Accounting: An introduction to principles & practice · Chapter 1: Accounting: ... Chapter 4: Transactions ... An introduction to principles and practice – Solutions Manual chapter

Clarke 8e Accounting:

An introduction to principles & practice

Solutions Manual

Contents

Chapter 1: Accounting: it’s foundations 01

Chapter 2: The accounting equation 06

Chapter 3: Transactions, general journals and double- entry processing

24

Chapter 4: Transactions, specialised journals and double-entry processing

54

Chapter 5: Separate ledgers for accounts receivable and accounts payable

140

Chapter 6: Journals and ledgers for special transactions 205

Chapter 7: Management controls over cash 249

Chapter 8: The general ledger and financial reports 267

Chapter 9: Matching expense and revenue to the accounting period

372

Chapter 10: Preparing final reports from a worksheet 422

Chapter 11: Advanced management reports and correction of errors

467

Chapter 12: Accounting for non-current assets 544

Chapter 13: Payroll preparation and accounting entries 605

Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 1 1

© Cengage Learning Australia 2013

Chapter 1 Accounting: its foundations Question 1.1 Across: 2 non current; 5 current liability; 8 accrual; 10 profit; 11 interpreting; 12 users; 15 analysing; 16 external; 17 revenue; 18 process. Down: 1 current asset; 3 owners equity; 4 accounts payable; 6 internal; 7 service; 9 collecting; 13 expense; 14 assets. Question 1.2 Across: 2 creditors; 5 debtors; 6 stationery; 10 office equipment; 11 accounts receivable; 14 postage; 15 stock on hand; 16 drawings; 17 loan; 19 machinery; 20 computers; 21 inventory. Down: 1 mortgage; 3 cash; 4 land; 7 accounts payable; 8 cash at bank; 9 motor vehicles; 12 capital; 13 building; 18 stock Question 1.3 Across: 1 materiality; 3 disclosure; 4 continuity; 6 historical cost; 9 consistently; 11 conservatism; 12 Australian; 15 one year; 16 cost. Down: 2 indefinitely; 5 going concern; 7 entity; 8 monetary; 10 period; 13 laws; 14 all Question 1.4 Across: 2 public; 5 financial statements; 7 users; 8 accrual; 10 corporations; 11 enforceability; 14 framework; 15 external; 16 balance sheet; 17 companies; 19 accrual; 20 assumptions. Down: 1 AASB; 3 consistency; 4 fair; 6 income statement; 9 going concern; 12 international; 13 entity; 14 financial; 18 IASB Question 1.5 Across: 5 unlimited; 6 partners; 8 agreement; 9 silent; 12 shareholders; 13 partnership; 14 sole trader; 15 limited. Down: 1 corporations; 2 ltd; 3 directors; 4 pty; 7 shares; 10 proprietary; 11 registered; 13 public Question 1.6 a deposited; cashed; b payee; drawer

Question 1.7

2 June 2016 RECEIPT NO. 454

J Adam - cheque

One hundred dollars 10¢

Cash sale

100.10 J Lawson

6 June 2016 RECEIPT NO. 455

Cash

Eighty three dollars 60 ¢

Cash sale

83.60 J Lawson



Question 1.8 a Debit card – Payer presents card to payee who swipes it. Funds are transferred from the

business bank account to supplier’s account. Electronic funds transfer (EFT) – funds transferred from business bank account to

supplier’s account using a computer or similar device. b EFTPOS – customers pay the business using a debit card or bank issued credit card. Electronic funds transfer (EFT) – A customer can transfer money directly from their bank

account to the business bank account using a computer or similar device. Question 1.9 a

Bank Deposit Batch Report Date 15 Apr 2016

Batch item Cheque details Cash Drawer Bank Amount Notes Coin

$ c $ c $ c Receipts (Nos 375–76) Cash 45 00 Cheques M Eckett NSW; Newcastle 147 65 Cash sale dockets (Nos 006–007) Cash 80 00 3 00 Cheques Cash register tape Cash 675 00 50 Cheques N Leighton Victoria; Broken Hill 225 00 J Walsh Regal; Sydney 42 70 M Ivetic NSW; Hay 98 00 Totals 513 35 800 00 3 50 Deposit details $ c Cash 803 50 Cheques 513 35 Total deposit 1 316 85

b Natural Australia Bank

PHOSPHOROUS BRANCH DEPOSIT

DATE 15 April 2016 CREDIT (Deposit to the account of) NOTES 800 00

Billie Taylor COIN 3 50

DRAWER BANK BRANCH CHEQUES

M Eckett NSW Newcastle 147 65

N Leighton Victoria Broken Hill 225 00

J Walsh Regal Sydney 42 70

M Ivetic NSW Hay 98 00

TOTAL 1 316 85



Question 1.10 a source; b control; c cheque; d receipt; duplicate receipt; e receives; original; f sends; carbon copy; g memo

Question 1.11 a Customer purchase order; inventory price list; despatch docket b Purchase order; goods received advice Question 1.12 a due care; b integrity; c objectivity; d professional competence; e confidentiality; f professional behaviour

Question 1.13 The explanation should include the topic matters covered in the text; including the standards. Question 1.14 Refer to text; topic matters covered: basic accounting terms. Question 1.15 Horizontal terms: 2 analysing; 3 non-current; 4 revenue; 5 accounts payable; 6 service; profit; 7 asset; 8 collecting; 9 process; 14 current liability; 18 users; 20 interpreting. Vertical terms: 7–18 owners equity; 16–18 tax. Diagonal terms: 9–15 accrual; 19–8 current asset; 20–14 expense Question 1.16 a postage; b loan; c drawings; d mortgage; e accounts receivable; f cash at bank; g debtors; h creditors; i motor vehicles; j building; k machinery; l capital; m cash; n bank; o land; p accounts payable; q office equipment; r inventory; s computers; t sales; u stock on hand; v stock

Question 1.17 1 period convention; 2 entity convention; 3 going concern convention; 4 recognition of law convention; 5 entity convention; 6 historical cost convention; 7 monetary convention; 8 period convention; 9 historical cost convention; 10 consistency doctrine; 11 disclosure doctrine; 12 disclosure doctrine; 13 materiality doctrine Question 1.18 a continuity of activity; b going concern; c historical record; d conservatism; e recognition of law; f materiality; g accounting period; h consistency; i accounting entity; j disclosure; k historical cost; l monetary; m business entity Question 1.19 Refer to text ‘Purpose or objective of standards’. Question 1.20 Refer to text ‘Framework for the preparation and presentation of financial statements (the Framework)’.



Question 1.21 AASB 101 Presentation of Financial Statements AASB 102 Inventories AASB 107 Statement of Cash Flows AASB 112 Income Taxes AASB 116 Property; Plant and Equipment AASB 127 Separate Financial Statements AASB 134 Interim Financial Reporting AASB 137 Provisions, Contingent Liabilities and Contingent Assets AASB 138 Intangible Assets AASB 141 Agriculture Question 1.22 (Note: vertical = v; diagonal = d) a corporations (v)18–7; b ltd (v)13–11; c public (v)9–4; d directors (d)16–8; e pty (d)1–3; f unlimited (d)2–10; g partners (v)11–4; h shares (v)20–15; i agreement (v)11–3; j silent (d)3–8; k proprietary (d)4–14; l registered (d)12–3; m shareholders (v)18–7; n partnership (v)12–2; o sole trader (v)8–17; p limited (v)13–19

Question 1.23 $324.17 Question 1.24 3 March: $2413.84; 6 March: $2505.03; 9 March: $1225.07; 12 March: $2950.20; 23 March: $402.05; 28 March: $3045.90; Total for March: $12 542.09 Question 1.25 Refer to text; topic matters covered in ‘Ethics as it applies to accounting’. Question 1.26 Refer to text; topic matter ‘Accounting conventions or assumptions and accounting doctrines’. Question 1.27

Dubbo Book Nook

Phone/fax: (02) 6881 3404 Main Street, Dubbo NSW 2830 SOLD TO ABN: 12 345 467 890 Dunedoo Soil Co-op Tax Invoice No. 13171 Mendooran Road 27 July 2010 Dunedoo 2844 Customer No. Order Number Trading Terms 1612 59 net 30 days

DESCRIPTION QTY UNIT PRICE AMOUNT How Can I Use Herbs in my Daily Life 2 40.00 80.00 by Isabell Shipard Add 10% GST 8.00 TOTAL AMOUNT PAYABLE $88.00 E&OE

27 July 2016

ADD 10% GST 8.00



Question 1.28 Question 1.29 a A copy of each sales invoice is normally retained by the business. These would be filed in

invoice number order. b Purchase invoices should be filed with a copy of the relevant purchase invoice and goods

received advice; normally in cheque number of EFT reference number order. They should be marked as ‘Paid’ with the relevant reference number written on them.

BOURKE SUPPLIERS Co Tax Invoice Supply Street, Bourke NSW 2840 41987 (02) 6872 2287 ABN: 98 765 432 187

SOLD TO DELIVER TO

Louth Purchasing Co Shed behind Wilcannia Road Shindy’s Inn Louth 2840 generator

Date Customer Number Customer Order Number 6 April 2010 LOU05 LPC 8995 Description Qty Unit Amount Price Payable

Nudger NG14 Gate 3 380.00 1140.00 Add 10% GST 114.00 TOTAL AMOUNT PAYABLE $1254.00 E&OE

6 April 2016



Chapter 2 The accounting equation Question 2.1

Business commenced with: Assets = Liabilities + Owner’s Equity Assets $5000; owner’s equity $5000 5 000 = 5 000

Question 2.2 Business commenced with: Assets = Liabilities + Owner’s Equity a Assets $15 000 15 000 = 15 000 b Assets $25 000 25 000 = 25 000 c Assets $20 000, liabilities $5000, owner’s

equity $15 000 20 000 = 5 000 + 15 000

d Assets $30 000, liabilities $7000 30 000 = 7 000 + 23 000 e Assets $10 000, owner’s equity $7000 10 000 = 3 000 + 7 000 f Liabilities $15 000, owner’s equity $70 000 85 000 = 15 000 + 70 000

Question 2.3 Business commenced with: Assets = Liabilities + Owner’s Equity a Assets cash at bank $12 000, motor vehicle

$25 000, owner’s equity $37 000 37 000 = 37 000

b Assets cash at bank $8 000, machinery $20 000, office equipment $10 000

38 000 = 38 000

c Cash at bank $5000, office equipment $30 000, motor vehicle $20 000, inventory $5000, liability (a loan) $10 000

60 000 = 10 000 + 50 000

d Cash at bank, a loan from D Shark $25 000, owner’s equity $50 000

75 000 = 25 000 + 50 000

Question 2.4 Assets

= Liabilities

+ Owner’s Equity

+ (Revenue – Expense)

a. Bank + 600 a. Capital + 3 600

b. [receipt] + 470 b. Sales of Service + 470 b. [payment] – 80 b. less Repairs – 80 = 990 = Profit [470-80] =

a. Equipment + 3 000

3 990 = 0 + 3 990

Question 2.5 Assets $ = Liabilities $ + Owner’s Equity $

a. Bank + 6 000 b. Accounts Payable + 3

a. Capital + 31 000 c. [payment] – 2 200 d. + 3 000 d. [receipt] + 3 000 e. + 4 500 = 6 800 = 38 500 b. Inventory + 3 300 c. + 2 200 = 5 500 a. Motor Vehicle +25 000 e. Office Equipment + 4 500 41 800 = 3 300 + 38 500




Bank 3 000 Accounts Payable 1 500 Capital 48 700 a. [receipt] + 10 000 b. – 1 500 b. [payment] – 1 500 c. + 3 080 d. [payment] – 1 210 3 080 10 290 a. Bank Loan + 10 000 Inventory 2 200 c. + 3 080 d. + 1 210 6 490 Premises 45 000 61 780 = 13 080 + 48 700


Bank 2 000 c. Accounts

+ 8 250 Capital 46 000 a. – 1 012 d. + 1 320 b. + 15 000 f. – 8 250 e. – 2 530 = 1 320 f. – 8 250 b. Bank Mortgage + 15 000 = 5 208 Inventory 1 000 a. + 1 012 d. + 1 320 = 3

Motor Vehicle 8 000 Premises 35 000 c. Machinery + 8 250 e. + 2 530 = 10 780 62 320 = 16 320 + 46 000


Bank 2 000 dr c. Accounts

+ 8 250 cr Capital 46 000 cr a. – 1 012 cr d. + 1 320 cr

b. + 15 000 dr f. – 8 250 dr

e. – 2 530 cr = 1 320 cr f. – 8 250 cr b. Bank Mortgage + 15 000 cr

= 5 208 dr

Inventory 1 000 dr a. + 1 012 dr

d. + 1 320 dr

= 3 332 dr

continued



Question 2.8 continued Assets $ = Liabilities $ + Owner’s Equity $

Motor Vehicle 8 000 dr

Premises 35 000 dr

c. Machinery + 8 250 dr e. + 2 530 dr

= 10 780 dr 62 320 = 16 320 + 46 000

Question 2.9 Account balances of Fred McKay as at 31 March 2016

Assets = Liabilities + Owner’s Equity Current Assets Current Liabilities Capital 32 000 Bank 15 000 Accounts Payable 8 000 Inventory 10 000 Non-current Liabilities

Non-current Assets Loan – J Flynn 35 000 Motor Vehicles 30 000 Mortgage 50 000 Premises 65 000 Computers 5 000 125 000 = 93 000 + 32 000

Question 2.10 Account balances of Margaret Robertson as at 31 March 2016

Assets Liabilities Owner’s Equity Current Assets Current Liabilities Capital 105 000

Cash at Bank 25 000 Accounts Payable 35 000 Inventory 40 000 Non-current Liabilities

Non-current Assets Loan – A Pendix 100 000 Land & Buildings 120 000 Mortgage – Union 45 000 Machinery 80 000 Office Equipment 20 000 285 000 = 180 000 + 105 000

Question 2.11

Account Groups and Numbers Account Name No.

1xx Assets Current Assets [debit] Bank 100 Cash on Hand 101 Inventory 102 Petty Cash 103 Non-current Assets Computers 150 Land and Buildings 151 Machinery 152 Motor Vehicles 153

continued



Question 2.11 continued Account Groups and Numbers continued

2xx Liabilities Current Liabilities [credit] Accounts Payable 200 Non-current Liabilities Loan from P Broker 250 Mortgage on Land & Buildings 251

3xx Owner’s Equity Capital 300 [credit]

Question 2.12 Account Groups and Numbers

Account Name No. 1xx Assets Current Assets

[debit] Inventory 100 Bank 101 Cash on Hand 102 Non-current Assets Premises 150 Motor Vehicles 151 Office Equipment 152 Machinery 153 Computers 154

2xx Liabilities Current Liabilities [credit] Accounts Payable 200 Non-current Liabilities Loan from Bank 250 Mortgage 251

3xx Owner’s Equity Capital 300 [credit]

Question 2.13 Balance Sheet of Fred McKay

as at 31 March 2016 Current Assets

Bank 15 000

Inventory 10 000 25 000

Non-current Assets

Motor Vehicles 30 000

Premises 65 000

Computers 5 000 100 000

Total Assets 125 000

Current Liabilities

Accounts Payable 8 000

Non-current Liabilities

Loan from J Flynn 35 000

Mortgage 50 000 85 000

less Total Liabilities 93 000

Net Assets [125 000 – 93 000] 32 000



Question 2.13 continued Balance Sheet of Fred McKay continued

as at 31 March 2016 Owner’s Equity Capital 32 000

Total Owner’s Equity 32 000

Question 2.14 Balance Sheet of Margaret Robertson

as at 31 March 2016 Current Assets Bank 25 000 Inventory 40 000 65 000 Non-current Assets Land & Buildings 120 000 Machinery 80 000 Office Equipment 20 000 220 000 Total Assets 285 000 Current Liabilities Accounts Payable 35 000 Non-current Liabilities Loan from A Pendix 100 000 Mortgage – Credit Union 45 000 145 000 less Total Liabilities 180 000 Net Assets [285 000 – 180 000] 105 000 Owner’s Equity Capital 105 000 Total Owner’s Equity 105 000

Question 2.15 Balance Sheet of A Argenton

as at 6 July 2016 Current Assets Bank 6 800 Inventory 5 500 12 300 Non-current Assets Motor Vehicles 25 000 Office Equipment 4 500 29 500 Total Assets 41 800 Current Liabilities Accounts Payable 3 300 less Total Liabilities 3 300 Net Assets [41 800 – 3 300] 38 500 Owner’s Equity Capital 38 500 Total Owner’s Equity 38 500



Question 2.16

Balance Sheet of P Dumont as at 31 August 2016

Current Assets Bank 10 290 Inventory 6 490 16 780 Non-current Assets Land & Buildings 45 000 Total Assets 61 780 Current Liabilities Accounts Payable 3 080 Non-current Liabilities Loan – Bank 10 000 less Total Liabilities 13 080 Net Assets [61 780 – 13 080] 48 700 Owner’s Equity Capital 48 700 Total Owner’s Equity 48 700

Question 2.17

Balance Sheet of P Barrack as at 30 September 2016

Current Assets Bank 5 208 Inventory 3 332 8 540 Non-current Assets Motor Vehicles 8 000 Premises 35 000 Machinery 10 780 53 780 Total Assets 62 320 Current Liabilities Accounts Payable 1 320 Non-current Liabilities Mortgage 15 000 less Total Liabilities 16 320 Net Assets [62 320 – 16 320] 46 000 Owner’s Equity Capital 46 000 Total Owner’s Equity 46 000



Question 2.18 Assets debit $ = Liabilities credit $ + Owner’s Equity credit $

a. Bank + 12 000 dr a. Mortgage + 7 500 cr a. Capital + 52 000 cr b. – 2 310 cr d. Acc’nts Payable + 2 915 cr c. + 22 500 cr c. + 7 500 dr g. + 8 800 cr 74 500 cr e. – 4 620 cr i. – 2 915 dr

f. + 10 000 dr j. + 4 070 cr

h. – 3 960 cr k. – 8 800 dr

i. – 2 915 cr = 4 070 cr

k. – 8 800 cr f. Loan from V Alan + 10 000 cr

= 6 895 dr

a. Inventory + 3 000 dr

b. + 2 310 dr

d. + 2 915 dr

h. + 3 960 dr

j. + 4 070 dr

= 16 255 dr

a. Building + 37 000 dr

a. Machinery + 7 500 dr

e. + 4 620 dr

g. + 8 800 dr

= 20 920 dr

c. Motor Vehicle + 15 000 dr

96 070 = 21 570 + 74 500

Account Groups and Numbers Account Name No.

1xx Assets Current Assets [debit] Bank 100

Inventory 101

Non-current Assets

Buildings 150

Machinery 151

Motor Vehicle 152

2xx Liabilities Current Liabilities

[credit] Accounts Payable 200


Mortgage 250

Loan from V Alan 251

3xx Owner’s Equity Capital 300

[credit]



Question 2.18 continued Balance Sheet of K Pullen

as at 30 September 2016 Current Assets Bank 6 895 Inventory 16 255 23 150 Non-current Assets Building 37 000 Machinery 20 920 Motor Vehicles 15 000 72 920 Total Assets 96 070 Current Liabilities Accounts Payable 4 070 Non-current Liabilities Mortgage 7 500 Loan from V Alan 10 000 17 500 less Total Liabilities 21 570 Net Assets [62 320 – 16 320] 74 500 Owner’s Equity Capital 74 500 Total Owner’s Equity 74 500

Question 2.19 Account Name Group Name Group

Abbrev dr/cr A/c

No.

Accounts Payable Current Liability CL cr 200 Accounts Receivable Current Asset CA dr 100 Bank Current Asset CA dr 101 Capital Owner’s Equity OE cr 300 Commission Received Revenue R cr 400 Cost of Goods Sold Expense E dr 500 Discount Allowed Expense E dr 501 Discount Received Revenue R cr 401 Interest Expense E dr 502 Inventory Current Asset CA dr 102 Land and Buildings Non-current Asset NCA dr 150 Loan (repayable in 10 months) Current Liability CL cr 201 Machinery Non-current Asset NCA dr 151 Mortgage on Land and Buildings Non-current Liability NCL cr 250 Motor Vehicles Non-current Asset NCA dr 152 Office Equipment Non-current Asset NCA dr 153 Rent Received Revenue R cr 402 Sales Revenue R cr 403 Telephone Expense E dr 503 Wages and Salaries Expense E dr 504




Abbrev dr/cr A/c

No. Stationery Expense E dr 500 Sales Revenue R cr 400 Salaries Expense E dr 501 Rent Expense E dr 502 Postage Expense E dr 503 Premises Non-current Asset NCA dr 150 Motor Vehicles Non-current Asset NCA dr 151 Loan (repay in 18 months) Non-current Liability NCL cr 250 Inventory Current Asset CA dr 100 Interest Received Revenue R cr 401 Equipment Non-current Asset NCA dr 152 Electricity Expense E dr 504 Computers Non-current Asset NCA dr 153 Commission Expense E dr 505 Cartage Outwards Expense E dr 506 Cartage Inwards Expense E dr 507 Capital Owner’s Equity OE cr 300 Bank Overdraft Current Liability CL cr 200 Accounts Receivable Current Asset CA dr 101 Accounts Payable Current Liability CL cr 201

Question 2.21 Assets debit $ = Liabilities credit $ + Owner’s Equity credit $

+ (Revenue [cr] – Expense [dr]) Bank 6 800 dr A/c Payable 3 300 cr Capital 38 500 cr

a. + 2 475 dr c. – 3 300 dr a. Sales + 2 475 cr

c. – 3 300 cr d. + 2 860 cr b. + 3 740 cr

e. – 1 595 cr j. – 2 860 dr = 6 215 cr

f. – 900 cr = 0 a. Cost of Goods Sold – 1 210 dr

g. – 110 cr b. – 1 540 dr

h. – 1 540 cr = – 2 750 dr

i. + 3 740 dr f. Wages – 900 dr

j. – 2 860 cr g. Electricity – 110 dr

= 2 710 dr = – 3 760 dr

Inventory 5 500 dr Profit [6 215 – 3 760] = 2 455 cr

a. – 1 210 cr

b. – 1 540 cr

d. + 2 860 dr

e. + 1 595 dr

= 7 205 dr

b. A/c Receivable + 3 740 dr

i. – 3 740 cr

= 0

Motor Vehicles 25 000 dr

Office Equipment 4 500 dr

h. Machinery + 1 540 dr 40 955 = 0 + 40 955



Question 2.21 continued Balance Sheet of A Argenton

as at 31 July 2016 Current Assets Bank 2 710 Inventory 7 205 9 915 Non-current Assets Motor Vehicles 25 000 Office Equipment 4 500 Machinery 1 540 31 040 Total Assets 40 955 Net Assets [40 955 – 0] 40 955 Owner’s Equity Capital 38 500 add Profit 2 455 Total Owner’s Equity 40 955

Question 2.22

Balance Sheet of G Cooranbong as at 31 March 2016

Current Assets Bank 2 500 Accounts Receivable 1 800 Inventory 1 000 5 300 Non-current Assets Office Equipment 3 500 Computers 6 000 9 500 Total Assets 14 800 Current Liabilities Accounts Payable 900 Non-current Liabilities Bank Loan 5 000 less Total Liabilities 5 900 Net Assets [14 800 – 5 900] 8 900 Owner’s Equity Capital 7 000 add Profit 1 900 8 900 Total Owner’s Equity 8 900



Question 2.23 Assets debit $ = Liabilities credit $ + Owner’s Equity credit $ $

+ (Revenue [cr] – Expense [dr]) a. Bank + 7 000 dr g. A/c Payab + 6 050 cr a. Capital + 19 100 cr

b. – 2 090 cr h. + 2 365 cr e. + 15 860 cr

c. – 2 255 cr l. – 6 050 dr = 34 960 cr

e. + 2 000 dr m. – 2 365 dr d. Sales + 4 070 cr

f. + 7 500 dr = 0 i. + 3 575 cr

i. + 3 575 dr f. A Relo–loan + 7 500 cr j. + 968 cr

k. – 3 850 cr = 8 613 cr

l. – 6 050 cr d. Cost of Goods Sold – 1 980 dr

m. – 2 365 cr i. – 1 925 dr

n. + 4 070 dr j. – 385 dr

= 7 535 dr = 4 290 dr

c. Inventory + 2 255 dr Profit [8 613 – 4 290] = 4 323 cr

d. – 1 980 cr

h. + 2 365 dr

i. – 1 925 cr

j. – 385 cr

= 330 dr

d. A/c Receivable + 4 070 dr

j. + 968 dr

n. – 4 070 cr

= 968 dr

a. Equipment +12 100 dr

g. + 6 050 dr

=18 150 dr

b. Machinery + 2 090 dr

k. + 3 850 dr

= 5 940 dr

e. Motor Vehicle +13 860 dr

46 783 = 7 500 + 39 283



Question 2.23 finalised Balance Sheet of D Brad

as at 31 January 2016 Current Assets Bank 7 535 Inventory 330 Accounts Receivable 968 8 833 Non-current Assets Equipment 18 150 Machinery 5 940 Motor Vehicle 13 860 37 950 Total Assets 46 783 Non-current Liabilities A Relo – Loan 7 500 less Total Liabilities 7 500 Net Assets [46 783 – 7 500] 39 283 Owner’s Equity Capital 34 960 add Profit 4 323 39 283 Total Owner’s Equity 39 283


Abbrev dr/cr A/c

No. Accounts Payable Current Liability CL cr 200 Accounts Receivable Current Asset CA dr 100 Advertising Expense E dr 500 Bad Debt expense Expense E dr 501 Bank Overdraft Current Liability CL cr 201 Capital Owner’s Equity OE cr 300 Cartage Inwards Expense E dr 502 Dividends Received Revenue R cr 400 Electricity Expense E dr 503 Interest Expense E dr 504 Interest Received Revenue R cr 401 Inventory Current Asset CA dr 101 Investment in Shares Non-current Asset NCA dr 150 Long Term Loan Non-current Liability NCL cr 250 Motor Vehicles Non-current Asset NCA dr 151 Office Equipment Non-current Asset NCA dr 152 Petty Cash Current Asset CA dr 102 Premises Non-current Asset NCA dr 153 Rent Received Revenue R cr 402 Salaries Expense E dr 505 Sales Revenue R cr 403 Stationery Expense E dr 506 Telephone Expense E dr 507 Vehicle Expense Expense E dr 508



Question 2.25

Profit Calculation $ $ Sales 11 000 less Cost of Goods Sold 3 300 less Other expenses Rent 1 100 Salaries 2 000 Vehicle Expense 550 – 6 950 = Profit 4 050

Balance Sheet of S T David

as at 30 April 2016 Current Assets Accounts Receivable 3 300 Bank 1 500 Inventory 880 5 680 Non-current Assets Computers 8 800 Motor Vehicles 22 000 Office Furniture 6 600 37 400 Total Assets 43 080 Current Liabilities Accounts Payable 330 Bank Loan 4 000 4 330 less Total Liabilities 4 330 Net Assets [43 080 – 4 330] 38 750 Owner’s Equity Capital 34 700 add Profit 4 050 38 750 Total Owner’s Equity 38 750

From the accounting equation and the balance sheet format A – L = OE. Net Assets calculate to $38 750 so Total Owner’s Equity must also be $38 750. The unknown Capital value added to the profit of $4 050 = $38 750 can be stated as X + 4 050 = 38 750 or X = 38750 – 4050, which is $34 700. To prove it, add the values in the Owner’s Equity.



Question 2.26 Business

Transaction Account Names Debit or

Credit Chart of

Account Group Account increase

or decrease Commenced business with cash

Bank debit CA increase

Capital credit OE increase

Purchased inventory with the business debit card

Inventory debit CA increase

Bank credit CA decrease

Sold inventory for cash


Sales credit R increase

Cost of Goods Sold debit E increase

Inventory credit CA decrease

Purchased postage stamps with business debit card

Postage debit E increase


Sold inventory on credit

Accounts Receivable debit CA increase






Credit Chart of


or decrease Commenced business with cash and inventory




Purchased stationery with business debit card

Stationery debit E increase


Sold inventory on credit





Purchased motor vehicle with bank cheque

Motor Vehicle debit NCA increase


Purchased inventory on credit


Accounts Payable credit CL increase





Credit Chart of


or decrease Remitted salary to receptionist

Salary – Receptionist debit E increase


Repairs to doctors motor vehicle on credit

Motor Vehicle Expense debit E increase


Remitted fees were received from consultations


Fees – Consultations credit R increase

Received stationery on credit



Remitted payment for surgical supplies previously received on credit

Accounts Payable debit CL decrease




Credit Chart of


or decrease Dental fees deposited


Dental Fees credit R increase

Remitted salary for dental nurse

Salary – Dental Nurse debit E increase


Purchased several types of filling materials on credit

Filling Materials debit E increase


Purchased new surgery equipment which had to be paid by debit card

Surgery Equipment debit NCA increase


Used banking facilities to pay for telephone account

Telephone debit E increase






Credit Chart of


or decrease Remitted wages

Wages debit E increase





Sale of inventory on credit





Received remittance from customer for inventory sold earlier in the month Bank debit CA increase

Accounts Receivable credit CA decrease

Purchased office equipment with debit card

Office Equipment debit NCA increase




Credit Chart of


or decrease Remittance for rent was received


Rent Received credit R increase

Sale of inventory for cash








Remittance processed to supplier for inventory purchased on credit last month Accounts Payable debit CL decrease






Credit Chart of


or decrease Commenced business with cash and motor vehicle




Purchase of inventory paying with business debit card



Sale of inventory on credit





Purchased inventory on credit Inventory debit CA increase


Purchase of machinery on credit

Machinery debit NCA increase


Remittance received for sale of inventory Bank debit CA increase


Purchased stationery on credit



Salaries remitted Salaries debit E increase


Mortgage funds remitted from bank


Mortgage from Bank credit NCL increase

Used debit card to buy equipment Equipment debit NCA increase


Paid for stationery purchased earlier on credit



Received remittance for rental property Bank debit CA increase

Rent Received credit R increase

Received funds from customer for inventory sold earlier on credit Bank debit CA increase






Credit Chart of


or decrease Purchased inventory on credit



Purchased motor vehicle with bank cheque



Remitted funds for payment of rent

Rent debit E increase


Funds for a loan were received from Credit Union Bank debit CA increase

Credit Union Loan credit NCL increase

Cash sale of inventory





Additional computer and machinery introduced by owner Computer debit NCA increase

Machinery debit NCA increase


Remittance processed to supplier for inventory purchased earlier on credit



Sale of inventory on credit Accounts Receivable debit CA increase




Paid for advertising by electronic remittance

Advertising debit E increase


Received cheque from customer for inventory sold earlier on credit Bank debit CA increase


Used debit card to buy office equipment Office Equipment debit NCA increase


Electronic remittance received for commission


Commission Received credit R increase



Chapter 3 Transactions, general journals and double-entry processing Question 3.1

General Journal of Cheryl’s Cyclist Courier Services GJ 1 Date Particulars Ref Debit Credit

1 Sep 16 Bank 600 a Equipment 3 000 Capital 3 600

Assets on commencement of business

8 Sep 16 Bank [receipt] 517 b Courier Fees 470

GST Payable 47 Courier fees for the week deposited electronically into bank

Repairs to Equipment 80 GST Receivable 8

Bank [payment] 88 Repair cycling equipment and clothing, paid electronically

Question 3.2 General Journal of Louise Value Plus GJ 1

Date Particulars Ref Debit Credit 1 Oct 16 Bank 6 500

a Computer 2 000 Motor Vehicle 8 500 Capital 17 000


2 Oct 16 Inventory 2 200 b GST Receivable 220

Bank [payment] 2 420 Cash purchase of inventory

Inventory 1 050 GST Receivable 105

Accounts Payable Control 1 155 Credit purchase of inventory from O Randolf

4 Oct 16 Bank [receipt] 1 276 c Sales 1 160

GST Payable 116 Cash sales

Cost of Goods Sold 800 Inventory 800 Cost of goods sold for cash

5 Oct 16 Accounts Receivable Control 550 d Sales 500 GST Payable 50

Sale of goods on credit to R Olsen Cost of Goods Sold 300

Inventory 300 Cost of goods sold on credit to R Olsen



Question 3.3

Perpetual Inventory Periodic Inventory a. Debit Credit a. Debit Credit Bank 15 000 Bank 15 000 Inventory 7 000 Inventory 7 000 Capital 22 000 Capital 22 000 Assets on commencement Assets on commencement b. b. Bank 4 950 Bank 4 950 Sales 4 500 Sales 4 500 GST Payable 450 GST Payable 450 Cash sale Cash sale Cost of Goods Sold 2 800 Inventory 2 800 Cost of cash sale c. c. Inventory 3 000 Purchases 3 000 GST Receivable 300 GST Receivable 300 Accounts Payable Ctrl 3 300 Accounts Payable Ctrl 3 300 Credit purchase of inventory Credit purchase of inventory

d. d. Accounts Receivable Control 5 500 Accounts Receivable Control 5 500 Sales 5 000 Sales 5 000 GST Payable 500 GST Payable 500 Credit sale Credit sale

Cost of Goods Sold 3 100 Inventory 3 100 Cost of credit sale e. e. Inventory 2 500 Purchases 2 500 GST Receivable 250 GST Receivable 250 Bank 2 750 Bank 2 750 Cash purchase of inventory Cash purchase of inventory



Question 3.4 perpetual inventory applies

General Journal of E Stoddart GJ 1 Date Particulars Ref Debit Credit

1 Mar 16 Bank 110 Sales 100 GST Payable 10 Cash sale Cost of Goods Sold 60 Inventory 60

Cost of cash sale 3 Mar 16 Inventory 300 GST Receivable 30 Bank 330 Cash purchase of inventory 5 Mar 16 Accounts Receivable Control 2 750 Sales 2 500 GST Payable 250 Credit sale to M Miller Cost of Goods Sold 1 500 Inventory 1 500 Cost of credit sale to M Miller 7 Mar 16 Inventory 660 GST Receivable 66 Accounts Payable Control 726 Credit purchase of inventory from A Nubian 9 Mar 16 Stationery 50 GST Receivable 5 Accounts Payable Control 55 Credit purchase of stationery from Grafton Stationery

11 Mar 16 Electricity 200 GST Receivable 20 Bank 220 Payment of electricity

13 Mar 16 Motor Vehicle 23 300 GST Receivable 2 330 Accounts Payable Control 25 630 Purchase of motor vehicle on credit from Auto Valley

15 Mar 16 Accounts Payable Control 25 630 Bank 25 630 Payment of account payable, Auto Valley

17 Mar 16 Bank 2 750 Accounts Receivable Control 2 750 Receipt from account receivable, M Miller

19 Mar 16 Bank 550 Sales 500 GST Payable 50 Cash sale Cost of Goods Sold 300 Inventory 300 Cost of cash sale



Question 3.5 periodic inventory applies

General Journal of E Stoddart GJ . . Date Particulars Ref Debit Credit

1 Mar 16 Bank 110 Sales 100 GST Payable 10 Cash sale

3 Mar 16 Purchases 300 GST Receivable 30 Bank 330 Cash purchase of inventory

5 Mar 16 Accounts Receivable Control 2 750 Sales 2 500 GST Payable 250 Credit sale to M Miller

7 Mar 16 Purchases 660 GST Receivable 66 Accounts Payable Control 726 Credit purchase of inventory from A Nubian

9 Mar 16 Stationery 50 GST Receivable 5 Accounts Payable Control 55 Credit purchase of stationery from Grafton Stationery

11 Mar 16 Electricity 200 GST Receivable 20 Bank 220 Payment of electricity

13 Mar 16 Motor Vehicle 23 300 GST Receivable 2 330 Accounts Payable Control 25 630 Purchase of motor vehicle on credit from Auto Valley

15 Mar 16 Accounts Payable Control 25 630 Bank 25 630 Payment of account payable, Auto Valley

17 Mar 16 Bank 2 750 Accounts Receivable Control 2 750 Receipt from account receivable, M Miller

19 Mar 16 Bank 550 Sales 500 GST Payable 50

Cash sale




General Journal of P Barrack GJ 1 Date Particulars Ref Debit Credit

1 Sep 16 Bank 2 000 Inventory 1 000 Motor Vehicle 8 000 Premises 35 000

Capital 46 000 Assets on commencement of business

3 Sep 16 Inventory 920 GST Receivable 92 Bank 1 012 Purchase of inventory for cash

4 Sep 16 Bank 15 000 Mortgage 15 000 Mortgage funds over premises received from bank

6 Sep 16 Machinery 7 500 GST Receivable 750 Accounts Payable Control 8 250 Credit purchase of machinery from A Vince

7 Sep 16 Inventory 1 200 GST Receivable 120

Accounts Payable Control 1 320 Assets on commencement of business

10 Sep 16 Machinery 2 300 GST Receivable 230 Bank 2 530 Cash purchase of machinery

13 Sep 16 Accounts Payable Control 8 250 Bank 8 250 Payment of account payable, A Vince





1 Sep 16 Bank 2 000 Inventory 1 000 Motor Vehicle 8 000 Premises 35 000

Capital 46 000 Assets on commencement of business

3 Sep 16 Purchases 920 GST Receivable 92 Bank 1 012 Purchase of inventory for cash

4 Sep 16 Bank 15 000 Mortgage 15 000 Mortgage funds over premises received from bank

6 Sep 16 Machinery 7 500 GST Receivable 750 Accounts Payable Control 8 250 Credit purchase of machinery from A Vince

7 Sep 16 Purchases 1 200 GST Receivable 120

Accounts Payable Control 1 320 Assets on commencement of business

10 Sep 16 Machinery 2 300 GST Receivable 230 Bank 2 530 Cash purchase of machinery

13 Sep 16 Accounts Payable Control 8 250 Bank 8 250 Payment of account payable, A Vince

Question 3.8

Inventory Accounts Receivable Control GST Receivable

Motor Vehicle Accounts Payable Control GST Payable

Loan from D Bank Capital Sales

Discount Received Purchases Discount Allowed

Bad Debts



Question 3.9 Assets

Current Assets 100 Accounts Receivable 101 Inventory 102 Bank 103 GST Receivable

Non-current Assets 150 Government Bonds 151 Machinery 152 Plant and Equipment 153 Land and Buildings

Liabilities Current Liabilities

200 Accounts Payable Control 201 GST Payable

Non-current Liabilities 250 Mortgage

Owner’s Equity 300 Capital 301 Drawings

Revenues Revenue

400 Sales Other Revenue

410 Gain on Disposal of Non-current Assets 411 Interest Received 412 Rent Received 413 Commission Received

Expenses Cost of Goods Sold

500 Purchases Selling and Distribution (or Marketing) Expenses

520 Advertising 521 Commission

General and Administrative Expenses 540 Loss on Disposal of Non-current Assets 541 Wages 542 Stationery

Financial and Borrowing Expenses 560 Discount Allowed 561 Bad Debts 562 Interest





1 Sep 16 Bank 100 2 000 Inventory 101 1 000 Motor Vehicle 150 8 000 Premises 151 35 000

Capital 300 46 000 Assets on commencement of business

3 Sep 16 Inventory 101 920 GST Receivable 102 92 Bank 100 1 012 Purchase of inventory for cash

4 Sep 16 Bank 100 15 000 Mortgage on Premises 250 15 000 Mortgage funds over premises received from bank

6 Sep 16 Machinery 152 7 500 GST Receivable 102 750 Accounts Payable Control 200 8 250 Credit purchase of machinery from A Vince

7 Sep 16 Inventory 101 1 200 GST Receivable 102 120

Accounts Payable Control 200 1 320 Assets on commencement of business

10 Sep 16 Machinery 152 2 300 GST Receivable 102 230 Bank 100 2 530 Cash purchase of machinery

13 Sep 16 Accounts Payable Control 200 8 250 Bank 100 8 250 Payment of account payable, A Vince



Question 3.10 continued (perpetual inventory applies)

General Ledger of P Barrack Bank 100

1 Sep 16 Capital GJ1 2 000 3 Sep 16 Inventory GJ1 1 012 4 Sep 16 M’gage Premises GJ1 15 000 10 Sep 16 Machinery GJ1 2 530

13 Sep 16 Account Payable Ctrl GJ1 8 250

Balance c/d 5 208

17 000 17 000

14 Sep 16 Balance b/d 5 208

Inventory 101

1 Sep 16 Capital GJ1 1 000 3 Sep 16 Bank [payment] GJ1 920 7 Sep 16 Acc Payable Ctrl GJ1 1 200

3 120

GST Receivable 102

3 Sep 16 Bank [payment] GJ1 92 6 Sep 16 Acc Payable Ctrl GJ1 750 7 Sep 16 Acc Payable Ctrl GJ1 120 10 Sep 16 Bank [payment] GJ1 230

1 192

Motor Vehicles 150

1 Sep 16 Capital GJ1 8 000

Premises 151


Machinery 152

6 Sep 16 Acc Payable Ctrl GJ1 7 500 10 Sep 16 Bank [payment] GJ1 2 300

9 800

Accounts Payable Control 200

13 Sep 16 Bank [payment] GJ1 8 250 6 Sep 16 Machinery GJ1 8 250 Balance c/d 1 320 7 Sep 16 Inventory GJ1 1 320

9 570 9 570


Mortgage on Premises 250

4 Sep 16 Bank [receipt] GJ1 15 000

Capital 300

1 Sep 16 Bank [receipt] GJ1 2 000 Inventory GJ1 1 000

Motor Vehicle GJ1 8 000

Premises 35 000

46 000



Question 3.10 finalised (perpetual inventory applies)


1 Sep 16 Capital GJ1 2 000 2 000 dr 3 Sep 16 Inventory GJ1 1 012 988 dr 4 Sep 16 Mortgage on Premises GJ1 15 000 15 988 dr

10 Sep 16 Machinery GJ1 2 530 13 458 dr 13 Sep 16 Accounts Payable Control GJ1 8 250 5 208 dr

Inventory 101 1 Sep 16 Capital GJ1 1 000 1 000 dr 3 Sep 16 Bank [payment] GJ1 920 1 920 dr 7 Sep 16 Accounts Payable Control GJ1 1 200 3 120 dr

GST Receivable 102 3 Sep 16 Bank [payment] GJ1 92 92 dr 6 Sep 16 Accounts Payable Control GJ1 750 842 dr 7 Sep 16 Accounts Payable Control GJ1 120 962 dr

10 Sep 16 Bank [payment] GJ1 230 1 192 dr Motor Vehicles 150

1 Sep 16 Capital GJ1 8 000 8 000 dr Premises 151

1 Sep 16 Capital GJ1 35 000 35 000 dr Machinery 152

6 Sep 16 Accounts Payable Control GJ1 7 500 7 500 dr 10 Sep 16 Bank [payment] GJ1 2 300 9 800 dr

Accounts Payable Control 200 6 Sep 16 Machinery GJ1 8 250 8 250 cr 7 Sep 16 Inventory GJ1 1 320 9 570 cr

13 Sep 16 Bank [payment] GJ1 8 250 1 320 cr Mortgage on Premises 250

4 Sep 16 Bank [receipt] GJ1 15 000 15 000 cr Capital 300

1 Sep 16 Bank [receipt] GJ1 2 000 2 000 cr Inventory GJ1 1 000 3 000 cr Motor Vehicle GJ1 8 000 11 000 cr Premises GJ1 35 000 46 000 cr





1 Sep 16 Bank 100 2 000 Inventory 101 1 000 Motor Vehicle 150 8 000 Premises 151 35 000

Capital 300 46 000 Assets on commencement of business

3 Sep 16 Purchases 500 920 GST Receivable 102 92 Bank 100 1 012 Purchase of inventory for cash

4 Sep 16 Bank 100 15 000 Mortgage on Premises 250 15 000 Mortgage funds over premises received from bank

6 Sep 16 Machinery 152 7 500 GST Receivable 102 750 Accounts Payable Control 200 8 250 Credit purchase of machinery from A Vince

7 Sep 16 Purchases 500 1 200 GST Receivable 102 120

Accounts Payable Control 200 1 320 Assets on commencement of business

10 Sep 16 Machinery 152 2 300 GST Receivable 102 230 Bank 100 2 530 Cash purchase of machinery

13 Sep 16 Accounts Payable Control 200 8 250 Bank 100 8 250 Payment of account payable, A Vince



Question 3.11 continued (periodic inventory applies)


1 Sep 16 Capital GJ1 2 000 3 Sep 16 Purchases GJ1 1 012 4 Sep 16 M’gage Premises GJ1 15 000 10 Sep 16 Machinery GJ1 2 530

13 Sep 16 Acc Payable Ctrl GJ1 8 250

Balance c/d 5 208

17 000 17 000

14 Sep 16 Balance b/d 5 208 Inventory 101

1 Sep 16 Capital GJ1 1 000 GST Receivable 102

3 Sep 16 Bank [payment] GJ1 92 6 Sep 16 Acc Payable Ctrl GJ1 750 7 Sep 16 Acc Payable Ctrl GJ1 120

10 Sep 16 Bank [payment] GJ1 230 1 192

Motor Vehicles 150 1 Sep 16 Capital GJ1 8 000

Premises 151 1 Sep 16 Capital GJ1 35 000

Machinery 152 6 Sep 16 Acc Payable Ctrl GJ1 7 500 10 Sep 16 Bank [payment] GJ1 2 300

9 800 Accounts Payable Control 200

13 Sep 16 Bank [payment] GJ1 8 250 6 Sep 16 Machinery GJ1 8 250 Balance c/d 1 320 7 Sep 16 Purchases GJ1 1 320 9 570 9 570 14 Sep 16 Balance b/d 1 320

Mortgage on Premises 250 4 Sep 16 Bank [receipt] GJ1 15 000

Capital 300 1 Sep 16 Bank [receipt] GJ1 2 000 Inventory GJ1 1 000 Motor Vehicle GJ1 8 000 Premises GJ1 35 000 46 000

Purchases 500 3 Sep 16 Bank [payment] GJ1 920 7 Sep 16 Acc Payable Ctrl GJ1 1 200

2 120



Question 3.11 finalised (periodic inventory applies)


1 Sep 16 Capital GJ1 2 000 2 000 dr 3 Sep 16 Purchases GJ1 1 012 988 dr 4 Sep 16 Mortgage on Premises GJ1 15 000 15 988 dr 10 Sep 16 Machinery GJ1 2 530 13 458 dr 13 Sep 16 Accounts Payable Control GJ1 8 250 5 208 dr

Inventory 101 1 Sep 16 Capital GJ1 1 000 1 000 dr

GST Receivable 102 3 Sep 16 Bank [payment] GJ1 92 92 dr 6 Sep 16 Accounts Payable Control GJ1 750 842 dr 7 Sep 16 Accounts Payable Control GJ1 120 962 dr 10 Sep 16 Bank [payment] GJ1 230 1 192 dr

Motor Vehicles 150 1 Sep 16 Capital GJ1 8000 8000 dr

Premises 151 1 Sep 16 Capital GJ1 35000 35000 dr

Machinery 152 6 Sep 16 Accounts Payable Control GJ1 7500 7500 dr 10 Sep 16 Bank [payment] GJ1 2300 9800 dr

Accounts Payable Control 200 6 Sep 16 Machinery GJ1 8250 8250 cr 7 Sep 16 Purchases GJ1 1320 9570 cr 13 Sep 16 Bank [payment] GJ1 8250 1320 cr

Mortgage on Premises 250 4 Sep 16 Bank [receipt] GJ1 15000 15000 cr

Capital 300 1 Sep 16 Bank [receipt] GJ1 2000 2000 cr

Inventory GJ1 1000 3000 cr Motor Vehicle GJ1 8000 11000 cr Premises GJ1 35000 46000 cr

Purchases 500 3 Sep 16 Bank [payment] GJ1 920 920 dr 7 Sep 16 Accounts Payable Control GJ1 1200 2120 dr




Trial Balance of P Barrack as at 13 September 2016

Bank 100 5 208 Inventory 101 3 120 GST Receivable 102 1 192 Motor Vehicles 150 8 000 Premises 151 35 000 Machinery 152 9 800 Accounts Payable Control 200 1 320 Mortgage on Premises 250 15 000 Capital 300 46 000 62 320 62 320


Trial Balance of P Barrack as at 13 September 2016

Bank 100 5 208 Inventory 101 1 000 GST Receivable 102 1 192 Motor Vehicles 150 8 000 Premises 151 35 000 Machinery 152 9 800 Accounts Payable Control 200 1 320 Mortgage on Premises 250 15 000 Capital 300 46 000 Purchases 500 2 120 62 320 62 320



Question 3.14 Comparative General Journals of K Pullen GJ1 Perpetual Inventory Periodic Inventory

Date Particulars Ref Debit Credit Particulars Ref Debit Credit 1 Sep 16 Bank 100 12 000 Bank 100 12 000

Inventory 101 3 000 Inventory 101 3 000

Building 150 37 000 Building 150 37 000 Machinery 151 7 500 Machinery 151 7 500 Mortgage 250 8 500 Mortgage 250 8 500 Capital 300 51 000 Capital 300 51 000 Assets & liability as commenced Assets & liability as commenced

4 Sep 16 Inventory 101 2 100 Purchases 500 2 100 GST Receivable 102 210 GST Receivable 102 210 Bank 100 2 310 Bank 100 2 310 Inventory purchased for cash Inventory purchased for cash

7 Sep 16 Bank 100 9 500 Bank 100 9 500 Motor Vehicle 152 15 000 Motor Vehicle 152 15 000 Capital 300 24 500 Capital 300 24 500 Additional assets contributed Additional assets contributed

10 Sep 16 Inventory 101 2 900 Purchases 500 2 900 GST Receivable 102 290 GST Receivable 102 290 Acc Payable Ctrl 200 3 190 Acc Payable Ctrl 200 3 190 Stock purchase, C Blaxland Stock purchase, C Blaxland

13 Sep 16 Machinery 151 4 200 Machinery 151 4 200 GST Receivable 102 420 GST Receivable 102 420 Bank 100 4 620 Bank 100 4 620 Cash purchase of machinery Cash purchase of machinery

17 Sep 16 Bank 100 10 000 Bank 100 10 000

Loan from V Alan 251 10 000 Loan from V Alan 251 10 000 Loan for three years Loan for three years

22 Sep 16 Machinery 151 8 000 Machinery 151 8 000 GST Receivable 102 800 GST Receivable 102 800 Acc Payable Ctrl 200 8 800 Acc Payable Ctrl 200 8 800 Credit purchase – C Eastment Credit purchase – C Eastment

23 Sep 16 Inventory 101 3600 Purchases 500 3 600 GST Receivable 102 360 GST Receivable 102 360 Bank 100 3 960 Bank 100 3 960 Cash purchase of inventory Cash purchase of inventory

26 Sep 16 Acc Payable Control 200 3 190 Acc Payable Control 200 3 190 Bank 100 3 190 Bank 100 3 190 Paym’t a/c payable C Blaxland Paym’t a/c payable C Blaxland

27 Sep 16 Inventory 101 3 270 Purchases 500 3 270 GST Receivable 102 327 GST Receivable 102 327 Acc Payable Ctrl 200 3 597 Acc Payable Ctrl 200 3 597 Stock purchase, C Blaxland Stock purchase, C Blaxland

28 Sep 16 Acc Payable Control 200 8 800 Acc Payable Control 200 8 800 Bank 100 8 800 Bank 100 8 800 Paym’t a/c payable C Blaxland Paym’t a/c payable C Blaxland




General Ledger of K Pullen Bank 100

1 Sep 16 Capital GJ1 12 000 4 Sep 16 Inventory GJ1 2 310 7 Sep 16 Capital GJ1 9 500 13 Sep 16 Machinery GJ1 4 620 17 Sep 16 Loan from V Alan GJ1 10 000 23 Sep 16 Inventory GJ1 3 960

26 Sep 16 Accounts Payable Ctrl GJ1 3 190 28 Sep 16 Accounts Payable Ctrl GJ1 8 800 30 Sep 16 Balance c/d GJ1 8 620

31 500 31 500

1 Oct 16 Balance b/d 8 620 Inventory 101

1 Sep 16 Capital GJ1 3 000 4 Sep 16 Bank [payment] GJ1 2 100 10 Sep 16 Accounts Payable Ctrl GJ1 2 900 23 Sep 16 Bank [payment] GJ1 3 600 27 Sep 16 Accounts Payable Ctrl GJ1 3 270

