12 months (such as accounts receivable). That is, they will be fully used up by the business in its operations within the

Solutions to Accounting – A Practical Approach

2

next 12 months. Examples of current assets include: petty cash, bank, accounts receivable, inventory and GST paid.

Non-current assets are assets that could be used by the business for a period greater than 12 months. These are assets that have a longer life span than just one year and include: land, buildings, motor vehicles, office equipment and computers.

(b) Current liabilities are obligations that the business must pay within 12 months. Examples of current liabilities include: accounts payable, short-term loans, GST collected and bank overdraft.

Non-current liabilities are obligations that the business will repay over a time span longer than 12 months. Examples include: mortgages and long-term loans.

(c) Liabilities are amounts owed to third parties. Owner’s equity is the amount owed to the business owner after all other liabilities have been paid.

(d) Assets are items that have value to the business. Expenses are items that have been spent in order for the business to

operate and have no ongoing value. (e) Income is revenue received by the business from its operations and liabilities are amounts owing by the business.

Solution 2.10

Current Assets Non-current Assets

Inventory Motor vehicles Sundry debtors Plant & machinery Cash at bank

Solution 2.12

Current Liabilities Current Assets Non-current Assets

Bank overdraft A/C receivable Premises A/C payable Petty cash GST Collected Inventory

Solution 2.14

Current Assets Current Liabilities Expenses

Petty cash Bank overdraft Rates & taxes Inventory GST collected Advertising GST Paid Interest on bank overdraft Electricity Telephone

Solution 2.16

Current Assets Non-current Assets Current Liabilities

Cash at bank Warehouse buildings A/C payable Petty cash Factory machinery GST collected Shares in CIQ Ltd Non-current Liabilities Owners’ Equity Income

Loan from mother Drawings Fees received Mortgage on Warehouse buildings Capital Commission received Rent received Dividends received Expenses

Repairs & maintenance Wages & salaries paid Interest paid Photocopying Accounting fees

Solution 2.18

(Other solutions are possible.) Assets Current assets 10 Cash at bank 20 Inventory

Chapter 2: Account Identification, Transaction Analysis and the Accounting Equation

3

30 Accounts receivable 30.1 A Dove Non-current liabilities

30.2 R Sparrow 300 Mortgage on premises 30.3 D Magpie Owners’ Equity

400 Capital Non-current assets 100 Premises Income 110 Plant & machinery 500 Sales 120 Computer equipment 510 Interest received 130 Goodwill Expenses Liabilities 600 Cost of goods sold Current liabilities 610 Stationery 200 Accounts Payable 620 Telephone 200.1 A Blue 630 Electricity 200.2 T Ongue 640 Bank charges 200.3 L Izard 650 Rent 220 GST collected 660 Salaries & wages

Solution 2.20

(a) Current assets (b) Current liabilities

(c) Non-current assets (d) Current assets

(e) Revenue/income (f) Non-current liabilities (probably)

Solution 2.22

Assets = Liabilities + Owners’ Equity

1 *Cash $15 000 *Capital $25 000

*Office furniture $10 000 =

$25 000

2 *Cash $4 000

Office furniture $10 000

*GST paid $1 000

*Inventory $10 000 = Capital $25 000

$25 000

3 Cash $4 000

*Office furniture $4 000

GST paid $1 000

Inventory $10 000

*A/c receivable $6 600 = *GST collected $600 Capital $25 000

$25 600 $600 $25 000

Solution 2.24

(a) A business may receive cash for a number of reasons (for example the sale of a non current asset). This is no income for the business. Not all receipts are income.

(b) An expense is a cost to the business of conducting their operations. Again, not all cash paid out relates to expenses of the business. Some may be the acquisition of a non current asset.

Solution 2.26

(a) No – a delivery truck is a non current assets and the purchase of this does not affect profit. (b) Not if the burglar alarm is considered as part of th cost of the delivery truck (this is covered later). (c) Yes – registration and insurance of the truck are expenses of operating the truck on business activities. (d) Yes – the sign writing is not permanent and could be considered an expense (such as advertising).

Solution 2.28

Assets = Liabilities + Owners’ Equity + Revenue – Expenses

2.7.20X5 Bank $5 000 = Capital $5

000


4

15.7.20X5 *Bank 600

*GST paid 400

*Inventory 4 000 = Capital 5 000

$5 000 + $5

000

Solution 2.30


4.5.20X9 Inventory $15 000 = Capital

$15 000

11.5.20X9 *Inventory 22 000

*GST paid 700 = *Accounts Payable 7 700 + Capital 15 000

$22 700 = $7 700 +

$15 000

15.5.20X9 *Bank 3 410 = Accounts Payable 7 700 + Capital 15 000 + *Sales 3 100 – *COGS 2 100

*Inventory 19 900 *GST collected 310

GST paid 700

$24 010 = $8 010 +

$15 000 + $3 100 – $2 100

Solution 2.32


4.1.20X3 *Motor Vehicle

$23 000 = *Capital

$23 000

11.1.20X3 Motor Vehicle 23 000 =

*Accounts Payable 1 430 Capital 23 000

*GST paid 130

*Mowing equipment 1 300

$24 430 = $1 430 +

$23 000

15.1.20X3 Motor Vehicle 23 000 =

Accounts Payable 1 430 + Capital 23 000 + *Fees 900 –

GST paid 130 *GST collected 90

Mowing equipment 1 300

*Bank 990

$25 420 = $1 520 +

$23 000 + $900 –

21.1.20X3 Motor Vehicles 23 000 =

Accounts Payable 1 430 + Capital 23 000 + Fees 900 –

GST paid 135 GST collected 90

*Petrol expenses 50

Mowing equipment 1 300 =

*Bank 935

$25 370 = $1 520 +

$23 000 + $900 – $50

Solution 2.34

(a) debit; (b) credit; (c) credit; (d) debit; (e) debit;


5

(f) credit; (g) credit; (h) debit; (i) credit; and (j) debit.

Solution 2.36

Complete the table below (the first one has been completed as an example) using the perpetual inventory system:

Transaction Accounts Affected Type of Account

Effect of Transaction Double entry required

Purchased goods on credit

Inventory Asset Increased Debit inventory

GST collected Liability Decreased Debit GST collected

Accounts payable Liability Increased Credit accounts payable

Paid cash for advertising

Advertising Expense Increased Debit advertising

GST paid Asset Increased Debit GST paid

Bank Asset Decreased Credit bank

Sold goods for cash

Bank Asset Increased Debit bank

Sales Revenue Increased Credit sales

GST collected Liability Increased Credit GST collected

Cost of goods sold Expense Increased Debit COGS

Inventory Asset Decreased Credit inventory

Paid accounts payable

Accounts payable Liability Decreased Debit accounts payable


Received interest income


Interest received Revenue Increased Credit interest received

Received payment from customer who previously bought goods on credit


Accounts receivable Asset Decreased Credit accounts receivable

Paid telephone account

Telephone Expense Increased Debit telephone



Received rent from tenant


Rent received Revenue Increased Credit rent received

GST collected Liability Increased Credit GST collected

Received invoice from supplier

Inventory Asset Increased Debit inventory


Accounts payable Liability Increased Credit accounts payable

Paid supplier for earlier credit purchase

Accounts payable Liability Decreased Debit accounts payable


Solution 2.38

Transaction Accounts affected Type of account Effect of

transaction Double entry required

Owner contributed cash and motor vehicles on commencement of business

Bank Asset Increase Debit Bank

Motor vehicle Asset Increase Debit Motor vehicle

Capital Owner’s equity Increase Credit Capital

Purchased inventory on credit from ABC Supplies

Inventory Asset Increase Debit Inventory

GST paid Asset Increase Debit GST paid

A/C payable – ABC Sup Liability Increase Credit A/C payable – ABC Sup

Paid rent on commercial premises to J H Lookout

Rent Expense Increase Debit Rent


Bank Asset Decrease Credit Bank

Paid wages to staff

Wages Expense Increase Debit Wages


Sold goods for cash to C Ustomer


6


Sales Income Increase Credit Sales

GST collected Liability Increase Credit GST collected

Cost of goods sold Expense Increase Debit COGS

Inventory Asset Decrease Credit Inventory

Returned goods to ABC supplies because they were faulty

A/C payable – ABC Sup Liability Decrease Debit A/C payable – SBC Sup


GST paid Asset Decrease Credit GST paid

Received interest from the bank


Interest Received Income Increase Credit Interest received

Sold goods on credit to N One

A/C Receivable – N One Asset Increase Debit A/C Rec. – N One

Sales Income Increase Credit Sales

GST collected Liability Increase Credit GST collected

Cost of goods sold Expense Increase Debit COGS


Paid electricity to Energy Suppliers

Electricity Expense Increase Debit Electricity



Received payment from N One ( a customer)


A/C Receivable – N One Asset Decrease Credit A/C Receivable – N One

Purchase a new motor vehicle for sales deliveries on credit from P Dutton Motors

Motor vehicle Asset Increase Debit Motor vehicle


A/C Payable – P Dutton Liability Increase Credit A/C payable – P Dutton

Solution 2.40

J Jones Balance Sheet as at 30 June 20X5

Assets Liabilities

Inventory 15 000

Cash at bank 10 000

25 000 Owners’ equity

Capital 25 000

______ 25 000

$25 000 $25 000

Solution 2.42

H Smith Balance Sheet as at 30 June 20X0

$ $ $ $

Assets Liabilities

Inventory 8 300 Bank overdraft 1 300

A/cs receivable 16 400 1 300

Petty cash 700 Owners’ equity

25 400 Capital 24 100

24 100

$25 400 $25 400

Solution 2.44

D Leamey Balance Sheet as at 30 September 20X7

$ $ $ $

Assets Liabilities

Current Current

Inventory 36 690 Sundry creditors 16 130

Sundry debtors 11 630 Bank overdraft 18 890


7

Petty cash 600 GST collected 2 100

48 920 37 120

Non-current

Non-current Mortgage 40 000

Buildings 243 600 40 000

Motor vehicles 34 600

278 200 Owners’ equity

Capital 250 000

________ 250 000

$327 120 $327 120

Solution 2.46

J Archer Balance Sheet as at 31 August 20X6

$ $ $

Current Assets

Accounts receivable 66 870

Cash at bank 15 550

82 420

Non-current Assets

Factory buildings 145 000

Computer equipment 11 220

Shares in QP Ltd 14 380

170 600

Total Assets 253 020

Current Liabilities

Accounts payable 23 140

GST collected 1 050

24 190

Non-current Liabilities

Mortgage 45 000

45 000

Total Liabilities __69 190

Net Assets $183 830

Owners’ Equity

Capital 183 830

$183 830

Solution 2.48

H Lawson Balance Sheet as at 31 March 20X5

$ $ $

Current Assets

Inventory 16 490

Accounts receivable 24 330

GST paid 320

Cash at bank 7 100

48 240

Non-current Assets

Land & buildings 247 630

Furniture & fittings 11 210

Motor vehicles 28 200

Investment in Kleen Water Company 40 000

327 040

Total Assets 375 280

Current Liabilities

GST collected 2 350


8

Mortgage (1 years payments) 10 000

Accounts payable 12 930

25 280

Non-current Liabilities

Mortgage (4 years payments) 40 000

40 000

Total Liabilities __65 280

Net Assets $310 000

Owners’ Equity

Capital 310 000

$310 000

Solution 2.50

Emmy Winter Income Statement for the year ended 30 June 20X3

$ $ $

Revenue

Fees income 285 000

Interest received 1 200

Total income 286 200

Less Expenses

Advertising 15 000

Wages 92 550

Rent 21 610

Electricity 960

Telephones 1 155

Total Expenses 131 275

Net profit 154 925

17

CHAPTER 3

SERVICE INDUSTRY ACCOUNTING – GENERAL JOURNAL, GENERAL LEDGER, TRIAL BALANCE AND INTRODUCTION TO FINANCIAL REPORTS Solution 3.2 (a) General Journal of S Ard GJ1

Date Particulars Folio Debit Credit

20X3 $ $ Sep 1 Bank 125 30 000

Capital – S Ard 455 30 000

Cash introduced as capital

2 Office supplies 767 2 500 GST paid 135 250 Accounts payable – W Onder 305.1 2 750 Office supplies bought on credit. Refer tax invoice no: 7767

3 Bank 125 24 200 Fees income 520 22 000 GST collected 315 2 200 Fees received for cash. Refer receipt no: 0001

(b)

General Ledger of S Ard Bank 125

20X3

Sep 1 Capital GJ1 30 000 3 Fees income GJ1 24 200

54 200

GST paid 135

20X3

Sep 2 Accounts payable – W Onder GJ1 250

Accounts Payable – W Onder 305.1

20X3 Sep 2 Office supplies GJ1 2 750

Capital – S Ard 455

20X3 Sep 1 Bank GJ1 30 000

Fees Income 520

20X3

Sep 3 Bank GJ1 22 000


18

Office Supplies 767

20X3

Sep 2 Accounts payable – W Onder GJ1 2 500

GST collected 315

20X3 Sep 3 Bank GJ1 2 200

(c)

General Ledger of S Ard Bank Folio no: 125

Date Particulars Folio Debit Credit Balance

20X3

Sep 1 Capital GJ1 30 000 30 000 Dr

3 Fees income GJ1 24 200 54 200 Dr

GST paid Folio no: 135


20X3

Sep 2 Accounts payable – W Onder GJ1 250 250 Dr

Accounts Payable – W Onder Folio no: 305.1


20X3

Sep 2 Office supplies GJ1 2 750 2 750 Cr

Capital – S Ard Folio no: 455


20X3

Sep 1 Bank GJ1 30 000 30 000 Cr

Fees Income Folio no: 520


20X3

Sep 3 Bank GJ1 22 000 22 000 Cr

Office Supplies Folio no: 767


20X3

Sep 2 Accounts payable – W Onder GJ1 2 500 2 500 Dr

Chapter 3: Service Industry Accounting

19

GST collected Folio no: 315


20X3

Sep 3 Bank GJ1 2 200 2 200 Cr

Solution 3.4

Trial Balance Debit Credit

$ $ $ Land and buildings 10 000 10 000 Investment in National Ltd 3 000 3 000 J Kelso (accounts receivable) 5 000 5 000 Wages 700 700 Fees income 8 000 8 000 Shop fittings 3 900 3 900 Motor vehicle 4 000 4 000 R Cohen (accounts payable) 3 000 3 000 GST paid 600 600 GST collected 4 150 4 150 Telephone 400 400 Repairs and maintenance 500 500 Capital ? 10 480 Loan from A Friend 3 000 3 000 Rent income 460 460 Electricity 320 320 Advertising 670 670

29 090 29 090

Solution 3.6

Enter the following items in the appropriate column of the Trial Balance:

Account Debit Credit

$ $ $ Capital 450 000 450 000 Drawings 65 000 65 000 Fees income 245 500 245 500 Interest income 4 000 4 000 Rent income 18 000 18 000 Petty cash 1 000 1 000 Bank (overdraft) 12 000 12 000 W Morgan (account receivable) 36 400 36 400 Shares in public company 122 000 122 000 GST paid 6 000 6 000 Motor vehicles 44 600 44 600 Office furniture & equipment 17 000 17 000 Land & buildings (the difference) ? 264 500 F Jones (account payable) 5 000 5 000 Mortgage on land & buildings 60 000 60 000 Computer equipment 130 000 130 000 Salaries and wages 91 200 91 200 Photocopying & fax charges 7 100 7 100 Telephone 4 800 4 800 GST collected 18 200 18 200 Building maintenance 23 100 23 100

Total 812 700 812 700


20

Solution 3.8

(a) General Journal of O Zone GJ1


20X6 $ $ Aug 1 Bank 125 16 000

Motor Vehicle 225 25 400 Computers 235 12 000 Capital – O Zone 455 53 400 Assets introduced at commencement

2 Bank 125 6 600 GST collected 315 600 Service revenue 507 6 000 Received cash for services given. Refer cash receipt

no: 0001

7 Office supplies 767 9 500 GST paid 135 950 Accounts payable – J Pot 305.1 10 450 Office supplies bought on credit. Refer tax invoice no: 6914

12 Accounts receivable – H Ortico 115.1 4 400 GST collected 315 400 Service revenue 507 4 000 Sent invoice for services given. Refer tax invoice no: 0001

18 Office supplies 767 2 500 GST paid 135 250 Bank 125 2 750 Office supplies bought for cash. Refer cheque no: 801

22 Accounts payable – J Pot 305.1 770 Office supplies 767 700 GST paid 135 70 Office supplies returned. Refer credit note: 717

24 Bank 125 4 400 Accounts receivable – H Ortico 115.1 4 400 Received payment of account. Refer receipt no: 1002

(b) General Ledger of O Zone

Accounts Receivable – H Ortico 115.1

20X6 20X6 Aug 12 Service revenue GJ1 4 400 Aug 24 Bank GJ1 4 400

4 400 4 400

Bank 125

20X6 20X6 Aug 1 Capital GJ1 16 000 Aug 18 Office supplies GJ1 2 750

2 Service revenue GJ1 6 600 31 Balance c/d 24 250 24 Accounts receivable – H Ortico GJ1 4 400

27 000 27 000

Sep 1 Balance b/d 24 250

GST paid 135

20X6 20X6 Aug 7 Accounts payable – J Pot GJ1 950 Aug 22 Accounts payable – J Pot GJ1 70

18 Bank GJ1 250 31 Balance c/d 1 130

1 200 1 200


Motor Vehicle 225

20X6 Aug 1 Capital GJ1 25 400

Computers 235

20X6 Aug 1 Capital GJ1 12 000


21

Accounts Payable – J Pot 305.1

20X6 20X6 Aug 22 Office supplies GJ1 770 Aug 7 Office supplies GJ1 10 450

31 Balance c/d 9 680

10 450 10 450


GST collected 315

20X6 Aug 2 Bank GJ1 600

12 Accounts receivable – H Ortico GJ1 400

1 000

Capital – O Zone 455

20X6 Aug 1 Assets GJ1 53 400

Service Revenue 507

20X6 Aug 2 Bank GJ1 6 000 12 Accounts receivable – H Ortico GJ1 4 000

10 000

Office Supplies 767

20X6 20X6 Aug 7 Accounts payable – J Pot GJ1 9 500 Aug 22 Accounts payable – J Pot GJ1 700

18 Bank GJ1 2 500 31 Balance c/d 11 300

12 000 12 000

Sep 1 Balance b/d 11 300 (c)

