3rd Ed Textbook Solutions Even Numbers

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
(b)
A business pays rent to building owner
(c)
A customer buys goods and agrees to pay later
(d)
the stores manager informs the accounting department that
some inventory has been damaged or destroyed
(e)
the business receives a cheque from a customer
(f)
the business makes a payment to the owner of the business
(g)
goods are returned by a debtor (accounts receivable)
Copy of cash receipt

Cheque butt
Copy of tax invoice
Internal memorandum
Cheque butt
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
(ii)
cash paid to a creditor (accounts payable)
(iii)
goods returned by a debtor (accounts receivable)
(iv)
cash received from a debtor (accounts receivable)
Copy of tax invoice

Cheque butt
Copy of adjustment note
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
buys a motor vehicle valued at $25 000
pays their telephone account valued at
$850
buys stock valued at $3 000
sells goods valued at $35 000
Total payable to ATO
GST impact
$2 500 paid
85 paid
300
(3 500)
(615)
paid
collected
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
(b)
accounts payable
(c)
inventory
(d)
GST collected
(e)
capital
(f)
(g)
(h)
(i)
drawings
income
expense
mortgage
(j)
profit
(k)
bank overdraft
Amounts owing by customers

Amounts owing to suppliers
Goods purchased for resale by the business
GST on sales collected by the business and payable to the ATO
Net value of assets (less liabilities) introduced by the owner to the
business
Amounts (or assets) taken by the owner for their own personal use
earnings of the business such as sales and fees received
costs of earning income such as wages and advertising expenses
Amount owning to a lender in relation to borrowing made by the
business to acquire an asset (e.g. land and buildings)
the business makes a profit when the income earned is greater
than the expenses
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
(b)
sales
(c)
dividends received
(d)
cash
(e)
shares in other companies
(f)
rent
(g)
loan from ACB Finance
Company
(h)
repairs and maintenance
(i)
equipment
(j)
bank overdraft
(k)
interest received
(l)
sales commission paid
(m)
salaries
(n)
commission received
(o)
bank charges
Expense
Income
Income
Asset
Asset
Expense
Liability
Expense
Asset
Liability
Income
Expense
Expense
Income
Expense
iii
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
(b)
materiality in financial statements
(c)
accounting for the acquisition of assets
(d)
profit and loss or other operating
statements
(e)
statement of cash flows
AASB116 (AAS 4)
AASB1031 (AAS 5)
AASB116 (AAS21)
AASB101 (AAS 1)
AASB107 (AAS 28)
Solution 1.48
The four principal qualitative characteristics are understandability, relevance, reliability and compatibility.
No examples provided.
Solution 1.50
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.
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
(a)
Cash
Inventory
A/C Receivable
(b)
(c)
(d)
Plant & mach

Inventory
Cash
Petty cash
Motor vehicle
A/C Receivable
Inventory
Computer
Equipment
Furniture & fittings
Land & bldg
=
8 000
9 000
5 000
$22 000
22 000
14 000
2 400
500
$38 900
42 800
14 300
9 200
$66 300
Liabilities
A/c payable
$1 500
+
+
Proprietorship
Capital
______
$1 500
=
A/c payable
=
Bank o/d
_____
$3 700
$5 700
______
$5 700
+
+
Bank o/d
$11 300
18 200
147 000
$192 500
Mortgage
45 000
_______
$56 300
Solution 2.6
(a) OE increases $8 400
(c) OE increases $7 900
(e) OE decreases $18 500
(g) OE decreases $1 600
(b)
(d)
(f)
(h)
______
$20 500
$3 700
27 300
$20 500
Capital
$35 200
_______
$35 200
Capital
$60 600
______
$60 600
Capital
$136
200
_______
$136
200
OE decreases $5 200
OE increases $10 000
OE increases $1 800
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
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. Owners 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
Inventory
Sundry debtors
Cash at bank
Solution 2.12
Current Liabilities
Bank overdraft
A/C payable
GST Collected
Solution 2.14
Current Assets
Petty cash
Inventory
GST Paid
Solution 2.16
Current Assets
Cash at bank
Petty cash
Non-current Liabilities
Loan from mother
Mortgage on Warehouse buildings
Non-current Assets
Motor vehicles
Plant & machinery
Current Assets
A/C receivable
Petty cash
Inventory
Non-current Assets
Premises
Current Liabilities
Bank overdraft
GST collected
Expenses
Rates & taxes
Advertising
Interest on bank overdraft
Electricity
Telephone
Non-current Assets
Warehouse buildings
Factory machinery
Shares in CIQ Ltd
Current Liabilities
A/C payable
GST collected
Owners Equity
Drawings
Capital
Income
Fees received
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
30
Accounts receivable
30.1
A Dove
30.2
R Sparrow
30.3
D Magpie
Non-current liabilities
300
Mortgage on premises
Owners Equity
400
Capital
Non-current assets
100
Premises
110
Plant & machinery
120
Computer equipment
130
Goodwill
Liabilities
Current liabilities
200
Accounts Payable
200.1 A Blue
200.2
T Ongue
200.3
L Izard
220
GST collected
Income
500
510
Sales
Interest received
Expenses
600
610
620
630
640
650
660
Cost of goods sold

Stationery
Telephone
Electricity
Bank charges
Rent
Salaries & wages
Solution 2.20
(a)
(c)
(e)
Current assets
Non-current assets
Revenue/income
Solution 2.22
Assets
1
*Cash
*Office furniture
(b)
(d)
(f)
=
$15 000
$10 000
$25 000
*Cash
Office furniture
*GST paid
*Inventory
$4 000
$10 000
$1 000
$10 000
$25 000
Cash
*Office furniture
GST paid
Inventory
*A/c receivable
$4 000
$4 000
$1 000
$10 000
$6 600
$25 600
Current liabilities
Current assets
Non-current liabilities (probably)
Liabilities
Owners Equity
*Capital
$25 000
Capital
$25 000
Capital
$25 000
$25 000
*GST collected
$600
$600
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
2.7.20X5 Bank
$5 000 =
Liabilities
Owners
Equity
Capital
$5
000
Revenue
Expenses
15.7.20X5 *Bank
600
*GST paid
*Inventory
400
4 000 =
Capital
+
$5 000
5 000
$5
000
Solution 2.30
Assets
4.5.20X9 Inventory
Liabilities
$15
000 =
Owners
Equity
+
$15
Capital
000
Revenue
Expenses
11.5.20X9 *Inventory 22 000

*GST paid
*Accounts
700 = Payable
7 700 + Capital 15 000
$22
$15
700 =
$7 700 +
000
Accounts
3 410 = Payable
15.5.20X9 *Bank
*Inventory 19 900
GST paid
7 700 + Capital 15 000 + *Sales
*GST
collected
700
$24
010 =
3 100 *COGS
2 100
310
$15
000 +
$8 010 +
$3 100
$2 100
Solution 2.32
Assets
=
*Motor
$23
4.1.20X3 Vehicle
000 =
Motor
11.1.20X3 Vehicle
*Accounts
23 000 = Payable
1 430
*GST paid
*Mowing
equipment
Motor
15.1.20X3 Vehicle
Motor
21.1.20X3 Vehicles
1 300
$24
430 =
(b)
Revenue
Expenses
Capital 23 000
130
1 430 + Capital 23 000 + *Fees
*GST
collected
1 300
990
$25
420 =
135
$23
000
$1 430 +
$23
000 +
1 430 + Capital 23 000 + Fees
GST
collected
1 300 =
935
$25
370 =
credit;
900
90
$1 520 +
Accounts
23 000 = Payable
GST paid
Mowing
equipment
*Bank
Owners
Equity
+
$23
*Capital
000
130
Accounts
23 000 = Payable
GST paid
Mowing
equipment
*Bank
Solution 2.34
(a)
debit;
Liabilities
$900
900
*Petrol
expenses
90
$23
000 +
$1 520 +
(c)
credit;
(d)
debit;
$900
(e)
50
$50
debit;
(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:
Type of
Effect of
Transaction
Accounts Affected
Account
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
Bank
Asset
Decreased
Credit bank
Received interest income
Bank
Asset
Increased
Debit bank
Interest received
Revenue
Increased
Credit interest received
Received payment from customer who previously bought goods on credit
Bank
Asset
Increased
Debit bank
Accounts receivable
Asset
Decreased
Credit accounts receivable
Paid telephone account
Telephone
Expense
Increased
Debit telephone
GST paid
Asset
Increased
Debit GST paid
Bank
Asset
Decreased
Credit bank
Received rent from tenant
Bank
Asset
Increased
Debit bank
Rent received
Revenue
Increased
Credit rent received
GST collected
Liability
Increased
Received invoice from supplier
Inventory
Asset
Increased
Debit inventory
GST paid
Asset
Increased
Debit GST paid
Accounts payable
Liability
Increased
Credit accounts payable
Paid supplier for earlier credit purchase
Accounts payable
Liability
Decreased
Debit accounts payable
Bank
Asset
Decreased
Credit bank
Solution 2.38
Effect of
Transaction
Accounts affected
Type of account
transaction
Owner contributed cash and motor vehicles on commencement of business
Bank
Asset
Increase
Motor vehicle
Asset
Increase
Capital
Owners equity
Increase
Purchased inventory on credit from ABC Supplies
Inventory
Asset
Increase
GST paid
Asset
Increase
A/C payable ABC Sup Liability
Increase
Paid rent on commercial premises to J H Lookout
Rent
Expense
Increase
GST paid
Asset
Increase
Bank
Asset
Decrease
Paid wages to staff
Wages
Expense
Increase
Bank
Asset
Decrease
Sold goods for cash to C Ustomer
Double entry required

Debit Bank
Debit Motor vehicle
Credit Capital
Debit Inventory
Debit GST paid
Credit A/C payable ABC Sup
Debit Rent
Debit GST paid
Credit Bank
Debit Wages
Credit Bank
Bank
Asset
Increase
Sales
Income
Increase
GST collected
Liability
Increase
Cost of goods sold
Expense
Increase
Inventory
Asset
Decrease
Returned goods to ABC supplies because they were faulty
A/C payable ABC Sup Liability
Decrease
Inventory
Asset
Decrease
GST paid
Asset
Decrease
Received interest from the bank
Bank
Asset
Increase
Interest Received
Income
Increase
Sold goods on credit to N One
A/C Receivable N One Asset
Increase
Sales
Income
Increase
GST collected
Liability
Increase
Cost of goods sold
Expense
Increase
Inventory
Asset
Decrease
Paid electricity to Energy Suppliers
Electricity
Expense
Increase
GST paid
Asset
Increase
Bank
Asset
Decrease
Received payment from N One ( a customer)
Bank
Asset
Increased
A/C Receivable N One Asset
Decrease
Purchase a new motor vehicle for sales deliveries on credit from P Dutton Motors
Motor vehicle
Asset
Increase
GST paid
Asset
Increase
A/C Payable P Dutton
Liability
Increase
Debit Bank
Credit Sales
Debit COGS
Credit Inventory
Debit A/C payable SBC Sup
Credit Inventory
Credit GST paid
Debit Bank
Credit Interest received
Debit A/C Rec. N One
Credit Sales
Debit COGS
Credit Inventory
Debit Electricity
Debit GST paid
Credit Bank
Debit bank
Credit A/C Receivable N One
Debit Motor vehicle
Debit GST paid
Credit A/C payable P Dutton
Solution 2.40
Assets
Inventory
Cash at bank
J Jones
Balance Sheet as at 30 June 20X5
Liabilities
15 000
10 000
25 000 Owners equity
Capital
______
$25 000
25 000
25 000
$25 000
Solution 2.42
Assets
Inventory
A/cs receivable
Petty cash
H Smith
$
$
Liabilities
8 300
Bank overdraft
16 400
Owners equity
700
25 400 Capital
1 300
1 300
24 100
24 100
$25 400
$25 400
Solution 2.44
Assets
Current
Inventory
Sundry debtors
D Leamey
Balance Sheet as at 30 September 20X7
$
$
Liabilities
Current
36 690
Sundry creditors
11 630
Bank overdraft
16 130
18 890
Petty cash
600
GST collected
2 100
48 920
Non-current
Buildings
Motor vehicles
37 120
Non-current
Mortgage
40 000
243 600
34 600
40 000
Owners equity
Capital
278 200
250 000
________
$327 120
250 000
$327 120
Solution 2.46
J Archer
Balance Sheet as at 31 August 20X6
$
Current Assets
Accounts receivable
Cash at bank
66 870
15 550
82 420
Non-current Assets
Factory buildings
Computer equipment
Shares in QP Ltd
145 000
11 220
14 380
170 600
253 020
Total Assets
Current Liabilities
Accounts payable
GST collected
23 140
1 050
24 190
Mortgage
45 000
45 000
Total Liabilities
Net Assets
__69 190
$183 830
Owners Equity
Capital
183 830
$183 830
Solution 2.48
H Lawson
Balance Sheet as at 31 March 20X5
$
Current Assets
Inventory
Accounts receivable
GST paid
Cash at bank
16 490
24 330
320
7 100
48 240
Non-current Assets
Land & buildings
Motor vehicles
Investment in Kleen Water Company
247 630
11 210
28 200
40 000
327 040
375 280
Total Assets
Current Liabilities
GST collected
2 350
Mortgage (1 years payments)

Accounts payable
10 000
12 930
25 280
Mortgage (4 years payments)
40 000
40 000
Total Liabilities
Net Assets
__65 280
$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
Interest received
Total income
Less Expenses
Advertising
Wages
Rent
Electricity
Telephones
Total Expenses
Net profit
285 000
1 200
286 200
15 000
92 550
21 610
960
1 155
131 275
154 925
CHAPTER 3
SERVICE INDUSTRY ACCOUNTING

GENERAL JOURNAL, GENERAL
LEDGER, TRIAL BALANCE AND
INTRODUCTION TO FINANCIAL
REPORTS
Solution 3.2
(a)
Date
20X3
Sep 1
General Journal of S Ard

Particulars
Bank
Capital S Ard
Cash introduced as capital
Office supplies
GST paid
Accounts payable W Onder
Office supplies bought on credit. Refer tax invoice no: 7767
Bank
Fees income
GST collected
Fees received for cash. Refer receipt no: 0001
Folio
125
455
767
135
305.1
125
520
315
GJ1
Credit
$
Debit
$
30 000
30 000
2 500
250
2 750
24 200
22 000
2 200
(b)
General Ledger of S Ard
Bank
20X3
Sep 1
3
Capital
Fees income
GJ1
GJ1
125
30 000
24 200
54 200
GST paid
20X3
Sep 2
GJ1
135
250
Accounts Payable W Onder

20X3
Sep 2
Office supplies
Capital S Ard
20X3
Sep 1
Fees Income
20X3
Sep 3
17
305.1
GJ1
2 750
455
Bank
GJ1
30 000
520
Bank
GJ1
22 000
Office Supplies
20X3
Sep 2
GJ1
767
2 500
GST collected
20X3
Sep 3
315
Bank
GJ1
2 200
(c)
Date
20X3
Sep 1
3
Particulars
General Ledger of S Ard

Bank
Folio
Capital
Fees income
GJ1
GJ1
Debit
Credit
30 000
24 200
30 000 Dr
54 200 Dr
GST paid
Date
20X3
Sep 2
Date
20X3
Sep 2
Particulars
Folio
Particulars
GJ1
Accounts Payable W Onder
Folio
Office supplies
Debit
Credit
250
Debit
GJ1
Particulars
Folio
Bank
Debit
GJ1
Credit
Folio no: 305.1

Balance
2 750
2 750 Cr
Credit
Folio no: 455

Balance
30 000
Fees Income
Date
20X3
Sep 3
Particulars
Folio
Bank
Debit
GJ1
Credit
22 000
Office Supplies
Date
20X3
Sep 2
Particulars
Folio
GJ1
18
Debit
2 500
Folio no: 135

Balance
250 Dr
Capital S Ard
Date
20X3
Sep 1
Folio no: 125

Balance
Credit
30 000 Cr
Folio no: 520

Balance
22 000 Cr
Folio no: 767

Balance
2 500 Dr
Chapter 3: Service Industry Accounting
GST collected
Date
20X3
Sep 3
Particulars
Folio
Bank
Debit
Folio no: 315

Balance
Credit
GJ1
2 200
2 200 Cr
Solution 3.4
Trial Balance
$
10 000
3 000
5 000
700
8 000
3 900
4 000
3 000
600
4 150
400
500
?
3 000
460
320
670
Land and buildings

Investment in National Ltd
J Kelso (accounts receivable)
Wages
Fees income
Shop fittings
Motor vehicle
R Cohen (accounts payable)
GST paid
GST collected
Telephone
Repairs and maintenance
Capital
Loan from A Friend
Rent income
Electricity
Advertising
Debit
$
10 000
3 000
5 000
700
Credit
$
8 000
3 900
4 000
3 000
600
4 150
400
500
10 480
3 000
460
320
670
29 090
29 090
Solution 3.6
Enter the following items in the appropriate column of the Trial Balance:
Account
$
450 000
65 000
245 500
4 000
18 000
1 000
12 000
36 400
122 000
6 000
44 600
17 000
?
5 000
60 000
130 000
91 200
7 100
4 800
18 200
23 100
Capital
Drawings
Fees income
Interest income
Rent income
Petty cash
Bank (overdraft)
W Morgan (account receivable)
Shares in public company
GST paid
Motor vehicles
Office furniture & equipment
Land & buildings (the difference)
F Jones (account payable)
Mortgage on land & buildings
Computer equipment
Salaries and wages
Photocopying & fax charges
Telephone
GST collected
Building maintenance
Total
19
Debit
$
Credit
$
450 000
65 000
245 500
4 000
18 000
1 000
12 000
36 400
122 000
6 000
44 600
17 000
264 500
5 000
60 000
130 000
91 200
7 100
4 800
18 200
23 100
812 700
812 700
Solution 3.8
(a)
Date
20X6
Aug 1
12
18
22
24
General Journal of O Zone

Particulars
Folio
Bank
Motor Vehicle
Computers
Capital O Zone
Assets introduced at commencement
Bank
GST collected
Service revenue
Received cash for services given. Refer cash receipt
no: 0001
Office supplies
GST paid
Accounts payable J Pot
Office supplies bought on credit. Refer tax invoice no: 6914
Accounts receivable H Ortico
GST collected
Service revenue
Sent invoice for services given. Refer tax invoice no: 0001
Office supplies
GST paid
Bank
Office supplies bought for cash. Refer cheque no: 801
Office supplies
GST paid
Office supplies returned. Refer credit note: 717
Bank
Received payment of account. Refer receipt no: 1002
(b)
125
225
235
455
Debit
$
16 000
25 400
12 000
53 400
125
315
507
6 600
767
135
305.1
9 500
950
115.1
315
507
4 400
767
135
125
2 500
250
600
6 000
10 450
400
4 000
2 750
305.1
767
135
770
125
115.1
4 400
700
70
General Ledger of O Zone

Accounts Receivable H Ortico
20X6
GJ1
4 400
Aug 24 Bank
20X6
Aug 12 Service revenue
GJ1
Credit
$
4 400
115.1
GJ1
4 400
20X6
Aug 1 Capital
2 Service revenue
24 Accounts receivable H Ortico
GJ1
GJ1
GJ1
Sep 1 Balance
b/d
20X6
Aug 7
18
Sep 1

Bank
GJ1
GJ1
Balance
b/d
4 400
Bank
20X6
16 000
Aug 18
6 600
31
4 400
27 000
24 250
GST paid
20X6
950 Aug 22
250
31
1 200
1 130
Motor Vehicle
20X6
Aug 1
Capital
GJ1
Capital
GJ1
125
Office supplies
Balance
GJ1
c/d
2 750
24 250
27 000
135
Balance
GJ1
c/d
70
1 130
1 200
225
25 400
Computers
20X6
Aug 1
4 400
12 000
20
235
20X6
Aug 22
31
Accounts Payable J Pot