14 870 GST Receivable 102

4 Sep 16 Bank [payment] GJ1 210

10 Sep 16 Accounts Payable Ctrl GJ1 290





2 407

Building 150 1 Sep 16 Capital GJ1 37 000

Machinery 151 1 Sep 16 Capital GJ1 7 500

13 Sep 16 Bank [payment] GJ1 4 200

22 Sep 16 Accounts Payable Ctrl GJ1 8 000

19 700

Motor Vehicle 152


continued




General Ledger of K Pullen Accounts Payable Control 200

26 Sep 16 Bank [payment] GJ1 3 190 10 Sep 16 Inventory GJ1 3 190 28 Sep 16 Bank [payment] GJ1 8 800 22 Sep 16 Machinery GJ1 8 800 30 Sep 16 Balance c/d 3 597 27 Sep 16 Inventory GJ1 3 597

15 587 15 587

1 Oct 16 Balance b/d 3 597 Mortgage 250

1 Sep 16 Capital GJ1 8 500 Loan from V Alan 251

1 Sep 16 Bank [receipt] GJ1 10 000 Capital 300

1 Sep 16 Mortgage GJ1 8 500 1 Sep 16 Bank [receipt] GJ1 12 000 30 Sep 16 Balance c/d 75 500 Inventory GJ1 3 000

Building GJ1 37 000 Machinery GJ1 7 500 7 Sep 16 Bank [receipt] GJ1 9 500 Motor Vehicle GJ1 15 000 84 000 84 000 1 Oct 16 Balance b/d 75 500

Trial Balance of K Pullen as at 30 September 2016

Bank 100 8 620 Inventory 101 14 870 GST Receivable 102 2 407 Building 150 37 000 Machinery 151 19 700 Motor Vehicle 152 15 000 Accounts Payable Ctrl 200 3 597 Mortgage 250 8 500 Loan from V Alan 251 10 000 Capital 300 75 500 97 597 97 597




General Ledger of K Pullen Bank 100

1 Sep 16 Capital GJ1 12 000 4 Sep 16 Purchases GJ1 2 310 7 Sep 16 Capital GJ1 9 500 13 Sep 16 Machinery GJ1 4 620 17 Sep 16 Loan from V Alan GJ1 10 000 23 Sep 16 Purchases GJ1 3 960

26 Sep 16 Accounts Payable Ctrl GJ1 3 190 28 Sep 16 Purchases GJ1 8 800 30 Sep 16 Balance c/d 8 620 31 500 31 500

1 Oct 16 Balance b/d 8 620 Inventory 101

1 Sep 16 Capital GJ1 3000 GST Receivable 102







2 407

Building 150 1 Sep 16 Capital GJ1 37 000

Machinery 151 1 Sep 16 Capital GJ1 7 500



19 700

Motor Vehicle 152 7 Sep 16 Capital GJ1 15 000

Accounts Payable Control 200 26 Sep 16 Bank [payment] GJ1 3 190 10 Sep 16 Purchases GJ1 3 190 28 Sep 16 Bank [payment] GJ1 8 800 22 Sep 16 Machinery GJ1 8 800 30 Sep 16 Balance c/d 3 597 27 Sep 16 Purchases GJ1 3 597

15 587 15 587 1 Oct 16 Balance b/d 3 597

Mortgage 250 1 Sep 16 Capital GJ1 8 500




General Ledger of K Pullen Loan from V Alan 251

1 Sep 16 Bank [receipt] GJ1 10 000 Capital 300

1 Sep 16 Mortgage GJ1 8 500 1 Sep 16 Bank [receipt] GJ1 12 000 30 Sep 16 Balance c/d 75 500 Inventory GJ1 3 000

Building GJ1 37 000 Machinery GJ1 7 500 7 Sep 16 Bank [receipt] GJ1 9 500 Motor Vehicle GJ1 15 000 84 000 84 000 1 Oct 16 Balance b/d 75 500

Purchases 500 4 Sep 16 Bank [payment] GJ1 2 100



27 Sep 16 Accounts Payable Ctrl GJ1 3 270 11 870

Trial Balance of K Pullen as at 30 September 2016

Bank 100 8 620 Inventory 101 3 000 GST Receivable 102 2 407 Building 150 37 000 Machinery 151 19 700 Motor Vehicle 152 15 000 Accounts Payable Control 200 3 597 Mortgage 250 8 500 Loan from V Alan 251 10 000 Capital 300 75 500 Purchases 500 11 870 97 597 97 597



Question 3.15 Comparative General Journals of A Argenton GJ1 Perpetual Inventory Periodic Inventory

Date Particulars Ref Debit Credit Particulars Ref Debit Credit 1 Jul 16 Bank 100 6 000 Bank 100 6 000

Motor Vehicle 150 25 000 Motor Vehicle 150 25 000 Capital 300 31 000 Capital 300 31 000 Assets on commencement Assets on commencement

4 Jul 16 Inventory 101 3 000 Purchases 500 3 000 GST Receivable 103 300 GST Receivable 103 300 Acc Payable Ctrl 200 3 300 Acc Payable Ctrl 200 3 300 Inventory – A Point on credit Inventory – A Point on credit

5 Jul 16 Inventory 101 2 000 Purchases 500 2 000 GST Receivable 103 200 GST Receivable 103 200 Bank 100 2 200 Bank 100 2 200 Cash purchase of inventory Cash purchase of inventory

6 Jul 16 Bank 100 3 000 Bank 100 3 000 Office Equipment 151 4 500 Office Equipment 151 4 500 Capital 300 7 500 Capital 300 7 500 Additional assets contributed Additional assets contributed

10 Jul 16 Bank 100 2 475 Bank 100 2 475 Sales 400 2 250 Sales 400 2 250

GST Payable 201 225 GST Payable 201 225 Cash sale of inventory Cash sale of inventory Cost of Goods Sold 500 1 350 Inventory 101 1 350 Cost of cash sale

15 Jul 16 Acc Receivable Ctrl 102 3 740 Acc Receivable Ctrl 102 3 740 Sales 400 3 400 Sales 400 3 400

GST Payable 201 340 GST Payable 201 340 Credit sale to T Ranch Credit sale to T Ranch Cost of Goods Sold 500 2 100 Inventory 101 2 100 Cost of credit sale

18 Jul 16 Acc Payable Control 200 3 300 Acc Payable Ctrl 200 3 300 Bank 100 3 300 Bank 100 3 300

Payment to supplier A Point Payment to supplier A Point 21 Jul 16 Inventory 101 2 600 Purchases 500 2 600

GST Receivable 103 260 GST Receivable 102 260 A/c Payable Ctrl 200 2 860 Acc Payable Ctrl 200 2 860 Credit purchase from E Kevin Credit purchase from E Kevin Inventory 101 1 450 Purchases 500 1 450 GST Receivable 103 145 GST Receivable 103 145 Bank 100 1 595 Bank 100 1 595 Cash purchase of inventory Cash purchase of inventory

25 Jul

Wages 540 900 Wages 540 900 Bank 100 900 Bank 100 900 Paid wages expense Paid wages expense

continued



Question 3.15 continued Comparative General Journals of A Argenton continued GJ1 Perpetual Inventory Periodic Inventory

Date Particulars Ref Debit Credit Particulars Ref Debit Credit Electricity 541 100 Electricity 541 100 GST Receivable 103 10 GST Receivable 103 10 Bank 100 110 Bank 100 110 Paid electricity expense Paid electricity expense Machinery 152 1 400 Machinery 152 1 400 GST Receivable 103 140 GST Receivable 103 140 Bank 100 1 540 Bank 100 1 540 Purchase of machinery for cash Purch. of machinery for cash

29 Jul 16 Bank 100 3 740 Bank 100 3 740 Acc Receivable Ctrl 102 3 740 Acc Receivable Ctrl 102 3 740

Receipt from T Ranch Receipt from T Ranch Accounts Payable Ctrl 200 2 860 Accounts Payable Ctrl 200 2 860 Bank 100 2 860 Bank 100 2 860 Paid acc’nts payable E Kevin Paid acc’nts payable E Kevin


General Ledger of A Argenton Bank 100

1 Jul 16 Capital GJ1 6 000 5 Jul 16 Inventory GJ1 2 200 6 Jul 16 Capital GJ1 3 000 18 Jul 16 Acc Payable Ctrl GJ1 3 300 10 Jul 16 Sales GJ1 2 475 21 Jul 16 Inventory GJ1 1 595 29 Jul 16 Acc Receivable Control GJ1 3 740 25 Jul 16 Wages GJ1 900

Electricity GJ1 110 Machinery GJ1 1 540 29 Jul 16 Acc Payable Ctrl GJ1 2 860 31 Jul 16 Balance c/d 2 710 15 215 15 215

1 Aug 16 Balance b/d 2 710 Inventory 101

4 Jul 16 Acc Payable Ctrl GJ1 3 000 10 Jul 16 Cost Goods Sold GJ1 1 350 5 Jul 16 Bank [payment] GJ1 2 000 15 Jul 16 Cost Goods Sold GJ1 2 100 21 Jul 16 Acc Payable Ctrl GJ1 2 600 31 Jul 16 Balance c/d 5 600

Bank [payment] GJ1 1 450 9 050 9 050

1 Aug 16 Balance b/d 5 600 Accounts Receivable Control 102

15 Jul 16 Sales GJ1 3 740 29 Jul 16 Bank [receipt] GJ1 3 740




General Ledger of A Argenton GST Receivable 103

4 Jul 16 Acc Payable Ctrl GJ1 300 5 Jul 16 Bank [payment] GJ1 200 21 Jul 16 Acc Payable Ctrl GJ1 260

Bank [payment] GJ1 145 25 Jul 16 Bank [payment] GJ1 10

Bank [payment] GJ1 140 1055

Motor Vehicle 150 1 Jul 16 Capital GJ1 25 000

Office Equipment 151 6 Jul 16 Capital GJ1 4 500

Machinery 152 25 Jul 16 Bank [payment] GJ1 1 400

Accounts Payable Control 200 18 Jul 16 Bank [payment] GJ1 3 300 4 Jul 16 Inventory GJ1 3 300 28 Jul 16 Bank [payment] GJ1 2 860 21 Jul 16 Inventory GJ1 2 860

6 160 6 160 GST Payable 201

10 Jul 16 Bank [receipt] GJ1 225 15 Jul 16 Acc Receivable Ctrl GJ1 340 565

Capital 300 1 Jul 16 Bank [receipt] GJ1 6 000 Motor Vehicle GJ1 25 000 6 Jul 16 Bank [receipt] GJ1 3 000 Office Equipment GJ1 4 500 38 500

Sales 400 10 Jul 16 Bank [receipt] GJ1 2 250 15 Jul 16 Acc Receivable Ctrl GJ1 3 400 5 650

Cost of Goods Sold 500 10 Jul 16 Inventory GJ1 1 350 15 Jul 16 Inventory GJ1 2 100

3 450 Wages 540

25 Jul 16 Bank [payment] GJ1 900 Electricity 541

25 Jul 16 Bank [payment] GJ1 100



Question 3.15 finalised where perpetual inventory applies

Trial Balance of A Argenton as at 31 July 2016

Bank 100 2 710 Inventory 101 5 600 GST Receivable 103 1 055 Motor Vehicle 150 25 000 Office Equipment 151 4 500 Machinery 152 1 400 GST Payable 201 565 Capital 300 38 500 Sales 400 5 650 Cost of Goods Sold 500 3 450 Wages 540 900 Electricity 541 100 44 715 44 715


General Ledger of A Argenton Bank 10

1 Jul 16 Capital GJ1 6 000 5 Jul 16 Purchases GJ1 2 200 6 Jul 16 Capital GJ1 3 000 18 Jul 16 Accounts Payable Ctrl GJ1 3 300 10 Jul 16 Sales GJ1 2 475 21 Jul 16 Purchases GJ1 1 595 29 Jul 16 Acc’nt Receivable Ctrl GJ1 3 740 25 Jul 16 Wages GJ1 900

Electricity GJ1 110 Machinery GJ1 1 540 29 Jul 16 Accounts Payable Ctrl GJ1 2 860 31 Jul 16 Balance c/d 2 710

15 215 15 215

1 Aug 16 Balance b/d 2 710 Accounts Receivable Control 11

15 Jul 16 Sales GJ1 3 740 29 Jul 16 Bank [receipt] GJ1 3 740

GST Receivable 12 4 Jul 16 Accounts Payable Ctrl GJ1 300 5 Jul 16 Bank [payment] GJ1 200 21 Jul 16 Accounts Payable Ctrl GJ1 260

Bank [payment] GJ1 145 25 Jul 16 Bank [payment] GJ1 10

Bank [payment] GJ1 140 1 055




General Ledger of A Argenton continued Motor Vehicle 15

1 Jul 16 Capital GJ1 25 000 Office Equipment 16

6 Jul 16 Capital GJ1 4 500 Machinery 17

25 Jul 16 Bank [payment] GJ1 1 400 Accounts Payable Control 20

18 Jul 16 Bank [payment] GJ1 3 300 4 Jul 16 Purchases GJ1 3 300 28 Jul 16 Bank [payment] GJ1 2 860 21 Jul 16 Purchases GJ1 2 860

6 160 6 160 GST Payable 21 10 Jul 16 Bank [receipt] GJ1 225 15 Jul 16 Acc’nt Receivable Ctrl GJ1 340 565

Capital 30 1 Jul 16 Bank [receipt] GJ1 6 000 Motor Vehicle GJ1 25 000 6 Jul 16 Bank [receipt] GJ1 3 000 Office Equipment GJ1 4 500 38 500

Sales 40 10 Jul 16 Bank [receipt] GJ1 2 250 15 Jul 16 Acc’nt Receivable Ctrl GJ1 3 400 5 650

Purchases 50 4 Jul 16 Accounts Payable Ctrl GJ1 3 000 5 Jul 16 Bank [payment] GJ1 2 000

21 Jul 16 Accounts Payable Ctrl GJ1 2 600

Bank [payment] GJ1 1 450

9 050

Wages 51 25 Jul 16 Bank [payment] GJ1 900

Electricity 52 25 Jul 16 Bank [payment] GJ1 100




Trial Balance of A Argenton as at 31 July 2016

Bank 10 2 710 GST Receivable 12 1 055

Motor Vehicle 15 25 000

Office Equipment 16 4 500

Machinery 17 1 400

GST Payable 21 565

Capital 30 38 500

Sales 40 5 650

Purchases 50 9 050

Wages 51 900

Electricity 52 100 44 715 44 715

Question 3.16

Comparative General Journals of D Brad GJ1 Perpetual Inventory Periodic Inventory

Date Particulars Ref Debit Credit Particulars Ref Debit Credit 2 Jan 16 Bank 10 7 000 Bank 10 7 000

Equipment 15 12 000 Equipment 15 12 000

Capital 30 19 000

Capital 30 19 000

Assets on commencement Assets on commencement

4 Jan 16 Machinery 16 2 030 Machinery 16 2 030

GST Receivable 13 203 GST Receivable 13 203

Bank 10 2 233 Bank 10 2 233

Purchase – machinery for cash Purchase – machinery for cash

Inventory 11 2 050 Purchases 50 2 050


Bank 10 2 255 Bank 10 2 255

Cash purchase of inventory Cash purchase of inventory

7 Jan 16 Acc Receivable Control 12 4 301 Acc Receivable Control 11 4 301

Sales 40 3 910 Sales 40 3 910

GST Payable 21 391 GST Payable 21 391

Credit sale to K Camping Credit sale to K Camping

Cost of Goods Sold 50 1 800

Inventory 11 1 800

Cost of credit sale

continued



Question 3.16 continued

Comparative General Journals of D Brad continued GJ1 Perpetual Inventory Periodic Inventory

9 Jan 16 Bank 10 2 000 Bank 10 2 000

Motor Vehicle 17 13 800 Motor Vehicle 17 13 800

Capital 30 15 800 Capital 30 15 800

Additional assets contributed Additional assets contributed

12 Jan 16 Bank 10 7 500 Bank 10 7 500

Loan from A Relo 25 7 500 Loan from A Relo 25 7 500

Obtained loan from A Relo Obtained loan from A Relo

15 Jan 16 Equipment 15 5 250 Equipment 15 5 250


Acc Payable Ctrl 20 5 775 Acc Payable Ctrl 20 5 775

Equipment – T Kevin on credit Equipment – T Kevin on credit

Inventory 11 2 200 Purchases 50 2 200


Acc Payable Ctrl 20 2 420 Acc Payable Ctrl 20 2 420

Credit purchase – C Curnuck Credit purchase – C Curnuck

17 Jan 16 Bank 10 3 575 Bank 10 3 575 Sales 40 3 250 Sales 40 3 250 GST Payable 21 325 GST Payable 21 325 Cash sale Cash sale Cost of Goods Sold 50 1 600 Inventory 11 1 600 Cost of cash sale

20 Jan 16 Acc Receivable Control 12 1 067 Acc Receivable Control 11 1 067 Sales 40 970 Sales 40 970 GST Payable 21 97 GST Payable 21 97 Credit sale to K Camping Credit sale to K Camping Cost of Goods Sold 50 400 Inventory 11 400 Cost of credit sale

23 Jan 16 Machinery 16 3 200 Machinery 16 3 200 GST Receivable 13 320 GST Receivable 12 320 Bank 10 3 520 Bank 10 3 520 Cash purchase of machinery Cash purchase of machinery

25 Jan 16 Acc Payable Control 20 5 775 Acc Payable Control 20 5 775 Bank 10 5 775 Bank 10 5 775 Payment to supplier T Kevin Payment to supplier T Kevin

28 Jan 16 Acc Payable Control 20 2 420 Acc Payable Control 20 2 420 Bank 10 2 420 Bank 10 2 420 Payment to supplier C

Curnuck Payment to supplier C

Curnuck

Bank 10 4 301 Bank 10 4 301 Acc Receivable Ctrl 12 4 301 Acc Receivable Ctrl 11 4 301 Receipt from T Ranch Receipt from T Ranch




General Ledger of D Brad Bank 10

2 Jan 16 Capital GJ1 7 000 4 Jan 16 Machinery GJ1 2 233 9 Jan 16 Capital GJ1 2 000 Inventory GJ1 2 255 12 Jan 16 Loan from A Relo GJ1 7 500 23 Jan 16 Machinery GJ1 3 520 17 Jan 16 Sales GJ1 3 575 25 Jan 16 Acc’nts Payable Ctrl GJ1 5 775 28 Jan 16 Acc Receivable Ctrl GJ1 4 301 28 Jan 16 Acc’nts Payable Ctrl GJ1 2 420

31 Jan 16 Balance c/d 8 173

24 376 24 376

1 Feb 16 Balance b/d 8 173 Inventory 11

4 Jan 16 Bank [payment] GJ1 2 050 7 Jan 16 Cost of Goods Sold GJ1 1 800 15 Jan 16 Acc’nts Payable Ctrl GJ1 2 200 17 Jan 16 Cost of Goods Sold GJ1 1 600

20 Jan 16 Cost of Goods Sold GJ1 400 31 Jan 16 Balance c/d 450

4 250 4 250

1 Feb 16 Balance b/d 450 Accounts Receivable Control 12

7 Jan 16 Sales GJ1 4 301 28 Jan 16 Bank [receipt] GJ1 4 301 20 Jan 16 Sales GJ1 1 067 31 Jan 16 Balance c/d 1 067

5 368 5 368

1 Feb 16 Balance b/d 1 067 GST Receivable 13

4 Jan 16 Bank [payment] GJ1 203 Bank [payment] GJ1 205

15 Jan 16 Acc’nts Payable Ctrl GJ1 525 Acc’nts Payable Ctrl GJ1 220

23 Jan 16 Bank [payment] GJ1 320 1 473

Equipment 15 2 Jan 16 Capital GJ1 12 000 15 Jan 16 Acc’nts Payable Ctrl GJ1 5 250

17 250 Machinery 16

4 Jan 16 Bank [payment] GJ1 2 030 23 Jan 16 Bank [payment] GJ1 3 200

5 230 Motor Vehicle 17

9 Jan 16 Capital GJ1 13 800 Accounts Payable Control 20

25 Jan 16 Bank [payment] GJ1 5 775 15 Jan 16 Equipment GJ1 5 775 28 Jan 16 Bank [payment] GJ1 2 420 Inventory GJ1 2 420

8 195 8 195

continued




General Ledger of D Brad continued GST Payable 21

7 Jan 16 Acc Receivable Ctrl GJ1 391 17 Jan 16 Bank [receipt] GJ1 325 20 Jan 16 Acc Receivable Ctrl GJ1 97 813

Loan from A Relo 25 12 Jan 16 Bank [receipt] GJ1 7 500

Capital 30 2 Jan 16 Bank GJ1 7 000 Equipment GJ1 12 000 9 Jan 16 Bank [receipt] GJ1 2 000 Motor Vehicle GJ1 13 800

34 800 Sales 40

7 Jan 16 Acc Receivable Ctrl GJ1 3 910 17 Jan 16 Bank [receipt] GJ1 3 250 20 Jan 16 Acc Receivable Ctrl GJ1 970

8 130 Cost of Goods Sold 50

7 Jan 16 Inventory GJ1 1 800 17 Jan 16 Inventory GJ1 1 600 20 Jan 16 Inventory GJ1 400

3 800

Trial Balance of D Brad as at 31 January 2016

Bank 10 8 173 Inventory 11 450

Accounts Receivable Control 12 1 067

GST Receivable 13 1 473

Equipment 15 17 250 Machinery 16 5 230


GST Payable 21 813

Loan from A Relo 25 7 500

Capital 30 34 800 Sales 40 8 130

Cost of Goods Sold 50 3 800 51 243 51 243



Question 3.16 periodic inventory applies General Ledger of D Brad

Bank 10 2 Jan 16 Capital GJ1 7 000 4 Jan 16 Machinery GJ1 2 233

9 Jan 16 Capital GJ1 2 000 Purchases GJ1 2 255

12 Jan 16 Loan from A Relo GJ1 7 500 23 Jan 16 Machinery GJ1 3 520

17 Jan 16 Sales GJ1 3 575 25 Jan 16 Accounts Payable Ctrl GJ1 5775

28 Jan 16 Acc’nt Receivable Ctrl GJ1 4 301 28 Jan 16 Accounts Payable Ctrl GJ1 2 420

31 Jan 16 Balance c/d 8 173

24 376 24 376

1 Feb 16 Balance b/d 8 173 Accounts Receivable Control 11

7 Jan 16 Sales GJ1 4 301 28 Jan 16 Bank [receipt] GJ1 4 301

20 Jan 16 Sales GJ1 1 067 31 Jan 16 Balance c/d 1 067

5 368 5 368

1 Feb 16 Balance b/d 1 067 GST Receivable 12

4 Jan 16 Bank [payment] GJ1 203 Bank [payment] GJ1 205

15 Jan 16 Accounts Payable Ctrl GJ1 525

Accounts Payable Ctrl GJ1 220

23 Jan 16 Bank [payment] GJ1 320

1 473

Equipment 15 2 Jan 16 Capital GJ1 12 000

15 Jan 16 Accounts Payable Ctrl GJ1 5 250

17 250

Machinery 16 4 Jan 16 Bank [payment] GJ1 2 030

23 Jan 16 Bank [payment] GJ1 3 200

5 230

Motor Vehicle 17 9 Jan 16 Capital GJ1 13 800

Accounts Payable Control 20 25 Jan 16 Bank [payment] GJ1 5 775 15 Jan 16 Equipment GJ1 5 775

28 Jan 16 Bank [payment] GJ1 2 420 Purchases GJ1 2 420

8 195 8 195 continued




General Ledger of D Brad continued GST Payable 21

7 Jan 16 Acc’nt Receivable Ctrl GJ1 391 17 Jan 16 Bank [receipt] GJ1 325 20 Jan 16 Acc’nt Receivable Ctrl GJ1 97 813

Loan from A Relo 25 12 Jan 16 Bank [receipt] GJ1 7 500

Capital 30

2 Jan 16 Bank GJ1 7 000 Equipment GJ1 12 000 9 Jan 16 Bank [receipt] GJ1 2 000 Motor Vehicle GJ1 13 800 34 800

Sales 40 7 Jan 16 Acc’nt Receivable Ctrl GJ1 3 910 17 Jan 16 Bank [receipt] GJ1 3 250 20 Jan 16 Acc’nt Receivable Ctrl GJ1 970 8 130

Purchases 50 4 Jan 16 Bank [payment] GJ1 2 050

15 Jan 16 Accounts Payable Ctrl GJ1 2 200 4 250

Trial Balance of D Brad

as at 31 January 2016 Bank 10 8 173 Accounts Receivable Control 11 1 067 GST Receivable 12 1 473 Equipment 15 17 250 Machinery 16 5 230 Motor Vehicle 17 13 800 GST Payable 21 813 Loan from A Relo 25 7 500 Capital 30 34 800 Sales 40 8 130 Purchases 50 4 250 51 243 51 243



Chapter 4 Transactions, specialised journals and double-entry processing Question 4.1 a journal, day b sales; purchases; cash payments; cash receipts; general.

Question 4.2 C Namble remitted wages cash payments journal C Namble received a cheque from F Lee cash receipts journal C Namble purchased goods on credit from P Way purchase journal C Namble sold goods on credit to F Anna sales journal C Namble transferred funds for rent to W Ren cash payments journal C Namble received a remittance from M Gee cash receipts journal C Namble purchased stationery on credit from B Mont purchase journal C Namble sold goods on credit to P Stow sales journal C Namble electronically received funds from G Burn cash receipts journal C Namble remitted funds to B Mont cash payments journal C Namble sent a tax invoice to B Thurst sales journal C Namble received a tax invoice from K Toomba purchase journal

Question 4.3 Sales journal batch total 312.62 Purchase journal batch total 208.34 Cash receipts journal batch total 146.73 Cash payments journal batch total 128.37

Question 4.4 a general ledger b accounts c asset; liability; owners equity; revenue; expense d trial balance e income statement f balance sheet

Question 4.5

Transaction Journal A Berdeen sold goods to B Allina on credit SJ sales A Berdeen used debit card for goods CP cash payments A Berdeen purchased goods from T Rocks on credit PJ purchases A Berdeen made a credit sale to S Campbell SJ sales A Berdeen made an internal adjustment to the accounts GJ general Paid cash for goods purchased CP cash payments Goods were sold on credit by A Berdeen to B Allina SJ sales Sold goods for cash CR cash receipts Paid electricity account electronically CP cash payments Adjust the books internally GJ general A Berdeen received a remittance from B Allina CR cash receipts Goods purchased on credit by A Berdeen from C Cadman PJ purchases



Question 4.6

Transaction Journal C Amden purchased goods on credit from C Unwin purchases PJ Goods sold by C Amden to T Coachhouse, C Amden expected to receive payment at a later date

sales SJ

C Amden sold goods for cash to C Reynolds cash receipts CR C Amden purchased goods from F Phillip and agreed to pay later purchases PJ An adjustment to the books is required general GJ Cash purchase cash payments CP C Amden sold to S Agar on credit sales SJ Cash sale cash receipts CR C Amden made an adjusting entry to the accounts general GJ Paid wages cash payments CP Goods were sold to T Carlson sales SJ C Amden purchased goods with debit card cash payments CP Purchased goods from V Richmond purchases PJ Sold goods to N Ark for cash cash receipts CR Received payment from S Agar cash receipts CR

Question 4.7 Sales journal batch total 1 447.38 Purchases journal batch total 217.69 Cash receipts journal batch total 667.48 Cash payments journal batch total 283.03 General journal batch total 64.68

Question 4.8 1 trial balance; 2 owner’s equity; 3 cash payments; 4 receipts; 5 tax invoice; 6 journals; 7 document; 8 goods; 9 source; 10 buying; 11 liability; 12 receivable; 13 revenue; 14 expense; 15 debit; 16 cash; 17 asset; 18 accounts; 19 credit; 20 payable.


Sales Journal of B Cooper SJ 1 Date Inv

Adj Accounts Receivable and / or

Particulars Ref Accounts

Receivable Sales GST

Payable Office Equip’t

1 Aug 16 647 D Duric – Sales 704.00 640.00 64.00 4 Aug 16 648 D Sam – Sales 206.80 188.00 18.80

10 Aug 16 649 J Beery – Sales 178.20 162.00 16.20 11 Aug 16 650 A Brady – Office Equipm’t 495.00 45.00 450.00 12 Aug 16 651 H Wendy & Co – Sales 720.50 655.00 65.50 15 Aug 16 652 Suzanne & Co – Sales 435.60 396.00 39.60 20 Aug 16 213 D Sam – Sales Return (51.70) (47.00) (4.70) 22 Aug 16 653 D Duric – Sales 812.90 739.00 73.90 26 Aug 16 654 H Wendy & Co – Sales 597.30 543.00 54.30

4 098.60 3 276.00 372.60 450.00 100 400 200 150




Extract General Ledger of B Cooper Accounts Receivable Control 100

31 Aug 16 Sales SJ1 4 098.60 Office Equipment 150

31 Aug 16 Acc’nt Receivable Ctrl SJ1 *450.00 * Office equipment, a non-current asset, normally has a debit balance

GST Payable 200 31 Aug 16 Acc’nt Receivable Ctrl SJ1 372.60

Sales 400 31 Aug 16 Acc’nt Receivable Ctrl SJ1 3 276.00

Extract Trial Balance of B Cooper as at 31 August 2016

Accounts Receivable Control 100 4 098.60 Office Equipment 150 450.00 GST Payable 200 372.60 Sales 400 3 276.00 4 098.60 4 098.60

General Journal of B Cooper GJ 1 Date Particulars Ref Debit Credit

1 Aug 16 Accounts Receivable Control 100 704.00 Sales 400 640.00 GST Payable 200 64.00 Credit sale to D Duric

4 Aug 16 Accounts Receivable Control 100 206.80 Sales 400 188.00

GST Payable 200 18.80 Credit sale to D Sam

10 Aug 16 Accounts Receivable Control 100 178.20 Sales 400 162.00 GST Payable 200 16.20 Credit sale to J Beery

11 Aug 16 Accounts Receivable Control 100 495.00 Office Equipment 150 450.00 GST Payable 200 45.00

Credit sale to A Brady 12 Aug 16 Accounts Receivable Control 100 720.50

Sales 400 655.00 GST Payable 200 65.50 Credit sale to H Wendy & Co

continued



Question 4.9 continued (periodic inventory applies) General Journal of B Cooper continued GJ 1

15 Aug 16 Accounts Receivable Control 100 435.60 Sales 400 396.00 GST Payable 200 39.60 Credit sale to Suzanne & Co

20 Aug 16 Sales 400 47.00 GST Payable 200 4.70 Accounts Receivable Control 100 51.70 Credit sale return from D Sam

22 Aug 16 Accounts Receivable Control 100 812.90 Sales 400 739.00 GST Payable 200 73.90 Credit sale to D Duric

26 Aug 16 Accounts Receivable Control 100 597.30

Sales 400 543.00

GST Payable 200 54.30

Credit sale to H Wendy & Co

Extract General Ledger of B Cooper Accounts Receivable Control 100

1 Aug 16 Sales GJ1 704.00 20 Aug 16 Sales [return] GJ1 51.70 4 Aug 16 Sales GJ1 206.80 31 Aug 16 Balance c/d 4 098.60 10 Aug 16 Sales GJ1 178.20 11 Aug 16 Sales GJ1 495.00 12 Aug 16 Sales GJ1 720.50 15 Aug 16 Sales GJ1 435.60 22 Aug 16 Sales GJ1 812.90 26 Aug 16 Sales GJ1 597.30

4 150.30 4 150.30 1 Sep 16 Balance b/d 4 098.60

Office Equipment 150 11 Aug 16 Accounts Receivable GJ1 450.00

GST Payable 200 20 Aug 16 Accounts Receivable GJ1 4.70 1 Aug 16 Accounts Receivable GJ1 64.00 31 Aug 16 Balance c/d 372.60 4 Aug 16 Accounts Receivable GJ1 18.80

10 Aug 16 Accounts Receivable GJ1 16.20






377.30 377.30

1 Sep 16 Balance b/d 372.60 continued



Question 4.9 continued (periodic inventory applies) Extract General Ledger of B Cooper continued

Sales 400 20 Aug 16 Accounts Receivable GJ1 47.00 1 Aug 16 Accounts Receivable GJ1 640.00

31 Aug 16 Balance c/d 3 276.00 4 Aug 16 Accounts Receivable GJ1 188.00






3 323.00 3 323.00

1 Sep 16 Balance b/d 3 276.00

Extract Trial Balance of B Cooper as at 31 August 2016

Accounts Receivable Control 100 4 098.60

Office Equipment 150 450.00

GST Payable 200 372.60

Sales 400 3 276.00

4 098.60 4 098.60

Question 4.10 periodic inventory applies Sales Journal of H Alwart SJ 1

Date InvAdj

Accounts Receivable and / or Particulars

Ref Accounts Receivable

Sales GST Payable

Motor Vehicle

3 Sep 16 714 B Bryant – Sales 257.40 234.00 23.40 5 Sep 16 715 S Watts – Sales 872.30 793.00 79.30 6 Sep 16 716 K Moore – Sales 36.30 33.00 3.30

10 Sep 16 717 S Watts – Sales 661.10 601.00 60.10 11 Sep 16 325 B Bryant – Sales Return (38.50) (35.00) (3.50) 14 Sep 16 718 C Azita – Sales 820.60 746.00 74.60 18 Sep 16 326 C Azita – Sales Return (69.30) (63.00) (6.30) 20 Sep 16 719 S Alicia – Motor Vehicle 2 310.00 210.00 2 100.00 28 Sep 16 720 A Segee – Sales 1 002.10 911.00 91.10

5 852.00 3 220.00 532.00 2 100.00 100 400 200 150

Extract General Ledger of H Alwart

Accounts Receivable Control 100 30 Sep 16 Sales SJ1 5 852

Motor Vehicle 150 30 Sep 16 Acc’nt Receivable Ctrl SJ1 2 100

GST Payable 200 30 Sep 16 Acc’nt Receivable Ctrl SJ1 532

Sales 400 30 Sep 16 Acc’nt Receivable Ctrl SJ1 3 220



Question 4.10 finalised Extract Trial Balance of H Alwart

as at 30 September 2016

Accounts Receivable Control 100 5 852 Motor Vehicle 150 2 100 GST Payable 200 532 Sales 400 3 220 5 852 5 852


Sales Journal of Bouasing Trading Co SJ 1 Date Inv

Adj Accounts Receivable and /

or Particulars Ref Accounts

Receivable Sales GST

Payable CoGS Inven-

tory

3 Nov 16 237 Thuy Le – Sales 473 430 43 190 190

238 Cuom Si Lay – Sales 770 700 70 315 315

7 Nov 16 239 V Vo – Sales 759 690 69 300 300

10 Nov 16 240 Thuy Le – Sales 209 190 19 85 85

241 Li Hung Tia – Sales 704 640 64 280 280

15 Nov 16 667 Thuy Le – Sales Return (44) (40) (4) (20) (20)

16 Nov 16 242 V Vo – Sales 638 580 58 260 260

21 Nov 16 668 Cuom Si Lay – Sale Return (33) (30) (3)

27 Nov 16 243 Li Hung Tia – Sales 462 420 42 180 180

3 938 3 580 358 1 590 1 590

100 400 200 500 101

Extract General Ledger of Bouasing Trading Co Accounts Receivable Control 100

30 Nov 16 Sales SJ1 3 938 Inventory 101

30 Nov 16 Cost of Goods Sold SJ1 1 590

GST Payable 200 30 Nov 16 Acc’nt Receivable Ctrl SJ1 358

Sales 400 30 Nov 16 Acc’nt Receivable Ctrl SJ1 3 580

Cost of Goods Sold 500 30 Nov 16 Inventory SJ1 1 590

Extract Trial Balance of Bouasing Trading Co as at 30 November 2016

Accounts Receivable Control 100 3 938 Inventory 101 1 590 GST Payable 200 358 Sales 400 3 580 Cost of Goods Sold 500 1 590 5 528 5 528




Purchases Journal of D Keogh PJ 1 Date Inv

Adj Accounts Payable and / or

Particulars Ref Account

Payable Purch-ases

GST Receiv

Vehicle Exp

Advert-ising

Stationery

4 Jul 16 169 E Joseph – Purchases 209 190 19 5 Jul 16 863 S DiMartino – Purchases 44 40 4 7 Jul 16 356 Grenfell Tyre – Vehicle Exp 275 25 250 8 Jul 16 759 D Palmino – Purchases 418 380 38 11 Jul 16 918 S DiMartino – Purchases 132 120 12

192 D Palmino – Purch Return (110) (100) (10) 20 Jul 16 428 Bathurst Press – Advertising 385 35 350 23 Jul 16 161 Parkes Stationery – Station 66 6 60 25 Jul 16 418 D Palmino – Purchases 627 570 57

2 046 1 200 186 250 350 60 200 500 100 540 520 541

Extract General Ledger of D Keogh

GST Receivable 100 31 Jul 16 Accounts Payable Ctrl PJ1 186

Accounts Payable Control 200 31 Jul 16 Purchases PJ1 2 046

Purchases 500 31 Jul 16 Accounts Payable Ctrl PJ1 1 200

Advertising 520 31 Jul 16 Accounts Payable Ctrl PJ1 350

Vehicle Expense 540 31 Jul 16 Accounts Payable Ctrl PJ1 250

Stationery 541 31 Jul 16 Accounts Payable Ctrl PJ1 60

Extract Trial Balance of D Keogh as at 31 July 2016

GST Receivable 100 186 Accounts Payable Control 200 2 046 Purchases 500 1 200 Advertising 520 350 Vehicle Expense 540 250 Stationery 541 60 2 046 2 046



Question 4.12

General Journal of D Keogh GJ 1 Date Particulars Ref Debit Credit

4 Jul 16 Purchases 500 190 GST Receivable 100 19 Accounts Payable Control 200 209 Credit purchase from E Joseph

5 Jul 16 Purchases 500 40 GST Receivable 100 4 Accounts Payable Control 200 44

Credit purchase from S Di Martino 7 Jul 16 Vehicle Expense 540 250 GST Receivable 100 25 Accounts Payable Control 200 275 Credit purchase from Grenfell Tyre Co

8 Jul 16 Purchases 500 380 GST Receivable 100 38 Accounts Payable Control 200 418

Credit purchase from D Palmino 11 Jul 16 Purchases 500 120

GST Receivable 100 12 Accounts Payable Control 200 132 Credit purchase from S Di Martino Accounts Payable Control 200 110 Purchases 500 100 GST Receivable 100 10 Credit purchase return by D Palmino

20 Jul 16 Advertising 520 350 GST Receivable 100 35 Accounts Payable Control 200 385 Advertising with Bathurst Press, on credit

23 Jul 16 Stationery 541 60 GST Receivable 100 6 Accounts Payable Control 200 66 Credit stationery purchase from Parkes Stationery

25 Jul 16 Purchases 500 570 GST Receivable 100 57

Accounts Payable Control 200 627

Credit purchase from D Palmino



Question 4.12 general journal processing

Extract General Ledger of D Keogh GST Receivable 100

4 Jul 16 Accounts Payable Ctrl GJ1 19 11 Jul 16 Accounts Payable Ctrl GJ1 10

5 Jul 16 Accounts Payable Ctrl GJ1 4 31 Jul 16 Balance c/d 186

7 Jul 16 Accounts Payable Ctrl GJ1 25





25 Jul 16 Accounts Payable Ctrl GJ1 57 196 196

1 Aug 16 Balance b/d 186

Accounts Payable Control 200 11 Jul 16 Purchases [return] GJ1 110 4 Jul 16 Purchases GJ1 209

31 Jul 16 Balance c/d 2 046 5 Jul 16 Purchases GJ1 44

7 Jul 16 Vehicle Expense GJ1 275

8 Jul 16 Purchases GJ1 418

11 Jul 16 Purchases GJ1 132

20 Jul 16 Advertising GJ1 385

23 Jul 16 Stationery GJ1 66

25 Jul 16 Purchases GJ1 627 2 156 2 156

1 Aug 16 Balance b/d 2 046

Purchases 500 4 Jul 16 Accounts Payable Ctrl GJ1 190 11 Jul 16 Accounts Payable Ctrl GJ1 100

5 Jul 16 Accounts Payable Ctrl GJ1 40 Balance c/d 1 200



25 Jul 16 Accounts Payable Ctrl GJ1 570 1 300 1 300

1 Aug 16 Balance b/d 1 200 Advertising 520

20 Jul 16 Accounts Payable Ctrl GJ1 350 Vehicle Expense 540

7 Jul 16 Accounts Payable Ctrl GJ1 250 Stationery 541




Question 4.12 finalised

Extract Trial Balance of D Keogh as at 31 July 2016

GST Receivable 100 186 Accounts Payable Control 200 2 046 Purchases 500 1 200 Advertising 520 350 Vehicle Expense 540 250 Stationery 541 60 2 046 2 046


Purchases Journal of L Andrews PJ 1 Date Inv


Particulars Ref Acc’nt

Payab Purch-ases

GST Credit

Stationery

Office Furnit

Vehicle Exp

1 Aug 16 247 G Mendosa – Purchases 242 220 22 3 Aug 16 307 Leeton Stationers – Stat 132 12 120 7 Aug 16 376 C Tripodi – Purchases 275 250 25 9 Aug 16 213 K Paca – Purchases 781 710 71

12 Aug 16 161 G Mendosa – Purch Return (55) (50) (5) 15 Aug 16 356 K Paca – Purchases 968 880 88 24 Aug 16 248 Office Supply – Off Furnit 495 45 450

185 K Paca – Purchase Return (121) (110) (11) 29 Aug 16 763 Highway Petrol – Veh Exp 462 42 420

3 179 1 900 289 120 450 420 200 500 100 540 150 541

Extract General Ledger of L Andrews

GST Receivable 100 31 Aug 16 Accounts Payable Ctrl PJ1 289

Office Furniture 150 31 Aug 16 Accounts Payable Ctrl PJ1 450

Accounts Payable Control 200 31 Aug 16 Purchases PJ1 3 179

Purchases 500 31 Aug 16 Accounts Payable Ctrl PJ1 1 900

Stationery 540 31 Aug 16 Accounts Payable Ctrl PJ1 120

Vehicle Expense 541 31 Aug 16 Accounts Payable Ctrl PJ1 420




Extract Trial Balance of L Andrews as at 31 August 2016

GST Receivable 100 289 Office Furniture 150 450 Accounts Payable Control 200 3 179 Purchases 500 1 900 Stationery 540 120 Vehicle Expense 541 420 3 179 3 179


Purchases Journal of S Nada PJ 1 Date Inv



Payable Inven-tory

GST Receiv

Office Equip

Vehicle Exp

Insur-ance

3 Sep 16 424 M Karen – Inventory 968 880 88 561 P Carina – Inventory 275 250 25

10 Sep 16 013 S Khamsy – Office Equip 726 66 660 15 Sep 16 506 Wagga Petrol – Veh Exp 440 40 400 18 Sep 16 475 M Karen – Inventory 1 045 950 95 19 Sep 16 365 S Khamsy – Inventory 374 340 34

229 Y Lana – Inventory 649 590 59 21 Sep 16 057 M Karen – Invent Return (253) (230) (23) 27 Sep 16 764 T Claudia Co – Insurance 1 375 125 1 250

5 599 2 780 509 660 400 1 250 200 100 101 150 540 541

Extract General Ledger of S Nada

Inventory 100 30 Sep 16 Accounts Payable Ctrl PJ1 2 780

GST Receivable 101 30 Sep 16 Accounts Payable Ctrl PJ1 509

Office Equipment 150 30 Sep 16 Accounts Payable Ctrl PJ1 660

Accounts Payable Control 200 30 Sep 16 Purchases PJ1 5 599

Vehicle Expense 540 30 Sep 16 Accounts Payable Ctrl PJ1 400

Insurance 541 30 Sep 16 Accounts Payable Ctrl PJ1 1 250




Extract Trial Balance of S Nada as at 30 September 2016

Inventory 100 2 780

GST Receivable 101 509

Office Equipment 150 660

Accounts Payable Control 200 5 599

Vehicle Expense 540 400

Insurance 541 1 250 5 599 5 599


Cash Receipts Journal of P Marcela CR 1 Date Rmt

Rec Drawer and / or Particulars Ref Bank Sales GST

Payab Int

Rec’d Rent Rec’d

CommRec’d

Divid’dRec’d

3 Oct 16 585 Sales 187 170 17 14 Oct 16 586 Pyramid Invest – Int Rec’d 168

587 Leila & Zarif – Rent Rec’d 850 62 620 20 Oct 16 588 Mary & Jane – Rent Rec 440 40 400 26 Oct 16 589 Sales 250 25

590 Sales 160 16 591 Sales 946 450 45

27 Oct 16 592 W Bruce – Comm Rec’d 704 64 640 30 Oct 16 593 BHP – Dividend Rec’d 146 146

3 273 1 030 269 168 1 020 640 146 100 400 200 410 411 412 413

Extract General Ledger of P Marcela Bank 100

31 Oct 16 Receipts CR1 3 273 GST Payable 200

31 Oct 16 Bank [receipt] CR1 269 Sales 400

31 Oct 16 Bank [receipt] CR1 1 030 Interest Received 410

31 Oct 16 Bank [receipt] CR1 168 Rent Received 411

31 Oct 16 Bank [receipt] CR1 1 020 Commission Received 412

31 Oct 16 Bank [receipt] CR1 640 Dividend Received 413

31 Oct 16 Bank [receipt] CR1 146




Extract Trial Balance of P Marcela as at 31 October 2016

Bank 100 3 273 GST Payable 200 269 Sales 400 1 030 Interest Received 410 168 Rent Received 411 1 020 Commission Received 412 640 Dividend Received 413 146 3 273 3 273

General Journal of P Marcela GJ 1 Date Particulars Ref Debit Credit

3 Oct 16 Bank 100 187 Sales 400 170 GST Payable 200 17 Cash sales

14 Oct 16 Bank 100 168 Interest Received 410 168

Received interest from Pyramid Investments Bank 100 682

Rent Received 411 620 GST Payable 200 62 Rent received from Leila & Zarif

20 Oct 16 Bank 100 440 Rent Received 411 400 GST Payable 200 40

Rent received from Mary & Jane 26 Oct 16 Bank 100 275

Sales 400 250 GST Payable 200 25 Cash sales Bank 100 176 Sales 400 160 GST Payable 200 16 Cash sales Bank 100 495 Sales 400 450 GST Payable 200 45 Cash sales

27 Oct 16 Bank 100 704 Commission Received 412 640 GST Payable 200 64 Commission received from W Bruce

30 Oct 16 Bank 100 146 Dividend Received 413 146

Dividend received from BHP



Question 4.15 general journal processing

Extract General Ledger of P Marcela Bank 100

3 Oct 16 Sales GJ1 187 14 Oct 16 Interest Received GJ1 168

Rent Received GJ1 682 20 Oct 16 Rent Received GJ1 440 26 Oct 16 Sales GJ1 275

Sales GJ1 176 Sales GJ1 495

27 Oct 16 Commission Receiv GJ1 704 30 Oct 16 Dividend Received GJ1 146

3 273 GST Payable 200 3 Oct 16 Bank [receipt] GJ1 17 14 Oct 16 Bank [receipt] GJ1 62

20 Oct 16 Bank [receipt] GJ1 40


Bank [receipt] GJ1 16



269

Sales 400 3 Oct 16 Bank [receipt] GJ1 170 26 Oct 16 Bank [receipt] GJ1 250



1 030

Interest Received 410 14 Oct 16 Bank [receipt] GJ1 168 Rent Received 411 14 Oct 16 Bank [receipt] GJ1 620 20 Oct 16 Bank [receipt] GJ1 400 1 020

Commission Received 412 27 Oct 16 Bank [receipt] GJ1 640

Dividend Received 413 30 Oct 16 Bank [receipt] GJ1 146



Question 4.15 finalised (general journal processing) Extract Trial Balance of P Marcela

as at 31 October 2016 Bank 100 3 273 GST Payable 200 269 Sales 400 1 030 Interest Received 410 168 Rent Received 411 1 020 Commission Received 412 640 Dividend Received 413 146 3 273 3 273 Question 4.16 perpetual inventory applies

Cash Receipts Journal of P Damico CR 1 Date Rmt


Payab Comm Rec’d

Gen-eral

CoGS Inven-tory

3 Aug 16 707 Sales 210 21 126 126 708 Sales 680 68 408 408

709 Read n Resell – Com Rec 1 474 45 450

8 Aug 16 710 ANP – Interest Received 411 421 421

10 Aug 16 711 Sales 165 150 15 90 90

25 Aug 16 712 Ernest & Henry – Rent Rec 412 99 990

713 CRA – Dividend Rec’d 413 1 247 158

28 Aug 16 714 Julie & James – Rent Rec 412 49 490

715 Sales 836 270 27 162 162 4 143 1 310 324 450 2 059 786 786 100 400 200 410 500 101

Extract General Ledger of P Damico Bank 100

31 Aug 16 Receipts CR1 4 143 Inventory 101

31 Aug 16 Cost of Goods Sold CR1 786

GST Payable 200 31 Aug 16 Bank [receipt] CR1 324

Sales 400 31 Aug 16 Bank [receipt] CR1 1 310

Commission Received 410 31 Aug 16 Bank [receipt] CR1 450

Interest Received 411 8 Aug 16 Bank [receipt] CR1 421

Rent Received 412 25 Aug 16 Bank [receipt] CR1 990 28 Aug 16 Bank [receipt] CR1 490 1 480

continued



Question 4.16 continued (perpetual inventory applies) Extract General Ledger of P Damico continued Dividend Received 413

25 Aug 16 Bank [receipt] CR1 158

Cost of Goods Sold 500 31 Aug 16 Inventory CR1 786

Extract Trial Balance of P Damico as at 31 August 2016

Bank 100 4 143 Inventory 101 786 GST Payable 200 324 Sales 400 1 310 Commission Received 410 450 Interest Received 411 421 Rent Received 412 1 480 Dividend Received 413 158 Cost of Goods Sold 500 786 4 929 4 929


Cash Payments Journal of L Cheng CP 1 Date Rmt

Pmt Payee and / or Particulars Ref Bank Purch

ases GST

Receiv Vehicle

Exp Wages Statio

nery Advertising

2 Mar 16 691 E Acton – Purchases 88 80 8

4 Mar 16 692 All Wite Motors – Veh Exp 473 43 430

7 Mar 16 693 Farrer Supplies – Purchase 110 100 10

11 Mar 16 694 Cash – Wages 1 742 1 742

13 Mar 16 695 Delungra Stationery 121 11 110

17 Mar 16 696 On Line Advertisers – Advtg 187 17 170

24 Mar 16 697 Cabarita Brake – Veh Exp 308 28 280

25 Mar 16 698 Cash – Wages 1 824 1 824

699 Sharpe ‘n Kutt – Purchase 968 880 88 5 821 1 060 205 710 3 566 110 170

100 500 101 540 541 542 520

Extract General Ledger of L Cheng Bank 100

31 Mar 16 Payments CP1 5 821 GST Receivable 101

31 Mar 16 Bank [payment] CP1 205 Purchases 500

31 Mar 16 Bank [payment] CP1 1 060 Advertising 520

31 Mar 16 Bank [payment] CP1 170 continued



Question 4.17 continued periodic inventory applies Extract General Ledger of L Cheng

Vehicle Expense 540 31 Mar 16 Bank [payment] CP1 710

Wages 541 31 Mar 16 Bank [payment] CP1 3 566

Stationery 542 31 Mar 16 Bank [payment] CP1 110

Extract Trial Balance of L Cheng

as at 31 March 2016 Bank 100 5 821 GST Receivable 101 205 Purchases 500 1 060 Advertising 520 170 Vehicle Expense 540 710 Wages 541 3 566 Stationery 542 110 5 821 5 821

Question 4.17 general journal processing General Journal of L Cheng GJ 1

Date Particulars Ref Debit Credit 2 Mar 16 Purchases 500 80

GST Receivable 101 8 Bank 100 88 Cash purchase from E Acton for inventory

4 Mar 16 Vehicle Expense 540 430 GST Receivable 101 43 Bank 100 473

Payment to All Wite Motors for vehicle repair/service 7 Mar 16 Purchases 500 100

GST Receivable 101 10 Bank 100 110 Cash purchase from Farrer Supplies for goods

11 Mar 16 Wages 541 1 742 Bank 100 1 742

Wages paid 13 Mar 16 Stationery 542 110

GST Receivable 101 11 Bank 100 121 Payment to Delungra Stationery

17 Mar 16 Advertising 520 170 GST Receivable 101 17 Bank 100 187 Payment to On Line Advertisers

continued



Question 4.17 general journal processing General Journal of L Cheng continued GJ 1