General Ledger of O Zone

Accounts Receivable – H Ortico Folio no: 115.1


20X6

Aug 12 Service revenue GJ1 4 400 4 400 Dr

24 Bank GJ1 4 400 Nil

Bank Folio no: 125


20X6

Aug 1 Capital GJ1 16 000 16 000 Dr

2 Service revenue GJ1 6 600 22 600 Dr

18 Office supplies GJ1 2 750 19 850 Dr

24 Accounts receivable – H Ortico GJ1 4 400 24 250 Dr



20X6

Aug 7 Accounts payable – J Pot GJ1 950 950 Dr

18 Bank GJ1 250 1 200 Dr

22 Accounts payable – J Pot GJ1 70 1 130 Dr

Motor Vehicle Folio no: 225


20X6



22

Computers Folio no: 235


20X6


Accounts Payable – J Pot Folio no: 305.1


20X6 Aug 7 Office supplies GJ1 10 450 10 450 Cr

22 Office supplies GJ1 770 9 680 Cr



20X6

Aug 2 Bank GJ1 600 600 Cr

12 Accounts receivable – H Ortico GJ1 400 1 000 Cr

Capital – O Zone Folio no: 455


20X6

Aug 1 Assets GJ1 53 400 53 400 Cr

Service Revenue Folio no: 507


20X6

Aug 2 Bank GJ1 6 000 6 000 Cr

12 Accounts receivable – H Ortico GJ1 4 000 10 000 Cr

Office Supplies Folio no: 767


20X6

Aug 7 Accounts payable – J Pot GJ1 9 500 9 500 Dr

18 Bank GJ1 2 500 12 000 Dr

22 Accounts payable – J Pot GJ1 700 11 300 Dr

(d) Trial Balance of O Zone

as at 31 August 20X6 Particulars Debit Credit

$ $ Bank 24 250 GST paid 1 130 Motor vehicle 25 400 Computers 12 000 Accounts payable – J Pot 9 680 GST collected 1 000 Capital – O Zone 53 400 Service revenue 10 000 Office supplies 11 300

$74 080 $74 080


23

Solution 3.10

(a) General Journal of G Barclay GJ1


20X4 $ $ Jul 1 Bank 125 6 000

Motor vehicle 225 18 700 Capital – G Barclay 455 24 700 Capital introduced at commencement

3 Accounts receivable – M Cole 115.1 330 GST collected 315 30 Service revenue 507 300 Sent invoice for services given. Refer tax invoice no: 0001

5 Plumber’s supplies 630 150 GST paid 135 15 Bank 125 165 Plumber’s supplies purchased for cash. Refer cheque no: 411

7 Bank 125 770 GST collected 315 70 Service revenue 507 700 Received cash for services given. Refer cash receipts no: 101

12 Advertising 710 270 GST paid 135 27 Accounts payable – Lantern Publishing 305.1 297 Invoice received for advertising – invoice no: 872

15 Bank 125 495 Rent income 510 450 GST collected 315 45 Rent income received. Refer cash receipt no: 102

18 Plant 215 2 140 GST paid 135 214 Accounts payable – CCD Hardware 305.2 2 354 Purchased plant on credit. Refer CCD Hardware tax invoice no: 7198

23 Accounts payable – Lantern Publishing 305.1 77 GST paid 135 7 Advertising 710 70 Credit note no: 104 received for advertising overcharge

28 Accounts payable – CCD Hardware 305.2 88 GST paid 135 8 Plant 215 80 Received credit note no: 386 for overcharge

(b)

Accounts Receivable – M Cole 115.1

20x4 Jul 3 Service Revenue GJ1 330

Bank 125

20X4 20X4 Jul 1 Capital GJ1 6 000 Jul 5 Plumber’s supplies GJ1 165

7 Service revenue GJ1 770 31 Balance c/d 7 100 15 Rent income GJ1 495

7 265 7 265

Aug 1 Balance b/d 7 100

GST paid 135

20X4 20X4 Jul 5 Bank GJ1 15 July 23 Accounts payable – Lantern

Publishing GJ1 7

12 Accounts payable – Lantern Publishing

GJ1 27 28 Accounts payable – CCD Hardware GJ1 8

18 Accounts payable – CCD Hardware GJ1 214 31 Balance c/d 241

256 256

Aug 1 Balance b/d 241


24

Plant 215

20X4 20X4 Jul 18 Accounts payable – CCD Hardware GJ1 2 140 Jul 28 Accounts payable – CCD Hardware GJ1 80


2 140 2 140


Motor Vehicle 225

20X4 Jul 1 Capital GJ1 18 700

Accounts Payable – Lantern Publishing 305.1

20X4 20X4 Jul 23 Advertising GJ1 77 Jul 12 Advertising GJ1 297

31 Balance c/d 220

297 297


Accounts Payable – CCD Hardware 305.2

20X4 20X4 Jul 28 Plant GJ1 88 Jul 18 Plant GJ1 2 354

31 Balance C/d 2 266

2 354 2 354


GST collected 315

20X4 July 3 Accounts receivable – M Cole GJ1 30 7 Bank GJ1 70 15 Bank GJ1 45

145

Capital – G Barclay 455

20X4 Jul 1 Assets GJ1 24 700

Service Revenue 507

20X4 Jul 3 Accounts receivable – M Cole GJ1 300 7 Bank GJ1 700

1 000

Rent Income 510

20X4 July 15 Bank GJ1 450

Plumber’s Supplies 630

20X4 Jul 5 Bank GJ1 150

Advertising 710

20X4 20X4 Jul 12 Accounts payable – Lantern

Publishing GJ1 270 Jul 23 Accounts payable – Lantern

Publishing GJ1 70 31 Balance c/d 200

270 270



25

(c) Trial Balance of G Barclay as at 31 July 20X4 Particulars Debit Credit

$ $ Accounts receivable – M Cole 330 Bank 7 100 GST paid 241 Plant 2 060 Motor vehicle 18 700 Accounts payable – Lantern Publishing 220 Accounts payable – CCD Hardware 2 266 GST collected 145 Capital – G Barclay 24 700 Service revenue 1 000 Rent income 450 Plumber’s supplies 150 Advertising 200

28 781 28 781

Solution 3.12

(a) General Journal of H Ma


20X4 $ $ April 1 Motor vehicle 225 30 000

Bank 125 10 000 Capital 455 40 000 Assets introduced at commencement

3 Accounts receivable – T Poulos 115.1 616 Courier fees income 520 560 GST collected 315 56 Invoice no: 421 sent to T Poulos

4 Motor vehicle expenses 775 240 GST paid 135 24 Accounts payable – D Brooks 305.1 264 Invoice 889 received from D Brooks

11 Courier fees income 520 200 GST collected 315 20 Accounts receivable – T Poulos 115.1 220 Credit note no: 188 sent to T Poulos

15 Accounts payable – D Brooks 305.1 66 Motor vehicle expenses 775 60

GST paid 135 6 Received credit note no: 34 from D Brooks

16 Bank 125 396 Accounts receivable – T Poulos 115.1 396 Refer receipt no: 201 for account paid in full

17 Advertising 710 390 GST paid 135 39 Accounts payable – Daily Planet 305.2 429 Invoice no: 6819 received for advertising

Accounts receivable – P Allan 115.2 1 540 Courier fees income 520 1 400 GST collected 315 140 Invoice no: 422 sent to P Allan

20 Accounts payable – Daily Planet 305.2 77 Advertising 710 70 GST paid 135 7 Credit note no: 1318 received for overcharge

21 Motor vehicle expenses 775 300 GST paid 135 30 Bank 125 330 Paid cheque no: 2964 for motor vehicle expenses

23 Accounts receivable – P Allan 115.2 3 960 Courier fees income 520 3 600 GST collected 315 360 Invoice no: 423 sent to P Allan

27 Electricity 750 330


26

GST paid 135 33 Accounts payable – Freetown Power Supply 305.3 363 Invoice no: 13174 received for electricity

(b) General Ledger of H Ma

Accounts Receivable – T Poulos Folio no: 115.1

20X4 20X4 April 3 Courier fees income GJ1 616 April 11 Courier fees income GJ1 220

16 Bank GJ1 396

616 616

Accounts Receivable – P Allan Folio no: 115.2

20X4 April 17 Courier fees income GJ1 1 540

23 Courier fees income GJ1 3 960

5 500

Bank Folio no: 125

20X4 20X4 April 1 Capital GJ1 10 000 April 21 Motor vehicle expenses GJ1 330

16 Accounts receivable – T Poulos GJ1 396 30 Balance c/d 10 066

10 396 10 396

May 1 Balance b/d 10 066


20X4 20X4 April 4 Accounts payable – D Brooks GJ1 24 April 15 Accounts payable – D Brooks GJ1 6

17 Accounts payable – Daily Planet GJ1 39 20 Accounts payable – Daily Planet GJ1 7 21 Bank GJ1 30 30 Balance c/d 113 27 Accounts payable – Freetown

Power Supply GJ1 33

126 126

May 1 Balance b/d 113 May 1 Balance b/d

Motor Vehicle Folio no: 225

20X4 April 1 Capital GJ1 30 000

Accounts Payable – D Brooks Folio no: 305.1

20X4 20X4 April 15 Motor vehicle expenses GJ1 66 April 4 Motor vehicle expenses GJ1 264

30 Balance c/d 198

264 264

May 1 Balance b/d 198

Accounts Payable – Daily Planet Folio no: 305.2

20X4 20X4 April 20 Advertising GJ1 77 April 17 Advertising GJ1 429

30 Balance c/d 352

429 429


Accounts Payable – Freetown Power Supply Folio no: 305.3

20X4 April 27 Electricity GJ1 363


20X4 20X4 April 11 Accounts receivable – T Poulos GJ1 20 April 3 Accounts receivable – T Poulos GJ1 56

30 Balance c/d 536 17 Accounts receivable – P Allan GJ1 140 23 Accounts receivable – P Allan GJ1 360

556 556



27

Capital Folio no: 455

20X4 April 1 Assets GJ1 40 000

Courier fees income Folio no: 520

20X4 20X4 April 11 Accounts receivable – T Poulos GJ1 200 April 3 Accounts receivable – T Poulos GJ1 560

30 Balance c/d 5 360 17 Accounts receivable – P Allan GJ1 1 400 23 Accounts receivable – P Allan GJ1 3 600

5 560 5 560


Advertising Folio no: 710

20X4 20X4 April 17 Accounts payable – Daily Planet GJ1 390 April 20 Accounts payable – Daily Planet GJ1 70

30 Balance c/d 320

390 390


Electricity Folio no: 750

20X4 April 27 Accounts payable – Freetown

Power Supply GJ1 330

Motor Vehicle Expenses Folio no: 775

20X4 20X4 April 4 Accounts payable – D Brooks GJ1 240 April 15 Accounts payable – D Brooks GJ1 60

21 Bank GJ1 300 30 Balance c/d 480

540 540

May 1 Balance b/d 480 (c)

H Ma Trial Balance as at 30 April 20X4

Folio Debit Credit

Accounts receivable – P Allan 115.2 5 500

Bank 125 10 066 GST paid 135 113 Motor vehicle 225 30 000

Accounts payable – D Brooks 305.1 198 Accounts payable – Daily Planet 305.2 352 Accounts payable – Freetown Power Supply 305.3 363 GST collected 315 536 Capital 455 40 000 Courier fees income 520 5 360 Advertising 710 320 Electricity 750 330 Motor vehicle expenses 775 480

46 809 46 809


28

Solution 3.13

(a)

General Journal of A Gale GJ1


20X6 $ $ June 1 Bank 125 10 000

Motor vehicle 225 45 000 Plant & equipment 220 90 000 Loan from Finance Co 410 30 000 Capital 455 115 000 Assets & liabilities introduced

Accounts receivable – F Conway 115.1 198 c 507 180 GST collected 315 18 Recording sale on tax invoice no: 001

2 Rent 745 2 000 GST paid 135 200 Accounts payable – R Stubbs 305.1 2 200 Rent of property. Refer tax invoice no: 386

4 Service income 507 30 GST collecetd account 315 3 Accounts receivable – F Conway 115.1 33 Overcharge invoice no: 001. See credit note no: 001

6 Bank 125 132 Service income 507 120 GST collected 315 12 Cash sale. Refer receipt no: 101

7 Repairs & maintenance 765 320 GST paid 135 32 Bank 125 352 Cash paid for repairs. Refer cheque no: 601

9 General expenses 772 440 GST paid 135 44 Accounts payable – C Richards 305.2 484 Purchase of laundry material. See tax invoice no: 762

12 Office furniture 230 900 Capital 455 900 Additional capital introduced. See voucher no: 1

14 Accounts payable – C Richards 305.2 88 General expenses 772 80 GST paid 135 8 Adjusting overcharge. Refer credit note no: 122

18 Advertising 710 520 GST paid 135 52 Accounts payable – PBL Radio 305.3 572 Advertising account. See tax invoice no: 909

21 Accounts payable – R Stubbs 305.1 2 200 Bank 125 2 200 Payment of account. See cheque no: 602

24 Accounts receivable – Apex Hotels 115.2 3 410 Service income 507 3 100

GST collected 315 310 Recording sale on tax invoice no: 002

27 Plant & equipment 220 1 640 GST paid 135 164 Accounts payable – E Dawes 305.4 1 804 Purchased washing machine. See tax invoice no: 1649

(b)

General Ledger of A Gale

Accounts Receivable – F Conway Folio no: 115.1

20X6 20X6 June 1 Service income GJ1 198 June 4 Service income GJ1 33

30 Balance c/d 165

198 198

July 1 Balance b/d 165


29

Accounts Receivable – Apex Hotels Folio no: 115.2

20X6 June 24 Service income GJ1 3 410

Bank Folio no: 125

20X6 20X6 June 1 Capital GJ1 10 000 June 7 Repairs & maintenance GJ1 352

6 Service income GJ1 132 21 Accounts payable – R Stubbs GJ1 2 200 30 Balance c/d 7 580

10 132 10 132

July 1 Balance b/d 7 580


20X6 20X6 June 2 Accounts payable – R Stubbs GJ1 200 June 14 Accounts payable – C Richards GJ1 8

7 Bank GJ1 32 30 Balance c/d 484 9 Accounts payable – C Richards GJ1 44

18 Accounts payable – PBL Radio GJ1 52 27 Accounts payable – E Dawes GJ1 164

492 492


Plant and Equipment Folio no: 220

20X6 June 1 Capital GJ1 90 000

27 Accounts payable – E Dawes GJ1 1 640

91 640

Motor Vehicles Folio no: 225


Office Furniture Folio no: 230

20X6 June 1 Capital GJ1 900

Accounts Payable – R Stubbs Folio no: 305.1

20X6 20X6 June 21 Bank GJ1 2 200 June 20 Rent paid GJ1 2 200

Accounts Payable – C Richards Folio no: 305.2

20X6 20X6 June 14 General expenses GJ1 88 June 9 General expenses GJ1 484

30 Balance c/d 396

484 484


Accounts Payable – PBL Radio Folio no: 305.3

20X6 June 18 Advertising GJ1 572

Accounts Payable – E Dawes Folio no: 305.4

20X6 June 27 Plant & equipment GJ1 1 804


20X6 20X6 June 4 Accounts receivable – F Conway GJ1 3 June 1 Accounts receivable – F Conway GJ1 18

30 Balance c/d 337 6 Bank GJ1 12 24 Accounts receivable – Apex GJ1 310


30

Hotels

340 340


Loan from Finance Co Folio no: 410



20X6 June 1 Assets & liabilities GJ1 115 000 12 Office furniture GJ1 900

115 900

Service income Folio no: 507

20X6 20X6 June 4 Accounts receivable – F Conway GJ1 30 June 1 Accounts receivable – F Conway GJ1 180

30 Balance c/d 3 370 6 Bank GJ1 120 21 Accounts receivable – Apex

Hotels GJ1 3 100

3 400 3 400


Advertising Folio no: 710

20X6 June 18 Accounts payable – PBL Radio GJ1 520

Rent Paid Folio no: 745

20X6 June 2 Accounts payable – E Stubbs GJ1 2 000

Repairs & Maintenance Folio no: 765

20X6 June 7 Bank GJ1 320

General Expenses Folio no: 772

20X6 20X6 June 9 Accounts payable – C Richards GJ1 440 June 14 Accounts payable – C Richards GJ1 80

30 Balance c/d 360

440 440

July 1 Balance b/d 360 (c)

A Gale Trial balance as at 30 June 20X6

Folio Debit Credit

Accounts receivable – F Conway 115.1 165 Accounts receivable – Apex Hotels 115.2 3 410 Bank 125 7 580 GST paid 135 484 Plant & equipment 220 91 640 Motor vehicles 225 45 000 Office furniture 230 900 Accounts payable – C Richards 305.2 396 Accounts payable – PBL Radio 305.3 572 Accounts payable – E Dawes 305.4 1 804 GST collected 315 337 Loan from Finance Co 410 30 000 Capital 455 115 900 Service income 507 3 370 Advertising 710 520 Rent paid 745 2 000 Repairs & maintenance 765 320 General expenses 772 360

152 379 152 379


31

Solution 3.14

Debit Credit

$ $ Cash at bank 2 600 Inventory 14 000 Accounts payable – J Smith 2 100* Motor vehicle 28 000 Loan from Candid Finance Co 10 000 GST paid 500 Capital 33 000

45 100 45 100

* Account with error

Solution 3.15

Trial Balance of T Nguyen as at 7 September 20X7 Debit Credit

$ $ Plant 60 000 Bank 44 000 Accounts payable – L Paper 5 000 Capital – T Nguyen 60 000 Fees income 44 000 Office supplies 5 000

109 000 109 000

Solution 3.16

Sara Bos Trial Balance as at 7 February 20X4 Debit Credit

$ $ Bank 18 000 Accounts receivable – P Raise 6 500 Accounts payable – C Cumber 13 000 Capital Sara Bos 18 000 Fees income 6 500* Office supplies 13 000

37 500 37 500

* Account containing error

Solution 3.17

Debit Credit

$ $ Bank overdraft 5 450* Capital 80 515* Fees income 120 300* Premises 125 500* Office equipment 13 390 Interest expense 5 995* Plumber’s supplies 7 820 Mortgage on premises 37 750 Donations 390 Delivery expenses 950 Electricity 450 Salaries & wages 20 800 Rent income 12 000* Shares in PMA Ltd 88 000 GST collected 9 680 Petty cash 100 Accounts receivable (A Brown) 3 500* Accounts payable (D Jones) 1 200

266 895 266 895

* Accounts with errors


32

Solution 3.18

(a) W Mason

Income Statement for year ended 30 June 20X7

Revenue Fees income 29 000 Expenses Advertising 1 800 Electricity 590 Wages 8 200 10 590

Net Profit 18 410

(b) W Mason

Balance sheet as at 30 June 20X7

Assets Liabilities Accounts receivable – L Thompson 900 Accounts payable – W Knox 1 800 Bank 19 000 GST collected 4 200 GST paid 1 400 Loan from Shark Arm Ltd 14 000

Motor vehicle 27 000 20 000

48 300 Owners’ Equity Capital 9 890 Net profit 18 410 28 300

48 300 48 300

(c) W Mason

Balance Sheet as at 30 June 20X7

Assets $ $ Accounts receivable – L Thompson 900 Bank 19 000 GST paid 1 400 Motor vehicle 27 000

Total Assets 48 300 Less Liabilities

Accounts payable – W Knox 1 800 GST collected 4 200 Loan from Shark Arm Ltd 14 000