20X6
GJ1
770
Aug 7
Office supplies
c/d
9 680
10 450
Sep 1
Balance b/d
Office supplies
Balance
GST collected
20X6
Aug 2
12
305.1
GJ1
10 450
9 680
315
Bank
Capital O Zone
20X6
Aug 1 Assets

Bank
GJ1
GJ1
Sep 1
Balance
b/d
GJ1
GJ1
600
400
1 000
455
GJ1
Service Revenue
20X6
Aug 2 Bank
12 Accounts receivable H Ortico
20X6
Aug 7
18
10 450
Office Supplies
20X6
9 500 Aug 22 Accounts payable J Pot
2 500
31 Balance
12 000
11 300
53 400
507
GJ1
GJ1
6 000
4 000
10 000
767
GJ1
c/d
700
11 300
12 000
(c)
Date
20X6
Aug 12
24
General Ledger of O Zone

Accounts Receivable H Ortico
Particulars
Folio
Service revenue
Bank
GJ1
GJ1
Debit
Credit
Folio no: 115.1

Balance
4 400
4 400 Dr
Nil
Credit
Folio no: 125

Balance
4 400
Bank
Date
20X6
Aug 1
2
18
24
Particulars
Folio
Capital
Service revenue
Office supplies
GJ1
GJ1
GJ1
GJ1
Debit
16 000
6 600
16 000 Dr
22 600 Dr
19 850 Dr
24 250 Dr
2 750
4 400
GST paid
Date
20X6
Aug 7
18
22
Particulars
Folio

Bank
GJ1
GJ1
GJ1
Debit
950
250
70
Motor Vehicle
Date
20X6
Aug 1
Particulars
Folio
Capital
GJ1
21
Folio no: 135

Balance
Credit
Debit
25 400
Credit
950 Dr
1 200 Dr
1 130 Dr
Folio no: 225
Balance
25 400 Dr
Computers
Date
20X6
Aug 1
Date
20X6
Aug 7
22
Particulars
Folio
Capital
Debit
GJ1
Particulars
Accounts Payable J Pot

Folio
Office supplies
Office supplies
Credit
12 000
Debit
GJ1
GJ1
12 000 Dr
Credit
10 450
770
GST collected
Date
20X6
Aug 2
12
Particulars
Folio
Bank
Debit
Credit
GJ1
GJ1
600
400
Capital O Zone
Date
20X6
Aug 1
Particulars
Folio
Assets
Debit
GJ1
Particulars
Folio
Bank
Debit
GJ1
GJ1
Particulars
Folio

Bank
Debit
GJ1
GJ1
GJ1
(d)
Bank
GST paid
Motor vehicle
Computers
GST collected
Capital O Zone
Service revenue
Office supplies
Credit
Folio no: 507

Balance
6 000
4 000
6 000 Cr
10 000 Cr
Credit
Folio no: 767

Balance
700
Credit
$
9 680
1 000
53 400
10 000
11 300
$74 080
22
600 Cr
1 000 Cr
53 400 Cr
9 500
2 500
Debit
$
24 250
1 130
25 400
12 000
Folio no: 315

Balance
53 400
Trial Balance of O Zone

as at 31 August 20X6
Particulars
10 450 Cr
9 680 Cr
Folio no: 455

Balance
Office Supplies
Date
20X6
Aug 7
18
22
Folio no: 305.1

Balance
Credit
Service Revenue
Date
20X6
Aug 2
12
Folio no: 235

Balance
$74 080
9 500 Dr
12 000 Dr
11 300 Dr
Solution 3.10
(a)
General Journal of G Barclay
Date
Particulars
20X4
Jul 1 Bank
Motor vehicle
Capital G Barclay
Capital introduced at commencement
3 Accounts receivable M Cole
GST collected
Service revenue
Sent invoice for services given. Refer tax invoice no: 0001
5 Plumbers supplies
GST paid
Bank
Plumbers supplies purchased for cash. Refer cheque no: 411
7 Bank
GST collected
Service revenue
Received cash for services given. Refer cash receipts no: 101
12 Advertising
GST paid
Accounts payable Lantern Publishing
Invoice received for advertising invoice no: 872
15 Bank
Rent income
GST collected
Rent income received. Refer cash receipt no: 102
18 Plant
GST paid
Accounts payable CCD Hardware
Purchased plant on credit. Refer CCD Hardware tax invoice no: 7198
23 Accounts payable Lantern Publishing
GST paid
Advertising
Credit note no: 104 received for advertising overcharge
28 Accounts payable CCD Hardware
GST paid
Plant
Received credit note no: 386 for overcharge
Folio
125
225
455
Debit
$
6 000
18 700
GJ1
Credit
$
24 700
115.1
315
507
330
630
135
125
150
15
125
315
507
770
710
135
305.1
270
27
125
510
315
495
30
300
165
70
700
297
450
45
215
135
305.2
2 140
214
305.1
135
710
77
305.2
135
215
88
2 354
7
70
8
80
(b)
Accounts Receivable M Cole
20x4
Jul 3
Service Revenue
GJ1
330
20X4
Jul 1
7
15
Capital
Service revenue
Rent income
GJ1
GJ1
GJ1
Aug 1
Balance
b/d
Bank
20X4
6 000
Jul 5
770
31
495
7 265
7 100
GJ1
GST paid
20X4
15 July 23
20X4
Jul 5
12
18
Aug 1
Bank
Accounts payable Lantern

GJ1
Publishing
Accounts payable CCD Hardware GJ1
Balance
b/d
115.1
125
Plumbers supplies
Balance
GJ1
c/d
7 265
135
27
28

GJ1
Publishing
214
256
241
31
Balance
23
165
7 100
c/d
7
8
241
256
20X4
Jul 18
Aug 1
Balance
b/d
Plant
20X4
2 140 Jul 28
31
2 140
2 060
215
Balance
GJ1
c/d
Motor Vehicle
20X4
Jul 1
20X4
Jul 23
31
20X4
Jul 28
31
Capital
Advertising
Balance
Plant
Balance
GJ1
225
18 700
Accounts Payable Lantern Publishing

20X4
GJ1
77 Jul 12
Advertising
c/d
220
297
Aug 1 Balance
Accounts Payable CCD Hardware
20X4
GJ1
88
Jul 18 Plant
C/d
2 266
2 354
Aug 1 Balance
GST collected
20X4
July 3
7
15
Accounts receivable M Cole

Bank
Bank
Service Revenue
20X4
Jul 3 Accounts receivable M Cole
7 Bank
Rent Income
20X4
July 15
305.1
GJ1
297
b/d
297
220
305.2
GJ1
2 354
b/d
2 354
2 266
315
Capital G Barclay
20X4
Jul 1 Assets
GJ1
GJ1
GJ1
20X4
Jul 12
Aug 1
Bank
GJ1

Publishing
GJ1
Balance
b/d
30
70
45
145
455
GJ1
24 700
507
GJ1
GJ1
300
700
1 000
510
Bank
GJ1
Plumbers Supplies
20X4
Jul 5
80
2 060
2 140
450
630
150
Advertising
20X4
Jul 23
270
31
270
200
24
710
Publishing
Balance
GJ1
c/d
70
200
270
(c)
Trial Balance of G Barclay as at 31 July 20X4

Debit
$
Accounts receivable M Cole
330
Bank
7 100
GST paid
241
Plant
2 060
Motor vehicle
18 700
Accounts payable Lantern Publishing
GST collected
Capital G Barclay
Service revenue
Rent income
Plumbers supplies
150
Advertising
200
28 781
Particulars
Solution 3.12
(a)
General Journal of H Ma
Date
Particulars
20X4
April 1 Motor vehicle
Bank
Capital
3 Accounts receivable T Poulos
Courier fees income
GST collected
Invoice no: 421 sent to T Poulos
4 Motor vehicle expenses
GST paid
Accounts payable D Brooks
Invoice 889 received from D Brooks
11 Courier fees income
GST collected
Accounts receivable T Poulos
Credit note no: 188 sent to T Poulos
15 Accounts payable D Brooks
Motor vehicle expenses
GST paid
Received credit note no: 34 from D Brooks
16 Bank
Refer receipt no: 201 for account paid in full
17 Advertising
GST paid
Accounts payable Daily Planet
Invoice no: 6819 received for advertising
Accounts receivable P Allan
Courier fees income
GST collected
Invoice no: 422 sent to P Allan
20 Accounts payable Daily Planet
Advertising
GST paid
Credit note no: 1318 received for overcharge
21 Motor vehicle expenses
GST paid
Bank
Paid cheque no: 2964 for motor vehicle expenses
23 Accounts receivable P Allan
Courier fees income
GST collected
Invoice no: 423 sent to P Allan
27 Electricity
25
Folio
225
125
455
Credit
$
220
2 266
145
24 700
1 000
450
28 781
Debit
$
30 000
10 000
40 000
115.1
520
315
616
775
135
305.1
240
24
520
315
115.1
200
20
305.1
775
135
66
125
115.1
396
710
135
305.2
390
39
115.2
520
315
1 540
305.2
710
135
77
775
135
125
115.2
520
315
750
Credit
$
560
56
264
220
60
6
396
429
1 400
140
70
7
300
30
330
3 960
3 600
360
330
GST paid
Accounts payable Freetown Power Supply
Invoice no: 13174 received for electricity
135
305.3
33
363
(b)
20X4
April 3
General Ledger of H Ma
Accounts Receivable T Poulos
20X4
GJ1
616 April 11 Courier fees income
16 Bank
616
Courier fees income
Accounts Receivable P Allan

20X4
April 17
23
Courier fees income

Courier fees income
GJ1
GJ1
Capital
GJ1
GJ1
May 1
Balance
b/d
20X4
April 4
17
21
27
May 1

Bank
Accounts payable Freetown
Power Supply
Balance
GJ1
GJ1
GJ1
GJ1
b/d
20X4
April 15
30
20X4
April 20
30
20X4
April 11
30
Capital
GJ1
220
396
616
Folio no: 115.2
10 000
396
10 396
10 066
Folio no: 125
20X4
April 21
30
GST paid
20X4
24
April 15
39
20
30
30
33
126
113

Balance
GJ1
c/d
330
10 066
10 396
Folio no: 135

Balance
GJ1
GJ1
c/d
Balance
b/d
6
7
113
126
May 1
Motor Vehicle
20X4
April 1
GJ1
GJ1
1 540
3 960
5 500
Bank
20X4
April 1
16
Folio no: 115.1
Folio no: 225
30 000
Accounts Payable D Brooks

20X4
GJ1
66
April 4 Motor vehicle expenses
c/d
198
264
May 1 Balance
Folio no: 305.1
Accounts Payable Daily Planet

20X4
GJ1
77 April 17 Advertising
c/d
352
429
May 1 Balance
Folio no: 305.2
Accounts Payable Freetown Power Supply

20X4
April 27 Electricity
Folio no: 305.3

Balance
Advertising
Balance

Balance
GJ1
c/d
GST collected
20X4
20
April 3
536
17
23
556
May 1
26
GJ1
264
b/d
264
198
GJ1
429
b/d
429
352
GJ1
363
Folio no: 315

GJ1
GJ1
GJ1
Balance
b/d
56
140
360
556
536
Capital
20X4
April 1
20X4
April 11
30
20X4
April 17
May 1

Balance
Courier fees income

20X4
GJ1
200
April 3
c/d
5 360
17
23
5 560
May 1
GJ1
Balance
b/d
Advertising
20X4
390 April 20
30
390
320
Folio no: 455

Assets
GJ1
Folio no: 520

GJ1
GJ1
GJ1
Balance
b/d
20X4
April 4
21
May 1
Accounts payable Freetown

Power Supply

Bank
Balance
GJ1
560
1 400
3 600
5 560
5 360
Folio no: 710

Balance
Electricity
20X4
April 27
40 000
GJ1
c/d
70
320
390
Folio no: 750
330
Motor Vehicle Expenses

20X4
GJ1
240
April 15 Accounts payable D Brooks
GJ1
300
30 Balance
540
b/d
480
Folio no: 775

GJ1
c/d
(c)
H Ma
Trial Balance as at 30 April 20X4
Folio
115.2
Bank
125
GST paid
135
Motor vehicle
225
305.1
305.2
Accounts payable Freetown Power Supply
305.3
GST collected
315
Capital
455
Courier fees income
520
Advertising
710
Electricity
750
775
27
Debit
5 500
10 066
113
30 000
Credit
198
352
363
536
40 000
5 360
320
330
480
46 809
46 809
60
480
540
Solution 3.13
(a)
Date
20X6
June 1
12
14
18
21
24
27
General Journal of A Gale

Particulars
Bank
Motor vehicle
Plant & equipment
Loan from Finance Co
Capital
Assets & liabilities introduced
Accounts receivable F Conway
c
GST collected
Recording sale on tax invoice no: 001
Rent
GST paid
Accounts payable R Stubbs
Rent of property. Refer tax invoice no: 386
Service income
GST collecetd account
Overcharge invoice no: 001. See credit note no: 001
Bank
Service income
GST collected
Cash sale. Refer receipt no: 101
GST paid
Bank
Cash paid for repairs. Refer cheque no: 601
General expenses
GST paid
Accounts payable C Richards
Purchase of laundry material. See tax invoice no: 762
Office furniture
Capital
Additional capital introduced. See voucher no: 1
General expenses
GST paid
Adjusting overcharge. Refer credit note no: 122
Advertising
GST paid
Accounts payable PBL Radio
Advertising account. See tax invoice no: 909
Bank
Payment of account. See cheque no: 602
Accounts receivable Apex Hotels
Service income
GST collected
Recording sale on tax invoice no: 002
Plant & equipment
GST paid
Accounts payable E Dawes
Purchased washing machine. See tax invoice no: 1649
Folio
125
225
220
410
455
Debit
$
10 000
45 000
90 000
GJ1
Credit
$
30 000
115 000
115.1
507
315
198
745
135
305.1
2 000
200
507
315
115.1
30
3
180
18
2 200
33
125
507
315
132
765
135
125
320
32
772
135
305.2
440
44
230
455
900
120
12
352
484
900
305.2
772
135
88
710
135
305.3
520
52
305.1
125
2 200
115.2
507
315
3 410
220
135
305.4
1 640
164
80
8
572
2 200
3 100
310
1 804
(b)
20X6
June 1
July 1
Service income
Balance
General Ledger of A Gale

Accounts Receivable F Conway
20X6
GJ1
198
June 4 Service income
30 Balance
198
b/d
165
28
Folio no: 115.1

GJ1
c/d
33
165
198
Accounts Receivable Apex Hotels

20X6
June 24
Service income
GJ1
3 410
Bank
20X6
June 1
6
July 1
20X6
June 2
7
9
18
27
July 1
Capital
Service income
Balance
GJ1
GJ1
10 000
132
Folio no: 125

20X6
June 7
21
30

Balance

Bank
GJ1
GJ1
GJ1
GJ1
GJ1
Balance
b/d
Capital
GST paid
20X6
200
June 14
32
30
44
52
164
492
484
GJ1
GJ1
Capital
GJ1

Balance
20X6
June 21
20X6
June 14
30
20X6
June 4
30
GJ1
c/d
8
484
492
Folio no: 220
90 000
1 640
91 640
Folio no: 225
45 000
Office Furniture
20X6
June 1
352
2 200
7 580
10 132
Folio no: 135
Motor Vehicles
20X6
June 1
GJ1
GJ1
c/d
10 132
7 580
b/d
Plant and Equipment

20X6
June 1
27
Folio no: 115.2
Folio no: 230
Capital
GJ1
Folio no: 305.1
Bank
Accounts Payable R Stubbs

20X6
GJ1
2 200 June 20 Rent paid
Accounts Payable C Richards
20X6
GJ1
88
June 9 General expenses
c/d
396
484
July 1 Balance
Folio no: 305.2
Accounts Payable PBL Radio

20X6
June 18 Advertising
Folio no: 305.3
Accounts Payable E Dawes

20X6
June 27 Plant & equipment
Folio no: 305.4
General expenses
Balance

Balance
GJ1
c/d
900
GST collected
20X6
3 June 1
337
6
24
29
GJ1
2 200
GJ1
484
b/d
484
396
GJ1
GJ1
572
1 804
Folio no: 315

Bank
Accounts receivable Apex
GJ1
GJ1
GJ1
18
12
310
Hotels
340
July 1
Balance

20X6
June 1 Capital
Capital
20X6
June 1
12
20X6
June 4
30

Balance
GJ1
c/d
Service income
20X6
30 June 1
3 370
6
21
Folio no: 410

GJ1
Assets & liabilities

Office furniture
GJ1
GJ1
115 000
900
115 900
Folio no: 507

Bank
Accounts receivable Apex
Hotels
GJ1
GJ1
GJ1
180
120
3 100
Balance
b/d
3 400
3 370
Advertising
20X6
June 18
GJ1
Folio no: 710
520
Rent Paid
20X6
June 2
Accounts payable E Stubbs
GJ1
Folio no: 745
2 000
Repairs & Maintenance
20X6
June 7
20X6
June 9
July 1
Bank
Balance
GJ1
30 000
Folio no: 455
3 400
July 1
340
337
b/d
Folio no: 765
320
General Expenses
20X6
GJ1
440 June 14
30
440
b/d
360
Folio no: 772

Balance
GJ1
c/d
(c)
A Gale
Trial balance as at 30 June 20X6
Folio
115.1
115.2
125
135
220
225
230
305.2
305.3
305.4
315
410
455
507
710
745
765
772

Accounts receivable Apex Hotels
Bank
GST paid
Plant & equipment
Motor vehicles
Office furniture
GST collected
Capital
Service income
Advertising
Rent paid
General expenses
30
Debit
165
3 410
7 580
484
91 640
45 000
900
Credit
396
572
1 804
337
30 000
115 900
3 370
520
2 000
320
360
152 379
152 379
80
360
440
Solution 3.14
Debit
$
2 600
14 000
Cash at bank
Inventory
Accounts payable J Smith
Motor vehicle
Loan from Candid Finance Co
GST paid
Capital
Credit
$
2 100*
28 000
10 000
500
45 100
33 000
45 100
* Account with error

Solution 3.15
Trial Balance of T Nguyen as at 7 September 20X7
Debit
$
Plant
60 000
Bank
44 000
Accounts payable L Paper
Capital T Nguyen
Fees income
Office supplies
5 000
109 000
Credit
$
5 000
60 000
44 000
109 000
Solution 3.16
Sara Bos Trial Balance as at 7 February 20X4
Debit
$
Bank
18 000
Accounts receivable P Raise
6 500
Accounts payable C Cumber
Capital Sara Bos
Fees income
Office supplies
13 000
37 500
* Account containing error
Credit
$
13 000
18 000
6 500*
37 500
Solution 3.17
Debit
$
Bank overdraft
Capital
Fees income
Premises
Office equipment
Interest expense
Plumbers supplies
Mortgage on premises
Donations
Delivery expenses
Electricity
Salaries & wages
Rent income
Shares in PMA Ltd
GST collected
Petty cash
Accounts receivable (A Brown)
Accounts payable (D Jones)
Credit
$
5 450*
80 515*
120 300*
125 500*
13 390
5 995*
7 820
37 750
390
950
450
20 800
12 000*
88 000
9 680
100
3 500*
266 895
* Accounts with errors
31
1 200
266 895
Solution 3.18
(a)
W Mason
Income Statement
for year ended 30 June 20X7
Revenue
Fees income
Expenses
Advertising
Electricity
Wages
29 000
1 800
590
8 200
Net Profit
10 590
18 410
(b)
Assets
Accounts receivable L Thompson
Bank
GST paid
Motor vehicle
900
19 000
1 400
27 000
W Mason
Balance sheet
as at 30 June 20X7
Liabilities
Accounts payable W Knox
GST collected
Loan from Shark Arm Ltd
1 800
4 200
14 000
20 000
Owners Equity
Capital
Net profit
48 300
9 890
18 410
28 300
48 300
48 300
(c)
W Mason
Balance Sheet
as at 30 June 20X7
Less
Assets
Accounts receivable L Thompson
Bank
GST paid
Motor vehicle
Total Assets
Liabilities
Accounts payable W Knox
GST collected
Loan from Shark Arm Ltd
Total Liabilities
Net assets
Owners Equity
Capital
Net profit
900
19 000
1 400
27 000
48 300
1 800
4 200
14 000
20 000
28 300
9 890
18 410
28 300
Solution 3.19
(a)
Souvla & Sons Surveyors
Income Statement
Revenue
Fees income
Interest income
Expenses
Insurance
Salaries & wages
Telephone
Postage
Net Profit
197 000
2 000
1 100
38 000
1 700
660
25 800
32
199 000
67 260
131 740
(b)
Assets
Accounts receivable G Stains
Bank
Petty cash
GST paid
Motor vehicles
Plant & equipment
Cash on fixed deposit