24 Mar 16 Vehicle Expense 540 280 GST Receivable 101 28 Bank 100 308 Payment to Cabarita Brakes for vehicle repairs

25 Mar 16 Wages 541 1 824 Bank 100 1 824 Paid wages Purchases 500 880 GST Receivable 101 88 Bank 100 968 Payment to Sharpe ‘n Kutt for purchase of inventory

Extract General Ledger of L Cheng

Bank 100 2 Mar 16 Purchases GJ1 88 4 Mar 16 Vehicle Expense GJ1 473

7 Mar 16 Purchases GJ1 110

11 Mar 16 Wages GJ1 1 742

13 Mar 16 Stationery GJ1 121

17 Mar 16 Advertising GJ1 187

24 Mar 16 Vehicle Expense GJ1 308

25 Mar 16 Wages GJ1 1 824

Purchases GJ1 968


2 Mar 16 Bank [payment] GJ1 8 4 Mar 16 Bank [payment] GJ1 43 7 Mar 16 Bank [payment] GJ1 10 13 Mar 16 Bank [payment] GJ1 11 17 Mar 16 Bank [payment] GJ1 17 24 Mar 16 Bank [payment] GJ1 28 25 Mar 16 Bank [payment] GJ1 88

205 Purchases 500

2 Mar 16 Bank [payment] GJ1 80 7 Mar 16 Bank [payment] GJ1 100 25 Mar 16 Bank [payment] GJ1 880

1 060 Advertising 520

17 Mar 16 Bank [payment] GJ1 170 Vehicle Expense 540

4 Mar 16 Bank [payment] GJ1 430 24 Mar 16 Bank [payment] GJ1 280

710 continued



Question 4.17 finalised Extract General Ledger of L Cheng continued

Wages 541 11 Mar 16 Bank [payment] GJ1 1 742 11 Mar 16 Bank [payment] GJ1 1 824

3 566 Stationery 542

13 Mar 16 Bank [payment] GJ1 110

Extract Trial Balance of L Cheng as at 31 March 2016

Bank 100 5 821 GST Receivable 101 205 Purchases 500 1 060 Advertising 520 170 Vehicle Expense 540 710 Wages 541 3 566 Stationery 542 110

5 821 5 821


Cash Payments Journal of S Melissa CP 1 Date Rmt

Pmt Payee and / or Particulars Ref Bank Purch-

ases GST

Receiv Electri-

city Wages Vehicle

Exp Rates

2 May 16 371 C Leon – Purchases 561 510 51 10 May 16 372 Peel County Council – Elec 627 57 570 12 May 16 373 Cash – Wages 1 386 1 386 17 May 16 374 Ampol Petrol – Vehicle Exp 407 37 370 19 May 16 375 F Benefit – Purchases 869 790 79 24 May 16 376 Lisa Auto Electr – Veh Exp 418 38 380 26 May 16 377 Cash – Wages 1 837 1 837

378 L Carol – Purchases 319 290 29 29 May 16 379 Balranald Council – Rates 949 949

7 373 1 590 291 570 3 223 750 949 100 500 101 540 541 542 543

Extract General Ledger of S Melissa

Bank 100 31 May 16 Payments CP1 7 373

GST Receivable 101 31 May 16 Bank [payment] CP1 291

Purchases 500 31 May 16 Bank [payment] CP1 1 590

Electricity 540 31 May 16 Bank [payment] CP1 570

continued




Extract General Ledger of S Melissa continued Wages 541

31 May 16 Bank [payment] CP1 3 223 Vehicle Expense 542

31 May 16 Bank [payment] CP1 750 Rates 543

31 May 16 Bank [payment] CP1 949

Extract Trial Balance of S Melissa as at 31 May 2016

Bank 100 7 373 GST Receivable 101 291 Purchases 500 1 590 Electricity 540 570 Wages 541 3 223 Vehicle Expense 542 750 Rates 543 949

7 373 7 373


Cash Payments Journal of S Melissa CP 1 Date Rmt

Pmt Payee and / or Particulars Ref Bank Inven-

tory GST

Receiv Electri-

city Wages Vehicle

Exp Rates

2 May 16 371 C Leon – Inventory 561 510 51

10 May 16 372 Peel County Counc – Elec 627 57 570

12 May 16 373 Cash – Wages 1 386 1 386

17 May 16 374 Ampol Petrol – Veh Exp 407 37 370

19 May 16 375 F Benefit – Inventory 869 790 79

24 May 16 376 Lisa Auto Electr – Veh Exp 418 38 380

26 May 16 377 Cash – Wages 1 837 1 837

378 L Carol – Inventory 319 290 29

29 May 16 379 Balranald Council – Rates 949 949 7 373 1 590 291 570 3 223 750 949 100 101 102 540 541 542 543




Extract General Ledger of S Melissa Bank 100

31 May 16 Payments CP

7 373 Inventory 101

31 May 16 Bank [payment] CP



291 Electricity 540


570 Wages 541


3 223 Vehicle Expense 542


750 Rates 543


949

Extract Trial Balance of S Melissa as at 31 May 2016

Bank 100 7 373

Inventory 101 1 590


Electricity 540 570

Wages 541 3 223


Rates 543 949

7 373 7 373


Cash Receipts Journal of P Rosso CR 1 Date Rmt


Payab Rent Rec’d

Interest Rec’d

Divid’d Rec’d

3 Jan 16 289 Sales 704 640 64 7 Jan 16 290 Sales 900 90

291 Peta & Cedric – Rent Rec 1 903 83 830 10 Jan 16 292 Tortoise Invest – Int Rec’d 184

293 Sales 750 75 294 Consol Gold – Dividen Rec 1 297 288

21 Jan 16 295 Sales 1 089 990 99 29 Jan 16 296 Isaacs R E – Rent Rec’d 58 580

297 Sales 1 353 650 65 6 346 3 930 534 1 410 184 288

100 400 200 410 411 412




Cash Payments Journal of P Rosso CP 1 Date Rmt


ases GST

Receiv Wages Vehicle

Exp Station

ery

3 Jan 16 257 Toledo & Co – Purchases 374 340 34 5 Jan 16 258 Cash – Wages 2 552 2 552 8 Jan 16 259 Ampol – Vehicle Expense 209 19 190

260 Brady Wholesale – Purchase 253 230 23 15 Jan 16 261 F Benefit – Purchases 484 440 44 19 Jan 16 262 Lisa Auto Elect – Vehic Exp 242 22 220 25 Jan 16 263 Seaforth Stationery 66 6 60

264 Roff Repair – Vehicle Exp 165 15 150 28 Jan 16 265 Glover Supplies – Purchase 176 160 16

4 521 1 170 179 2 552 560 60 100 500 101 540 541 542

Extract General Ledger of P Rosso Bank 100

31 Jan 16 Receipts CR1 6 346 31 Jan 16 Payments CP1 4 521

Balance c/d 1 825

6 346 6 346

1 Feb 16 Balance b/d 1 825

GST Receivable 101 31 Jan 16 Bank [payment] CP1 179

GST Payable 200 31 Jan 16 Bank [receipt] CR1 534

Sales 400 31 Jan 16 Bank [receipt] CR1 3 930

Rent Received 410 31 Jan 16 Bank [receipt] CR1 1 410

Interest Received 411 31 Jan 16 Bank [receipt] CR1 184

Dividend Received 412 31 Jan 16 Bank [receipt] CR1 288

Purchases 500 31 Jan 16 Bank [payment] CP1 1 170

Wages 540 31 Jan 16 Bank [payment] CP1 2 552

Vehicle Expense 541 31 Jan 16 Bank [payment] CP1 560

Stationery 542 31 Jan 16 Bank [payment] CP1 60



Question 4.19 finalised (periodic inventory applies) Extract Trial Balance of P Rosso

as at 31 January 2016

Bank 100 1 825 GST Receivable 101 179 GST Payable 200 534 Sales 400 3 930 Rent Received 410 1 410 Interest Received 411 184 Dividend Received 412 288 Purchases 500 1 170 Wages 540 2 552 Vehicle Expense 541 560 Stationery 542 60 6 346 6 346

Question 4.20 perpetual inventory applies Cash Receipts Journal of S Wong CR 1

Date Rmt Rec

Drawer and / or Particulars Ref Bank Sales GST Payab

Rent Rec’d

Interest Rec’d

CoGS Inven-tory

7 Nov 16 532 Sales 1 760 1 600 160 960 960

14 Nov 16 533 Sales 760 76 456 456

534 M Sandra – Rent Rec’d 1 738 82 820

28 Nov 16 535 Spiegel Invest – Int Rec’d 197

536 Sales 1 022 750 75 450 450

30 Nov 16 537 Sales 957 870 87 522 522 5 477 3 980 480 820 197 2 388 2 388

100 400 200 410 411 500 101 Cash Payments Journal of S Wong CP 1

Date Rmt Pmt

Payee and / or Particulars Ref Bank Inven-tory

GST Receiv

Wages Electri-city

Vehicle Exp

6 Nov 16 766 W Susan – Inventory 286 260 26 15 Nov 16 767 Cash – Wages 2 500 2 500

768 Riverina Electricity 550 50 500 27 Nov 16 769 Simpson Petrol – Veh Exp 187 17 170

3 523 260 93 2 500 500 170 100 101 102 540 541 542

Cash Receipts Journal of S Wong CR 2 Date Rmt

Rec Drawer and / or Particulars Ref Bank Rent

Rec’d GST

Payable Sales CoGS Inven-

tory

1 Dec 16 538 KCR Real Est – Rent Rec’d 550 500 50

5 Dec 16 539 Sales 814 74 740 444 444

14 Dec 16 540 M Sandra – Rent Rec’d 847 770 77

30 Dec 16 541 KCR Real Est – Rent Rec 500 50

542 Sales 1 496 86 860 516 516

3 707 1 770 337 1 600 960 960 100 410 200 400 500 101



Question 4.20 continued (perpetual inventory applies) Cash Payments Journal of S Wong CP 2

Date Rmt Pmt

Payee and / or Particulars Ref Bank Tele-phone

GST Receiv

Rates Inven-tory

Wages Vehicle Exp

2 Dec 16 770 Telstra – Telephone 803 730 73 771 Albury Council – Rates 751 751

12 Dec 16 772 M Silva – Inventory 836 76 760 15 Dec 16 773 Cash – Wages 2 800 2 800 27 Dec 16 774 Simpson Petrol – Veh Exp 220 20 200

5 410 730 169 751 760 2 800 200 100 543 101 544 500 540 542

Extract General Ledger of S Wong

Bank 100 30 Nov 16 Receipts CR1 5 477 30 Nov 16 Payments CP1 3 523

Balance c/d 1 954

5 477 5 477

1 Dec 16 Balance b/d 1 954 31 Dec 16 Payments CP2 5 410

31 Dec 16 Receipts CR2 3 707 Balance c/d 251

5 661 5 661

1 Jan 17 Balance b/d 251

Inventory 101 30 Nov 16 Bank [payment] CP1 260 30 Nov 16 Cost of Goods Sold CR1 2 388

Balance c/d 2 128

2 388 2 388

31 Dec 16 Bank [payment] CP2 760 1 Dec 16 Balance b/d 2 128

Balance c/d 2 328 31 Dec 16 Cost of Goods Sold CR1 960

3 088 3 088

Normally this account has a debit balance 1 Jan 17 Balance b/d 2 328

GST Receivable 102 30 Nov 16 Bank [payment] CP1 93 31 Dec 16 Bank [payment] CP2 169

262

GST Payable 200 30 Nov 16 Bank [receipt] CR1 480 31 Dec 16 Bank [receipt] CR2 337

1017

Sales 400 30 Nov 16 Bank [receipt] CR1 3 980 31 Dec 16 Bank [receipt] CR2 1 600

4018 continued




Extract General Ledger of S Wong continued Rent Received 410

30 Nov 16 Bank [receipt] CR1 820 31 Dec 16 Bank [receipt] CR2 1 770

2 590

Interest Received 411 30 Nov 16 Bank [receipt] CR1 197

Cost of Goods Sold 500 30 Nov 16 Inventory CR1 2 388 31 Dec 16 Inventory CR2 960

3 348 Wages 540

30 Nov 16 Bank [payment] CP1 2 500 31 Dec 16 Bank [payment] CP2 2 800

5 300 Electricity 541

30 Nov 16 Bank [payment] CP1 500 Vehicle Expense 542

30 Nov 16 Bank [payment] CP1 170 31 Dec 16 Bank [payment] CP2 200

370 Telephone 543

31 Dec 16 Bank [payment] CP2 730 Rates 544

31 Dec 16 Bank [payment] CP2 751

Trial Balance of S Wong as at 30 November 2016

Bank 100 1 954 Inventory 101 2 128 GST Receivable 102 93 GST Payable 200 480 Sales 400 3 980 Rent Received 410 820 Interest Received 411 197 Cost of Goods Sold 500 2 388 Wages 540 2 500 Electricity 541 500 Vehicle Expense 542 170 7 605 7 605



Question 4.20 continued (perpetual inventory applies) Trial Balance of S Wong

as at 31 December 2016

Bank 100 251 Inventory 101 2 328 GST Receivable 101 262 GST Payable 200 817 Sales 400 5 580 Rent Received 410 2 590 Interest Received 411 197 Cost of Goods Sold 500 3 348 Wages 540 5 300 Electricity 541 500 Vehicle Expense 542 370 Telephone 543 730 Rates 544 751 11 512 11 512

Question 4.21 perpetual inventory applies Sales Journal of C Noble SJ 1

Date Inv Adj


Ref Account Receiv

Sales GST Payable

CoGS Inven-tory

7 Jan 16 601 G Griggs – Sales 2 321 2 110 211 1 002 1 002

12 Jan 16 602 J Pollard – Sales 1 661 1 510 151 717 717

603 G Griggs – Sales 1 573 1 430 143 679 679

21 Jan 16 238 J Pollard – Sales Return (22) (20) (2) 5 533 5 030 503 2 398 2 398

101 400 201 500 102 Purchases Journal of C Noble PJ 1

Date InvAdj

Accounts Payable and / or Particulars Ref Account Payable

Inven-tory

GST Receiv

Office Equip

9 Jan 16 456 S Roff – Inventory 693 630 63 14 Jan 16 492 R Huber – Inventory 473 430 43 20 Jan 16 338 Office Supply – Office Equip 1 551 141 1 410 21 Jan 16 083 S Roff – Inventory Return (88) (80) (8)

2 629 980 239 1 410 200 102 103 150

Cash Receipts Journal of C Noble CR 1 Date Rmt


Payab Account Receiv

Rent Rec’d

CoGS Inven-tory

7 Jan 16 149 Sales 517 470 47 223 223

21 Jan 16 150 J Pollard – Acc Receivable 1 639 1 639

25 Jan 16 151 Rent Received 75 750

152 Sales 2 310 1 350 135 641 641

29 Jan 16 153 Rent Received 528 48 480

31 Jan 16 154 G Griggs – Acc Receivable 3 894 3 894 8 888 1 820 305 5 533 1 230 864 864 100 400 201 101 410 500 102



Question 4.21 continued (perpetual inventory applies) Cash Payments Journal of C Noble CP 1

Date Rmt Pmt

Payee and / or Particulars Ref Bank Inven-tory

GST Receiv

Wages Acc’nt Payabl

9 Jan 16 791 Inventory 550 500 50 13 Jan 16 792 Inventory 352 320 32 18 Jan 16 793 Wages 1 453 1 453 22 Jan 16 794 R Huber – Acc Payable 473 473 30 Jan 16 795 Office Supply – Acc Payab 1 551 1 551

4 379 820 82 1 453 2 024 100 102 103 540 200

Extract General Ledger of C Noble Bank 100


Balance c/d 4 509

8 888 8 888


Accounts Receivable Control 101 31 Jan 16 Sales SJ1 5 533 31 Jan 16 Bank [receipt] CR1 5 533

Inventory 102 31 Jan 16 Accounts Payable Ctrl PJ1 980 31 Jan 16 Cost of Goods Sold SJ1 2 398

Bank [payment] CP1 820 Cost of Goods Sold CR1 864 Balance c/d 1 462 3 262 3 262

Normally this account would have a debit balance 1 Feb 16 Balance b/d 1 462

GST Receivable 103 31 Jan 16 Accounts Payable Ctrl PJ1 239

Bank [payment] CP1 82 321

Office Equipment 150 31 Jan 16 Accounts Payable Ctrl PJ1 1 410

Accounts Payable Control 200 31 Jan 16 Bank [payment] CP1 2 024 31 Jan 16 Purchases PJ1 2 629 Balance c/d 605 2 629 2 629

1 Feb 16 Balance b/d 605

GST Payable 201 31 Jan 16 Acc’nt Receivable Ctrl SJ1 503 Bank [receipt] CR1 305 808

continued




Extract General Ledger of C Noble continued Sales 400

31 Jan 16 Acc’nt Receivable Ctrl SJ1 5 030 Bank [receipt] CR1 1 820 6 850


Cost of Goods Sold 500 31 Jan 16 Inventory SJ1 2 398

Inventory CR1 864 3 262


Extract Trial Balance of C Noble


Bank 100 4 509 Inventory 102 1 462 GST Receivable 103 321 Office Equipment 150 1 410 Accounts Payable Control 200 605 GST Payable 201 808 Sales 400 6 850 Rent Received 410 1 230 Cost of Goods Sold 500 3 262 Wages 540 1 453 10 955 10 955


Sales Journal of C Noble SJ 1 Date Inv



Receiv Sales GST

Payab

7 Jan 16 601 G Griggs – Sales 2 321 2 110 211 12 Jan 16 602 J Pollard – Sales 1 661 1 510 151

603 G Griggs – Sales 1 573 1 430 143 21 Jan 16 238 J Pollard – Sales Return (22) (20) (2)

5 533 5 030 503 101 400 201




Purchases Journal of C Noble PJ 1 Date Inv



Payable Purch-ases

GST Receiv

Office Equip

9 Jan 16 456 S Roff – Purchases 693 630 63 14 Jan 16 492 R Huber – Purchases 473 430 43 20 Jan 16 338 Office Supply – Office Equ 1 551 141 1 410 21 Jan 16 083 S Roff – Purchase Return (88) (80) (8)

2 629 980 239 1 410 200 500 102 150

Cash Receipts Journal of C Noble CR 1

Date Rmt Rec


Account Receiv

Rent Rec’d

7 Jan 16 149 Sales 517 470 47 21 Jan 16 150 J Pollard – Acc Receivable 1 639 1 639 25 Jan 16 151 Rent Received 75 750

152 Sales 2 310 1 350 135 29 Jan 16 153 Rent Received 528 48 480 31 Jan 16 154 G Griggs – Acc Receivable 3 894 3 894

8 888 1 820 305 5 533 1 230 100 400 201 101 410

Cash Payments Journal of C Noble CP1

Date Rmt Pmt

Payee and / or Particulars Ref Bank Purch-ases

GST Receiv

Wages Acc’nt Payabl

9 Jan 16 791 Purchases 550 500 50 13 Jan 16 792 Purchases 352 320 32 18 Jan 16 793 Wages 1 453 1 453 22 Jan 16 794 R Huber – Acc Payable 473 473 30 Jan 16 795 Office Supply – Acc Payable 1 551 1 551

4 379 820 82 1 453 2 024 100 500 102 540 200

Extract General Ledger of C Noble Bank 100


Balance c/d 4 509

8 888 8 888



GST Receivable 102 31 Jan 16 Accounts Payable Ctrl PJ1 239

Bank [payment] CP1 82

321 continued




Extract General Ledger of C Noble continued Office Equipment 150

31 Jan 16 Accounts Payable Ctrl PJ1 1 410

Accounts Payable Control 200 31 Jan 16 Bank [payment] CP1 2 024 31 Jan 16 Purchases PJ1 2 629 Balance c/d 605 2 629 2 629


GST Payable 201 31 Jan 16 Acc’nt Receivable Ctrl SJ1 503 Bank [receipt] CR1 305 808

Sales 400 31 Jan 16 Acc’nt Receivable Ctrl SJ1 5 030 Bank [receipt] CR1 1 820 6 850


Purchases 500 31 Jan 16 Accounts Payable Ctrl PJ1 980

Bank [payment] CP1 820 1 800


Extract Trial Balance of C Noble as at 31 January 2016

Bank 100 4 509 GST Receivable 102 321 Office Equipment 150 1 410 Accounts Payable Control 200 605 GST Payable 201 808 Sales 400 6 850 Rent Received 410 1 230 Purchases 500 1 800 Wages 540 1 453 9 493 9 493




Sales Journal of A Gregory SJ 1 Date Inv



Receiv Sales GST

Payab Machi-nery

CoGS Inven-tory

3 Jul 16 240 J Stone – Sales 2 013 1 830 183 1 006 1 006

17 Jul 16 241 J Stone – Sales 2 607 2 370 237 1 303 1 303

20 Jul 16 242 G Shinfield – Sales 1 859 1 690 169 929 929

24 Jul 16 243 C Dolanski – Machinery 880 80 800

25 Jul 16 119 G Shinfield – Sale Return (77) (70) (7) (38) (38) 803 5 820 662 800 3 200 3 200

101 400 201 150 500 102

Purchases Journal of A Gregory PJ 1 Date Inv



Payable Machi-nery

GST Receiv

Inven-tory

20 Jul 16 341 Machine Sale Co – Mach 4 587 4 170 417 27 Jul 16 165 G Demby – Inventory 517 47 470

878 J Shumack – Inventory 176 16 160

693 4 170 480 630 200 150 103 102

Cash Receipts Journal of A Gregory CR 1

Date Rmt Rec


Rent Rec’d

Acc’nt Receiv

CoGS Inven-tory

10 Jul 16 261 Sales 880 88 484 484

262 Davis R Est – Rent Rec’d 1 782 74 740

17 Jul 16 263 Sales 1 518 1 380 138 759 759

20 Jul 16 264 J Stone – Acc Receivable 4 620 4 620

25 Jul 16 265 Sales 1 683 1 530 153 841 841

29 Jul 16 266 Holmes R Est – Rent Rec 1 298 118 1 180 2 909 3 790 571 1 920 4 620 2 084 2 084

100 400 201 410 101 500 102

Cash Payments Journal of A Gregory CP 1 Date Rmt


tory GST

Receiv Wages Motor

Vehicle Acc’nt Payab

4 Jul 16 194 Reid & Co – Inventory 363 330 33 13 Jul 16 195 Cash – Wages 1 950 1 950 15 Jul 16 196 RAGS Autos – Motor Veh 2 695 245 2 450 23 Jul 16 197 Machinery Sales – Acc Pay 4 587 4 587 25 Jul 16 198 K King – Inventory 638 580 58 27 Jul 16 199 Cash – Wages 2 000 2 000

640 910 336 3 950 2 450 4 587 100 102 103 540 151 200




Extract General Ledger of A Gregory Bank 100

31 Jul 16 Receipts CR1 10 901 31 Jul 16 Payments CP1 12 233

Balance c/d 1 332

12 233 12 233


Accounts Receivable Control 101 31 Jul 16 Sales SJ1 7 282 31 Jul 16 Bank [receipt] CR1 4 620

Balance c/d 2 662

7 282 7 282


Inventory 102 31 Jul 16 Accounts Payable Ctrl PJ1 630 31 Jul 16 Cost of Goods Sold SJ1 3 200

Bank [payment] CP1 910 Cost of Goods Sold CR1 2 084

Balance c/d 3 744

5 284 5 284

Normally this account would have a debit balance 1 Aug 16 Balance b/d 3 744 GST Receivable 103

31 Jul 16 Accounts Payable Ctrl PJ1 480 Bank [payment] CP1 336

816

Machinery 150 31 Jul 16 Accounts Payable Ctrl PJ1 4 170 31 Jul 16 Acc’nt Receivable Ctrl SJ1 800

Balance c/d 3 370

4 170 4 170

1 Aug 16 Balance b/d 3 370 Motor Vehicle 151

31 Jul 16 Bank [payment] CP1 2 450

Accounts Payable Control 200 31 Jul 16 Bank [payment] CP1 4 587 31 Jul 16 Purchases PJ1 5 280

Balance c/d 693

5 280 5 280

1 Aug 16 Balance b/d 693 GST Payable 201

31 Jul 16 Acc’nt Receivable Ctrl SJ1 662 Bank [receipt] CR1 571

1 233

Sales 400 31 Jul 16 Acc’nt Receivable Ctrl SJ1 5 820 Bank [receipt] CR1 3 790

9 610 continued




Extract General Ledger of A Gregory continued Rent Received 410

31 Jul 16 Bank [receipt] CR1 1 920

Cost of Goods Sold 500 31 Jul 16 Inventory SJ1 3 200

Inventory CR1 2 084 5 284

Wages 540 31 Jul 16 Bank [payment] CP1 3 950

Extract Trial Balance of A Gregory

as at 31 July 2016

Bank 100 1 332 Accounts Receivable Control 101 2 662 Inventory 102 3 744 GST Receivable 103 816 Machinery 150 3 370 Motor Vehicle 151 2 450 Accounts Payable Control 200 693 GST Payable 201 1 233 Sales 400 9 610 Rent Received 410 1 920 Cost of Goods Sold 500 5 284 Wages 540 3 950 18 532 18 532

Question 4.22 periodic inventory applies Sales Journal of A Gregory SJ 1

Date InvAdj


Ref Account Receiv

Sales GST Payab

Machi-nery

3 Jul 16 240 J Stone – Sales 2 013 1 830 183 17 Jul 16 241 J Stone – Sales 2 607 2 370 237 20 Jul 16 242 G Shinfield – Sales 1 859 1 690 169 24 Jul 16 243 C Dolanski – Machinery 880 80 800 25 Jul 16 119 G Shinfield – Sale Return (77) (70) (7)

7 282 5 820 662 800 101 400 201 150

Purchases Journal of A Gregory PJ 1

Date Inv Adj

Accounts Payable and / or Particulars

Ref Account Payable

Machi-nery

GST Receiv

Purch-ases

20 Jul 16 341 Machine Sale Co – Mach 4 587 4 170 417 27 Jul 16 165 G Demby – Purchases 517 47 470

878 J Shumack – Purchases 176 16 160 5 280 4 170 480 630

200 150 102 500




Cash Receipts Journal of A Gregory CR 1 Date Rmt


Payab Rent Rec’d

Acc’nt Receiv

10 Jul 16 261 Sales 880 88 262 Davis R Est – Rent Rec’d 1 782 74 740

17 Jul 16 263 Sales 1 518 1 380 138 20 Jul 16 264 J Stone – Acc Receivable 4 620 4 620 25 Jul 16 265 Sales 1 683 1 530 153 29 Jul 16 266 Holmes R Est – Rent Rec 1 298 118 1 180

10 901 3 790 571 1 920 4 620 100 400 201 410 101

Cash Payments Journal of A Gregory CP 1

Date Rmt Pmt


GST Receiv

Wages Motor Vehicle

Acc’nt Payab

4 Jul 16 194 Reid & Co – Purchases 363 330 33 13 Jul 16 195 Cash – Wages 1 950 1 950 15 Jul 16 196 RAGS Autos – Motor Veh 2 695 245 2 450 23 Jul 16 197 Machinery Sales – Acc Pay 4 587 4 587 25 Jul 16 198 K King – Purchases 638 580 58 27 Jul 16 199 Cash – Wages 2 000 2 000

12 233 910 336 3 950 2 450 4 587 100 500 102 540 151 200

Extract General Ledger of A Gregory

Bank 100 31 Jul 16 Receipts CR1 10 901 31 Jul 16 Payments CP1 12 233

Balance c/d 1 332

12 233 12 233



Balance c/d 2 662

7 282 7 282

1 Aug 16 Balance b/d 2 662 GST Receivable 102

31 Jul 16 Accounts Payable Ctrl PJ1 480 Bank [payment] CP1 336 816

Machinery 150 31 Jul 16 Accounts Payable Ctrl PJ1 4 170 31 Jul 16 Acc’nt Receivable Ctrl SJ1 800

Balance c/d 3 370

4 170 4 170

1 Aug 16 Balance b/d 3 370 continued




Extract General Ledger of A Gregory continued Motor Vehicle 151


Accounts Payable Control 200 31 Jul 16 Bank [payment] CP1 4 587 31 Jul 16 Purchases PJ1 5 280

Balance c/d 693

5 280 5 280


GST Payable 201 31 Jul 16 Acc’nt Receivable Ctrl SJ1 662

Bank [receipt] CR1 571

1 233

Sales 400 31 Jul 16 Acc’nt Receivable Ctrl SJ1 5 820

Bank [receipt] CR1 3 790

9 610

Rent Received 410 31 Jul 16 Bank [receipt] CR1 1 920

Purchases 500 31 Jul 16 Accounts Payable Ctrl PJ1 630



Extract Trial Balance of A Gregory as at 31 July 2016

Bank 100 1 332 Accounts Receivable Control 101 2 662 GST Receivable 102 816 Machinery 150 3 370 Motor Vehicle 151 2 450 Accounts Payable Control 200 693 GST Payable 201 1 233 Sales 400 9 610 Rent Received 410 1 920 Purchases 500 1 540 Wages 540 3 950 14 788 14 788



Question 4.23

Transactions Journals of Mia

Journals of Gus

Mia sold inventory to Gus SJ PJ

Gus received goods from Mia SJ PJ

Gus sold inventory to Mia PJ SJ

Mia sent a tax invoice to Gus SJ PJ

Mia paid Gus CP CR

Mia received a remittance from Gus CR CP

Gus received from Mia, a remittance with purchase order CR CP

Gus paid salaries nil CP

Gus received a remittance from Martha nil CR

Gus processed a cash sale to Mia CP CR

Mia received a tax invoice from Gus PJ SJ

Mia purchased for cash from Gus CP CR

Question 4.24

Transactions Journals of Glen

Journals of Rae

Glen purchased office furniture from Rae PJ SJ

Rae received a tax invoice from Glen SJ PJ

Rae paid Glen CR CP

Glen received goods from Rae, having sent a remittance to Rae CP CR

Glen paid wages CP nil

Glen received a remittance from Trudy CR nil

Glen processed a cash sale to Rae CR CP

Rae sent a credit note to Glen (PJ) (SJ)

Rae received a tax invoice from Glen SJ PJ

Rae purchased inventory from Glen for cash CR CP

Question 4.25

Transactions of T Gail Journal Received cash from a customer who had purchased inventory CR

Purchased inventory on credit from a supplier PJ

Sold inventory to customer SJ

Sold inventory to customer for cash CR

Paid wages CP

An account receivable customer paid their outstanding debt CR

Purchased stationery PJ

Sent tax invoice with inventory despatched to customer SJ

Received tax invoice from supplier PJ

Purchased inventory on credit PJ

Sold inventory to customer; a remittance advice with purchase order CR

Received cleaning products and tax invoice from supplier PJ

Received rent from tenant CR

Paid transport business for previous month’s customer deliveries CP

Customer was mailed their tax invoice SJ



Question 4.26

Transactions of T Steven Journal Received remittance from customer CR

Customer paid their account CR

Forwarded remittance to supplier CP

Prepared a remittance for wages CP

Received credit note for overcharge (PJ)

Sent tax invoice to … SJ

Sold inventory for cash CR

Received interest from investment CR

Received inventory on credit PJ

Telephone bill was paid CP

Received tax invoice PJ

Sold inventory SJ

Sold inventory on credit SJ

Sold inventory having received remittance CR

Bought office equipment PJ

Question 4.27 periodic inventory applies PJ1, PJ3, CR4, CR, SJ7, (PJ), CR8, CP, CP9, SJ, SJ, SJ15, CP16, SJ17, (SJ), CP19, CP20, CR27, CR, CR, CP29.

Sales Journal of L Scott SJ 1 Date Inv



Receiv Sales GST

Payab Machi-nery

7 Mar 16 335 S Blayney – Sales 1 584 1 440 144 9 Mar 16 336 C Hunter – Sales 1 650 1 500 150

337 S Blayney – Sales 1 793 1 630 163 15 Mar 16 338 B Watkins – Sales 1 551 1 410 141 17 Mar 16 339 J Muller – Machinery 693 63 630

024 B Watkins – Sale Return (110) (100) (10)

7 161 5 880 651 630 101 400 201 150

Purchases Journal of L Scott PJ 1 Date Inv



Payable Purch-ases

GST Receiv

Statio-nery

1 Mar 16 175 M Robertson – Purchase 715 650 65 3 Mar 16 941 Stationery Shop – Stationery 99 9 90 7 Mar 16 069 M Robertson – Purch

Return (99) (90) (9)

715 560 65 90 200 500 102 540



Question 4.27 continued (periodic inventory applies) Cash Receipts Journal of L Scott CR 1

Date Rmt Rec


Divid’d Rec’d

Acc’nt Receiv

Interest Rec’d

4 Mar 16 322 Sales 1 370 137 323 CSR – Dividend Rec’d 1 712 205

8 Mar 16 324 Sales 957 870 87 27 Mar 16 325 B Watkins – Acc Receivable 1 441

326 S Blayney – Acc Receivable 3 377 327 Interest Received 5 189 371 7 858 2 240 224 205 4 818 371 100 400 201 410 101 411

Cash Payments Journal of L Scott CP 1 Date Rmt

Pmt Payee and / or Particulars Ref Bank Tele-

phone GST

Receiv Elect-ricity

Purch-ases

Salaries Acc’nt Payab

8 Mar 16 904 Telstra – Telephone 396 360 36

9 Mar 16 905 Prosperous Electricity – Elect 858 78 780

16 Mar 16 906 Cash – Purchases 550 50 500

19 Mar 16 907 J Major – Purchases 363 33 330

20 Mar 16 908 Cash – Salaries 2 800 2 800

29 Mar 16 909 M Robertson – Acc Payable 616 616 5 583 360 197 780 830 2 800 616

100 541 102 542 500 543 200 Extract General Ledger of L Scott Bank 100

31 Mar 16 Receipts CR1 7 858 31 Mar 16 Payments CP1 5 583

Balance c/d 2 275

7 858 7 858

1 Apr 16 Balance b/d 2 275

Accounts Receivable Control 101 31 Mar 16 Sales SJ1 7 161 31 Mar 16 Bank [receipt] CR1 4 818

Balance c/d 2 343

7 161 7 161


GST Receivable 102 31 Mar 16 Accounts Payable Ctrl PJ1 65


262

Machinery 150 31 Mar 16 Accnt Receivable Ctrl SJ1 630

Accounts Payable Control 200 31 Mar 16 Bank [payment] CP1 616 31 Mar 16 Purchases PJ1 715

Balance c/d 99

715 715

1 Apr 16 Balance b/d 99




Extract General Ledger of L Scott continued GST Payable 201

31 Mar 16 Acc’nt Receivable Ctrl SJ1 651


875

Sales 400 31 Mar 16 Acc’nt Receivable Ctrl SJ1 5 880


8 120

Dividend Received 410 31 Mar 16 Bank [receipt] CR1 205

Interest Received 411 31 Mar 16 Bank [receipt] CR1 371

Purchases 500 31 Mar 16 Accounts Payable Ctrl PJ1 560


Stationery 540 31 Mar 16 Accounts Payable Ctrl PJ1 90

Telephone 541 31 Mar 16 Bank [payment] CP1 360

Electricity 542 31 Mar 16 Bank [payment] CP1 780

Salaries 543 31 Mar 16 Bank [payment] CP1 2 800

Trial Balance of L Scott as at 31 March 2016

Bank 100 2 275 Accounts Receivable Control 101 2 343 GST Receivable 102 262 Machinery 150 630 Accounts Payable Control 200 99 GST Payable 201 875 Sales 400 8 120 Dividend Received 410 205 Interest Received 411 371 Purchases 500 1 390 Stationery 540 90 Telephone 541 360 Electricity 542 780 Salaries 543 2 800 10 300 10 300



Question 4.27 perpetual inventory applies PJ1, PJ3, CR4, CR, SJ7, (PJ), CR8, CP, CP9, SJ, SJ, SJ15, CP16, SJ17, (SJ), CP19, CP20, CR27, CR, CR, CP29.

Sales Journal of L Scott SJ 1 Date Inv



Receiv Sales GST

Payab Machi-nery

CoGS Inven-tory

7 Mar 16 335 S Blayney – Sales 1 584 1 440 144 936 936

9 Mar 16 336 C Hunter – Sales 1 650 1 500 150 975 975

337 S Blayney – Sales 1 793 1 630 163 1 060 1 060

15 Mar 16 338 B Watkins – Sales 1 551 1 410 141 917 917

17 Mar 16 339 J Muller – Machinery 693 63 630

024 B Watkins – Sale Return (110) (100) (10) (65) (65)

7 161 5 880 651 630 3 823 3 823

101 400 201 150 500 102

Purchases Journal of L Scott PJ 1

Date Inv Adj


Ref Account Payable

Inven-tory

GST Receiv

Statio-nery

1 Mar 16 175 M Robertson – Inventory 715 650 65 3 Mar 16 941 Stationery Shop – Stationery 99 9 90 7 Mar 16 069 M Robertson – Invent Return (99) (90) (9)

715 560 65 90

200 500 103 540

Cash Receipts Journal of L Scott CR 1

Date Rmt Rec


Divid’d Rec’d

Gen-eral

CoGS Inven-tory

4 Mar 16 322 Sales 1 370 137 891 891

323 CSR – Dividend Rec’d 1 712 205

8 Mar 16 324 Sales 957 870 87 566 566

27 Mar 16 325 B Watkins – Acc Receivable 101 1 441

326 S Blayney – Acc Receivable 101 3 377

327 Interest Received 411 5 189 371

7 858 2 240 224 205 5 189 1 457 1 457

100 400 201 410 500 102

Cash Payments Journal of L Scott CP 1

Date Rmt Pmt


GST Receiv

Electri-city

Inven-tory

Salaries

Acc’nt Payab

8 Mar 16 904 Telstra – Telephone 396 360 36

9 Mar 16 905 Prosperous – Electricity 858 78 780

16 Mar 16 906 Cash – Inventory 550 50 500

19 Mar 16 907 J Major – Inventory 363 33 330

20 Mar 16 908 Cash – Salaries 2 800 2 800

29 Mar 16 909 M Robertson – Acc Payab 616 616

5 583 360 197 780 830 2 800 616

100 541 103 542 500 543 200




Extract General Ledger of L Scott Bank 100

31 Mar 16 Receipts CR1 7 858 31 Mar 16 Payments CP1 5 583

Balance c/d 2 275

7 858 7 858


Accounts Receivable Control 101 31 Mar 16 Sales SJ1 7 161 31 Mar 16 Bank [receipt] CR1 4 818

Balance c/d 2 343

7 161 7 161


Inventory 102 31 Mar 16 Accounts Payable Ctrl PJ1 560 31 Mar 16 Cost of Goods Sold SJ1 3 823


Balance c/d 3 890

5 280 5 280

Normally this account would have a debit balance 1 Apr 16 Balance b/d 3 890

GST Receivable 103 31 Mar 16 Accounts Payable Ctrl PJ1 65


262

Machinery 150 31 Mar 16 Accnt Receivable Ctrl SJ1 630

Accounts Payable Control 200 31 Mar 16 Bank [payment] CP1 616 31 Mar 16 Purchases PJ1 715

Balance c/d 99

715 715


GST Payable 201 31 Mar 16 Accnt Receivable Ctrl SJ1 651


875

Sales 400 31 Mar 16 Accnt Receivable Ctrl SJ1 5 880


8 120

Dividend Received 410 31 Mar 16 Bank [receipt] CR1 205

Interest Received 411 31 Mar 16 Bank [receipt] CR1 371

continued




Extract General Ledger of L Scott continued Cost of Goods Sold 500

31 Mar 16 Inventory SJ1 3 823 Inventory CR1 1 457 5 280

Stationery 540 31 Mar 16 Accounts Payable Ctrl PJ1 90

Telephone 541 31 Mar 16 Bank [payment] CP1 360

Electricity 542 31 Mar 16 Bank [payment] CP1 780

Salaries 543 31 Mar 16 Bank [payment] CP1 2 800

Trial Balance of L Scott as at 31 March 2016

Bank 100 2 275 Accounts Receivable Control 101 2 343 Inventory 102 3 890 GST Receivable 103 262 Machinery 150 630 Accounts Payable Control 200 99 GST Payable 201 875 Sales 400 8 120 Dividend Received 410 205 Interest Received 411 371 Cost of Goods Sold 500 5 280 Stationery 540 90 Telephone 541 360 Electricity 542 780 Salaries 543 2 800 14 190 14 190

Question 4.28 perpetual inventory applies 1 SJ 2 PJ 4 CP 4 SJ 6 CR 7 CR 8 PJ

10 CP 10 PJ 12 (SJ) 13 CR 13 (PJ) 18 CP 18 SJ

19 CP 20 PJ 20 CP 23 SJ 24 CP 28 CR 28 CR

29 CP 29 CR 31 CP 31 CP



Question 4.28 continued (perpetual inventory applies) Sales Journal of W Tucker SJ 1

Date Inv Adj


Ref Account Receiv

Sales GST Payab

CoGS Inven-tory

1 Jul 16 456 R Pennings – Sales 1 991 1 810 181 810 810

4 Jul 16 457 R Stephen – Sales 1 837 1 670 167 750 750

12 Jul 16 890 R Pennings – Sale Return (22) (20) (2)

18 Jul 16 458 R Pennings – Sales 726 660 66 300 300

23 Jul 16 459 R Stephen – Sales 1 793 1 630 163 730 730 6 325 5 750 575 2 590 2 590 101 400 201 500 102

Purchases Journal of W Tucker PJ 1

Date Inv Adj


Ref Account Payable

Inven-tory

GST Receiv

Statio-nery

2 Jul 16 147 J David – Inventory 561 510 51 8 Jul 16 753 B Ruddy – Inventory 132 120 12 10 Jul 16 159 S Norah – Stationery 88 8 80 13 Jul 16 852 J David – Inventory Return (99) (90) (9) 20 Jul 16 258 J David – Inventory 286 260 26

968 800 88 80 200 102 103 540

Cash Receipts Journal of W Tucker CR 1

Date Rmt Rec


Rent Rec’d

Acc’nt Receiv

CoGS Inven-tory

6 Jul 16 735 Sales 2 057 1 870 187 830 830

7 Jul 16 736 Rent Received 770 70 700

13 Jul 16 737 Sales 1 859 1 690 169 800 800

28 Jul 16 738 R Pennings – Acc Receiv 2 695

739 Sales 4 664 1 790 179 800 800

29 Jul 16 740 R Stephen – Acc Receiv 3 630 3 630 12 980 5 350 605 700 6 325 2 430 2 430 100 400 201 410 101 500 102

Cash Payments Journal of W Tucker CP 1

Date Rmt Pmt

Payee and / or Particulars Ref Bank Vehicle Exp

GST Receiv

Wages Inven-tory

Mach-inery

Acc’nt Payab

4 Jul 16 258 NAP Veh Rep – Vehicl Exp 319 290 29

10 Jul 16 259 Cash – Wages 1 432 1 432

18 Jul 16 260 S Jane – Inventory 187 17 170

19 Jul 16 261 Cash – Machinery 1 947 177 1 770

20 Jul 16 262 Ampol – Vehicle Expense 418 380 38

24 Jul 16 263 Cash – Inventory 253 23 230

29 Jul 16 264 B Ruddy – Acc Payable 132 132

31 Jul 16 265 J David – Acc Payable 748 748

266 Cash – Wages 1 520 1 520 6 956 670 284 2 952 400 1 770 880 100 541 103 542 102 150 200




Extract General Ledger of W Tucker Bank 100


Balance c/d 6 024

12 980 12 980



Inventory 102 31 Jul 16 Accounts Payable Ctrl PJ1 800 31 Jul 16 Cost of Goods Sold SJ1 2 590


Balance c/d 3 820

5 020 5 020




372

Machinery 150 31 Jul 16 Bank [payment] CP1 1 770

Accounts Payable Control 200 31 Jul 16 Bank [payment] CP1 880 31 Jul 16 Purchases PJ1 968

Balance c/d 88 968 968


GST Payable 201 31 Jul 16 Acc’nt Receivable Ctrl SJ1 575 Bank [receipt] CR1 605 1 180

Sales 400 31 Jul 16 Acc’nt Receivable Ctrl SJ1 5 750 Bank [receipt] CR1 5 350 11 100

Rent Received 410 31 Jul 16 Bank [receipt] CR1 700


Inventory CR1 2 430 2960


continued




Extract General Ledger of W Tucker continued Vehicle Expense 541

31 Jul 16 Bank [payment] CP1 670 Wages 542


Trial Balance of W Tucker as at 31 July 2016

Bank 100 6 024 Inventory 102 3 820 GST Receivable 103 372 Machinery 150 1 770 Accounts Payable Control 200 88 GST Payable 201 1 180 Sales 400 11 100 Rent Received 410 700 Cost of Goods Sold 500 5 020 Stationery 540 80 Vehicle Expense 541 670 Wages 542 2 952 16 888 16 888

Question 4.28 periodic inventory applies 1 SJ 2 PJ 4 CP 4 SJ 6 CR 7 CR 8 PJ

10 CP 10 PJ 12 (SJ) 13 CR 13 (PJ) 18 CP 18 SJ

19 CP 20 PJ 20 CP 23 SJ 24 CP 28 CR 28 CR

29 CP 29 CR 31 CP 31 CP

Sales Journal of W Tucker SJ 1

Date Inv Adj


Ref Account Receiv

Sales GST Payab

1 Jul 16 456 R Pennings – Sales 1 991 1 810 181 4 Jul 16 457 R Stephen – Sales 1 837 1 670 167 12 Jul 16 890 R Pennings – Sale Return (22) (20) (2) 18 Jul 16 458 R Pennings – Sales 726 660 66 23 Jul 16 459 R Stephen – Sales 1 793 1 630 163

6 325 5 750 575 101 400 201




Purchases Journal of W Tucker PJ 1 Date Inv



Payable Purch-ases

GST Receiv

Statio-nery

2 Jul 16 147 J David – Purchase 561 510 51 8 Jul 16 753 B Ruddy – Purchase 132 120 12 10 Jul 16 159 S Norah – Stationery 88 8 80 13 Jul 16 852 J David – Purchase Return (99) (90) (9) 20 Jul 16 258 J David – Purchase 286 260 26

968 800 88 80 200 500 102 540

Cash Receipts Journal of W Tucker CR 1

Date Rmt Rec


Rent Rec’d

Acc’nt Receiv

6 Jul 16 735 Sales 2 057 1 870 187 7 Jul 16 736 Rent Received 770 70 700 13 Jul 16 737 Sales 1 859 1 690 169 28 Jul 16 738 R Pennings – Acc Receivable 2 695

739 Sales 4 664 1 790 179 29 Jul 16 740 R Stephen – Acc Receivable 3 630 3 630

12 980 5 350 605 700 6 325 100 400 201 410 101

Cash Payments Journal of W Tucker CP 1

Date Rmt Pmt

Payee and / or Particulars Ref Bank Vehicle Exp

GST Receiv

Wages Purch-ases

Mach-inery

Acc’nt Payabl

4 Jul 16 258 NAP Veh Rep – Vehicle Exp 319 290 29

10 Jul 16 259 Cash – Wages 1 432 1 432

18 Jul 16 260 S Jane – Purchases 187 17 170

19 Jul 16 261 Cash – Machinery 1 947 177 1 770

20 Jul 16 262 Ampol – Vehicle Expense 418 380 38

24 Jul 16 263 Cash – Purchases 253 23 230

29 Jul 16 264 B Ruddy – Acc Payable 132 132

31 Jul 16 265 J David – Acc Payable 748 748

266 Cash – Wages 1 520 1 520 6 956 670 284 2 952 400 1 770 880 100 541 102 542 500 150 200




Extract General Ledger of W Tucker Bank 100


Balance c/d 6 024

12 980 12 980





372

Machinery 150 31 Jul 16 Bank [payment] CP1 1 770

Accounts Payable Control 200 31 Jul 16 Bank [payment] CP1 880 31 Jul 16 Purchases PJ1 968

Balance c/d 88 968 968


GST Payable 201 31 Jul 16 Acc’nt Receivable Ctrl SJ1 575 Bank [receipt] CR1 605 1 180



Purchases 500 31 Jul 16 Accounts Payable Ctrl PJ1 800



Vehicle Expense 541 31 Jul 16 Bank [payment] CP1 670




Question 4.28 continued (periodic inventory applies) Trial Balance of W Tucker

as at 31 July 2016

Bank 100 6 024 GST Receivable 102 372 Machinery 150 1 770 Accounts Payable Control 200 88 GST Payable 201 1 180 Sales 400 11 100 Rent Received 410 700 Purchases 500 1 200 Stationery 540 80 Vehicle Expense 541 670 Wages 542 2 952 13 068 13 068

Question 4.29 Extract Cash Receipts Journal of L Barchi CR 1

Date Rmt Rec

Drawer and / or Particulars Ref Bank Acc’nt Receiv

Disc’nt Allow’d

GST Payab

25 Jul 16 852 J Altimo – Acc Receivable 528 550 (20) (2)

Question 4.30 Extract Cash Receipts Journal of A Barrozo CR 1

Date Rmt Rec


Disc’nt Allow’d

GST Payab

17 Aug 16 335 D Anderson – Acc Receiv 1 045 1 100 (50) (5)

Question 4.31 Extract Cash Payments Journal of J Altimo CP 1

Date Rmt Pmt

Payee and / or Particulars Ref Bank Acc’nt Payab

Disc’nt Rec’d

GST Receiv

23 Jul 16 739 L Barchi – Acc Payable 528 550 (20) (2)

Question 4.32 Extract Cash Payments Journal of D Anderson CP 1

Date Rmt Pmt


Disc’nt Rec’d

GST Receiv

15 Aug 16 682 A Barrozo – Acc Payable 1 045 1 100 (50) (5)

Question 4.33 General Journal of G Rettkowicz GJ 1

Date Particulars Ref Debit Credit 1 Aug 16 Bank 100 9 000

Inventory 101 2 000 Motor Vehicle 150 8 000 Computer 151 2 800 Capital 300 21 800





Cash Receipts Journal of G Rettkowicz CR 1 Date Rmt


Payab

2 Aug 16 586 Sales 814 740 74 4 Aug 16 740 Sales 825 750 75

21 Aug 16 958 V Kapruziak – Sales 990 900 90 23 Aug 16 898 R Sahni – Sales 429 390 39 28 Aug 16 612 Sales 1 925 1 750 175 30 Aug 16 261 G Norman- Sales [ex 17.8.16] 880 800 80

880 800 533 100 400 200

Note that the credit sale of inventory on 23 August to G Bennett is not a sale as the cash has not been received.

Cash Payments Journal of G Rettkowicz CP 1 Date Rmt


ases GST

Receiv Mach-inery

Vehicl Exp

17 Aug 16 988 Purchases 110 100 10 949 Machinery 3 300 300 3 000

21 Aug 16 465 Vehicle Expense 660 60 600 28 Aug 16 376 Vehicle Expense 242 22 220

902 100 392 3 000 820 100 500 102 152 540

Note that the credit purchase $550 on 5 August from N Green does not appear in the accounts as the amount was not paid by the end of August. The purchase on 27 August from S Rentzsch $330 was on a 10-day account so would not be paid until early September.

Extract General Ledger of G Rettkowicz Bank 100

1 Aug 16 Capital GJ1 9 000 31 Aug 16 Payments CP1 4 312 31 Aug 16 Receipts CR1 5 863 Balance c/d 10 551

14 863 14 863 1 Sep 16 Balance b/d 10 551 Inventory 101 1 Aug 16 Capital GJ1 2 000 GST Receivable 102

31 Aug 16 Bank [payment] CP1 392 Motor Vehicle 150

1 Aug 16 Capital GJ1 8 000 Computer 151

1 Aug 16 Capital GJ1 2 800 Machinery 152

1 Aug 16 Capital GJ1 3 000 continued




Extract General Ledger of G Rettkowicz continued GST Payable 200


Capital 300 1 Jul 16 Assets GJ1 21 800

Sales 400 31 Aug 16 Bank [receipt] CR1 5 330

Purchases 500 31 Aug 16 Bank [payment] CP1 100

Vehicle Expense 540 31 Aug 16 Bank [payment] CP1 820

Trial Balance of G Rettkowicz as at 31 August 2016

Bank 100 10 551 Inventory 101 2 000 GST Receivable 102 392 Motor Vehicle 150 8 000 Computer 151 2 800 Machinery 152 3 000 GST Payable 200 533 Capital 300 21 800 Sales 400 5 330 Purchases 500 100 Vehicle Expense 540 820 27 663 27 663

Question 4.34

Cash Receipts Journal of P Forrester CR 1 Date Rmt


Payab Inter’st Rec’d

1 Sep 16 316 Sales 858 780 78 496 Interest Received 165 165

10 Sep 16 102 H Suzanne – Sales 1 969 1 790 179 20 Sep 16 786 S Rebecca – Sales 297 270 27 22 Sep 16 283 Sales 1 782 1 620 162 27 Sep 16 723 H Margaret – Sales [ex Aug] 1 243 1 130 113 29 Sep 16 483 P James – Sales 1 540 1 400 140

7 854 6 990 699 165 100 400 200 410

Note that the sale of inventory on credit 20 September to D Pullen is not a sale as the cash was not received by the end of the month.