Total Liabilities 20 000

Net assets 28 300

Owners’ Equity Capital 9 890 Net profit 18 410

28 300

Solution 3.19

(a) Souvla & Sons Surveyors


Revenue Fees income 197 000 Interest income 2 000 199 000

Expenses Insurance 1 100 Salaries & wages 38 000 Telephone 1 700 Postage 660 Motor vehicle expenses 25 800 67 260

Net Profit 131 740


33

(b) Souvla & Sons Surveyors


Assets Liabilities Accounts receivable – G Stains 1 760 Accounts payable – D Note 940 Bank 8 600 GST collected 5 820

Petty cash 500 6 760 GST paid 2 800 Owners’ Equity Motor vehicles 88 000 Capital 7 160 Plant & equipment 24 000 Net profit 131 740

Cash on fixed deposit 20 000 138 900 145 660

145 660 145 660

(c) Souvla & Sons Surveyors


Assets $ $ Accounts receivable – G Stains 1 760 Bank 8 600 Petty cash 500 GST paid 2 800 Motor vehicles 88 000 Plant & equipment 24 000 Cash on fixed deposit 20 000


Accounts payable – D Mote 940 GST collected 5 820 Total liabilities 6 760

Net Assets 138 900

Owners’ Equity Capital 7 160 Net Profit 131 740 138 900

Solution 3.20

(a) I Cleanem


Revenue $ $ Sales 89 000 Commission income 1 300 90 300

Expenses Advertising 3 800 Salaries & wages 58 000 Light & power 16 200 Telephone 3 100 Repairs & maintenance 3 900 General expenses 4 100 Motor vehicle expenses 2 700 Interest expense 3 600 95 400

Net Loss (5 100)

(b) I Cleanem

Balance sheet as at 30 June 20X7

Assets $ $ Accounts receivable – Gosport Hotel 1 620 Premises 120 000 Plant & equipment 40 000 Motor vehicle 26 000


Accounts payable – Gilbert Chemicals 4 000 GST collected 5 600


34

Loan from Snide Finance Company 30 000


Net Assets 148 020

Owners’ Equity Capital 153 120 Net Loss (5 100) 148 020

43

CHAPTER 4

RETAIL INDUSTRY ACCOUNTING USING PERPETUAL & PERIODIC INVENTORY – GENERAL JOURNAL, GENERAL LEDGER, TRIAL BALANCE AND INTRODUCTION TO FINANCIAL REPORTS Solution 4.2

(a) Inventory Folio no: 110

Capital GJ1 20 000


Inventory GJ1 20 000

(b) Inventory Folio no: 110

Bank GJ1 3 000


Bank GJ1 300

Bank Folio no: 125

Inventory GJ1 3 300

(c) Inventory Folio no: 110

Accounts payable – K Cole GJ1 5 000


Accounts payable – K Cole GJ1 500

Accounts Payable – K Cole Folio no: 305.1

Inventory GJ1 5 500


44

(d) includes (c) above

Inventory Folio no: 110

Accounts payable – K Cole GJ1 5 000 Accounts payable – K Cole GJ1 1 800 Balance c/d 3 200

5 000 5 000

Balance b/d 3 200


Accounts payable – K Cole GJ1 500 Accounts payable – K Cole GJ1 180 Balance c/d 320

500 500

Balance b/d 320

Accounts Payable – K Cole Folio no: 305.1

Inventory GJ1 1 980 Inventory GJ1 5 500 Balance c/d 3 520

5 500 5 500

Balance b/d 3 520

Solution 4.4

(a) Inventory Folio no: 110

Accounts payable – J Kallis GJ1 4 000 Cost of goods sold GJ1 320 Cost of goods sold GJ1 50 Cost of goods sold GJ1 350 Drawings GJ1 210 Balance c/d 3 170

4 050 4 050

Balance b/d 3 170 (b)

Cost of Good Sold Folio no: 600

Inventory GJ1 320 Inventory GJ1 50 Inventory GJ1 350 Balance c/d 620

670 670

Balance b/d 620

Solution 4.6

General Journal

Particulars Debit Credit

20X7 $ $ Jun 30

(a) Cost of goods sold 880 Inventory 880 Adjusting inventory account to physical stocktake

(b) Inventory 220 Cost of goods sold 220 Adjusting inventory account to physical stocktake

Chapter 4: Retail Industry Accounting using Perpetual Inventory

45

Solution 4.8

(a) General Journal of R Stuart GJ1


20X7 $ $ May 1 Bank 125 22 000

Capital 455 22 000 Cash introduced as capital at commencement

3 Inventory 110 1 000 GST paid 135 100 Accounts payable – R Wood 305.1 1 100 Goods purchased on credit

6 Bank 125 880 GST collected 315 80 Sales 505 800 Goods sold for cash

Cost of goods sold 600 480 Inventory 110 480 Recording cost of goods sold

9 Inventory 110 1 430 GST paid 135 143 Bank 125 1 573 Goods purchased for cash

13 Accounts receivable – F Han 115.1 935 GST collected 315 85 Sales 505 850 Goods sold on credit


17 Sales 505 80 GST collected 315 8 Bank 125 88 Return of goods from a cash sale

Inventory 110 48 Cost of goods sold 600 48

Recording cost of goods returned

24 Sales 505 120 GST collected 315 12 Accounts receivable – F Han 115.1 132 Return of goods sold on credit

Inventory 110 72 Cost of goods sold 600 72 Recording cost of goods returned

(b) General Ledger of R Stuart


20X7 20X7 May 3 Accounts payable – R Wood GJ1 1 000 May 6 Cost of goods sold GJ1 480

9 Bank GJ1 1 430 13 Cost of goods sold GJ1 510 17 Cost of goods sold GJ1 48 31 Balance c/d 1 560 24 Cost of goods sold GJ1 72

2 550 2 550

June 1 Balance b/d 1 560

Accounts Receivable – F Han Folio no: 115.1

20X7 20X7

May 13 Sales GJ1 935 May 24 Sales GJ1 132 31 Balance c/d 803

935 935

June 1 Balance b/d 803


46

Bank Folio no: 125

20X7 20X7

May 1 Capital GJ1 22 000 May 9 Inventory GJ1 1 573 6 Sales GJ1 880 17 Sales GJ1 88


22 880 22 880



20X7 May 3 Accounts payable – R Wood GJ1 100

9 Bank GJ1 143

243

Accounts Payable – R Wood Folio no: 305.1

20X7 May 3 Inventory GJ1 1 100


20X7 20X7

May 17 Bank GJ1 8 May 6 Bank GJ1 80 24 Accounts receivable – F Han GJ1 12 13 Accounts receivable – F Han GJ1 85 31 Balance c/d 145

165 165



20X7 May 1 Bank GJ1 22 000

Sales Folio no: 505

20X7 20X7 May 17 Bank GJ1 80 May 6 Bank GJ1 800

24 Accounts receivable – F Han GJ1 120 13 Accounts receivable – F Han GJ1 850 31 Balance c/d 1 450

1 650 1 650


Cost of Goods Sold Folio no: 600

20X7 20X7

May 6 Inventory GJ1 480 May 17 Inventory GJ1 48 13 Inventory GJ1 510 24 Inventory GJ1 72

31 Balance c/d 870

990 990

June 1 Balance b/d 870 (c)

Trial balance of R Stuart as at 31 May 20X7

Debit Credit

Inventory 1 560 Accounts receivable – F Han 803 Bank 21 219 GST paid 243 Accounts payable – R Wood 1 100 GST collected 145 Capital 22 000 Sales 1 450 Cost of goods sold 870

24 695 24 695


47

Solution 4.10

(a) General Journal of P Brock GJ1


20X5 $ $ May 1 Inventory 110 17 000

Bank 125 5 000 Accounts receivable – J Kirby 115.1 1 200 Office equipment 230 3 400 Capital 455 26 600 Assets introduced at commencement

2 Bank 125 700 Accounts receivable – J Kirby 115.1 700 Received on account

4 Accounts receivable – R Preston 115.2 539 GST collected 315 49 Sales 505 490 Goods sold on credit


8 Rent expense 745 1 200 GST paid 135 120 Bank 125 1 320 Drew cheque for rent

11 Inventory 110 1 770 GST paid 135 177 Accounts payable – G Poulos 305.1 1 947 Goods bought on credit

13 Sales 505 110 GST collected 315 11 Accounts receivable – J Kirby 115.1 121 Return of goods sold on credit


16 Drawings 460 187 GST paid 135 17 Inventory 110 170 Goods withdrawn for personal use

19 Accounts payable – G Poulos 305.1 110 GST paid 135 10 Inventory 110 100 Credit note received for overcharge

22 Drawings 460 600 Bank 125 600 Payment for daughter’s school fees

27 Wages 740 375 Bank 125 375 Drew cheque for casual wages

(b)

General Ledger of P Brock Inventory Folio no: 110

20X5 20X5 May 1 Capital GJ1 17 000 May 4 Cost of goods sold GJ1 294

11 Accounts payable – G Poulos GJ1 1 770 16 Drawings GJ1 170 13 Cost of goods sold GJ1 66 19 Accounts payable – G Poulos GJ1 100


18 836 18 836

Jun 1 Balance b/d 18 272


48

Accounts Receivable – J Kirby Folio no: 115.1

20X5 20X5

May 1 Capital GJ1 1 200 May 2 Bank GJ1 700 13 Sales GJ1 121 31 Balance c/d 379

1 200 1 200

Jun 1 Balance b/d 379

Accounts Receivable – R Preston Folio no: 115.2

20X5 May 4 Sales GJ1 539

Bank Folio no: 125

20X5 20X5

May 1 Capital GJ1 5 000 May 8 Rent expense GJ1 1 320 2 Accounts receivable – J Kirby GJ1 700 22 Drawings GJ1 600

27 Wages GJ1 375 31 Balance c/d 3 405

5 700 5 700

Jun 1 Balance b/d 3 405


20X5 20X5 May 8 Bank GJ1 120 May 16 Drawings GJ1 17

11 Accounts payable – G Poulos GJ1 177 19 Accounts payable – G Poulos GJ1 10 31 Balance c/d 270

297 297


Office Equipment Folio no: 230

20X5 May 1 Capital GJ1 3 400

Accounts Payable – G Poulos Folio no: 305.1

20X5 20X5 May 19 Inventory GJ1 110 May 11 Inventory GJ1 1 947


1 947 1 947



20X5 20X5

May 13 Accounts receivable – J Kirby GJ1 11 May 4 Accounts receivable – R Preston GJ1 49 31 Balance c/d 38

49 49



20X5 May 1 Assets GJ1 26 600

Drawings Folio no: 460

20X5 May 16 Inventory GJ1 187

22 Bank GJ1 600

787

Sales Folio no: 505

20X5 20X5 May 13 Accounts receivable – J Kirby GJ1 110 May 4 Accounts receivable – R Preston GJ1 490

31 Balance c/d 380

490 490


49



20X5 20X5 May 4 Inventory GJ1 294 May13 Inventory GJ1 66

31 Balance c/d 228

294 294


Wages Folio no: 740

20X5

May 27 Bank GJ1 375

Rent Expense Folio no: 745

20X5 May 8 Bank GJ1 1 200

(c)

Trial balance of P Brock as at 31 May 20X5

Debit Credit

Inventory 18 272 Accounts receivable – J Kirby 379 Accounts receivable – R Preston 539 Bank 3 405 GST paid 270 Office equipment 3 400 Accounts payable – G Poulos 1 837 GST collected 38 Capital 26 600 Drawings 787 Sales 380 Cost of goods sold 228 Wages 375 Rent expense 1 200

28 855 28 855


50

Solution 4.12

(a) General Journal of T Harrison GJ1


20X7 $ $ May 1 Inventory 110 37 000

Accounts receivable – B Brown 115.1 1 245 Land & buildings 205 278 000 Motor vehicles 225 43 000 Accounts payable – F Ferris 305.1 3 890 Bank 125 5 900 GST collected 315 3 675 Capital 455 345 780 Assets & liabilities at commencement

2 Bank 125 1 245 Accounts receivable – B Brown 115.1 1 245 Cash received for amount owing

3 Accounts receivable – B Brown 115.1 3 190 GST collected 315 290 Sales 505 2 900 Goods sold on credit

Cost of goods sold 600 1 595 Inventory 110 1 595 Recording of cost of goods sold

6 Bank 125 3 300 GST collected 315 300 Rent income 510 3 000 Received rent owing

8 Bank 125 22 000 GST collected 315 2 000 Motor vehicle 225 20 000 Motor vehicle sold at book value for cash

10 Motor vehicle 225 33 000 GST paid 135 3 300 Accounts payable – Apex Motors 305.2 36 300 Bought motor vehicle on credit

14 Stationery 762 500 GST paid 135 50 Bank 125 550 Paid cash for stationery

16 Sales 505 220 GST collected 315 22 Accounts receivable – B Brown 115.1 242 Return of goods sold on credit


19 Inventory 110 6 000 GST paid 135 600 Accounts payable – C Castle 305.3 6 600 Goods bought on credit

21 Bank 125 8 580 GST collected 315 780 Sales 505 7 800 Goods sold for cash

Cost of goods sold 600 4 290 Inventory 110 4 290 Recording cost of goods sold

25 Accounts payable – C Castle 305.3 407 GST paid 135 37

Inventory 110 370 Received credit note for overcharge

31 GST collected 315 3 675 Bank 125 3 675 Outstanding amount paid


51

(b) General Ledger of T Harrison


20X7 20X7 May 1 Capital GJ1 37 000 May 3 Cost of goods sold GJ1 1 595

16 Cost of goods sold GJ1 121 21 Cost of goods sold GJ1 4 290 19 Accounts payable – C Castle GJ1 6 000 25 Accounts payable – C Castle GJ1 370


43 121 43 121


Accounts Receivable – B Brown Folio no: 115.1

20X7 20X7 May 1 Capital GJ1 1 245 May 2 Bank GJ1 1 245

3 Sales GJ1 3 190 16 Sales GJ1 242 31 Balance c/d 2 948

4 435 4 435


Bank Folio no: 125

20X7 20X7 May 2 Accounts receivable – B Brown GJ1 1 245 May 1 Capital GJ1 5 900

6 Rent income GJ1 3 300 14 Stationery GJ1 550 8 Motor vehicle GJ1 22 000 31 GST collected GJ1 3 675

21 Sales GJ1 8 580 Balance c/d 25 000

35 125 35 125



20X7 20X7 May 10 Accounts payable – Apex Motors GJ1 3 300 May 25 Accounts payable – C Castle GJ1 37

14 Bank GJ1 50 31 Balance c/d 3 913 19 Accounts payable – C Castle GJ1 600

3 950 3 950


Land & Buildings Folio no: 205


Motor Vehicles Folio no: 225

20X7 20X7 May 1 Capital GJ1 43 000 May 8 Bank GJ1 20 000

10 Accounts payable – Alex Motors GJ1 33 000 31 Balance c/d 56 000

76 000 76 000


Accounts Payable – F Ferris Folio no: 305.1

20X7

May 1 Capital GJ1 3 890

Accounts Payable – Apex Motors Folio no: 305.2

20X7 May 10 Motor vehicle GJ1 36 300

Accounts Payable – C Castle Folio no: 305.3

20X7 20X7

May 25 Inventory GJ1 407 May 19 Inventory GJ1 6 600 31 Balance c/d 6 193

6 600 6 600



52


20X7 20X7

May 16 Accounts receivable – B Brown GJ1 22 May 1 Capital GJ1 3 675 31 Bank GJ1 3 675 3 Accounts receivable – B Brown GJ1 290 31 Balance c/d 3 348 6 Bank GJ1 300

8 Bank GJ1 2 000 21 Bank GJ1 780

7 045 7 045



20X7

May 1 Assets & liabilities GJ1 345 780

Sales Folio no: 505

20X7 20X7 May 16 Accounts receivable – B Brown GJ1 220 May 3 Accounts receivable – B Brown GJ1 2 900

31 Balance c/d 10 480 21 Bank GJ1 7 800

10 700 10 700


Rent Income Folio no: 510

20X7 May 6 Bank GJ1 3 000


20X7 20X7 May 3 Inventory GJ1 1 595 May 16 Inventory GJ1 121

21 Inventory GJ1 4 290 31 Balance c/d 5 764

5 885 5 885


Stationery Folio no: 762

20X7 May 14 Bank GJ1 500

(c)

Trial balance of T Harrison as at 31 May 20X7

Debit Credit

Inventory 36 866 Accounts receivable – B Brown 2 948 Bank 25 000 GST paid 3 913 Land & buildings 278 000 Motor vehicles 56 000 Accounts payable – F Ferris 3 890 Accounts payable – Apex Motors 36 300 Accounts payable – C Castle 6 193 GST collected 3 348 Capital 345 780 Sales 10 480 Rent income 3 000 Cost of goods sold 5 764 Stationery 500

408 991 408 991


53

Solution 4.14

(a) General Journal of S Khan GJ1


20X4 $ $ April 1 Bank 125 30 000

Capital 455 30 000 Cash introduced as capital at commencement

5 Purchases 600 1 800 GST paid 135 180 Accounts payable – J James 305.1 1 980 Goods purchased on credit

8 Bank 125 880 GST collected 315 80 Sales 505 800 Goods sold for cash

10 Purchases 600 780 GST paid 135 78 Bank 125 858 Goods purchased for cash

14 Accounts receivable – N Kelly 115.1 583 GST collected 315 53 Sales 505 530 Goods sold on credit

19 Drawings 460 187 GST paid 135 17 Purchases 600 170 Goods withdrawn for personal use

26 Sales 505 100 GST collected 315 10 Accounts receivable – N Kelly 115.1 110 Return of goods sold on credit

(b)

General Ledger of S Khan Accounts Receivable – N Kelly Folio no: 115.1

20X4 20X4 April 14 Sales GJ1 583 April 26 Sales GJ1 110

30 Balance c/d 473

583 583


Bank Folio no: 125

20X4 20X4

April 1 Capital GJ1 30 000 April 10 Purchases GJ1 858 8 Sales GJ1 880 30 Balance c/d 30 022

30 880 30 880



20X4 20X4 April 5 Accounts payable – J James GJ1 180 April 19 Drawings GJ1 17

10 Bank GJ1 78 30 Balance c/d 241

258 258


Accounts Payable – J James Folio no: 305.1

20X4 April 5 Purchases GJ1 1 980


20X4 20X4

April 26 Accounts receivable – N Kelly GJ1 10 April 8 Bank GJ1 80 30 Balance c/d 123 14 Accounts receivable – N Kelly GJ1 53

133 133


54



20X4 April 1 Bank GJ1 30 000


20X4

April 17 Purchases GJ1 187

Sales Folio no: 505

20X4 20X4 April 26 Accounts receivable – N Kelly GJ1 100 April 8 Bank GJ1 800

30 Balance c/d 1 230 14 Accounts receivable – N Kelly GJ1 530

1 330 1 330


Purchases Folio no: 600

20X4 20X4 April 5 Accounts payable – J James GJ1 1 800 April 19 Drawings GJ1 170

10 Bank GJ1 780 30 Balance c/d 2 410

2 580 2 580

May 1 Balance b/d 2 410 (c)