Balance Sheet
as at 30 June 20X8
Liabilities
1 760
Accounts payable D Note
8 600
GST collected
500
Owners Equity
2 800
88 000
Capital
24 000
Net profit
20 000
145 660
145 660
940
5 820
6 760
7 160
131 740
138 900
145 660
(c)
Balance Sheet
as at 30 June 20X8
Less
Assets
Accounts receivable G Stains
Bank
Petty cash
GST paid
Motor vehicles
Plant & equipment
Cash on fixed deposit
Total Assets
Liabilities
Accounts payable D Mote
GST collected
Total liabilities
Net Assets
Owners Equity
Capital
Net Profit
$
1 760
8 600
500
2 800
88 000
24 000
20 000
145 660
940
5 820
6 760
138 900
7 160
131 740
138 900
Solution 3.20
(a)
I Cleanem
Income Statement
Revenue
Sales
Commission income
Expenses
Advertising
Salaries & wages
Light & power
Telephone
General expenses
Interest expense
Net Loss
$
89 000
1 300
3 800
58 000
16 200
3 100
3 900
4 100
2 700
3 600
$
90 300
95 400
(5 100)
(b)
I Cleanem
Balance sheet
as at 30 June 20X7
Less
Assets
Accounts receivable Gosport Hotel
Premises
Plant & equipment
Motor vehicle
Total Assets
Liabilities
Accounts payable Gilbert Chemicals
GST collected
$
1 620
120 000
40 000
26 000
187 620
4 000
5 600
33
Loan from Snide Finance Company

Total Liabilities
Net Assets
Owners Equity
Capital
Net Loss
30 000
39 600
148 020
153 120
(5 100)
34
148 020
CHAPTER 4
RETAIL INDUSTRY ACCOUNTING

USING PERPETUAL & PERIODIC
INVENTORY
GENERAL JOURNAL,
GENERAL LEDGER, TRIAL BALANCE
AND INTRODUCTION TO
FINANCIAL REPORTS
Solution 4.2
(a)
Capital
Inventory
20 000
GJ1
Folio no: 110
Capital
Inventory
GJ1
Folio no: 455

20 000
(b)
Bank
Bank
Inventory
3 000
GJ1
GJ1
Folio no: 110
GST paid
300
Folio no: 135
Bank
Inventory
GJ1
Folio no: 125

3 300
(c)
GJ1
Inventory
5 000
Folio no: 110
Accounts payable K Cole
GJ1
GST paid
500
Folio no: 135
Accounts Payable K Cole

Inventory
43
Folio no: 305.1

GJ1
5 500
(d) includes (c) above

Inventory
GJ1
5 000
Balance
b/d
5 000
3 200
Folio no: 110

Balance
GJ1
c/d
GST paid
GJ1
500
Balance
b/d
500
320
Folio no: 135

Balance
Accounts Payable K Cole

Inventory
Balance
GJ1
c/d
1 800
3 200
5 000
1 980
3 520
5 500
GJ1
c/d
180
320
500
Folio no: 305.1
Inventory
GJ1
5 500
Balance
b/d
5 500
3 520
Solution 4.4
(a)
Inventory
Accounts payable J Kallis
Cost of goods sold
GJ1
GJ1
4 000
50
Balance
b/d
4 050
3 170
Folio no: 110

Cost of goods sold
Cost of goods sold
Drawings
Balance
GJ1
GJ1
GJ1
c/d
320
350
210
3 170
4 050
(b)
Cost of Good Sold
Inventory
Inventory
GJ1
GJ1
Balance
b/d
320
350
670
620
Folio no: 600
Inventory
Balance
GJ1
c/d
50
620
670
Solution 4.6
General Journal
Particulars
20X7
Jun 30
(a)
(b)
Cost of goods sold

Inventory
Adjusting inventory account to physical stocktake
Inventory
Cost of goods sold
Adjusting inventory account to physical stocktake
44
Debit
$
Credit
$
880
880
220
220
Chapter 4: Retail Industry Accounting using Perpetual Inventory
Solution 4.8
(a)
General Journal of R Stuart
Date
20X7
May 1
13
17
24
Particulars
GJ1
Folio
Bank
125
455
Capital
Cash introduced as capital at commencement
Inventory
GST paid
Accounts payable R Wood
Goods purchased on credit
Bank
GST collected
Sales
Goods sold for cash
Cost of goods sold
Inventory
Recording cost of goods sold
Inventory
GST paid
Bank
Goods purchased for cash
Accounts receivable F Han
GST collected
Sales
Goods sold on credit
Cost of goods sold
Inventory
Sales
GST collected
Bank
Return of goods from a cash sale
Inventory
Cost of goods sold
Recording cost of goods returned
Sales
GST collected
Return of goods sold on credit
Inventory
Cost of goods sold
110
135
305.1
Debit
$
22 000
22 000
1 000
100
1 100
125
315
505
880
600
110
480
110
135
125
1 430
143
80
800
480
1 573
115.1
315
505
935
600
110
510
505
315
125
80
8
110
600
48
505
315
115.1
110
600
Credit
$
85
850
510
88
48
120
12
132
72
72
(b)
20X7
May 3
9
17
24

Bank
Cost of goods sold
Cost of goods sold
June 1 Balance
20X7
May 13 Sales
June 1 Balance
General Ledger of R Stuart

Inventory
20X7
GJ1
1 000 May 6 Cost of goods sold
GJ1
1 430
13 Cost of goods sold
GJ1
48
31 Balance
GJ1
72
2 550
b/d
1 560
Accounts Receivable F Han
20X7
GJ1
935 May 24 Sales
31 Balance
935
b/d
803
45
Folio no: 110

GJ1
GJ1
c/d
480
510
1 560
2 550
Folio no: 115.1

GJ1
c/d
132
803
935
20X7
May 1
6
Capital
Sales
GJ1
GJ1
June 1
Balance
b/d
Bank
20X7
22 000 May 9
880
17
31
22 880
21 219
Folio no: 125

Inventory
Sales
Balance
GJ1
GJ1
c/d
GST paid
20X7
May 3
9

Bank
GJ1
GJ1
Folio no: 135
100
143
243
Accounts Payable R Wood

20X7
May 3 Inventory
20X7
May 17
24
31
Bank
Balance
GJ1
GJ1
c/d
1 573
88
21 219
22 880
GST collected
20X7
8
May 6
12
13
145
Folio no: 305.1

GJ1
1 100
Folio no: 315

Bank
GJ1
GJ1
80
85
Balance
b/d
165
145
165
June 1
Capital
20X7
May 1
20X7
May 17 Bank
24 Accounts receivable F Han
31 Balance
20X7
May 6
13
Inventory
Inventory
June 1
Balance
GJ1
GJ1
c/d
Folio no: 455

Bank
GJ1
Sales
20X7
80 May 6 Bank
120
13 Accounts receivable F Han
1 450
1 650
June 1 Balance
Cost of Goods Sold

20X7
GJ1
480 May 17 Inventory
GJ1
510
24 Inventory
31 Balance
990
b/d
870
22 000
Folio no: 505

GJ1
GJ1
b/d
800
850
1 650
1 450
Folio no: 600

GJ1
GJ1
c/d
48
72
870
990
(c)
Trial balance of R Stuart
as at 31 May 20X7
Debit
1 560
803
21 219
243
Inventory
Bank
GST paid
GST collected
Capital
Sales
Cost of goods sold
Credit
1 100
145
22 000
1 450
870
24 695
46
24 695
Solution 4.10
(a)
Date
20X5
May 1
11
13
16
19
22
27
General Journal of P Brock

Particulars
Inventory
Bank
Accounts receivable J Kirby
Office equipment
Capital
Bank
Received on account
Accounts receivable R Preston
GST collected
Sales
Cost of goods sold
Inventory
Rent expense
GST paid
Bank
Drew cheque for rent
Inventory
GST paid
Accounts payable G Poulos
Goods bought on credit
Sales
GST collected
Inventory
Cost of goods sold
Drawings
GST paid
Inventory
Goods withdrawn for personal use
GST paid
Inventory
Credit note received for overcharge
Drawings
Bank
Payment for daughters school fees
Wages
Bank
Drew cheque for casual wages
Folio
110
125
115.1
230
455
GJ1
Credit
$
Debit
$
17 000
5 000
1 200
3 400
26 600
125
115.1
700
115.2
315
505
539
600
110
294
745
135
125
1 200
120
110
135
305.1
1 770
177
505
315
115.1
110
11
700
49
490
294
1 320
1 947
121
110
600
66
460
135
110
187
305.1
135
110
110
460
125
600
740
125
375
66
17
170
10
100
600
375
(b)
20X5
May 1
11
13
Capital
Cost of goods sold
Jun 1
Balance
General Ledger of P Brock

Inventory
20X5
GJ1
17 000
May 4 Cost of goods sold
GJ1
1 770
16 Drawings
GJ1
66
19 Accounts payable G Poulos
31 Balance
18 836
b/d
18 272
47
Folio no: 110

GJ1
GJ1
GJ1
c/d
294
170
100
18 272
18 836
20X5
May 1
Capital
Jun 1
Balance
Accounts Receivable J Kirby

20X5
GJ1
1 200
May 2 Bank
13 Sales
31 Balance
1 200
b/d
379
Accounts Receivable R Preston
20X5
May 4
Sales
GJ1
Bank
Capital
GJ1
GJ1
5 000
700
Jun 1
Balance
b/d
5 700
3 405
Bank
GJ1
GJ1
Jun 1
Balance
b/d
Capital
20X5
May 19 Inventory
31 Balance
20X5
May 13
31

Balance
GJ1
GST paid
20X5
120
May 16
177
19
31
297
270
Rent expense
Drawings
Wages
Balance
Drawings
Balance
GST collected
20X5
GJ1
11 May 4
c/d
38
49
Jun 1
GJ1
c/d
1 320
600
375
3 405
5 700
GJ1
GJ1
c/d
17
10
270
297
Folio no: 230
Folio no: 305.1

GJ1
1 947
b/d
1 947
1 837
Folio no: 315

GJ1
49
Balance
b/d
49
38
Folio no: 455

Assets
Drawings
20X5
May 13 Accounts receivable J Kirby
31 Balance
GJ1
GJ1
GJ1
c/d
Folio no: 135
Accounts Payable G Poulos

20X5
GJ1
c/d
1 837
1 947
June 1 Balance
GJ1
GJ1
Folio no: 115.2
3 400
Capital
20X5
May 1
20X5
May 16 Inventory
22 Bank
700
121
379
1 200
Folio no: 125

20X5
May 8
22
27
31
Office Equipment
20X5
May 1
GJ1
GJ1
c/d
539
20X5
May 1
2
20X5
May 8
11
Folio no: 115.1
GJ1
26 600
Folio no: 460
187
600
787
Sales
20X5
110
May 4
380
490
48
Folio no: 505

GJ1
490
490
June 1
20X5
May 4
Inventory
GJ1
June 1
Balance
b/d
Balance
b/d
Cost of Goods Sold

20X5
294
May13 Inventory
31 Balance
294
228
Folio no: 600

GJ1
c/d
Wages
20X5
May 27
Bank
GJ1
Bank
GJ1
66
228
294
Folio no: 740
375
Rent Expense
20X5
May 8
380
Folio no: 745
1 200
(c)
Trial balance of P Brock
as at 31 May 20X5
Debit
18 272
379
539
3 405
270
3 400
Inventory
Bank
GST paid
Office equipment
GST collected
Capital
Drawings
Sales
Cost of goods sold
Wages
Rent expense
Credit
1 837
38
26 600
787
380
228
375
1 200
28 855
49
28 855
Solution 4.12
(a)
Date
20X7
May 1
10
14
16
19
21
25
31
General Journal of T Harrison

Particulars
Inventory
Accounts receivable B Brown
Land & buildings
Motor vehicles
Accounts payable F Ferris
Bank
GST collected
Capital
Assets & liabilities at commencement
Bank
Cash received for amount owing
GST collected
Sales
Cost of goods sold
Inventory
Recording of cost of goods sold
Bank
GST collected
Rent income
Received rent owing
Bank
GST collected
Motor vehicle
Motor vehicle sold at book value for cash
Motor vehicle
GST paid
Accounts payable Apex Motors
Bought motor vehicle on credit
Stationery
GST paid
Bank
Paid cash for stationery
Sales
GST collected
Inventory
Cost of goods sold
Inventory
GST paid
Accounts payable C Castle
Bank
GST collected
Sales
Goods sold for cash
Cost of goods sold
Inventory
GST paid
Inventory
Received credit note for overcharge
GST collected
Bank
Outstanding amount paid
Folio
110
115.1
205
225
305.1
125
315
455
1 245
115.1
315
505
3 190
600
110
1 595
125
315
510
3 300
125
315
225
22 000
225
135
305.2
33 000
3 300
1 245
290
2 900
1 595
300
3 000
2 000
20 000
36 300
762
135
125
500
50
505
315
115.1
220
22
110
600
121
550
242
121
110
135
305.3
6 000
600
125
315
505
8 580
600
110
4 290
315
125
GJ1
Credit
$
3 890
5 900
3 675
345 780
125
115.1
305.3
135
110
50
Debit
$
37 000
1 245
278 000
43 000
6 600
780
7 800
4 290
407
37
370
3 675
3 675
(b)
20X7
May 1 Capital
19 Accounts payable C Castle
June 1 Balance
20X7
May 1 Capital
3 Sales
June 1 Balance
General Ledger of T Harrison

Inventory
20X7
GJ1
37 000
GJ1
121
GJ1
6 000
31 Balance
43 121
b/d
36 866
Accounts Receivable B Brown
20X7
GJ1
1 245
May 2 Bank
GJ1
3 190
16 Sales
31 Balance
4 435
b/d
2 948
Folio no: 110

GJ1
GJ1
GJ1
c/d
Folio no: 115.1

GJ1
GJ1
c/d
Bank
20X7
May 2
6
8
21

Rent income
Motor vehicle
Sales
June 1 Balance
GJ1
GJ1
GJ1
GJ1
b/d
20X7
May 10 Accounts payable Apex Motors GJ1
14 Bank
GJ1
GJ1
June 1 Balance
b/d
GST paid
20X7
3 300
May 25
50
31
600
3 950
3 913
Capital
Stationery
GST collected
Balance
GJ1
GJ1
GJ1
c/d
GJ1
20X7
May 1 Capital
GJ1
10 Accounts payable Alex Motors GJ1
June 1 Balance
b/d

Balance
GJ1
c/d
37
3 913
3 950
Folio no: 205
278 000
Motor Vehicles
20X7
43 000
May 8
33 000
31
76 000
56 000
Folio no: 225

Bank
Balance
Accounts Payable F Ferris

20X7
May 1 Capital
Accounts Payable Apex Motors
20X7
May 10 Motor vehicle
20X7
May 25 Inventory
31 Balance
5 900
550
3 675
25 000
35 125
Folio no: 135
Land & Buildings

20X7
May 1 Capital
1 245
242
2 948
4 435
Folio no: 125

20X7
May 1
14
31
1 245
3 300
22 000
8 580
35 125
25 000
1 595
4 290
370
36 866
43 121
Accounts Payable C Castle

20X7
GJ1
c/d
6 193
6 600
June 1 Balance
51
GJ1
c/d
20 000
56 000
76 000
Folio no: 305.1

GJ1
3 890
Folio no: 305.2

GJ1
36 300
Folio no: 305.3

GJ1
6 600
b/d
6 600
6 193
20X7
May 16 Accounts receivable B Brown
31 Bank
31 Balance
GJ1
GJ1
c/d
GST collected
20X7
22
May 1
3 675
3
3 348
6
8
21
7 045
June 1
Capital
20X7
May 1
20X7
May 16 Accounts receivable B Brown GJ1
31 Balance
c/d
Sales
20X7
220
May 3
10 480
21
10 700
June 1
Rent Income
20X7
May 6
20X7
May 3 Inventory
21 Inventory
June 1 Balance
Folio no: 315

Capital
Bank
Bank
Bank
GJ1
GJ1
GJ1
GJ1
GJ1
Balance
b/d
Folio no: 455


Bank
GJ1
GJ1
Balance
b/d
Bank
GJ1
GJ1
c/d
121
5 764
5 885
Folio no: 762
(c)
Trial balance of T Harrison
as at 31 May 20X7
Debit
36 866
2 948
25 000
3 913
278 000
56 000
Credit
3 890
36 300
6 193
3 348
345 780
10 480
3 000
5 764
500
408 991
52
3 000
Folio no: 600
500
Inventory
Bank
GST paid
Land & buildings
Motor vehicles
Accounts payable Apex Motors
GST collected
Capital
Sales
Rent income
Cost of goods sold
Stationery
2 900
7 800
10 700
10 480
Folio no: 510
Cost of Goods Sold

20X7
GJ1
1 595 May 16 Inventory
GJ1
4 290
31 Balance
5 885
b/d
5 764
GJ1
GJ1 345 780

Folio no: 505
Stationery
20X7
May 14 Bank
3 675
290
300
2 000
780
7 045
3 348
408 991
Solution 4.14
(a)
Date
20X4
April 1
10
14
19
26
General Journal of S Khan

Particulars
Bank
GJ1
Folio
125
455
Capital
Cash introduced as capital at commencement
Purchases
GST paid
Accounts payable J James
Goods purchased on credit
Bank
GST collected
Sales
Goods sold for cash
Purchases
GST paid
Bank
Goods purchased for cash
Accounts receivable N Kelly
GST collected
Sales
Drawings
GST paid
Purchases
Goods withdrawn for personal use
Sales
GST collected
600
135
305.1
Debit
$
30 000
Credit
$
30 000
1 800
180
1 980
125
315
505
880
600
135
125
780
78
115.1
315
505
583
460
135
600
187
505
315
115.1
100
10
80
800
858
53
530
17
170
110
(b)
20X4
April 14 Sales
May 1 Balance
General Ledger of S Khan

Accounts Receivable N Kelly
20X4
GJ1
583 April 26 Sales
30 Balance
583
b/d
473
20X4
April 1
8
Capital
Sales
GJ1
GJ1
May 1
Balance
b/d
20X4
April 5
10

Bank
GJ1
GJ1
May 1
Balance
b/d
Bank
20X4
30 000 April 10 Purchases
880
30 Balance
30 880
30 022
GST paid
20X4
180 April 19 Drawings
78
30 Balance
258
241
Accounts Payable J James

20X4
April 5 Purchases
20X4
April 26
30

Balance
GJ1
c/d
GST collected
20X4
10
April 8 Bank
123
14 Accounts receivable N Kelly
133
53
Folio no: 115.1

GJ1
c/d
110
473
583
Folio no: 125

GJ1
c/d
858
30 022
30 880
Folio no: 135

GJ1
c/d
17
241
258
Folio no: 305.1

GJ1
1 980
Folio no: 315

GJ1
GJ1
80
53
133
May 1
Balance
b/d
Capital
20X4
April 1 Bank
Folio no: 455

GJ1
Drawings
20X4
April 17 Purchases
GJ1
20X4
April 26 Accounts receivable N Kelly
30 Balance
GJ1
c/d
20X4
April 5 Accounts payable J James
10 Bank
GJ1
GJ1
May 1 Balance
b/d
123
30 000
Folio no: 460
187
Sales
20X4
100
April 8 Bank
1 230
14 Accounts receivable N Kelly
1 330
May 1 Balance
Purchases
20X4
1 800 April 19
780
30
2 580
2 410
Folio no: 505