Cash Payments Journal of P Forrester CP 1 Date Rmt

Pmt Payee and / or Particulars Ref Bank Salar-

ies Equip-ment

GST Receiv

Comm Exp

Purch-ases

Station-ery

7 Sep 16 914 Salaries 951 951 7 Sep 16 643 Equipment 2 948 2 680 268

18 Sep 16 557 G Marie – Commission Exp 352 32 320 19 Sep 16 697 Purchases 330 30 300 21 Sep 16 523 Salaries 1 003 1 003 27 Sep 16 342 Stationery 88 8 80

5 672 1 954 2 680 338 320 300 80 100 540 150 101 520 500 541

Note that the inventory obtained on credit $990 on 15 September from B Georges does not appear in the accounts as the amount was not paid by the end of September.

Extract General Ledger of P Forrester Bank 100 30 Sep 16 Receipts CR1 7 854 30 Sep 16 Payments CP1 5 672

Balance c/d 2 182 7 854 7 854

1 Oct 16 Balance b/d 2 182 GST Receivable 101

1 Sep 16 Bank [payment] CP1 338 Equipment 150

30 Sep 16 Bank [payment] CP1 2 680 GST Payable 200

30 Sep 16 Bank [receipt] CR1 699 Sales 400

30 Sep 16 Bank [receipt] CR1 6 990 Interest Received 410

30 Sep 16 Bank [receipt] CR1 165 Purchases 500

30 Sep 16 Bank [payment] CP1 300 Commission Expense 520

30 Sep 16 Bank [payment] CP1 320 Salaries 540

30 Sep 16 Bank [payment] CP1 1 954 Stationery 541

30 Sep 16 Bank [payment] CP1 80




Extract Trial Balance of P Forrester as at 30 September 2016

Bank 100 2 182 GST Receivable 101 338 Equipment 150 2 680 GST Payable 200 699 Sales 400 6 990 Interest Received 410 165 Purchases 500 300 Commission Expense 520 320 Salaries 540 1 954 Stationery 541 80 7 854 7 854

Question 4.35

Account Number

Account Name Amount $

Debit $

Credit $

540 Electricity 250 250

541 Postage 50 50

150 Land and Buildings 50 000 50 000

100 GST Receivable 220 220

410 Rent Received 850 850

101 Account Receivable Ctrl (G Escobar) 715 715

411 Commission Received 35 35

412 Discount Received 40 40

542 Wages 4 670 4 670

151 Machinery 10 000 10 000

543 Telephone 470 470

102 Inventory 2 500 2 500

544 Stationery 535 535

103 Bank 2 100 2 100

400 Sales 12 000 12 000

200 GST Payable 1 180 1 180

152 Furniture & Fittings 7 500 7 500

104 Petty Cash 100 100

560 Discount Allowed 25 25

201 Account Payable Ctrl (G Grozdanovska) 2 090 2 090

500 Purchases 1 100 1 100

300 Capital ?? 040 64 040

80 235 80 235



Question 4.36 perpetual inventory applies 2 CP 4 CR 4 CR 10 PJ 15 PJ 18 SJ 19 SJ

19 CR 23 (PJ) 24 SJ 24 (SJ) 25 PJ 27 CP 28 CR

28 CR

Sales Journal of J Kelaher SJ 1 Date Inv



Receiv Sales GST

Payab CoGS Inven-

tory

18 Feb 16 629 J Leahy – Sales 3 861 3 510 351 1 607 1 607

19 Feb 16 630 K Diprose – Sales 1 947 1 770 177 752 752

24 Feb 16 631 K Kloos – Sales 1 617 1 470 147 624 624

124 J Leahy – Sale Return (99) (90) (9) 7 326 6 660 666 2 983 2 983 101 400 200 500 102

Purchases Journal of J Kelaher PJ 1 Date Inv



Payable Inven-

tory GST

Receiv Equip-ment

10 Feb 16 853 V Handley – Inventory 902 820 82 15 Feb 16 619 L Smith – Inventory 682 620 62 23 Feb 16 093 V Handley – Invent Return (88) (80) (8) 25 Feb 16 154 Williams & John – Equipm’t 3 300 300 3 000

4 796 1 360 436 3 000 201 102 103 150

Cash Receipts Journal of J Kelaher CR 1 Date Rmt


Payab Acc’nt Receiv

Discn’t Allow’d

CoGS Inven-tory

4 Feb 16 140 Sales 1 570 157 746 746

141 Sales 3 245 1 380 138 656 656

19 Feb 16 142 Sales 1 716 1 560 156 663 663

28 Feb 16 143 K Diprose – Acc Receivable (1) 1 947 (10)

144 J Leahy – Acc Receivable 5 698 3 762 10 659 4 510 450 5 709 (10) 2 065 2 065 100 400 200 101 560 500 102

Cash Payments Journal of J Kelaher CP 1 Date Rmt


tory GST

Receiv Acc’nt Payab

Discn’t Rec’d

2 Feb 16 819 Cash – Inventory 781 710 71 27 Feb 16 820 V Handley – Acc Payable 770 (4) 814 (40)

1 551 710 67 814 (40) 100 102 103 200 410




General Ledger of J Kelaher Bank 100

1 Feb 16 Balance b/d 4 000 28 Feb 16 Payments CP1 1 551

28 Feb 16 Receipts CR1 10 659 Balance c/d 13 108

14 659 14 659

1 Mar 16 Balance b/d 13 108

Accounts Receivable Control 101 28 Feb 16 Sales SJ1 7 326 28 Feb 16 Bank [receipt] CR1 5 709

Balance c/d 1 617

7 326 7 326


Inventory 102 1 Feb 16 Balance b/d 12 000 28 Feb 16 Cost of Goods Sold SJ1 2 983

28 Feb 16 Accounts Payable Ctrl PJ1 1 360 Cost of Goods Sold

CR1 2 065

Bank [payment] CP1 710 Balance c/d 9 022

14 070 14 070

1 Mar 16 Balance b/d 9 022 GST Receivable 103

1 Feb 16 Balance b/d 100 28 Feb 16 Accounts Payable Ctrl PJ1 436


Plant and Equipment 150 1 Feb 16 Balance b/d 15 000 28 Feb 16 Accounts Payable Ctrl PJ1 3 000


28 Feb 16 Bank [payment] CP1 814 28 Feb 16 Purchases PJ1 4 796

Balance c/d 3 982 4 796 4 796


GST Payable 201 1 Feb 16 Balance b/d 200 28 Feb 16 Acc’nt Receivable Ctrl SJ1 666 Bank [receipt] CR1 450 1 316

Loan from the Bank 250 1 Feb 16 Balance b/d 7 000

Capital 300 1 Feb 16 Balance b/d 23 900

continued




General Ledger of J Kelaher continued Sales 400

28 Feb 16 Acc’nt Receivable Ctrl SJ1 6 660 Bank [receipt] CR1 4 510 11 170

Discount Received 410 28 Feb 16 Bank [payment] CP1 40

Cost of Goods Sold 500 28 Feb 16 Inventory SJ1 2 983


Discount Allowed 560 28 Feb 16 Bank [receipt] CR1 10

Trial Balance of J Kelaher as at 28 February 2016

Bank 100 13 108 Accounts Receivable Control 101 1 617 Inventory 102 9 022 GST Receivable 103 603 Plant and Equipment 150 18 000 Accounts Payable Control 200 3 982 GST Payable 201 1 316 Loan from the Bank 250 7 000 Capital 300 23 900 Sales 400 11 170 Discount Received 410 40 Cost of Goods Sold 500 5 048 Discount Allowed 560 10 47 408 47 408

Question 4.36 periodic inventory applies 2 CP 4 CR 4 CR 10 PJ 15 PJ 18 SJ 19 SJ

19 CR 23 (PJ) 24 SJ 24 (SJ) 25 PJ 27 CP 28 CR

28 CR

Sales Journal of J Kelaher SJ 1 Date Inv



Receiv Sales GST

Payab

18 Feb 16 629 J Leahy – Sales 3 861 3 510 351 19 Feb 16 630 K Diprose – Sales 1 947 1 770 177 24 Feb 16 631 K Kloos – Sales 1 617 1 470 147

124 J Leahy – Sale Return (99) (90) (9) 7 326 6 660 666

101 400 200




Purchases Journal of J Kelaher PJ 1 Date Inv



Payable Purch-ases

GST Receiv

Equip-ment

10 Feb 16 853 V Handley – Purchase 902 820 82 15 Feb 16 619 L Smith – Purchase 682 620 62 23 Feb 16 093 V Handley – Purch Return (88) (80) (8) 25 Feb 16 154 Williams & John – Equip’t 3 300 300 3 000

4 796 1 360 436 3 000 201 500 103 150

Cash Receipts Journal of J Kelaher CR 1 Date Rmt



Discn’t Allow’d

4 Feb 16 140 Sales 1 570 157 141 Sales 3 245 1 380 138

19 Feb 16 142 Sales 1 716 1 560 156 28 Feb 16 143 K Diprose – Acc Receiv (1) 1 947 (10)

144 J Leahy – Acc Receivable 5 698 3 762 10 659 4 510 450 5 709 (10)

100 400 200 101 560

Cash Payments Journal of J Kelaher CP 1 Date Rmt


ases GST


Discn’t Rec’d

2 Feb 16 819 Cash – Purchases 781 710 71 27 Feb 16 820 V Handley – Acc Payable 770 (4) 814 (40)

1 551 710 67 814 (40) 100 500 103 200 410

General Ledger of J Kelaher

Bank 100 1 Feb 16 Balance b/d 4 000 28 Feb 16 Payments CP1 1 551


14 659 14 659


Accounts Receivable Control 101 28 Feb 16 Sales SJ1 7 326 28 Feb 16 Bank [receipt] CR1 5 709

Balance c/d 1 617

7 326 7 326

1 Mar 16 Balance b/d 1 617 Inventory 102

1 Feb 16 Balance b/d 12 000 continued




General Ledger of J Kelaher continued GST Receivable 103

1 Feb 16 Balance b/d 100 28 Feb 16 Accounts Payable Ctrl PJ1 436


Plant and Equipment 150 1 Feb 16 Balance b/d 15 000

28 Feb 16 Accounts Payable Ctrl PJ1 3 000 18 000

Accounts Payable Control 200 28 Feb 16 Bank [payment] CP1 814 28 Feb 16 Purchases PJ1 4 796

Balance c/d 3 982 4 796 4 796


GST Payable 201 1 Feb 16 Balance b/d 200 28 Feb 16 Acc’nt Receivable Ctrl SJ1 666 Bank [receipt] CR1 450 1 316

Loan from the Bank 250 1 Feb 16 Balance b/d 7 000


Sales 400 28 Feb 16 Acc’nt Receivable Ctrl SJ1 6 660 Bank [receipt] CR1 4 510 11 170


Purchases 500 28 Feb 16 Accounts Payable Ctrl PJ1 1 360






Trial Balance of J Kelaher as at 28 February 2016

Bank 100 13 108 Accounts Receivable Control 101 1 617 Inventory 102 12 000 GST Receivable 103 603 Plant and Equipment 150 18 000 Accounts Payable Control 200 3 982 GST Payable 201 1 316 Loan from the Bank 250 7 000 Capital 300 23 900 Sales 400 11 170 Discount Received 410 40 Purchases 500 2 070 Discount Allowed 560 10 47 408 47 408

Question 4.37 Any two of the following: • All journals must have accurate supporting source documents and reports which have been verified

correct or working papers to justify the preparation of every journal. • A journal must be prepared by a responsible employee who has checked and used accurate data to

prepare the journal for the correct accounting month or period. The journal should be signed by the employee who prepares it and the data used is cross-referenced to that particular journal number.

• The journal must use correct accounts and correct amounts; almost right or mostly right means that the journal is wrong! An incorrect journal can have a significant effect on the accounting reports that rely on the accuracy of the data processed into the accounts.

• The signed journal and referenced data are given to a senior accounting officer, who checks and authorises the journal.

• The journal for the month must be prepared in time for it to be processed into the accounts and then used in the accounting summaries and reports prepared for the owner or manager of the business. The journal and accounting reports must be on time.

Question 4.38 To ensure that (any two of the following): • transaction documents are accurately prepared, properly checked and authorised • data entered into journals and ledgers meets clear organisational input standards, with all

transactions recorded and amounts allocated to correct accounts • documents, accounting records and reports are filed appropriately, and • all accounting information is processed in a timely manner.



Question 4.39

Account Number

Account Name Amount $

Debit $

Credit $

150 Government Bonds 7 400 7 400 100 Account Receivable Ctrl (L Lechowski) 1 815 1 815 540 Electricity 1 210 1 210 101 Bank 3 637 3 637 200 GST Payable 6 890 6 890 410 Interest on Government Bonds 398 398 151 Premises 25 000 25 000 500 Freight Inwards 940 940 501 Customs Duty 760 760 152 Plant 11 000 11 000 520 Advertising 1 200 1 200 541 Postage 650 650 102 Inventory 2 500 2 500 542 Photocopying 710 710 560 Bad Debts 315 315 543 Wages and Salaries 15 300 15 300 521 Freight Outwards 250 250 103 Petty Cash 150 150 153 Office Furniture 7 500 7 500 411 Commission Received 475 475 300 Capital ? ??? 99 630 104 GST Receivable 3 510 3 510 544 Stationery 720 720 154 Motor Vehicle 22 000 22 000 400 Sales 75 315 75 315 155 Land 44 000 44 000 561 Discount Allowed 55 55 201 Account Payable Control (I Oreskovic) 220 220 502 Purchases 32 306 32 306

182 928 182 928

Question 4.40

General Journal of Marty’s Mower and Small Engine Repairs GJ 1 1 Mar 16 Bank 100 6 000

Equipment 150 3 000 Capital 300 9 000




Question 4.40 continued Cash Receipts Journal of Marty’s Mower and Small Engine Repairs CR 1

Date Rmt Rec


3 Mar 16 Sales 132 120 12 10 Mar 16 Sales 220 200 20 19 Mar 16 Sales 616 560 56 23 Mar 16 S Joyce – Sales 2 750 2 500 250 25 Mar 16 Sales 440 400 40

4 158 3 780 378 100 400 200

Cash Payments Journal of Marty’s Mower and Small Engine Repairs CP 1 Date Rmt


ases GST

Receiv

31 Mar 16 John’s Distrib – Purchases 1 034 940 94 1 034 940 94 100 500 101

General Ledger of Marty’s Mower and Small Engine Repairs Bank 100 1 Mar 16 Capital GJ1 6 000 31 Mar 16 Payments CP1 1 034 31 Mar 16 Receipts CR1 4 158 Balance c/d 9 124

10 158 10 158 1 Apr 16 Balance b/d 9 124 GST Receivable 101

31 Mar 16 Bank [payment] CP1 94 Equipment 150

1 Mar 16 Capital GJ1 3 000 GST Payable 200

31 Mar 16 Bank [receipt] CR1 378 Capital 300

1 Mar 16 Assets GJ1 9 000 Sales 400

31 Mar 16 Bank [receipt] CR1 3 780 Purchases 500

31 Mar 16 Bank [payment] CP1 940

Marty’s Mower and Small Engine Repairs Trial Balance

as at 31 March 2016 Bank 100 9 124 GST Receivable 101 94 Equipment 150 3 000 GST Payable 200 378 Capital 300 9 000 Sales 400 3 780 Purchases 500 940 13 158 13 158



Question 4.41

General Journal of Oonchies Contract Seeding & Harvesting GJ 1 1 Jul 16 Bank 100 60 000

Equipment – Seeding 150 80 000 Equipment – Harvesting 151 50 000 Office Equipment 152 5 000 Loan – Bank 250 30 000 Capital 300 165 000

Assets and liability on commencement

Sales Journal of Oonchies Contract Seeding & Harvesting SJ 1 Date Inv

Adj Accounts Receivable &/or


Receiv Fee

Seeding GST

Payab

10 Jul 16 213 Ray Peak – Seeding Fee 22 000 20 000 2 000 22 000 20 000 2 000 102 400 201

Purchase Journal of Oonchies Contract Seeding & Harvesting PJ 1

Date Inv Adj

Accounts Payable &/or Particulars Ref Acc’nt Payab

Station-ery

GST Receiv

Fuel Seedin

R&M – Seed

R&M – Harvst

Fuel Harvst

3 Jul 16 332 Theodore Newsag – Station 495 450 45 15 Jul 16 281 Emerald Fuel – Seeding 4 455 405 4 050 16 Jul 16 687 Capella Mach – R&M Seed 1 837 167 1 670 20 Jul 16 905 Capella Mach – R&M Harvs 5 137 467 4 670

788 Emerald Fuel – Seeding 2 937 267 2 670 14 861 450 1 351 4 050 1 670 4 670 2 670 200 560 103 500 502 503 501

Cash Receipts Journal of Oonchies Contract Seeding & Harvesting CR 1

Date Rmt Rec

Drawer and / or Particulars Ref Bank Accnt Receiv

15 Jul 16 398 Ray Peak – Seeding Fee 22 000 22 000

22 000 22 000 100 102

Cash Payments Journal of Oonchies Contract Seeding & Harvesting CP 1 Date Rmt

Pmt Payee and / or Particulars Ref Bank Insur

-ance GST

Receiv Office Rent

W’hop Rent

Accm Seed

Accnt Payab

5 Jul 16 371 Contractors Insurance 3 080 2 800 280 10 Jul 16 448 Rent for the month 330 30 100 200 15 Jul 16 842 Accommodation – Seeding 550 50 500 31 Jul 16 429 Emerald Fuel – A/c Payab 7 392 7 392 31 Jul 16 721 Capella Mach – A/c Payab 6 974 6 974

18 326 2 800 360 100 200 500 14 366 100 562 103 561 551 507 200




General Ledger of Oonchies Contract Seeding & Harvesting Bank 100

1 Jul 16 Capital GJ1 60 000 31 Jul 16 Payments CP1 18 326 31 Jul 16 Receipts CR1 22 000 Balance c/d 63 674

82 000 82 000 1 Aug 16 Balance b/d 63 674

Accounts Receivable Control 102 31 Jul 16 Sales Journal SJ1 22 000 31 Jul 16 Bank [receipts] CR1 22 000

GST Receivable 103 31 Jul 16 Accounts Payable Ctrl PJ1 1 351

Bank [payments] CP1 360 1 711

Equipment – Seeding 150 1 Jul 16 Capital GJ1 80 000

Equipment – Harvesting 151 1 Jul 16 Capital GJ1 50 000

Office Equipment 152 1 Jul 16 Capital GJ1 5 000

Accounts Payable Control 200 31 Jul 16 Bank [payments] CP1 14 366 31 Jul 16 Purchases Journal PJ1 14 861

Balance c/d 495 14 861 14 861 31 Jul 16 Balance b/d 495

GST Payable 201 31 Jul 16 Accounts Receivable Ctrl SJ1 2 000

Loan – Bank 250 1 Jul 16 Capital GJ1 30 000

Capital 300 1 Jul 16 Loan – Bank GJ1 30 000 1 Jul 16 Bank GJ1 60 000 31 Jul 16 Balance c/d 165 000 Equipment – Seeding GJ1 80 000

Equipment – Harvesting GJ1 50 000 Office Equipment GJ1 5 000 195 000 195 000 1 Aug 16 Balance b/d 165 000

Contract Fee – Seeding 400 31 Jul 16 Accounts Receivable Ctrl SJ1 20 000

Fuel & Oil – Seeding 500 31 Jul 16 Accounts Payable Ctrl PJ1 4 050

Fuel & Oil – Harvesting 501 31 Jul 16 Accounts Payable Ctrl PJ1 2 670

Repairs & Maintenance – Seeding 502 31 Jul 16 Accounts Payable Ctrl PJ1 1 670

continued




General Ledger of Oonchies Contract Seeding & Harvesting continued Repairs & Maintenance – Harvesting 503

31 Jul 16 Accounts Payable Ctrl PJ1 4 670

Accommodation – Seeding 507 31 Jul 16 Bank [payments] CP1 500

Workshop Rent 551 31 Jul 16 Bank [payments] CP1 200


Office Rent 561 31 Jul 16 Bank [payments] CP1 100

Insurance 562 31 Jul 16 Bank [payments] CP1 2 800

Oonchies Contract Seeding & Harvesting Trial Balance as at 31 July 2016

Bank 100 63 674 GST Receivable 103 1 711 Equipment – Seeding 150 80 000 Equipment – Harvesting 151 50 000 Office Equipment 152 5 000 Accounts Payable Control 200 495 GST Payable 201 2 000 Loan – Bank 250 30 000 Capital 300 165 000 Contract Fee – Seeding 400 20 000 Fuel & Oil – Seeding 500 4 050 Fuel & Oil – Harvesting 501 2 670 Repairs & Maintenance – Seeding 502 1 670 Repairs & Mainten’ce – Harvesting 503 4 670 Accommodation – Seeding 507 500 Workshop Rent 551 200 Stationery 560 450 Office Rent 561 100 Insurance 562 2 800

217 495 217 495

Question 4.42 periodic inventory applies 1 CR 1 CR 3 CP 5 SJ 5 SJ 8 CR 12 PJ

15 CR 17 SJ 17 PJ 18 PJ 20 (SJ) 23 CP 23 CP

27 PJ 28 SJ 30 CP




Sales Journal of P Sullivan SJ 1 Date Inv



Receiv Sales GST

Payab

5 Sep 16 513 F Cambourn – Sales 3 762 3 420 342 514 L Horner – Sales 2 629 2 390 239

17 Sep 16 515 L Horner – Sales 2 860 2 600 260 20 Sep 16 728 L Horner – Sales Return (88) (80) (8) 28 Sep 16 516 D Craig – Sales 3 608 3 280 328

12 771 11 610 1 161 101 400 201

Purchases Journal of P Sullivan PJ 1

Date Inv Adj


Ref Account Payable

Deliver Costs

GST Receiv

Stationery

Purch-ases

Repair Mntce

12 Sep 16 335 J Malloy – Delivery Costs 506 460 46 17 Sep 16 298 L Paragon – Stationery 286 26 260 18 Sep 16 482 E Longville – Purchases 583 53 530 27 Sep 16 699 B Stooke – Repair & Mntce 1 749 159 1 590

3 124 460 284 260 530 1 590 200 520 103 540 500 541

Cash Receipts Journal of P Sullivan CR 1

Date Rmt Rec


Discn’tAllow’d

GST Payab

Rent Rec’d

Sales

1 Sep 16 189 L Horner – Acc Receivab 2 563 (60) (6) 190 F Cambourn – Acc Receiv 4 202 1 738 (30) (3)

8 Sep 16 191 Rent Received 660 60 600 15 Sep 16 192 Sales 1 936 176 1 760

6 798 4 301 (90) 227 600 1 760 100 101 560 201 410 400

Cash Payments Journal of P Sullivan CP 1

Date Rmt Pmt


Discn’t Rec’d

GST Receiv

Interest Mortge

Electri-city

Postage

3 Sep 16 393 E Longville – Acc Payable 704 737 (30) (3)

23 Sep 16 394 Bank – Interest on Mort’age 1 275 1 275

395 Shortland Electricity – Elect 1 848 168 1 680

30 Sep 16 396 Australia Post – Postage 45 4 41 3 872 737 (30) 169 1 275 1 680 41 100 200 411 103 561 542 543




General Ledger of P Sullivan Bank 100

30 Sep 16 Receipts CR1 6 798 1 Sep 16 Balance b/d 1 650

30 Sep 16 Payments CP1 3 872

Balance c/d 1 276

6 798 6 798

1 Oct 16 Balance b/d 1 276

Accounts Receivable Control 101 1 Sep 16 Balance b/d 4 301 30 Sep 16 Bank [receipt] CR1 4 301

30 Sep 16 Sales SJ1 12 771 Balance c/d 12 771

17 072 17 072


Inventory 102 1 Sep 16 Balance b/d 18 000

GST Receivable 103 1 Sep 16 Balance b/d 875

30 Sep 16 Accounts Payable Ctrl PJ1 284


1 328

Land and Buildings 150 1 Sep 16 Balance b/d 35 000

Plant and Machinery 151 1 Sep 16 Balance b/d 17 000

Accounts Payable Control 200 30 Sep 16 Bank [payment] CP1 737 1 Sep 16 Balance b/d 737

Balance c/d 3 124 30 Sep 16 Purchases PJ1 3 124 3 861 3 861 1 Oct 16 Balance b/d 3 124

GST Payable 201 1 Sep 16 Balance b/d 1 765 30 Sep 16 Acc’nt Receivable Ctrl SJ1 1 161 Bank [receipt] CR1 227 3 153

Mortgage on Land and Buildings 250 1 Sep 16 Balance b/d 30 000

Capital 300 1 Sep 16 Balance b/d 41 024

continued




General Ledger of P Sullivan continued Sales 400

30 Sep 16 Acc’nt Receivable Ctrl SJ1 11 610 Bank [receipt] CR1 1 760 13 370

Rent Received 410 30 Sep 16 Bank [receipt] CR1 600

Discount Received 411 30 Sep 16 Bank [payment] CP1 30

Purchases 500


Delivery Costs 520


Stationery 540


Repairs and Maintenance 541

30 Sep 16 Accounts Payable Ctrl PJ1 1 590

Electricity 542

30 Sep 16 Bank [payment] CP1 1 680

Postage 543


Discount Allowed 560

30 Sep 16 Bank [receipt] CR1 90

Interest on Mortgage 561

30 Sep 16 Bank [payment] CP1 1 275




Trial Balance of P Sullivan as at 30 September 2016

Bank 100 1 276 Accounts Receivable Control 101 12 771 Inventory 102 18 000 GST Receivable 103 1 328 Land and Buildings 150 35 000 Plant and Machinery 151 17 000 Accounts Payable Control 200 3 124 GST Payable 201 3 153 Mortgage – Land & Buildings 250 30 000 Capital 300 41 024 Sales 400 13 370 Rent Received 410 600 Discount Received 411 30 Purchases 500 530 Delivery Costs 520 460 Stationery 540 260 Repairs and Maintenance 541 1 590 Electricity 542 1 680 Postage 543 41 Discount Allowed 560 90 Interest on Mortgage 561 1 275 91 301 91 301

Question 4.42 perpetual inventory applies 1 CR 1 CR 3 CP 5 SJ 5 SJ 8 CR 12 PJ

15 CR 17 SJ 17 PJ 18 PJ 20 (SJ) 23 CP 23 CP

27 PJ 28 SJ 30 CP

Sales Journal of P Sullivan SJ 1 Date Inv



Receiv Sales GST

Payab CoGS Inven-

tory

5 Sep 16 513 F Cambourn – Sales 3 762 3 420 342 2 052 2 052

514 L Horner – Sales 2 629 2 390 239 1 434 1 434

17 Sep 16 515 L Horner – Sales 2 860 2 600 260 1 560 1 560

20 Sep 16 728 L Horner – Sales Return (88) (80) (8) (48) (48)

28 Sep 16 516 D Craig – Sales 3 608 3 280 328 1 968 1 968 12 771 11 610 1 161 6 966 6 966 101 400 201 500 102




Purchases Journal of P Sullivan PJ 1 Date Inv



Payable Deliver Costs

GST Receiv

Station-ery

Inven-tory

Repair Mntce

12 Sep 16 335 J Malloy – Delivery Costs 506 460 46 17 Sep 16 298 L Paragon – Stationery 286 26 260 18 Sep 16 482 E Longville – Inventory 583 53 530 27 Sep 16 699 B Stooke – Repair & Mtce 1 749 159 1 590

3 124 460 284 260 530 1 590 200 520 103 540 102 541

Cash Receipts Journal of P Sullivan CR 1

Date Rmt Rec


Discn’t Allow’d

GST Payab

Gen-eral

CoGS Inven-tory

1 Sep 16 189 L Horner – Acc Receivable 2 563 (60) (6)

190 F Cambourn – Acc Receiv 4 202 1 738 (30) (3)

8 Sep 16 191 Rent Received 410 660 60 600

15 Sep 16 192 Sales 400 1 936 176 1 760 1 056 1 056 6 798 4 301 (90) 227 2 360 1 056 1 056 100 101 560 201 500 102

Cash Payments Journal of P Sullivan CP 1

Date Rmt Pmt


Discn’t Rec’d

GST Receiv

Interest Mortge

Electr-icity

Postage

3 Sep 16 393 E Longville – Acc Payable 704 737 (30) (3)

23 Sep 16 394 Bank – Interest on Mortgage 1 275 1 275

395 Shortland Electricity – Elect 1 848 168 1 680

30 Sep 16 396 Australia Post – Postage 45 4 41

3 872 737 (30) 169 1 275 1 680 41 100 200 411 103 561 542 543

General Ledger of P Sullivan

Bank 100 30 Sep 16 Receipts CR1 6 798 1 Sep 16 Balance b/d 1 650

30 Sep 16 Payments CP1 3 872

Balance c/d 1 276

6 798 6 798




17 072 17 072

1 Oct 16 Balance b/d 12 771 continued




General Ledger of P Sullivan continued Inventory 102

1 Sep 16 Balance b/d 18 000 30 Sep 16 Cost of Goods Sold SJ1 6 966

30 Sep 16 Accounts Payable Ctrl PJ1 530 Cost of Goods Sold CR1 1 056

Balance c/d 10 508

18 530 18 530

1 Oct 16 Balance b/d 10 508 GST Receivable 103

1 Sep 16 Balance b/d 875 30 Sep 16 Accounts Payable Ctrl PJ1 284


Land and Buildings 150 1 Sep 16 Balance b/d 35 000

Plant and Machinery 151 1 Sep 16 Balance b/d 17 000

Accounts Payable Control 200 30 Sep 16 Bank [payment] CP1 737 1 Sep 16 Balance b/d 737

Balance c/d 3 124 30 Sep 16 Purchases PJ1 3 124

3 861 3 861


GST Payable 201 1 Sep 16 Balance b/d 1 765

30 Sep 16 Acc’nt Receivable Ctrl SJ1 1 161


3 153

Mortgage on Land and Buildings 250 1 Sep 16 Balance b/d 30 000


Sales 400 30 Sep 16 Acc’nt Receivable Ctrl SJ1 11 610


13 370

Rent Received 410 30 Sep 16 Bank [receipt] CR1 600


continued



Question 4.42 continued (perpetual inventory applies) General Ledger of P Sullivan continued

Cost of Goods Sold 500 30 Sep 16 Inventory SJ1 6 966


Delivery Costs 520 30 Sep 16 Accounts Payable Ctrl PJ1 460

Stationery 540 30 Sep 16 Accounts Payable Ctrl PJ1 260

Repairs and Maintenance 541 30 Sep 16 Accounts Payable Ctrl PJ1 1 590

Electricity 542 30 Sep 16 Bank [payment] CP1 1 680

Postage 543 30 Sep 16 Bank [payment] CP1 41

Discount Allowed 560 30 Sep 16 Bank [receipt] CR1 90

Interest on Mortgage 561 30 Sep 16 Bank [payment] CP1 1 275

Trial Balance of P Sullivan

as at 30 September 2016 Bank 100 1 276 Accounts Receivable Control 101 12 771 Inventory 102 10 508 GST Receivable 103 1 328 Land and Buildings 150 35 000 Plant and Machinery 151 17 000 Accounts Payable Control 200 3 124 GST Payable 201 3 153 Mortgage – Land & Buildings 250 30 000 Capital 300 41 024 Sales 400 13 370 Rent Received 410 600 Discount Received 411 30 Cost of Goods Sold 500 8 022 Delivery Costs 520 460 Stationery 540 260 Repairs and Maintenance 541 1 590 Electricity 542 1 680 Postage 543 41 Discount Allowed 560 90 Interest on Mortgage 561 1 275 91 301 91 301



Question 4.43 perpetual inventory applies 3 CP 6 CR 9 PJ 9 SJ 9 PJ 10 PJ 12 PJ

13 CR 15 CR 15 CR 15 CP 17 SJ 17 CP 20 SJ

22 CP 23 CR 28 CR 28 CR 29 CP 29 CP

Sales Journal of C Holmes SJ 1

Date Inv Adj


Ref Account Receiv

Sales GST Payab

CoGS Inven-tory

9 Jul 16 335 G Sherborne – Sales 1 463 1 330 133 565 565

17 Jul 16 336 G Sherborne – Sales 2 904 2 640 264 1 122 1 122

20 Jul 16 338 E Gunning – Sales 1 793 1 630 163 693 693 6 160 5 600 560 2 380 2 380 101 400 201 500 102

Purchases Journal of C Holmes PJ 1

Date Inv Adj


Ref Account Payable

Statio-nery

GST Receiv

Off Fur & Equ

Inven-tory

9 Jul 16 580 Wauchope Stationery 187 170 17 785 Kanon – Office Furn & Eq 5 093 463 4 630

10 Jul 16 597 Wauchope Stationery 143 130 13 12 Jul 16 616 G Williams – Inventory 330 30 300

5 753 300 523 4 630 300 200 540 103 152 102

Cash Receipts Journal of C Holmes CR 1 Date Rmt



Discn’t Allow’d

CoGS Inven-tory

6 Jul 16 678 Sales 1 848 1 680 168 714 714

13 Jul 16 679 D Falconer – Acc Receivab 726 726

15 Jul 16 680 Sales 2 580 258 1 097 1 097

681 A McGregor – Acc Receiv 3 338 500

23 Jul 16 682 A McGregor – Acc Receiv 750 750

684 G Sherborne – Acc Receiv 1 463

685 E Gunning – Acc Receivab 3 212 (4) 1 793 (40) 9 874 4 260 422 5 232 (40) 1 811 1 811 100 400 201 101 560 500 102

Cash Payments Journal of C Holmes CP 1 Date Rmt

Pmt Payee and / or Particulars Ref Bank Tele-

phone GST

Receiv Wages GST

Payab Insur-ance

Acc’nt Payab

3 Jul 16 956 Telstra – Telephone 737 670 67

15 Jul 16 957 Cash – Wages 2 850 2 850

958 ATO – GST 1 200 (360) 1 560

22 Jul 16 959 Marilyn & Rose – Insurance 495 45 450

29 Jul 16 960 Kanon Copier – Acc Payab 5 093 5 093 961 Cash – Wages 2 850 2 850 13 225 670 (248) 5 700 1 560 450 5 093 100 541 103 542 201 543 200




General Ledger of C Holmes Bank 100

1 Jul 16 Balance b/d 35 000 31 Jul 16 Payments CP1 13 225

31 Jul 16 Receipts CR1 9 874 Balance c/d 31 649

44 874 44 874


Accounts Receivable Control 101 1 Jul 16 Balance b/d 2 222 31 Jul 16 Bank [receipt] CR1 5 232

31 Jul 16 Sales SJ1 6 160 Balance c/d 3 150

8 382 8 382


Inventory 102 1 Jul 16 Balance b/d 12 000 31 Jul 16 Cost of Goods Sold SJ1 2 380

31 Jul 16 Accounts Payable Ctrl PJ1 300 Cost of Goods Sold CR1 1 811

Balance c/d 8 109

12 300 12 300


GST Receivable 103 1 Jul 16 Balance b/d 360 31 Jul 16 Bank [payment] CP1 248

31 Jul 16 Accounts Payable Ctrl PJ1 523 Balance c/d 635

883 883

1 Aug 16 635 Premises 150

1 Jul 16 Balance b/d 30 000 Motor Vehicle 151

1 Jul 16 Balance b/d 8 000 Office Furniture and Equipment 152

1 Jul 16 Balance b/d 10 500 31 Jul 16 Accounts Payable Ctrl PJ1 4 630


31 Jul 16 Bank [payment] CP1 5 093 31 Jul 16 Purchases PJ1 5 753

Balance c/d 660

5 753 5 753


GST Payable 201 31 Jul 16 Bank [payment] CP1 1 560 1 Jul 16 Balance b/d 1 560

Balance c/d 982 31 Jul 16 Accnt Receivable Ctrl SJ1 560


2 542 2 542

1 Aug 16 Balance b/d 982 continued



Question 4.43 continued (perpetual inventory applies) General Ledger of C Holmes continued

Loan from West Bank 250 1 Jul 16 Balance b/d 35 000

Capital 300 1 Jul 16 Balance b/d 61 522



9 860




Telephone 541 31 Jul 16 Bank [payment] CP1 670


Insurance 543 31 Jul 16 Bank [payment] CP1 450

Discount Allowed 560 31 Jul 16 Bank [receipt] CR1 40

Trial Balance of C Holmes

as at 31 July 2016

Bank 100 31 649 Accounts Receivable Control 101 3 150 Inventory 102 8 109 GST Receivable 103 635 Premises 150 30 000 Motor Vehicle 151 8 000 Office Furniture and Equipment 152 15 130 Accounts Payable Control 200 660 GST Payable 201 982 Loan from West Bank 250 35 000 Capital 300 61 522 Sales 400 9 860 Cost of Goods Sold 500 4 191 Stationery 540 300 Telephone 541 670 Wages 542 5 700 Insurance 543 450 Discount Allowed 560 40 108 024 108 024



Question 4.43 continued (periodic inventory applies) 3 CP 6 CR 9 PJ 9 SJ 9 PJ 10 PJ 12 PJ

13 CR 15 CR 15 CR 15 CP 17 SJ 17 CP 20 SJ

22 CP 23 CR 28 CR 28 CR 29 CP 29 CP

Sales Journal of C Holmes SJ 1 Date Inv



Receiv Sales GST

Payab

9 Jul 16 335 G Sherborne – Sales 1 463 1 330 133 17 Jul 16 336 G Sherborne – Sales 2 904 2 640 264 20 Jul 16 338 E Gunning – Sales 1 793 1 630 163

6 160 5 600 560 101 400 201

Purchases Journal of C Holmes PJ 1

Date Inv Adj


Ref Account Payable

Statio-nery

GST Receiv

Off Fur & Equ

Purch-ases

9 Jul 16 580 Wauchope Stationery 187 170 17 785 Kanon – Office Furn & Eq 5 093 463 4 630

10 Jul 16 597 Wauchope Stationery 143 130 13 12 Jul 16 616 G Williams – Purchases 330 30 300

5 753 300 523 4 630 300 200 540 103 152 500

Cash Receipts Journal of C Holmes CR 1

Date Rmt Rec


Acc’nt Receiv

Discn’t Allow’d

6 Jul 16 678 Sales 1 848 1 680 168 13 Jul 16 679 D Falconer – Acc Receivab 726 726 15 Jul 16 680 Sales 2 580 258

681 A McGregor – Acc Receiv 3 338 500 23 Jul 16 682 A McGregor – Acc Receiv 750 750

684 G Sherborne – Acc Receiv 1 463 685 E Gunning – Acc Receivab 3 212 (4) 1 793 (40) 9 874 4 260 422 5 232 (40) 100 400 201 101 560

Cash Payments Journal of C Holmes CP 1

Date Rmt Pmt


GST Receiv

Wages GST Payab

Insur-ance

Acc’nt Payab

3 Jul 16 956 Telstra – Telephone 737 670 67

15 Jul 16 957 Cash – Wages 2 850 2 850

958 ATO – GST 1 200 (360) 1 560

22 Jul 16 959 Marilyn & Rose – Insurance 495 45 450

29 Jul 16 960 Kanon Copier – Acc Payab 5 093 5 093

961 Cash – Wages 2 850 2 850

13 225 670 (248) 5 700 1 560 450 5 093 100 541 103 542 201 543 200




General Ledger of C Holmes Bank 100

1 Jul 16 Balance b/d 35 000 31 Jul 16 Payments CP1 13 225


44 874 44 874




8 382 8 382


Inventory 102 1 Jul 16 Balance b/d 12 000


31 Jul 16 Accounts Payable Ctrl PJ1 523 Balance c/d 635

883 883

1 Aug 16 635 Premises 150

1 Jul 16 Balance b/d 30 000 Motor Vehicle 151

1 Jul 16 Balance b/d 8 000 Office Furniture and Equipment 152

1 Jul 16 Balance b/d 10 500 31 Jul 16 Accounts Payable Ctrl PJ1 4 630


31 Jul 16 Bank [payment] CP1 5 093 31 Jul 16 Purchases PJ1 5 753

Balance c/d 660

5 753 5 753



Balance c/d 982 31 Jul 16 Acc’nt Receivable Ctrl SJ1 560 Bank [receipt] CR1 422 2 542 2 542


Loan from West Bank 250 1 Jul 16 Balance b/d 35 000

continued




General Ledger of C Holmes continued Capital 300

1 Jul 16 Balance b/d 61 522


Purchases 500

31 Jul 16 Accounts Payable Ctrl PJ1 300 Stationery 540

31 Jul 16 Accounts Payable Ctrl PJ1 300 Telephone 541

31 Jul 16 Bank [payment] CP1 670 Wages 542

31 Jul 16 Bank [payment] CP1 5 700 Insurance 543

31 Jul 16 Bank [payment] CP1 450 Discount Allowed 560

31 Jul 16 Bank [receipt] CR1 40

Trial Balance of C Holmes as at 31 July 2016

Bank 100 31 649 Accounts Receivable Control 101 3 150 Inventory 102 12 000 GST Receivable 103 635 Premises 150 30 000 Motor Vehicle 151 8 000 Office Furniture and Equipment 152 15 130 Accounts Payable Control 200 660 GST Payable 201 982 Loan from West Bank 250 35 000 Capital 300 61 522 Sales 400 9 860 Purchases 500 300 Stationery 540 300 Telephone 541 670 Wages 542 5 700 Insurance 543 450 Discount Allowed 560 40 108 024 108 024



Question 4.44 periodic inventory applies May: 1 CR 1 CP 1 CR 3 (PJ) 4 CR 4 SJ

5 (SJ) 6 CP 6 PJ 17 CP 18 SJ 20 SJ

25 SJ 25 CP 26 PJ 27 CR 28 CP

June: 1 CR 1 CR 1 CR 2 CP 5 CR 5 CR

10 CP 20 PJ 20 SJ 25 SJ 26 CP 28 CP

Sales Journal of W Beavan SJ 1

Date Inv Adj


Ref Acc’nt Receiv

Sales GST Payab

4 May 16 384 M Seaford – Sales 1 815 1 650 165 5 May 16 583 G Bartlett – Sales Return (44) (40) (4) 18 May 16 385 F Proctor – Sales 1 595 1 450 145 20 May 16 386 G Bartlett – Sales 1 749 1 590 159 25 May 16 387 F Proctor – Sales 1 661 1 510 151

6 776 6 160 616 101 400 201

Purchases Journal of W Beavan PJ 1

Date Inv Adj


Ref Acc’nt Payable

Purch-ases

GST Receiv

Machi-nery

3 May 16 433 C Hunter – Purch Return (33) (30) (3) 6 May 16 076 C Lucre – Purchase 407 370 37

26 May 16 962 Alexander Machin’ry – M/c 8 899 809 8 090 9 273 340 843 8 090 200 500 103 151

Cash Receipts Journal of W Beavan CR 1

Date Rmt Rec


Discn’tAllow’d

GST Payab

Sales Loan Hulewi

1 May 16 250 M Griggs – Acc Receivable 715 (20) (2) 251 G Bartlett – Acc Receivable 1 035 386 (40) (4)

4 May 16 252 Sales 1 936 176 1 760 27 May 16 253 J Hulewicz – Loan Hulewicz 9 000 9 000

11 971 1 101 (60) 170 1 760 9 000 100 101 560 201 400 250

Cash Payments Journal of W Beavan CP 1

Date Rmt Pmt


Discn’t Rec’d

GST Receiv

GST Payab

Purch-ases

Vehicle Exp

1 May 16 170 L Robinson – Acc Payable 394 427 (30) (3)

6 May 16 171 C Hunter – Acc Payable 100 100

17 May 16 172 ATO – GST 250 (150) 400

25 May 16 173 S Driscoll – Purchases 506 46 460

28 May 16 174 Colo Caltex – Vehicle Exp 253 23 230 1 503 527 (30) (84) 400 460 230

100 200 410 103 201 500 540




Sales Journal of W Beavan SJ 2 Date Inv



Receiv Sales GST

Payab

20 Jun 16 388 M Seaford – Sales 1 287 1 170 117 25 Jun 16 389 F Proctor – Sales 2 541 2 310 231

3 828 3 480 348 101 400 201


Date Inv Adj


Ref Account Payable

Purch-ases

GST Receiv

20 Jun 16 580 L Robinson – Purchases 385 350 35 385 350 35

200 500 103

Cash Receipts Journal of W Beavan CR 2 Date Rmt

Rec Drawer and / or Particulars Ref Bank Acc’nts

Receiv Discn’t Allow’d

GST Payab

Sales

1 Jun 16 254 M Seaford – Acc Receivable 1 815 (50) (5) 255 F Proctor – Acc Receivable 3 256 (80) (8) 256 Sales 6 347 129 1 290

5 Jun 16 257 G Bartlett – Acc Receivable 1 705 258 Sales 3 278 143 1 430 9 625 6 776 (130) 259 2 720 100 101 560 201 400

Cash Payments Journal of W Beavan CP 2

Date Rmt Pmt


Discn’t Rec’d

GST Receiv

Rates Vehicle Exp

2 Jun 16 175 C Lucre – Acc Payable 396 407 (10) (1) 10 Jun 16 176 Alexander M/c Sales – Acc Pa 8 899 8 899 26 Jun 16 177 North Rivers Council – Rates 1 280 1 280 28 Jun 16 178 Colo Caltex – Vehicle Exp 297 27 270

10 872 9 306 (10) 26 1 280 270 100 200 410 103 541 540

General Ledger of W Beavan

Bank 100 1 May 16 Balance b/d 3 215 31 May 16 Payments CP1 1 503

31 May 16 Receipts CR1 11 971 Balance c/d 13 683

15 186 15 186

1 Jun 16 Balance b/d 13 683 30 Jun 16 Payments CP2 10 872

30 Jun 16 Receipts CR2 9 625 Balance c/d 12 436

23 308 23 308

1 Jul 16 Balance b/d 12 436 continued




General Ledger of W Beavan continued Accounts Receivable Control 101

1 May 16 Balance b/d 1 101 31 May 16 Bank [receipt] CR1 1 101 31 May 16 Sales SJ1 6 776 Balance c/d 6 776

7 877 7 877

1 Jun 16 Balance b/d 6 776 30 Jun 16 Bank [receipt] CR2 6 776 30 Jun 16 Sales SJ2 3 828 Balance c/d 3 828

10 604 10 604

1 Jul 16 Balance b/d 3 828 Inventory 102

1 May 16 Balance b/d 8 850

GST Receivable 103 1 May 16 Balance b/d 150 31 May 16 Bank [payment] CP1 84

31 May 16 Accounts Payable Ctrl PJ1 843 Balance c/d 909

993 993

1 Jun 16 Balance b/d 909 30 Jun 16 Accounts Payable Ctrl PJ2 35


Motor Vehicle 150 1 May 16 Balance b/d 13 200

Machinery 151 1 May 16 Balance b/d 2 400

31 May 16 Accounts Payable Ctrl PJ1 8 090 10 490

Accounts Payable Control 200 31 May 16 Bank [payment] CP1 527 1 May 16 Balance b/d 560

Balance c/d 9 306 31 May 16 Purchases PJ1 9 273

9 833 9 833

30 Jun 16 Bank [payment] CP2 9 306 1 Jun 16 Balance b/d 9 306 Balance c/d 385 30 Jun 16 Purchases PJ2 385

9 691 9 691

1 Jul 16 Balance b/d 385 GST Payable 201

31 May 16 Bank [payment] CP1 400 1 May 16 Balance b/d 400 Balance c/d 786 31 May 16 Acc’nt Receivable Ctrl SJ1 616 Bank [receipt] CR1 170 1 186 1 186

1 Jun 16 Balance b/d 786 30 Jun 16 Acc’nt Receivable Ctrl SJ2 348 Bank [receipt] CR2 259 1 393

continued




General Ledger of W Beavan continued Loan from J Hulewicz 250

31 May 16 Bank [receipt] CR1 9 000

Capital 300 1 May 16 Balance b/d 27 956

Sales 400 31 May 16 Acc’nt Receivable Ctrl SJ1 6 160 Bank [receipt] CR1 1 760

7 920 30 Jun 16 Acc’nt Receivable Ctrl SJ2 3 480


14 120

Discount Received 410 31 May 16 Bank [payment] CP1 30 30 Jun 16 Bank [payment] CP2 10

40

Purchases 500 31 May 16 Accounts Payable Ctrl PJ1 340


30 Jun 16 Accounts Payable Ctrl PJ2 350 1 150

Vehicle Expense 540 31 May 16 Bank [payment] CP1 230 30 Jun 16 Bank [payment] CP2 270

500 Rates 541

30 Jun 16 Bank [payment] CP2 1 280 Discount Allowed 560

31 May 16 Bank [receipt] CR1 60 30 Jun 16 Bank [receipt] CR2 130

190



Question 4.44 continued (periodic inventory applies) Trial Balance of W Beavan

as at 31 May 2016

Bank 100 13 683 Accounts Receivable Control 101 6 776 Inventory 102 8 850 GST Receivable 103 909 Motor Vehicle 150 13 200 Machinery 151 10 490 Accounts Payable Control 200 9 306 GST Payable 201 786 Loan from J Hulewicz 250 9 000 Capital 300 27 956 Sales 400 7 920 Discount Received 410 30 Purchases 500 800 Vehicle Expense 540 230 Discount Allowed 560 60 54 998 54 998

Trial Balance of W Beavan as at 30 June 2016

Bank 100 12 436 Accounts Receivable Control 101 3 828 Inventory 102 8 850 GST Receivable 103 970 Motor Vehicle 150 13 200 Machinery 151 10 490 Accounts Payable Control 200 385 GST Payable 201 1 393 Loan from J Hulewicz 250 9 000 Capital 300 27 956 Sales 400 14 120 Discount Received 410 40 Purchases 500 1 150 Vehicle Expense 540 500 Rates 541 1 280 Discount Allowed 560 190 52 894 52 894

Question 4.44 perpetual inventory applies May: 1 CR 1 CP 1 CR 3 (PJ) 4 CR 4 SJ

5 (SJ) 6 CP 6 PJ 17 CP 18 SJ 20 SJ

25 SJ 25 CP 26 PJ 27 CR 28 CP

June: 1 CR 1 CR 1 CR 2 CP 5 CR 5 CR

10 CP 20 PJ 20 SJ 25 SJ 26 CP 28 CP



Question 4.44 continued (perpetual inventory applies) Sales Journal of W Beavan SJ 1