Trial balance of S Khan as at 30 April 20X4

Debit Credit

Accounts receivable – N Kelly 473 Bank 30 022 GST paid 241 Accounts payable – J James 1 980 GST collected 123 Capital 30 000 Drawings 187 Sales 1 230 Purchases 2 410

33 333 33 333

Solution 4.16

(a) Perrin and Sons

Income Statement for period ending 30 June 20X7

$ $ Sales 123 500 Less Cost of goods sold 38 900

Gross profit 84 600 Add Other income Interest income 1 100

1 100

85 700 Less Expenses Freight outwards 2 250 Advertising 3 690 Salaries & wages 21 480 Postage & telephone 2 800 Motor vehicle expenses 10 560

40 780

Net profit 44 920


55

(b) Perrin and Sons

Balance Sheet as at 30 June 20X7 Assets Inventory 3 500 Bank 2 900 Accounts receivable – S Hume 640 Petty cash 200 GST paid 620 Motor vehicle 42 000 Computer equipment 11 400


Accounts payable – M Brown 880 GST collected 3 440


Net Assets 56 940

Owners’ Equity Capital 12 020 Net profit 44 920

56 940

65

CHAPTER 5

SPECIAL TRANSACTIONS Solution 5.2

General Journal of B Murphy

Date Particulars Debit Credit

20X5 Jan 1 Inventory 18 800

Accounts receivable – P O’Brien 11 000 Land 50 000 Buildings 140 000 Accounts payable – S O’Rourke 8 500 Bank 4 600 Loan – Advance Finance Co 14 000 14% Mortgage on buildings 38 000 Capital – B Murphy 154 700 Assets and liabilities on commencement of business

Solution 5.4 General Journal of G Williams


20X4 Sep 1 Inventory 2 200

Bank 12 800 Capital 15 000 Assets and liabilities on commencement of business

Sep 15 Office furniture 10 780 Computers 2 860 Capital 13 640 Additional capital introduced

Solution 5.6 General Journal of E Ball


20X1 Oct 1 Bank 80 000

Loan Tiger Finance Co 40 000 Capital 40 000 Capital introduced at commencement

15 Inventory 6 000 Furniture and fittings 14 000 Motor vehicle 20 000 Office equipment 5 000 Goodwill 5 000 Vendor – G Jack 50 000 Purchase of business as a going concern

Vendor – G Jack 50 000 Bank 50 000 Discharge of purchase consideration

Solution 5.8 General Journal of G Monty


20X6 April 1 Drawings 1 200

Bank 1 200 Drew cheque for refrigerator for private use

15 Drawings 450


66

Bank 450 Drew cheque for repairs to private motor vehicle

Solution 5.10 General Journal of R Clarke


20X8 Oct 20 Motor vehicle 40 000

GST paid 4 000 Bank 2 200 Accounts payable – Mann Motors P/L 41 800 Purchase of motor vehicle on credit after payment of cash deposit

31 Office furniture 1 100 GST paid 110 Bank 1 210 Cash purchase of office furniture

Solution 5.12 General Journal of I Doyle


20X6 Aug 3 Bank 792

GST collected 72 Office furniture 720 Office furniture sold for book value

15 Accounts receivable – P Jones 18 260 GST collected 1 660 Motor vehicle 16 600 Motor vehicle sold for book value

Solution 5.14 General Journal of P Jones


20X1 Nov 1 Drawings 275

Inventory 250 GST paid 25 Goods withdrawn for private use

8 Accounts receivable – H Miller 187 Office equipment 170 GST collected 17 Sold office equipment on credit

9 Plant 3 850 Capital 3 850 Plant introduced as additional capital

15 Motor vehicle 15 000 GST paid 1 500 Bank 2 500 Accounts payable – M V Retailers 14 000 Purchase of motor vehicle on credit after payment of cash deposit

Solution 5.16 General Journal of A Rowe


(a) Accounts Receivable – R Clarke 55 GST collected 5 Late fee income 50 Late fee due on overdue account

(b) Late fee expense 30 GST paid 3 Accounts payable – R Little 33 Expenses incurred due to account overlooked

Solution 5.18 General Journal of M Tee


(a) Late fee expense 60 GST paid 6

Chapter 5: Special Transactions

67

Accounts payable – Optical Ltd 66 Expenses incurred due to account overlooked

(b) Accounts Receivable – Local Mart 121 GST collected 11 Late fee income 110 Late fee due on overdue account

Solution 5.20 General Journal of H Hamp


20X3 May 5 Bank 1 700 Accounts receivable – A Munce 1 700

Part payment of account

7 Bank 1 034 Sales 940 GST collected 94 Cash sale

10 Accounts receivable – A Munce 1 700 Bank 1 700 Dishonour of cheque received May 5

12 Sales 940 GST collected 94 Bank 1 034 Dishonour of cheque received May 7

Bank charges 70 Bank 70 Bank charges incurred when cheque dishonoured

Accounts receivable – A Munce 70 Bank charges 70 Bank charges incurred due to cheque dishonoured

Solution 5.22

(a) General Journal of C Need


20X5 June 3 Bank 2 200

Accounts receivable – G Scimone 2 200 Cheque received for payment of account

7 Accounts receivable – G Scimone 2 200 Bank 2 200 Cheque received on June 3 dishonoured

Bank charges 45 Bank 45

Bank charges incurred for dishonoured cheque

7 Accounts receivable – G Scimone 45 Bank charges 45 Bank charges incurred when cheque dishonoured

(b)

Accounts Receivable – G Scimone

20X5 20X5 June 1 Balance b/d 2 200 June 3 Bank 2 200 7 Bank (cheque dishonoured) 2 200 30 Balance c/d 2 245

Bank charges 45

4 445 4 445


Solution 5.24

(a) General Journal of M Wilson


20X2 June 30 Bad debts 1 200

GST collected 120


68

Accounts receivable – R Thompson 1 320 Bad debt written off

(b)

Accounts Receivable – R Thompson

20X2 20X2 Jan 15 Balance b/d 1 320 June 30 Bad debts 1 200

GST collected 120

1 320 1 320

Solution 5.26

(a) General Journal of M Metzger


20X9 Feb 25 Bank 836

Accounts receivable – D Spriggs 836 Cash received for part payment of account (4 180 x $0.20)

Bad debts 3 040 GST collected 304 Accounts receivable – D Spriggs 3 344 Bad debt written off

(b)

Accounts Receivable – D Spriggs

20X8 20X9 Nov 1 Sales 4 180 Feb 25 Bank 836

Bad debts 3 344

4 180 4 180

Solution 5.28

(a) General Journal of J Brown


20X2 Jun 30 Bad debts 5 760

GST collected 576 Accounts receivable – J Cassidy 6 336 Bad debt written off

Nov 3 Accounts receivable – J Cassidy 1 584 GST collected 144 Bad debts recovered 1 440 Part bad debt previously written off now received

Bank 1 584 Accounts receivable – J Cassidy 1 584 Cash received for amount owing

(b)

Accounts Receivable – J Cassidy

20X2 20X2 April 3 Sales 6 336 June 30 Bad debts 6 336

Nov 3 Bad debts recovered 1 584 Nov 3 Bank 1 584

Solution 5.30 General Journal of A Mitchell


Accounts payable – B Kennedy 1 800 Accounts receivable – B Kennedy 1 800 Contra account

Accounts payable – B Kennedy 1 900 Bank 1 900 Payment of balance of account


69

Solution 5.32

(a) & (b) General Journal Leon Tevlet


20X3 July 1 Land & buildings 185 632

Plant & equipment 750 Inventory 17 256 Bank 4 368 Accounts receivable – W Vilson 3 900 Accounts receivable – V Linall 1 935 GST paid 2 100 Accounts payable – I Macano 2 736 Accounts payable – K Tinto 1 871 Capital 211 334 Assets and liabilities introduced at commencement

2 Inventory 350 GST paid 35 Accounts payable – M Jolski 385 Purchase of goods on credit

Accounts receivable – N Rand 880 Sales 800 GST collected 80 Goods sold on credit

Cost of goods sold 460 Inventory 460 Cost of goods sold to N Rand

3 Motor vehicles 21 360 GST paid 2 136

Bank 3 496 Accounts payable – Morgan Motors 20 000 Purchase of motor vehicle with a cash deposit

4 Bank 4 697 Sales 4 270 GST collected 427 Goods sold for cash

Cost of goods sold 2 380 Inventory 2 380 Cost of goods sold for cash

5 Accounts payable – M Jolski 22 Inventory 20 GST paid 2

Credit note received for overcharge

7 Drawings 330 Inventory 300 GST paid 30 Stock drawn for private use

9 Bank 1 935 Accounts receivable – V Linall 1 935 Cheque received for amount owing

14 Plant & equipment 1 350 GST paid 135 Accounts payable – B Sooth 1 485 Plant & equipment bought on credit

Accounts payable – B Sooth 550 Plant & equipment 500 GST collected 50 Trade-in allowed on purchase of new plant

21 Late fee expense 110 GST paid 11 Accounts payable – I Macano 121 Late fee charged on overdue account

27 Bank 847 Accounts receivable – N Rand 847 Cheque received for amount owing

31 Accounts receivable – N Rand 847


70


Bank 847 Recording N Rand’s cheque dishonoured

(c) General Ledger of Leon Tevlet

Inventory

20X3 20X3 July 1 Capital 17 256 July 2 Cost of goods sold 460

2 Accounts payable – M Jolski 350 4 Cost of goods sold 2 380 5 Accounts payable – M Jolski 20 7 Drawings 300 31 Balance c/d 14 446

17 606 17 606


Accounts Receivable – W Vilson

20X3 20X3 July 1 Capital 3 900 July 1

Accounts Receivable – V Linall

20X3 20X3 July 1 Capital 1 935 July 9 Bank 1 935

Accounts Receivable – N Rand

20X3 20X3 July 2 Sales 880 July 27 Bank 847

31 Bank 847 31 Balance c/d 880

1 727 1 727


Bank

20X3 20X3 July 1 Capital 4 368 July 3 Motor vehicle 3 496

4 Sales 4 697 31 Accounts receivable – N Rand 847 9 Accounts receivable – V Linall 1 935

27 Accounts receivable – N Rand 847 Balance c/d 7 504

11 847 11 847


GST paid

20X3 20X3 July 1 Capital 2 100 July 5 Accounts payable – M Jolski 2

2 Accounts payable – M Jolski 35 7 Drawings 30 3 Accounts payable – Morgan Motors 2 136

14 Accounts payable – B Sooth 135 21 Accounts payable – I Macano 11 31 Balance c/d 4 385

4 417 4 417


Land and Buildings

20X3 July 1 Capital 185 632

Plant and Equipment

20X3 20X3 July 1 Capital 750 July 14 Accounts payable – B Sooth 500

14 Accounts payable – B Sooth 1 350 31 Balance c/d 1 600

2 100 2 100


Motor Vehicle

20X3 July 3 Accounts payable – Morgan Motors 21 360

Accounts Payable – I Macano


71

20X3 July 1 Capital 2 736 21 Late fee expense 121

2 857

Accounts Payable – M Jolski

20X3 20X3 July 5 Inventory 22 July 2 Inventory 385

31 Balance c/d 363

385 385


Accounts Payable – Morgan Motors Ltd

20X3 July 3 Motor vehicle 20 000

Accounts Payable – B Sooth

20X3 20X3 July 14 Plant & equipment 550 July 14 Plant & equipment 1 485

31 Balance c/d 935

1 485 1 485


Accounts Payable – K Tinto

20X3 July 1 Capital 1 871

GST collected

20X3 July 2 Accounts receivable – N Rand 80 4 Bank 427 14 Accounts payable – B Sooth 50

557

Capital

20X3 July 1 Assets & Liabilities 211 334

Drawings

20X3 July 7 Inventory 330

Sales

20X3 July 2 Accounts receivable – N Rand 800 4 Bank 4 270

5 070

Cost of Goods Sold

20X3 July 2 Inventory 460

4 Inventory 2 380

2 840

Late Fee Expense

20X3 July 21 Accounts payable – I Macano 110 (d)

Leon Tevlet Trial Balance as at 31 July 20X3

$ $

Inventory 14 446


72

Accounts receivable – W Vilson 3 900

Accounts receivable – N Rand 880

Bank 7 504

GST paid 4 385

Land & buildings 185 632

Plant & equipment 1 600

Motor vehicle 21 360 Accounts payable – I Macano 2 857 Accounts payable – M Jolski 363 Accounts payable – Morgan Motors 20 000 Accounts payable – B Sooth 935 Accounts payable – K Tinto 1 871 GST collected 557 Capital 211 334 Drawings 330

Sales 5 070 Cost of goods sold 2 840

Interest expense 110

242 987 242 987

Solution 5.34

(b) General Journal of Jack Kure


20X8 Jan 2 Accounts receivable – B Moulas 2 904

Fees income 2 640 GST collected 264 Sent invoice for services given

4 Accounts payable – L Hart 1 765 Bank 1 765 Payment of account

Stationery 640 GST paid 64 Accounts payable – I Lucas 704 Stationery purchased on credit

6 Bad debts 2 620 GST collected 262 Accounts receivable – J Clarke 2 882 Bad debt written off

7 Fees income 140 GST collected 14 Accounts receivable – B Moulas 154 Sent credit note for overcharge

9 Donation 275 Bank 275 Donation to Boy Scouts Association

Accounts payable – I Lucas 704 Bank 704 Payment of balance owing

14 Accounts receivable – J Turner 506 Office furniture & equipment 460 GST collected 46 Sent invoice for furniture sold

15 Accounts receivable – R Stodart 264 Bad debts recovered 240 GST collected 24 Re-instating bad debt recovered

Bank 264 Accounts receivable – R Stodart 264 Part payment of amount previously written off

21 Bank 3 960 Accounts receivable – B Moulas 3 960 Cheque received for amount owing on 1.2.20X8

22 Stationery 160 GST paid 16 Accounts payable – Paper Products 176


73


Purchase of stationery on credit

24 Wages 1 300 Bank 1 300 Wages paid

26 Drawings 184 Bank 184 Paid private residence water rates

28 Rent 1 800 GST paid 180 Bank 1 980 Paid rent for premises

31 Accounts payable – Paper Products 33 Stationery 30

GST paid 3 Credit note received for overcharge

(c)

General Ledger of Jack Kure

Accounts Receivable – B Moulas

20X8 20X8 Jan 1 Balance b/d 3 960 Jan 7 Fees income 154

2 Fees income 2 904 21 Bank 3 960 31 Balance c/d 2 750

6 864 6 864

Feb 1 Balance b/d 2 750

Accounts Receivable – J Clarke

20X8 20X8 Jan 1 Balance b/d 2 882 Jan 6 Bad debts 2 882

Accounts Receivable – J Turner

20X8 Jan 14 Office furniture & equipment 506

Accounts Receivable – R Stodart

20X8 20X8 Jan 15 Bad debts recovered 264 Jan 15 Bank 264

Bank

20X8 20X8 Jan 15 Accounts receivable – R Stodart 264 Jan 1 Balance b/d 11 295

21 Accounts receivable – B Moulas 3 960 4 Accounts payable – L Hart 1 765 31 Balance c/d 13 279 9 Donations 275

Accounts receivable – I Lucas 704 24 Wages 1 300 26 Drawings 184 28 Rent 1 980

17 503 17 503


GST paid

20X8 20X8 Jan 1 Balance b/d 280 Jan 31 Accounts payable – Paper Products 3

4 Accounts payable – I Lucas 64 Balance c/d 537 22 Accounts payable – Paper Products 16 28 Bank 180

540 540

Feb 1 Balance b/d 537

Office Furniture and Equipment

20X8 20X8 Jan 1 Balance b/d 67 050 Jan 14 Accounts receivable – J Turner 460



74

67 050 67 050


Motor Vehicle

20X8 Jan 1 Balance b/d 18 400

Machinery


Accounts Payable – L Hart

20X8 20X8 Jan 1 Bank 1 765 Jan 1 Balance b/d 1 765

Accounts Payable – J Egan


Accounts Payable – I Lucas

20X8 20X8 Jan 9 Bank 704 Jan 4 Stationery 704

Accounts Payable – Paper Products Ltd

20X8 20X8 Jan 31 Stationery 33 Jan 22 Stationery 176

Balance c/d 143

176 176


GST collected

20X8 20X8 Jan 6 Accounts receivable – J Clarke 262 Jan 2 Accounts receivable – B Moulas 264

7 Accounts receivable – B Moulas 14 14 Accounts receivable – J Turner 46 31 Balance c/d 58 15 Accounts receivable – R Stodart 24

334 334


Capital


Drawings

20X8 Jan 26 Bank 184

Fees Income

20X8 20X8 Jan 7 Accounts receivable – B Moulas 140 Jan 2 Accounts receivable – B Moulas 2 640


2 640 2 640


Bad Debts Recovered

20X8 Jan 15 Accounts receivable – R Stodart 240

Wages

20X8 Jan 24 Bank 1 300

Rent

20X8 Jan 28 Bank 1 800


75

Stationery

20X8 20X8 Jan 4 Accounts payable – I Lucas 640 Jan 31 Accounts payable – Paper Products 30

22 Accounts payable – Paper Products 160 Balance c/d 770

800 800


Donations

20X8 Jan 9 Bank 275

Bad Debts

20X8 Jan 6 Accounts receivable – J Clarke 2 620

(d)

Trial Balance of Jack Kure as at 31 January 20X8

Debit Credit

$ $

Accounts receivable – B Moulas 2 750 Accounts receivable – J Turner 506 Bank 13 279 GST paid 537 Office furniture & equipment 66 590 Motor vehicles 18 400 Machinery 18 800 Accounts payable – J Egan 3 225 Accounts payable – Paper Products Ltd 143 GST collected 58 Capital 95 087 Drawings 184 Fees income 2 500 Bad debts recovered 240 Wages 1 300 Rent 1 800 Stationery 770 Donations 275 Bad debts 2 620

114 532 114 532

86

CHAPTER 6

ACCOUNTING TO TRIAL BALANCE – CASH AND CREDIT JOURNALS USING PERPETUAL INVENTORY Solution 6.2 (a) Purchases Journal of V Tatjana Folio no: PJ1

Date

Invoice/ Credit Note

Accounts Payable/ Particulars

Folio

Accounts Payable

Inventory GST Paid

Motor Vehicle

Expenses

Stationery

20X7 Dec 2

401

A Zakarov – Purchases

305.1

121

110

11

7 874 R Rhodes – Purchases 305.2 253 230 23 11 107 A Zakarov – Purchase returns 305.1 (55) (50) (5) 14 8701 F Holden – Motor vehicle

expenses 305.3 297 27 270

529 A Zakarov – Purchases 305.1 99 90 9 16 281 S Weller – Stationery 305.4 198 18 180

1096 F Holden – Motor vehicle expense overcharge 305.3 (44) (4) (40)

23 48 S Weller – Stationery returns 305.4 (33) (3) (30) 31 111 A Zakarov – Purchase returns 305.1 (11) (10) (1)