GJ1
GJ1
b/d
800
530
1 330
1 230
Folio no: 600

Drawings
Balance
GJ1
c/d
170
2 410
2 580
(c)
Trial balance of S Khan
as at 30 April 20X4
Debit
473
30 022
241

Bank
GST paid
GST collected
Capital
Drawings
Sales
Purchases
Credit
1 980
123
30 000
187
1 230
2 410
33 333
33 333
Solution 4.16
(a)
Perrin and Sons
Income Statement for period ending 30 June 20X7
$
Sales
Less Cost of goods sold
Gross profit
Add Other income
Interest income
$
123 500
38 900
84 600
1 100
1 100
85 700
Less Expenses
Freight outwards
Advertising
Salaries & wages
Postage & telephone
2 250
3 690
21 480
2 800
10 560
40 780
44 920
Net profit
54
(b)
Perrin and Sons
Less
Assets
Inventory
Bank
Accounts receivable S Hume
Petty cash
GST paid
Motor vehicle
Computer equipment
Total Assets
Liabilities
Accounts payable M Brown
GST collected
Total Liabilities
Net Assets
Owners Equity
Capital
Net profit
3 500
2 900
640
200
620
42 000
11 400
61 260
880
3 440
4 320
56 940
12 020
44 920
56 940
55
CHAPTER 5
SPECIAL TRANSACTIONS
Solution 5.2
Date
20X5
Jan 1
General Journal of B Murphy

Particulars
Inventory
Accounts receivable P OBrien
Land
Buildings
Accounts payable S ORourke
Bank
Loan Advance Finance Co
14% Mortgage on buildings
Capital B Murphy
Assets and liabilities on commencement of business
Debit
Credit
18 800
11 000
50 000
140 000
8 500
4 600
14 000
38 000
154 700
Solution 5.4
Date
20X4
Sep 1
General Journal of G Williams

Particulars
Inventory
Bank
Capital
Assets and liabilities on commencement of business
Sep 15 Office furniture
Computers
Capital
Additional capital introduced
Debit
Credit
2 200
12 800
15 000
10 780
2 860
13 640
Solution 5.6
Date
20X1
Oct 1
15
General Journal of E Ball

Particulars
Bank
Loan Tiger Finance Co
Capital
Capital introduced at commencement
Inventory
Furniture and fittings
Motor vehicle
Office equipment
Goodwill
Vendor G Jack
Purchase of business as a going concern
Vendor G Jack
Bank
Discharge of purchase consideration
Debit
Credit
80 000
40 000
40 000
6 000
14 000
20 000
5 000
5 000
50 000
50 000
50 000
Solution 5.8
Date
20X6
April 1
15
General Journal of G Monty

Particulars
Drawings
Bank
Drew cheque for refrigerator for private use
Drawings
Debit
Credit
1 200
1 200
450
65
Bank
Drew cheque for repairs to private motor vehicle
450
Solution 5.10
General Journal of R Clarke
Particulars
Date
20X8
Oct 20
Motor vehicle
GST paid
Bank
Accounts payable Mann Motors P/L
Purchase of motor vehicle on credit after payment of cash deposit
Office furniture
GST paid
Bank
Cash purchase of office furniture
31
Debit
Credit
40 000
4 000
2 200
41 800
1 100
110
1 210
Solution 5.12
General Journal of I Doyle
Particulars
Date
20X6
Aug 3
Bank
GST collected
Office furniture
Office furniture sold for book value
Accounts receivable P Jones
GST collected
Motor vehicle
Motor vehicle sold for book value
15
Debit
Credit
792
72
720
18 260
1 660
16 600
Solution 5.14
General Journal of P Jones
Particulars
Date
20X1
Nov 1
Drawings
Inventory
GST paid
Goods withdrawn for private use
Accounts receivable H Miller
Office equipment
GST collected
Sold office equipment on credit
Plant
Capital
Plant introduced as additional capital
Motor vehicle
GST paid
Bank
Accounts payable M V Retailers
Purchase of motor vehicle on credit after payment of cash deposit
15
Debit
Credit
275
250
25
187
170
17
3 850
3 850
15 000
1 500
2 500
14 000
Solution 5.16
Date
(a)
(b)
General Journal of A Rowe

Particulars
Debit
Accounts Receivable R Clarke

GST collected
Late fee income
Late fee due on overdue account
Late fee expense
GST paid
Accounts payable R Little
Expenses incurred due to account overlooked
Credit
55
5
50
30
3
33
Solution 5.18
Date
(a)
General Journal of M Tee

Particulars
Late fee expense
GST paid
Debit
Credit
60
6
66
Chapter 5: Special Transactions
(b)
Accounts payable Optical Ltd

Expenses incurred due to account overlooked
Accounts Receivable Local Mart
GST collected
Late fee income
Late fee due on overdue account
66
121
11
110
Solution 5.20
Date
20X3
May 5
10
12
General Journal of H Hamp

Particulars
Bank
Accounts receivable A Munce
Part payment of account
Bank
Sales
GST collected
Cash sale
Bank
Dishonour of cheque received May 5
Sales
GST collected
Bank
Dishonour of cheque received May 7
Bank charges
Bank
Bank charges incurred when cheque dishonoured
Bank charges
Bank charges incurred due to cheque dishonoured
Debit
Credit
1 700
1 700
1 034
940
94
1 700
1 700
940
94
1 034
70
70
70
70
Solution 5.22
(a)
Date
20X5
June 3
General Journal of C Need

Particulars
Bank
Accounts receivable G Scimone
Cheque received for payment of account
Bank
Cheque received on June 3 dishonoured
Bank charges
Bank
Bank charges incurred for dishonoured cheque
Bank charges
Bank charges incurred when cheque dishonoured
Debit
Credit
2 200
2 200
2 200
2 200
45
45
45
45
(b)
20X5
June 1
7
July 1
Balance
Bank (cheque dishonoured)
Bank charges
Balance
Accounts Receivable G Scimone

20X5
b/d
2 200 June 3 Bank
2 200
30 Balance
45
4 445
b/d
2 245
c/d
2 200
2 245
4 445
Solution 5.24
(a)
Date
20X2
June 30
General Journal of M Wilson

Particulars
Bad debts
GST collected
Debit
1 200
120
67
Credit
Accounts receivable R Thompson

Bad debt written off
1 320
(b)
20X2
Jan 15
Balance
Accounts Receivable R Thompson

20X2
b/d
1 320
June 30
Bad debts
GST collected
1 320
1 200
120
1 320
Solution 5.26
(a)
Date
20X9
Feb 25
General Journal of M Metzger

Particulars
Bank
Accounts receivable D Spriggs
Cash received for part payment of account (4 180 x $0.20)
Bad debts
GST collected
Accounts receivable D Spriggs
Debit
Credit
836
836
3 040
304
3 344
(b)
20X8
Nov 1
Sales
Accounts Receivable D Spriggs

20X9
4 180 Feb 25 Bank
Bad debts
4 180
836
3 344
4 180
Solution 5.28
(a)
General Journal of J Brown
Particulars
Date
20X2
Jun 30
Bad debts
GST collected
Accounts receivable J Cassidy
GST collected
Bad debts recovered
Part bad debt previously written off now received
Bank
Cash received for amount owing
Nov 3
Debit
Credit
5 760
576
6 336
1 584
144
1 440
1 584
1 584
(b)
20X2
April 3
Sales
Nov 3
Bad debts recovered
Accounts Receivable J Cassidy

20X2
6 336 June 30 Bad debts
1 584
Nov 3
6 336
Bank
1 584
Solution 5.30
Date
General Journal of A Mitchell

Particulars
Accounts payable B Kennedy
Accounts receivable B Kennedy
Contra account
Accounts payable B Kennedy
Bank
Payment of balance of account
Debit
1 800
Credit
1 800
1 900
1 900
68
Solution 5.32
(a) & (b)
Date
20X3
July 1
14
21
27
31
General Journal Leon Tevlet

Particulars
Land & buildings
Plant & equipment
Inventory
Bank
Accounts receivable W Vilson
Accounts receivable V Linall
GST paid
Accounts payable I Macano
Accounts payable K Tinto
Capital
Assets and liabilities introduced at commencement
Inventory
GST paid
Accounts payable M Jolski
Purchase of goods on credit
Accounts receivable N Rand
Sales
GST collected
Cost of goods sold
Inventory
Cost of goods sold to N Rand
Motor vehicles
GST paid
Bank
Accounts payable Morgan Motors
Purchase of motor vehicle with a cash deposit
Bank
Sales
GST collected
Goods sold for cash
Cost of goods sold
Inventory
Cost of goods sold for cash
Inventory
GST paid
Drawings
Inventory
GST paid
Stock drawn for private use
Bank
Cheque received for amount owing
Plant & equipment
GST paid
Accounts payable B Sooth
Plant & equipment bought on credit
Plant & equipment
GST collected
Trade-in allowed on purchase of new plant
Late fee expense
GST paid
Late fee charged on overdue account
Bank
Cheque received for amount owing
69
Debit
Credit
185 632
750
17 256
4 368
3 900
1 935
2 100
2 736
1 871
211 334
350
35
385
880
800
80
460
460
21 360
2 136
3 496
20 000
4 697
4 270
427
2 380
2 380
22
20
2
330
300
30
1 935
1 935
1 350
135
1 485
550
500
50
110
11
121
847
847
847
Date
Particulars
Bank
Recording N Rands cheque dishonoured
Debit
Credit
847
(c)
20X3
July 1
2
Aug 1
20X3
July 1
20X3
July 1
Capital
Balance
General Ledger of Leon Tevlet

Inventory
20X3
17 256
July 2 Cost of goods sold
350
5 Accounts payable M Jolski
7 Drawings
31 Balance
17 606
b/d
14 446
Capital
Accounts Receivable W Vilson

20X3
3 900
July 1
Capital
Accounts Receivable V Linall

20X3
1 935
July 9 Bank
20X3
July 2
31
Sales
Bank
Aug 1
Balance
20X3
July 1
4
9
27
Capital
Sales
Aug 1
Balance
Accounts Receivable N Rand

20X3
880 July 27 Bank
847
31 Balance
1 727
b/d
880
b/d
20X3
July 1
2
3
14
21
Capital
Aug 1
Balance
b/d
Bank
20X3
4 368
July 3
4 697
31
1 935
847
11 847
7 504
GST paid
20X3
2 100
July 5
35
7
2 136
135
11
31
4 417
4 385
c/d
1 935
c/d
Motor vehicle
Balance
847
880
1 727
3 496
847
c/d

Drawings
Balance
460
2 380
20
300
14 446
17 606
7 504
11 847
2
30
c/d
4 385
4 417
Land and Buildings

20X3
July 1
20X3
July 1
14
Aug 1
Capital
185 632
Plant and Equipment

20X3
750 July 14 Accounts payable B Sooth
1 350
31 Balance
2 100
b/d
1 600
Capital
Balance
Motor Vehicle
20X3
July 3
21 360
Accounts Payable I Macano
70
c/d
500
1 600
2 100
20X3
July 1
21
20X3
July 5
31
Inventory
Balance
Capital
Late fee expense
2 736
121
2 857
Accounts Payable M Jolski

20X3
22
July 2 Inventory
c/d
363
385
Aug 1 Balance
385
385
363
b/d
Accounts Payable Morgan Motors Ltd

20X3
July 3 Motor vehicle
20X3
July 14
31
Plant & equipment

Balance
20 000
Accounts Payable B Sooth

20X3
550 July 14 Plant & equipment
c/d
935
1 485
Aug 1 Balance
1 485
1 485
935
b/d
Accounts Payable K Tinto

20X3
July 1 Capital
GST collected
20X3
July 2
4
14
Capital
20X3
July 1
1 871

Bank
80
427
50
557
Assets & Liabilities
211 334
Drawings
20X3
July 7
Inventory
330
Sales
20X3
July 2
4

Bank
800
4 270
5 070
Cost of Goods Sold

20X3
July 2
4
Inventory
Inventory
460
2 380
2 840
Late Fee Expense
20X3
July 21
110
(d)
Leon Tevlet
Trial Balance as at 31 July 20X3
$
Inventory
14 446
71
Accounts receivable W Vilson

Bank
GST paid
Land & buildings
Plant & equipment
Motor vehicle
Accounts payable K Tinto
GST collected
Capital
Drawings
Sales
Cost of goods sold
Interest expense
3 900
880
7 504
4 385
185 632
1 600
21 360
2 857
363
20 000
935
1 871
557
211 334
330
5 070
2 840
110
242 987
242 987
Solution 5.34
(b)
Date
20X8
Jan 2
14
15
21
22
General Journal of Jack Kure

Particulars
Accounts receivable B Moulas
Fees income
GST collected
Sent invoice for services given
Accounts payable L Hart
Bank
Payment of account
Stationery
GST paid
Accounts payable I Lucas
Stationery purchased on credit
Bad debts
GST collected
Accounts receivable J Clarke
Fees income
GST collected
Sent credit note for overcharge
Donation
Bank
Donation to Boy Scouts Association
Bank
Payment of balance owing
Accounts receivable J Turner
GST collected
Sent invoice for furniture sold
Accounts receivable R Stodart
Bad debts recovered
GST collected
Re-instating bad debt recovered
Bank
Part payment of amount previously written off
Bank
Cheque received for amount owing on 1.2.20X8
Stationery
GST paid
Accounts payable Paper Products
72
Debit
Credit
2 904
2 640
264
1 765
1 765
640
64
704
2 620
262
2 882
140
14
154
275
275
704
704
506
460
46
264
240
24
264
264
3 960
3 960
160
16
176
Date
24
26
28
31
Particulars
Purchase of stationery on credit
Wages
Bank
Wages paid
Drawings
Bank
Paid private residence water rates
Rent
GST paid
Bank
Paid rent for premises
Stationery
GST paid
Debit
Credit
1 300
1 300
184
184
1 800
180
1 980
33
30
3
(c)
General Ledger of Jack Kure
20X8
Jan 1
2
Feb 1
20X8
Jan 1
Balance
Accounts Receivable B Moulas

20X8
b/d
3 960
Jan 7 Fees income
2 904
21 Bank
31 Balance
6 864
b/d
2 750
Balance
Accounts Receivable J Clarke

20X8
b/d
2 882
Jan 6 Bad debts
Balance
Fees income
c/d
154
3 960
2 750
6 864
2 882
Accounts Receivable J Turner

20X8
Jan 14
20X8
Jan 15
20X8
Jan 15
21
31
Bad debts recovered

Balance
506
Accounts Receivable R Stodart
20X8
264 Jan 15 Bank
c/d
Bank
20X8
264
Jan 1
3 960
4
13 279
9
24
26
28
264
Balance
Accounts payable L Hart
Donations
Accounts receivable I Lucas
Wages
Drawings
Rent
b/d
Balance
b/d
11 295
1 765
275
704
1 300
184
1 980
17 503
13 279

Balance
c/d
3
537
17 503
Feb 1
20X8
Jan 1
4
22
28
Balance
b/d
Bank
Feb 1
Balance
20X8
Jan 1
Balance
b/d
GST paid
20X8
280 Jan 31
64
16
180
540
537
Office Furniture and Equipment

20X8
b/d
67 050 Jan 14 Accounts receivable J Turner
31 Balance
73
540
c/d
460
66 590
Feb 1
Balance
b/d
67 050
66 590
67 050
Motor Vehicle
20X8
Jan 1
Balance
b/d
18 400
Machinery
20X8
Jan 1
20X8
Jan 1
20X8
Jan 9
20X8
Jan 31
20X8
Jan 6
7
31
Balance
b/d
Bank
Accounts Payable L Hart

20X8
1 765
Jan 1 Balance
b/d
1 765
Accounts Payable J Egan

20X8
Jan 1 Balance
b/d
3 225
Accounts Payable I Lucas

20X8
704 Jan 4 Stationery
Bank
Stationery
Balance
18 800
Accounts Payable Paper Products Ltd

20X8
33 Jan 22 Stationery
c/d
143
176
Feb 1 Balance

Balance
c/d
GST collected
20X8
262
Jan 2
14
14
58
15
334
Feb 1
Capital
20X8
Jan 1
704
176
b/d
176
143
Balance
b/d
264
46
24
334
58
Balance
b/d
95 087

Drawings
20X8
Jan 26
20X8
Jan 7
31
Bank

Balance
184
c/d
Fees Income
20X8
140
Jan 2
2 500
2 640
Feb 1
Balance
Bad Debts Recovered

20X8
Jan 15 Accounts receivable R Stodart
Wages
20X8
Jan 24
Bank
1 300
Rent
20X8
Jan 28
Bank
1 800
74
2 640
b/d
2 640
2 500
240
20X8
Jan 4
22

Feb 1
Balance
b/d
Stationery
20X8
640
Jan 31
160
800
770

Balance
c/d
30
770
800
Donations
20X8
Jan 9
Bank
275
Bad Debts
20X8
Jan 6
2 620
(d)
Trial Balance of Jack Kure
as at 31 January 20X8
Bank
GST paid
Motor vehicles
Machinery
Accounts payable J Egan
Accounts payable Paper Products Ltd
GST collected
Capital
Drawings
Fees income
Bad debts recovered
Wages
Rent
Stationery
Donations
Bad debts
Debit
Credit
2 750
506
13 279
537
66 590
18 400
18 800
3 225
143
58
95 087
184
2 500
240
1 300
1 800
770
275
2 620
114 532
75
114 532
CHAPTER 6
ACCOUNTING TO TRIAL BALANCE

CASH AND CREDIT JOURNALS
USING PERPETUAL INVENTORY
Solution 6.2
(a)
Invoice/
Credit
Date
Note
20X7
Dec 2
401
7
874
11
107
14 8701
16
529
281
1096
23
31
48
111
Purchases Journal of V Tatjana
Folio no: PJ1

Motor
Accounts
Vehicle
Folio Payable Inventory GST Paid Expenses Stationery
Accounts Payable/
Particulars
A Zakarov Purchases
R Rhodes Purchases
A Zakarov Purchase returns
F Holden Motor vehicle
expenses
A Zakarov Purchases
S Weller Stationery
F Holden Motor vehicle
expense overcharge
S Weller Stationery returns
A Zakarov Purchase returns
305.1
305.2
305.1
121
253
(55)
110
230
(50)
11
23
(5)
305.3
305.1
305.4
297
99
198
27
9
18
270
90
305.3
305.4
305.1
(44)
(33)
(11)
(40)
(10)
(4)
(3)
(1)
370
(110)
75
(135)
230
(775)
825
(b)
20X7
Dec 31
General Ledger of V Tatjana

Inventory
Accounts payable
PJ1
370
86
180
(30)
150
(762)
Folio no: 110
Chapter 6: Accounting to Trial Balance Cash and Credit Journals using Perpetual Inventory
GST Paid
20X7
Dec 31
20X7
Dec 11
31
20X7
Dec 16
31
Accounts payable
PJ1
Folio no: 305.1
Inventory returns
Inventory returns
Balance
Accounts Payable A Zakarov

20X7
PJ1
55 Dec 2 Inventory
PJ1
11
14 Inventory
c/d
154
220
Jan 1 Balance
Accounts Payable R Rhodes
20X7
Dec 7
Inventory
Folio no: 305.2

overcharge
Balance
75
c/d
Stationery returns
Balance
Accounts payable
Balance
Accounts payable
PJ1
220
154
253
PJ1
297
b/d
297
253
Folio no: 305.4

PJ1
198
b/d
198
165
Folio no: 762
150
Motor Vehicle Expenses

20X7
Dec 31
b/d
253
297
Accounts Payable S Weller

20X7
PJ1
33 Dec 16 Stationery
c/d
165
198
Jan 1 Balance
PJ1
121
99
Folio no: 305.3
Stationery
20X7
Dec 31
PJ1
PJ1
PJ1
Accounts Payable F Holden