Date Inv Adj


Ref Account Receiv

Sales GST Payab

CoGS Inven-tory

4 May 16 384 M Seaford – Sales 1 815 1 650 165 990 990

5 May 16 583 G Bartlett – Sales Return (44) (40) (4)

18 May 16 385 F Proctor – Sales 1 595 1 450 145 870 870

20 May 16 386 G Bartlett – Sales 1 749 1 590 159 954 954

25 May 16 387 F Proctor – Sales 1 661 1 510 151 906 906 6 776 6 160 616 3 720 3 720 101 400 201 500 102


Date InvAdj


Ref Acc’nt Payab

Inven-tory

GST Receiv

Machi-nery

3 May 16 433 C Hunter – Inventor Return (33) (30) (3) 6 May 16 076 C Lucre – Inventory 407 370 37

26 May 16 962 Alexander Machinery – M/c 8 899 809 8 090 9 273 340 843 8 090 200 102 103 151

Cash Receipts Journal of W Beavan CR 1 Date Rmt

Rec Drawer and / or Particulars Ref Bank Acc’nt

Receiv Discn’t Allow’d

GST Payab

Gen-eral

CoGS Inven-tory

1 May 16 250 M Griggs – Acc Receivable 715 (20) (2)

251 G Bartlett – Acc Receivable 1 035 386 (40) (4)

4 May 16 252 Sales 400 1 936 176 1 760 1 056 1 056

27 May 16 253 J Hulewicz – Loan Hulewicz 250 9 000 9 000 11 971 1 101 (60) 170 10 760 1 056 1 056

100 101 560 201 500 102 Cash Payments Journal of W Beavan CP 1

Date Rmt Pmt


Discn’t Rec’d

GST Receiv

GST Payab

Inven-tory

Vehicle Exp

1 May 16 170 L Robinson – Acc Payable 394 427 (30) (3)

6 May 16 171 C Hunter – Acc Payable 100 100

17 May 16 172 ATO – GST 250 (150) 400

25 May 16 173 S Driscoll – Inventory 506 46 460

28 May 16 174 Colo Caltex – Vehicle Exp 253 23 230 1 503 527 (30) (84) 400 460 230

100 200 410 103 201 102 540 Sales Journal of W Beavan SJ 2

Date Inv Adj


Ref Account Receiv

Sales GST Payab

CoGS Inven-tory

20 Jun 16 388 M Seaford – Sales 1 287 1 170 117 702 702

25 Jun 16 389 F Proctor – Sales 2 541 2 310 231 1 386 1 386 3 828 3 480 348 2 088 2 088

101 400 201 500 102




Purchases Journal of W Beavan PJ 2 Date Inv



Payable Inven-tory

GST Receiv

20 Jun 16 580 L Robinson – Inventory 385 350 35 385 350 35

200 102 103 Cash Receipts Journal of W Beavan CR 2

Date Rmt Rec

Drawer and / or Particulars Ref Bank Accs Receiv

Discn’t Allow’d

GST Payab

Sales CoGS Inven-tory

1 Jun 16 254 M Seaford – Acc Receivable 1 815 (50) (5)

255 F Proctor – Acc Receivable 3 256 (80) (8)

256 Sales 6 347 129 1 290 774 774

5 Jun 16 257 G Bartlett – Acc Receivable 1 705

258 Sales 3 278 143 1 430 858 858 9 625 6 776 (130) 259 2 720 1 632 1 632 100 101 560 201 400 500 102

Cash Payments Journal of W Beavan CP 2 Date Rmt

Pmt Payee and / or Particulars Ref Bank Acc’nt

Payab Discn’t Rec’d

GST Receiv

Rates Vehicle Exp

2 Jun 16 175 C Lucre – Acc Payable 396 407 (10) (1) 10 Jun 16 176 Alexander M/c Sales – Acc P 8 899 8 899 26 Jun 16 177 North Rivers Counc – Rates 1 280 1 280 28 Jun 16 178 Colo Caltex – Vehicle Exp 297 27 270

10 872 9 306 (10) 26 1 280 270 100 200 410 103 541 540

General Ledger of W Beavan

Bank 100 1 May 16 Balance b/d 3 215 31 May 16 Payments CP1 1 503


15 186 15 186



23 308 23 308

1 Jul 16 Balance b/d 12 436 Accounts Receivable Control 101

1 May 16 Balance b/d 1 101 31 May 16 Bank [receipt] CR1 1 101

31 May 16 Sales SJ1 6 776 Balance c/d

7 877 7 877

1 Jun 16 Balance b/d 6 776 30 Jun 16 Bank [receipt] CR2 6 776

30 Jun 16 Sales SJ2 3 828 Balance c/d 3 828

10 604 10 604

1 Jul 16 Balance b/d 3 828 continued



Question 4.44 continued (perpetual inventory applies) General Ledger of W Beavan continued

Inventory 102 1 May 16 Balance b/d 8 850 31 May 16 Cost of Goods Sold SJ1 3 720

31 May 16 Accounts Payable Ctrl PJ1 340 Cost of Goods Sold CR1 1 056

Bank [payment] CP1 460 Balance c/d 4 874

9 650 9 650

1 Jun 16 Balance b/d 4 874 30 Jun 16 Cost of Goods Sold SJ2 2 088

30 Jun 16 Accounts Payable Ctrl PJ2 350 Cost of Goods Sold CR2 1 632

Balance c/d 1 504

5 224 5 224


GST Receivable 103 1 May 16 Balance b/d 150 31 May 16 Bank [payment] CP1 84

31 May 16 Accounts Payable Ctrl PJ1 843 Balance c/d 909

993 993

1 Jun 16 Balance b/d 909 30 Jun 16 Accounts Payable Ctrl PJ2 35


Motor Vehicle 150 1 May 16 Balance b/d 13 200

Machinery 151 1 May 16 Balance b/d 2 400 31 May 16 Accounts Payable Ctrl PJ1 8 090


31 May 16 Bank [payment] CP1 527 1 May 16 Balance b/d 560


9 833 9 833

30 Jun 16 Bank [payment] CP2 9 306 1 Jun 16 Balance b/d 9 306

Balance c/d 385 30 Jun 16 Purchases PJ2 385

9 691 9 691

1 Jul 16 Balance b/d 385

GST Payable 201 31 May 16 Bank [payment] CP1 400 1 May 16 Balance b/d 400 Balance c/d 786 31 May 16 Acc’nts Receivable Ctrl SJ1 616 Bank [receipt] CR1 170 1 186 1 186

1 Jun 16 Balance b/d 786 30 Jun 16 Acc’nts Receivable Ctrl SJ2 348 Bank [receipt] CR2 259 1 393

continued




General Ledger of W Beavan continued Loan from J Hulewicz 250



Sales 400 31 May 16 Acc’nt Receivable Ctrl SJ1 6 160 4 May 16 Bank [receipt] CR1 1 760 7 920 30 Jun 16 Acc’nt Receivable Ctrl SJ2 3 480 Bank [receipt] CR2 2 720 14 120

Discount Received 410 31 May 16 Bank [payment] CP1 30 30 Jun 16 Bank [payment] CP2 10 40

Cost of Goods Sold 500 31 May 16 Inventory SJ1 3 720


30 Jun 16 Accounts Payable Ctrl SJ2 2 088 Accounts Payable Ctrl CR2 1 632

8 496 Vehicle Expense 540

31 May 16 Bank [payment] CP1 230 30 Jun 16 Bank [payment] CP2 270

500 Rates 541

30 Jun 16 Bank [payment] CP2 1 280 Discount Allowed 560

31 May 16 Bank [receipt] CR1 60 30 Jun 16 Bank [receipt] CR2 130

190




Trial Balance of W Beavan as at 31 May 2016

Bank 100 13 683


Inventory 102 4 874



Machinery 151 10 490

Accounts Payable Control 200 9 306

GST Payable 201 786

Loan from J Hulewicz 250 9 000

Capital 300 27 956

Sales 400 7 920

Discount Received 410 30



Discount Allowed 560 60

54 998 54 998

Trial Balance of W Beavan

as at 30 June 2016

Bank 100 12 436


Inventory 102 1 504



Machinery 151 10 490


GST Payable 201 1 393

Loan from J Hulewicz 250 9 000

Capital 300 27 956

Sales 400 14 120




Rates 541 1 280


52 894 52 894



Chapter 5 Separate ledgers for accounts receivable and accounts payable Question 5.1

General Ledger of P Alexander Bank 100

1 May 16 Balance b/d 2 092 31 May 16 Receipts CR1 5 225

7 317 Accounts Receivable Control 101


31 May 16 Sales SJ1 5 852 Balance c/d 5 159

9 999 9 999

1 Jun 16 Balance b/d 5 159

GST Payable 200 1 May 16 Balance b/d 439

31 May 16 Acc Receivable Ctrl SJ1 532


1 006


Sales 400 31 May 16 Acc Receivable Ctrl SJ1 5 320


5 790

Discount Allowed 560 31 May 16 Bank [receipt] CR1 120

Accounts Receivable Ledger of P Alexander

R Routledge 1 1 May 16 Balance 1 067 1 067 dr

Bank [receipt] CR1 1 001 66 dr

Discount Allowed & GST CR1 66 0

8 May 16 Sales SJ1 1 045 1 045 dr

25 May 16 Sales SJ1 814 1 859 dr

S Stalder 2 1 May 16 Balance 1 254 1 254 dr

4 May 16 Sales SJ1 715 1 969 dr

17 May 16 Bank [receipt] CR1 1 210 759 dr

Discount Allowed & GST CR1 44 715 dr

continued




Accounts Receivable Ledger of P Alexander continued T Taylor 3

1 May 16 Balance 1 826 1 826 dr

2 May 16 Bank [receipt] CR1 1 826 0

7 May 16 Sales SJ1 682 682 dr

21 May 16 Sales SJ1 968 1 650 dr

30 May 16 Sales SJ1 616 2 266 dr

D Unwin 4 15 May 16 Sales SJ1 297 297 dr

27 May 16 Sales SJ1 396 693 dr

31 May 16 Bank [receipt] CR1 671 22 dr


V Veness 5 28 May 16 Sales SJ1 319 319 dr

Trial Balance of P Alexander

as at 31 May 2016

P Alexander Accounts Receivable Listing

as at 31 May 2016

Bank 100 7 317 Accounts Receivable Control 101 5 159 R Routledge 1 1 859 GST Payable 200 1 006 S Stalder 2 715 Capital 300 5 800 T Taylor 3 2 266 Sales 400 5 790 V Veness 5 319

Discount Allowed 560 120 5 159 12 596 1 607

Question 5.2

General Ledger of P Brushgrove Bank 100

1 May 16 Balance b/d 9 730 31 May 16 Receipts CR1 8 404




16 533 16 533

1 Jun 16 Balance b/d 12 320 GST Payable 200


31 May 16 Acc’nts Receivable Ctrl SJ1 1 341


2 794 continued




General Ledger of P Brushgrove continued Capital 300


Sales 400 1 May 16 Balance b/d 8 940



26 260


Accounts Receivable Ledger of P Brushgrove E Bore 1

1 May 16 Balance 341 341 dr



28 May 16 Sales SJ1 1 232 1 232 dr

C Clouds 2 10 May 16 Sales SJ1 2 431 2 431 dr



I Glen 3 1 May 16 Balance 484 484 dr


15 May 16 Sales SJ1 1 881 1 881 dr

G Innes 4




18 May 16 Sales SJ1 1 793 1 793 dr

20 May 16 Sales Return SJ1 33 1 760 dr

B Lomond 5

16 May 16 Sales SJ1 1 914 1 914 dr

N Werrikimbe 6

15 May 16 Sales SJ1 1 650 1 650 dr

W Willi 7


Sales SJ1 1 947 2 332 dr


Discount Allowed & GST CR1 11 1 947 dr

21 May 16 Sales SJ1 1 980 3 927 dr





Trial Balance of P Brushgrove as at 31 May 2016

P Brushgrove Accounts Receivable Listing

Bank 100 18 134 as at 31 May 2016

Accounts Receivable Control 101 12 320 E Bore 1 1 232 GST Payable 200 2 794 I Glen 3 1 881 Capital 300 1 500 G Innes 4 1 760 Sales 400 26 260 B Lomond 5 1 914 Discount Allowed 560 100 N Werrikimbe 6 1 650

30 554 30 554 W Willi 7 3 883

12 320

Question 5.3

General Ledger of Stan Thorpe Bank 100

1 Jul 16 Balance b/d 578 31 Jul 16 Receipts CR1 12 617


1 Jul 16 Balance b/d 5 610 31 Jul 16 Bank [receipt] CR1 8 228


18 238 18 238


GST Payable 200 1 Jul 16 Balance b/d 888

Account Receivable Ctrl SJ1 1 148


2 435


Sales 400 31 Jul 16 Account Receivable Ctrl SJ1 11 480


15 620





Accounts Receivable Ledger of Stan Thorpe B Corindi 1

1 Jul 16 Balance 2 200 2 200 dr



8 Jul 16 Sales SJ1 869 869 dr

28 Jul 16 Sales SJ1 1 430 2 299 dr

31 Jul 16 Sale Return SJ1 583 1 716 dr

J Jeogla 2 1 Jul 16 Balance 1 683 1 683 dr

15 Jul 16 Sales SJ1 1 353 3 036 dr

20 Jul 16 Bank [receipt] CR1 1 683 1 353 dr

H Nambucca 3 3 Jul 16 Sales SJ1 2 618 2 618 dr

30 Jul 16 Bank [receipt] CR1 2 541 77 dr


U Runga 4 1 Jul 16 Balance 1 727 1 727 dr

Sales SJ1 2 178 3 905 dr

2 Jul 16 Bank [receipt] CR1 1 694 2 211 dr


9 Jul 16 Sales return SJ1 253 1 925 dr

22 Jul 16 Sales SJ1 1 749 3 674 dr

W Whiporie 5 15 Jul 16 Sales SJ1 2 035 2 035 dr

27 Jul 16 Sales SJ1 1 232 3 267 dr

Trial Balance of Stan Thorpe as at 31 July 2016

Stan Thorpe Accounts Receivable Listing

Bank 100 13 195 as at 31 July 2016

Accounts Receivable Control 101 10 010 B Corindi 1 1 716

GST Payable 200 2 435 J Jeogla 2 1 353

Capital 300 5 300 U Runga 4 3 674

Sales 400 15 620 W Whiporie 5 3 267

Discount Allowed 560 150 10 010

23 355 23 355



Question 5.4

General Ledger of T Aree Bank 100


Balance c/d 4 523

8 450 8 450


GST Receivable 101 28 Feb 16 Balance b/d 250

Accounts Payable Ctrl PJ1 408


676

Accounts Payable Control 200 28 Feb 16 Bank [payment] CP1 3 729 1 Feb 16 Balance c/d 2 750

Balance c/d 3 509 28 Feb 16 Purchases PJ1 4 488

7 238 7 238




Purchases 500 28 Feb 16 Accounts Payable Ctrl PJ1 2 540

Vehicle Expense 540 28 Feb 16 Accounts Payable Ctrl PJ1 890

Photocopying 541 28 Feb 16 Accounts Payable Ctrl PJ1 170


400

Office Repairs 542 28 Feb 16 Accounts Payable Ctrl PJ1 480

Accounts Payable Ledger of T Aree N Abiac 1

16 Feb 16 Purchases PJ1 187 187 cr

B Arrington 2 1 Feb 16 Balance 1 056 1 056 cr

2 Feb 16 Bank [payment] CP1 1 023 33 cr

Discount Received & GST CP1 33 0 continued




Accounts Payable Ledger of T Aree continued K Imbriki 3


W Ingham 4 1 Feb 16 Balance 869 869 cr

Bank [payment] CP1 847 22 cr

Discount Received & GST CP1 22 0



28 Feb 16 Purchases PJ1 253 1 221 cr

G Loster 5 1 Feb 16 Balance 825 825 cr

Purchases PJ1 891 1 716 cr



Purfleet Petrol 6 22 Feb 16 Purchases PJ1 506 506 cr

28 Feb 16 Bank [payment] CP1 506 0

Taree Tyres 7 6 Feb 16 Purchases PJ1 473 473 cr


Trial Balance of T Aree

as at 28 February 2016

T Aree Accounts Payable Listing

Bank 100 4 523 as at 28 February 2016

GST Receivable 101 676 N Abiac 1 187

Accounts Payable Control 200 3 509 K Imbriki 3 528

Capital 300 5 950 W Ingham 4 1 221

Discount Received 410 50 G Loster 5 1 573

Purchases 500 2 540 3 509

Vehicle Expenses 540 890

Photocopying 541 400 Office Repairs 542 480 9 509 9 509



Question 5.5

General Ledger of Emma Ville Bank 100

1 Apr 16 Balance b/d 4 295 30 Apr 16 Payments CP1 2 629

Balance c/d 1 666

4 295 4 295


GST Receivable 101


30 Apr 16 Accounts Payable Ctrl PJ1 321


694 Accounts Payable Control 200

30 Apr 16 Bank [payment] CP1 2 387 1 Apr 16 Balance b/d 2 387

Balance c/d 3 531 30 Apr 16 Purchases PJ1 3 531

5 918 5 918


Capital 300


Discount Received 410

30 Apr 16 Bank [payment] CP1 20

Purchases 500 1 Apr 16 Balance b/d 8 366

30 Apr 16 Accounts Payable Ctrl PJ1 2 980

11 346

Stationery 540

30 Apr 16 Accounts Payable Ctrl PJ1 230


470

Accounts Payable Ledger of Emma Ville R Aspley 1

1 Apr 16 Balance 825 825 cr



25 Apr 16 Purchases PJ1 418 418 cr

C Crossing 2 1 Apr 16 Balance 803 803 cr

2 Apr 16 Bank [payment] CP1 803 0

28 Apr 16 Purchases PJ1 308 308 cr continued




Accounts Payable Ledger of Emma Ville continued H Lennox 3


Purchases PJ1 748 1 353 cr

2 Apr 16 Bank [payment] CP1 594 759 cr

Discount Received & GST CP1 11 748 cr

15 Apr 16 Purchases PJ1 924 1 672 cr

Neat Stationery 4 10 Apr 16 Purchases PJ1 253 253 cr

C Sawtell 5 1 Apr 16 Balance 154 154 cr


18 Apr 16 Purchases PJ1 968 968 cr

22 Apr 16 Purchases Return PJ1 88 880 cr

Trial Balance of Emma Ville

as at 30 April 2016

Emma Ville Accounts Payable Listing

Bank 100 1 666 as at 30 April 2016

GST Receivable 101 694 R Aspley 1 418

Accounts Payable Control 200 3 531 C Crossing 2 308

Capital 300 10 625 H Lennox 3 1 672

Discount Received 410 20 Neat Stationery 4 253

Purchases 500 11 346 C Sawtell 5 880

Stationery 540 470 3 531

14 176 14 176

Question 5.6

General Ledger of Jack Adgery Bank 100


Balance c/d 835

5 587 5 587

1 Mar 16 Balance b/d 835 GST Receivable 101


28 Feb 16 Accounts Payable Ctrl PJ1 403


724 continued




General Ledger of Jack Adgery continued Accounts Payable Control 200

28 Feb 16 Bank [payment] CP1 4 191 1 Feb 16 Balance b/d 4 191

Balance c/d 4 433 28 Feb 16 Purchases PJ1 4 433

8 624 8 624


Capital 300



28 Feb 16 Bank [payment] CP1 70

Purchases 500


28 Feb 16 Accounts Payable Ctrl PJ1 4 030


7 625

Accounts Payable Ledger of Jack Adgery H Copman 1

1 Feb 16 Balance 968 968 cr



8 Feb 16 Purchases Return PJ1 66 561 cr


C Coutt 2 17 Feb 16 Purchases PJ1 440 440 cr


J Hill 3 1 Feb 16 Balance 1 694 1 694 cr

Bank [payment] CP1 1 650 44 cr




4 21 Feb 16 Purchases PJ1 330 330 cr

W Wooli 5 1 Feb 16 Balance 1 529 1 529 cr




28 Feb 16 Purchases Return PJ1 132 1 034 cr




Trial Balance of Jack Adgery as at 28 February 2016

Jack Adgery Accounts Payable Listing

Bank 100 835 as at 28 February 2016

GST Receivable 101 724 H Copman 1 1 089 Accounts Payable Control 200 4 433 C Coutts 2 1 419 Capital 300 4 681 J Hill 3 561 Discount Received 410 70 H Junction 4 330 Purchases 500 7 625 C Sawtell 5 1 034

9 184 9 184 4 433

Question 5.7

General Ledger of Bell Ingen Bank 100

1 Aug 16 Balance b/d 7 372 31 Aug 16 Payments CP1 1 221

31 Aug 16 Receipts CR1 3 784 Balance c/d 9 935

11 156 11 156


Accounts Receivable Control 101 1 Aug 16 Balance b/d 1 749 31 Aug 16 Bank [receipt] CR1 1 749

31 Aug 16 Sales SJ1 16 577 Balance c/d 16 577

18 326 18 326

1 Sep 16 Balance b/d 16 577 GST Receivable 102


31 Aug 16 Accounts Payable Ctrl PJ1 341


492

Accounts Payable Control 200 31 Aug 16 Bank [payment] CP1 748 1 Aug 16 Balance b/d 748

Balance c/d 3 751 31 Aug 16 Purchases PJ1 3 751

4 499 4 499

1 Sep 16 Balance b/d 3 751 GST Payable 201




1 966

Capital 300 1 Aug 16 Balance b/d 4 587

continued




General Ledger of Bell Ingen continued Sales 400




23 410

Purchases 500 1 Aug 16 Balance b/d 2 870

31 Aug 16 Accounts Payable Ctrl PJ1 3 410 Bank [payment] CP1 430 6 710

Accounts Receivable Ledger of Bell Ingen R Angourie 1

1 Aug 16 Balance 924 924 dr

10 Aug 16 Sales SJ1 6 567 7 491 dr

16 Aug 16 Bank [receipt] CR1 924 6 567 dr

22 Aug 16 Sales SJ1 2 057 8 624 dr

S Barri 2 1 Aug 16 Balance 374 374 dr

24 Aug 16 Bank [receipt] CR1 374 0

26 Aug 16 Sales SJ1 3 564 3 564 dr

T Park 3 1 Aug 16 Balance 451 451 dr


18 Aug 16 Sales SJ1 4 389 4 389 dr

Accounts Payable Ledger of Bell Ingen A Bay 1

1 Aug 16 Balance 242 242 cr

2 Aug 16 Bank [payment] CP1 242 0

E Crescent 2 1 Aug 16 Balance 308 308 cr


25 Aug 16 Purchases PJ1 1 991 1 991 cr

L Wooloweyah 3 1 Aug 16 Balance 198 198 cr






Trial Balance of Bell Ingen as at 31 August 2016

Bank 100 9 935 Accounts Receivable Control 101 16 577 GST Receivable 102 492 Accounts Payable Control 200 3 751 GST Payable 201 1 966 Capital 300 4 587 Sales 400 23 410 Purchases 500 6 710 33 714 33 714

Bell Ingen Accounts Receivable Listing

31 August 2016

Bell Ingen Accounts Payable Listing

31 August 2016

R Angourie 1 8 624 E Crescent 2 1 991 S Barri 2 3 564 L Wooloweyah 3 1 760

T Park 3 4 389 3 751

16 577

Question 5.8

General Ledger of Dorri Go Bank 100

1 Oct 16 Balance b/d 6 867 31 Oct 16 Payments CP1 9 475

31 Oct 16 Receipts CR1 7 172 Balance c/d 4 564

14 039 14 039

1 Nov 16 Balance b/d 4 564

Accounts Receivable Control 101 1 Oct 16 Balance b/d 8 162 31 Oct 16 Bank [receipt] CR1 4 785

31 Oct 16 Sales SJ1 10 571 Balance c/d 13 948

18 733 18 733


GST Receivable 102 1 Oct 16 Balance b/d 320 31 Oct 16 Bank [payment] CP1 115

31 Oct 16 Accounts Payable Ctrl PJ1 373 Balance c/d 578

693 693

1 Nov 16 Balance b/d 578

Accounts Payable Control 200 31 Oct 16 Bank [payment] CP1 5 742 1 Oct 16 Balance b/d 5 742

Balance c/d 4 103 31 Oct 16 Purchases PJ1 4 103

2818 1054

1 Nov 16 Balance b/d 4 103 continued



Question 5.8 continued General Ledger of Dorri Go continued

GST Payable 201 31 Oct 16 Bank [payment] CP1 1 798 1 Oct 16 Balance b/d 1 798

Balance c/d 1 178 31 Oct 16 Acc’nt Receivable Ctrl SJ1 961


2 976 2 976


Capital 300 1 Oct 16 Balance b/d 4 379

Sales 400 1 Oct 16 Balance b/d 8 378

31 Oct 16 Account Receivable Ctrl SJ1 9 610


20 158

Purchases 500 1 Oct 16 Balance b/d 4 948

31 Oct 16 Accounts Payable Ctrl PJ1 3 730 Bank [payment] CP1 2 050 10 728

Accounts Receivable Ledger of Dorri Go F Ashby 1

1 Oct 16 Balance 2 013 2 013 dr

Bank [receipt] CR1 2 013 0

25 Oct 16 Sales SJ1 1 694 1 694 dr

27 Oct 16 Sales return SJ1 99 1 595 dr

C Clarence 2 19 Oct 16 Sales SJ1 2 123 2 123 dr

S Donaldson 3 1 Oct 16 Balance 3 377 3 377 dr

8 Oct 16 Sales SJ1 2 750 6 127 dr

23 Oct 16 Sales SJ1 2 717 8 844 dr

A Tullymorgan 4 1 Oct 16 Balance 2 772 2 772 dr


12 Oct 16 Sales SJ1 1 595 1 595 dr

Sales Return SJ1 209 1 386 dr




Accounts Payable Ledger of Dorri Go L Esk 1

1 Oct 16 Balance 1 848 1 848 cr

2 Oct 16 Bank [payment] CP1 1 848 0

24 Oct 16 Purchases PJ1 1 617 1 617 cr

S Lismore 2 1 Oct 16 Balance 1 958 1 958 cr

4 Oct 16 Bank [payment] CP1 1 958 0

C Prince 3 1 Oct 16 Balance 1 936 1 936 cr


22 Oct 16 Bank [payment] CP1 1 936 1 903 cr

R Sandon 4 12 Oct 16 Purchases PJ1 583 583 cr

Trial Balance of Dorri Go as at 31 October 2016

Bank 100 4 564 Accounts Receivable Control 101 13 948 GST Receivable 102 578 Accounts Payable Control 200 4 103 GST Payable 201 1 178 Capital 300 4 379 Sales 400 20 158 Purchases 500 10 728 29 818 29 818

Dorri Go Accounts Receivable Listing

31 October 2016

Dorri Go Accounts Payable Listing

31 October 2016

F Ashby 1 1 595 L Esk 1 1 617 C Clarence 2 2 123 C Prince 3 1 903 S Donaldson 3 8 844 R Sandon 4 583 A Tullymorgan 4 1 386 4 103

13 948



Question 5.9

General Ledger of D Timbers Bank 100



9 992 9 992


Accounts Receivable Control 101 1 Jun 16 Balance b/d 2 673 30 Jun 16 Bank [receipt] CR1 4 587

30 Jun 16 Sales SJ1 14 036 Balance c/d 12 122

16 709 16 709


GST Receivable 102 1 Jun 16 Balance b/d 365

30 Jun 16 Accounts Payable Ctrl PJ1 557


1 051

Accounts Payable Control 200 30 Jun 16 Bank [payment] CP1 1 826 1 Jun 16 Balance b/d 1 826

Balance c/d 6 127 30 Jun 16 Purchases PJ1 6 127

7 953 7 953


GST Payable 201 1 Jun 16 Balance b/d 712

30 Jun 16 Account Receivable Ctrl SJ1 1 276


2 343

Capital 300 1 Jun 16 Balance b/d 2 000

Sales 400 30 Jun 16 Account Receivable Ctrl SJ1 12 760


15 700

Rent Received 410 30 Jun 16 Bank [receipt] CR1 700

Discount Received 411 30 Jun 16 Bank [payment] CP1 40

Purchases 500 30 Jun 16 Accounts Payable Ctrl PJ1 4 200


5 360

continued




General Ledger of D Timbers continued Advertising 520

30 Jun 16 Accounts Payable Ctrl PJ1 590

Freight Outward 521 30 Jun 16 Accounts Payable Ctrl PJ1 430

Stationery 540 30 Jun 16 Accounts Payable Ctrl PJ1 350

Postage 541 30 Jun 16 Bank [payment] CP1 173

Discount Allowed 560 30 Jun 16 Bank [receipt] CR1 90

Accounts Receivable Ledger of D Timbers

P Addington 1

20 Jun 16 Sales SJ1 1 749 1 749 dr

29 Jun 16 Sales SJ1 2 904 4 653 dr

K Cross 2 15 Jun 16 Sales SJ1 1 914 1 914 dr

30 Jun 16 Bank [receipt] CR1 1 870 44 dr


S Hills 3 8 Jun 16 Sales SJ1 1 309 1 309 dr

23 Jun 16 Sales return SJ1 66 1 243 dr

D Hurst 4 1 Jun 16 Balance b/d 979 979 dr

2 Jun 16 Bank [receipt] CR1 957 22 dr


8 Jun 16 Sales SJ1 275 275 dr

21 Jun 16 Sales SJ1 2 563 2 838 dr

D Linghurst 5 25 Jun 16 Sales SJ1 1 804 1 804 dr

M Point 6 1 Jun 16 Balance b/d 935 935 dr

Bank [receipt] CR1 902 33 dr


5 Jun 16 Sales SJ1 1 584 1 584 dr

E Sydney 7 1 Jun 16 Balance b/d 759 759 dr

10 Jun 16 Bank [receipt] CR1 759 0




Accounts Payable Ledger of D Timbers W Averton 1

1 Jun 16 Balance 891 891 cr

2 Jun 16 Bank [payment] CP1 847 44 cr


5 Jun 16 Purchases PJ1 748 748 cr

15 Jun 16 Purchases PJ1 1 914 2 662 cr

18 Jun 16 Purchases Return PJ1 77 2 585 cr

L Cove 2 1 Jun 16 Balance 198 198 cr


7 Jun 16 Bank [payment] CP1 198 110 cr


P McMahon 3 26 Jun 16 Purchases PJ1 473 473 cr

M Point 4 28 Jun 16 Purchases PJ1 968 968 cr

C Remorne 5 8 Jun 16 Purchases PJ1 649 649 cr

W Stonecraft 6 1 Jun 16 Balance 737 737 cr

23 Jun 16 Purchases PJ1 451 1 188 cr

24 Jun 16 Purchases PJ1 616 1 804 cr

25 Jun 16 Bank [payment] CP1 737 1 067 cr

Trial Balance of D Timbers as at 30 June 2016

Bank 100 6 744 Accounts Receivable Control 101 12 122 GST Receivable 102 1 051 Accounts Payable Control 200 6 127 GST Payable 201 2 343 Capital 300 2 000 Sales 400 15 700 Rent Received 410 700 Discount Received 411 40 Purchases 500 5 360 Advertising 520 590 Freight Outward 521 430 Stationery 540 350 Postage 541 173 Discount Allowed 560 90 26 910 26 910




D Timbers Accounts Receivable Listing

as at 30 June 2016

D Timbers Accounts Payable Listing

as at 30 June 2016

P Addington 1 4 653 W Averton 1 2 585

S Hills 3 1 243 L Cove 2 385

D Hurst 4 2 838 P Mc Mahon 3 473

D Linghurst 5 1 804 M Point 4 968

M Point 6 1 584 C Remorne 5 649

12 122 W Stonecraft 6 1 067

6 127

Question 5.10 a. It is important for a business to develop credit policies and procedures to ensure that

amounts owing by customers are collected promptly and bad debts are minimised. b. An organisation’s credit policy should cover the following:

• credit terms • credit approval • procedures for recording accounts receivable transactions • monitoring of accounts receivable • debt collection procedures.

Question 5.11 Customer credit approval is necessary to ensure that the customer is creditworthy and therefore likely to promptly pay amounts owing for the supply of goods and/or services.

Question 5.12 (Any five of the following): • When a customer order is received it is important to ascertain that the customer has been

approved for credit and, if so, whether the proposed sale will cause the customer’s credit limit to be exceeded.

• Before the sales invoice or delivery docket is prepared, it is necessary to check stock availability.

• A sales invoice/delivery docket is prepared. Where the price to be charged differs from the standard price list, it must be approved by a person in authority (e.g. sales manager).

• A copy of the invoice/delivery docket is forwarded to despatch as authority to ship the goods to the customer. Another copy of the sales invoice should be sent to accounts receivable for recording.

• Sales invoices should be serially numbered so that all sales invoices can be accounted for. • In order to maximise cash flow, customers should be invoiced promptly.

Question 5.13 Issuing statements of account to customers allows the customer to compare it against its records. Any irregularities or discrepancies notified by customers can then be followed up and corrective action taken, if required.



Question 5.14 a. The Accounts Receivable Age Analysis report is used to determine debtors with overdue

amounts. This report lists each debtor with the total amount owing, broken down into how long the amount(s) have been outstanding (e.g. 30 days, 60 days etc.)

b. Action taken to facilitate prompt payment of overdue accounts will be determined by the business’s credit policies and procedures. Depending how long the amount has been overdue, action may include telephone contact, reminder notices, legal action or placing the debt in the hands of a debt collection agency. The business may also refuse further credit until the amount outstanding is paid.

Question 5.15 Generally, the longer a debt is outstanding the higher the likelihood that it may not be collected. Consequently, if doubtful debts are identified early, prompt recovery action can be taken.

Question 5.16 a. Internal controls over receipt of goods from suppliers should include the following.

• Goods received should be counted and, where possible, examined to ensure that they are in good order and condition.

• The goods received should be reconciled with a copy of the purchase order, and any short deliveries noted.

• A receiving report should be prepared as evidence that the goods have been received. • Persons receiving goods should not be able to authorise purchase orders or be

involved in the processing of supplier invoices. b. Internal controls over the processing of supplier invoices should include the following.

• Persons processing supplier invoices should not be able to authorise purchase orders or be involved in recording the receipt of goods.

• All supplier invoices should be sent to the accounts payable department for processing.

• The accounts payable department should match the supplier invoice against the copy of the relevant purchase order and, where appropriate, the receiving report and the documents should be stapled together.

• All calculations in the invoice should be checked and any discrepancies followed up with the supplier.

• The accounts payable department should record the correct general ledger account code on the face of the invoice.

Question 5.17 A business needs to monitor its accounts payable to ensure that supplier accounts are paid promptly. Late payment to supplier could result in: • loss of prompt payment discounts • damage to the business’s credit rating • possible refusal of credit by suppliers.

Question 5.18 Business credit cards are a convenient way to pay for certain goods and services, but their use should be strictly controlled to ensure that they are only used for approved business purposes. A business’s accounts payable policies and procedures should govern the following in relation to business credit cards: • personnel entitled to a credit card • types of approved expenditure • appropriate credit limits • staff expenditure reporting • management of business credit card use and expenditure.



Question 5.19 Reasonableness checks involve periodic perusal of accounting records by someone in authority, such as the accountant or financial controller. The aim is to highlight any transactions that appear out of the ordinary in terms of nature or amount. Any such items should be investigated and appropriate action taken.

Question 5.20 Reconciliation of Darren Copland Statement 31 March 2016

Balance as per supplier’s statement 2 057.00 less Tax invoices not yet processed # 415 209.00 # 465 715.00 924.00

Balance as per Accounts Payable Ledger 1 133.00 less 3% Discount on $1133.00 33.99 Value of remittance to be drawn 1 099.01

Question 5.21 Reconciliation of Lesley Richmond Statement for January 2016 Balance as per supplier’s statement 1 716.00 less Tax invoices not yet processed # 273 110.00 # 439 418.00 528.00

1 188.00 add Adjustment credit note not yet processed # 086 88.00

Balance as per Accounts Payable Ledger 1 276.00 less 5% Discount on $1276.00 63.80 Value of remittance to be drawn 1 212.20

Question 5.22 Reconciliation of Lisa Jackson Statement for April 2016

Balance as per supplier’s statement 4 220.92 less Invoices not yet processed # 174 528.00 # 792 803.00 1 331.00

2 889.92 less Discount not yet allowed on rec #216 18.92 Balance as per amended Accounts Payable Ledger 2 871.00 less 2% Discount on $2871.00 57.42 Value of remittance to be drawn 2 813.58

Adjustment to Accounts Payable Ledger

Balance as per Accounts Payable Ledger 2 849.00 18 April tax invoice #588 should be 440.00 18 April tax invoice #588 shown as 418.00 Increase in Accounts Payable Ledger 22.00 Amended Accounts Payable Ledger balance 2 871.00



Question 5.23

Remittance Advice of

S Hassal 140 Shannon Highway 30 April 2016 Shipman 2473 Norma M Spence

1 Tibbles Street Beaumaris 3193

Customer 106

Date Particulars and Reference Debit Credit Balance

6 Mar 16 Purchases tax inv 254 √ 143.00 143.00

15 Mar 16 Purchases adj c/n 025 √ 198.00 (55.00)


20 Mar 16 Purchases tax inv 286 √ 473.00 1 177.00

24 Mar 16 Purchases adj c/n 030 √ 44.00 1 133.00

27 Apr 16 Bank chq 45678 1 133.00 0.00

Extract Accounts Receivable Listing

from the Accounts Receivable Ledger of Norma M Spence S Hassal 281 account Ageing

Date Inv/(Cn) Amount Cumulative Current 30 days 60 days 90+ days

4 Mar 16 254 143.00 143.00 √ 143.00

7 Mar 16 286 473.00 616.00 √ 473.00

15 Mar 16 (025) (198.00) 418.00 √ (198.00)

16 Mar 16 375 759.00 1 177.00 √ 759.00

23 Mar 16 415 209.00 1 386.00 209.00

24 Mar 16 (030) (44.00) 1 342.00 √ (44.00)

27 Mar 16 465 715.00 2 057.00 715.00

17 Apr 16 615 689.00 2 746.00 689.00

26 Apr 16 686 549.00 3 295.00 549.00

29 Apr 16 727 538.00 3 833.00 538.00

3 833.00 1 776.00 2 057.00 Overdue tax invoices are 23 March #415 $209.00 and 27 March #465 $715.00. The credit officer should briefly confirm with sales and despatch departments that there were no known problems with the price or deliveries on tax invoices #415 $209.00 or #465 $715.00.

Contact the accounts payable officer of S Hassal that day to see if there are any problems with payment of these invoices. Get a commitment that they are in process or have already been processed for inclusion with the remittance due at the end of May. The date, time, name and brief details of the conversation (or similar comments) must be noted on the accounts receivable listing sheet. Other logical scenarios should be considered.



Question 5.24 Remittance Advice of

E von Stephenson 3 Cottonwood Close 25 May 2016 Tallawudjah 2450 Breeze Towers

13 Gale Road Stevenston 2467

Customer 125



2 Apr 16 Purchases tax inv 455 √ 33.00 979.00

5 Apr 16 Purchases tax inv 513 √ 660.00 1 639.00





21 Apr 16 Purchases Return adj c/n 113 √ 66.00 3 432.00


25 May 16 Bank chq 56789 3 817.00 0.00


from the Accounts Receivable Ledger of Breeze Towers

E von Stephenson 249 account Ageing

Date Inv/(Cn) Amount Cumulative Current 30 days 60 days 90+ days

19 Feb

174 528.00 528.00 528.00

4 Mar 16 391 946.00 1 474.00 √ 946.00

27 Mar

455 33.00 1 507.00 √ 33.00

3 Apr 16 513 660.00 2 167.00 √ 660.00

4 Apr 16 541 550.00 2 717.00 √ 550.00

9 Apr 16 563 220.00 2 937.00 √ 220.00

10 Apr

588 440.00 3 377.00 √ 440.00

15 Apr

603 649.00 4 026.00 √ 649.00

20 Apr

(113) (66.00) 3 960.00 √ (66.00)

26 Apr

687 385.00 4 345.00 √ 385.00

28 Apr

792 803.00 5 148.00 803.00

2 May 16 827 791.00 5 939.00 791.00

11 May

889 548.00 6 487.00 548.00

19 May

919 413.00 6 900.00 413.00

25 May

956 586.00 7 486.00 586.00 7 486.00 2 338.00 3 641.00 979.00 528.00



Question 5.24 finalised Overdue tax invoices are 19 February #174 $528.00 and 28 April #792 $803.00. The credit officer should know why the tax invoice on 19 February 2010 #174 $528.00 is so overdue, or they may need to acquaint themselves with the facts that have been noted in previous months’ accounts receivable listings. Any undertakings that have been made by the credit officer and or any other employee, such as a decision by the sales manager or despatch manager, need to be checked; and also that the undertakings have been completed and communicated to the customer. If the business has done all that is prepared to do, then face-to-face discussion between senior people from both organisations may be necessary to resolve the matter and ensure payment is received. The final option would be to stop giving credit to E von Stephenson, who would be regarded as a ‘cash with order’ customer until payment is received for an agreed amount (which may be $528.00 or some agreed lesser amount). Although it may have begun as a simple claim for $528.00, care should be taken to ensure that there are no problems with the outstanding amount on tax invoice 28 April #792 $803.00. It may only be that the delivery or processing of the paperwork occurred too late for the present remittance by the customer and has been included as a payment in the next. Some other scenarios may be just as acceptable as long as it is plausible from the small amount of information known.

Question 5.25

General Ledger of Ku Cumbit Bank 100

1 Sep 16 Balance b/d 24 833 30 Sep 16 Payments CP1 10 703

30 Sep 16 Receipts CR1 25 542 Balance c/d 39 672

50 375 50 375




46 728 46 728


GST Receivable 102 1 Sep 16 Balance b/d 700



2 597

Machinery 150 1 Sep 16 Balance b/d 1 000 30 Sep 16 Acc’nt Receivable Ctrl SJ1 1 000

30 Sep 16 Accounts Payable Ctrl PJ1 6 560 Balance c/d 6 560

7 560 7 560





General Ledger of Ku Cumbit continued Accounts Payable Control 200

30 Sep 16 Bank [payment] CP1 10 087 1 Sep 16 Balance b/d 3 718

Balance c/d 13 882 30 Sep 16 Purchases PJ1 20 251

23 969 23 969


GST Payable 201 1 Sep 16 Balance b/d 4 000



6 713


Sales 400 1 Sep 16 Balance b/d 41 270



67 200

Commission Received 410 30 Sep 16 Bank [receipt] CR1 510


Purchases 500 1 Sep 16 Balance b/d 6 320

30 Sep 16 Accounts Payable Ctrl PJ1 8 600 Bank [payment] CP1 540

15 460 Delivery Costs 520

30 Sep 16 Accounts Payable Ctrl PJ1 670 Office Expense 540

30 Sep 16 Accounts Payable Ctrl PJ1 600 Vehicle Expense 541


Stationery 542


Rent 543



30 Sep 16 Bank [receipt] CR1 310




Accounts Receivable Ledger of Ku Cumbit B Beitibombi 1

19 Sep 16 Sales SJ1 3 157 3 157 dr

30 Sep 16 Bank [receipt] CR1 3 091 66 dr


B Boorawhanga 2 9 Sep 16 Sales SJ1 451 451 dr

D P Creek 3 1 Sep 16 Balance b/d 8 415 8 415 dr

3 Sep 16 Sales SJ1 2 618 11 033 dr

15 Sep 16 Bank [receipt] CR1 8 415 2 618 dr

P Killawarra 4 1 Sep 16 Balance b/d 4 466 4 466 dr



22 Sep 16 Sales SJ1 4 224 4 224 dr

Kindle Hill & Co 5 1 Sep 16 Balance b/d 6 754 6 754 dr



13 Sep 16 Sales SJ1 2 838 2 838 dr

29 Sep 16 Sales SJ1 4 796 7 634 dr

B Koorapei 6 25 Sep 16 Sales SJ1 1 100 1 100 dr

F Munyaree 7 15 Sep 16 Sales SJ1 2 156 2 156 dr

23 Sep 16 Sales return SJ1 110 2 046 dr

C Wombateeni 8 21 Sep 16 Sales SJ1 2 882 2 882 dr

26 Sep 16 Sales SJ1 2 981 5 863 dr

Accounts Payable Ledger of Ku Cumbit

R Ashlea 1

1 Sep 16 Balance 1 353 1 353 cr

9 Sep 16 Bank [payment] CP1 1 353 0

23 Sep 16 Purchases PJ1 1 562 1 562 cr

K Atabundah 2


30 Sep 16 Bank [payment] CP1 6 853 363 cr


continued




Accounts Payable Ledger of Ku Cumbit continued Belbourie Co 3

15 Sep 16 Purchases PJ1 737 737 cr


C K Dingo 4

1 Sep 16 Balance 847 847 cr

7 Sep 16 Purchases PJ1 473 1 320 cr

22 Sep 16 Purchases PJ1 187 1 507 cr

C Ramsay 5

9 Sep 16 Purchases PJ1 990 990 cr

Wallaby Joe 6



Warroo & Co 7

1 Sep 16 Balance 1 518 1 518 cr




24 Sep 16 Purchases Return PJ1 165 1 705 cr

Trial Balance of Ku Cumbit


Bank 100 39 672 Accounts Receivable Control 101 23 936 GST Receivable 102 2 597 Machinery 150 6 560 Accounts Payable Control 200 13 882 GST Payable 201 6 713 Capital 300 3 500 Sales 400 67 200 Commission Received 410 510 Discount Received 411 370 Purchases 500 15 460 Delivery Costs 520 670 Office Expense 540 600 Vehicle Expense 541 1 980 Stationery 542 140 Rent 543 250 Discount Allowed 560 310 92 175 92 175




Ku Cumbit Accounts Receivable Listing


Ku Cumbit Accounts Payable Listing


B Boorawhanga 2 451 R Ashlea 1 1 562 D P Creek 3 2 618 Belbourie Co 3 4 279 P Killawarra 4 4 224 C K Dingo 4 1 507 Kindle Hill & Co 5 7 634 C Ramsay 5 990 B Koorapei 6 1 100 Wallaby Joe 6 3 839 F Munyaree 7 2 046 Warroo & Co 7 1 705 C Wombateeni 8 5 863 13 882 23 936

Question 5.26 1 CR 1 CR 1 CP 2 CR 7 PJ 13 PJ 15 SJ

16 PJ 16 SJ 18 SJ 19 (PJ) 20 (SJ) 21 PJ 21 CR

25 PJ 25 PJ 26 (PJ) 28 SJ

Sales Journal of Val Orara SJ1 Date Inv



Receiv Sales GST

Payab

15 May 16 541 B Dolan – Sales R3 2 156 1 960 196 16 May 16 542 R Daley – Sales R2 2 211 2 010 201 18 May 16 543 A Jameson – Sales R4 2 057 1 870 187 20 May 16 123 A Jameson – Sale Return R4 (44) (40) (4) 28 May 16 544 G Clifton – Sales R1 1 419 1 290 129

7 799 7 090 709 101 400 201 [dr] [cr] [cr]

Purchases Journal of Val Orara PJ1

Date Inv Adj


Ref Acc’nt Payab

Purch-ases

GST Receiv

Statio-nery

Insur-ance

7 May 16 671 A Waratah – Purchases P4 297 270 27 13 May 16 235 Mayfield Stat – Stationery P1 165 15 150 16 May 16 679 B Mont – Purchases P3 187 170 17 19 May 16 054 B Mont – PurchasesReturn P3 (33) (30) (3) 21 May 16 852 A Waratah – Purchases P4 374 340 34 25 May 16 369 B Mont – Purchases P3 407 370 37

843 A Merewether – Insurance P2 363 33 330 26 May 16 083 B Mont – PurchasesReturn P3 (55) (50) (5)

1 705 1 070 155 150 330 200 500 102 540 541

[cr] [dr] [dr] [dr] [dr]




Cash Receipts Journal of Val Orara CR 1 Date Rmt


Receiv Disc’nt Allow’d

GST Payab

Sales

1 May 16 257 B Dolan – Acc Receivable R3 781 258 A Jameson – Acc Receivab R4 1 650 902 (30) (3)

2 May 16 259 G Clifton – Acc Receivable R1 550 572 (20) (2) 21 May 16 260 Sales 2 563 233 2 330

4 763 2 255 (50) 228 2 330 100 101 560 201 400

[dr] [cr] [dr] [cr] [cr]

Cash Payments Journal of Val Orara CP1 Date Rmt

Pmt Payee and / or Particulars Ref Bank Acc’nt

Payab

1 May 16 518 B Mont – Accounts Payable P3 176 176 176 176 100 200 [cr] [dr]

General Ledger of Val Orara

Bank 100 1 May 16 Balance b/d 5 443 31 May 16 Payments CP1 176


10 206 10 206


Accounts Receivable Control 101 1 May 16 Balance b/d 2 255 31 May 16 Bank [receipt] CR1 2 255


10 054 10 054


GST Receivable 102 1 May 16 Balance b/d 478

31 May 16 Accounts Payable Ctrl PJ1 155

633

Accounts Payable Control 200 31 May 16 Bank [payment] CP1 176 1 May 16 Balance b/d 264

Balance c/d 1 793 31 May 16 Purchase PJ1 1 705

1 969 1 969


GST Payable 201 1 May 16 Balance b/d 1 703

31 May 16 Acc’nts Receivable Ctrl SJ1 709


2 640 continued




General Ledger of Val Orara continued Capital 300


Sales 400 1 May 16 Balance b/d 4 100



13 520

Purchases 500 1 May 16 Balance b/d 2 705


Stationery 540 31 May 16 Accounts Payable Ctrl PJ1 150

Insurance 541 31 May 16 Accounts Payable Ctrl PJ1 330


Accounts Receivable Ledger of Val Orara

G Clifton 1




28 May 16 Sales SJ1 1 419 1 419 dr

R Daley 2 16 May 16 Sales SJ1 2 211 2 211 dr

B Dolan 3 1 May 16 Balance 781 781 dr


15 May 16 Sales SJ1 2 156 2 156 dr

A Jameson 4 1 May 16 Balance 902 902 dr



18 May 16 Sales SJ1 2 057 2 057 dr





Accounts Payable Ledger of Val Orara Mayfield Stationers 1

1 May 16 Balance 88 88 cr

13 May 16 Purchase PJ1 165 253 cr

A Merewether 2 25 May 16 Purchase PJ1 363 363 cr

B Mont 3 1 May 16 Balance 176 176 cr



19 May 16 PurchasesReturn PJ1 33 154 cr


26 May 16 Purchases Return PJ1 55 506 cr

A Waratah 4 7 May 16 Purchase PJ1 297 297 cr


Trial Balance of Val Orara

as at 31 May 2016

Bank 100 10 030 Accounts Receivable Control 101 7 799 GST Receivable 102 633 Accounts Payable Control 200 1 793 GST Payable 201 2 640 Capital 300 4 814 Sales 400 13 520 Purchases 500 3 775 Stationery 540 150 Insurance 541 330 Discount Allowed 560 50 22 767 22 767

Val Orara

Accounts Receivable Listing 31 May 2016

Val Orara Accounts Payable Listing

31 May 2016

G Clifton 1 1 419 Mayfield Stationers 1 253

R Daley 2 2 211 A Merewether 2 363

B Dolan 3 2 156 B Mont 3 506

A Jameson 4 2 013 A Waratah 4 671 7 799 1 793



Question 5.27 1 SJ 1 CR 1 PJ 1 CP 2 CP 2 CP 10 PJ

10 SJ 15 SJ 15 PJ 17 CR 19 PJ 20 PJ 21 SJ

25 CR 28 (SJ) 29 CP 30 CR

Sales Journal of Glen Reagh SJ1

Date Inv Adj


Ref Acc’nt Receiv

Sales GST Payab

1 Apr 16 237 S Smith – Sales R2 2 244 2 040 204 10 Apr 16 238 F White – Sales R3 2 794 2 540 254 15 Apr 16 239 C Noble – Sales R1 1 903 1 730 173 21 Apr 16 240 S Smith – Sales R2 2 277 2 070 207 28 Apr 16 147 S Smith – Sales Return R2 (33) (30) (3)

9 185 8 350 835 101 400 201 [dr] [cr] [cr]

Purchases Journal of Glen Reagh PJ1

Date Inv Adj


Ref Acc’nt Payab

Purch-ases

GST Receiv

Office Equip

1 Apr 16 253 G Lendale – Purchases P4 198 180 18 10 Apr 16 475 N Lambton – Office Equip P3 2 893 263 2 630 15 Apr 16 654 G Lendale – Purchases P4 231 210 21 19 Apr 16 369 N Castle – Purchases P1 286 260 26 20 Apr 16 876 K Kurri – Purchases P2 385 350 35

3 993 1 000 363 2 630 200 500 102 150

[cr] [dr] [dr] [dr]

Cash Receipts Journal of Glen Reagh Cr1

Date Rmt Rec


Disc’nt Allow’d

GST Payab

Sales

1 Apr 16 472 S Smith – Acc Receivable R2 1 584 1 606 (20) (2) 17 Apr 16 473 F Williams – Sales 1 133 103 1 030 25 Apr 16 474 E Cooper – Sales 1 628 148 1 480 30 Apr 16 475 F White – Acc Receivable R3 2 717 2 794 (70) (7)

7 062 4 400 (90) 242 2 510 100 101 560 201 400

[dr] [cr] [dr] [cr] [cr]