825 370 75 230 150 (110) (135) (775) (762)

(b) General Ledger of V Tatjana


20X7 Dec 31 Accounts payable PJ1 370

Chapter 6: Accounting to Trial Balance – Cash and Credit Journals using Perpetual Inventory

87

GST Paid Folio no: 135


Accounts Payable – A Zakarov Folio no: 305.1

20X7 20X7 Dec 11 Inventory – returns PJ1 55 Dec 2 Inventory PJ1 121 31 Inventory – returns PJ1 11 14 Inventory PJ1 99 Balance c/d 154

220 220

Jan 1 Balance b/d 154 Accounts Payable – R Rhodes Folio no: 305.2

20X7 Dec 7 Inventory PJ1 253

Accounts Payable – F Holden Folio no: 305.3

20X7 20X7 Dec 16 Motor vehicle expenses –

overcharge PJ1 44 Dec 1 Motor vehicle expenses PJ1 297

31 Balance c/d 253

297 297

Jan 1 Balance b/d 253 Accounts Payable – S Weller Folio no: 305.4

20X7 20X7 Dec 23 Stationery – returns PJ1 33 Dec 16 Stationery PJ1 198 31 Balance c/d 165

198 198

Jan 1 Balance b/d 165 Stationery Folio no: 762


Motor Vehicle Expenses Folio no: 775


(c)

V Tatjana Trial Balance as at 31 December 20X7

Dr Cr

Inventory 370 GST paid 75 Accounts payable – A Zakarov 154 Accounts payable – R Rhodes 253 Accounts payable – F Holden 253 Accounts payable – S Weller 165 Stationery 150 Motor vehicle expenses 230

825 825


88

Solution 6.4 (b) Cash Receipts Journal of J Jelke Folio no: CR1

Date

Rec

No

Cost of

Goods

Sold Drawer and/or

Particulars

Folio

Bank

Accounts Receivabl

e

Discount

Allowed

Sales

GST collecte

d Interest Income

Fees Rec’d

Rent Incom

e

20X1 Feb 2

521

K Cole – accounts receivable

115.1

4 312

4 400

(80)

(8)

4 522 1 300 Sales 2 800 280 523 Interest income 3 480 400

6 523 R Fay – accounts receivable

115.2 3 201 3 300 (90) (9)

7 524 J King – accounts receivable

115.3 2 299 2 420 (110) (11)

10 525 2 100 Sales 4 730 4 300 430 16 526 Technical advice 1 540 140 1 400 21 527 Rent income 800 800 27 528 Technical advice 836 76 760

3 400 21 198 10 120 (280) 7 100 898 400 2 160 800

(110) (125) (610) (505) (315) (515) (520) (510) (600)

(a) & (c) General Ledger of J Jelke


20X1 20X1 Feb 1 Balance b/d 5 000 Feb 28 Cost of goods sold CR1 3 400 Balance c/d 1 600

5 000 5 000

Mar 1 Balance b/d 1 600

Accounts Receivable – K Cole Folio no: 115.1

20X1 20X1 Feb 1 Balance b/d 4 400 Feb 2 Bank CR1 4 400

Accounts Receivable – R Fay Folio no: 115.2


Accounts Receivable – J King Folio no: 115.3


Bank Folio no: 125

20X1 Feb 1 Balance b/d 3 000

28 Cash Receipts CR1 21 198

24 198

Investment – Fixed Deposit Folio no: 260


GST Collected Folio no: 315

20X1 Feb 1 Balance b/d 920 28 Bank CR1 898

1 818




89

Sales Folio no: 505

20X1 Feb 28 Bank CR1 7 100


20X1 Feb 28 Bank CR1 800

Interest Income Folio no: 515


Fees Received Folio no: 520

20X1 Feb 28 Bank CR1 2 160


20X1 Feb 28 Inventory CR1 3 400

Discount Allowed Folio no: 610


(d)

J Jelke Trial Balance as at 28 February 20X1

Dr Cr

Inventory 1 600 Bank 24 198 Investment – fixed deposit 10 000 GST collected 1 818 Capital 27 200 Sales 7 100 Rent income 800 Interest income 400 Fees received 2 160 Cost of goods sold 3 400 Discount allowed 280

39 478 39 478

Solution 6.6

(a) General Journal of M Jolski Folio no: GJ1


20X3 $ $ April 1 Inventory 110 20 000

Capital 455 20 000 Inventory introduced at commencement

(b) Sales Journal of M Jolski Folio no: SJ1

Date

Invoice/ Cr Note

Cost of Goods Sold

Accounts Receivable/ Particulars

Folio

Accounts Receivable

Sales

GST Collected

Rent Income

20X3 April 2

301

1 700

L Duffy – Sales

115.1

4 180

3 800

380

6 27 (140) l duffy – sales returns 115.1 (330) (300) (30) 8 302 2 500 G Mawson – Sales 115.2 5 676 5 160 516

13 303 2 200 F Daly – Sales 115.3 5 236 4 760 476 20 28 Nil F Daly – Sales allowance 115.3 (242) (220) (22) 22 304 J Hawkes – Rent income 115.4 2 090 190 1 900

6 260 16 610 13 200 1 510 1 900

(110) (505) (315) (510)


90

(600)

Purchases Journal of M Jolski Folio no: PJ1

Date

Invoice/Cr

Note Accounts Payable/

Particulars

Folio

Accounts

Payable

Inventory GST Paid

Telephon

e

Office Furnitur

e

Advertisin

g

20X3 April 3

809

F Wegner – Inventory

305.1

3 190

2 900

290

5 1071 M Burns – Inventory 305.2 1 617 1 470 147

17 37985 Tuspo Telephone Co – Telephone

305.3 528 48 480

27 329 N Atkins – Office furniture 305.4 3 740 340 3 400

28 3412 Tuspo Telephone Co – Allowance

305.3 (77) (7) (70)

30 5687 Candle Newspaper Co – Advertising

305.5 264 24 240

9 262 4 370 842 410 3 400 240

(110) (135) (755) (230) (710)

Cash Receipts Journal of M Jolski Folio no: CR1

Date

Rec No

Cost of Goods Sold Drawer and/or Particulars

Folio

Bank

Accounts Receivable

Discount Allowed

Sales

GST Collected

20X3 April 7

201

Accounts receivable – L Duffy

115.1

3 696

3 850

(140)

(14)

12 202 350 P Hughes – Sales 836 760 76 14 203 Accounts receivable – G Mawson 115.2 5 533 5 676 (130) (13)

350 10 065 9 526 (270) 760 49

(110)

(600)

(125) (610) (505) (315)

Cash Payments Journal of M Jolski Folio no: CP1

Date

Chq No Payee and/or Particulars

Folio

Bank

Accounts Payable

Discount Received

Inventory

GST Paid

20X3 April 15

3451

F Wegner – Accounts payable

305.1

3 069

3 190

(110)

(11)

24 3452 M Burns – Accounts payable 305.2 1 540 1 617 (70) (7) 26 3453 J Barry – Inventory 1 397 1 270 127

6 006 4 807 (180) 1 270 109

(125) (525) (110) (135)

(c)

General Ledger of M Jolski


20X3 20X3 April 1 Capital GJ1 20 000 April 30 Cost of goods sold SJ1 6 260

30 Accounts payable PJ1 4 370 Cost of goods sold CR1 350 Bank CP1 1 270 Balance c/d 19 030

25 640 25 640


Accounts Receivable – L Duffy Folio no: 115.1

20X3 20X3 April 2 Sales SJ1 4 180 April 6 Sales(Returns) SJ1 330 7 Bank CR1 3 850

4 180 4 180

Accounts Receivable – G Mawson Folio no: 115.2


91

20X3 20X3 April 8 Sales SJ1 5 676 April 14 Bank CR1 5 676

Accounts Receivable – F Daly Folio no: 115.3

20X3 20X3 April 13 Sales SJ1 5 236 April 20 Sales (allowance) SJ1 242 30 Balance c/d 4 994

5 236 5 236


Accounts Receivable – J Hawkes Folio no: 115.4

20X3 April 22 Rent income SJ1 2 090

Bank Folio no: 125

20X3 20X3 April 30 Receipts CR1 10 065 April 30 Payments CP1 6 006 Balance c/d 4 059

10 065 10 065


GST Paid Folio no: 135

20X3 April 30 Accounts payable PJ1 842

Bank CP1 109

951

Office Furniture Folio no: 230

20X3 April 30 Accounts payable PJ1 3 400

Accounts Payable – F Wegner Folio no: 305.1

20X3 20X3 April 15 Bank CP1 3 190 April 3 Purchases PJ1 3 190


92

Accounts Payable – M Burns Folio no: 305.2

20X3 20X3 April 24 Bank CP1 1 617 April 5 Purchases PJ1 1 617

Accounts Payable – Tuspo Telephone Co Folio no: 305.3

20X3 20X3 April 28 Telephone – allowance PJ1 77 April 17 Telephone PJ1 528

30 Balance c/d 451

528 528


Accounts Payable – N Atkins Folio no: 305.4

20X3 April 27 Office furniture PJ1 3 740

Accounts Payable – Candle Newspaper Co Folio no: 305.5

20X3 April 30 Advertising PJ1 264

GST Collected Folio no: 315

20X3 April 30 Accounts receivable SJ1 1 510

Bank CR1 49

1,559


20X3 April 1 Inventory GJ1 20 000

Sales Folio no: 505

20X3 April 30 Accounts receivable SJ1 13 200 Bank CR1 760

13 960


20X3 April 30 Accounts receivable SJ1 1 900

Discount Received Folio no: 525

20X3 April 30 Bank CP1 180


20X3 April 30 Inventory SJ1 6 260 Inventory CR1 350

6 610


20X3 April 30 Bank CR1 270

Advertising

Folio no: 710


Telephone Folio no: 755



93

(d) M Jolski

Trial Balance as at 30 April 20X3

Dr Cr

Inventory 19 030 Accounts receivable – F Daly 4 994 Accounts payable – J Hawkes 2 090 Bank 4 059 GST Paid 951 Office furniture 3 400 Accounts payable – Tuspo Telephone Co 451 Accounts payable – N Atkins 3 740 Accounts payable – Candle Newspaper Co 264 GST Collected 1,559 Capital 20 000 Sales 13 960 Rent income 1 900 Discount received 180 Cost of goods sold 6 610 Discount allowed 270 Advertising 240 Telephone 410

42,054 42,054

Solution 6.8 (a) General Journal of T Harrison Folio no: GJ1


20X4 $ $ May 1 Bank 125 5 060

Inventory 110 16 500 Plant & equipment 220 8 290 Accounts receivable – B Roberts 115.1 890 Accounts receivable – B Butler 115.2 283 GST collected 315 175 Accounts payable – D Dobbie 305.1 339 Accounts payable – F Ferris 305.2 383 Capital – T Harrison 455 30 126

Assets and liabilities at this date

(b) Purchases Journal of T Harrison Folio no: PJ1

Date

Invoice/ Cr Note

Accounts Payable/ Particulars

Folio

Accounts Payable

Inventory

Plant & Equip

Rates GST paid

20X4 May 5

F Ferris – Inventory

305.2

352

320

32

J Jackman – Inventory 305.5 407 370 37 14 F Ferris – Allowance 305.2 (55) (50) (5) 21 P Penton Ltd – Plant & Equip 305.3 99 90 9 26 Great Lakes Council – Rates 305.4 890 890

1 693 640 90 890 73

(110) (220) (760) (135)

Sales Journal of T Harrison Folio no: SJ1

Date

Invoice/ Credit Note

Cost of Goods Sold

Accounts Receivable/ Particulars

Folio

Accounts Receivable

Sales

GST Collected

20X4 May 3

100

B Butler – Sales

115.2

209

190

19

90 C Castle – Sales 115.3 187 170 17 19 (12) B Butler – Returns 115.2 (33) (30) (3)

178 363 330 33

(110)

(600)

(505) (315)


94

Cash Payments Journal of T Harrison Folio no: CP1

Date

Chq No

Payee and/or Particulars

Folio

Bank

Accounts Payable

Discount Received Inventory

Wages

Drawings GST Paid

20X4 May 2

Purchases

209

190

19

8 Wages 259 259 12 D Dobbie – creditor 305.1 317 339 (20) (2) 14 Drawings 23 23

808 339 (20) 190 259 23 17

(525) (110) (740) (460) (135)

Cash Receipts Journal of T Harrison Folio no: CR1

Date

Receipt No

Cost of Goods Sold

Drawer and/or Particulars

Folio

Bank

Accounts Receivable

Discount Allowed

Cash Sales

GST Collected

20X4 May 2

190

Sales

341

310

31

19 120 Sales 220 200 20 20 B Roberts 115.1 857 890 (30) (3) 22 C Castle 115.3 176 187 (10) (1)

310 1 594 1 077 (40) 510 47

(110)

(660)

(610) (505) (315)

(c) General Ledger of T Harrison


20X4 20X4 May 1 Capital GJ1 16 500 May 31 Cost of goods sold SJ1 178

31 Accounts payable PJ1 640 Cost of goods sold CR1 310 Bank CP1 190 Balance c/d 16 842

17 330 17 330


Accounts Receivable – B Roberts Folio no: 115.1

20X4 20X4 May 1 Capital GJ1 890 May 20 Bank CR1 890

Accounts Receivable – B Butler Folio no: 115.2

20X4 20X4 May 1 Capital GJ1 283 May 19 Sales – Returns SJ1 33

31 Sales SJ1 209 31 Balance c/d 459

492 492


Accounts Receivable – C Castle Folio no: 115.3

20X4 20X4 May 3 Sales SJ1 187 May 22 Bank CR1 187

Bank Folio no: 125

20X4 20X3 May 1 Capital GJ1 5 060 May 31 Payments CP1 808

31 Receipts CR1 1 594 Balance c/d 5 846

6 654 6 654


GST Paid

Folio no: 135

20X4 May 31 Accounts payable PJ1 73

Bank CP1 17

90


95

Plant & Equipment Folio no: 220


21 Accounts Payable PJ1 90

8 380 Accounts Payable – D Dobbie Folio no: 305.1

20X4 20X4 May 12 Bank 339 May 1 Capital GJ1 339

Accounts Payable – F Ferris Folio no: 305.2

20X4 20X4 May 14 Purchases – returns PJ1 55 May 1 Capital GJ1 383 31 Balance c/d 680 5 Inventory PJ1 352

735 735


Accounts Payable – P Penton Ltd Folio no: 305.3

20X4 May 21 Plant & Equipment PJ1 99

Accounts Payable – Great Lakes Council

Folio no: 305.4

20X4 May 26 Rates PJ1 890

Accounts Payable – J Jackman

Folio no: 305.5

20X4 May 5 Inventory PJ1 407

GST Collected

Folio no: 315

20X4 May 1 Capital GJ1 175

31 Accounts receivable SJ1 33 Bank CR1 47

255

Capital – T Harrison Folio no: 455

20X4 May 1 Assets & Liabilities GJ1 30 126


20X4 May 14 Bank CP1 23

Sales Folio no: 505

20X4 May 31 Accounts receivable SJ1 330 Bank CR1 510

840

Discount Received Folio no: 525



20X4 May 31 Inventory SJ1 178

Inventory CR1 310

488


20X4 May 31 Bank CR1 40

Wages Folio no: 740


96


Rates Folio no: 760

20X4 May 31 Accounts payable PJ1 890

(d)

T Harrison Trial Balance as at 31

May 20X4

Dr Cr

Inventory 16 842 Accounts receivable – B Butler 459 Bank 5 846 GST paid 90 Plant & equipment 8 380 Accounts payable – F Ferris 680 Accounts payable – P Penton Ltd 99 Accounts payable – Great Lakes Council 890 Accounts payable – J Jackman 407 GST collected 255 Capital 30 126 Drawings 23 Sales 840 Discount received 20 Cost of goods sold 488 Discount allowed 40 Wages 259 Rates 890

33 317 33 317

6.10 (a)

General Journal of A Dederson GJ1


20X3 $ $ Sep 1 Plant & machinery 215 54 000 Motor vehicles 225 56 000 Inventory 110 38 400 Accounts receivable – H Esbawn 115.1 12 800 Accounts receivable – P KIlby 115.2 6 400 Accounts receivable – W Etton 115.3 1 692 GST paid 135 600 Bank overdraft 310 10

600 Accounts payable – W Fagnall 305.1 1 366 Accounts payable – G Karvey 305.2 2 406 Accounts payable – L Hynn 305.3 2 818 GST Collected 315 4 000 Loan 410 20 00

0 Capital 455 128

702 Assets and liabilities introduced at commencement of business

5 Bad debts 787 4 660 GST collected 315 466 Accounts receivable – P Kilby 115.2 5 126 Bad debts written off

8 Late fee expense 797 120 GST paid 135 12 Accounts payable – G Karvey 305.2 132 Late fee charged on overdue account

(b)

Sales Journal of A Dederson SJ1

Date

Cost of Goods Sold Details Folio

Accounts Receivabl

e Sales Motor

Vehicle

GST Collecte

d


97

20X3 $ $ $ $ Sep 3 1 420 W Etton 115.3 2 860 2

600 260

7 (80) W Etton – returns 115.3 (176) (160) (16) 9 O Lakes 115.4 30 800 28

000 2 800

1 340 33 484 2 440

28 000

3 044

(600) (110)

(505) (225) (315)

Purchases Journal of A Dederson PJ1

Date Details Folio

Accounts

Payable Inventory Motor

Vehicle GST Paid

20X3 $ $ $ $ Sep 3 S Wafire 305.4 3 256 2 960 296

12 M Dills 305.5 42 680 38 800 3 880 16 S Wafire – returns 305.4 (264) (240) (24)

45 672 2 720 38 800 4 152

(110) (225) (135)

Cash Payments Journal of A Dederson CPJ1

Date Particulars Folio Bank Accounts Payable

Discount Received Wages

GST Paid

20X3 $ $ $ $ $ Sep 6 Wages 1 380 1 380

12 M Dills 305.5 4 800 4 800 14 G Karvey 305.2 800 800 21 W Fagnall 305.1 1 322 1 366 (40) (4)

8 302 6 966 (40) 1 380 (4)

(125) (525) (740) (135)

Cash Receipts Journal of A Dederson CRJ1

Date Particulars Folio Bank

Accounts

Receivable

Discount

Allowed

GST Collecte

d

20X3 $ $ $ $ $ Sep

5 P Kilby 115.2 1 274 1 274

13 H Esbawn 115.1 12 536 12 800 (240) (24) 23 W Etton 115.3 4 376 4 376 29 W Etton – dishonoured cheque 115.3 (4 376) (4 376)

13 810 14 074 (240) (24)

(125) (785) (315)

(c)