20X7
PJ1
44 Dec 1 Motor vehicle expenses
Jan 1
20X7
Dec 23
31
Folio no: 135
Folio no: 775
230
(c)
V Tatjana
Trial Balance as at 31 December 20X7
Dr
370
75
Inventory
GST paid
Accounts payable A Zakarov
Accounts payable R Rhodes
Accounts payable F Holden
Accounts payable S Weller
Stationery
Cr
154
253
253
165
150
230
825
87
825
Solution 6.4
(b)
Re
c
No
Date
20X1
Feb 2 521
4 522
523
6 523
7 524
10
16
21
27
525
526
527
528
Cash Receipts Journal of J Jelke

Cost
of
Good
s
Sold
Drawer and/or
Particulars
Folio
Bank
K Cole
115.1 4 312
accounts
receivable
1 300 Sales
Interest income
3 480
R Fay accounts 115.2 3 201
receivable
J King accounts 115.3 2 299
receivable
2 100 Sales
4 730
Technical advice
1 540
Rent income
800
Technical advice
836
3 400
(110)
(600)
21 198
(125)
Folio no: CR1
Accounts Discoun
Receivabl
t
e
Allowed Sales
4 400
GST
collecte Interest Fees
d
Income Recd
(80)
Rent
Incom
e
(8)
2 800
280
400
3 300
(90)
(9)
2 420
(110)
(11)
4 300
430
140
1 400
76
760
800
10 120
(280)
(610)
7 100
(505)
898
(315)
400 2 160
800
(515)
(520) (510)
(a) & (c)
20X1
Feb 1
Balance
Mar 1
Balance
General Ledger of J Jelke

Inventory
20X1
b/d
5 000 Feb 28 Cost of goods sold
Balance
5 000
b/d
1 600
Folio no: 115.1
Balance
Accounts Receivable K Cole

20X1
b/d
4 400
Feb 2
Bank
Folio no: 115.2
Balance
Accounts Receivable R Fay

20X1
b/d
3 300
Feb 6
Bank
Folio no: 115.3
Balance
Accounts Receivable J King

20X1
b/d
2 420
Feb 6
Bank
20X1
Feb 1
20X1
Feb 1
20X1
Feb 1
Bank
20X1
Feb 1
28
Balance
Cash Receipts
b/d
CR1
Balance
b/d
CR1
c/d
CR1
CR1
CR1
3 400
1 600
5 000
4 400
3 300
2 420
Folio no: 125
3 000
21 198
24 198
Investment Fixed Deposit

20X1
Feb 1
Folio no: 110
Folio no: 260
10 000
GST Collected
20X1
Feb 1
Balance
28
Bank
Capital
20X1
Feb 1
88
Folio no: 315

b/d
CR1
920
898
1 818
Folio no: 455

Balance
b/d
27 200
Sales
Folio no: 505
20X1
Feb 28
Rent Income
20X1
Feb 28
Interest Income
20X1
Feb 28
Fees Received
20X1
Feb 28
Bank
CR1
Folio no: 510

Bank
CR1
Inventory
CR1
Bank
CR1
Bank
400
Folio no: 520

Bank
CR1
2 160
Folio no: 600
3 400
Discount Allowed
20X1
Feb 28
800
Folio no: 515
Cost of Goods Sold

20X1
Feb 28
7 100
CR1
Folio no: 610
280
(d)
J Jelke
Trial Balance as at 28 February 20X1
Dr
1 600
24 198
10 000
Inventory
Bank
Investment fixed deposit
GST collected
Capital
Sales
Rent income
Interest income
Fees received
Cost of goods sold
Discount allowed
Cr
1 818
27 200
7 100
800
400
2 160
3 400
280
39 478
39 478
Solution 6.6
(a)
Date
20X3
April 1
General Journal of M Jolski

Particulars
Folio
Inventory
Capital
Inventory introduced at commencement
110
455
Debit
$
20 000
Folio no: GJ1

Credit
$
20 000
(b)
Sales Journal of M Jolski
Date
20X3
April 2
6
8
13
20
22
Invoice/
Cr Note
301
27
302
303
28
304
Cost of
Goods
Sold
1 700
(140)
2 500
2 200
Nil
Accounts Receivable/
Particulars
Folio
L Duffy Sales
l duffy sales returns
G Mawson Sales
F Daly Sales
F Daly Sales allowance
J Hawkes Rent income
115.1
115.1
115.2
115.3
115.3
115.4
6 260
(110)
Accounts
Receivable
4 180
(330)
5 676
5 236
(242)
2 090
16 610
89
Folio no: SJ1
Sales
3 800
(300)
5 160
4 760
(220)
13 200
(505)
GST
Collected
380
(30)
516
476
(22)
190
1 510
(315)
Rent
Income
1 900
1 900
(510)
(600)
Date
20X3
April 3
5
Invoice
/Cr
Note
Purchases Journal of M Jolski

Account
s
Telephon
Folio Payable Inventory GST Paid
e
Accounts Payable/
Particulars
809
1071
F Wegner Inventory
M Burns Inventory
17
37985
27
329
Tuspo Telephone Co
Telephone
N Atkins Office furniture
28
3412
30
5687
Tuspo Telephone Co
Allowance
Candle Newspaper Co
Advertising
305.1
305.
2
305.
3
305.
4
305.
3
305.
5
3 190
2 900
1 617
1 470
290
147
528
48
3 740
340
(77)
(7)
264
24
9 262
Folio no: PJ1

Office
Furnitur Advertisin
e
g
4 370
(110)
480
3 400
(70)
240
842
(135)
410
(755)
3 400
(230)
Cash Receipts Journal of M Jolski
Date
20X3
April 7
12
14
Rec
No
Cost of
Goods
Sold
201
202
203
Drawer and/or Particulars
Accounts receivable L Duffy

350 P Hughes Sales
Accounts receivable G Mawson
Date
20X3
April 15
24
26
Accounts Discount
GST
Receivable Allowed Sales Collected
Bank
115.1
3 696
836
5 533
3 850
5 676
(130)
10 065
(125)
9 526
(270)
(610)
350
(110)
(600)
Chq
No
Folio no: CR1
Folio
115.2
Cash Payments Journal of M Jolski

Accounts
Payee and/or Particulars
Folio
Bank
Payable
3451 F Wegner Accounts payable

3452 M Burns Accounts payable
3453 J Barry Inventory
305.1
305.2
3 069
1 540
1 397
6 006
(125)
240
(710)
(140)
760
(14)
76
(13)
760
(505)
49
(315)
Folio no: CP1

Discount
GST
Received Inventory
Paid
3 190
1 617
(110)
(70)
1 270
4 807
(180)
(525)
1 270
(110)
109
(135)
(c)
20X3
April 1
30
May 1
20X3
April 2
General Ledger of M Jolski

Inventory
20X3
20 000 April 30
Cost of goods sold
4 370
Cost of goods sold
1 270
Balance
25 640
19 030
Capital
Accounts payable
Bank
GJ1
PJ1
CP1
Balance
b/d
Sales
Accounts Receivable L Duffy

20X3
SJ1
4 180 April 6
Sales(Returns)
7
Bank
4 180
Accounts Receivable G Mawson
90
Folio no: 110

SJ1
CR1
c/d
6 260
350
19 030
25 640
Folio no: 115.1

SJ1
CR1
(11)
(7)
127
330
3 850
4 180
Folio no: 115.2
20X3
April 8
20X3
April 13
May 1
SJ1
Sales
Accounts Receivable F Daly

20X3
SJ1
5 236 April 20 Sales (allowance)
30 Balance
5 236
b/d
4 994
Balance
5 676
20X3
April 14
Sales
Bank
Accounts Receivable J Hawkes

20X3
April 22
Rent income
SJ1
Receipts
CR1
Bank
20X3
10 065 April 30
May 1
Balance
b/d
10 065
4 059
PJ1
CP1
Payments
Balance
20X3
April 15
SJ1
c/d
242
4 994
5 236
Folio no: 115.4
CP1
c/d
6 006
4 059
10 065
Folio no: 135
842
109
951
Office Furniture
20X3
April 30
Folio no: 115.3
Folio no: 125
GST Paid
Accounts payable
Bank
5 676
2 090
20X3
April 30
20X3
April 30
CR1
Accounts payable
PJ1
Bank
Accounts Payable F Wegner

20X3
CP1
3 190 April 3
Purchases
Folio no: 230
3 400
91
Folio no: 305.1

PJ1
3 190
20X3
April 24
20X3
April 28
30
Bank
Telephone allowance
Balance
Accounts Payable M Burns

20X3
CP1
1 617 April 5 Purchases
Accounts Payable Tuspo Telephone Co
20X3
PJ1
77 April 17 Telephone
c/d
451
528
May 1 Balance
Accounts Payable N Atkins
20X3
April 27 Office furniture
Accounts Payable Candle Newspaper Co
20X3
April 30 Advertising
GST Collected
20X3
April 30
Capital
20X3
April 1
Rent Income
20X3
April 30
Accounts receivable
Bank
Cost of Goods Sold

Inventory
Inventory
SJ1
CR1
Bank
CR1
Accounts payable
PJ1
Accounts payable
PJ1
528
b/d
528
451
Folio no: 305.4

PJ1
3 740
Folio no: 305.5

PJ1
264
SJ1
CR1
1 510
49
1,559
Inventory
GJ1
20 000
Folio no: 505

Accounts receivable
Bank
SJ1
CR1
13 200
760
13 960
Folio no: 510

Accounts receivable
SJ1
1 900
Folio no: 525

CP1
180
Folio no: 600
Folio no: 610
Folio no: 710
240
Telephone
20X3
April 30
PJ1
270
Advertising
20X3
April 30
Folio no: 305.3
6 260
350
6 610
Discount Allowed
20X3
April 30
1 617
Folio no: 455
Discount Received
20X3
April 30
Bank
20X3
April 30
PJ1
Folio no: 315
Sales
20X3
April 30
Folio no: 305.2
410
92
Folio no: 755
(d)
M Jolski
Trial Balance as at 30 April 20X3
Dr
19 030
4 994
2 090
4 059
951
3 400
Inventory
Accounts receivable F Daly
Accounts payable J Hawkes
Bank
GST Paid
Office furniture
Accounts payable Tuspo Telephone Co
Accounts payable N Atkins
Accounts payable Candle Newspaper Co
GST Collected
Capital
Sales
Rent income
Discount received
Cost of goods sold
Discount allowed
Advertising
Telephone
Solution 6.8
(a)
Date
20X4
May 1
Cr
451
3 740
264
1,559
20 000
13 960
1 900
180
6 610
270
240
410
42,054
General Journal of T Harrison

Particulars
Folio
Bank
Inventory
Plant & equipment
Accounts receivable B Roberts
Accounts receivable B Butler
GST collected
Accounts payable D Dobbie
Capital T Harrison
Assets and liabilities at this date
42,054
Debit
$
5 060
16 500
8 290
890
283
125
110
220
115.1
115.2
315
305.1
305.2
455
Folio no: GJ1

Credit
$
175
339
383
30 126
(b)
Date
20X4
May 5
Invoice/
Cr Note
Purchases Journal of T Harrison

Accounts Payable/
Accounts
Particulars
Folio Payable Inventory
F Ferris Inventory
305.2
J Jackman Inventory
305.5
F Ferris Allowance
305.2
P Penton Ltd Plant & Equip 305.3
Great Lakes Council Rates 305.4
14
21
26
352
407
(55)
99
890
1 693
Folio no: PJ1

Plant
& Equip
Rates
320
370
(50)
32
37
(5)
9
90
640
(110)
90
(220)
890
890
(760)
Sales Journal of T Harrison
Date
20X4
May 3
19
Invoice/
Credit
Note
Cost of
Goods
Sold
100
90
(12)
178
(110)
(600)
Accounts Receivable/
Particulars
B Butler Sales
C Castle Sales
B Butler Returns
Folio
115.2
115.3
115.2
93
GST paid
73
(135)
Folio no: SJ1
Accounts
Receivable
209
187
(33)
363
Sales
GST
Collected
190
170
(30)
330
(505)
19
17
(3)
33
(315)
Chq
No
Date
20X4
May 2
8
12
14
Payee and/or
Particulars
Folio
Purchases
Wages
D Dobbie creditor
Drawings
Cash Payments Journal of T Harrison

Accounts Discount
Bank
Payable Received Inventory
209
259
317
23
808
305.1
Folio no: CP1

Wages
Drawings GST Paid
190
19
259
339
339
(20)
(2)
(20)
(525)
190
(110)
23
23
(460)
259
(740)
Cash Receipts Journal of T Harrison
Date
20X4
May 2
19
20
22
Receipt
No
Cost of
Goods
Sold
Drawer and/or
Particulars
190 Sales
120 Sales
B Roberts
C Castle
310
(110)
(660)
(c)
20X4
May 1
31
June 1
20X4
May 1
20X4
May 1
31
June 1
20X4
May 3
Folio
115.1
115.3
Bank
General Ledger of T Harrison

Inventory
20X4
16 500 May 31 Cost of goods sold
640
Cost of goods sold
190
Balance
17 330
16 842
Balance
b/d
Capital
Accounts Receivable B Roberts

20X4
GJ1
890 May 20 Bank
Capital
Sales
Accounts Receivable B Butler

20X4
GJ1
283 May 19 Sales Returns
SJ1
209
31 Balance c/d
June 1
Capital
Receipts
Accounts Receivable C Castle

20X4
SJ1
187 May 22 Bank
GJ1
CR1
5 060
1 594
20X3
May 31
6 654
5 846
Balance b/d
Accounts payable
Bank
510
(505)
Folio no: 110

SJ1
CR1
c/d
PJ1
CP1
178
310
16 842
17 330
Folio no: 115.1

CR1
890
Folio no: 115.2

SJ1
33
459
492
Folio no: 115.3

CR1
187
Folio no: 125

Payments
Balance c/d
CP1
808
5 846
6 654
GST Paid
20X4
May 31
(30)
(10)
(40)
(610)
492
459
Bank
20X4
May 1
31
890
187
1 077
GJ1
PJ1
CP1
Balance b/d
Cash
Sales
310
200
Capital
Accounts payable
Bank
Sales
Folio no: CR1
Accounts Discount
Receivable Allowed
341
220
857
176
1 594
73
17
90
94
17
(135)
Folio no: 135
GST
Collected
31
20
(3)
(1)
47
(315)
Plant & Equipment

20X4
May 1
21
20X4
May 12
20X4
May 14
31
Capital
Accounts Payable
GJ1
PJ1
8 290
90
8 380
Accounts Payable D Dobbie
20X4
339 May 1
Capital
Bank
Purchases returns
Balance c/d
Folio no: 220
Accounts Payable F Ferris

20X4
PJ1
55 May 1
Capital
680
5 Inventory
Folio no: 305.1

GJ1
Folio no: 305.2

GJ1
PJ1
735
June 1
Accounts Payable Great Lakes Council

20X4
May 26 Rates
Accounts Payable J Jackman
20X4
May 5 Inventory
GST Collected
20X4
May 1
31
Folio no: 305.3

PJ1
Folio no: 305.4

PJ1
CP1
PJ1
Capital
Accounts receivable
Bank
GJ1
SJ1
CR1
GJ1
Folio no: 505
Cost of Goods Sold
Accounts receivable
Bank
Bank
CR1
SJ1
CR1
330
510
840
Folio no: 525
CP1
20
Folio no: 600
178
310
488
Discount Allowed
20X4
May 31
30 126
Folio no: 460
Discount Received
20X4
May 31 Bank
SJ1
CR1
175
33
47
255
23
20X4
May 31
Inventory
Inventory
407
Folio no: 455
Sales
20X4
May 31
890
Folio no: 305.5
Drawings
Bank
99
Folio no: 315
Capital T Harrison
20X4
May 1 Assets & Liabilities
20X4
May 14
383
352
735
680
Balance b/d
Accounts Payable P Penton Ltd

20X4
May 21 Plant & Equipment
339
Folio no: 610
40
Wages
Folio no: 740
95
20X4
May 31
Bank
CP1
259
Rates
20X4
May 31
Accounts payable
PJ1
Folio no: 760
890
(d)
T Harrison
Trial Balance as at 31 May 20X4
Dr
16 842
459
5 846
90
8 380
Inventory
Accounts receivable B Butler
Bank
GST paid
Plant & equipment
Accounts payable P Penton Ltd
Accounts payable Great Lakes Council
Accounts payable J Jackman
GST collected
Capital
Drawings
Sales
Discount received
Cost of goods sold
Discount allowed
Wages
Rates
Cr
680
99
890
407
255
30 126
23
840
20
488
40
259
890
33 317
33 317
6.10 (a)
General Journal of A Dederson
Date
20X3
Sep 1
Particulars
Folio
Plant & machinery

Motor vehicles
Inventory
Accounts receivable H Esbawn
Accounts receivable P KIlby
Accounts receivable W Etton
GST paid
Bank overdraft
215
225
110
115.1
115.2
115.3
135
310
Accounts payable W Fagnall

Accounts payable G Karvey
Accounts payable L Hynn
GST Collected
Loan
305.1
305.2
305.3
315
410
Capital
455
Assets and liabilities introduced at commencement of business

Bad debts
GST collected
Accounts receivable P Kilby
Bad debts written off
Late fee expense
GST paid
Late fee charged on overdue account
Debit
$
54 000
56 000
38 400
12 800
6 400
1 692
600
GJ1
Credit
$
10
600
1 366
2 406
2 818
4 000
20 00
0
128
702
787
315
115.2
4 660
466
797
135
305.2
120
12
5 126
132
(b)
Sales Journal of A Dederson
Date
Cost of
Goods
Sold Details
Folio
96
SJ1
Accounts
GST
Motor Collecte
Receivabl
e
Sales Vehicle
d
20X3
Sep 3
7
9
1 420
(80)
W Etton
115.3
$
2 860
W Etton returns
O Lakes
115.3
115.4
(176)
30 800
1 340
33 484
(600)
(110)
Date
20X3
Sep 3
12
16
Date
20X3
Sep 6
12
14
21
Date
20X3
Sep
5
13
23
29
S Wafire
M Dills
S Wafire returns
2
440
(505)
Cash Payments Journal of A Dederson

Accounts Discount
Folio Bank
Payable Received
$
$
$
1 380
305.5
4 800
4 800
305.2
800
800
305.1
1 322
1 366
(40)
8 302
6 966
(40)
(125)
(525)
Particulars
Wages
M Dills
G Karvey
W Fagnall
Cash Receipts Journal of A Dederson

Account
s
Receiva
Particulars
Folio
Bank
ble
$
$
$
115.2
1 274
1 274
H Esbawn
W Etton
W Etton dishonoured cheque
115.1
115.3
115.3
12 536
4 376
(4 376)
13 810
(125)
$
260
2
600
(160)
Purchases Journal of A Dederson

Accoun
ts
Folio
Payable Inventory
$
$
305.4
3 256
2 960
305.5
42 680
305.4
(264)
(240)
45 672
2 720
(110)
Details
P Kilby
12 800
4 376
(4 376)
14 074
28
000
28
000
(225)
(16)
2 800
3 044
(315)
PJ1
Motor
Vehicle
$
38 800
38 800
(225)
Wages
$
1 380
1 380
(740)
GST
Paid
$
296
3 880
(24)
4 152
(135)
CPJ1
GST
Paid
$
(4)
(4)
(135)
CRJ1
Discou
nt
Allowe
d
$
GST
Collecte
d
$
(240)
(24)
(240)
(785)
(24)
(315)
(c)
20X
3
Sep
1
30
Oct
1
Inventory
20X3
Capital
GJ1
Accounts payable
PJ1
Balance b/d
38 Sep 30 Cost of goods sold

400
2 720
Balance c/d
41
120
39
780
97
Folio 110
SJ1
1 340
39
780
41
120
20X
3
Sep
1
20X
3
Sep
1
20X
3
Sep
1
30
Oct
1
Accounts Receivable H Esbawn

20X3
Capital
GJ1
12
800
30
Bank
Accounts Receivable P Kilby

20X3
Capital
GJ1
6 400
GJ1
1 692
Sales
Bank (dishonour)
SJ1
CR1
2 860
4 376
8 928
4 376
Balance b/d
20X
3
Sep
1
8
30
Oct
1
Motor Vehicle
SJ1
Folio 115.2
GJ1
GJ1
Accounts receivable G Karvey