Cash Payments Journal of Glen Reagh CP1

Date Rmt Pmt


Disc’nt Rec’d

GST Receiv

Vehicle Expen

1 Apr 16 357 N Castle – Acc Payable P1 154 165 (10) (1) 2 Apr 16 358 K Kurri – Acc Payable P2 286 286

359 G Lendale – Acc Payable P4 231 253 (20) (2) 29 Apr 16 360 Charlestown BP – Veh Exp 396 36 360

1 067 704 (30) 33 360 100 200 410 102 540 [cr] [dr] [cr] [dr] [dr]




General Ledger of Glen Reagh Bank 100

1 Apr 16 Balance b/d 1 763 30 Apr 16 Payments CP1 1 067

30 Apr 16 Receipts CR1 7 062 Balance c/d 7 758

8 825 8 825


Accounts Receivable Control 101 1 Apr 16 Balance b/d 2 464 30 Apr 16 Bank [receipt] CR1 4 400

30 Apr 16 Sales SJ1 9 185 Balance c/d 7 249

11 649 11 649

1 May 16 Balance b/d 7 249 GST Receivable 102

1 Apr 16 Balance b/d 100 30 Apr 16 Accounts Payable Ctrl PJ1 363


Office Equipment 150 30 Apr 16 Accounts Payable Ctrl PJ1 2 630

Accounts Payable Control 200 30 Apr 16 Bank [payment] CP1 704 1 Apr 16 Balance b/d 704

Balance c/d 3 993 30 Apr 16 Purchase PJ1 3 993

4 697 4 697


GST Payable 201 1 Apr 16 Balance b/d 376

30 Apr 16 Account Receivable Ctrl SJ1 835


1 453

Capital 300 1 Apr 16 Balance b/d 1 712

Sales 400 1 Apr 16 Balance b/d 3 448

30 Apr 16 Account Receivable Ctrl SJ1 8 350


14 308

Discount Received 410 30 Apr 16 Bank [payment] CP1 30

continued



Question 5.27 continued General Ledger of Glen Reagh continued

Purchases 500 1 Apr 16 Balance b/d 1 913

30 Apr 16 Accounts Payable Ctrl PJ1 1 000 2 913

Vehicle Expense 540 30 Apr 16 Bank [payment] CP1 360

Discount Allowed 560 30 Apr 16 Bank [receipt] CR1 90

Accounts Receivable Ledger of Glen Reagh

C Noble 1

1 Apr 16 Balance 858 858 dr

15 Apr 16 Sales SJ1 1 903 2 761 dr

S Smith 2 1 Apr 16 Balance 1 606 1 606 dr

Sales SJ1 2 244 3 850 dr

Bank [receipt] CR1 1 584 2 266 dr


21 Apr 16 Sales SJ1 2 277 4 521 dr

28 Apr 16 Sales Return SJ1 33 4 488 dr

F White 3 10 Apr 16 Sales SJ1 2 794 2 794 dr

30 Apr 16 Bank [receipt] CR1 2 717 77 dr


Accounts Payable Ledger of Glen Reagh N Castle 1




19 Apr 16 Purchase PJ1 286 286 cr

K Kurri 2 1 Apr 16 Balance 286 286 cr

2 Apr 16 Bank [payment] CP1 286 0


N Lambton 3 10 Apr 16 Purchase PJ1 2 893 2 893 cr

G Lendale 4 1 Apr 16 Balance 253 253 cr

Purchase PJ1 198 451 cr

2 Apr 16 Bank [payment] CP1 231 220 cr

Discount Received & GST CP1 22 198 cr




Question 5.27 finalised Trial Balance of Glen Reagh

as at 30 April 2016

Bank 100 7 758 Accounts Receivable Control 101 7 249 GST Receivable 102 496 Office Equipment 150 2 630 Accounts Payable Control 200 3 993 GST Payable 201 1 453 Capital 300 1 712 Sales 400 14 308 Discount Received 410 30 Purchases 500 2 913 Vehicle Expense 540 360 Discount Allowed 560 90 21 496 21 496

Glen Reagh

Accounts Receivable Listing 30 April 2016

Glen Reagh Accounts Payable Listing

30 April 2016

C Noble 1 2 761 N Castle 1 286 S Smith 2 4 488 K Kurri 2 385 7 249 N Lambton 3 2 893

G Lendale 4 429 3 993

Question 5.28 1 CR 1 CR 1 CP 1 CP 2 CR 2 CR 5 CP

5 (PJ) 6 CP 7 CR 10 SJ 12 CP 13 (SJ) 15 CR

15 PJ 18 SJ 18 PJ 19 SJ 19 SJ 20 PJ 20 SJ

25 SJ 25 PJ 25 SJ 30 SJ

Sales Journal of B Wellington SJ 1 Date Inv



Receiv Sales GST

Payab

10 Aug 16 237 W Garbon – Sales R4 1 848 1 680 168 13 Aug 16 045 W Garbon – Sales Return R4 (143) (130) (13) 18 Aug 16 238 Y Anga – Sales R1 2 640 2 400 240 19 Aug 16 239 T Rangie – Sales R5 2 904 2 640 264

240 Bakers Swamp Co – Sales R2 1 716 1 560 156 20 Aug 16 241 Y Anga – Sales R1 1 991 1 810 181 25 Aug 16 242 E Ballimore – Sales R3 2 761 2 510 251

243 W Garbon – Sales R4 2 563 2 330 233 30 Aug 16 244 W Garbon – Sales R4 1 969 1 790 179

18 249 16 590 1 659 101 400 201




Purchases Journal of B Wellington PJ 1 Date Inv



Payable Purch-ases

GST Receiv

5 Aug 16 482 Brocklehurst – Purch Return P1 (22) (20) (2) 15 Aug 16 920 L Mookerawa – Purchases P5 385 350 35 18 Aug 16 657 Dripstone Co – Purchases P3 649 590 59 20 Aug 16 236 R Dandaloo – Purchases P2 451 410 41 25 Aug 16 048 E Elong – Purchases P4 1 254 1 140 114

2 717 2 470 247 200 500 102

Cash Receipts Journal of B Wellington CR 1

Date Rmt Rec


Disc’nt Allow’d

GST Payab

Sales

1 Aug 16 326 W Garbon – Acc Receivable R4 880 (30) (3) 327 T Rangie – Accs Receivable R5 1 529 682

2 Aug 16 328 Y Anga – Acc Receivable R1 561 329 Sales 2 431 170 1 700

7 Aug 16 330 E Ballimore – Acc Receivab R3 869 869 15 Aug 16 331 Sales 1 980 180 1 800

6 809 2 992 (30) 347 3 500 100 101 560 201 400

Cash Payments Journal of B Wellington CP 1

Date Rmt Pmt


Disc’nt Rec’d

GST Receiv

Purch-ases

1 Aug 16 719 R Dandaloo – Acc Payable P2 440 484 (40) (4) 720 E Elong – Accs Payable P4 374 385 (10) (1)

5 Aug 16 721 Montefiores – Purchase 528 48 480 6 Aug 16 722 L Mookerawa – Accs Payab P5 319 319

12 Aug 16 723 A Brocklehurst – Acc Payab P1 165 165 1 826 1 353 (50) 43 480

100 200 410 102 500

General Ledger of B Wellington Bank 100



11 052 11 052


Accounts Receivable Control 101 1 Aug 16 Balance b/d 2 992 31 Aug 16 Bank [receipt] CR1 2 992

31 Aug 16 Sales SJ1 18 249 Balance c/d 18 249

21 241 21 241

1 Sep 16 Balance b/d 18 249 continued



Question 5.28 continued General Ledger of B Wellington continued

GST Receivable 102 1 Aug 16 Balance b/d 140

31 Aug 16 Accounts Payable Ctrl PJ1 247


430

Accounts Payable Control 200 31 Aug 16 Bank [payment] CP1 1 353 1 Aug 16 Balance b/d 1 375

Balance c/d 2 739 31 Aug 16 Purchase PJ1 2 717

4 092 4 092


GST Payable 201 1 Aug 16 Balance b/d 300

31 Aug 16 Acc Receivable Control SJ1 1 659


2 306

Capital 300 1 Aug 16 Balance b/d 3 700

Sales 400 1 Aug 16 Balance 3 600

31 Aug 16 Acc Receivable Control SJ1 16 590


23 690

Discount Received 410 31 Aug 16 Bank [payment] CP1 50

Purchases 500 1 Aug 16 Balance b/d 1 600

31 Aug 16 Accounts Payable Ctrl PJ1 2 470 Bank [payment] CP1 480 4 550

Discount Allowed 560 31 Aug 16 Bank [receipt] CR1 30

Accounts Receivable Ledger of B Wellington

Y Anga 1 1 Aug 16 Balance 561 561 dr


18 Aug 16 Sales SJ1 2 640 2 640 dr

20 Aug 16 Sales SJ1 1 991 4 631 dr

Bakers Swamp Co 2 19 Aug 16 Sales SJ1 1 716 1 716 dr

continued




Accounts Receivable Ledger of B Wellington continued E Ballimore 3

1 Aug 16 Balance 869 869 dr


25 Aug 16 Sales SJ1 2 761 2 761 dr

W Garbon 4 1 Aug 16 Balance 880 880 dr



10 Aug 16 Sales SJ1 1 848 1 848 dr

13 Aug 16 Sale Return SJ1 143 1 705 dr

25 Aug 16 Sales SJ1 2 563 4 268 dr

30 Aug 16 Sales SJ1 1 969 6 237 dr

T Rangie 5 1 Aug 16 Balance 682 682 dr


19 Aug 16 Sales SJ1 2 904 2 904 dr

Accounts Payable Ledger of B Wellington A Brocklehurst 1

1 Aug 16 Balance 187 187 cr

5 Aug 16 Purchases Return PJ1 22 165 cr


R Dandaloo 2 1 Aug 16 Balance 484 484 cr


7 Aug 16 Discount Received & GST CP1 44 0

20 Aug 16 Purchases PJ1 451 451 cr

Dripstone Co 3 26 Aug 16 Purchases PJ1 649 649 cr

E Elong 4 1 Aug 16 Balance 385 385 cr




L Mookerawa 5 1 Aug 16 Balance 319 319 cr


15 Aug 16 Purchases PJ1 385 385 cr




Trial Balance of B Wellington as at 31 August 2016

Bank 100 9 226 Accounts Receivable Control 101 18 249 GST Receivable 102 430 Accounts Payable Control 200 2 739 GST Payable 201 2 306 Capital 300 3 700 Sales 400 23 690 Discount Received 410 50 Purchases 500 4 550 Discount Allowed 560 30 32 485 32 485

B Wellington

Accounts Receivable Listing as at 31 August 2016

B Wellington Accounts Payable Listing

as at 31 August 2016

Y Anga 1 4 631 R Dandaloo 2 451 Bakers Swamp Co 2 1 716 Dripstone Co 3 649 E Ballimore 3 2 761 E Elong 4 1 254 W Garbon 4 6 237 L Mookerawa 5 385

T Rangie 5 2 904 2 739

18 249

Question 5.29 1 CR 1 CR 1 CR 2 CP 2 CP 3 CP 7 SJ

7 CP 8 CR 8 CP 10 SJ 13 CR 16 SJ 17 CP

17 CP 18 SJ 18 PJ 19 (SJ) 20 (PJ) 20 SJ 23 CP

27 SJ 27 CR 28 SJ 28 PJ 28 CR 29 (SJ) 30 SJ

31 CR 31 CP

Sales Journal of Margaret O’Reilly SJ 1 Date Inv



Receiv Sales GST

Payab

7 Jul 16 580 J Goulburn – Sales R1 2 728 2 480 248 10 Jul 16 581 W Jasper – Sales R2 2 629 2 390 239 16 Jul 16 582 Ken More & Co – Sales R3 2 101 1 910 191 18 Jul 16 583 T Ralga – Sales R5 1 859 1 690 169 19 Jul 16 351 T Ralga – Sales Return R5 (33) (30) (3) 20 Jul 16 584 Pudman & Co – Sales R4 2 772 2 520 252 27 Jul 16 585 W Jasper – Sales R2 2 607 2 370 237 28 Jul 16 586 J Goulburn – Sales R1 2 739 2 490 249 29 Jul 16 352 J Goulburn – Sale Return R1 (55) (50) (5) 30 Jul 16 587 J Goulburn – Sales R1 1 958 1 780 178

19 305 17 550 1 755 101 400 201




Purchases Journal of Margaret O’Reilly PJ 1 Date Inv



Payable Stat &

Off Exp GST

Receiv Purch-ases

Insur-ance

18 Jul 16 298 Kialla Co – Stat & Off Exp P2 286 260 26 20 Jul 16 531 M Vale – Purchases Return P5 (44) (4) (40) 28 Jul 16 181 Grabben & Gullen – Insuran P1 1 628 148 1 480

1 870 260 170 (40) 1 480 200 540 103 500 541

Cash Receipts Journal of Margaret O’Reilly CR 1

Date Rmt Rec


Disc’nt Allow’d

GST Payab

Sales Rent Rec’d

1 Jul 16 944 J Goulburn – Acc Receivab R1 2 838 (80) (8)

945 T Ralga – Acc Receivable R5 2 761 (70) (7)

946 Sales 7 436 182 1 820

8 Jul 16 947 W Jasper – Acc Receivable R2 1 518 1 518

13 Jul 16 948 Sales 1 936 176 1 760

27 Jul 16 949 Sales 1 683 153 1 530

28 Jul 16 950 Taylors Flat – Rent Receive 550 50 500

31 Jul 16 951 Blanket Flat – Rent Receive 451 41 410 13 574 7 117 (150) 587 5 110 910

100 101 560 201 400 410

Cash Payments Journal of Margaret O’Reilly CP 1 Date Rmt


ases GST


Disc’nt Rec’d

Stat & Off Exp

GST Payab

2 Jul 16 518 Tirranaville Co-op – Purch 473 430 43

519 K Less – Acc Payable P3 1 155 (3) 1 188 (30)

3 Jul 16 520 C Rookwell – Acc Payable P4 1 133 1 133

7 Jul 16 521 T Strar – Stat & Office Exp 715 65 650

8 Jul 16 522 Cash – Purchases 1 243 1 130 113

17 Jul 16 523 Yarra Stationery -Stat & Off 847 77 770

524 ATO – GST 700 (500) 1 200

23 Jul 16 525 M Vale – Acc Payable P5 1 375 1 375

31 Jul 16 526 I Inveralochy – Purchases 1 419 1 290 129 9 060 2 850 (76) 3 696 (30) 1 420 1 200 100 500 103 200 411 540 201

General Ledger of Margaret O’Reilly

Bank 100 1 Jul 16 Balance b/d 4 166 31 Jul 16 Payments CP1 9 060


17 740 17 740





General Ledger of Margaret O’Reilly continued Accounts Receivable Control 101

1 Jul 16 Balance b/d 7 117 31 Jul 16 Bank [receipt] CR1 7 117


26 422 26 422


Inventory 102 1 Jul 16 Balance b/d 484


31 Jul 16 Acc’nts Payable Ctrl PJ1 170 Balance c/d 594

670 670

594

Accounts Payable Control 200 31 Jul 16 Bank [payment] CP1 3 696 1 Jul 16 Balance b/d 3 740

Balance c/d 1 914 31 Jul 16 Purchases PJ1 1 870

5 610 5 610



Balance c/d 2 342 31 Jul 16 Acc Receivable Ctrl SJ1 1 755


3 542 3 542

2 342


Sales 400 1 Jul 16 Balance 9 339

31 Jul 16 Acc Receivable Ctrl SJ1 17 550


31 999


Discount Received 411 31 Jul 16 Bank [payment] CP1 30

Purchases 500 1 Jul 16 Balance b/d 4 312 31 Jul 16 Acc’nts Payable Ctrl PJ1 40

31 Jul 16 Bank [payment] CP1 2 850 Balance c/d 7 122

7 162 7 162





General Ledger of Margaret O’Reilly continued Stationery & Office Expense 540

31 Jul 16 Acc’nts Payable Ctrl PJ1 260 Bank [payment] CP1 1 420 1 680

Insurance 541 31 Jul 16 Acc’nts Payable Ctrl PJ1 1 480


Accounts Receivable Ledger of Margaret O’Reilly J Goulburn 1

1 Jul 16 Balance 2 838 2 838 dr



7 Jul 16 Sales SJ1 2 728 2 728 dr

28 Jul 16 Sales SJ1 2 739 5 467 dr

29 Jul 16 Sales Return SJ1 55 5 412 dr

30 Jul 16 Sales SJ1 1 958 7 370 dr

W Jasper 2 1 Jul 16 Balance 1 518 1 518 dr

8 Jul 16 Bank [receipt] CR1 1 518 0

10 Jul 16 Sales SJ1 2 629 2 629 dr

27 Jul 16 Sales SJ1 2 607 5 236 dr

Ken More & Co 3 16 Jul 16 Sales SJ1 2 101 2 101 dr

Pudman & Co 4 20 Jul 16 Sales SJ1 2 772 2 772 dr

T Ralga 5 1 Jul 16 Balance b/d 2 761 2 761 dr



18 Jul 16 Sales SJ1 1 859 1 859 dr


Accounts Payable Ledger of Margaret O’Reilly

Grabben & Gullen 1 28 Jul 16 Purchases PJ1 1 628 1 628 cr

Kialla Co 2 18 Jul 16 Purchases PJ1 286 286 cr

continued



Question 5.29 finalised Accounts Payable Ledger of Margaret O’Reilly continued

K Less 3 1 Jul 16 Balance 1 188 1 188 cr

2 Jul 16 Bank [payment] CP1 1 155 33 cr


C Rookwell 4 1 Jul 16 Balance 1 133 1 133 cr

3 Jul 16 Bank [payment] CP1 1 133 0

M Vale 5 1 Jul 16 Balance 1 419 1 419 cr

20 Jul 16 Purchases Return PJ1 44 1 375 cr

23 Jul 16 Bank [payment] CP1 1 375 0

Trial Balance of Margaret O’Reilly

as at 31 July 2016

Bank 100 8 680 Accounts Receivable Control 101 19 305 Inventory 102 484 GST Receivable 103 594 Accounts Payable Control 200 1 914 GST Payable 201 2 342 Capital 300 2 300 Sales 400 31 999 Rent Received 410 910 Discount Received 411 30 Purchases 500 7 122 Stationery & Office Expense 540 1 680 Insurance 541 1 480 Discount Allowed 560 150 39 495 39 495 Margaret O’Reilly

Accounts Receivable Listing as at 31 July 2016

Margaret O’Reilly Accounts Payable Listing

as at 31 July 2016

J Goulburn 1 7 370 Grabben & Gullen 1 1 628 W Jasper 2 5 236 Kialla Co 2 286 Ken More & Co 3 2 101 1 914

Pudman & Co 4 2 772 T Ralga 5 1 826 19 305

Question 5.30

1 SJ 1 CR 1 CP 1 CP 4 PJ 8 (PJ) 9 (SJ)

10 CR 10 CP 15 SJ 15 PJ 17 PJ 18 CR 22 SJ

23 PJ 24 PJ 26 CP 28 PJ 30 CR




Sales Journal of Gloster Udy SJ1 Date Inv



Receiv Sales GST

Payab

1 Jul 16 428 R Joy – Sales R2 1 617 1 470 147 9 Jul 16 112 R Joy – Sales Return R2 (55) (50) (5)

15 Jul 16 429 P Gordon – Sales R1 2 343 2 130 213 22 Jul 16 430 R Joy – Sales R2 2 178 1 980 198

6 083 5 530 553 101

[dr] 400 [cr]

201 [cr]

Purchase Journal of Gloster Udy PJ1

Date Inv Adj


Ref Acc’nt Payab

Purch-ases

GST Receiv

4 Jul 16 471 K Pooka – Purchases P3 418 380 38 8 Jul 16 158 K Pooka – Purch Return P3 (44) (40) (4)

15 Jul 16 465 C Lomon – Purchases P2 209 190 19 17 Jul 16 593 F Jemalong – Purchases P1 462 420 42 23 Jul 16 478 K Pooka – Purchases P3 913 830 83 24 Jul 16 963 C Lomon – Purchases P2 473 430 43 28 Jul 16 475 F Jemalong – Purchases P1 396 360 36

2 827 2 570 257 200 500 102

[cr] [dr] [dr]

Cash Receipts Journal of Gloster Udy CR 1

Date Rmt Rec


Disc’nt Allow’d

GST Payab

Sales Rent Rec’d

1 Jul 16 345 R Joy – Acc Receivable R2 693 704 (10) (1)

10 Jul 16 346 P Gordon – Acc Receivable R1 847 847

18 Jul 16 347 Cash – Sales 2 508 228 2 280

30 Jul 16 348 Koles R E – Rent Received 407 37 370 4 455 1 551 (10) 264 2 280 370

100 101 560 201 400 410 [dr] [cr] [dr] [cr] [cr] [cr]

Cash Payments Journal of Gloster Udy CP1

Date Rmt Pmt


Disc’nt Rec’d

GST Receiv

Statio-nery

Purch-ases

1 Jul 16 890 C Lomon – Acc’nts Payable P2 693 693

891 K Pooka – Account Payable P3 781 803 (20) (2)

10 Jul 16 892 Cash – Stationery 187 17 170

26 Jul 16 893 R E Dullah – Purchases 880 80 800 2 541 1 496 (20) 95 170 800 100 200 411 102 540 500

[cr] [dr] [cr] [dr] [dr] [dr]




General Ledger of Gloster Udy Bank 100

1 Jul 16 Balance b/d 953 31 Jul 16 Payments CP1 2 541


5 408 5 408




7 634 7 634


GST Receivable 102 1 Jul 16 Balance b/d 105

31 Jul 16 Accounts Payable Ctrl PJ1 257


457

Accounts Payable Control 200 31 Jul 16 Bank [payment] CP1 1 496 1 Jul 16 Balance b/d 1 496

Balance c/d 2 827 31 Jul 16 Purchase Distrib’n PJ1 2 827

4 323 4 323


GST Payable 201 1 Jul 16 Balance b/d 291

31 Jul 16 Acc’nt Receivable Ctrl SJ1 553


1 108

Capital 300 1 Jul 16 Balance b/d 822



7 810


Discount Received 411 31 Jul 16 Bank [payment] CP1 20

continued




General Ledger of Gloster Udy continued Purchases 500

31 Jul 16 Accounts Payable Ctrl PJ1 2 570 Bank [payment] CP1 800 3 370

Stationery 540 31 Jul 16 Bank [payment] CP1 170


Accounts Receivable Ledger of Gloster Udy

P Gordon 1 1 Jul 16 Balance 847 847 dr

10 Jul 16 Bank [receipt] CR1 847 0

15 Jul 16 Sales SJ1 2 343 2 343 dr

R Joy 2 1 Jul 16 Balance 704 704 dr

Sales SJ1 1 617 2 321 dr




22 Jul 16 Sales SJ1 2 178 3 740 dr

Accounts Payable Ledger of Gloster Udy

F Jemalong 1 17 Jul 16 Purchases PJ1 462 462 cr

28 Jul 16 Purchases PJ1 396 858 cr

C Lomon 2 1 Jul 16 Balance 693 693 cr




K Pooka 3 1 Jul 16 Balance 803 803 cr




8 Jul 16 Purchases Return PJ1 44 374 cr

23 Jul 16 Purchases PJ1 913 1 287 cr




Trial Balance of Gloster Udy as at 31 July 2016

Bank 100 2 867 Accounts Receivable Control 101 6 083 GST Receivable 102 457 Accounts Payable Control 200 2 827 GST Payable 201 1 108 Capital 300 822 Sales 400 7 810 Rent Received 410 370 Discount Received 411 20 Purchases 500 3 370 Stationery 540 170 Discount Allowed 560 10 12 957 12 957

Gloster Udy

Accounts Receivable Listing 31 July 2016

Gloster Udy Accounts Payable Listing

31 July 2016

P Gordon 1 2 343 F Jemalong 1 858 R Joy 2 3 740 C Lomon 2 682 6 083 K Pooka 3 1 287

2 827

Question 5.31 1 CR 1 CP 2 CP 2 CP 3 SJ 3 PJ 5 CR

7 PJ 8 SJ 10 CR 12 SJ 15 SJ 20 SJ 22 CR

25 CR 27 SJ 28 PJ 28 CR

Sales Journal of William Dumbrell SJ1

Date Inv Adj


Ref Acc’nt Receiv

Sales GST Payab

3 Feb 16 539 N Hodges – Sales R2 1 881 1 710 171 8 Feb 16 540 R Creagh – Sales R1 2 904 2 640 264

12 Feb 16 541 I Pritchard – Sales R4 1 661 1 510 151 15 Feb 16 542 G Laming – Sales R3 2 915 2 650 265 20 Feb 16 543 I Pritchard – Sales R4 1 188 1 080 108 27 Feb 16 544 G Laming – Sales R3 2 101 1 910 191

12 650 11 500 1 150 101 400 201

[dr] [cr] [cr]




Purchases Journal of William Dumbrell PJ1 Date Inv



Payab Advert-

ising GST

Receiv Purch-ases

3 Feb 16 123 Khan Berra – Advertising P2 792 720 72 7 Feb 16 158 W Wyalong – Purchases P3 385 35 350

28 Feb 16 963 W Wyalong – Purchases P3 352 32 320 1 529 720 139 670 200 520 102 500

[cr] [dr] [dr] [dr]

Cash Receipts Journal of William Dumbrell CR 1

Date Rmt Rec


Disc’nt Allow’d

GST Payab

Sales Com Rec’d

1 Feb 16 789 R Creagh – Acc Receiv R1 968 990 (20) (2)

5 Feb 16 790 M Hextall – Sales 2 464 224 2 240

10 Feb 16 791 Cash – Sales 1 716 156 1 560

22 Feb 16 792 K Ninos – Comm Rec’d 286 26 260

25 Feb 16 793 S Cooper – Sales 1 925 175 1 750

28 Feb 16 794 N Hodges – Acc Receiv R2 1 837 1 881 (40) (4)

9 196 2 871 (60) 575 5 550 260 100 101 560 201 400 410

[dr] [cr] [dr] [cr] [cr] [cr]

Cash Payments Journal of William Dumbrell CP1 Date Rmt


ases GST


Disc Rec’d

1 Feb 16 301 B Atlow – Purchases 275 250 25 2 Feb 16 302 W Wyalong – Acc Payabl P3 803 (3) 836 (30)

303 E June – Acc Payable P1 429 (4) 473 (40) 1 507 250 18 1 309 (70) 100 500 102 200 411 [cr] [dr] [dr] [dr] [cr]

General Ledger of William Dumbrell

Bank 100 1 Feb 16 Balance b/d 5 587 28 Feb 16 Payments CP1 1 507


14 783 14 783


Accounts Receivable Control 101 1 Feb 16 Balance b/d 990 28 Feb 16 Bank [receipt] CR1 2 871

28 Feb 16 Sales SJ1 12 650 Balance c/d 10 769

13 640 13 640

1 Mar 16 Balance b/d 10 769 continued




General Ledger of William Dumbrell continued GST Receivable 102


28 Feb 16 Accounts Payable Ctrl PJ1 139


427

Accounts Payable Control 200 28 Feb 16 Bank [payment] CP1 1 309 1 Feb 16 Balance b/d 1 309

Balance c/d 1 529 28 Feb 16 Purchases PJ1 529

2 838 2 838


GST Payable 201 1 Feb 16 Balance b/d 785

28 Feb 16 Account Receivable Ctrl SJ1 1 150


2 510


Sales 400 1 Feb 16 Balance b/d 6 268

28 Feb 16 Account Receivable Ctrl SJ1 11 500


23 318

Commission Received 410 28 Feb 16 Bank [receipt] CR1 260


Purchases 500 1 Feb 16 Balance b/d 3 015

28 Feb 16 Accounts Payable Ctrl PJ1 670 Bank [payment] CP1 250

3 935

Advertising 520 28 Feb 16 Accounts Payable Ctrl PJ1 720




Question 5.31 continued Accounts Receivable Ledger of William Dumbrell

R Creagh 1 1 Feb 16 Balance 990 990 dr



8 Feb 16 Sales SJ1 2 904 2 904 dr

N Hodges 2 3 Feb 16 Sales SJ1 1 881 1 881 dr

28 Feb 16 Bank [receipt] CR1 1 837 44 dr


G Laming 3 15 Feb 16 Sales SJ1 2 915 2 915 dr

27 Feb 16 Sales SJ1 2 101 5 016 dr

I Pritchard 4 12 Feb 16 Sales SJ1 1 661 1 661 dr

20 Feb 16 Sales SJ1 1 188 2 849 dr

Accounts Payable Ledger of William Dumbrell E June 1

1 Feb 16 Balance 473 473 cr

2 Feb 16 Bank [payment] CP1 429 44 cr


Khan Berra & Co 2 3 Feb 16 Purchases PJ1 792 792 cr

W Wyalong 3 1 Feb 16 Balance 836 836 cr

2 Feb 16 Bank [payment] CP1 803 33 cr




Trial Balance of William Dumbrell as at 28 February 2016

Bank 100 13 276 Accounts Receivable Control 101 10 769 GST Receivable 102 427 Accounts Payable Control 200 1 529 GST Payable 201 2 510 Capital 300 1 500 Sales 400 23 318 Commission Received 410 260 Discount Received 411 70 Purchases 500 3 935 Advertising 520 720 Discount Allowed 560 60 29 187 29 187




William Dumbrell Accounts Receivable Listing

28 February 2016

William Dumbrell Accounts Payable Listing

28 February 2016

R Creagh 1 2 904 Khan Berra & Co 2 792 G Laming 3 5 016 W Wyalong 3 737

I Pritchard 4 2 849 1 529

10 769

Question 5.32 1 SJ 1 CR 1 CR 1 CR 1 PJ 1 CP 1 CP

2 CR 2 CP 2 CP 7 PJ 10 SJ 10 PJ 12 CP

13 PJ 15 SJ 15 SJ 15 PJ 16 SJ 16 PJ 17 CR

18 SJ 19 (PJ) 19 PJ 20 (SJ) 20 PJ 20 CP 21 CR

21 SJ 21 PJ 25 CR 25 PJ 25 PJ 26 (PJ) 28 (SJ)

28 SJ 29 CP 31 CR

Sales Journal of T W Bucketts SJ 1

Date Inv Adj


Ref Account Receiv

Sales GST Payab

1 May 16 507 T Stroud – Sales R7 1 001 910 91

10 May 16 508 S Stratford – Sales R6 1 782 1 620 162

15 May 16 509 Dale Forbes – Sales R2 1 441 1 310 131

510 C Limeburner – Sales R4 2 332 2 120 212

16 May 16 511 G Gloucester – Sales R3 1 969 1 790 179

18 May 16 512 B Booral – Sales R1 3 003 2 730 273

20 May 16 125 B Booral – Sales Return R1 (154) (140) (14)

21 May 16 513 T Stroud – Sales R7 1 837 1 670 167

28 May 16 126 T Stroud – Sales Return R7 (77) (70) (7)

514 H Pacific – Sales R5 3 542 3 220 322 16 676 15 160 1 516

101 400 201




Purchases Journal of T W Bucketts PJ 1 Date Inv



Payable Purch-ases

GST Receiv

Comp-uter

Station-ery

Insur-ance

1 May 16 345 R Wards – Purchases P8 341 310 31

7 May 16 678 K Krambach – Purchases P5 528 480 48

10 May 16 901 B Kundibakh – Computer P6 3 883 353 3 530

13 May 16 234 Burrell Stationery – Stat P1 671 61 610

15 May 16 567 R Wards – Purchases P8 693 630 63

16 May 16 890 C Craven – Purchases P3 594 540 54

19 May 16 123 C Craven – Purch Return P3 (66) (60) (6)

456 L Telegherry – Purchases P7 1 716 1 560 156

20 May 16 789 L Clareval – Purchases P2 1 507 1 370 137

21 May 16 012 K Krambach – Purchases P5 924 840 84

25 May 16 345 C Craven – Purchases P3 858 780 78

678 R Kimbriki – Insurance P4 1 012 92 920

26 May 16 910 C Craven – Purch Return P3 (88) (80) (8)

12 573 6 370 1 143 3 530 610 920 200 500 102 150 540 541

Cash Receipts Journal of T W Bucketts CR 1 Date Rmt



GST Payab

Sales

1 May 16 449 C Limeburner – Acc Receiv R4 1 793 (40) (4) 450 T Stroud – Acc Receivable R7 1 397 451 B Booral – Acc Receivable R1 5 170 2 079 (50) (5)

2 May 16 452 H Pacific – Acc Receivable R5 1 320 1 320 17 May 16 453 Sales 1 177 107 1 070 21 May 16 454 Sales 1 760 160 1 600 25 May 16 455 Sales 1 122 102 1 020 31 May 16 456 S Stratford – Acc Receivable R6 1 738 1 782 (40) (4)

12 287 8 371 (130) 356 3 690 100 101 560 201 400

Cash Payments Journal of T W Bucketts CP 1

Date Rmt Pmt


Disc’nt Rec’d

GST Receiv

Station-ery

Vehicle Exp

1 May 16 815 C Craven – Acc Payable P3 407 407

816 L Telegherry – Acc Payable P7 374 385 (10) (1)

2 May 16 817 L Clareval – Acc Payable P2 649 671 (20) (2)

818 R Wards – Acc Payable P8 583 583

12 May 16 819 Cash – Stationery 341 31 310

20 May 16 820 T Tinonee – Stationery 253 23 230

29 May 16 821 Purfleet Garage – Vehicle Exp 737 67 670

3 344 2 046 (30) 118 540 670 100 200 410 102 540 542




General Ledger of T W Bucketts Bank 100

1 May 16 Balance b/d 9 457 31 May 16 Payments CP1 3 344


21 744 21 744


Accounts Receivable Control 101 1 May 16 Balance b/d 6 589 31 May 16 Bank [receipt] CR1 8 371


23 265 23 265


GST Receivable 102 1 May 16 Balance b/d 300

31 May 16 Accounts Payable Ctrl PJ1 1 143


1 561

Computer 150 31 May 16 Accounts Payable Ctrl PJ1 3 530

Accounts Payable Control 200 31 May 16 Bank [payment] CP1 2 046 1 May 16 Balance b/d 2 046


14 619 14 619


GST Payable 201 1 May 16 Balance b/d 1 200

31 May 16 Acc’nt Receivable Ctrl SJ1 1 516


3 072

Capital 300


Sales 400 1 May 16 Balance 11 800

31 May 16 Acc’nt Receivable Ctrl SJ1 15 160


30 650

Discount Received 410 31 May 16 Bank [payment] CP1 30

Purchases 500 1 May 16 Balance b/d 2 700


continued



Question 5.32 continued General Ledger of T W Bucketts continued

Stationery 540 31 May 16 Accounts Payable Ctrl PJ1 610


Insurance 541 31 May 16 Accounts Payable Ctrl PJ1 920

Vehicle Expense 542 31 May 16 Bank [payment] CP1 670


Accounts Receivable Ledger of T W Bucketts B Booral 1

1 May 16 Balance 2 079 2 079 dr



18 May 16 Sales SJ1 3 003 3 003 dr


Dale Forbes 2

15 May 16 Sales SJ1 1 441 1 441 dr

G Gloucester 3

16 May 16 Sales SJ1 1 969 1 969 dr

C Limeburner 4

1 May 16 Balance b/d 1 793 1 793 dr



15 May 16 Sales SJ1 2 332 2 332 dr

H Pacific 5



28 May 16 Sales SJ1 3 542 3 542 dr

S Stratford 6

10 May 16 Sales SJ1 1 782 1 782 dr



T Stroud 7


Sales SJ1 1 001 2 398 dr

Bank [receipt] CR1 1 397 1 001 dr

21 May 16 Sales SJ1 1 837 2 838 dr




Question 5.32 continued Accounts Payable Ledger of T W Bucketts Burrell Stationery 1

13 May 16 Purchases PJ1 671 671 cr

L Clareval 2


2 May 16 Bank [payment] CP1 649 22 cr


20 May 16 Purchases PJ1 1 507 1 507 cr

C Craven 3 1 May 16 Balance 407 407 cr



19 May 16 Purchases Return PJ1 66 528 cr

25 May 16 Purchases PJ1 858 1 386 cr

26 May 16 Purchases Return PJ1 88 1 298 cr

R Kimbriki 4


K Krambach 5



B Kundibakh 6


L Telegherry 7





R Wards 8


Purchases PJ1 341 924 cr

2 May 16 Bank [payment] CP1 583 341 cr





Trial Balance of T W Bucketts as at 31 May 2016

Bank 100 18 400 Accounts Receivable Control 101 14 894 GST Receivable 102 1 561 Computer 150 3 530 Accounts Payable Control 200 12 573 GST Payable 201 3 072 Capital 300 4 000 Sales 400 30 650 Discount Received 410 30 Purchases 500 9 070 Stationery 540 1 150 Insurance 541 920 Vehicle Expense 542 670 Discount Allowed 560 130 50 325 50 325

T W Bucketts

Accounts Receivable Listing as at 31 May 2016

T W Bucketts Accounts Payable Listing

as at 31 May 2016

B Booral 1 2 849 Burrell Stationery 1 671 Dale Forbes 2 1 441 L Clareval 2 1 507 G Gloucester 3 1 969 C Craven 3 1 298 C Limeburner 4 2 332 R Kimbriki 4 1 012 H Pacific 5 3 542 K Krambach 5 1 452 T Stroud 7 2 761 B Kundibakh 6 3 883

14 894 L Telegherry 7 1 716

R Wards 8 1 034 12 573

Question 5.33 1 CP 1 CP 1 SJ 1 CR 1 CR 2 CP 2 CP

3 PJ 3 SJ 4 PJ 5 PJ 5 CR 7 PJ 8 (PJ)

8 SJ 9 (SJ) 10 CP 10 CR 10 CR 12 SJ 15 PJ

15 SJ 15 SJ 17 PJ 17 PJ 18 PJ 18 CR 18 CP

20 SJ 21 PJ 22 SJ 22 CR 24 PJ 25 CR 26 CP

27 SJ 28 PJ 28 PJ 28 SJ 30 CR 30 CR 31 (SJ)




Sales Journal of Tony Lowman SJ 1 Date Inv



Receiv Sales GST

Payab

1 Oct 16 261 F Rainbow – Sales R6 4 092 3 720 372 3 Oct 16 262 K Kew – Sales R4 4 719 4 290 429 8 Oct 16 263 R Coolongolook – Sales R2 2 959 2 690 269 9 Oct 16 123 F Rainbow – Sales Return R6 (55) (50) (5)

12 Oct 16 264 K Empsey – Sales R3 2 882 2 620 262 15 Oct 16 265 A Nabiac – Sales R5 3 366 3 060 306

266 F Clybucca – Sales R1 3 498 3 180 318 20 Oct 16 267 K Empsey – Sales R3 4 092 3 720 372 22 Oct 16 268 F Rainbow – Sales R6 4 224 3 840 384 27 Oct 16 269 F Clybucca – Sales R1 4 345 3 950 395 28 Oct 16 270 R Coolongolook – Sales R2 2 112 1 920 192 31 Oct 16 124 R Coolongolook – Sales Ret’n R2 (143) (130) (13)

36 091 32 810 3 281 101 400 201

Purchases Journal of Tony Lowman PJ 1 Date Inv



Payable Advert-

ising GST

Receiv Purch-ases

Office Repair

3 Oct 16 369 C Coopernook – Advertisin P3 968 880 88 4 Oct 16 874 Bulah Delah – Purchases P2 1 771 161 1 610 5 Oct 16 125 Waugh & Hope – Off Repair P8 2 992 272 2 720 7 Oct 16 896 Karuah & Co – Purchases P4 3 443 313 3 130 8 Oct 16 321 Bulah Delah – Purch Return P2 (132) (12) (120)

15 Oct 16 456 W Wooton – Purchases P9 1 100 100 1 000 17 Oct 16 987 M Macksville – Purchases P5 2 464 224 2 240

890 H Nambucca – Purchases P6 1 276 116 1 160 18 Oct 16 123 Bulah Delah – Purchases P2 2 057 187 1 870 21 Oct 16 446 U Runga – Purchases P7 803 73 730 24 Oct 16 789 W Wooton – Purchases P9 1 265 115 1 150 28 Oct 16 021 Karuah & Co – Purchases P4 1 485 135 1 350

365 H Nambucca – Purchases P6 1 529 139 1 390 21 021 880 1 911 15 510 2 720 200 520 102 500 540




Cash Receipts Journal of Tony Lowman CR 1 Date Rmt



GST Payab

Sales Comm Rec’d

Rent Rec’d

1 Oct 16 645 R Coolongolook – Acc Rec R2 2 288 (50) (5) 646 F Rainbow – Acc Receivab R6 3 696 1 496 (30) (3)

5 Oct 16 647 Sales 4 488 408 4 080 10 Oct 16 648 A Nabiac – Acc Receivable R5 2 189

649 Sales 4 356 197 1 970 18 Oct 16 650 Sales 2 255 205 2 050 22 Oct 16 651 W Raleigh – Comm Rec’d 737 67 670 25 Oct 16 652 Sales 1 650 150 1 500 30 Oct 16 653 Wool & Goolga – Rent Rec 65 650

654 K Kew – Acc Receivable R4 5 313 4 719 (110) (11) 22 495 10 692 (190) 1 073 9 600 670 650 100 101 560 201 400 410 411

Cash Payments Journal of Tony Lowman CP 1

Date Rmt Pmt


GST Receiv

Acc’nt Payab

Disc’ntRec’d

Statio-nery

GST Payab

1 Oct 16 157 H Cundletown – Purchases 1 628 1 480 148 158 W Wooton – Acc Payable P9 1 474 1 474

2 Oct 16 159 Karuah & Co – Acc Payab P4 1 320 (4) 1 364 (40) 160 Bulah Delah – Acc Payable P2 902 (2) 924 (20)

10 Oct 16 161 Cash – Stationery 231 21 210 18 Oct 16 162 ATO – GST 900 (1 000) 1 900 26 Oct 16 163 A Boambee – Purchases 1 694 1 540 154

8 149 3 020 (683) 3 762 (60) 210 1 900 100 500 102 200 412 541 201

General Ledger of Tony Lowman Bank 100

1 Oct 16 Balance b/d 3 480 31 Oct 16 Payments CP1 8 149

31 Oct 16 Receipts CR1 22 495 Balance c/d 17 826

25 975 25 975

1 Nov 16 Balance b/d 17 826 Accounts Receivable Control 101

1 Oct 16 Balance b/d 6 501 31 Oct 16 Bank [receipt] CR1 10 692

31 Oct 16 Sales SJ1 36 091 Balance c/d 31 900

42 592 42 592


GST Receivable 102 1 Oct 16 Balance b/d 1 000 31 Oct 16 Bank [payment] CP1 683

31 Oct 16 Accounts Payable Ctrl PJ1 1 911 Balance c/d 2 228

2 911 2 911

1 Nov 16 Balance b/d 2 228 continued




General Ledger of Tony Lowman continued Accounts Payable Control 200

31 Oct 16 Bank [payment] CP1 3 762 1 Oct 16 Balance b/d 4 081

Balance c/d 21 340 31 Oct 16 Purchases PJ1 21 021

25 102 25 102


GST Payable 201 31 Oct 16 Bank [payment] CP1 1 900 1 Oct 16 Balance b/d 1 900

Balance c/d 4 354 31 Oct 16 Acc Receivable Ctrl SJ1 3 281


6 254 6 254


Capital 300 1 Oct 16 Balance b/d 5 000

Sales 400 31 Oct 16 Acc Receivable Ctrl SJ1 32 810


42 410

Commission Received 410 31 Oct 16 Bank [receipt] CR1 670

Rent Received 411 31 Oct 16 Bank [receipt] CR1 650

Discount Received 412 31 Oct 16 Bank [payment] CP1 60

Purchases 500 31 Oct 16 Accounts Payable Ctrl PJ1 15 510 Bank [payment] CP1 3 020 18 530

Advertising 520 31 Oct 16 Accounts Payable Ctrl PJ1 880

Office Repair 540 31 Oct 16 Accounts Payable Ctrl PJ1 2 720

Stationery 541 31 Oct 16 Bank [payment] CP1 210

Discount Allowed 560 31 Oct 16 Bank [receipt] CR1 190




Accounts Receivable Ledger of Tony Lowman F Clybucca 1

15 Oct 16 Sales SJ1 3 498 3 498 dr

27 Oct 16 Sales Return SJ1 4 345 7 843 dr

R Coolongolook 2 1 Oct 16 Balance 2 288 2 288 dr



8 Oct 16 Sales SJ1 2 959 2 959 dr

28 Oct 16 Sales SJ1 2 112 5 071 dr

31 Oct 16 Sales Return SJ1 143 4 928 dr

K Empsey 3 12 Oct 16 Sales SJ1 2 882 2 882 dr

20 Oct 16 Sales SJ1 4 092 6 974 dr

K Kew 4 3 Oct 16 Sales SJ1 4 719 4 719 dr

30 Oct 16 Bank [receipt] CR1 4 598 121 dr


A Nabiac 5 1 Oct 16 Balance b/d 2 189 2 189 dr

10 Oct 16 Bank [receipt] CR1 2 189 0

15 Oct 16 Sales SJ1 3 366 3 366 dr

F Rainbow 6 1 Oct 16 Balance 1 496 1 496 dr



Sales SJ1 4 092 4 092 dr

9 Oct 16 Sales Return SJ1 55 4 037 dr

22 Oct 16 Sales SJ1 4 224 8 261 dr

B Sapphire 7 1 Oct 16 Balance b/d 528 528 dr

Accounts Payable Ledger of Tony Lowman

H Arrawarra 1 1 Oct 16 Balance 319 319 cr

Bulah Delah 2 1 Oct 16 Balance 924 924 cr

2 Oct 16 Bank [payment] CP1 902 22 cr



8 Oct 16 Purchases Return PJ1 132 1 639 cr


continued




Accounts Payable Ledger of Tony Lowman continued C Coopernook 3

3 Oct 16 Purchases PJ1 968 968 cr

Karuah & Co 4 1 Oct 16 Balance 1 364 1 364 cr

2 Oct 16 Bank [payment] CP1 1 320 44 cr




M Macksville 5


H Nambucca 6



U Runga 7

21 Oct 16 Purchases PJ1 803 803 cr

Waugh & Hope 8


W Wooton 9

1 Oct 16 Balance 1 474 1 474 cr




Trial Balance of Tony Lowman as at 31 October 2016

Bank TS 17 826 Accounts Receivable Control 101 31 900 GST Receivable 102 2 228 Accounts Payable Control 200 21 340 GST Payable 201 4 354 Capital 300 5 000 Sales 400 42 410 Commission Received 410 670 Rent Received 411 650 Discount Received 412 60 Purchases 500 18 530 Advertising 520 880 Office Repair 540 2 720 Stationery 541 210 Discount Allowed 560 190 74 484 74 484




Tony Lowman Accounts Receivable Listing

as at 31 October 2016

Tony Lowman Accounts Payable Listing


F Clybucca 1 7 843 H Arrawarra 1 319 R Coolongolook 2 4 928 Bulah Delah 2 3 696 K Empsey 3 6 974 C Coopernook 3 968 A Nabiac 5 3 366 Karuah & Co 4 4 928 F Rainbow 6 8 261 M Macksville 5 2 464 B Sapphire 7 528 H Nambucca 6 2 805 31 900 U Runga 7 803

Waugh & Hope 8 2 992 W Wooton 9 2 365 21 340

Question 5.34 Reconciliation of Suzan Koleda Statement for June 2016

Balance as per suppliers statement 6 695.04 less Tax invoices not yet processed # 016 660.00 # 477 638.00 1 298.00

5 397.04 add Back adjustment credit note not yet processed # 058 66.00 5 463.04 less Discount not yet allowed on rec #458 7.04 Balance as per Accounts Payable Ledger 5 456.00 less 2% Discount on $5456.00 109.12 Value of remittance to be drawn 5 346.88

Adjustment to Accounts Payable Ledger

Balance as per Accounts Payable Ledger 5 775.00 less Error in posting, should be V Kolesnikov 15 June tax invoice #813

297.00

5 478.00 20 June tax invoice #333 shown as 935.00 20 June tax invoice #333 should be 913.00 Decrease in Accounts Payable Ledger 22.00 Amended balance 5 456.00



Question 5.35 REMITTANCE ADVICE OF

A Beattie 412 Angle Lane 28 February 2016 Gooloogong 2805 H White

23 Coramba Road Coffs Harbour 2450

Customer 615


22 Dec 15 Purchases tax inv 240 √ 950.00 950.00

23 Dec 15 Purchases tax inv 245 √ 50.00 1 000.00

8 Jan 16 Purchases tax inv 256 √ 451.00 1 451.00

15 Jan 16 Purchases Return adj c/n 79 √ 66.00 1 385.00



24 Feb 16 Bank chq 26789 2 276.00 0.00

Extract Accounts Receivable Listing from the Accounts Receivable Ledger of H White

A Beattie 54 account

Ageing Date Inv/(Cn) Amount Cumulative Current 30 days 60 days 90+ days

20 Dec 15 240 950.00 950.00 √ 950.00

21 Dec 15 245 50.00 1 000.00 √ 50.00

3 Jan 16 256 451.00 1 451.00 √ 451.00

8 Jan 16 273 110.00 1 561.00 110.00

10 Jan 16 287 264.00 1 825.00 √ 264.00

15 Jan 16 (79) (66.00) 1 759.00 √ (66.00)

21 Jan 16 351 627.00 2 386.00 √ 627.00

27 Jan 16 (86) (88.00) 2 298.00 (88.00)

29 Jan 16 439 418.00 2 716.00 418.00

4 Feb 16 450 774.00 3 490.00 774.00

15 Feb 16 541 149.00 3 639.00 149.00

26 Feb 16 589 133.00 3 772.00 133.00

27 Feb 16 613 660.00 4 432.00 660.00 1 716.00 1 716.00 1 000.00

Overdue tax invoices are 8 January #273 $110.00, 27 January #(86) ($88.00) and 29 January #439 $418.00. The credit officer should briefly clarify what invoice is related to the credit note on 27 January #86 $88. It cannot relate to the outstanding invoice on the 29 January. If the credit note does not relate to the 8 January tax invoice #273 $110.00, then why was it not paid when it was due for payment? It needs to be confirmed that payment for the sale on 29 January is coming in next month’s remittance advice. The accounts payable officer of A Beattie should be contacted that day to confirm that the outstanding invoices and credit note are being processed for the monthly remittance at the end of March. Details of day, time, name and brief details of the conversation (or similar comments) must be written down on the accounts receivable listing sheet. Other logical scenarios should be considered as an acceptable answer.



Question 5.36 REMITTANCE ADVICE OF

Nic Matthew Quarygoe Road 31 July 2016 Ballina 2478 Elizabeth Webb

41 James Street Llandilo 2747

Customer 295


19 May 16 Purchases tax inv 129 √ 352.00 352.00

2 Jun 16 Purchases tax inv 147 √ 781.00 1 133.00








27 Jul 16 Bank chq 29522 6 127.00 0.00


from the Accounts Receivable Ledger of Elizabeth Webb

Nic Matthew 522 account

Ageing Date Inv/(Cn) Amount Cumulative Current 30 days 60 days 90 + days

C 016 660.00 660.00 660.00

15 May

129 352.00 1 012.00 √ 352.00

29 May

147 781.00 1 793.00 √ 781.00

7 Jun 16 186 583.00 2 376.00 √ 583.00

9 Jun 16 209 924.00 3 300.00 √ 924.00

14 Jun 16 231 297.00 3 597.00 √ 297.00

15 Jun 16 281 726.00 4 323.00 √ 726.00

18 Jun 16 333 935.00 5 258.00 √ 935.00

20 Jun 16 400 847.00 6 155.00 √ 847.00

24 Jun 16 477 638.00 6 743.00 638.00

27 Jun 16 519 682.00 7 425.00 √ 682.00

28 Jun 16 (57) (66.00) 7 359.00 (66.00)

1 Jul 16 587 774.00 8 133.00 774.00

14 Jul 16 623 660.00 8 793.00 660.00

20 Jul 16 671 525.00 9 318.00 525.00

27 Jul 16 718 211.00 9 529.00 211.00 2 170.00 5 566.00 1 133.00 660.00



Question 5.36 finalised Overdue tax invoices are 26 April #016 $660.00, 24 June #477 $638.00 and credit note 28 June #57 $66.00. The credit officer should be aware of the history of why the tax invoice on 26 April 2010 #174 $660.00 is so overdue, or may need to be reacquainted with the historical facts that have been written in previous month’s accounts receivable listings. One reason or scenario could be that the credit officer has found out – or more likely is aware – that credit note 28 June #57 $66.00 relates to the $660.00 from April. Another scenario could be that any undertakings that have been made by the credit officer and or any other employee, such as a decision by the sales manager or despatch manager, need to be checked; and confirm that the undertakings have been completed and communicated to the customer. If the business has done all that is prepared to do, then face-to-face discussion between senior people from both organisations may be necessary to resolve the matter so that payment is received. The final option would be to stop giving credit to Nic Matthew and deal with him as a ‘cash with order’ customer until payment is received, which may be $660.00 or some agreed lesser amount. A brief check by the credit officer regarding tax invoice #477 $638.00 should also be made internally before contacting the customer. The customer should be contacted very promptly to ensure that all has been communicated regarding the issue of the credit note for $66.00 for the 90+ days overdue amount $660.00, and to gain an assurance that it will be included as part of the remittance for the end of August. Mention should also be made of the now-outstanding tax invoice #477 $638.00 and any possible queries noted and followed up by both parties to ensure inclusion in the next remittance. Some other scenarios may also be acceptable as long as they are plausible from the small amount of information known.