Inventory Folio 110

20X3

20X3

Sep 1

Capital GJ1 38 400

Sep 30 Cost of goods sold SJ1 1 340

30 Accounts payable PJ1 2 720 Balance c/d 39 780

41 120

41 120

Oct 1

Balance b/d 39 780


98

Accounts Receivable – H Esbawn Folio 115.1

20X3

20X3

Sep 1

Capital GJ1 12 800

30 Bank CR1 12 800

Accounts Receivable – P Kilby Folio 115.2

20X3

20X3

Sep 1

Capital GJ1 6 400 Sep 5

Bad debts GJ1 5 126

30 Bank CR1 1274

6 400 6 400

Accounts Receivable – W Etton Folio 115.3

20X3

20X3

Sep 1

Capital GJ1 1 692 Sep 5

Sales Returned SJ1 176

30 Sales SJ1 2 860 30 Bank CR1 4 376 Bank (dishonour) CR1 4 376 Balance c/d 4 376

8 928 8 928

Oct 1

Balance b/d 4 376

Accounts Receivable – O Lakes Folio 115.4

20X3

Sep 9

Motor Vehicle SJ1 30 800

GST Paid Folio 135

20X3

20X3

Sep 1

Capital GJ1 600 Sep 5

Bank CP1 4

8 Accounts receivable – G Karvey GJ1

12

30 Inventory PJ1 4 152 Balance c/d 4 760

4 764 4 764

Oct 1

Balance b/d 4 760

Plant & Machinery Folio 215

20X3

Sep 1

Capital GJ1 54 000

Motor Vehicles Folio 225

20X3

20X3

Sep 1

Capital GJ1 56 000

Sep 30 Accounts receivable SJ1 28 000

30 Accounts payable PJ1 38 800

Balance c/d 66 800

94 800

94 800

Oct 1

Balance b/d 66 800

Bank Overdraft Folio 310

20X3

20X3

Sep 30 Receipts CR1 13 810

Sep 1

Capital GJ1 10 600

Balance c/d 5 092 30 Payments CP1 8 302

18 18


99

902 902

Oct 1

Balance b/d 5 092

Accounts Payable – W Fagnall Folio 305.1

20X3

20X3

Sep 30 Bank CP1 1 366 Sep 1

Capital GJ1 1 366

Accounts Payable – G Karvey Folio 305.2

20X3

20X3

Sep 30 Bank CP1 800 Sep 1

Capital GJ1 2 406

Balance c/d 1 738 8 Late fee expense GJ1 132

2 538 2 538

Oct 1

Balance b/d 1 738

Accounts Payable – L Hynn Folio 305.3

20X3 Sep 1 Capital GJ1 2 818

Accounts Payable – S Wafire Folio 305.4

20X3

20X3

Sep16 Purchases (returned) PJ1 264 Sep 3 Purchases PJ1 3 256 Balance c/d 2 992

3 256 3 256

Oct 1 Balance b/d 2 992

Accounts Payable – M Dills Folio 305.5

20X3

20X3

Sep 30 Bank CP1 4 800 Sep 12

Purchases PJ1 42 680

Balance c/d 37 880

42 680

42 680

Oct1 Balance b/d 37 880

GST Collected Folio 315

20X3

20X3

Sep 5

Accounts receivable – P KIlby GJ1

466 Sep 1 Capital GJ1 4 000

30 Bank CR1 24 30 Accounts receivable SJ1 3 044 Balance c/d 6 554

7 044 7 044


Loan Folio 410

20X3 Sep 1 Capital 20 000

Capital Folio 455

20X3 Sep 1 Assets and liabilities GJ1 128

702

Sales Folio 505

20X3 Sep 30 Accounts receivable SJ1 2 440

Discount Received Folio 525

20X3 Sep 30 Bank CP1 40

Cost of Goods Sold Folio 600


100

20X3

Sep 30 Inventory 1 340

Discount Allowed Folio 610

20X3

Sep 30 Bank 240

Wages Folio 740

20X3

Sep 30 Bank 1 380

Bad Debts Folio 787

20X3

Sep 5

Accounts receivable – P KilbyGJ1 4 660

Late Fee Expense Folio 797

20X3

Sep 30 Accounts payable – G KarveyGJ1 120

(d) A Dederson

Trial Balance as at 30 September 20X3

$ $ Inventory 39 780 Accounts receivable – W Etton 4 376 Accounts receivable – O Lakes 30 800 GST paid 4 760 Plant & machinery 54 000 Motor vehicles 66 800 Bank Overdraft 5 092 Accounts payable – G Karvey 1 738 Accounts payable – L Hynn 2 818 Accounts payable – S Wafire 2 992 Accounts payable – M Dills 37 880 GST collected 6 554 Loan 20 000 Capital 128 702 Sales 2 440 Discount received 40 Cost of goods sold 1 340 Discount allowed 240 Wages 1 380 Bad debts 4 660 Interest expense 120

208 256 208 256

107

CHAPTER 7

SUBSIDIARY LEDGERS – ACCOUNTS RECEIVABLE (DEBTORS) AND ACCOUNTS PAYABLE (CREDITORS) Solution 7.2 (a) (i) General Journal of C Anderson GJ1


20X0 $ $

July 1 Inventory 110 42 000 Bank 125 7 000 GST paid 135 6 500 Plant & machinery 215 23 000 Capital 455 78 500 Assets introduced at commencement

Inventory 110 1 760 GST paid 135 176 Accounts payable control 305 1 936 J Gibson 1936 305.1 Inventory bought on credit

6 Stationery 762 340 GST paid 135 34 Accounts payable control 305 374 Paper Supplies 374 305.2 Stationery bought on credit

8 Accounts payable control 305 132 J Gibson 132 305.1 Inventory 110 120

GST paid 135 12 Credit note received from goods returned

9 Accounts payable control 305 1 804 J Gibson 1 804 305.1 Bank 125 1 727 Discount received 525 70 GST paid 135 7 Paid amount owing

11 Inventory 110 670 GST paid 135 67

Accounts payable control 305 737 M Cronin 737 305.3 Inventory bought on credit

14 Petty cash 130 600 Bank 125 600 Petty cash established

16 Inventory 110 250 GST paid 135 25 Accounts payable control 305 275 J Gibson 275 305.1 Inventory bought on credit

19 Accounts payable control 305 374 Paper Suppliers 374 305.2 Bank 125 352 Discount received 525 20


108


GST paid 135 2 Paid amount owing

21 Accounts payable control 305 187 M Cronin 187 305.3 Inventory 110 170 GST paid 135 17 Credit note received for goods returned

24 Stationery 762 230 GST paid 135 23 Accounts payable control 305 253 Paper Suppliers 253 305.2 Stationery bought on credit

31 Accounts payable control 305 44 Paper Suppliers 44 305.2 Stationery 762 40 GST paid 135 4 Stationery returned to supplier

(ii)

General ledger of C Anderson Inventory Folio No 110

20X0 20X0 July 1 Capital GJ1 42 000 July 8 Accounts payable control GJ1 120

Accounts payable control GJ1 1 760 21 Accounts payable control GJ1 170 11 Accounts payable control GJ1 670 31 Balance c/d 44 390 16 Accounts payable control GJ1 250

44 680 44 680

Aug 1 Balance b/d 44 390 Bank Folio No 125

20X0 20X0 July 1 Capital GJ1 7 000 July 9 Accounts payable control GJ1 1 727

14 Petty cash GJ1 600 19 Accounts payable control GJ1 352 31 Balance c/d 4 321

7 000 7 000

Aug 1 Balance b/d 4 321 Petty Cash Folio No 130

20X0 July 14 Bank GJ1 600

GST paid Folio No 135

20X0 20X0 July 1 Capital GJ1 6 500 July 8 Accounts payable control GJ1 12

Accounts payable control GJ1 176 9 Accounts payable control GJ1 7 6 Accounts payable control GJ1 34 19 Accounts payable control GJ1 2

11 Accounts payable control GJ1 67 21 Accounts payable control GJ1 17 16 Accounts payable control GJ1 25 31 Accounts payable control GJ1 4 24 Accounts payable control GJ1 23 Balance c/d 6 783

6 825 6 825

Aug 1 Balance b/d 6 783 Plant and Machinery Folio No 215

20X0 July 1 Capital GJ1 23 000

Chapter 7: Subsidiary Ledgers – Accounts Receivable (Debtors) and Accounts Payable (Creditors)

109

Accounts Payable Control Folio No 305

20X0 20X0 July 8 Inventory GJ1 132 July 1 Inventory GJ1 1 936

9 Bank GJ1 1 804 6 Stationery GJ1 374 19 Bank GJ1 374 11 Inventory GJ1 737 21 Inventory GJ1 187 16 Inventory GJ1 275 31 Stationery GJ1 44 24 Stationery GJ1 253

Balance c/d 1 034

3 575 3 575


Capital Folio No 455

20X0 July 1 Assets GJ1 78 500

Discount Received Folio No 525

20X0 July 9 Accounts payable control GJ1 70 19 Accounts payable control GJ1 20

90 Stationery Folio No 762

20X0 20X0 July 6 Accounts payable control GJ1 340 July 31 Accounts payable control GJ1 40

24 Accounts payable control GJ1 230 Balance c/d 530

570 570

Aug 1 Balance b/d 530 (iii)

Accounts Payable Ledger of C Anderson J Gibson 305.1


20X0 July 1 Inventory GJ1 1 936 1 936 CR

8 Inventory returns GJ1 132 1 804 CR 9 Bank GJ1 1 804 Nil

16 Inventory GJ1 275 275 CR

Paper Suppliers 305.2


20X0 July 6 Stationery GJ1 374 374 CR

19 Bank GJ1 374 Nil 24 Stationery GJ1 253 253 CR 31 Stationery – returns GJ1 44 209 CR

M Cronin 305.3


20X0 July 11 Inventory GJ1 737 737 CR

21 Inventory – returns GJ1 187 550 CR

(iv)

Trial Balance of C Anderson as at July 31 20X0

$ $

Inventory 44 390 Bank 4 321 Petty Cash 600 GST paid 6 783 Plant & machinery 23 000 Accounts payable control 1 034 Capital 78 500 Discount received 90 Stationery 530

79 624 79 624

(v)


110

Schedule of Accounts Payable Balances

$

J Gibson 275 Paper Suppliers 209 M Cronin 550

Balance as per accounts payable control 1 034 (b) (i)

General Journal of C Anderson


20X0 July 1 Inventory 110 42 000

Bank 125 7 000 GST paid 135 6 500 Plant & machinery 215 23 000

Capital – C Anderson 78 500 Assets introduced at commencement of business

Purchases Journal of C Anderson PJ1

Date Details Folio Accounts Payable Inventory Stationery GST paid

20X0 $ $ $ $ July 1 J Gibson 305.1 1 936 1 760 176

6 Paper Suppliers 305.2 374 340 34 8 J Gibson – returns 305.1 (132) (120) (12)

11 M Cronin 305.3 737 670 67 16 J Gibson 305.1 275 250 25 21 M Cronin – returns 305.3 (187) (170) (17) 24 Paper Suppliers 305.2 253 230 23 31 Paper Suppliers – returns 305.2 (44) (40) (4)

3 212 2 390 530 292

305 110 762 135

Cash Payments Journal of C Anderson CPJ1

Date Details Folio Bank Accounts Payable

Discount Rec’d

Petty Cash GST paid

20X0 $ $ $ $ $ July 9 J Gibson 305.1 1 727 1 804 (70) (7)

14 Petty cash 600 600 19 Paper Suppliers 305.2 352 374 (20) (2)

2 679 2 178 (90) 600 (9)

125 305 525 130 135

(ii) General Ledger of C Anderson

Inventory Folio 110

20X0 July 1 Capital – C Anderson GJ1 42 000

31 Accounts payable PJ1 2 390

44 390

Bank Folio 125

20X0 20X0 July 1 Capital – C Anderson GJ1 7 000 July 31 Bank CPJ1 2 679

Balance c/d 4 321

7 000 7 000


Petty Cash Folio 130

20X0 July 31 Payments CPJ1 600

GST Paid Folio 135

20X0 20X0 July 1 Capital – C Anderson GJ1 6 500 July 31 Bank CPJ1 9

31 Accounts payable PJ1 292 Balance c/d 6 783

6 792 6 792


111



20X0 July 1 Capital GJ1 23 000

Accounts Payable Control Folio 305

20X0 20X0 31 Bank CPJ1 2 178 July 31 Inventory PJ1 3 212

Balance c/d 1 034

3 212 3 212


Capital – C Anderson Folio 455

20X0 July 1 Assets GJ1 78 500


20X0 July 31 Bank CPJ1 90

Stationery Folio 762

20X0 July 31 A/cs payable control PJ1 530

(iii)

Accounts Payable Ledger of C Anderson J Gibson 305.1


20X0 July 1 Inventory PJ1 1 936 1 936 CR

8 Inventory returns PJ1 132 1 804 CR 9 Bank CPJ1 1 804 Nil

16 Inventory PJ1 275 275 CR

Paper Suppliers 305.2


20X0 July 6 Stationery PJ1 374 374 CR

19 Bank CPJ1 374 Nil 24 Stationery PJ1 253 253 CR 31 Stationery – returns PJ1 44 209 CR

M Cronin 305.3


20X0 July 11 Inventory PJ1 737 737 CR

21 Inventory – returns PJ1 187 550 CR

(iv)

Trial Balance of C Anderson as at July 31 20X0

$ $

Inventory 44 390 Bank 4 321 Petty Cash 600 GST paid 6 783 Plant & machinery 23 000 Accounts payable control 1 034 Capital 78 500 Discount received 90 Stationery 530

79 624 79 624

(v) Schedule of Accounts Payable Balances

$

J Gibson 275


112

Paper Suppliers 209 M Cronin 550

Balance as per accounts payable control 1 034

Solution 7.4 (a) (i) General Journal of L Smith GJ1


20X2 $ $ April 1 Bank 125 8 000

Inventory 110 6 000 Motor vehicle 225 10 000 Furniture & Fittings 230 1 200 GST paid 135 1 720

Loan Finance Co 410 9 000 Capital 455 17 920 Assets & liabilities at commencement

Accounts receivable control 115 2 640 T Yates 2640 115.1 Sales 505 2 400 GST collected 315 240 Goods sold on credit

Cost of goods sold 600 1 200 Inventory 110 1 200 Cost of goods sold

3 Accounts receivable control 115 3 960 J Hope 3 960 115.2 Sales 505 3 600 GST collected 315 360 Goods sold on credit

Cost of goods sold 600 1 800 Inventory 110 1 800 Cost of goods sold

4 Inventory 110 500 GST paid 135 50 Accounts payable control 305 550 M Buffier 550 305.1 Goods bought on credit

6 Computers 235 2 300 GST paid 135 230 Accounts payable control 305 2 530

Supreme Office Equipment 2 530 305.2 Computer bought on credit

9 Bank 125 1 100 Sales 505 1 000 GST collected 315 100 Goods sold for cash

Cost of goods sold 600 500 Inventory 110 500 Cost of goods sold

12 Drawings 460 75 Bank 125 75 Cash withdrawn for private use

15 Accounts payable control 305 550 M Buffier 550 305.1 Bank 125 539 Discount received 525 10 GST paid 135 1 Payment of account

23 Sales 505 100 GST collected 315 10 Accounts receivable control 115 110 J Hope 110 115.2 Goods returned

Inventory 110 50 Cost of goods sold 600 50


113


Cost of goods returned

25 Bank 125 3 773 Discount allowed 610 70 GST collected 315 7 Accounts receivable control 115 3 850 J Hope 3 850 115.2 Received payment of account

26 Inventory 110 800 GST paid 135 80 Bank 125 880 Cash purchases

28 Bank charges 792 10 Bank 125 10 Bank charges incurred

(ii) General Ledger of L Smith

Inventory Folio 110

20X2 20X2 Apr 1 Capital GJ1 6 000 Apr 1 Cost of goods sold GJ1 1 200

4 Accounts payable control GJ1 500 3 Cost of goods sold GJ1 1 800 23 Cost of goods sold GJ1 50 9 Cost of goods sold GJ1 500 26 Bank GJ1 800 30 Balance c/d 3 850

7 350 7 350

May 1 Balance b/d 3 850 Accounts Receivable Control Folio 115

20X2 20X2 Apr 1 Sales GJ1 2 640 Apr 23 Sales GJ1 110

3 Sales GJ1 3 960 25 Bank GJ1 3 850 30 Balance c/d 2 640

6 600 6 600


Bank Folio 125

20X2 20X2 Apr 1 Capital GJ1 8 000 Apr 12 Drawings GJ1 75

9 Sales GJ1 1 100 15 Accounts payable control GJ1 539 25 Accounts receivable control GJ1 3 773 26 Inventory GJ1 880

28 Bank charges GJ1 10 30 Balance c/d 11 369

12 873 12 873


GST paid Folio 135

20X2 20X2

Apr 1 Capital GJ1 1 720 Apr 15 Accounts payable control GJ1 1 4 Accounts payable control GJ1 50 30 Balance c/d 2 079 6 Accounts payable control GJ1 230

26 Bank GJ1 80

2 080 2 080



20X2 Apr 1 Capital GJ1 10 000

Furniture & Fittings Folio 230


Computers Folio 235

20X2 Apr 6 Accounts payable control GJ1 2 300


20X2 20X2


114

Apr 15 Bank GJ1 550 Apr 4 Inventory GJ1 550 30 Balance c/d 2 530 6 Computers GJ1 2 530

3 080 3 080



20X2 20X2

Apr 23 Accounts receivable control GJ1 10 Apr 1 Accounts receivable control GJ1 240 25 Accounts receivable control GJ1 7 3 Accounts receivable control GJ1 360 30 Balance c/d 683 9 Bank GJ1 100

700 700


Loan Finance Co Folio 410


Capital Folio 455

20X2 Apr 1 Assets & liabilities GJ1 17 920

Drawings Folio 460

20X2 Apr 12 Bank GJ1 75

Sales Folio 505

20X2 20X2 Apr 23 Accounts receivable control GJ1 100 Apr 1 Accounts receivable control GJ1 2 400

30 Balance c/d 6 900 3 Accounts receivable control GJ1 3 600 9 Bank GJ1 1 000

7 000 7 000



20X2 Apr 15 Accounts payable control GJ1 10


20X2 20X2 Apr 1 Inventory GJ1 1 200 Apr 23 Inventory GJ1 50

3 Inventory GJ1 1 800 30 Balance c/d 3 450 9 Inventory GJ1 500

3 500 3 500



20X2 Apr 25 Accounts receivable control GJ1 70 150

Bank Charges Folio 792

20X2 Apr 28 Bank GJ1 10

(iii) L Smith

Accounts Receivable Ledger T Yates Folio 115.1


20X2 Apr 1 Sales SJ1 2 640 2 640 DR

J Hope Folio 115.2


20X2 Apr 3 Sales SJ1 3 960 3 960 DR

23 Sales – returns SJ1 110 3 850 DR


115

25 Bank CR1 3 850 Nil

L Smith Accounts Payable Ledger

M Buffier Folio 305.1


20X2 Apr 4 Inventory PJ1 550 550 CR

15 Bank CPJ1 550 Nil

Supreme Office Equipment Folio 305.2


20X2 Apr 6 Computers PJ1 2 530 2 530 CR

(iv)