GJ1
Inventory
PJ1
Balance b/d
Sep
5
30
Sales Returned
SJ1
176
Bank
Balance c/d
CR1
4 376
4 376
8 928
1274
6 400
Folio 115.3
Folio 115.4
30
800
600
Sep
5
Folio 135
Bank
CP1
20X
3
Sep
1
30
Oct
1
Capital
GJ1
Capital
GJ1
Accounts payable
PJ1
Balance b/d
20X
3
Sep 30 Receipts
4 152
4 764
4 760
Balance c/d
4 760
4 764
Balance c/d
Folio 215
54 00
0
Motor Vehicles
20X3
Folio 225
56 Sep 30 Accounts receivable

000
38
Balance c/d
800
94
800
66
800
SJ1
Bank Overdraft
20X3
CR1
12
Plant & Machinery

20X
3
Sep
1
5 126
CR1
GST Paid
20X3
Capital
12
800
Bad debts
Accounts Receivable O Lakes

20X
3
Sep
9
CR1
Sep
5
30
Bank
6 400
Accounts Receivable W Etton
20X3
Capital
Folio 115.1
13
810
5 092
18
Sep
1
30
98
28
000
66
800
94
800
Folio 310
Capital
GJ1
Payments
CP1
10
600
8 302
18
902
20X
3
Sep 30 Bank
20X
3
Sep 30 Bank
CP1
Sep Capital
1
Accounts Payable G Karvey
20X3
CP1
Balance c/d
20X
3
Sep16 Purchases (returned)
Balance c/d
20X
3
Sep 30 Bank
902
5 092
Oct
Balance b/d
1
Accounts Payable W Fagnall
20X3
1 366
800
1 738
2 538
264
2 992
3 256
Balance c/d
Folio 305.2
GJ1
2 406
Late fee expense
GJ1
Oct
1
Balance b/d
132
2 538
1 738
Sep 3
4 800
Purchases
Sep
12
Purchases
Folio 305.3
GJ1
2 818
Folio 305.4
PJ1
PJ1
42 680
37
880
42 680
Oct1
GST Collected
20X3
Accounts receivable P KIlby
GJ1
Bank
CR1
Balance c/d
3 256
3 256
2 992
Folio 305.5
42
680
20X
3
Sep
5
30
1 366
Capital
Oct 1
Balance b/d
Accounts Payable M Dills
20X3
CP1
GJ1
Sep
1
8
Accounts Payable L Hynn

20X3
Sep 1 Capital
Accounts Payable S Wafire
20X3
PJ1
Folio 305.1
466
Sep 1
24
6 554
7 044
30
Oct 1
Balance b/d
37 880
Folio 315
Capital
GJ1
4 000
Accounts receivable
SJ1
3 044
7 044
6 554
Folio 410
Balance b/d
Loan
20X3
Sep 1
Capital
20X3
Sep 1
Sales
20X3
Sep 30
Discount Received
20X3
Sep 30
Cost of Goods Sold
99
Capital
20 000
Folio 455
Assets and liabilities
GJ1
128
702
Folio 505
Accounts receivable
SJ1
2 440
Folio 525
Bank
CP1
40
Folio 600
20X
3
Sep 30 Inventory
1 340
Discount Allowed
20X
3
Sep 30 Bank
240
20X
3
Sep 30 Bank
20X
3
Sep
5
Folio 610
Accounts receivable P KilbyGJ1
Wages
Folio 740
1 380
Bad Debts
Folio 787
4 660
Late Fee Expense

20X
3
Sep 30 Accounts payable G KarveyGJ1
120
(d)
Folio 797
A Dederson
Trial Balance as at 30 September 20X3
$
39 780
4 376
30 800
4 760
54 000
66 800
Inventory
Accounts receivable W Etton
Accounts receivable O Lakes
GST paid
Plant & machinery
Motor vehicles
Bank Overdraft
Accounts payable L Hynn
Accounts payable S Wafire
Accounts payable M Dills
GST collected
Loan
Capital
Sales
Discount received
Cost of goods sold
Discount allowed
Wages
Bad debts
Interest expense
5 092
1 738
2 818
2 992
37 880
6 554
20 000
128 702
2 440
40
1 340
240
1 380
4 660
120
208 256
100
208 256
CHAPTER 7
SUBSIDIARY LEDGERS ACCOUNTS

RECEIVABLE (DEBTORS) AND
ACCOUNTS PAYABLE (CREDITORS)
Solution 7.2
(a)
(i)
Date
20X0
July 1
11
14
16
19
General Journal of C Anderson

Particulars
Folio
Debit
$
Inventory
Bank
GST paid
Plant & machinery
Capital
Inventory
GST paid
Accounts payable control
J Gibson
1936
Inventory bought on credit
Stationery
GST paid
Paper Supplies
374
Stationery bought on credit
J Gibson
132
Inventory
GST paid
Credit note received from goods returned
J Gibson
1 804
Bank
Discount received
GST paid
Paid amount owing
Inventory
GST paid
M Cronin
737
Petty cash
Bank
Petty cash established
Inventory
GST paid
J Gibson
275
Paper Suppliers
374
Bank
Discount received
110
125
135
215
455
107
GJ1
Credit
$
42 000
7 000
6 500
23 000
78 500
110
135
305
305.1
1 760
176
762
135
305
305.2
340
34
305
305.1
110
135
132
305
305.1
125
525
135
1 804
110
135
305
305.3
670
67
130
125
600
110
135
305
305.1
250
25
305
305.2
125
525
374
1 936
374
120
12
1 727
70
7
737
600
275
352
20
Date
21
24
31
Particulars
GST paid
Paid amount owing
M Cronin
187
Inventory
GST paid
Credit note received for goods returned
Stationery
GST paid
Paper Suppliers
253
Stationery bought on credit
Paper Suppliers
44
Stationery
GST paid
Stationery returned to supplier
Folio
135
Debit
Credit
2
305
305.3
110
135
187
762
135
305
305.2
230
23
305
305.2
762
135
44
170
17
253
40
4
(ii)
20X0
July 1
11
16
Aug 1
General ledger of C Anderson

Inventory
20X0
GJ1
42 000
July 8 Accounts payable control
GJ1
1 760
21 Accounts payable control
GJ1
670
31 Balance
GJ1
250
44 680
b/d
44 390
Capital
Balance
Bank
20X0
July 1
Capital
GJ1
7 000
Aug 1
Balance
b/d
7 000
4 321
20X0
July 1
6
11
16
24
Aug 1
Bank
GJ1
Capital
GJ1
GJ1
GJ1
GJ1
GJ1
GJ1
Balance
b/d
Capital
GJ1
120
170
44 390
44 680

Petty cash
Balance
GJ1
GJ1
GJ1
c/d
1 727
600
352
4 321
7 000
Folio No 130
600
GST paid
20X0
6 500
July 8
176
9
34
19
67
21
25
31
23
6 825
6 783
Plant and Machinery
20X0
July 1
GJ1
GJ1
c/d
Folio No 125
20X0
July 9
14
19
31
Petty Cash
20X0
July 14
Folio No 110
23 000
108
Folio No 135
Balance
GJ1
GJ1
GJ1
GJ1
GJ1
c/d
12
7
2
17
4
6 783
6 825
Folio No 215
Chapter 7: Subsidiary Ledgers Accounts Receivable (Debtors) and Accounts Payable (Creditors)
20X0
July 8
9
19
21
31
Inventory
Bank
Bank
Inventory
Stationery
Balance
GJ1
GJ1
GJ1
GJ1
GJ1
c/d
Accounts Payable Control

20X0
132
July 1 Inventory
1 804
6 Stationery
374
11 Inventory
187
16 Inventory
44
24 Stationery
1 034
3 575
Aug 1 Balance
Capital
20X0
July 1
Discount Received
20X0
July 9
19
20X0
July 6
24
Aug 1

GJ1
GJ1
Balance
b/d
Stationery
20X0
340
July 31
230
570
530
Folio No 305
GJ1
GJ1
GJ1
GJ1
GJ1
1 936
374
737
275
253
b/d
3 575
1 034
Folio No 455
Assets
GJ1
78 500
Folio No 525
GJ1
GJ1
70
20
90
Folio No 762
Balance
GJ1
c/d
40
530
570
(iii)
Date
20X0
July 1
8
9
16
Date
20X0
July 6
19
24
31
Date
20X0
July 11
21
Accounts Payable Ledger of C Anderson

J Gibson
Particulars
Folio
Debit
Inventory
Inventory returns
Bank
Inventory
GJ1
GJ1
GJ1
GJ1
Particulars
Paper Suppliers
Folio
Stationery
Bank
Stationery
Stationery returns
GJ1
GJ1
GJ1
GJ1
Particulars
M Cronin
Folio
Inventory
Inventory returns
GJ1
GJ1
Credit
1 936
132
1 804
275
Debit
Credit
305.1
Balance
1 936 CR
1 804 CR
Nil
275 CR
305.2
Balance
374
374 CR
Nil
253 CR
209 CR
374
253
44
Debit
Credit
305.3
Balance
737
737 CR
550 CR
187
(iv)
Trial Balance of C Anderson as at July 31 20X0
$
Inventory
Bank
Petty Cash
GST paid
Plant & machinery
Capital
Discount received
Stationery
44 390
4 321
600
6 783
23 000
1 034
78 500
90
530
79 624
(v)
109
79 624
Schedule of Accounts Payable Balances

$
J Gibson
Paper Suppliers
M Cronin
Balance as per accounts payable control
275
209
550
1 034
(b)
(i)
Date
20X0
July 1
Date
20X0
July 1
6
8
11
16
21
24
31
General Journal of C Anderson

Particulars
Inventory
Bank
GST paid
Plant & machinery
Capital C Anderson
Assets introduced at commencement of business
J Gibson
Paper Suppliers
J Gibson returns
M Cronin
J Gibson
M Cronin returns
Paper Suppliers
Paper Suppliers returns
Details
J Gibson
Petty cash
Paper Suppliers
110
125
135
215
Debit
Credit
42 000
7 000
6 500
23 000
78 500
Purchases Journal of C Anderson

Accounts
Folio
Payable
Inventory
$
$
305.1
1 936
1 760
305.2
374
305.1
(132)
(120)
305.3
737
670
305.1
275
250
305.3
(187)
(170)
305.2
253
305.2
(44)
3 212
2 390
305
110
Details
Date
20X0
July 9
14
19
Folio
Cash Payments Journal of C Anderson

Accounts
Discount
Folio
Bank
Payable
Recd
$
$
$
305.1
1 727
1 804
(70)
600
305.2
352
374
(20)
2 679
2 178
(90)
125
305
525
PJ1
Stationery
$
340
230
(40)
530
762
GST paid
$
176
34
(12)
67
25
(17)
23
(4)
292
135
CPJ1
Petty
Cash
$
GST paid
$
(7)
600
600
130
(2)
(9)
135
(ii)
General Ledger of C Anderson
Inventory
20X0
July 1
31
Capital C Anderson
Accounts payable
20X0
July 1
Capital C Anderson
Aug 1
Balance b/d
GJ1
PJ1
GJ1
Folio 110
42 000
2 390
44 390
Bank
20X0
7 000 July 31
Folio 125
Bank
Balance
CPJ1
c/d
7 000
4 321
Petty Cash
20X0
July 31
20X0
July 1
31
Payments
Capital C Anderson
Accounts payable
CPJ1
GJ1
PJ1
2 679
4 321
7 000
Folio 130
600
GST Paid
20X0
6 500 July 31
292
6 792
110
Folio 135
Bank
Balance
CPJ1
c/d
9
6 783
6 792
Aug 1
Balance b/d
6 783
Plant & Machinery
20X0
July 1
20X0
31
Capital
GJ1
Folio 215
23 000

20X0
CPJ1
2 178 July 31 Inventory
c/d
1 034
3 212
Aug 1
Balance
Bank
Balance
Folio 305
Capital C Anderson
20X0
July 1 Assets
PJ1
3 212
b/d
3 212
1 034
Folio 455
GJ1
Discount Received
20X0
July 31 Bank
78 500
Folio 525
CPJ1
90
Stationery
20X0
July 31
A/cs payable control
PJ1
Folio 762
530
(iii)
Date
20X0
July 1
8
9
16
Date
20X0
July 6
19
24
31
Date
20X0
July 11
21
Accounts Payable Ledger of C Anderson

J Gibson
Particulars
Folio
Debit
Inventory
Inventory returns
Bank
Inventory
PJ1
PJ1
CPJ1
PJ1
Particulars
Paper Suppliers
Folio
Stationery
Bank
Stationery
Stationery returns
1 936
132
1 804
275
Debit
PJ1
CPJ1
PJ1
PJ1
Particulars
M Cronin
Folio
Inventory
Inventory returns
Credit
Credit
305.1
Balance
1 936 CR
1 804 CR
Nil
275 CR
305.2
Balance
374
374 CR
Nil
253 CR
209 CR
374
253
44
Debit
PJ1
PJ1
Credit
305.3
Balance
737
737 CR
550 CR
187
(iv)
Trial Balance of C Anderson as at July 31 20X0
$
Inventory
Bank
Petty Cash
GST paid
Plant & machinery
Capital
Discount received
Stationery
44 390
4 321
600
6 783
23 000
1 034
78 500
90
530
79 624
(v)
$
J Gibson
275
111
79 624
Paper Suppliers
M Cronin
209
550
1 034
Solution 7.4
(a)
(i)
Date
20X2
April 1
12
15
23
General Journal of L Smith

Particulars
Bank
Inventory
Motor vehicle
Furniture & Fittings
GST paid
Loan Finance Co
Capital
Assets & liabilities at commencement
Accounts receivable control
T Yates
2640
Sales
GST collected
Cost of goods sold
Inventory
Cost of goods sold
J Hope
3 960
Sales
GST collected
Cost of goods sold
Inventory
Cost of goods sold
Inventory
GST paid
M Buffier
Computers
GST paid
Supreme Office Equipment
Computer bought on credit
Bank
Sales
GST collected
Goods sold for cash
Cost of goods sold
Inventory
Cost of goods sold
Drawings
Bank
Cash withdrawn for private use
M Buffier
Bank
Discount received
GST paid
Payment of account
Sales
GST collected
J Hope
Goods returned
Inventory
Cost of goods sold
Folio
125
110
225
230
135
410
455
Debit
$
8 000
6 000
10 000
1 200
1 720
9 000
17 920
115
115.1
505
315
2 640
600
110
1 200
115
115.2
505
315
3 960
600
110
1 800
2 400
240
1 200
3 600
360
1 800
500
50
550
110
135
305
305.1
2 300
230
2 530
235
135
305
305.2
125
505
315
1 100
600
110
500
460
125
75
550
110
112
550
2 530
1 000
100
500
75
305
305.1
125
525
135
550
505
315
115
115.2
100
10
110
600
GJ1
Credit
$
539
10
1
110
50
50
Date
25
26
28
Particulars
Cost of goods returned
Bank
Discount allowed
GST collected
J Hope
Received payment of account
Inventory
GST paid
Bank
Cash purchases
Bank charges
Bank
Bank charges incurred
Folio
125
610
315
115
115.2
3 850
Debit
Credit
3 773
70
7
3 850
110
135
125
800
80
792
125
10
880
10
(ii)
20X2
Apr 1
4
23
26
May 1
20X2
Apr 1
3
May 1
General Ledger of L Smith

Inventory
20X2
Capital
GJ1
6 000
Apr 1 Cost of goods sold
GJ1
500
Cost of goods sold
GJ1
50
Bank
GJ1
800
30 Balance
7 350
Balance
b/d
3 850
Accounts Receivable Control
20X2
Sales
GJ1
2 640
Apr 23 Sales
Sales
GJ1
3 960
25 Bank
30 Balance
6 600
Balance
b/d
2 640
Folio 110
GJ1
GJ1
GJ1
c/d
1 200
1 800
500
3 850
7 350
Folio 115
GJ1
GJ1
c/d
110
3 850
2 640
6 600
Bank
20X2
Apr 1
9
25
Capital
GJ1
Sales
GJ1
Accounts receivable control GJ1
May 1
Balance
8 000
1 100
3 773
Folio 125
20X2
Apr 12
15
26
28
30
Drawings
Inventory
Bank charges
Balance
12 873
11 369
b/d
20X2
Apr 1
4
6
26
Capital
Bank
GJ1
GJ1
GJ1
GJ1
May 1
Balance
b/d
GST paid
20X2
1 720 Apr 15
50
30
230
80
2 080
2 079
Capital
GJ1

Balance
Capital
GJ1
20X2
GJ1
1
2 079
2 080
Folio 225
Folio 230
1 200
Computers
20X2
Apr 6
GJ1
c/d
10 000
20X2
Apr 1
75
539
880
10
11 369
12 873
Folio 135
Motor Vehicles
20X2
Apr 1
GJ1
GJ1
GJ1
GJ1
c/d
Folio 235
2 300
20X2
113
Folio 305
Apr 15
30
Bank
Balance
GJ1
c/d
550
2 530
3 080
Apr 4
6
May 1
20X2
Apr 23
25
30

Balance
c/d
GST Collected
20X2
10
Apr 1
7
3
683
9
700
May 1
Loan Finance Co
20X2
Apr 1
Capital
20X2
Apr 1
Inventory
Computers
GJ1
GJ1
Balance
b/d
550
2 530
3 080
2 530
Folio 315

Bank
GJ1
Balance
b/d
Folio 410
Capital
GJ1
9 000
Folio 455
GJ1
17 920
Drawings
20X2
Apr 12
20X2
Apr 23
30
Bank
GJ1
Folio 460
75

Balance
c/d
Sales
20X2
100
Apr 1
6 900
3
9
7 000
May 1
Folio 505
Bank
GJ1
Balance
b/d
Discount Received
20X2
Apr 15 Accounts payable control
20X2
Apr 1
3
9
Inventory
Inventory
Inventory
GJ1
GJ1
GJ1
May 1
Balance
b/d
Cost of Goods Sold

20X2
1 200
Apr 23 Inventory
1 800
30 Balance
500
3 500
3 450
GJ1
c/d
Bank
GJ1
Folio 525
GJ1
10
50
3 450
3 500
Folio 610
70
150
Bank Charges
20X2
Apr 28
2 400
3 600
1 000
7 000
6 900
Folio 600
Discount Allowed
20X2
Apr 25
240
360
100
700
683
Folio 792
10
(iii)
Date
20X2
Apr 1
L Smith
Accounts Receivable Ledger
T Yates
Particulars
Folio
Debit
Sales
SJ1
Credit
2 640
2 640 DR
J Hope
Date
20X2
Apr 3
23
Particulars
Folio
Sales
Sales returns
SJ1
SJ1
114
Debit
Folio 115.1
Balance
Credit
3 960
110
Folio 115.2
Balance
3 960 DR
3 850 DR
25
Date
20X2
Apr 4
15
Date
20X2
Apr 6
Bank
CR1
3 850
L Smith Accounts Payable Ledger

M Buffier
Particulars
Folio
Debit
Inventory
Bank
PJ1
CPJ1
Particulars
Computers
Folio 305.1
Balance
Credit
550
550

Folio
Debit
550 CR
Nil
Folio 305.2
Balance
Credit
PJ1
Nil
2 530
2 530 CR
(iv)
Trial Balance of L Smith as at 30 April 20X2
$
3 850
2 640
11 369
2 079
10 000
1 200
2 300
Inventory
Bank
GST paid
Motor vehicles
Computers
GST collected
Loan
Capital L Smith
Drawings
Sales
Discount received
Cost of goods sold
Discount allowed
Bank charges
2 530
683
9 000
17 920
75
6 900
10
3 450
70
10
37 043
37 043
(v)
Schedule of Accounts Receivable Balances
$
2 640
T Yates
$
2 530