Chapter 6 Journals and ledgers for special transactions Question 6.1

General Journal of G Attard GJ 1 1 Dec 16 Bank 5 000 Inventory 4 000 Motor Vehicle 8 000 Office Furniture and Equipment 1 000 Loan form B Abigail 4 000 Capital 14 000 Assets and liability on commencement

Question 6.2

General Journal of M Gonzales GJ 1 1 Nov 16 Bank 2 000 Inventory 1 500 Accounts Receivable Control 1 199 – P Chain 451 – G Goran 748 GST Receivable 4 150 Machinery and Equipment 25 000 Motor Vehicle 15 000 Accounts Payable Control 583 – A Losurdo 330 – L Lukic 253 Capital 48 266 Assets and liability on commencement

Question 6.3

General Journal of T Abella GJ 1 1 Feb 16 Bank 50 000

Loan from Strate Bank 20 000

Capital 30 000

Asset and liability on commencement

3 Feb 16 Premises 25 000

Machinery 9 000 Inventory 4 000 Goodwill 10 000 T Longman 48 000 On-going business purchased from T Longman



Question 6.4 General Journal of S Aravena GJ 1

1 Jan 16 Bank 5 000

Computer 10 000


Capital 16 000

Assets on commencement

31 May 16 Bank 15 000

Capital 15 000 Additional asset brought into business

Question 6.5 General Journal of M Biel GJ 1

1 Jul 16 Bank 1 000

Earth Moving Equipment 36 000

Capital 37 000

Assets on commencement

1 Aug 16 Bank 10 000

Earth Moving Equipment 50 000


Capital 65 000

Additional assets brought into business

1 Sep 16 Bank 25 000 Loan from Bank 25 000 Loan from bank

Question 6.6 Extract Cash Payments Journal of D Copland CP 1

Bank Draw-ings

1 May 16 321 Cash – Drawings 355 355

Question 6.7 Extract Cash Payments Journal of P Chaing CP 1

Bank Draw-ings

14 Jul 16 319 ABC Concert – Drawings 160 160

Question 6.8 General Journal of D Bonita GJ ..

Drawings 385 Inventory 350 GST Receivable 35 Owner took goods for private use; perpetual inventory applies

Drawings 385 Purchases 350 GST Receivable 35 Owner took goods for private use; periodic inventory applies



Question 6.9

General Journal of F Stool GJ .. 25 Jun 16 Drawings 825

Inventory 750

GST Receivable 75

Owner took goods for private use; perpetual inventory applies

25 Jun 16 Drawings 825

Purchases 750

GST Receivable 75 Owner took goods for private use; periodic inventory applies

(Cash payments journal is the same whichever inventory system is used.)

Extract Cash Payments Journal of F Stool CP .. Bank Draw-

ings

29 Jun 16 Cash – Drawings 1 000 1 000

Question 6.10

Extract Cash Payments Journal of S Matthews CP 1 Bank Office

Furnit GST

Receiv

R Badger – Office Furn Equip 3 850 3 500 350

Question 6.11

Extract Cash Receipts Journal of R Pessotto CR 1 Bank Motor

Vehicle GST

Payab

J Aitkens – Motor Vehicle 5 720 5 200 520

Question 6.12

General Journal of J Leeson GJ 1 15 Apr 16 Bank 5 000

Computer 3 500 GST Receivable 350 Capital 8 850 Assets on commencement

Extract Cash Receipts Journal of J Leeson CR 1

Bank Capital Loan – U Terry

Comp-uter

GST Payab

20 Apr 16 001 Cash Leeson – Capital 15 000

002 Loan from Uncle Terry 27 000 12 000

23 Apr 16 013 Computer 3 850 3 500 350

Extract Purchase Journal of J Leeson PJ 1 Acc’nt

Payable Comp-

uter GST

Receiv

23 Apr 16 852 Search Light Computers 11 000 10 000 1 000




Extract Cash Payments Journal of J Leeson CP 1 Bank Draw-

ings Acc’nt Payab

Disc’nt Rec’d

GST Receiv

29 Apr 16 150 Cash – Drawings 800 800 30 Apr 16 151 Search Light – A/c Payable 10 725 11 000 (250) (25)

Question 6.13

General Journal of C Craft GJ 1 Accounts Receivable Control 351 – W Melinda 90 – K Le 261 Interest Revenue 351 Interest revenue on overdue accounts receivable

Question 6.14

General Journal of S Sing GJ 1 Interest Expense 467 Accounts Payable Control 467 – S Arnautovic 467 Interest expense on 4 month overdue account payable

Question 6.15

General Journal of C Kevin GJ 1 Accounts Receivable Control 2 850 – C Bolenski 300 – W Ling 1150 – R Fleming 1400 Interest Revenue 2 850 Interest revenue on overdue accounts receivable

Interest Expense 362 Accounts Payable Control 362 – B Christoph 92 – J Burgess 270 Interest expense on overdue accounts payable


Extract Cash Receipts Journal of S Alderson CR 1 Bank Sales GST

Payab

19 Jun 16 039 Sales 220 200 20 24 Jun 16 063 Sales – Friscioni chq repres 220 200 20

[dr] [cr] [cr]

Extract Cash Payments Journal of S Alderson CP 1

Bank Purch-ases

GST Receiv

Sales GST Payab

23 Jun 16 B/S Sale – Friscioni chq dishonour 220 200 20 B/S = bank statement [cr] [dr] [dr]




Extract Cash Receipts Journal of S Alderson CR 1 Bank Sales GST

Payab CoGS Inven-

tory

19 Jun 16 xx Sales 220 200 20 120 120

24 Jun 16 xx Sales – Friscioni chq repres 220 200 20 [dr] [cr] [cr] [dr] [cr]

Extract Cash Payments Journal of S Alderson CP 1

Bank Inven-tory

GST Receiv

Accnt Payab

Sales GST Payab

23 Jun 16 B/S Sales – Friscioni chq dishon 220 200 20 ‘B/S’ = bank statement [cr] [dr] [dr]


Extract Cash Receipts Journal of P Kulevska CR 1 Bank Sales GST

Payab

5 Oct 16 133 Sales 270 27 134 Sales 792 450 45

11 Oct 16 163 Sales – Bruzzano chq repres 495 495 [dr] [cr] [cr]

Extract Cash Payments Journal of P Kulevska CP 1

Bank Purch-ases

GST Receiv

Sales GST Payab

8 Oct 16 B/S Sales – Bruzzano chq dishon 495 450 45 B/S = bank statement [cr] [dr] [dr]


Extract Cash Receipts Journal of P Kulevska CR 1 Bank Sales GST

Payab CoGS Inven-

tory 5 Oct 16 133 Sales 270 27 160 160

134 Sales 792 450 45 300 300 11 Oct 16 163 Sales – Bruzanno chq repres 495 450 45

[dr] [cr] [cr] [dr] [cr]

Extract Cash Payments Journal of P Kulevska CP 1 Bank Inven-

tory GST

Receiv Accnt Payab

Sales GST Payab

8 Oct 16 B/S Sales – Bruzzano chq dishon 495 450 45 ‘B/S’ = bank statement [cr] [dr] [dr]


Extract Sales Journal of R Angara SJ 1 Acc’nt

Receiv Sales GST

Payab

2 Oct 16 123 P Boogers – Sales 2 772 2 520 252 [dr] [cr] [cr]




Extract Cash Receipts Journal of R Angara CR 1 Bank Acc’nt

Receiv

10 Oct 16 894 P Boogers – A/c Receivable 2 772 2 772 [dr] [cr]

Extract Cash Payments Journal of R Angara CP 1

Bank Acc’nt Receiv

15 Oct 16 B/S P Boogers – A/c Rec chq dis 2 772 2 772 [cr] [dr]


Extract Sales Journal of R Angara SJ 1 Acc’nt

Receiv Sales GST

Payab CoGS Inven-

tory

2 Oct 16 123 P Boogers – Sales 2 772 2 520 252 1 500 1 500 [dr] [cr] [cr] [dr] [cr]

Extract Cash Receipts Journal of R Angara CR 1 Bank Accnt

Receiv

10 Oct 16 894 P Boogers – A/c Receivable 2 772 2 772 [dr] [cr]

Extract Cash Payments Journal of R Angara CP 1


15 Oct 16 B/S P Boogers – A/c Rec chq dis 2 772 2 772 [cr] [dr]


Extract Sales Journal of L Buhinjak SJ 1 Acc’nt

Receiv Sales GST

Payab

29 Aug 16 456 A Ciantar – Sales 2 222 2 020 202 [dr] [cr] [cr]

Extract Cash Receipts Journal of L Buhinjak CR 1


3 Sep 16 406 A Ciantar – Acc’nt Receivable 2 222 2 222 19 Sep 16 407 A Ciantar – Acc’nt Receivable 2 222 2 222

[dr] [cr]

Extract Cash Payments Journal of L Buhinjak CP 1 Bank Acc’nt

Receiv

6 Sep 16 B/S A Ciantar – A/c Rec chq dish 2 222 2 222 [cr] [dr]



Question 6.19 perpetual inventory continued

Extract Sales Journal of L Buhinjak SJ 1 Acc’nt

Receiv Sales GST

Payab CoGS Inven-

tory

29 Aug 16 456 A Ciantar – Sales 2 222 2 020 202 1 200 1 200 [dr] [cr] [cr] [dr] [cr]

Extract Cash Receipts Journal of L Buhinjak CR 1


3 Sep 16 406 A Ciantar – A/c Receivable 2 222 2 222 19 Sep 16 407 A Ciantar – A/c Receivable 2 222 2 222

[dr] [cr]

Extract Cash Payments Journal of L Buhinjak CP 1 Bank Acc’nt

Receiv

6 Sep 16 B/S A Ciantar – A/c Rec chq dish 2 222 2 222 [cr] [dr]

Question 6.20

Extract Sales Journal of N Wayne SJ 1 Acc’nt

Receiv Sales GST

Payab

5 Feb 16 37 H Garden – Sales R1 1 199 1 090 109 101 400 200 [dr] [cr] [cr]

Extract Cash Receipts Journal of N Wayne CR 1


14 Feb 16 21 H Garden – A/c Receivable R1 1 199 1 199 100 101 [dr] [cr]

Extract Cash Payments Journal of N Wayne CP 1


17 Feb 16 B/S H Garden – A/c Rec ch dish R1 1 199 1 199 B/S H Garden – A/c Rec dish fee R1 55 55 1 254 1 254 100 101 [cr] [dr]

Extract General Ledger of N Wayne

Bank 100 28 Feb 16 Receipts CR1 1 199 28 Feb 16 Payments CP1 1 254

Balance c/d 55 1 254 1 254 1 Mar 16 Balance b/d 55

continued




Extract General Ledger of N Wayne continued Accounts Receivable Control 101

28 Feb 16 Sales SJ1 1 199 28 Feb 16 Bank [receipt] CR1 1 199 Bank [payment] CP1 1 254 Balance c/d 1 254 2 453 2 453


GST Payable 200 28 Feb 16 Acc Receivable Ctrl SJ1 109

Sales 400 28 Feb 16 Acc Receivable Ctrl SJ1 1 090

Accounts Receivable Ledger of N Wayne

H Garden 1 5 Feb 16 Sales SJ1 1 199 1 199 dr

14 Feb 16 Bank [receipt] CR1 1 199 0

17 Feb 16 Bank [payment] – cheque dishonoured CP1 1 199 1 199 dr Bank [payment] – cheque dishonour fee CP1 55 1 254 dr

Question 6.21

Extract Sales Journal of P Jackson SJ 1 Acc’nt

Receiv Sales GST

Payab CoGS Inven-

tory

18 Feb 16 629 R Parramatta – Sales R1 3 300 3 000 300 1 800 1 800 101 400 200 500 102

Extract Cash Receipts Journal of P Jackson CR 1

Bank Accnt Receiv

27 Feb 16 482 R Parramatta – A/c Rec R1 3 300 3 300

100 101

9 Mar 16 493 R Parramatta – A/c Rec R1 3 345 3 345 100 101

Extract Cash Payments Journal of P Jackson CP 1 Bank Accnt

Receiv

6 Mar 16 B/S R Parramatta – A/c Rec ch dis R1 3 300 3 300

B/S R Parramatta – A/c Rec dis fee R1 45 45 3 345 3 345

100 101




Extract General Ledger of P Jackson Bank 100

28 Feb 16 Receipts CR1 3 300 31 Mar 16 Payments CP1 3 345

31 Mar 16 Receipts CR1 3 345 Balance c/d 3 300

6 645 6 645


Accounts Receivable Control 101

28 Feb 16 Sales SJ1 3 300 28 Feb 16 Bank [receipt] CR1 3 300

31 Mar 16 Bank [payment] CP1 3 345 31 Mar 16 Bank [receipt] CR1 3 345

Inventory 102

28 Feb 16 Cost of Goods Sold SJ1 1 800

GST Payable Control 200

28 Feb 16 Acc’nts Receivable Ctrl SJ1 300

Sales 400

28 Feb 16 Acc’nts Receivable Ctrl SJ1 3 000

Cost of Goods Sold 500

28 Feb 16 Inventory SJ1 1 800

Extract Accounts Receivable Ledger of P Jackson R Parramatta 1

18 Feb 16 Sales SJ1 3 300 3 300 dr

27 Feb 16 Bank [receipt] CR1 3 300 0

6 Mar 16 Bank [payment] – cheque dishonoured CP1 3 300 3 300 dr

Bank [payment] – cheque dishonour fee CP1 45 3 345 dr

9 Mar 16 Bank [receipt] CR1 3 345 0

Question 6.22

Sales Journal of L Narrabeen SJ 1 Acc’nt

Receiv Sales GST

Payab

2 Apr 16 384 D Why – Sales R1 4 400 4 000 400 101 400 200 [dr] [cr] [cr]

Cash Receipts Journal of L Narrabeen CR 1


GST Payab

Sales

8 Apr 16 691 D Why – A/c Receivable R1 4 400 692 Sales 5 830 130 1 300

13 Apr 16 693 D Why – A/c Receivable R1 4 450 4 450 10 280 8 850 130 1300 100 101 200 400 [dr] [cr] [cr] [cr]




Cash Payments Journal of L Narrabeen CP 1 Bank Acc’nt

Receiv

11 Apr 16 B/S D Why – A/c Rec chq dishon R1 4 400 4 400 B/S D Why – A/c Rec dishon fee R1 50 50 4 450 4 450 100 101 [cr] [dr]

Extract General Ledger of L Narrabeen

Bank 100 30 Apr 16 Receipts CR1 10 280 30 Apr 16 Payments CP1 4 450

Balance c/d 5 830

10 280 10 280



30 Apr 16 Sales SJ1 4 400 30 Apr 16 Bank [receipt] CR1 8 850


8 850 8 850

GST Payable 200

30 Apr 16 Acc’nts Receivable Ctrl SJ1 400


530

Sales 400

30 Apr 16 Acc’nts Receivable Ctrl SJ1 4 000


5 300

Accounts Receivable Ledger of L Narrabeen

D Why 1 2 Apr 16 Sales SJ1 4 400 4 400 dr

8 Apr 16 Bank [receipt] CR1 4 400 0

11 Apr 16 Bank [payment] – cheque dishonoured CP1 4 400 4 400 dr

Bank [payment], chq dishonoured fee CP1 50 4 450 dr

13 Apr 16 Bank [receipt] CR1 4 450 0

Question 6.23

Extract Sales Journal of B Borko SJ 1 Acc’nt

Receiv Sales GST

Payab

Feb 16 B Andres – Sales R1 1 727 1 570 157 101 400 200 [dr] [cr] [cr]




General Journal of B Borko GJ 1 30 Jun 16 Bad Debts 560 1 570

GST Payable 200 157 Accounts Receivable Control 101 1 727 – B Andres 1727 R1 Account written off as a bad debt

Extract General Ledger of B Borko

Accounts Receivable Control 101 28 Feb 16 Sales SJ1 1 727 30 Jun 16 Bad Debts GJ1 1 727

GST Payable 200

30 Jun 16 Acc’nts Receivable Ctrl GJ1 157 28 Feb 16 Acc’nts Receivable Ctrl SJ1 157

Sales 400

28 Feb 16 Acc’nts Receivable Ctrl SJ1 1 570

Bad Debts 560

30 Jun 16 Acc’nts Receivable Ctrl GJ1 1 570

Accounts Receivable Ledger of B Borko

B Andres 1 28 Feb 16 Sales SJ1 1 727 1 727 dr 30 Jun 16 Bad Debts GJ1 1 570 157 dr

GST Payable GJ1 157 0

Question 6.24

Extract Cash Receipts Journal of M Mandic CR 1 Bank Acc’nt

Receiv

7 Dec 16 189 S Miguel – A/c Receivable 990 990 100 101

General Journal of M Mandic GJ 1

31 Dec 16 Bad Debts 560 1 550 GST Payable 200 155 Accounts Receivable Control 101 1 705 – S Miguel 1705 R1 Account balance written off as a bad debt



Question 6.24 continued Extract General Ledger of M Mandic

Bank 100 31 Dec 16 Receipts CR1 990

Accounts Receivable Control 101 31 Jul 16 Sales SJ1 2 695 31 Dec 16 Bank [receipt] CR1 990

Bad Debts GJ1 1 705

2 695 2 695

GST Payable 200 31 Dec 16 Acc’nt Receivable Ctrl GJ1 155 31 Jul 16 Acc Receivable Ctrl SJ1 245

Balance c/d 90

245 245

1 Jan 11 Balance b/d 90

Sales 400 31 Jul 16 Acc Receivable Ctrl SJ1 2 450

Bad Debts 560 31 Dec 16 Acc’nt Receivable Ctrl GJ1 1 550

Accounts Receivable Ledger of M Mandic

S Miguel 1 31 Jul 16 Sales SJ1 2 695 2 695 dr

7 Dec 16 Bank [receipt] CR1 990 1 705 dr

31 Dec 16 Bad Debts GJ1 1 550 155 dr


Question 6.25 General Journal of C Gymea GJ1

30 Jun 16 Bad Debts 560 1 210 GST Payable 200 121 Accounts Receivable Control 101 1331 – T Kingsway 1331 R1 Account written off as a bad debt

Extract General Ledger of C Gymea

Accounts Receivable Control 101 31 Mar 16 Sales SJ1 1 331 30 Jun 16 Bad Debts GJ1 1 331

GST Payable 200

30 Jun 16 Acc’nt Receivable Ctrl GJ1 121 31 Mar 16 Acc’nt Receivable Ctrl SJ1 121

Sales 400

31 Mar 16 Acc’nt Receivable Ctrl SJ1 1 210

Bad Debts 560

30 Jun 16 Acc’nt Receivable Ctrl GJ1 1 210



Question 6.25 finalised Accounts Receivable Ledger of C Gymea

T Kingsway 1 31 Mar 16 Sales SJ1 1 331 1 331 dr

30 Jun 16 Bad Debts GJ1 1 210 121 dr


Question 6.26

Sales Journal of Brook Lyn SJ 1 Acc’nt

Receiv Sales GST

Payab

17 Apr 16 433 T Causeway – Sales R1 2 541 2 310 231 101 400 200

Cash Receipts Journal of Brook Lyn CR 1


7 May 16 643 T Causeway – A/c Rec R1 550 550 100 101

Cash Payments Journal of Brook Lyn CP 1


12 May 16 B/S T Causeway – A/c Rec chq dish R1 550 550 B/S T Causeway – A/c Rec dish fee R1 55 55 605 605 100 101

General Journal of Brook Lyn GJ 1

31 May 16 Bad Debts 560 2 310 GST Payable 200 231 Bank Charges 561 55 Accounts Receivable Control 101 2 596 – T Causeway 2596 R1 Bad debt and bank charges written off for T Causeway

Extract General Ledger of Brook Lyn

Bank 100 31 May 16 Receipts CR1 550 31 May 16 Payments CP1 605

Balance c/d 55

605 605

1 Jun 16 Balance b/d 55 continued




Extract General Ledger of Brook Lyn continued Accounts Receivable Control 101

30 Apr 16 Sales SJ1 2 541 31 May 16 Bank [receipt] CR1 550 31 May 16 Bank [payment] CP1 605 Bad Debts GJ1 2 310

GST Payable GJ1 231

Bank Charges GJ1 55

3 146 3 146

GST Payable 200

31 May 16 Acc Receivable Ctrl GJ1 231 30 Apr 16 Acc Receivable Ctrl SJ1 231

Sales 400

30 Apr 16 Acc Receivable Ctrl SJ1 2 310

Bad Debts 560

31 May 16 Acc Receivable Ctrl GJ1 2 310

Bank Charges 561

31 May 16 Acc Receivable Ctrl GJ1 55

Accounts Receivable Ledger of Brook Lyn T Causeway 1

17 Apr 16 Sales SJ1 2 541 2 541 dr


12 May 16 Bank [payment] – cheque dishonoured CP1 550 2 541 dr

Bank [payment] – cheque dishonour fee CP1 55 2 596 dr

31 May 16 Bad Debts GJ1 2 310 286 dr

GST Payable GJ1 231 55 dr

Bank Charges GJ1 55 0

Question 6.27

Extract Cash Receipts Journal of . . . CR . . Bank Acc’nt

Receiv

30 Jun 16 C Hawkesbury – A/c Rec 528 528

General Journal of . . . GJ . . 30 Jun 16 Accounts Receivable Control 528

– C Hawkesbury 528 Bad Debts Recovered 480 GST Payable 48 Transfer of bad debt now recovered and GST adjustment



Question 6.28 Extract Cash Receipts Journal of R Hunter CR 1


31 Jul 16 V Macdonald – A/c Rec 1 705 1 705 100 101

General Journal of R Hunter GJ 1 31 Jul 16 Accounts Receivable Control 100 1 705

– V Macdonald 1705 R1 Bad Debts Recovered 400 1 550 GST Payable 200 155 Transfer of bad debt now recovered and GST adjustment

Extract General Ledger of R Hunter Bank 100

31 Jul 16 Receipts CR1 1 705


31 Jul 16 Bad Debts Recovered GJ1 1 705 31 Jul 16 Bank [receipt] CR1 1 705

GST Payable 200

31 Jul 16 Acc’nt Receivable Ctrl GJ1 155

Bad Debts Recovered 400

31 Jul 16 Acc’nt Receivable Ctrl GJ1 1 550

Accounts Receivable Ledger of R Hunter V Macdonald 1

31 Jul 16 Bank [receipt] CR1 1 705 1 705 cr Bad Debts Recovered GJ1 1 550 155 cr GST Payable GJ1 155 0

Question 6.29 General Journal of D Michael GJ 1

7 May 16 Bills Receivable Control 102 25 905 Accounts Receivable Control 101 25 905 – M Farrah 25 905 R1 Transfer of bill receivable due 28 November 2010

Extract General Ledger of D Michael Bank 100

30 Nov 16 Receipts CR1 25 905


30 Apr 16 Sales SJ1 25 905 31 May 16 Bills Receivable Ctrl GJ1 25 905

Bills Receivable Control 102

31 May 16 Acc’nt Receivable Ctrl GJ1 25 905 30 Nov 16 Bank [receipt] CR1 25 905

continued



Question 6.29 finalised Extract General Ledger of D Michael continued

GST Payable 200

30 Apr 16 Acc’nt Receivable Ctrl SJ1 2 355

Sales 400

30 Apr 16 Acc’nt Receivable Ctrl SJ1 23 550

Accounts Receivable Ledger of D Michael M Farrah 1

15 Apr 16 Sales SJ1 25 905 25 905 dr

7 May 16 Bills Receivable GJ1 25 905 0

Question 6.30

General Journal of M Farrah GJ 1 7 May 16 Accounts Payable Control 200 25 905

– D Michael 25 905 P1 Bills Payable Control 201 25 905 Transfer of bill payable due 28 November 2010

Extract General Ledger of M Farrah

Bank 100 30 Nov 16 Payments CP1 25 905

GST Receivable 101

30 Apr 16 Account Payable Ctrl PJ1 2 355


31 May 16 Bills Payable GJ1 25 905 30 Apr 16 Purchase PJ1 25 905

Bills Payable Control 201

30 Nov 16 Bank – payment CP1 25 905 31 May 16 Account Payable Ctrl GJ1 25 905

Purchases 500

30 Apr 16 Account Payable Ctrl PJ1 23 550

Accounts Payable Ledger of M Farrah D Michael 1

15 Apr 16 Purchases PJ1 25 905 25 905 cr

7 May 16 Bills Payable Control GJ1 25 905 0



Question 6.31 General Journal of A Levstek GJ 1

1 Mar 16 Bank 10 000 GST Receivable 4 200 Land 25 000 Equipment 2 000 Motor Vehicle 15 000 Capital 56 200 Assets on commencement of business

1 Apr 16 Bank 15 000 Capital 15 000 Additional cash brought into business

7 Apr 16 Machinery 7 000 Inventory 4 000 Accounts Receivable Control 3 300 – E Miletic 1 100 – C Odisho 2 200 Goodwill 5 700 L Andy 20 000 Assets acquired from the business of L Andy



Credit Chart of


or decrease Purchased machinery with debit card Machinery debit NCA increase GST Receivable debit CA increase Bank credit CA decrease Dishonour of a cheque previously received from a credit customer

Accounts Receivable Control debit CA increase Bank credit CA decrease A bill payable is met

Bills Payable Control debit CL decrease Bank credit CA decrease Received rental remittance

Bank debit CA increase Rent Received credit R increase GST Payable credit CL increase



Credit Chart of


or decrease Purchased computer on credit Computer debit NCA increase GST Receivable debit CA increase Accounts Payable Control credit CL increase Received direct deposit from customer

Bank debit CA increase Accounts Receivable Ctrl credit CA decrease Remitted rent

Rent debit E increase GST Receivable debit CA increase Bank credit CA decrease





Credit Chart of


or decrease Paid for new office desks, chairs, shelves and cupboards

Office Furniture and Fittings debit NCA increase GST Receivable debit CA increase Bank credit CA decrease Purchased on credit pens, pencils and paper for use with new office furniture and fittings Stationery debit E increase GST Receivable debit CA increase Accounts Payable Control credit CL increase Sold old desks and chairs at their book value for cash

Bank debit E increase Office Furniture & Fittings credit NCA decrease GST Payable credit CL increase



Credit Chart of


or decrease Credit sale

Accounts Receivable Control debit CA increase GST Payable credit CL increase Sales credit R increase Direct remittance from customer and discount applies Bank debit CA increase Discount Allowed debit E increase GST Payable debit CL decrease Accounts Receivable Ctrl credit CA decrease Dishonour of customer’s deposited cheque, no discount applies

Accounts Receivable Control debit CA increase Bank credit CA decrease Write off customer’s account as a bad debt

Bad Debts debit E increase GST Payable debit CL decrease Acc’nts Receivable Ctrl credit CA decrease Direct deposit received from a bad debt written off in the previous accounting period Bank debit CA increase Accounts Receivable Ctrl credit CA decrease

Accounts Receivable Ctrl debit CA increase Bad Debts Recovered credit R increase GST Payable credit CL increase





Credit Chart of


or decrease Used bank cheque to purchase motor vehicle

Motor Vehicle debit NCA increase GST Receivable debit CA increase Bank credit CA decrease

Owner withdrew cash from the business for private use Drawings debit OE increase Bank credit CA decrease Inventory sale on credit with perpetual inventory

Accounts Receivable debit CA increase Sales credit R increase GST Payable credit CL increase

Cost of Goods Sold debit E increase Inventory credit CA decrease

Bill receivable accepted and then met at due date Bills Receivable Control debit CA increase Accounts Receivable Ctrl credit CA decrease Bank debit CA increase Bills Receivable Control credit CA decrease



Credit Chart of


or decrease Interest charged on overdue accounts receivable (no GST) Accounts Receivable Control debit CA increase Interest Received credit R increase Remitted rent Rent debit E increase GST Receivable debit CA increase Bank credit CA decrease Purchased inventory with debit card Purchases debit E increase GST Receivable debit CA increase Bank credit CA decrease Sold machinery on credit at its book value Accounts Receivable Control debit CA increase Machinery credit NCA decrease GST Payable credit CL increase Owner introduced more cash into the business Bank debit CA increase

Capital credit OE increase continued



Question 6.37 continued Business


Credit Chart of


or decrease Owner took goods for personal use Drawings debit OE increase Purchases credit E decrease GST Receivable credit CA decrease Purchase of a computer on credit Computer debit NCA increase GST Receivable debit CA increase Accounts Payable Control credit CL increase Rental revenue deposited direct into account Bank debit CA increase Rent Received credit R increase GST Payable credit CL increase Sale of inventory on credit Accounts Receivable Control debit CA increase Sales credit R increase GST Payable credit CL increase Acceptance of bill receivable and bill met at due date Bills Receivable Control debit CA increase Accounts Receivable Ctrl credit CA decrease Bank debit CA increase Bills Receivable Control credit CA decrease Bad debt written off Bad Debts debit E increase GST Payable Control debit CL decrease Accounts Receivable Ctrl credit CA decrease


Sales Journal of M Bowman SJ 1 Acc’nt

Receiv Sales GST

Payab

6 Jan 16 789 A Fox – Sales R1 9 339 8 490 849 101 400 201 [dr] [cr] [cr]

Purchase Journal of M Bowman PJ 1

Acc’nt Payab

Purch-ases

GST Receiv

5 Jan 16 489 A Harris – Purchases P1 3 993 3 630 363 200 500 102 [cr] [dr] [dr]




Cash Receipts Journal of M Bowman CR 1 Bank Acc’nt

Receiv

16 Jan 16 678 A Fox – A/c Receivable R1 9 339 9 339 25 Jan 16 685 A Fox – A/c Receivable R1 9 339 9 339

18 678 18 678 100 101 [dr] [cr]

Cash Payments Journal of M Bowman CP 1

Bank Acc’nt Payab

Disc’nt Rec’d

GST Receiv

Acc’nt Receiv

20 Jan 16 B/S A Fox – A/c Rec chq dishon R1 9 339 9 339 28 Jan 16 456 A Harris – Acc’nts Payable P1 3 795 3 993 (180) (18)

13 134 3 993 (180) (18) 9 339 100 200 410 102 101 [cr] [dr] [cr] [cr] [dr]

Extract General Ledger of M Bowman Bank 100


Balance c/d 5 544

18 678 18 678




18 678 18 678

GST Receivable 102 31 Jan 16 Accounts Payable Ctrl PJ1 363 31 Jan 16 Bank [payment] CP1 18

Balance c/d 345

363 363


Accounts Payable Control 200 31 Jan 16 Bank [payment] CP

1

3 993 31 Jan 16 Purchase PJ1 3 993

GST Payable 201 31 Jan 16 Acc Receivable Ctrl SJ1 849

Sales 400 31 Jan 16 Acc Receivable Ctrl SJ1 8 490

Discount Received 410 31 Jan 16 Bank [payment] CP1 180

Purchases 500 31 Jan 16 Accounts Payable Ctrl PJ1 3 630




Accounts Receivable Ledger of M Bowman A Fox 1

6 Jan 16 Sales SJ1 9 339 9 339 dr

16 Jan 16 Bank [receipt] CR1 9 339 0

20 Jan 16 Bank [payment] – chq dishonoured CP1 9 339 9 339 dr

25 Jan 16 Bank [receipt] CR1 9 339 0

Accounts Payable Ledger of M Bowman

A Harris 1

5 Jan 16 Purchase PJ1 3 993 3 993 cr

28 Jan 16 Bank [payment] CP1 3 795 198 cr



Sales Journal of S Ireland SJ 1 Acc’nt

Receiv Sales GST

Payab CoGS Inven-

tory

2 Aug 16 012 P Dipstick – Sales R1 1 991 1 810 181 1 100 1 100

4 Aug 16 013 B McAlpine – Sales R2 2 321 2 110 211 1 200 1 200 4 312 3 920 392 2 300 2 300 101 400 201 500 102 [dr] [cr] [cr] [dr] [cr]

Purchase Journal of S Ireland PJ 1

Acc’nt Payab

Inven-tory

GST Receiv

4 Aug 16 785 A Chappel – Inventory P1 957 870 87 200 102 103 [cr] [dr] [dr]

Cash Receipts Journal of S Ireland CR 1


Disc’nt Allow’d

GST Payab

12 Aug 16 357 P Dipstick – A/c Receivable R1 1 991 358 B McAlpine – A/c Receiv R2 4 191 2 321 (110) (11) 4 191 4 312 (110) (11) 100 101 560 201 [dr] [cr] [dr] [dr]

Cash Payments Journal of S Ireland CP 1

Bank Acc’nt Payab

Disc’nt Rec’d

GST Receiv

Acc’nt Receiv

16 Aug 16 B/S P Dipstick – A/c Rec chq dis R1 1 991 1 991 28 Aug 16 741 A Chappel – Acc’nt Payable P1 902 957 (50) (5)

2 893 957 (50) (5) 1 991 100 200 410 103 101 [cr] [dr] [cr] [cr] [dr]




Extract General Ledger of S Ireland Bank 100

31 Aug 16 Receipts CR1 4 191 31 Aug 16 Payments CP1 2 893 Balance c/d 1 298 4 191 4 191


Accounts Receivable Control 101 31 Aug 16 Sales SJ1 4 312 31 Aug 16 Bank [receipt] CR1 4 312

Bank [payment] CP1 1 991 Balance c/d 1 991 6 303 6 303

1 Sep 16 Balance b/d 1 991 Inventory 102

31 Aug 16 Acc’nts Payable Ctrl PJ1 870 31 Aug 16 Cost of Goods Sold SJ1 2 300

Balance c/d 1 430

2 300 2 300


GST Receivable 103 31 Aug 16 Acc’nts Payable Ctrl PJ1 87 31 Aug 16 Bank [payment] CP1 5

Balance c/d 82

87 87

1 Sep 16 Balance b/d 82

Accounts Payable Control 200 31 Aug 16 Bank [payment] CP1 957 31 Aug 16 Purchase PJ1 957

GST Payable 201 31 Aug 16 Bank [receipt] CR1 11 31 Aug 16 Acc Receivable Ctrl SJ1 392

Balance c/d 381

392 392

1 Sep 16 Balance b/d 381

Sales 400 31 Aug 16 Acc Receivable Ctrl SJ1 3 920


Cost of Goods Sold 500 31 Aug 16 Inventory SJ1 2 300

Discount Allowed 560 31 Aug 16 Bank [receipt] CR1 110




Accounts Receivable Ledger of S Ireland P Dipstick 1

2 Aug 16 Sales SJ1 1 991 1 991 dr

12 Aug 16 Bank [receipt] CR1 1 991 0

16 Aug 16 Bank [payment], cheque dishonoured CP1 1 991 1 991 dr

B McAlpine 2 4 Aug 16 Sales SJ1 2 321 2 321 dr



Accounts Payable Ledger of S Ireland A Chappel 1

4 Aug 16 Purchase PJ1 957 957 cr

28 Aug 16 Bank [payment] CP1 902 55 cr


Question 6.40

Extract General Ledger of J Patricia Accounts Receivable Control

1 Aug 16 Balance b/d 22 121 31 Aug 16 Bad Debts 902

31 Aug 16 Sales 17 358 Bank [receipt] 16 687

Balance c/d 21 890

39 479 39 479


Question 6.41

Extract General Ledger of T John Accounts Receivable Control

1 Jul 16 Balance b/d 59 301 31 Jul 16 Bank [receipt] 45 100

31 Jul 16 Bank [payment] – chq dishon

825 Bad Debts 561

Sales 47 784 Balance c/d 62 249

107 910 107 910


Question 6.42

Extract General Ledger of S Meredith Accounts Receivable Control

1 Feb 16 Balance b/d 15 004 28 Feb 16 Bad Debts 396

28 Feb 16 Sales 13 002 Bank [receipt] 12 397

Balance c/d 15 213

28 006 28 006

1 Mar 16 Balance b/d 15 213 continued



Question 6.42 continued Extract General Ledger of S Meredith continued

Accounts Payable Control 28 Feb 16 Bank [payment] 9 801 1 Feb 16 Balance b/d 7 997

Balance c/d 7 700 28 Feb 16 Purchase 9 504

17 501 17 501


Question 6.43 Extract General Ledger of K Ann

Accounts Receivable Control 1 Apr 16 Balance b/d 7 282 30 Apr 16 Bad Debts 605

30 Apr 16 Sales 12 573 Bank [receipt] 13 585

Bank [payment] chq dishon 781 Balance c/d 6 446

20 636 20 636

1 May 16 Balance b/d 6 446 Accounts Payable Control

30 Apr 16 Bank [payment] 7 645 1 Apr 16 Balance b/d 3 718 Balance c/d 3 465 30 Apr 16 Purchase 7 392 11 110 11 110 1 May 16 Balance b/d 3 465

Question 6.44 Extract General Ledger of A Henry

Accounts Receivable Control 1 May 16 Balance b/d 16 599 31 May 16 Bad Debts 671

31 May 16 Sales 13 035 Bank [receipt] 13 563

Bank [payment] chq dishon 693 Balance c/d 16 093

30 327 30 327


Accounts Payable Control 31 May 16 Bank [payment] 6 490 1 May 16 Balance b/d 5 753

Balance c/d 6 226 31 May 16 Purchase 6 963 12 716 12 716 1 Jun 16 Balance b/d 6 226

Question 6.45 Extract General Ledger of J Wright

Accounts Receivable Control 1 Nov 16 Balance b/d 4 587 30 Nov 16 Bad Debts 374

30 Nov 16 Bank [payment] chq dishon 407 Bank [receipt] 8 877

Sales 7 590 Balance c/d 3 333

12 584 12 584

1 Dec 16 Balance b/d 3 333 continued



Question 6.45 Extract General Ledger of J Wright continued

Accounts Payable Control 30 Nov 16 Bank [payment] 4 587 1 Nov 16 Balance b/d 3 025

Balance c/d 2 761 30 Nov 16 Purchase 4 323

7 348 7 348

1 Dec 16 Balance b/d 2 761



Credit Chart of


or decrease Credit purchase of machinery, bill payable accepted and met

Machinery debit NCA increase GST Receivable debit CA increase Accounts Payable Ctrl credit CL increase Accounts Payable Control debit CL decrease Bills Payable Control credit CL increase Bills Payable Control debit CL decrease Bank credit CA decrease Paid for repairs to motor vehicle Motor Vehicle Expense debit E increase GST Receivable debit CA increase Bank credit CA decrease Owner withdrew goods for personal use – periodic inventory applies Drawings debit OE increase Purchases credit E decrease GST Receivable credit CA decrease Owner withdrew goods for personal use - perpetual inventory applies Drawings debit OE increase Inventory credit CA decrease GST Receivable credit CA decrease



Credit Chart of


or decrease Bad debt written off Bad Debts debit E increase GST Payable debit CL decrease Acc Receivable Ctrl credit CA decrease Owner withdrew cash for private use Drawings debit OE increase Bank credit CA decrease Purchased computer on credit Computer debit NCA increase GST Receivable debit CA increase

Accounts Payable Ctrl credit CL increase continued





Credit Chart of


or decrease Remittance processed for computer previously purchased on credit, discount was allowed Accounts Payable Control debit CL decrease Bank credit CA decrease Discount Received credit R increase GST Receivable credit CA decrease Sale of goods on credit with periodic inventory Accounts Receivable Control debit CA increase Sales credit R increase GST Payable credit CL increase Sale of goods on credit with perpetual inventory Accounts Receivable Control debit CA increase Sales credit R increase GST Payable credit CL increase Cost of Goods Sold debit E increase Inventory credit CA decrease



Credit Chart of


or decrease Sold old office equipment, at book value, on credit Accounts Receivable Control debit CA increase GST Payable credit CL increase Office Equipment credit NCA decrease Recovered a bad debt written off in the previous accounting period Bank debit CA increase Acc’nt Receivable Ctrl credit CA decrease Accounts Receivable Control debit CA increase Bad Debts Recovered credit R increase GST Payable credit CL increase Cash sale of goods with periodic inventory Bank debit CA increase Sales credit R increase GST Payable credit CL increase Cash sale of goods with perpetual inventory Bank debit CA increase Sales credit R increase GST Payable credit CL increase Cost of Goods Sold debit E increase Inventory credit CA decrease Supplier charged the business interest on well overdue account (no GST) Interest debit E increase Accounts Payable Ctrl credit CL increase





Credit Chart of


or decrease Received inventory on credit from supplier; periodic inventory applies Purchases debit E increase GST Receivable debit CA increase Accounts Payable Ctrl credit CL increase Received inventory on credit from supplier; perpetual inventory applies Inventory debit CA increase GST Receivable debit CA increase Accounts Payable Ctrl credit CL increase Sold old computer at book value for cash Bank debit CA increase Computer credit NCA decrease GST Payable credit CL increase Owner introduced more cash into the business Bank debit CA increase Capital credit OE increase Write off a bad debt Bad Debts debit E increase GST Payable debit CL decrease Acc Receivable Ctrl credit CA decrease



Credit Chart of


or decrease Purchase of inventory with debit card; periodic inventory applies Purchases debit E increase GST Receivable debit CA increase Bank credit CA decrease Purchase of inventory with debit card; perpetual inventory applies Inventory debit CA increase GST Receivable debit CA increase Bank credit CA decrease Stationery purchased on credit Stationery debit E increase GST Receivable debit CA increase Accounts Payable Ctrl credit CL increase Purchase of equipment on credit Equipment debit NCA increase GST Receivable debit CA increase Accounts Payable Ctrl credit CL increase Acceptance of a bill payable and bill met Accounts Payable Control debit CL decrease Bills Payable Control credit CL increase Bills Payable Control debit CL decrease

Bank credit CA decrease continued





Credit Chart of


or decrease Dishonour of cheque from a credit customer Accounts Receivable Control debit CA increase Bank credit CA decrease Bad debt recovered Bank debit CA increase Acc Receivable Ctrl credit CA decrease Accounts Receivable Control debit CA increase GST Payable credit CL increase Bad Debts Recovered credit R increase Cash sale of inventory, where periodic inventory applies Bank debit CA increase Sales credit R increase GST Payable credit CL increase Cash sale of inventory, where cost of the inventory is known Bank debit CA increase Sales credit R increase GST Payable credit CL increase Cost of Goods Sold debit E increase Inventory credit CA decrease Owner took cash for personal use Drawings debit OE increase Bank credit CA decrease Purchased office furniture on credit Office Furniture debit NCA increase GST Receivable debit CA increase Accounts Payable Ctrl credit CL increase Sale of motor vehicle for cash at book value Bank debit CA increase Motor Vehicle credit NCA decrease GST Payable credit CL increase Interest charged on overdue account receivable Accounts Receivable Control debit CA increase Interest Received credit R increase



Credit Chart of


or decrease Dishonour of cheque received from customer Accounts Receivable Control debit CA increase Bank credit CA decrease Remitted rent to landlord Rent debit E increase GST Receivable debit CA increase

Bank credit CA decrease continued





Credit Chart of


or decrease Interest revenue charged on customer’s overdue account Accounts Receivable Control debit CA increase Interest Received credit R increase Purchased motor vehicle by electronic transfer of funds Motor Vehicle debit NCA increase GST Receivable debit CA increase Bank credit CA decrease Remittance received from a credit customer with discount Bank debit CA increase Discount Allowed debit E increase GST Payable debit CL decrease Acc Receivable Ctrl credit CA decrease Commenced business with cash, machinery and motor vehicle Bank debit CA increase Machinery debit NCA increase Motor Vehicle debit NCA increase Capital credit OE increase Purchased computer on credit Computer debit NCA increase GST Receivable debit CA increase Accounts Payable Ctrl credit CL increase Stationery purchased by debit card Stationery debit E increase Bank credit CA decrease Supplier charged interest on overdue account Interest debit E increase Accounts Payable Ctrl credit CL increase Sale of inventory on credit, where periodic inventory applies Accounts Receivable Control debit CA increase Sales credit R increase GST Payable credit CL increase Cash sale of inventory, where perpetual inventory applies Bank debit CA increase Sales credit R increase GST Payable credit CL increase Cost of Goods Sold debit E increase Inventory credit CA decrease Owner took stock for private use, where periodic inventory applies Drawings debit OE increase Purchases credit E decrease GST Receivable credit CA decrease Stock withdrawn by owner for personal use, where perpetual inventory applies Drawings debit OE increase Inventory credit CA decrease GST Receivable credit CA decrease



Question 6.52 2 CR 2 CR 3 PJ 4 CP 5 CR 5 (PJ) 7 CP

7 CP 8 CP 8 GJ 9 SJ 9 CP 10 CR 12 (SJ)

13 CR 13 CR 15 CP 16 CR 18 SJ 18 CR 18 CP

19 PJ 19 CP 20 SJ 20 CP 21 PJ 22 CR 25 SJ

25 SJ 27 PJ 27 SJ 30 CR 30 CP 31 CR 31 GJ

General Journal of L Miles GJ 1

8 Jan 16 Drawings 301 165

Purchases 500 150


Owner withdrew goods for own use

31 Jan 16 Bad Debts 561 1 770 GST Payable 201 177 Bank Charges 562 55 Accounts Receivable Control 101 2 002 – S Dunda 2002 R2 Write off bad debt and adjustment to GST payable

Sales Journal of L Miles SJ 1

Acc’nt Receiv

Sales GST Payab

9 Jan 16 458 V Wentworth – Sales R5 2 838 2 580 258

12 Jan 16 031 V Wentworth – Sale Return R5 (55) (50) (5)

18 Jan 16 459 P Harris – Sales R3 3 377 3 070 307

20 Jan 16 460 V Wentworth – Sales R5 2 651 2 410 241

25 Jan 16 461 O Burn – Sales R1 1 507 1 370 137

462 P Harris – Sales R3 1 969 1 790 179

27 Jan 16 463 W Mead – Sales R4 3 564 3 240 324

15 851 14 410 1 441 101 400 201 [dr] [cr] [cr]

Purchases Journal of L Miles PJ 1

Acc’nt Payab

Purch ases

GST Receiv

Office Equip

3 Jan 16 629 G Ilford – Purchases P4 1 177 1 070 107

5 Jan 16 042 R Dalmere – Purch Return P2 (66) (60) (6)

19 Jan 16 531 R Dalmere – Purchases P2 1 419 1 290 129

21 Jan 16 778 S Granville – Purchases P3 1 782 1 620 162

27 Jan 16 373 Camellia & Co – Off Equip P1 3 960 360 3 600 8 272 3 920 752 3 600 200 500 103 151 [cr] [dr] [dr] [dr]




Cash Receipts Journal of L Miles CR 1 Bank Acc’nt


GST Payab

Sales

2 Jan 16 384 P Harris – A/c Receivable R3 2 739 (80) (8)

385 S Dunda – A/c Receivable R2 5 236 2 585

5 Jan 16 386 V Wentworth – A/c Receivab R5 2 563 2 563

10 Jan 16 387 Sales 1 881 171 1 710

13 Jan 16 388 S Dunda – A/c Receivable R2 638

389 Sales 3 223 235 2 350

16 Jan 16 390 Sales 1 804 164 1 640

18 Jan 16 391 W Mead – A/c Receivable R4 1 881 1 881

22 Jan 16 392 Sales 1 584 144 1 440

30 Jan 16 393 Sales 1 716 156 1 560

31 Jan 16 394 O Burn – A/c Receivable R1 1 474 1 507 (30) (3)

21 362 11 913 (110) 859 8 700 100 101 560 201 400 [dr] [cr] [dr] [cr] [cr]

Cash Payments Journal of L Miles CP 1 Bank Acc’nt

Payab Disc’nt Rec’d

GST Receiv

Acc’nt Receiv

Purch- ases

Gen- eral

4 Jan 16 742 S Granville – A/c Payable P3 803 825 (20) (2)

7 Jan 16 B/S S Dunda – A/c Rec chq dis R2 2 585 2 585

7 Jan 16 B/S S Dunda – A/c Rec dis fee R2 55 55

8 Jan 16 743 R Dalmere – A/c Payable P2 1 188 1 188

9 Jan 16 744 L Combe – Purchases 1 243 113 1 130

15 Jan 16 745 W Mead – A/c Payable P5 1 287 1 287

18 Jan 16 746 ATO – GST Rec & Pay 201 1 600 (842) 2 442

19 Jan 16 747 Drawings 301 580 580

20 Jan 16 748 R Mington – Purchases 1 826 166 1 660

30 Jan 16 749 S Good – Sales 400 143 130

S Good – GST Payable 201 13 11 310 3 300 (20) (565) 2 640 2 790 3 165 100 200 410 103 500 301 [cr] [dr] [cr] [cr] [dr] [dr]

General Ledger of L Miles

Bank 100 31 Jan 16 Receipts CR1 21 362 1 Jan 16 Balance b/d 2 190

31 Jan 16 Payments CP1 11 310

Balance c/d 7 862

21 362 21 362

1 Feb 16 Balance b/d 7 862 continued




General Ledger of L Miles continued Accounts Receivable Control 101

1 Jan 16 Balance b/d 9 768 31 Jan 16 Bank [receipt] CR1 11 913

31 Jan 16 Sales SJ1 15 851 Bad Debts GJ1 2 002

Bank [payment] CP1 2 640 Balance c/d 14 344

28 259 28 259


Inventory 102 1 Jan 16 Balance b/d 3 488

GST Receivable 103 1 Jan 16 Balance b/d 842 8 Jan 16 Drawings GJ1 15

31 Jan 16 Acc’nt Payable Ctrl PJ1 752 31 Jan 16 Bank [payment] CP1 565

Balance c/d 1 014

1 594 1 594


Premises 150 1 Jan 16 Balance b/d 55 000

Office Equipment 151 1 Jan 16 Balance b/d 5 900

31 Jan 16 Account Payable Ctrl PJ1 3 600

9 500

Accounts Payable Control 200 31 Jan 16 Bank [payment] CP1 3 300 1 Jan 16 Balance b/d 3 366

Balance c/d 8 338 31 Jan 16 Purchase PJ1 8 272

11 638 11 638


GST Payable 201 31 Jan 16 Acc’nt Receivable Ctrl GJ1 177 1 Jan 16 Balance b/d 2 442

Bank [payment] CP1 2 442 31 Jan 16 Acc’nt Receivable Ctrl SJ1 1 441

Bank [payment] CP1 13 Bank [receipt] CR1 859

Balance c/d 2 110

4 742 4 742


Mortgage on Premises 250 1 Jan 16 Balance b/d 20 000

Capital 300

1 Jan 16 Balance b/d 47 000

Drawings 301

8 Jan 16 Purchases GJ1 165

31 Jan 16 Bank [payment] CP1 580

745 continued




General Ledger of L Miles continued Sales 400

31 Jan 16 Bank [payment] CP1 130 31 Jan 16 Acc’nt Receivable Ctrl SJ1 14 410

Balance c/d 22 980 Bank [receipt] CR1 8 700

23 110 23 110



31 Jan 16 Bank [payment] CP1 20

Purchases 500

31 Jan 16 Account Payable Ctrl PJ1 3 920 8 Jan 16 Drawings GJ1 150

Bank [payment] CP1 2 790 31 Jan 16 Balance c/d 6 560

6 710 6 710



31 Jan 16 Bank [receipt] CR1 110

Bad Debts 561

31 Jan 16 Acc’nt Receivable Ctrl GJ1 1 770

Bank Charges 562

31 Jan 16 Acc’nt Receivable Ctrl GJ1 55

Accounts Receivable Ledger of L Miles

O Burn 1 25 Jan 16 Sales SJ1 1 507 1 507 dr 31 Jan 16 Bank [receipt] CR1 1 474 33 dr