Trial Balance of L Smith as at 30 April 20X2

$ $ Inventory 3 850 Accounts receivable control 2 640 Bank 11 369 GST paid 2 079 Motor vehicles 10 000 Furniture & fittings 1 200 Computers 2 300 Accounts payable control 2 530 GST collected 683 Loan 9 000 Capital – L Smith 17 920 Drawings 75 Sales 6 900 Discount received 10 Cost of goods sold 3 450 Discount allowed 70 Bank charges 10

37 043 37 043

(v) Schedule of Accounts Receivable Balances

$ T Yates 2 640


$ Supreme Office Equipment 2 530

(b) (i) General Journal of L Smith GJ1


20X2 Apr 1 Bank 125 8 000

Inventory 110 6 000 Motor vehicle 225 10 000

Furniture & fittings 230 1 200 GST paid 135 1 720 Loan 410 9 000 Capital – L Smith 455 17 920 Assets & liabilities at commencement of business

Sales Journal of L Smith

Date

Cost of Goods Sold Details

Folio

Accounts Receivable Sales

GST collected

20X2 $ $ $ Apr 1 1 200 T Yates 115.1 2 640 2 400 240

3 1 800 J Hope 115.2 3 960 3 600 360 23 (50) J Hope – returns 115.2 (110) (100) (10)

2 950 6 490 5 900 590


116

600/110 115 505 315

Purchases Journal of L Smith

Date Details

Folio Accounts Payable Inventory Computers

GST paid

20X2 $ $ $ $ Apr 4 M Buffier 305.1 550 500 50

6 Supreme Office Equip 305.2 2 530 2 300 230

3 080 500 2 300 280

305 110 235 135

Cash Receipts Journal of L Smith

Date

Cost of Goods Sold Details

Folio Bank Accounts

Receivable Discount Allowed Sales

GST collected

20X2 $ $ $ $ $ Apr 9 500 Sales 1 100 1 000 100

25 J Hope 115.2 3 773 3 850 (70) (7)

500 4 873 3 850 (70) 1 000 93

600/110 125 115 610 505 315

Cash Payments Journal of L Smith

Date Details

Folio Bank Accounts Payable

Disc Rec’d Drawings Inventory

Bank Charge

GST paid

20X2 $ $ $ $ $ $ $ Apr 12 Drawings 75 75

15 M Buffier 305.1 539 550 (10) (1) 26 Purchases 880 800 80 28 Bank charges 10 10

1 504 550 (10) 75 800 10 79

125 305 525 460 110 792 135

(ii)

General Ledger of L Smith Inventory Folio 110

20X2 20X2 Apr 1 Capital – L Smith GJ1 6 000 Apr 30 Cost of goods sold SJ1 2 950

30 Purchases PJ1 500 Cost of goods sold CR1 500 Bank CPJ1 800 Balance c/d 3 850

7 300 7 300


Accounts Receivable Control Folio 115

20X2 20X2 Apr 30 Sales SJ1 6 490 Apr 30 Bank CR1 3 850

Balance c/d 2 640

6 490 6 490

May 1 Balance c/d 2 640

Bank Folio 125

20X2 20X2 Apr 1 Capital – L Smith GJ1 8 000 Apr 30 Payments

CPJ1 1 504


12 873 12 873


GST Paid Folio 135

20X2 Apr 1 Capital – L Smith GJ1 1 720

30 A/cs payable PJ1 280 Bank CPJ1 79

2 079



117


Furniture & Fittings Folio 230


Computers Folio 235

20X2 Apr 30 A/cs payable control GJ1 2 300


20X2 20X2 Apr 30 Bank CPJ1 550 Apr 30 Purchases PJ1 3 080

Balance c/d 2 530

3 080 3 080



20X2 Apr 30 Accounts receivable SJ1 590 Bank CR1 93

683

Loan Folio 410


Capital – L Smith Folio 455

20X2 Apr 1 Assets & liabilities GJ1 17 920

Drawings Folio 460

20X2 Apr 30 Bank CPJ1 75

Sales Folio 505

20X2 Apr 30 Bank CR1 1 000 A/cs receivable control SJ1 5 900

6 900




20X2 Apr 30 Inventory SJ1 2 950

Inventory CR1 500

3 450


20X2 Apr 30 Bank CR1 70



(iii)

L Smith Accounts Receivable Ledger

T Yates Folio 115.1


20X2


118

Apr 1 Sales SJ1 2 640 2 640 DR

J Hope Folio 115.2


20X2 Apr 3 Sales SJ1 3 960 3 960 DR

23 Sales – returns SJ1 110 3 850 DR 25 Bank CR1 3 850 Nil

L Smith Accounts Payable Ledger

M Buffier Folio 305.1


20X2 Apr 4 Inventory PJ1 550 550 CR

15 Bank CPJ1 550 Nil

Supreme Office Equipment Folio 305.2


20X2 Apr 6 Computers PJ1 2 530 2 530 CR

(iv) Trial Balance of L Smith as at 30 April 20X2

$ $ Inventory 3 850 Accounts receivable control 2 640 Bank 11 369 GST paid 2 079 Motor vehicles 10 000 Furniture & fittings 1 200 Computers 2 300 Accounts payable control 2 530 GST collected 683 Loan 9 000 Capital – L Smith 17 920 Drawings 75 Sales 6 900 Discount received 10 Cost of goods sold 3 450 Discount allowed 70 Bank charges 10

37 043 37 043

(v) Schedule of Accounts Receivable Balances

$ T Yates 2 640


$ Supreme Office Equipment 2 530

Solution 7.6 (a)

General Ledger of I Lucas Accounts Receivable Control Folio 115

20X9 20X9 Sept 18 Service revenue GJ1 715 Sept 24 Bank GJ1 300

27 Service revenue GJ1 1 760 29 Service revenue GJ1 77 30 Balance c/d 2 098

2 475 2 475


Bank Folio 125

20X9 Sept 1 Capital GJ1 30 800

2 Loan from Ozzie GJ1 40 000 5 Service revenue GJ1 1 540


119

24 Accounts receivable control GJ1 300

72 640

GST paid Folio 135

20X9 20X9 Sept10 Accounts payable control GJ1 190 Sep 21 Accounts payable control GJ1 18

14 Accounts payable control GJ1 86 30 Balance c/d 258

276 276

Oct 1 Balance b/d 258


20X9 20X9 Sept 21 Office supplies GJ1 198 Sept 10 Office supplies GJ1 2 090

30 Balance c/d 2 838 14 Advertising GJ1 946

3 036 3 036


GST collected Folio 315

20X9 20X9 Sept 29 Accounts receivable control GJ1 7 Sept 5 Bank GJ1 140

30 Balance c/d 358 18 Accounts receivable control GJ1 65 27 Accounts receivable control GJ1 160

365 365

Oct 1 Balance b/d 358

Loan from Ozzie Folio 410

20X9 Sept 1 Capital GJ1 5 000 2 Bank GJ1 40 000

45 000

Capital Folio 455

20X9 Sept 1 Assets & liabilities GJ1 25 800

Service Revenue Folio 507

20X9 20X9 Sept 29 Accounts receivable control GJ1 70 Sept 5 Bank GJ1 1 400

30 Balance c/d 3 580 18 Accounts receivable control GJ1 650 27 Accounts receivable control GJ1 1 600

3 650 3 650


Advertising Folio 710

20X9 Sept 14 Accounts payable control GJ1 860

Office Supplies Folio 767

20X9 20X9 Sept 10 Accounts payable control GJ1 1 900 Sept 21 Accounts payable control GJ1 180


1 900 1 900


Accounts Receivable Ledger R Stone Folio 115.1


20X9 Sept 18 Service revenue GJ1 715 715 DR

24 Bank GJ1 300 415 DR 29 Service revenue GJ1 77 338 DR

N Younis Folio 115.2


20X9


120

Sept 27 Service revenue GJ1 1 760 1 760 DR

Accounts Payable Ledger

R Lee Folio 305.1


20X9 Sept 10 Office supplies GJ1 2 090 2 090 CR

21 Office supplies GJ1 198 1 892 CR

Ad Co Folio 305.2


20X9 Sept 14 Advertising GJ1 946 946 CR

(b) I Lucas

Trial balance as at 30 September 20X9 Debit Credit

$ $ Accounts receivable control 2 098 Bank 72 640 GST paid 258 Accounts payable control 2 838 GST collected 358 Loan from Ozzie 45 000 Capital 25 800 Service revenue 3 580 Advertising 860 Office supplies 1 720

77 576 77 576

(c) Schedule of Accounts Receivable Balances

$ R Stone 338 N Younis 1 760

Balance as per accounts receivable control 2 098


R Lee 1 892 Ad Co 946


Solution 7.8 (a)

General Ledger of J Fisher Inventory Folio 110

20X8 20X8 Mar 1 Capital GJ1 30 000 Mar 29 Drawings GJ1 130

31 Accounts payable control PJ1 1 160 30 Donations GJ1 150 Bank

CPJ1 140 31 Cost of goods sold SJ1 364

Cost of goods sold CR1 530 Balance c/d 30 126

31 300 31 300

Apr 1 Balance b/d 30 126


20X8 20X8 Mar 1 Capital – J Fisher GJ1 10 250 Mar 31 Bank CR1 3 124

31 Sales SJ1 2 882 Bad debts GJ1 1 023 Balance c/d 8 985

13 132 13 132



121

Bank Folio 125

20X8 20X8 Mar 1 Capital – J Fisher GJ1 40 000 Mar 31 Payments CPJ1 2 110


44 257 44 257


GST paid Folio 135

20X8 20X8 Mar 1 Capital – J Fisher GJ1 870 Mar 29 Drawings GJ1 13

Mar 31 A/cs payable control PJ1 186 30 Donations GJ1 15 Bank CPJ1 43 31 Balance c/d 1071

1 099 1 099


Plant Folio 220

20X8 Mar 1 Capital – J Fisher GJ1 16 000


20X8 20X8 Mar 1 Capital – J Fisher GJ1 11 200 Mar 31 A/cs receivable control SJ1 1 900

Balance c/d 9 300

11 200 11 200


Furniture & Equipment Folio 230

20X8 20X8 Mar 1 Capital – J Fisher GJ1 6 000 Mar 31 Bank CR1 70

31 A/cs payable control PJ1 700 A/cs receivable control SJ1 110 Bank CPJ1 250 Balance c/d 6 770

6 950 6 950



20X8 20X8 Mar 31 Bank CPJ1 1 505 Mar 1 Capital – J Fisher GJ1 2 470

Balance c/d 3 011 31 Purchases PJ1 2 046

4 516 4 516



20X8 20X8 Mar 31 A/cs receivable control GJ1 93 Mar 1 Capital – J Fisher GJ1 1 090

Balance c/d 1 362 31 A/cs receivable control SJ1 262 Bank CR1 103

1 455 1 455


Capital – J Fisher

20X8 Mar 1 Assets & liabilities GJ1 110 760

Drawings Folio 460

20X8 Mar 29 Inventory GJ1 143

31 Bank CPJ1 132

275

Sales Folio 505

20X8 Mar 31 A/cs receivable control GJ1 610 Bank CR1 960

1 570


122


20X8 Mar 31 Bank

CPJ1 80


20X8 Mar 31 Inventory SJ1 364

Bank CR1 530

894

Advertising Folio 710

20X8 Mar 31 Bank CPJ1 120

Donations Folio 777

20X8 Mar 30 Inventory GJ1 165

Accounts Receivable Ledger of J Fisher

W Black Folio 115.1


20X8 Mar 1 Balance GJ1 3 750 3 750 DR

3 Sales SJ1 308 4 058 DR 16 Sales (returns) SJ1 11 4 047 DR 25 Bank CR1 261 3 786 DR 30 Bank (chq dishonoured) CR1 261 4 047 DR 31 Bank CR1 3 024 1 023 DR

Bad debts GJ1 1 023 Nil

B Day Folio 115.2


20X8 Mar 1 Balance GJ1 6 500 6 500 DR

14 Sales SJ1 374 6 874 DR 25 Bank CR1 100 6 774 DR

W Blue Folio 115.3


20X8 Mar 23 Furniture & equipment SJ1 121 121 DR

Ryde Motor Cycles Folio 115.4


20X8 Mar3 1 Motor vehicle SJ1 2 090 2 090 DR

Accounts Payable Ledger of J Fisher

P Perkins Folio 305.1


20X8 Mar 1 Balance GJ1 1 230 1 230 CR

2 Inventory PJ1 297 1 527 CR 13 Inventory returns PJ1 22 1 505 CR 22 Inventory PJ1 110 1 615 CR 27 Bank CPJ1 1 505 110 CR

J Parker Folio 305.2


20X8

Bad Debts Folio 787

20X8 Mar 31 A/cs receivable control GJ1 930


123

Mar 1 Balance GJ1 1 240 1 240 CR 7 Inventory PJ1 891 2 131 CR

C Harris Folio 305.3


20X8 Mar 5 Furniture & equipment PJ1 770 770 CR

(b)

Trial Balance of J Fisher as at 31 March 20X8

$ $ Inventory 30 126 Accounts receivable control 8 985 Bank 42 147 GST paid 1 071 Plant 16 000 Motor vehicles 9 300 Furniture & equipment 6 770 Accounts payable control 3 011 GST clearing 1 362 Capital – J Fisher 110 760 Drawings 275 Sales 1 570 Discount received 80 Cost of goods sold 894 Advertising 120 Donations 165 Bad debts 930

116 783 116 783

(c) Schedule of Accounts Receivable Balances

$ W Blue 121 B Day 6 774 Ryde Motor Cycles 2 090



$ P Perkins 110 J Parker 2 131 G Harris 770


Solution 7.10 (a)

General Ledger of R David Inventory Folio 110

20X8 20X8 May 1 Capital GJ1 50 000 May 31 Cost of goods sold SJ1 1 945

31 Accounts payable control PJ1 920 Balance c/d 50 165 Bank

CPJ1 1 190

52 110 52 110



20X8 20X8 May 1 Capital – R David GJ1 10 635 May 29 Bad debts GJ1 1 859

1 Sales SJ1 5 115 31 Bank CR1 4 660 Balance c/d 9 231

15 750 15 750

June1 Balance b/d 9 231 Bank Folio 125

20X8 20X8 May 31 Receipts CR1 7 649 May 1 Capital – R David GJ1 9 600


124

Balance c/d 6 547 31 Bank CPJ1 4 596

14 196 14 196


Petty Cash Folio 130

20X8 May 1 Capital – R David GJ1 700

GST paid Folio 135

20X8 May 1 Capital – R David GJ1 1 700

31 Accounts payable control PJ1 107 Bank CPJ1 115

1 922

Land & Buildings Folio 210






Office Furniture & Equipment Folio 230

20X8 20X8 May 1 Capital – R David GJ1 9 400 May 31 A/cs receivable control SJ1 900

Balance c/d 8 500

9 400 9 400


Investments Folio 260



20X8 20X8 May 31 Bank CPJ1 1 912 May 1 Capital – R David GJ1 4 361

Balance c/d 4 472 31 Purchases PJ1 2 023

6 384 6 384



20X8 20X8 May 29 Accounts receivable control GJ1 169 May 1 Capital – R David GJ1 2 100

31 Bank CR1 1 31 A/cs receivable control SJ1 465 Balance c/d 2 395

2 565 2 565


Capital – R David Folio 455

20X8 May 1 Assets & liabilities GJ1 359 574 4 Motor vehicle GJ1 20 240

379 814

Sales Folio 505

20X8 May 31 A/cs receivable control SJ1 3 750

Interest Income Folio 515

20X8


125

May 31 Bank CR1 3 000


20X8 May 31 Bank CPJ1 40


20X8 May 31 Inventory SJ1 1 945


20X8 May 31 Bank CR1 10

Wages Folio 740

20X8 May 31 Bank CPJ1 1 320

Rates Folio 760

20X8 May 1 A/cs payable control PJ1 846

Stationery Folio 762

20X8 May 31 A/cs payable control PJ1 150

Bad Debts Folio 787

20X8 May 31 A/cs receivable control GJ1 1 690


20X8 May 31 Bank CPJ1 99

Accounts Receivable Ledger of R David

W Scott Folio 115.1


20X8 May 1 Balance 4 019 4 019 DR

29 Bank CR1 2 160 1 859 DR Bad debts GJ1 1 859 Nil

W Janine Folio 115.2


20X8 May 1 Balance 3 622 3 622 DR

Sales SJ1 1 045 4 667 DR 8 Sales (returns) SJ1 110 4 557 DR

13 Bank CR1 3 622 935 DR 16 Bank – dishonoured chq CR1 3 622 4 557 DR 28 Bank 500 4 057 DR

W Payne Folio 115.3


20X8 May 1 Balance 2 994 2 994 DR

5 Bank CR1 1 549 1 445 DR 23 Sales SJ1 2 739 4 184 DR

W Susan Folio 115.4


20X8 May 11 Sales 451 451 DR

18 Bank CR1 451 Nil

C Palmer Folio 115.5



126

20X8 May 15 Furniture & equipment SJ1 990 990 DR

Accounts Payable Ledger of R David

W Laurence Folio 305.1


20X8 May 1 Balance 1 912 1 912 CR

6 Bank CPJ1 1 912 Nil 22 Inventory 253 253 CR 25 Inventory – returns 44 209 CR

W Gillett Folio 305.2


20X8 May 1 Balance 1 004 1 004 CR

W Renae Folio 305.3


20X8 May 1 Balance 1 445 1 445 CR

C Gillett Folio 305.4


20X8 May 6 Inventory PJ1 803 803 CR

Bangor Office Supplies Folio 305.5


20X8 May 19 Stationery PJ1 198 198 CR

26 Stationery overcharge PJ1 33 165 CR

Hiland Council Folio 305.6


20X8 May 24 Rates PJ1 846 846 CR

(b)

Trial Balance of R David as at 31 May 20X8

$ $ Inventory 50 165 Accounts receivable control 9 231 Bank 6 547 Petty Cash 700 GST paid 1 922 Land & buildings 195 000 Plant & machinery 48 200 Motor vehicles 20 240 Office furniture & equipment 8 500 Investments 60 000 Accounts payable control 4 472 GST collected 2 395 Capital – R David 379 814 Sales 3 750 Interest income 3 000 Discount received 40 Cost of goods sold 1 945 Wages 1 320 Rates 846 Stationery 150 Discount allowed 10 Bad debts 1 690 Bank charges 99

400 018 400 018

(c)


127

Schedule of Accounts Receivable Balances

$ W Janine 4 057 W Payne 4 184 C Palmer 990



$ W Laurence 209 W Gillett 1 004 C Gillett 803 W. Renae 1 445 Bangor Office Supplies 165 Hiland Council 846


Solution 7.12 (a)

Accounts Receivable Control

20X3 20X3 June 1 Balance b/d 174 300 June 30 Bank 297 600

30 Sales 308 506 Discount allowed 7 800 Balance c/d 177 406

482 806 482 806

July 1 Balance b/d 177 406 (b)