(b)
(i)
Date
20X2
Apr 1
General Journal of L Smith

Particulars
Bank
Inventory
Motor vehicle
GST paid
Loan
Capital L Smith
Assets & liabilities at commencement of business
Folio
125
110
225
230
135
410
455
Debit
GJ1
Credit
8 000
6 000
10 000
1 200
1 720
9 000
17 920
Sales Journal of L Smith
Date
20X2
Apr 1
3
23
Cost of
Goods
Sold
1 200
1 800
(50)
2 950
Details
T Yates
J Hope
J Hope returns
Folio
115.1
115.2
115.2
115
Accounts
Receivable
$
2 640
3 960
(110)
6 490
Sales
$
2 400
3 600
(100)
5 900
GST
collected
$
240
360
(10)
590
600/110
Date
20X2
Apr 4
6
115
505
Purchases Journal of L Smith

Accounts
Folio
Payable
Inventory
$
$
305.1
550
500
305.2
2 530
3 080
500
305
110
Details
M Buffier
Supreme Office Equip
315
GST
paid
$
Computers
$
50
230
280
2 300
2 300
235
135
Cash Receipts Journal of L Smith

Cost of
Goods
Sold
Date
20X2
Apr 9
25
Details
500
Folio
Sales
J Hope
115.2
500
600/110
Date
20X2
Apr 12
15
26
28
Details
Drawings
M Buffier
Purchases
Bank charges
Bank
$
1 100
3 773
4 873
125
Accounts
Receivable
$
Discount
Allowed
$
3 850
3 850
115
Cash Payments Journal of L Smith

Accounts
Disc
Bank
Payable
Recd
Drawings
$
$
$
$
75
75
539
550
(10)
880
10
1 504
550
(10)
75
125
305
525
460
Folio
305.1
GST
collected
$
100
(7)
93
315
Sales
$
1 000
(70)
(70)
1 000
505
610
Inventory
$
Bank
Charge
$
GST
paid
$
(1)
80
800
800
110
10
10
792
79
135
(ii)
20X2
Apr 1
30
May 1
20X2
Apr 30
May 1
Capital L Smith
Purchases
Bank
GJ1
PJ1
CPJ1
Balance
b/d
Sales
Balance c/d
General Ledger of L Smith

Inventory
20X2
6 000
Apr 30 Cost of goods sold
500
Cost of goods sold
800
Balance
7 300
3 850

20X2
SJ1
6 490
Apr 30 Bank
Balance c/d
6 490
2 640
Bank
20X2
Apr 1
30
May 1
Capital L Smith
GJ1
8 000
Receipts
CR1
4 873
12 873
11 369
Balance b/d
Capital L Smith
A/cs payable
Bank
GJ1
PJ1
CPJ1
SJ1
CR1
c/d
2 950
500
3 850
7 300
Folio 115
CR1
3 850
2 640
6 490
Folio 125
20X2
Apr 30
GST Paid
20X2
Apr 1
30
Folio 110
Payments
CPJ1
Balance c/d
1 504
11 369
12 873
Folio 135
1 720
280
79
2 079
Motor Vehicles
116
Folio 225
20X2
Apr 1
Capital L Smith
GJ1
10 000
20X2
Apr 1
Capital L Smith
GJ1
Folio 230
1 200
Computers
20X2
Apr 30
20X2
Apr 30
Bank
Balance c/d
GJ1
CPJ1
Folio 235
2 300
20X2
550
Apr 30 Purchases
2 530
3 080
May 1 Balance b/d
GST Collected
20X2
Apr 30
Folio 305
PJ1
3 080
2 530
Folio 315
Accounts receivable
Bank
SJ1
CR1
Loan
Capital L Smith
20X2
Apr 1
Capital L Smith
GJ1
CPJ1
GJ1
75
Folio 505
20X2
Apr 30
Discount Received
20X2
Apr 30
Bank
CR1
A/cs receivable control SJ1
SJ1
CR1
Bank
CPJ1
Bank
CR1
2 950
500
3 450
Folio 785
70
Bank Charges
20X2
Apr 30
Bank
CPJ1
10
Folio 600
Discount Allowed
20X2
Apr 30
1 000
5 900
6 900
Folio 525
Cost of Goods Sold

Inventory
Inventory
17 920
Folio 460
Sales
20X2
Apr 30
9 000
Folio 455
Drawings
Bank
590
93
683
Folio 410
20X2
Apr 1
20X2
Apr 30
3 080
Folio 792
10
(iii)
Date
20X2
L Smith
T Yates
Particulars
Folio
Debit
117
Credit
Folio 115.1
Balance
Apr 1
Sales
SJ1
2 640
2 640 DR
J Hope
Date
20X2
Apr 3
23
25
Date
20X2
Apr 4
15
Date
20X2
Apr 6
Particulars
Folio
Sales
Sales returns
Bank
SJ1
SJ1
CR1
Debit
3 960
110
3 850
L Smith Accounts Payable Ledger

M Buffier
Particulars
Folio
Debit
Inventory
Bank
PJ1
CPJ1
Particulars
Credit
550
550

Folio
Debit
Computers
Credit
Credit
PJ1
2 530
Folio 115.2
Balance
3 960 DR
3 850 DR
Nil
Folio 305.1
Balance
550 CR
Nil
Folio 305.2
Balance
2 530 CR
(iv)
Trial Balance of L Smith as at 30 April 20X2
$
3 850
2 640
11 369
2 079
10 000
1 200
2 300
Inventory
Bank
GST paid
Motor vehicles
Computers
GST collected
Loan
Capital L Smith
Drawings
Sales
Discount received
Cost of goods sold
Discount allowed
Bank charges
2 530
683
9 000
17 920
75
6 900
10
3 450
70
10
37 043
37 043
(v)
$
2 640
T Yates
$
2 530
Solution 7.6
(a)
20X9
Sept 18
27
Oct 1
Service revenue
Service revenue
Balance
General Ledger of I Lucas

20X9
GJ1
715
Sept 24 Bank
GJ1
1 760
29 Service revenue
30 Balance
2 475
b/d
2 098
Bank
20X9
Sept 1
2
5
Capital
Loan from Ozzie
Service revenue
GJ1
GJ1
GJ1
30 800
40 000
1 540
118
Folio 115
GJ1
GJ1
c/d
300
77
2 098
2 475
Folio 125
24
20X9
Sept10
14
Oct 1
20X9
Sept 21
30
20X9
Sept 29
30
GJ1
300
72 640
GST paid
20X9
190
Sep 21
86
30
276
258
Folio 135

GJ1
GJ1
Balance
b/d
Office supplies
Balance

20X9
GJ1
198
Sept 10 Office supplies
c/d
2 838
14 Advertising
3 036
Oct 1 Balance

Balance
GJ1
c/d
GST collected
20X9
7 Sept 5
358
18
27
365
Oct 1

Balance
20X9
Sept 29
30

Balance
GJ1
c/d
Service Revenue
20X9
70 Sept 5
3 580
18
27
3 650
Oct 1
GJ1
GJ1
20X9
Sept 10
Oct 1
GJ1
GJ1
Balance
b/d
Date
20X9
Sept 18
24
29
Date
20X9
Folio 315
Bank
GJ1
GJ1
GJ1
Balance
b/d
140
65
160
365
358
Folio 410
GJ1
GJ1
5 000
40 000
45 000
Folio 455
GJ1
25 800
Folio 507
Bank
GJ1
GJ1
GJ1
Balance
b/d
1 400
650
1 600
3 650
3 580
Folio 710
860
Office Supplies
20X9
1 900
Sept 21
30
1 900
1 720
Folio 767
Balance

R Stone
Particulars
Folio
Debit
Service revenue
Bank
Service revenue
GJ1
GJ1
GJ1
Particulars
2 090
946
3 036
2 838
b/d
Advertising
20X9
Sept 14
18
258
276
Folio 305
Loan from Ozzie

20X9
Sept 1 Capital
2 Bank
Capital
20X9
Sept 1
GJ1
c/d
N Younis
Folio
119
Credit
715
300
77
Debit
Credit
GJ1
c/d
Folio 115.1
Balance
715 DR
415 DR
338 DR
Folio 115.2
Balance
180
1 720
1 900
Sept 27
Date
20X9
Sept 10
21
Service revenue
GJ1
1 760
Accounts Payable Ledger

R Lee
Particulars
Folio
Office supplies
Office supplies
Debit
GJ1
GJ1
1 760 DR
Folio 305.1
Balance
Credit
2 090
198
Ad Co
Date
20X9
Sept 14
Particulars
Folio
Advertising
Debit
Folio 305.2
Balance
Credit
GJ1
2 090 CR
1 892 CR
946
946 CR
(b)
I Lucas
Trial balance as at 30 September 20X9
Debit
$
2 098
72 640
258

Bank
GST paid
GST collected
Loan from Ozzie
Capital
Service revenue
Advertising
Office supplies
Credit
$
2 838
358
45 000
25 800
3 580
860
1 720
77 576
77 576
(c)
R Stone
N Younis
Balance as per accounts receivable control
$
338
1 760
2 098

R Lee
Ad Co
1 892
946
2 838
Solution 7.8
(a)
20X8
Mar 1
31
Apr 1
20X8
Mar 1
31
Apr 1
Capital
Bank
CPJ1
Balance
Capital J Fisher
Sales
Balance b/d
General Ledger of J Fisher

Inventory
20X8
GJ1
30 000
Mar 29 Drawings
PJ1
1 160
30 Donations
140
GJ1
GJ1
SJ1
130
150
364
Cost of goods sold

Balance
CR1
c/d
530
30 126
31 300
b/d
Folio 110
31 300
30 126

20X8
GJ1
10 250
Mar 31 Bank
SJ1
2 882
Bad debts
Balance c/d
13 132
8 985
120
Folio 115
CR1
GJ1
3 124
1 023
8 985
13 132
Bank
20X8
Mar 1
31
Apr 1
Capital J Fisher
Receipts
GJ1
CR1
40 000
4 257
44 257
42 147
Balance b/d
Folio 125
20X8
Mar 31
Payments
Balance c/d
CPJ1
GST paid
20X8
Mar 1
Mar 31
Apr 1
Capital J Fisher
Bank
GJ1
PJ1
CPJ1
Balance
b/d
870
186
43
1 099
1 071
Folio 135
20X8
Mar 29
30
31
Drawings
Donations
Balance
GJ1
GJ1
c/d
Plant
20X8
Mar 1
20X8
Mar 1
Apr 1
20X8
Mar 1
31
Apr 1
20X8
Mar 31
20X8
Mar 31
Capital J Fisher
Capital J Fisher
Capital J Fisher
Bank
16 000
GJ1
Motor Vehicles
20X8
11 200
Mar 31
Balance b/d
Bank
Balance
A/cs receivable control

Balance
Folio 225
Balance c/d
1 900
9 300
11 200
11 200
9 300
GJ1
PJ1
CPJ1
Furniture & Equipment

20X8
6 000
Mar 31 Bank
CR1
700
250
Balance c/d
6 950
6 770

20X8
CPJ1
1 505
Mar 1 Capital J Fisher
c/d
3 011
31 Purchases
4 516
Apr 1 Balance
GJ1
c/d
GST collected
20X8
93
Mar 1
1 362
31
Apr 1
Capital J Fisher
20X8
Mar 1
GJ1
PJ1
b/d
GJ1
CPJ1
70
110
6 770
6 950
2 470
2 046
4 516
3 011
Folio 315
Capital J Fisher
GJ1
Bank
CR1
Balance
b/d
1 090
262
103
1 455
1 362
GJ1
110 760
Drawings
Inventory
Bank
Folio 230
Folio 305
1 455
20X8
Mar 29
31
13
15
1071
1 099
Folio 220
GJ1
Balance b/d
2 110
42 147
44 257
Folio 460
143
132
275
Sales
Folio 505
20X8
Mar 31
121

Bank
GJ1
CR1
610
960
1 570
Discount Received
20X8
Mar 31
Folio 525
Bank
CPJ1
80
Cost of Goods Sold

20X8
Mar 31
Inventory
Bank
SJ1
CR1
Folio 600
364
530
894
Advertising
20X8
Mar 31
Bank
CPJ1
Folio 710
120
Donations
20X8
Mar 30
Inventory
GJ1
Folio 777
165
Bad Debts
20X8
Mar 31
Date
20X8
Mar 1
3
16
25
30
31
GJ1
Folio 787
930
Accounts Receivable Ledger of J Fisher

W Black
Particulars
Folio
Debit
Balance
Sales
Sales (returns)
Bank
Bank (chq dishonoured)
Bank
Bad debts
GJ1
SJ1
SJ1
CR1
CR1
CR1
GJ1
Credit
3 750
308
11
261
261
3 024
1 023
B Day
Date
20X8
Mar 1
14
25
Particulars
Folio
Balance
Sales
Bank
GJ1
SJ1
CR1
Debit
Credit
6 500
374
100
W Blue
Date
20X8
Mar 23
Date
20X8
Mar3 1
Date
20X8
Mar 1
2
13
22
27
Particulars
Folio
Furniture & equipment
Particulars
SJ1
Ryde Motor Cycles
Folio
Motor vehicle
SJ1
Debit
Credit
121
Debit
Balance
Inventory
Inventory returns
Inventory
Bank
GJ1
PJ1
PJ1
PJ1
CPJ1
2 090
Particulars
Folio
Credit
1 230
297
22
110
1 505
122
Debit
Folio 115.2
Balance
6 500 DR
6 874 DR
6 774 DR
Folio 115.3
Balance
Folio 115.4
Balance
2 090 DR
J Parker
Date
20X8
3 750 DR
4 058 DR
4 047 DR
3 786 DR
4 047 DR
1 023 DR
Nil
121 DR
Credit
Accounts Payable Ledger of J Fisher

P Perkins
Particulars
Folio
Debit
Folio 115.1
Balance
Credit
Folio 305.1
Balance
1 230 CR
1 527 CR
1 505 CR
1 615 CR
110 CR
Folio 305.2
Balance
Mar 1
7
Balance
Inventory
GJ1
PJ1
1 240
891
C Harris
Date
20X8
Mar 5
Particulars
Folio
Debit
Folio 305.3
Balance
Credit
PJ1
1 240 CR
2 131 CR
770
770 CR
(b)
Trial Balance of J Fisher as at 31 March 20X8
$
30 126
8 985
42 147
1 071
16 000
9 300
6 770
Inventory
Bank
GST paid
Plant
Motor vehicles
GST clearing
Capital J Fisher
Drawings
Sales
Discount received
Cost of goods sold
Advertising
Donations
Bad debts
3 011
1 362
110 760
275
1 570
80
894
120
165
930
116 783
116 783
(c)
$
W Blue
B Day
Ryde Motor Cycles
121
6 774
2 090
8 985

$
P Perkins
J Parker
G Harris
110
2 131
770
3 011
Solution 7.10
(a)
20X8
May 1
31
June 1
20X8
May 1
1
June1
20X8
May 31
Capital
Bank
CPJ1
Balance
Capital R David
Sales
b/d
GJ1
SJ1
Balance b/d
Receipts
General Ledger of R David

Inventory
20X8
GJ1
50 000
PJ1
920
Balance
1 190
CR1
Folio 110
SJ1
c/d
1 945
50 165
52 110
50 165
52 110

20X8
10 635
May 29 Bad debts
5 115
31 Bank
Balance c/d
15 750
9 231
Bank
20X8
7 649
May 1
123
Folio 115
GJ1
CR1
1 859
4 660
9 231
15 750
Folio 125
Capital R David
GJ1
9 600
Balance c/d
6 547
14 196
31
June 1
Bank
CPJ1
Balance b/d
Petty Cash
20X8
May 1
Capital R David
GJ1
Folio 130
700
GST paid
20X8
May 1
31
Capital R David
Bank
GJ1
PJ1
CPJ1
Folio 135
1 700
107
115
1 922
Land & Buildings
20X8
May 1
Capital R David
GJ1
Folio 210
195 000
Plant & Machinery
20X8
May 1
Capital R David
GJ1
Folio 215
48 200
Motor Vehicles
20X8
May 4
Capital R David
20X8
May 1
Capital R David
June 1
Balance b/d
GJ1
GJ1
Folio 225
20 240
Office Furniture & Equipment
20X8
9 400
May 31 A/cs receivable control
Balance c/d
9 400
8 500
Folio 230
SJ1
Investments
20X8
May 1
20X8
May 31
Capital R David
Bank
Balance c/d
GJ1
CPJ1
60 000
20X8
1 912
May 1 Capital R David
4 472
31 Purchases
June 1

Bank
CR1
Balance
c/d
900
8 500
9 400
Folio 260
Folio 305
GJ1
PJ1
6 384
20X8
May 29
31
4 596
14 196
6 547
GST collected
20X8
169
May 1
1
31
2 395
2 565
June 1
Capital R David
20X8
May 1
4
6 384
4 472
Balance b/d
Folio 315
Capital R David
GJ1
2 100
465
Balance
2 565
2 395
b/d
Folio 455
Motor vehicle
GJ1
GJ1
Sales
359 574
20 240
379 814
Folio 505
20X8
May 31
Interest Income
20X8
124
4 361
2 023
3 750
Folio 515
May 31
Discount Received
20X8
May 31
Bank
CR1
Folio 525
Bank
CPJ1
Cost of Goods Sold

20X8
May 31
Inventory
SJ1
Bank
CR1
1 945
Folio 610
10
Wages
20X8
May 31
Bank
20X8
May 1
CPJ1
20X8
May 31
PJ1
PJ1
Folio 740
1 320
Rates
Folio 760
846
Stationery
Folio 762
150
Bad Debts
20X8
May 31
A/cs receivable control GJ1
Folio 787
1 690
Bank Charges
20X8
May 31
Date
20X8
May 1
29
Bank
CPJ1
Folio 795
99
Accounts Receivable Ledger of R David

W Scott
Particulars
Folio
Debit
Balance
Bank
Bad debts
Credit
4 019
CR1
GJ1
2 160
1 859
W Janine
Date
20X8
May 1
8
13
16
28
Particulars
Folio
Balance
Sales
Sales (returns)
Bank
Bank dishonoured chq
Bank
SJ1
SJ1
CR1
CR1
Debit
Credit
3 622
1 045
110
3 622
3 622
500
W Payne
Date
20X8
May 1
5
23
Particulars
Folio
Balance
Bank
Sales
Debit
Credit
2 994
CR1
SJ1
1 549
2 739
W Susan
Date
20X8
May 11
18
Particulars
Folio
Sales
Bank
Debit
Credit
451
CR1
451
C Palmer
Date
40
Folio 600
Discount Allowed
20X8
May 31
3 000
Particulars
Folio
125
Debit
Credit
Folio 115.1
Balance
4 019 DR
1 859 DR
Nil
Folio 115.2
Balance
3 622 DR
4 667 DR
4 557 DR
935 DR
4 557 DR
4 057 DR
Folio 115.3
Balance
2 994 DR
1 445 DR
4 184 DR
Folio 115.4
Balance
451 DR
Nil
Folio 115.5
Balance
20X8
May 15
Date
20X8
May 1
6
22
25
Date
20X8
May 1
Date
20X8
May 1
Date
20X8
May 6
Date
20X8
May 19
26
Date
20X8
May 24
SJ1
990
Accounts Payable Ledger of R David

W Laurence
Particulars
Folio
Debit
Balance
Bank
Inventory
Inventory returns
990 DR
Credit
1 912
CPJ1
1 912
253
44
Particulars
W Gillett
Folio
Particulars
W Renae
Folio
Debit
Credit
Balance
1 004
Debit
Credit
Balance
1 445
Particulars
C Gillett
Folio
Inventory
Debit
Credit
PJ1
Particulars
Bangor Office Supplies

Folio
Stationery
Stationery overcharge
Particulars
803
Debit
PJ1
PJ1
Hiland Council
Folio
Rates
Credit
198
33
Debit
PJ1
Credit
846
Folio 305.1
Balance
1 912 CR
Nil
253 CR
209 CR
Folio 305.2
Balance
1 004 CR
Folio 305.3
Balance
1 445 CR
Folio 305.4
Balance
803 CR
Folio 305.5
Balance
198 CR
165 CR
Folio 305.6
Balance
846 CR
(b)
Trial Balance of R David as at 31 May 20X8
$
50 165
9 231
Inventory
Bank
Petty Cash
GST paid
Land & buildings
Plant & machinery
Motor vehicles
Investments
GST collected
Capital R David
Sales
Interest income
Discount received
Cost of goods sold
Wages
Rates
Stationery
Discount allowed
Bad debts
Bank charges
6 547
700
1 922
195 000
48 200
20 240
8 500
60 000
4 472
2 395
379 814
3 750
3 000
40
1 945
1 320
846
150
10
1 690
99
400 018
(c)
126
400 018

W Janine
W Payne
C Palmer
$
4 057
4 184
990
9 231

W Laurence
W Gillett
C Gillett
W. Renae
Bangor Office Supplies
Hiland Council
$
209
1 004
803
1 445
165
846
4 472
Solution 7.12
(a)
20X3
June 1
30
Balance b/d
Sales
July 1
Balance b/d

20X3
174 300
June 30 Bank
308 506
Discount allowed
Balance c/d
482 806
177 406
297 600
7 800
177 406
482 806
(b)
20X3
June 1
30
Balance b/d
Sales
July 1
Balance b/d

20X3
88 100
June 30 Bank
163 900
Discount allowed
Bad debts
Balance c/d
252 000
65 996
183 500
700
1 804
65 996
252 000
(c)
20X3
June 1
30
July 1
Balance b/d
Sales
Bad debts recovered
Balance b/d

20X3
45 200
June 30 Bank
121 308
Discount allowed
2 805
Balance c/d
169 313
61 613
107 400
300
61 613
169 313
Solution 7.14
20X1
Mar 1
Apr 1
20X1
Mar 31
Balance b/d
Sales
Bad debts recovered
Balance b/d
Bank
Disc recd & GST
Balance b/d

20X1
2 300
Mar 31 Bank
1 925
Disc allowed & GST
77
Bad debts
Balance c/d
4 302
2 051
20X1
1 320
Mar 1 Balance b/d
20
Inventory (Purchases)
3 160
4 500
Apr 1 Balance b/d
2 080
50
121
2 051
4 302
3 400
1 100
4 500
3 160
Solution 7.16
20X2
Nov 1
30
Balance
Sales

20X2
b/d
101 480
Nov 30 Bad debts
84 117
Bank
127
3 795
67 900
Bad debts recovered

Dec 1
20X2
Nov 30
Balance
990
186 587
114 892
b/d
Bank
Balance
Balance
c/d

20X2
47 470
Nov 1 Balance b/d
51 766
30 Inventory (Purchases)
99 236
Dec 1 Balance
c/d
114 892
186 587
41 090
58 146
99 236
51 766
b/d
Solution 7.18
Cash payments journal of R Gooney
Chq
no:
Date
20X2
Nov 16
28
Payee
and/or
Particulars
Folio
H Gant
H Gant
CP1
Bank
A/cs Pay
Disc
recd
Inventory
Wages
Bank
charges
GST paid
3 482
10 202
3 553
10 296
(65)
(86)
(6)
(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
Date
20X2
Nov 2
7
13
14
16
28
Particulars
Folio no: 305.1

Folio
Inventory (invoice 2818)

Inventory (credit note 1577)
Bank
Discount received
Bank
Discount received
PJ1
PJ1
PJ1
PJ1
CP1
CP1
CP1
CP1
128
Debit
Credit
3 553
5 632
44
4 708
3 482
71
10 202
94
Balance
3 553 Cr
9 185 Cr
9 141 Cr
13 849 Cr
10 367 Cr
10 296 Cr
94 Cr
Nil
Solution 7.20
Statement of reconciliation M Morgan
$
Balance as per statement dated 30 April 20X7

Less:
Invoices not yet received
503
26 Apr 20X7
644
30 Apr 20X7
366
77
130
Less: Discount received not yet processed

22 Apr 20X7
Balance as per subsidiary ledger
207
159
11
11
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
To:
30 November 20X0
L Tuffs
Account No:
Date
20X0
Nov 3
6
10
17
20
30
Particulars
025
Debit
Credit
Balance
1 329
Purchases invoice 2678

Purchases credit 1013
Purchases credit 1037
Discount taken
191
2 876
606
242
109
Cheque attached
1 329
1 138
4 014
4 620
4 378
4 269
4 269
The accounts receivable subsidiary ledger for J Press revealed:

Accounts receivable ledger of L Tuffs
J Press
Date
20X0
Oct 14
21
Particulars
Sales (invoice 2530)
Folio no: 115.1

Folio
Debit
SJ1
2 072
1 329
SJ1
28
Sales (credit note 1013)
SJ1
Nov 7

Bank (receipt 63)
Sales (credit note 1037)
SJ1
CR1
SJ1
SJ1
SJ1
14
17
26
129
Credit
191
2 876
2 072
660
242
3 484
Balance
2 072 Dr
3 401 Dr
3 210 Dr
6 086 Dr
4 014 Dr
4 674 Dr
4 432 Dr
7 916 Dr
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 debtors subsidiary ledger account as at 30 November 20X0

Less: Invoices not paid
2889 (26 Nov 20X0)
Less: Invoice short paid by customer
2737 (14 Nov 20X0)
Should be
Paid as
7 916
3 484
660
606
Less discount not yet recorded in our records

Amount as per remittance advice
3 484
4 432
54
4 378
109
4 269
Solution 7.24
Match invoices to payments and tick () both.

Accounts receivable ledger of E Cashman
J Slade
Date
20X4
Nov 1
15
30
Dec 5
Jan 22
Feb 15
28
Folio no: 115.1
Particulars
Folio
Sales
Sales
Bank
Sales
Sales
Bank
Bank
SJ1
SJ1
CR1
SJ1
SJ1
CR1
CR1
Debit
Credit
770
880
770
440
1 100
440
1 100
P Swine
Date
20X4
Nov 14
Dec 1
Jan 4
Feb 18
19
Folio
Sales
Sales
SJ1
SJ1
Bank
Debit
550
110
CR1
Sales
Sales
Bank
SJ1
SJ1
CR1
Credit
Date
Particulars
Sales
Sales
130
Balance
550
550 Dr
660 Dr
110 Dr
775
885 Dr
1 440 Dr
665 Dr
775
555
P Jumbuk
20X4
Dec 15
Jan 1
770 Dr
1 650 Dr
880 Dr
1 320 Dr
2 420 Dr
1 980 Dr
880 Dr
Folio no: 115.2
Particulars
Balance
Folio no: 115.3

Folio
Debit
SJ1
SJ1
670
1 112
Credit
Balance
670 Dr
1 782 Dr
12
Sales
22
Feb 16
SJ1
Bank
660
CR1
Sales
1 112
SJ1
2 442 Dr
1 330 Dr
2 318 Dr
988
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
J Slade
P Swine
P Jumbuk
TOTAL
Folio
115.1
115.2
115.3
Total
Current
(Feb)
30 days
(Jan)
60 days
(Dec)
880
665
2 318
555
988
660
110
670
3 863
1 543
660
780
90 days and over

(Nov)
880
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.
131
CHAPTER 8
PETTY CASH
Solution 8.2
(a)
(Extract of) General Journal of Ian Coom
Particulars
Folio
Date
20X9
July 1
15
Petty cash
Bank
Cheque 17152 petty cash float established
Travel expenses
Cleaning
Stationery
Sundry expenses
GST paid
Bank
Cheque 17193 reimbursement of petty cash
Debit
Credit
250.00
250.00
10.36
20.09
78.45
26.27
50.54
18.59
204.30
(b)
Petty Cash Book of Ian Coom
PAYMENT DISSECTION
Date
Particulars
20X9
Jul 1
2
3
5
8
9
10
Petty cash advance

Taxi fares
Soaps and disinfectants
Petrol
Mop and bucket
Pens and pads
Cancelled
Repairs to office door
Overhead projector pens
11 Repairs to tyre
Cartage to customer - inv 734
12 Repairs to vehicle
15 Refill gas cylinder
Vchr
no
17152
1
2
3
4
5
6
7
8
9
10
11
12
Amount Amount
GST paid
recd
paid
11.40
9.30
26.70
12.80
17.40
19.30
11.50
14.50
21.60
45.10
14.70
204.30
$250.00
17193
Cleaning
Motor Veh
Tea
expenses Stationery money
1.04
0.85
2.43
1.16
1.58
1.76
1.05
1.32
1.96
4.10
1.34
18.59
10.36
8.45
24.27
11.64
15.82
17.54
10.45
13.18
19.64
41.00
10.36
20.09
78.45
13.36
50.54
26.27
45.70
$250.00
45.70
204.30
Solution 8.4
(a)
Date
20X6
Feb 21
Sundry
exp
250.00
Cash on hand c/d

Cash on hand b/d
Reimbursement cheque
Travel
exp
(Extract of) General Journal of S Baldas

Particulars
Folio
Freight outwards
Publications (Newspapers & Magazines)
Postage
Debit
80.40
32.40
45.50
20.20
161
Credit
Mar 4
GST paid
Bank
Freight outwards
Publications (Newspapers & Magazines)
Postage
GST paid
Bank
(b)
17.85
196.35
56.00
17.30
60.00
38.20
17.15
188.65
S Baldas
Petty Cash Book
PAYMENT DISSECTION
Date
Particulars
20X6
Feb 21
Cash on hand
Reimburse chq
Rail freight inv 672
Newspapers - W/e 22.2.X6
Petrol
Bus freight inv 810
Stamps
Repairs to Delivery truck
Magazines & stamps
Bus freight inv 1211
22
23
26
27
28
Mar 2
3
4
Vchr
number
8751
68
69
70
71
72
73
74
75
Amount
received
Cash on hand
Reimbursement chq
8844
GST paid
Freight
out
News &
Magazines
MV
expense
Postage
3.65
196.35
47.30
13.20
27.50
7.70
35.20
38.50
12.65
6.60
188.65
Cash on hand
Amount
paid
200.00
11.35
188.65
4.30
1.20
2.50
0.70
3.20
3.50
1.15
0.60
17.15
43.00
12.00
25.00
7.00
32.00
35.00
5.30
6.00
56.00
6.20
17.30
60.00
$38.20
11.35
200.00
Solution 8.6
(a)
W Nolvis
Petty Cash Book
PAYMENT DISSECTION
Date
Particulars
20X9
Apr 1
2
3
4
8
9
10
Cash on hand
Reimburse chq
Fish food
Magazines
Steam cleaning
Tea, milk & sugar
Petrol & oil
Fish tank repairs
Paper account
Car wash & polish
Write-off of excess
Voucher
number
17009
189
190
191
192
193
194
195
196
197
Amount
received
2.75
13.20
53.35
9.10
34.10
41.80
11.55
21.45
(5.00)
182.30
200.00
17404
GST paid
Office
expenses
News &
Magazines
MV
expenses
8.90
191.10
Cash on hand
Cash on hand
Reimbursement chq
Amount
paid
0.25
1.20
4.85
3.10
3.80
1.05
1.95
16.20
2.50
12.00
48.50
9.10
31.00
38.00
10.50
19.50
(5.00)
93.10
22.50
50.50
17.70
200.00
17.70
182.30
(b)
Date
Particulars
Folio
20X9
162
Debit
Credit
Chapter 8: Petty cash
Apr 10
Office expenses
Newspapers & magazines (Publications)
GST paid
Bank
93.10
22.50
50.50
16.20
182.30
Solution 8.8
(a)
Date
June 1
Particulars
Folio
Petty cash
Bank
Establish petty cash float
Debit
Credit
200.00
200.00
(b)
Date
June 21
Particulars
Folio
Office expenses (40.00)

Inventory (35.00 + 20.00)
Motor vehicle expenses (25.00)
GST paid (4.00 + 3.50 + 2.50 + 2.00)
Bank
Reimbursement of petty cash
Debit
Credit
40.00
55.00
25.00
12.00
132.00
(c)
Date
June 24
Particulars
Folio
Petty cash
Bank
Increasing petty cash float
Debit
Credit
300.00
300.00
163
CHAPTER 9
BANKING PROCEDURES AND BANK

RECONCILIATIONS
Solution 9.2
Deposit Receipt
Date
DEPOSIT SLIP
One Stop Bank
../../20X.
.././20X.
Toptown
Teller stamp
Cash
$100
0.00
$50
50.00
$117.70
$20
20.00
Cheques
$10
30.00
$401.80
$5
15.00
Credit card
Account Name:
Coins
Amount
Teller &
stamp
No of
items
:
$629.15
2.70
Total
$109.65
117.70
For CR of: Freeman Sporting Goods
$ 0 0 0 6 2 9 .
1 5
456: 190190 9871
One Stop Bank
Solution 9.4
Books of B Johnson
Ledger Extract
Bank
20X5
8 095
May 31
(a)
20X5
May 31
Feb 1
Receipts
Balance
b/d
Payments
Balance
3 287
4 808
8 095
c/d
8 095
4 808
(b)
Bank Reconciliation as at 31 May 20X5
Credit balance as per bank statement
Add: Outstanding deposit
31.5.20X2
_324
6618
324
6 942
2 134
Less: Unpresented cheques

06504
06506
06510
06511
89
267
178
1 600
Debit balance as per bank account
167
______
$4 808
Solution 9.6
(a)
Date
20X3
Jul 1
4
5
9
12
17
21
24
30
31
6
Date
20X3
Jul 1
2
4
7
8
9
15
19
22
25
27
Books of G Fagney
Cash Receipts Journal / List (extract)
Particulars
Folio
Bank
Rec No
693
694
695
696
697
698
699
700
701
702
Sales
M Jeagher
Interest
Capital
D Kaley
Sales
C Bronson
Commission
Sales
D Kaley
Interest
11341
11342
11343
11344
11345
11346
11347
11348
1 1349
11350
Sundries
3 814
3 814
1 092
3 192
3 000
3 416
4 079
585
2 132
1 401
2 100
250
$23 969
Cash Payments Journal / List (extract)

Particulars
Folio
Bank
Chq No
A/cs Rec
Purchases
Motor vehicle
Wages
N Brooks
Purchases
Cartage
Electricity
Drawings
Rates & taxes
Purchases
A/c keeping fee
2 100
3 000
3 416
4 079
585
2 132
1 401
2 100
250
$16 776
$7 193
A/cs Payable
762
11 940
707
548
1 879
201
438
308
872
535
29
$18 219
Sundries
762
11 940
707
548
$548
1 879
201
438
308
872
535
29
$17 671
(b)
20X3
Jul 1
31
Balance
Receipts
b/d
Aug 1
Balance
b/d
General Ledger Extract

Bank
20X3
12 842
Jul 31 Payments
23 969
Balance
36 811
18 592
18 219
18 592
36 811
c/d
(c)
Bank Reconciliation as at 31 July 20X3
31.7.20X3
2 100
11341
11347
11349
762
438
872
18 564
2 100
______
20 664
2 072
______
$18 592
Solution 9.8
(a)
20X5
Mar 1
31
Balance
Receipts
Interest
b/d
Books of S Small
General Ledger (extract)
Bank
20X5
453
Mar 31
Payments
4 397
Petty cash
450
Bank charges
Balance
5 300
168
c/d
4 955
250
20
75
5 300
Chapter 9: Bank Reconciliations
Apr 1
Balance
b/d
75
(b)
Bank Reconciliation as at 31 March 20X5
$
(370)
917
____
547
Debit balance as per bank statement

Plus: Outstanding deposit
31.3.20X5
917
18217
18220
18221
238
61
173
472
___
$75
Solution 9.10
(d)
Debit $6 108
Solution 9.12
(a)
20X8
Jul 1
31
Aug 1
Balance
b/d
Receipts
Dividend income
Interest
Dishonoured cheque
Balance
b/d
Books of Bryden & Co

Bank
20X8
80 906
Jul 31
33 734
475
750
(1 638)
114 227
29 934
Payments
Insurance
Dishonour fee
Bank charges
Balance
83 417
819
40
17
29 934
114 227
c/d
(b)
Bank Reconciliation as at 31 July 20X8
31.7.20X8
1 187
37 352
1 187
______
38 539
8 605
05741
05747
05756
05758
05765
688
1 101
3 190
876
2 750
______
$29 934
Solution 9.14
(a)
20X3
Aug 31
Sep 1
Receipts
Red Spot Realty
Receipts error
Receipts error
Balance
b/d
Books of Backfight Industries

Bank
20X3
5 969
Aug 1
Balance
235
31
Payments
(384)
Payment error
348
Payment error
Drawings
Bank charges
Interest
Balance
6 168
301
b/d
797
4 613
(289)
298
420
22
6
301
6 168
c/d
(b)
Bank Reconciliation Statement as at 31 August 20X3
$
169
Debit balance as per bank statement

31/5/20X3
2 661
04332
04335
04360
04361
94
386
187
_96
(1 597)
2 661
______
1 064
763
______
$301
Solution 9.16
Books of C R Davren
(a)
(extract) Cash receipts journal / list
(extract) Cash payments journal / list

$
Date
20X8
May 1
6
11
18
21
25
28
31
5
13
Receipts
Receipts
Receipts
Receipts
Receipts
Receipts
Receipts
Receipts
Investment interest
Dividends
Date
20X8
May 2
4
7
6 373
934
972
819
3 817
692
2 667
593
375
238
17 480
14
17
20
27
31
7
0756
0757
0758
0759
0760
0761
0762
0763
0764
0765
Deli insurance
1 595
27 323
438
977
1 295
900
1 811
3 991
2 004
1 375
410
26
Transaction fees
59
42 178
(b)
20X8
May 1
31
Jun 1
Balance
Receipts
Interest
Dividends
b/d
Balance
b/d

Bank
20X8
40 453
May 31
16 867
375
238
57 933
15 755
Payments
Insurance
Transaction fees
Balance
41 709
410
59
15 755
57 933
c/d
(c)
Bank Reconciliation Statement as at 3l May 20X8
31.5.20X8
593

0741
0747
0756
0758
0765
Plus: Error to be adjusted by bank
Cheque No: 0760 shown as
should be
Solution 9.18
(a)
Credit $7 980
170
18 835
593
______
19 428
4 303
344
551
1 595
438
1 375
630
1 925
1 295
______
$15 755

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SECTION 1

Copy of cash receipt

Copy of tax invoice

Amounts owing by customers

business entity convention

Plant & mach

Solutions to Accounting A Practical Approach

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

Cost of goods sold

Solutions to Accounting A Practical Approach

11.5.20X9 *Inventory 22 000

7 700 + Capital 15 000 + *Sales

1 430 + Capital 23 000 + *Fees

1 430 + Capital 23 000 + Fees

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

Double entry required

Solutions to Accounting A Practical Approach

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

Solutions to Accounting A Practical Approach

Mortgage (1 years payments)

SERVICE INDUSTRY ACCOUNTING

General Journal of S Ard

Accounts payable W Onder

Accounts Payable W Onder

Solutions to Accounting A Practical Approach

Accounts payable W Onder

General Ledger of S Ard

Accounts payable W Onder

Folio no: 305.1

Folio no: 455

Accounts payable W Onder

Folio no: 135

Folio no: 125

Folio no: 520

Folio no: 767

Chapter 3: Service Industry Accounting

Folio no: 315

Land and buildings

Solutions to Accounting A Practical Approach

General Journal of O Zone

General Ledger of O Zone

Accounts payable J Pot

Chapter 3: Service Industry Accounting

Accounts Payable J Pot

Accounts payable J Pot

General Ledger of O Zone

Folio no: 115.1

Folio no: 125

Accounts payable J Pot

Folio no: 135

Solutions to Accounting A Practical Approach

Accounts Payable J Pot

Accounts payable J Pot

Folio no: 507

Folio no: 767

Folio no: 315

Trial Balance of O Zone

Folio no: 455

Folio no: 305.1

Folio no: 235

Chapter 3: Service Industry Accounting

Accounts payable Lantern

Accounts payable Lantern

Solutions to Accounting A Practical Approach