30 Sales 163 900 Discount allowed 700 Bad debts 1 804 Balance c/d 65 996

252 000 252 000

July 1 Balance b/d 65 996 (c)



30 Sales 121 308 Discount allowed 300 Bad debts recovered 2 805 Balance c/d 61 613

169 313 169 313


Solution 7.14 Accounts Receivable Control

20X1 20X1 Mar 1 Balance b/d 2 300 Mar 31 Bank 2 080

Sales 1 925 Disc allowed & GST 50 Bad debts recovered 77 Bad debts 121 Balance c/d 2 051

4 302 4 302


Accounts Payable Control

20X1 20X1 Mar 31 Bank 1 320 Mar 1 Balance b/d 3 400

Disc rec’d & GST 20 Inventory (Purchases) 1 100 Balance b/d 3 160

4 500 4 500


Solution 7.16 Accounts Receivable Control

20X2 20X2 Nov 1 Balance b/d 101 480 Nov 30 Bad debts 3 795

30 Sales 84 117 Bank 67 900


128

Bad debts recovered 990 Balance c/d 114 892

186 587 186 587

Dec 1 Balance b/d 114 892

Accounts Payable Control

20X2 20X2 Nov 30 Bank 47 470 Nov 1 Balance b/d 41 090

Balance c/d 51 766 30 Inventory (Purchases) 58 146

99 236 99 236

Dec 1 Balance b/d 51 766

Solution 7.18

Cash payments journal of R Gooney CP1

Date Chq no:

Payee and/or

Particulars Folio Bank A/cs Pay Disc rec’d Inventory Wages

Bank charges GST paid

20X2 $ $ $ $ $ $ $

Nov 16 H Gant 3 482 3 553 (65) (6)

28 H Gant 10 202 10 296 (86) (8)

Nov 28 – Payment is made up as follows:

Invoice 3665 $5 588 (Invoice $5 632 less credit note $44 = $5 588) (Bank $5 588)

Invoice 4511 $4 708 (Bank $4 614; Discount received $86; GST paid $8)

Accounts payable ledger of R Gooney

H Gant Folio no: 305.1


20X2

Nov 2 Inventory (invoice 2818) PJ1 3 553 3 553 Cr

7 Inventory (invoice 3665) PJ1 5 632 9 185 Cr

13 Inventory (credit note 1577) PJ1 44 9 141 Cr

14 Inventory (invoice 4511) PJ1 4 708 13 849 Cr

16 Bank CP1 3 482 10 367 Cr

Discount received CP1 71 10 296 Cr

28 Bank CP1 10 202 94 Cr

Discount received CP1 94 Nil


129

Solution 7.20

Statement of reconciliation M Morgan

$ $

Balance as per statement dated 30 April 20X7 366

Less: Invoices not yet received

503 26 Apr 20X7 77

644 30 Apr 20X7 130 207

159

Less: Discount received not yet processed

22 Apr 20X7 11 11

Balance as per subsidiary ledger 148

The following action should be taken:

Make inquiries as to why the discount of $11 for the payment made on 22 April has not been

processed.

The outstanding invoices are at the end of the month and may be in process. General inquiry only

required at this stage.

Solution 7.22

J Press

Remittance Advice 30 November 20X0

To: L Tuffs

Account No: 025

Date Particulars Debit Credit Balance

20X0 $ $ $

Nov 3 Purchases invoice 2678 1 329 1 329

6 Purchases credit 1013 191 1 138

10 Purchases invoice 2696 2 876 4 014

17 Purchases invoice 2737 606 4 620

20 Purchases credit 1037 242 4 378

30 Discount taken 109 4 269

Cheque attached 4 269

The accounts receivable subsidiary ledger for J Press revealed:

Accounts receivable ledger of L Tuffs

J Press Folio no: 115.1


20X0

Oct 14 Sales (invoice 2530) SJ1 2 072 2 072 Dr

21 Sales (invoice 2678) SJ1 1 329 3 401 Dr

28 Sales (credit note 1013) SJ1 191 3 210 Dr

Nov 7 Sales (invoice 2696) SJ1 2 876 6 086 Dr

Bank (receipt 63) CR1 2 072 4 014 Dr

14 Sales (invoice 2737) SJ1 660 4 674 Dr

17 Sales (credit note 1037) SJ1 242 4 432 Dr

26 Sales (invoice 2889) SJ1 3 484 7 916 Dr


130

The following action should be taken:

Sales invoice 2737 has been recorded differently. Check back to sales invoice to see which amount

is correct ($660 or $606). If our figures are correct notify debtor. If the debtor has correctly

recorded the amount it will be necessary to update our journals and posting to subsidiary ledger.

Ensure the terms of discount have been met to determine if discount of $109 claimed meets the

terms. If terms met, then process discount allowed in journal. If terms of discount have not been

met then advise debtor.

$ $

Balance as per debtor’s subsidiary ledger account as at 30 November 20X0 7 916

Less: Invoices not paid

2889 (26 Nov 20X0) 3 484 3 484

4 432

Less: Invoice short paid by customer

2737 (14 Nov 20X0)

Should be 660

Paid as 606 54

4 378

Less discount not yet recorded in our records 109

Amount as per remittance advice 4 269

Solution 7.24

Match invoices to payments and tick () both.

Accounts receivable ledger of E Cashman

J Slade Folio no: 115.1


20X4

Nov 1 Sales SJ1 770 770 Dr

15 Sales SJ1 880 1 650 Dr

30 Bank CR1 770 880 Dr

Dec 5 Sales SJ1 440 1 320 Dr

Jan 22 Sales SJ1 1 100 2 420 Dr

Feb 15 Bank CR1 440 1 980 Dr

28 Bank CR1 1 100 880 Dr

P Swine Folio no: 115.2


20X4

Nov 14 Sales SJ1 550 550 Dr

Dec 1 Sales SJ1 110 660 Dr

2 Bank CR1 550 110 Dr

Jan 4 Sales SJ1 775 885 Dr

Feb 18 Sales SJ1 555 1 440 Dr

19 Bank CR1 775 665 Dr

P Jumbuk Folio no: 115.3


20X4

Dec 15 Sales SJ1 670 670 Dr

Jan 1 Sales SJ1 1 112 1 782 Dr


131

12 Sales SJ1 660 2 442 Dr

22 Bank CR1 1 112 1 330 Dr

Feb 16 Sales SJ1 988 2 318 Dr

Record the outstanding invoices in accordance with their overdue period. It is sometimes easier to identify

month of current, 30 days, etc.

Aged Debtors Report as at 28 February 20X4

Debtor Folio Total Current

(Feb)

30 days

(Jan)

60 days

(Dec)

90 days and over

(Nov)

J Slade 115.1 880 880

P Swine 115.2 665 555 110

P Jumbuk 115.3 2 318 988 660 670

TOTAL 3 863 1 543 660 780 880

The following outstanding invoices should be followed up:

J Slade $880 dated 15 November – whilst this customer has paid subsequent invoices this invoice is still

outstanding. Perhaps there is a dispute over this invoice. Ongoing consultation should be occurring and

referring to supervisor as necessary and in accordance with organisational policy.

P Swine $110 dated 1 December – this customer has paid subsequent invoices and again may have

overlooked this invoice or there may be a dispute. Ongoing consultation should be occurring and referring

to supervisor as necessary and in accordance with organisational policy.

P Jumbuk $670 dated 15 December and $660 dated 12 January – whilst this customer has paid a large

invoice from 1 January it is unacceptable to have two invoices outstanding over 30 days. Consultation

should be made with this customer and recommend to supervisor that credit is temporarily suspended until

accounts are paid.

All customers have invoices outstanding over 30 days. This means that the full payment within 30 days is

not being met by any customer. It is important for the business cash flow that debtors pay their accounts

within the terms of the credit policy. An overall review of credit policy may be warranted by management.

161

CHAPTER 8

PETTY CASH Solution 8.2

(a) (Extract of) General Journal of Ian Coom


20X9

July 1 Petty cash 250.00

Bank 250.00

Cheque 17152 – petty cash float established

15 Travel expenses 10.36

Cleaning 20.09

Motor vehicle expenses 78.45

Stationery 26.27

Sundry expenses 50.54

GST paid 18.59

Bank 204.30

Cheque 17193 – reimbursement of petty cash

(b)

Petty Cash Book of Ian Coom

PAYMENT DISSECTION

Date Particulars Vchr no

Amount rec’d

Amount paid GST paid

Travel exp Cleaning

Motor Veh expenses Stationery

Tea money

Sundry exp

20X9

Jul 1 Petty cash advance 17152 250.00

2 Taxi fares 1 11.40 1.04 10.36

3 Soaps and disinfectants 2 9.30 0.85 8.45

5 Petrol 3 26.70 2.43 24.27

8 Mop and bucket 4 12.80 1.16 11.64

9 Pens and pads 5 17.40 1.58 15.82

10 Cancelled 6 –

Repairs to office door 7 19.30 1.76 17.54

Overhead projector pens 8 11.50 1.05 10.45

11 Repairs to tyre 9 14.50 1.32 13.18

Cartage to customer - inv 734 10 21.60 1.96 19.64

12 Repairs to vehicle 11 45.10 4.10 41.00

15 Refill gas cylinder 12 14.70 1.34 13.36

204.30 18.59 10.36 20.09 78.45 26.27 50.54

Cash on hand c/d 45.70

$250.00 $250.00

Cash on hand b/d 45.70

Reimbursement cheque 17193 204.30

Solution 8.4

(a) (Extract of) General Journal of S Baldas


20X6

Feb 21 Freight outwards 80.40

Publications (Newspapers & Magazines) 32.40


Postage 20.20


162

GST paid 17.85

Bank 196.35


Mar 4 Freight outwards 56.00

Publications (Newspapers & Magazines) 17.30


Postage 38.20

GST paid 17.15

Bank 188.65


(b) S Baldas Petty Cash Book

PAYMENT DISSECTION

Date Particulars Vchr

number Amount received


Freight out

News & Magazines

MV expense Postage

20X6

Feb 21 Cash on hand 3.65

Reimburse chq 8751 196.35

22 Rail freight – inv 672 68 47.30 4.30 43.00

Newspapers - W/e 22.2.X6 69 13.20 1.20 12.00

23 Petrol 70 27.50 2.50 25.00

26 Bus freight – inv 810 71 7.70 0.70 7.00

27 Stamps 72 35.20 3.20 32.00

28 Repairs to Delivery truck 73 38.50 3.50 35.00

Mar 2 Magazines & stamps 74 12.65 1.15 5.30 6.20

3 Bus freight – inv 1211 75 6.60 0.60 6.00

188.65 17.15 56.00 17.30 60.00 $38.20

4 Cash on hand 11.35

200.00 200.00

4 Cash on hand 11.35

Reimbursement chq 8844 188.65

Solution 8.6

(a) W Nolvis

Petty Cash Book

PAYMENT DISSECTION

Date Particulars Voucher number

Amount received


Office expenses

News & Magazines

MV expenses

20X9

Apr 1 Cash on hand 8.90

Reimburse chq 17009 191.10

Fish food 189 2.75 0.25 2.50

2 Magazines 190 13.20 1.20 12.00

3 Steam cleaning 191 53.35 4.85 48.50

4 Tea, milk & sugar 192 9.10 – 9.10

Petrol & oil 193 34.10 3.10 31.00

8 Fish tank repairs 194 41.80 3.80 38.00

9 Paper account 195 11.55 1.05 10.50

Car wash & polish 196 21.45 1.95 19.50

10 Write-off of excess 197 (5.00) (5.00)

182.30 16.20 93.10 22.50 50.50

Cash on hand 17.70

200.00 200.00

Cash on hand 17.70

Reimbursement chq 17404 182.30

(b)


20X9

Chapter 8: Petty cash

163

Apr 10 Office expenses 93.10

Newspapers & magazines (Publications) 22.50


GST paid 16.20

Bank 182.30


Solution 8.8

(a)


June 1 Petty cash 200.00

Bank 200.00

Establish petty cash float

(b)


June 21 Office expenses (40.00) 40.00

Inventory (35.00 + 20.00) 55.00

Motor vehicle expenses (25.00) 25.00

GST paid (4.00 + 3.50 + 2.50 + 2.00) 12.00

Bank 132.00

Reimbursement of petty cash

(c)


June 24 Petty cash 300.00

Bank 300.00

Increasing petty cash float

167

CHAPTER 9

BANKING PROCEDURES AND BANK RECONCILIATIONS Solution 9.2

Deposit Receipt One Stop Bank DEPOSIT SLIP

Date …../…../20X…. Toptown .…./…./20X….

Account Name:

……………………………

……………………………

……………………………

Teller stamp $100 0.00 Cash

$117.70 $50 50.00

$20 20.00 Cheques

$401.80 $10 30.00

$5 15.00 Credit card

$109.65 Coins 2.70

Amount

$629.15

Teller & stamp

No of items:

Total 117.70

For CR of: Freeman Sporting Goods $ 0 0 0 6 2 9 . 1 5

One Stop Bank 456:9871ײ▪ ײ▪190ײ190 ײ

Solution 9.4 Books of B Johnson

(a) Ledger Extract Bank

20X5 20X5 May 31 Receipts 8 095 May 31 Payments 3 287

Balance c/d 4 808

8 095 8 095


(b) Bank Reconciliation as at 31 May 20X5

Credit balance as per bank statement 6618 Add: Outstanding deposit 324

31.5.20X2 _324 6 942

Less: Unpresented cheques 2 134 06504 89 06506 267 06510 178 06511 1 600 ______

Debit balance as per bank account $4 808


168

Solution 9.6 (a) Books of G Fagney

Cash Receipts Journal / List (extract)

Date Rec No Particulars Folio Bank A/cs Rec Sundries

20X3 Jul 1 693 Sales 3 814 3 814

4 694 M Jeagher 1 092 5 695 Interest 3 192 2 100 9 696 Capital 3 000 3 000

12 697 D Kaley 3 416 3 416 17 698 Sales 4 079 4 079 21 699 C Bronson 585 585 24 700 Commission 2 132 2 132 30 701 Sales 1 401 1 401 31 702 D Kaley 2 100 2 100

6 Interest 250 250

$23 969 $7 193 $16 776

Cash Payments Journal / List (extract)

Date Chq No Particulars Folio Bank A/cs Payable Sundries

20X3 Jul 1 11341 Purchases 762 762

2 11342 Motor vehicle 11 940 11 940 4 11343 Wages 707 707 7 11344 N Brooks 548 548 8 11345 Purchases 1 879 1 879 9 11346 Cartage 201 201

15 11347 Electricity 438 438 19 11348 Drawings 308 308 22 1 1349 Rates & taxes 872 872 25 11350 Purchases 535 535 27 A/c keeping fee 29 29

$18 219 $548 $17 671

(b)

General Ledger Extract Bank

20X3 20X3 Jul 1 Balance b/d 12 842 Jul 31 Payments 18 219

31 Receipts 23 969 Balance c/d 18 592

36 811 36 811

Aug 1 Balance b/d 18 592 (c)

Bank Reconciliation as at 31 July 20X3

Credit balance as per bank statement 18 564 Add: Outstanding deposit 2 100

31.7.20X3 2 100 ______ 20 664

Less: Unpresented cheques 2 072 11341 762 11347 438 11349 872 ______


Solution 9.8 (a) Books of S Small

General Ledger (extract) Bank

20X5 20X5 Mar 1 Balance b/d 453 Mar 31 Payments 4 955

31 Receipts 4 397 Petty cash 250 Interest 450 Bank charges 20 Balance c/d 75

5 300 5 300

Chapter 9: Bank Reconciliations

169

Apr 1 Balance b/d 75 (b)

Bank Reconciliation as at 31 March 20X5

$ Debit balance as per bank statement (370) Plus: Outstanding deposit 917

31.3.20X5 917 ____ 547

Less: Unpresented cheques 472 18217 238 18220 61 18221 173 ___

Debit balance as per bank account $75

Solution 9.10 (d) Debit $6 108

Solution 9.12 Books of Bryden & Co

(a) General Ledger (extract) Bank

20X8 20X8 Jul 1 Balance b/d 80 906 Jul 31 Payments 83 417

31 Receipts 33 734 Insurance 819 Dividend income 475 Dishonour fee 40 Interest 750 Bank charges 17 Dishonoured cheque (1 638) Balance c/d 29 934

114 227 114 227

Aug 1 Balance b/d 29 934 (b)

Bank Reconciliation as at 31 July 20X8

Credit balance as per bank statement 37 352 Add: Outstanding deposit 1 187

31.7.20X8 1 187 ______ 38 539

Less: Unpresented cheques 8 605

05741 688 05747 1 101 05756 3 190 05758 876 05765 2 750 ______


Solution 9.14 Books of Backfight Industries

(a) General Ledger (extract) Bank

20X3 20X3 Aug 31 Receipts 5 969 Aug 1 Balance b/d 797

Red Spot Realty 235 31 Payments 4 613 Receipts error (384) Payment error (289) Receipts error 348 Payment error 298 Drawings 420 Bank charges 22 Interest 6 Balance c/d 301

6 168 6 168

Sep 1 Balance b/d 301 (b)

Bank Reconciliation Statement as at 31 August 20X3

$


170

Debit balance as per bank statement (1 597) Add: Outstanding deposit 2 661 31/5/20X3 2 661 ______

1 064 Less: Unpresented cheques 763

04332 94 04335 386 04360 187 04361 _96 ______

Debit balance as per bank account $301

Solution 9.16 Books of C R Davren

(a)

(extract) Cash receipts journal / list (extract) Cash payments journal / list

Date $ Date $

20X8 20X8

May 1 Receipts 6 373 May 2 0756 1 595

6 Receipts 934 4 0757 27 323

11 Receipts 972 7 0758 438

18 Receipts 819 0759 977

21 Receipts 3 817 0760 1 295

25 Receipts 692 14 0761 900

28 Receipts 2 667 17 0762 1 811

31 Receipts 593 20 0763 3 991

5 Investment interest 375 27 0764 2 004

13 Dividends 238 31 0765 1 375

17 480 7 Deli insurance 410

26 Transaction fees 59

42 178

(b)

General Ledger (extract) Bank

20X8 20X8 May 1 Balance b/d 40 453 May 31 Payments 41 709

31 Receipts 16 867 Insurance 410 Interest 375 Transaction fees 59 Dividends 238 Balance c/d 15 755

57 933 57 933

Jun 1 Balance b/d 15 755 (c)

Bank Reconciliation Statement as at 3l May 20X8

Credit balance as per bank statement 18 835 Add: Outstanding deposit 593 31.5.20X8 593 ______ 19 428 Less: Unpresented cheques 4 303

0741 344 0747 551 0756 1 595 0758 438 0765 1 375

Plus: Error to be adjusted by bank 630 Cheque No: 0760 shown as 1 925 should be 1 295 ______


Solution 9.18 (a) Credit $7 980

Documents

3rd Ed Textbook Solutions Even Numbers