Discount Allowed & GST CR1 33 0 S Dunda 2

1 Jan 16 Balance 2 585 2 585 dr 2 Jan 16 Bank [receipt] CR1 2 585 0 7 Jan 16 Bank – payment – cheque dishonoured CP1 2 585 2 585 dr

Bank – payment – dishonour fee CP1 55 2 640 dr 13 Jan 16 Bank [receipt] CR1 638 2 002 dr 31 Jan 16 Bad Debts GJ1 1 770 232 dr

GST Payable GJ1 177 55 dr Bank Charges GJ1 55 0

P Harris 3 1 Jan 16 Balance 2 739 2 739 dr 2 Jan 16 Bank [receipt] CR1 2 651 88 dr

Discount Allowed & GST CR1 88 0 18 Jan 16 Sales SJ1 3 377 3 377 dr 25 Jan 16 Sales SJ1 1 969 5 346 dr

continued




Accounts Receivable Ledger of L Miles continued W Mead 4

1 Jan 16 Balance 1 881 1 881 dr 18 Jan 16 Bank [receipt] CR1 1 881 0 27 Jan 16 Sales SJ1 3 564 3 564 dr

V Wentworth 5 1 Jan 16 Balance 2 563 2 563 dr 5 Jan 16 Bank [receipt] CR1 2 563 0 9 Jan 16 Sales SJ1 2 838 2 838 dr 12 Jan 16 Sale Return SJ1 55 2 783 dr 20 Jan 16 Sales SJ1 2 651 5 434 dr

Accounts Payable Ledger of L Miles

Camellia & Co 1 27 Jan 16 Purchase PJ1 3 960 3 960 cr

R Dalmere 2

1 Jan 16 Balance 1 254 1 254 cr 5 Jan 16 Purchase Return PJ1 66 1 188 cr 8 Jan 16 Bank [payment] CP1 1 188 0 19 Jan 16 Purchase PJ1 1 419 1 419 cr

S Granville 3

1 Jan 16 Balance 825 825 cr 4 Jan 16 Bank [payment] CP1 803 22 cr

Discount Received & GST CP1 22 0 21 Jan 16 Purchase PJ1 1 782 1 782 cr

G Ilford 4

3 Jan 16 Purchase PJ1 1 177 1 177 cr W Mead 5

1 Jan 16 Balance 1 287 1 287 cr 15 Jan 16 Bank [payment] CP1 1 287 0




Trial Balance of L Miles as at 31 January 2016

Bank 100 7 862 Accounts Receivable Control 101 14 344 Inventory 102 3 488 GST Receivable 103 1 014 Premises 150 55 000 Office Equipment 151 9 500 Accounts Payable Control 200 8 338 GST Payable 201 2 110 Mortgage on Premises 250 20 000 Capital 300 47 000 Drawings 301 745 Sales 400 22 980 Discount Received 410 20 Purchases 500 6 560 Discount Allowed 560 110 Bad Debts 561 1 770 Bank Charges 562 55 100 448 100 448

L Miles

Accounts Receivable Listing as at 31 January 2016

L Miles Accounts Payable Listing


P Harris 3 5 346 Camellia & Co 1 3 960 W Mead 4 3 564 R Dalmere 2 1 419 V Wentworth 5 5 434 S Granville 3 1 782 14 344 G Ilford 4 1 177

8 338

Question 6.53 July 1 GJ 4 GJ 6 CR 6 PJ 10 SJ 10 CR 10 CP

12 CR 13 PJ 18 SJ 20 PJ 24 CP 24 PJ 25 CR

25 PJ 28 CR 28 CR

August 2 CR 2 CR 4 CP 6 CR 7 CP 7 CP 7 CP

10 CP 11 (PJ) 13 SJ 14 CP 15 CR 15 CR 18 PJ

20 CP 21 CP 24 PJ 28 CR 31 CP 31 GJ

General Journal of K Knight GJ 1

1 Jul 16 Bank 100 65 000

Loan from New England Bank 250 30 000

Capital 300 35 000

Asset and liability on commencement

continued




General Journal of K Knight continued GJ 1

4 Jul 16 Premises 150 22 000



– M Druitt 2 013 R2

– P Enrith 1 496 R3

– S Marys 1 991 R4

Inventory 102 4 500

Goodwill 152 14 000

A Johnson & Co 200 58 000

Purchase of business from A Johnson & Co

31 Aug 16 Bad Debts 561 1 270

GST Payable 202 127 Accounts Receivable Control 101 1 397 – S Marys 1 397 R4 Write off as a bad debt and GST adjustment

Sales Journal of K Knight SJ 1

Acc’nt Receiv

Sales GST Payab

10 Jul 16 422 G Brook – Sales R1 2 981 2 710 271 18 Jul 16 423 M Piddington – Sales R5 2 915 2 650 265

5 896 5 360 536 101 400 202 [dr] [cr] [cr]

Purchases Journal of K Knight PJ 1

Acc’nt Payab

Purch ases

GST Receiv

Statio-nery

Advert-ising

6 Jul 16 153 L Riverstone – Purchase P4 1 485 1 350 135 13 Jul 16 384 Lawson Stationery – Stat P3 715 65 650 20 Jul 16 846 Kanangra Boyd – Advert’g P2 1 881 171 1 710 24 Jul 16 787 V Heights – Purchases P1 946 860 86 25 Jul 16 416 Lawson Stationery – Stat P3 1 441 131 1 310

6 468 2 210 588 1 960 1 710 201 500 103 540 520 [cr] [dr] [dr] [dr] [dr]



Question 6.53 continued Cash Receipts Journal of K Knight CR 1


Disc’nt Allow’d

GST Payab

Sales Rent Rec’d

6 Jul 16 456 P Enrith – A/c Receivable R3 1 452 1 496 (40) (4) 10 Jul 16 457 Sales 1 793 163 1 630 12 Jul 16 458 M Druitt – A/c Receivable R2 2 013 2 013 25 Jul 16 459 Sales 3 388 308 3 080 28 Jul 16 460 B Mountain – Rent Rec’d 76 760

461 S Marys – A/c Receivable R4 1 430 594 10 076 4 103 (40) 543 4 710 760 100 101 560 202 400 410 [dr] [cr] [dr] [cr] [cr] [cr]

Cash Payments Journal of K Knight CP 1

Bank Wages

10 Jul 16 620 Cash – Wages 2 500 2 500 24 Jul 16 621 Cash – Wages 2 500 2 500

5 000 5 000 100

[cr] 541 [dr]

Sales Journal of K Knight SJ 2

Acc’nt Receiv

Sales GST Payab

13 Aug 16 424 G Brook – Sales R1 3 982 3 620 362 101

[dr] 400 [cr]

202 [cr]

Purchases Journal of K Knight PJ 2

Acc’nt Payab

Purch ases

GST Receiv

11 Aug 16 058 V Heights – Purch Return P1 (33) (30) (3) 18 Aug 16 817 V Heights – Purchases P1 242 220 22 24 Aug 16 853 V Heights – Purchases P1 418 380 38

627 570 57 201

[cr] 500 [dr]

103 [dr]

Cash Receipts Journal of K Knight CR 2


Discn’t Allow’d

GST Payab

Sales Comm Rec’d

Rent Rec’d

2 Aug 16 462 G Brook – A/c Receivable R1 2 981 (70) (7)

463 M Piddington – A/c Receiv R5 5 742 2 915 (70) (7)

6 Aug 16 464 S Marys – A/c Receivable R4 397 397

15 Aug 16 465 Sales 257 2 570

466 P Anthers– Comm Rec’d 4 763 176 1 760

28 Aug 16 467 B Mountain – Rent Rec’d 836 76 760

11 738 6 293 (140) 495 2 570 1 760 760 100

[dr] 101 [cr]

560 [dr]

202 [cr]

400 [cr]

411 [cr]

410 [cr]



Question 6.53 continued Cash Payments Journal of K Knight CP 2

Bank Acc’nt Payab

Discn’t Rec’d

GST Receiv

Wages Tele-phone

Gen-eral

4 Aug 16 622 L Riverstone – A/c Payab P4 1 441 1 485 (40) (4)

7 Aug 16 623 Cash – Wages 2 600 2 600

624 Lawson Station – A/c Pay P3 2 156 2 156

625 Telstra – Telephone 704 64 640

10 Aug 16 B/s S Marys – A/c Rec chq dis 101R4

397 397

14 Aug 16 626 V Heights – A/c Payable P1 913 913

20 Aug 16 627 Telstra – Telephone 1 793 163 1 630

21 Aug 16 628 Cash – Wages 2 500 2 500

31 Aug 16 629 A Johnson & Co 200 58 000 58 000 70 504 4 554 (40) 223 5 100 2 270 58 397 100

[cr] 201 [dr]

412 [cr]

103 [dr]

541 [dr]

542 [dr]

General Ledger of K Knight

Bank 100 1 Jul 16 Capital GJ1 65 000 31 Jul 16 Payments CP1 5 000


75 076 75 076



81 814 81 814



4 Jul 16 A Johnson & Co GJ1 5 500 31 Jul 16 Bank [receipt] CR1 4 103


11 396 11 396

1 Aug 16 Balance b/d 7 293 31 Aug 16 Bank [receipt] CR2 6 293

31 Aug 16 Sales SJ2 3 982 Bad Debts GJ1 1 397

Bank [payment] chq dis CP2 397 Balance c/d 3 982

11 672 11 672


Inventory 102

4 Jul 16 A Johnson & Co GJ1 4 500

GST Receivable 103

31 Jul 16 Acc’nt Payable Ctrl PJ1 588

31 Aug 16 Acc’nt Payable Ctrl PJ2 57


868 continued



Question 6.53 continued General Ledger of K Knight continued Premises 150


Motor Vehicle 151


Goodwill 152


A Johnson & Co 200

31 Aug 16 Bank [payment] CP2 58 000 4 Jul 16 Assets GJ1 58 000


31 Aug 16 Bank [payment] CP2 4 554 31 Jul 16 Purchase PJ1 6 468

Balance c/d 2 541 31 Aug 16 Purchase PJ2 627

7 095 7 095


GST Payable 202

31 Aug 16 Acc’nt Receivable Ctrl GJ1 127 31 Jul 16 Acc’nt Receivable Ctrl SJ1 536

Balance c/d 1 809 Bank [receipt] CR1 543

1 079

31 Aug 16 Acc’nt Receivable Ctrl SJ1 362


1 936 1 936


Loan from New England Bank 250 1 Jul 16 Capital GJ1 30 000

Capital 300 1 Jul 16 Asset & Liability GJ1 35 000



10 070

31 Aug 16 Acc’nt Receivable Ctrl SJ2 3 620


16 260



1 520

Commission Received 411 31 Aug 16 Bank [receipt] CR2 1 760

continued



Question 6.53 continued General Ledger of K Knight continued


Purchases 500 31 Jul 16 Acc’nt Payable Ctrl PJ1 2 210 31 Aug 16 Acc’nt Payable Ctrl PJ2 570

2 780 Advertising 520

31 Jul 16 Acc’nt Payable Ctrl PJ1 1 710 Stationery 540

31 Jul 16 Acc’nt Payable Ctrl PJ1 1 960 Wages 541

31 Jul 16 Bank [payment] CP1 5 000 31 Aug 16 Bank [payment] CP2 5 100

10 100 Telephone 542

31 Aug 16 Bank [payment] CP2 2 270 Discount Allowed 560

31 Jul 16 Bank [receipt] CR1 40 31 Aug 16 Bank [receipt] CR2 140

180 Bad Debts 561

31 Aug 16 Acc’nt Receivable Ctrl GJ1 1 270

Accounts Receivable Ledger of K Knight G Brook 1

10 Jul 16 Sales SJ1 2 981 2 981 dr



13 Aug 16 Sales SJ2 3 982 3 982 dr

M Druitt 2

1 Jul 16 A Johnson & Co GJ1 2 013 2 013 dr

12 Jul 16 Bank [receipt] CR1 2 013 0

P Enrith 3

1 Jul 16 A Johnson & Co GJ1 1 496 1496 dr


Discount Allowed & GST CR1 44 0 continued



Question 6.53 continued Accounts Receivable Ledger of K Knight continued

S Marys 4 1 Jul 16 A Johnson & Co GJ1 1 991 1 991 dr



10 Aug 16 Bank [payment] – cheque dishonoured CP2 397 1 397 dr

31 Aug 16 Bad Debts GJ1 1 270 127 dr


M Piddington 5 18 Jul 16 Sales SJ1 2 915 2 915 dr



Accounts Payable Ledger of K Knight V Heights 1

24 Jul 16 Purchase PJ1 946 946 cr

11 Aug 16 Purchase Return PJ2 33 913 cr




Kanangra Boyd 2 20 Jul 16 Purchase PJ1 1 881 1 881 cr

Lawson Stationery 3 13 Jul 16 Purchase PJ1 715 715 cr

25 Jul 16 Purchase PJ1 1 441 2 156 cr

7 Aug 16 Bank [payment] CP2 2 156 0

L Riverstone 4 6 Jul 16 Purchase PJ1 1 485 1 485 cr

4 Aug 16 Bank [payment] CP2 1 441 44 cr





Trial Balance of K Knight as at 31 July 2016

Bank 100 70 076 Accounts Receivable Control 101 7 293 Inventory 102 4 500 GST Receivable 103 588 Premises 150 22 000 Motor Vehicle 151 12 000 Goodwill 152 14 000 A Johnson & Co 200 58 000 Accounts Payable Control 201 6 468 GST Payable 202 1 079 Loan from New England Bank 250 30 000 Capital 300 35 000 Sales 400 10 070 Rent Received 410 760 Purchases 500 2 210 Advertising 520 1 710 Stationery 540 1 960 Wages 541 5 000 Discount Allowed 560 40 141 377 141 377

K Knight Accounts Receivable Listing

as at 31 July 2016

K Knight Accounts Payable Listing

as at 31 July 2016

G Brook 1 2 981 V Heights 1 946 S Marys 4 1 397 Kanangra Boyd 2 1 881 M Piddington 5 2 915 Lawson Stationery 3 2 156 7 293 L Riverstone 4 1 485

6 468




Trial Balance of K Knight as at 31 August 2016

Bank 100 11 310 Accounts Receivable Control 101 3 982 Inventory 102 4 500 GST Receivable 103 868 Premises 150 22 000 Motor Vehicle 151 12 000 Goodwill 152 14 000 Accounts Payable Control 201 2 541 GST Payable 202 1 809 Loan from New England Bank 250 30 000 Capital 300 35 000 Sales 400 16 260 Rent Received 410 1 520 Commission Received 411 1 760 Discount Received 412 40 Purchases 500 2 780 Advertising 520 1 710 Stationery 540 1 960 Wages 541 10 100 Telephone 542 2 270 Discount Allowed 560 180 Bad Debts 561 1 270 88 930 88 930

K Knight Accounts Receivable Listing


K Knight Accounts Payable Listing


G Brook 1 3 982 V Heights 1 660 Kanangra Boyd 2 1 881 2 541

Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 7


249

Chapter 7 Management controls over cash Question 7.1 The use of a cash register assists internal control over cash receipts in the following ways: • The transaction is recorded at the time of sale and a receipt is prepared for the customer. • The customer can see what price is entered and this acts as a deterrent to misappropriation by

the operator. • Bar codes eliminate keying errors. • A daily sales summary is provided for reconciliation with the cash register takings.

Question 7.2 A business verifies that its EFTPOS and credit card sales have been correctly credited by the bank by reconciling, on a daily basis, the total amount shown on the bank statement for EFTPOS and credit card sales with the relevant amounts on the cash register daily summaries.

Question 7.3 Security measures that can be employed in relation to cash receipts include (any one of the following): • Avoid banking at the same time every day. • Vary the route taken to the bank. • Rotate the duties of banking between several employees. • Choose a branch with adequate car parking facilities to minimise the distance that money has to

be transported on foot. • Ensure that a copy of the deposit slip is obtained and retained. • Use a specialist security firm such as Armaguard or Chubb to collect and bank receipts.

Question 7.4 Internal control measures that should exist over EFT payments include: • The responsibility for EFT payments should be restricted to a limited number

of individuals. • Individuals authorised to make EFT payments should be persons in authority who are not

involved in the processing of supplier invoices. • Access codes and passwords for the initiation of EFT payments should be kept in a secure place

and only made available to persons authorised to make EFT payments. • Prior to the payment of each EFT payment, the supporting documentation (orders, receiving

reports, invoices and credit or adjustment notes) should be reviewed by someone in authority who should authorise the payment in writing.

Question 7.5

Extract Cash Payments Journal of . . . CP . . Bank Petty

Cash

Cash – petty cash advance 300.00 300.00

Bank Petty Cash Payment 300 Bank [payment] 300



250

Question 7.6

General Journal of . . . GJ . . Petty Cash 500

Bank 500 Commencement of petty cash imprest float

Establishing a petty cash float increases petty cash and decreases bank; both are reported as current assets in the balance sheet.

Question 7.7

Petty Cash Book of L Baird Receipt Date Voucher Particulars Payment Travel

Exp GST

Receiv Staff Amen

Post-age

Station-ery

100.00 2 Mar 16 Advance, Cheque 861091

5 Mar 16 Taxi fares – travel 27.50 25.00 2.50

7 Mar 16 Milk & biscuits – staff amenities 9.10 0.60 8.50

15 Mar 16 Stamps – postage 13.50 1.23 12.27

21 Mar 16 Stationery 19.25 1.75 17.50

25 Mar 16 Stationery 8.25 0.75 7.50

77.60 25.00 6.83 8.50 12.27 25.00

31 Mar 16 Balance c/d 22.40

100.00 100.00

22.40 Balance b/d

77.60 31 Mar 16 Bank, Reimburse chq 861483

Extract Cash Payments Journal of L Baird CP 1

Bank Petty Cash

Travel Exp

GST Receiv

Staff Amen

Post-age

Statio-nery

2 Mar 16 091 Cash – petty cash advance 100.00 100.00

31 Mar 16 483 Cash – petty cash reimburse 77.60 25.00 6.83 8.50 12.27 25.00 177.60 100.00 25.00 6.83 8.50 12.27 25.00

Extract General Ledger of L Baird

Bank Petty Cash Payment 177.60 Bank [payment] 100.00

GST Receivable Travel Expenses Bank [payment] 6.83 Bank [payment] 25.00

Staff Amenities Postage Bank [payment] 8.50 Bank [payment] 12.27

Stationery

Bank [payment] 25.00



251

Question 7.8

Petty Cash Book of B Post Receipt Date Voucher Particulars Payment Station-

ery GST

Receiv Office Exp

Post-age

Staff Amen

Advert-ising

75.00 1 Feb 16 Balance b/d

4 Feb 16 Stationery 11.00 10.00 1.00

7 Feb 16 Sandwich platter – office exp 19.80 1.80 18.00

8 Feb 16 Postage supplies and stamps 6.05 0.55 5.50

10 Feb 16 Staff kitchen supplies – staff amen 18.70 1.70 17.00

12 Feb 16 Coffee and tea – staff amen 19.20 19.20

74.75 10.00 5.05 18.00 5.50 36.20

13 Feb 16 Balance c/d 0.25 75.00 75.00

0.25 Balance b/d 74.75 Bank, Reimburse chq 789456

14 Feb 16 Advertising 42.35 3.85 38.50

Stationery 8.80 8.00 0.80

15 Feb 16 Biscuits – staff amenities 18.15 1.65 16.50

69.30 8.00 6.30 16.50 38.50

Balance c/d 5.70 75.00 75.00

5.70 Balance b/d 69.30 Bank – Reimburse chq 789465

75.00 16 Feb 16 Bank – Advance chq 789485

17 Feb 16 Sandwich platter – office exp 22.00 2.00 20.00

20 Feb 16 Stationery 14.85 13.50 1.35

21 Feb 16 Postage 45.00 4.09 40.91

25 Feb 16 Advertising 22.55 2.05 20.50

27 Feb 16 Newspapers – office expense 42.35 3.85 38.50

146.75 13.50 13.34 58.50 40.91 20.50

Balance c/d 3.25 150.00 150.00

3.25 Balance b/d 146.75 Bank, Reimburse chq 789500

Express envelopes, stamps 83.05 7.55 75.50

28 Feb 16 Milk for the month – staff amen 40.80 40.80

123.85 7.55 75.50 40.80

Balance c/d 26.15 150.00 150.00

26.15 Balance b/d

123.85 Bank, Reimburse chq 789510



252


Extract Cash Payments Journal of B Post CP 1 Bank Petty

Cash Station

-ery GST

Receiv Office Exp

Post-age

Staff Amen

Advert-ising

13 Feb 16 456 Petty Cash – Reimburse 74.75 10.00 5.05 18.00 5.50 36.20

15 Feb 16 465 Petty Cash – Reimburse 69.30 8.00 6.30 16.50 38.50

16 Feb 16 485 Cash – Adv petty cash 75.00 75.00

27 Feb 16 500 Petty Cash – Reimburse 146.75 13.50 13.34 58.50 40.91 20.50

28 Feb 16 510 Petty Cash – Reimburse 123.85 7.55 75.50 40.80 489.65 75.00 31.50 32.24 76.50 121.91 93.50 59.00

Extract General Ledger of B Post

Bank Petty Cash Payment 489.65 Balance 75.00 Bank [payment] 75.00 150.00

GST Receivable Stationery Bank [payment] 32.24 Bank [payment] 31.50

Office Expenses Postage Bank [payment] 76.50 Bank [payment] 121.91

Staff Amenities Advertising Bank [payment] 93.50 Bank [payment] 59.00

Question 7.9

Petty Cash Reimbursement on 31 March 2016 Travel Exp Staff Amenities Postage Stationery GST Receiv

25.00 8.50 12.27 17.50 2.50 Summary: 7.50 0.60 Travel Expense 25.00 25.00 1.23 Staff Amenities 8.50 1.75 Postage 12.27 0.75 Stationery 25.00 6.83 GST Receivable 6.83 #861483 77.60 Cash on hand 22.40 Petty cash imprest float 100.00



253

Question 7.10

Petty Cash Reimbursement on 13 February 2016 Stationery Office Expense Postage Staff Amenities GST Receivable

10.00 18.00 5.50 17.00 1.00 Summary: 19.20 1.80 Stationery 10.00 36.20 0.55 Office Expense 18.00 1.70 Postage 5.50 5.05 Staff Amenities 36.20 GST Receivable 5.05 #789456 74.75 Cash on hand 0.25

Petty cash imprest float 75.00

Petty Cash Reimbursement on 15 February 2016

Advertising Stationery Staff Amenities GST Receiv 38.50 8.00 16.50 3.85

Summary: 0.80 Advertising 38.50 1.65 Stationery 8.00 6.30 Staff Amenities 16.50 GST Receivable 6.30 #789465 69.30 Cash on hand 5.70

Petty cash imprest float 75.00

Petty Cash Reimbursement on 27 February 2016

Office Exp Stationery Postage Advertising GST Receiv 20.00 13.50 40.91 20.50 2.00

38.50 1.35 58.50 4.09

Summary: 2.05 Office Expense 58.50 3.85 Stationery 13.50 13.34 Postage 40.91 Advertising 20.50 GST Receivable 13.34 #789500 146.75 Cash on hand 3.25 Petty cash imprest float 150.00



254


Petty Cash Reimbursement on 28 February 2016 Postage Staff Amenities GST Receiv 75.50 40.80 7.55

Summary:

Postage 75.50 Staff Amenities 40.80 GST Receivable 7.55 #789510 123.85 Cash on hand 26.15 Petty cash imprest float 150.00

Question 7.11

Bank Reconciliation of R Dartmouth as at 30 November 2016

Credit balance as per bank statement 90.00 add Outstanding deposit 20.00 110.00 less Unpresented cheques 437090 15.00 437093 25.00 40.00

Debit balance on general ledger Bank a/c 70.00

Cash Balance Summary as at 30 November 2016

Debit Bank balance 1–11–2016 50.00 add Receipts 200.00 250.00 less Payments 180.00 Debit balance on general ledger Bank a/c 70.00

Question 7.12

Bank Reconciliation of M Hope as at 28 February 2016

Credit balance as per bank statement 400.00 add Outstanding deposit 100.00 500.00 less Unpresented cheques 286001 90.00 286005 260.00 350.00 Debit balance on general ledger Bank a/c 150.00



255


Cash Balance Summary as at 28 February 2016

Debit Bank balance 1–2–2016 600.00 add Receipts 850.00 1 450.00 less Payments 1 300.00 Debit balance on general ledger Bank a/c 150.00

Question 7.13

Bank Reconciliation of M Seaview as at 31 July 2016

Credit balance as per bank statement 1 642 add Outstanding deposit 170 1 812 less Unpresented cheques 405655 622 405656 126 748

Debit balance on general ledger Bank a/c 1 064

Cash Balance Summary as at 31 July 2016

Debit Bank balance 1–7–2016 892 add Receipts 1 422 2 314 less Payments 1 250 Debit balance on general ledger Bank a/c 1 064

Extract General Ledger of M Seaview Bank

1 Jul 16 Balance b/d 892 31 Jul 16 Payments CP. 1 250

31 Jul 16 Receipts CR. 1 422 Balance c/d 1 064

2 314 2 314


Question 7.14

Bank Reconciliation of R Bega as at 30 September 2016

Credit balance as per bank statement 2 532 add Outstanding deposit 291 2 823 less Unpresented cheques 671800 645 671801 580 1 225

Debit balance on general ledger Bank a/c 1 598



256


Cash Balance Summary as at 30 September 2016

Debit Bank balance 1–9–2016 581 add Receipts 3 526 4 107 less Payments 2 509 Debit balance on general ledger Bank a/c 1 598

Question 7.15

Bank Reconciliation of M Drysdale as at 30 June 2016

Credit balance as per bank statement 277.34 add Outstanding deposit 913.41 1 190.75 less Unpresented cheques 921356 192.19 921358 540.83 733.02 Debit balance on general ledger Bank a/c 457.73

Cash Balance Summary as at 30 June 2016

Debit Bank balance 1–6–2016 471.52 add Receipts 5 439.45 5 910.97 less Payments 5 453.24 Debit balance on general ledger Bank a/c 457.73

Extract General Ledger of M Drysdale Bank

1 Jun 16 Balance b/d 471.52 30 Jun 16 Payments CP. 5 453.24

30 Jun 16 Receipts CR. 5 439.45 Balance c/d 457.73

5 910.97 5 910.97

1 Jul 16 Balance b/d 457.73

Question 7.16

Bank Reconciliation of L Omeo as at 30 April 2016

Credit balance as per bank statement 2 186.48 add Outstanding deposit 761.68 2 948.16 less Unpresented cheques 109653 935.07 109660 32.29 109661 974.53 1 941.89

Debit balance on general ledger Bank a/c 1 006.27



257


Cash Balance Summary as at 30 April 2016

Debit Bank balance 1–4–2016 881.16 add Receipts 7 733.95 8 615.11 less Payments 7 608.84 Debit balance on general ledger Bank a/c 1 006.27

Extract General Ledger of L Omeo Bank

1 Apr 16 Balance b/d 881.16 30 Apr 16 Payments CP. 7 608.84

30 Apr 16 Receipts CR. 7 733.95 Balance c/d 1 006.27

8 615.11 8615.11

1 May 16 Balance b/d 1006.27

Question 7.17

Bank Reconciliation of R Towamba as at 31 August 2016

Credit balance as per bank statement 617.60 add Outstanding deposit 24.86 642.46 less Unpresented cheques 112060 360.81 112063 552.61 112065 743.03 1 656.45

Credit balance on general ledger Bank a/c (1 013.99)

Cash Balance Summary as at 31 August 2016

Debit Bank balance 1–8–2016 636.59 add Receipts 3 394.12 4 030.71 less Payments 5 044.70 Credit balance as per ledger Bank a/c (1 013.99)

Extract General Ledger of R Towamba Bank

1 Aug 16 Balance b/d 636.59 31 Aug 16 Payments CP. 5 044.70

31 Aug 16 Receipts CR. 3 394.12

Balance c/d 1 013.99

5 044.70 5 044.70

1 Sep 16 Balance b/d 1 013.99



258


Shown as information only; not required by question.

Extract Cash Receipts Journal of R Towamba

Extract Cash Payments Journal of R Towamba

2 Aug 16 Cash/cheques deposit 254.39 1 Aug 16 Chq 112062 7.45

9 Aug 16 Direct deposit B Jarrahdale 272.79 7 Aug 16 BPay B Ascot 688.29

10 Aug 16 Cash/cheques deposit 367.32 10 Aug 16 BPay B Bayswater 486.53

11 Aug 16 NatAus Point of Sale 588.68 15 Aug 16 Debit card #3525208 500.20

21 Aug 16 NatAus Point of Sale 999.08 Chq 112063 552.61



30 Aug 16 Direct deposit L Urana 250.00 15 Aug 16 Transfer to M Coolangatta 1 328.50 3 394.12 31 Aug 16 Overdraft interest 2.83 Bank charges 6.98 5 044.70

Question 7.18

Bank Reconciliation of R Genoa as at 31 October 2016

Debit balance as per bank statement (1 769.74) add Outstanding deposit 1 117.85

(651.89) less Unpresented cheque 944514 518.17 518.17

Credit balance as per ledger Bank a/c (1 170.06)

Cash Balance Summary as at 31 October 2016

Debit Bank balance 1–10–2016 102.53 add Receipts 3 085.65

3 188.18 less Payments 4 358.24

Credit balance as per Bank account (1 170.06)


Extract Cash Receipts Journal of R Genoa

Extract Cash Payments Journal of R Genoa

10 Oct 16 NatAus Point of Sale 418.89 3 Oct 16 Chq 944512 551.89

12 Oct 16 Cash/cheques deposit 168.35 5 Oct 16 Debit card #1520352 854.18


30 Oct 16 Cash/cheques deposit 909.85 9 Oct 16 Chq 944514 518.17

31 Oct 16 Cash/cheques deposit 1 117.85 15 Oct 16 BPay W Eglinton 252.34

12 Oct 16 Correction 168.35 s/b 169.35 1.00 21 Oct 16 BPay P Ashendon 928.43

15 Oct 16 Peter Devenish direct d it

187.76 10 Oct 16 Transfer to R David 458.15 3 085.65 31 Oct 16 Bank charges 4.56 Bank fee 25.00 4 358.24



259

Question 7.19

Bank Reconciliation of R Snowy as at 28 February 2016

Credit balance as per bank statement 2 589.28 less Bank error in deposit to account 2 569.17

Credit balance as corrected 20.11 add Outstanding deposit 328.69

348.80 less Unpresented cheques

895957 116.45

895964 219.60

895967 562.42 898.47

Credit balance as per Bank account (549.67)

Cash Balance Summary as at 28 February 2016

Debit Bank balance 1–2–2016 (144.68) add Receipts 3 588.24

3 443.56 less Payments 3 993.23

Credit balance as per Bank account (549.67)

Extract General Ledger of R Snowy Bank

28 Feb 16 Receipts CR. 3 588.24 1 Feb 16 Balance b/d 144.68 Balance c/d 549.67 28 Feb 16 Payments CP. 3 993.23

4 137.91 4 137.91

1 Mar 16 Balance b/d 549.67 Shown as information only; not required by question.

Extract Cash Receipts Journal of R Snowy

Extract Cash Payments Journal of R Snowy

4 Feb 16 NatAus Point of Sale 653.04 1 Feb 16 Debit card #2115203 625.86

6 Feb 16 Cash/cheques deposit 946.23 7 Feb 16 Chq 895965 522.90

7 Feb 16 Direct deposit P Subiaco 878.43 13 Feb 16 Chq 895966 735.47

15 Feb 16 Cash/cheques deposit 257.08 20 Feb 16 Chq 895967 562.42

20 Feb 16 NatAus Point of Sale 244.77 23 Feb 16 BPay S Cardup 328.69

28 Feb 16 Cash/cheques deposit 328.69 26 Feb 16 BPay P Daglish 588.92

15 Feb 16 M Keira direct deposit 280.00 9 Feb 16 Chq dishonour L Cullivel 205.06 3588.24 Fee cheque dishonoured 7.50 13 Feb 16 Reversal error chq 895966 (735.47) Correction chq 895966 753.47 21 Feb 16 Transfer to M Druitt 392.38 28 Feb 16 Bank charges 6.03 3993.23



260

Question 7.20 Bank Reconciliation of R Wakool


Debit balance as per bank statement (885.21) add Outstanding deposit 160.57 (724.64) less Unpresented cheques 531484 165.30 531488 254.24 531490 607.10 531492 952.03 1 978.67


Cash Balance Summary as at 31 October 2016

Credit Bank balance 1–10–2016 (1 037.69) add Receipts 2 666.83 1 629.14 less Payments 4 332.45 Credit balance as per Bank account (2 703.31)


Extract Cash Receipts Journal of R Wakool

Extract Cash Payments Journal of R Wakool


8 Oct 16 Cash/cheques deposit 207.90 5 Oct 16 BPay K Bertram 985.27

10 Oct 16 Direct dep M Booragoon 302.77 6 Oct 16 Chq 531490 607.10

12 Oct 16 Cash/cheques deposit 68.29 8 Oct 16 Debit card #3328795 424.57

15 Oct 16 Cash/cheques deposit 462.53 9 Oct 16 Chq 531491 83.96

20 Oct 16 NatAus Point of Sale 642.36 12 Oct 16 Debit card #3121437 367.64

28 Oct 16 Cash/cheques deposit 160.57 15 Oct 16 BPay B Swan 78.39

8 Oct 16 Deposit 207.90 s/b 207.09 (0.81) 29 Oct 16 Chq 531492 952.03 2 666.83 30 Oct 16 Chq 531493 219.44

13 Oct 16 Chq dishonour L Albacutya 105.79 Fee cheque dishonoured 7.50 31 Oct 16 Bank fee 16.50 Bank charge 5.40 Interest on overdraft 24.80 4 332.45



261

Question 7.21 Bank Reconciliation of R Buchan


Debit balance as per bank statement (3 105.33) add back Error in transfer debit 3 578.95 Credit balance as corrected 473.62 add Outstanding deposit 1 086.30 1 559.92 less Unpresented cheques 335093 625.45 335094 639.57 1 265.02

Debit balance as per Bank account 294.90

Cash Balance Summary as at 31 December 2016

Debit Bank balance 1–12–2016 161.05 add Receipts 7 267.05 7 428.10 less Payments 7 133.20 Debit balance as per Bank account 294.90


Extract Cash Receipts Journal of R Buchan

Extract Cash Payments Journal of R Buchan

1 Dec 16 Cash/cheques deposit 958.36 3 Dec 16 Chq 335090 511.35

10 Dec 16 NatAus Point of Sale 576.83 5 Dec 16 Chq 335091 737.31

12 Dec 16 NatAus Point of Sale 294.14 9 Dec 16 BPay S Brigadoon 956.52

15 Dec 16 Cash/cheques deposit 799.71 11 Dec 16 Chq 335092 107.44

20 Dec 16 Direct deposit C Stirling 366.01 18 Dec 16 Debit card #1403396 978.10

23 Dec 16 Cash/cheques deposit 895.91 20 Dec 16 BPay S Crawley 482.36

27 Dec 16 Cash/cheques deposit 857.62 27 Dec 16 Debit card #1414051 794.43

31 Dec 16 Cash/cheques deposit 1 586.30 31 Dec 16 Chq 335093 625.45

1 Dec 16 Dep 958.36 s/b 958.63 0.27 Chq 335094 639.57

25 Dec 16 M Towrang direct dep 1 431.90 10 Dec 16 Transfer to M Fairy 1 255.67 7 267.05 5 Dec 16 Chq 335091 error (737.31) Chq 335091 correction 773.31 31 Dec 16 Bank charges 4.00 Interest on overdraft 5.00 7133.20



262

Question 7.22

Petty Cash Book of Win Dsor Receipt Date Voucher Particulars Pay-

ment Staff Amen

GST Receiv

Travel Exp

Post-age

Office Exp

Statio-nery

210.00 1 Mar 16 Balance b/d 4 Mar 16 Milk – staff amenities 6.30 6.30 6 Mar 16 Train fare to city – travel exp 12.65 1.15 11.50 8 Mar 16 Postage 9.00 0.82 8.18 10 Mar 16 Sandwich platter for meeting 22.00 2.00 20.00 11 Mar 16 Stationery 6.60 0.60 6.00 13 Mar 16 Photocopying – stationery 16.50 1.50 15.00 15 Mar 16 Pads, envelopes – stationery 19.25 1.75 17.50 18 Mar 16 Taxi fare – travel expense 29.15 2.65 26.50 19 Mar 16 Postage 28.60 2.60 26.00 20 Mar 16 Milk – staff amenities 10.50 10.50 25 Mar 16 Coffee, tea, sugar – staff amen 21.30 21.30 30 Mar 16 Newspapers – office expense 27.50 2.50 25.00 209.35 38.10 15.57 38.00 34.18 45.00 38.50

31 Mar 16 Balance c/d 0.65 210.00 210.00

0.65 Balance b/d

209.35 Bank, Reimbursem’t chq 147852

Extract Cash Payments Journal of Win Dsor CP 1

Bank Staff Amen

GST Receiv

Travel Exp

Post-age

Office Exp

Stationery

31 Mar 16 852 Petty Cash Reimbursem’t 209.35 38.10 15.57 38.00 34.18 45.00 38.50

Extract General Ledger of Win Dsor

Bank Petty Cash Payment 209.35 Balance 210.00

GST Receivable Staff Amenities

Bank [payment] 15.57 Bank [payment] 38.10

Travel Expenses Postage


Office Expenses Stationery




263

Question 7.23 Petty Cash Book of Dorothy Ahkoi

Receipt Date Voucher Particulars Pay-ment

Staff Amen

GST Receiv

Post-age

Statio-nery

Travel Exp

Office Exp

100.00 1 May 16 Bank, Advance chq 753214 2 May 16 Milk, tea, coffee – staff amen 27.55 27.55 3 May 16 Detergent, sponge – staff amen 9.90 9.00 0.90 5 May 16 Postage 45.00 4.09 40.91 6 May 16 Stationery 16.50 1.50 15.00 98.95 36.55 6.49 40.91 15.00 7 May 16 Balance c/d 1.05

100.00 100.00 1.05 Balance b/d

98.95 Bank, Reimburse chq 753257 150.00 Bank – Advance chq 753257

15 May 16 Taxi fare – travel expense 52.25 4.75 47.50 17 May 16 Milk – staff amenities 5.20 5.20 18 May 16 Newspapers – office expense 34.65 3.15 31.50 20 May 16 Travel expenses 75.90 6.90 69.00 23 May 16 Postage 18.70 1.70 17.00 25 May 16 Food platter for meetings 29.70 2.70 27.00 27 May 16 Milk, coffee, biscuits – staff amen 13.85 13.35 0.50 230.25 18.55 19.70 17.00 116.50 58.50 31 May 16 Balance c/d 19.75

250.00 250.00 19.75 Balance b/d

230.25 Bank, Reimburse chq 753368

Extract Cash Payments Journal of Dorothy Ahkoi CP 1

Bank Petty Cash

Staff Amen

GST Receiv

Post-age

Statio-nery

Travel Exp

Office Exp

1 May 16 214 Cash – Advance petty cash 100.00 100.00

7 May 16 257 Petty Cash – Reimbursem’t 248.95 150.00 36.55 6.49 40.91 15.00

31 May 16 368 Petty Cash – Reimbursem’t 230.25 18.55 19.70 17.00 116.50 58.50 579.20 250.00 55.10 26.19 57.91 15.00 116.50 58.50

Extract General Ledger of Dorothy Ahkoi Bank Petty Cash

Payment 579.20 Bank [payment] 250.00

GST Receivable Staff Amenities Bank [payment] 26.19 Bank [payment] 55.10

Postage Stationery Bank [payment] 57.91 Bank [payment] 15.00

Travel Expenses Office Expenses Bank [payment] 116.50 Bank [payment] 58.50



264

Question 7.24

Bank Reconciliation of R Tambo as at 30 April 2016

Debit balance as per bank statement (3 164.75) add Outstanding deposit 0.00 (3 164.75) less Unpresented cheques 245481 21.33 245490 647.28 245491 659.52 1 328.13


Cash Balance Summary as at 30 April 2016

Debit Bank balance 1–4–2016 73.65 add Receipts 1 548.31 1 621.96 less Payments 6 114.84 Credit balance as per Bank account (4 492.88)


Extract Cash Receipts Journal of R Tambo

Extract Cash Payments Journal of R Tambo

5 Apr 16 NatAus Point of Sale 553.30 2 Apr 16 Chq 245487 647.59

10 Apr 16 Cash/cheques deposit 174.80 Chq 245488 563.01

18 Apr 16 NatAus Point of Sale 254.96 5 Apr 16 Chq 245489 911.57

20 Apr 16 Cash/cheques deposit 211.54 Debit card #142936 408.76

29 Apr 16 Direct deposit C Atwell 343.71 8 Apr 16 Chq 245490 647.28

10 Apr 16 Dep 174.80 s/b 184.80 10.00 28 Apr 16 BPay C Kalamunda 739.49 1 548.31 29 Apr 16 Chq 245491 659.52 6 Apr 16 M Kembla chq dishonour 679.06 Cheque dishonour fee 7.50 12 Apr 16 Transfer to M Horeb 659.50 30 Apr 16 Bank fee 135.00 Cheque book 25.00 Bank charges 2.06 Overdraft interest 29.50 6 114.84



265

Question 7.25

Bank Reconciliation of R Broken as at 30 November 2016

Debit balance as per bank statement (1 001.97) add back Error in transfer debit 758.35 Debit balance as per bank statement (243.62) add Outstanding deposit 1 622.57 1 378.95 less Unpresented cheques 433581 459.39 433586 305.86 433593 82.63 847.88 Debit balance as per Bank account 531.07

Cash Balance Summary as at 30 November 2016

Credit Bank balance 1–11–2016 (523.71) add Receipts 5 194.77 4 671.06 less Payments 4 139.99 Debit balance as per Bank account 531.07


Extract Cash Receipts Journal of R Broken

Extract Cash Payments Journal of R Broken

2 Nov 16 NatAus Point of Sale 649.37 1 Nov 16 Chq 433590 156.30

10 Nov 16 NatAus Point of Sale 910.97 2 Nov 16 Chq 433591 94.48

20 Nov 16 Cash/cheques deposit 505.32 3 Nov 16 BPay B Cloverdale 216.31

27 Nov 16 Direct deposit M Bailup 543.98 4 Nov 16 Chq 433592 70.36

29 Nov 16 Cash/cheques deposit 1 622.57 5 Nov 16 BPay S Dayton 1 279.89

20 Nov 16 Direct deposit M Olive 962.56 6 Nov 16 Chq 433593 82.63 5 194.77 10 Nov 16 Debit card #204814 398.17 20 Nov 16 Debit card #225672 532.98 5 Nov 16 Transfer to M Lewis 1 284.90 4 Nov 16 Chq 433592 reversal (70.36) Chq 433592 correction 71.36 27 Nov 16 Overdraft interest 15.42 Bank charges 7.55 4 139.99



266

Question 7.26

Bank Reconciliation of R Nickolson as at 31 August 2016

Debit balance as per bank statement (1 537.88) add Outstanding deposit 807.52 (730.36) less Unpresented cheques 335387 705.02 335395 745.35 335397 832.93 2 283.30


Cash Balance Summary as at 31 August 2016

Debit Bank balance 1-8-2016 639.48 add Receipts 4 051.93 4 691.41 less Payments 7 705.07 Credit balance as per Bank account (3 013.66)


Extract Cash Receipts Journal of R Nickolson

Extract Cash Payments Journal of R Nickolson

2 Aug 16 NatAus Point of Sale 403.56 2 Aug 16 Chq 335393 811.22

8 Aug 16 Cash/cheques deposit 997.96 7 Aug 16 BPay M Bicton 1 266.44

10 Aug 16 NatAus Point of Sale 140.13 12 Aug 16 BPay E Fremantle 285.39


28 Aug 16 NatAus Point of Sale 348.78 19 Aug 16 Chq 335395 745.35


5 Aug 16 Direct deposit R Edwards 547.00 31 Aug 16 Chq 335397 832.93

8 Aug 16 Dep 997.96 s/b 997.69 (0.27) Debit card #150923 817.92

17 Aug 16 Dep 870.25 s/b 807.25 (63.00) 9 Aug 16 M White chq dishonour 176.00 4 051.93 Fee dishonoured cheque 7.50

15 Aug 16 Chq 335394 reversal (928.60) Chq 335394 correction 982.60 17 Aug 16 Bank fee 25.00 20 Aug 16 Transfer to L Boga 1 182.20 31 Aug 16 Bank charge 125.00 Bank fees 5.40 Overdraft interest 15.60 7 705.07



267

Chapter 8 The general ledger and financial reports Question 8.1 a. The trading and profit and loss accounts are actual general ledger accounts. True b. The amount to close the trading account is transferred to the capital account. False c. Net profit closes the profit and loss account. True d. The balance sheet general ledger account is in the owner’s equity part of the chart of accounts.

False e. The balance sheet comes from the accounting equation of A = L + OE. True f. The balance sheet shows what the business owns and owes. True g. Current assets in the balance sheet are expected to still be in use by the business after

12 months. False h. Non-current liabilities are deducted from the current liabilities. False i. The owners’ equity in the balance sheet has the net profit added to it. True j. The trading account provides the first profit; that is the selling price less the cost of those goods

that have been sold. True k. The profit and loss account includes the gross profit amount. True

Question 8.2

General Journal of . . . GJ . . Sales 10 000 Trading 10 000 Balance on sales closed to trading account

Sales Trading

Trading 10 000 Balance 10 000 Sales 10 000

Question 8.3

General Journal of . . . GJ . . Sales 25 000 Trading 25 000 Balance on sales a/c closed to trading account

Sales Trading

Trading 25 000 Balance 25 000 Sales 25 000

Question 8.4

General Journal of . . . GJ . . Sales 7 000 Sales Returns and Allowances 7 000 Sales returns and allowances a/c closed to sales

Sales 48 000 Trading 48 000 Net Balance on sales a/c closed to trading a/c



268

Question 8.4 finalised Extract General ledger of . . .

Sales Sales Returns and Allowances Sale Return 7 000 Balance 55 000 Balance 7 000 Sales 7 000

Trading 48 000 55 000 55 000

Trading Sales 48 000

Question 8.5 General Journal of . . . GJ . .

Trading 18 000 Inventory [opening] 2 000 Purchases 15 000 Customs Duty 600 Freight Inwards 400 Balances closed out to trading account

Inventory Purchases

Balance open 2 000 Trading 2 000 Balance 15 000 Trading 15 000 Customs Duty Freight Inwards Balance 600 Trading 600 Balance 400 Trading 400

Trading Inventory [opening] 2 000 Purchases 15 000 Customs Duty 600 Freight Inwards 400


Trading 40 450 Inventory [opening] 4 500 Purchases 33 750 Duty and Wharfage 1 350 Cartage Inwards 850 Balances closed out to trading account

Inventory Purchases

Balance open 4 500 Trading 4 500 Balance 33 750 Trading 33 750 Duty and Wharfage Cartage Inwards Balance 1 350 Trading 1 350 Balance 850 Trading 850

Trading Inventory [opening] 4 500 Purchases 33 750 Duty & Wharfage 1 350 Cartage Inwards 850



269

Question 8.7

General Journal of . . . GJ . . Purchases Returns and Allowances 15 000 Purchases 15 000 Returns & allowances closed to purchases a/c

Trading 82 800 Inventory [opening] 17 500 Purchases 60 000 Cartage Inwards 5 300 Balances closed out to trading account

Inventory Purchases

Balance open 17 500 Trading 17 500 Balance 75 000 Returns 15 000

Trading 60 000 75 000 75 000

Purchase Return and Allowances Cartage Inwards Purchases 15 000 Balance 15 000 Balance 5 300 Trading 5 300

Trading Inventory [opening] 17 500 Purchases 60 000

Cartage Inwards 5 300

Question 8.8

General Journal of . . . GJ . . Inventory [closing] 2 400 Trading 2 400 Closing inventory as per physical stocktake

Inventory Trading

Balance open 2 000 Trading 2 000 Inventory open 2 000 Inventory close 2 400

Trading 2 400

Question 8.9

General Journal of . . . GJ . . Inventory [closing] 4 900 Trading 4 900 Closing inventory as per physical stocktake

Inventory Trading

Trading 4 900 Inventory close 4 900



270

Question 8.10

General Journal of . . . GJ . . Sales 25 000 Trading 25 000 Sales account closed out to trading

Trading 14 500 Inventory [opening] 2 100 Purchases 11 000 Freight Inwards 1 100 Wharfage Charges 300 Balances closed out to trading account

Inventory [closing] 2 300 Trading 2 300 Closing inventory as per physical stocktake

Inventory Sales

Balance open 2 100 Trading 2 100 Trading 25 000 Balance 25 000

Trading 2 300

Purchase Freight Inwards Balance 11 000 Trading 11 000 Balance 1 100 Trading 1 100

Wharfage Charges Balance 300 Trading 300

Trading

Inventory [opening] 2 100 Sales 25 000 Purchases 11 000 Inventory [closing] 2 300 Freight Inwards 1 100 Wharfage Charges 300

Question 8.11


Trading 17 400 Inventory [opening] 2 500 Purchases 13 200 Customs Duty 1 200 Freight Inwards 500 Balances closed out to trading account




271

Question 8.11 finalised General Ledger of . . .

Inventory Sales Balance open 2 500 Trading 2 500 Trading 30 000 Balance 30 000

Trading 2 800 Purchase Customs Duty

Balance 13 200 Trading 13 200 Balance 1 200 Trading 1 200

Freight Inwards

Balance 500 Trading 500

Trading

Inventory [opening] 2 500 Sales 30 000 Purchases 13 200 Inventory [closing] 2 800 Customs Duty 1 200 Freight Inwards 500

Question 8.12 Inventory [opening] 800 Purchases 4 000 Freight Inwards 100 4 900 less Inventory [closing] 1 000 Cost of the goods that were sold 3 900

Question 8.13 Inventory [opening] 3 850 Purchases 28 500 Cartage Inwards 850 Import Duty and Costs 3 750 36 950 less Inventory [closing] 4 100 Cost of the goods that were sold 32 850


Sales 32 000 Trading 32 000 Sales account closed out to trading

Trading 19 500 Cost of Goods Sold 19 500 Cost of goods sold account closed out to trading account

Sales Cost of Goods Sold

Trading 32 000 Balance 32 000 Balance 19 500 Trading 19 500

Trading Cost of Goods Sold 19 500 Sales 32 000



272

Question 8.15





Trading Cost of Goods Sold 44 100 Sales 73 500

Question 8.16a periodic inventory applies Sales 10 000 less Cost of Goods Sold 4 600 Gross Profit 5 400

Question 8.16b perpetual inventory applies Sales 10 000 less Cost of Goods Sold 4 600 Gross Profit 5 400

Question 8.17a periodic inventory applies Sales 15 000 less Cost of Goods Sold Inventory [opening] 500 Purchases 6 000 Cartage Inwards 100 6 600 less Inventory [closing] 700 Cost of goods sold 5 900 Gross Profit 9 100

Question 8.17b perpetual inventory applies Sales 30 000 less Cost of Goods Sold 11 600 Gross Profit 18 400

Question 8.18

General Journal of . . . GJ . . Trading 17 000 Profit and Loss 17 000 Gross profit closed out to profit and loss



273

Question 8.19

General Journal of . . . GJ . . Trading 12 800

Profit and Loss 12 800 Trading account closed and gross profit to profit and loss

Trading

Inventory [opening] 2 100 Sales 25 000 Purchases 11 000 Inventory [closing] 2 300

Freight Inwards 1 100

Wharfage Charges 300

P & L [gross profit] 12 800 27 300 27 300

Question 8.20



Trading

Inventory [opening] 2 500 Sales 30 000 Purchases 13 200 Inventory [closing] 2 800

Customs Duty 1 200

Freight Inwards 500

P & L [gross profit] 15 400 32 800 32 800

Profit and Loss Trading [gross profit] 15 400

Question 8.21



Trading

Cost of Goods Sold 19 500 Sales 32 000 P & L [gross profit] 12 500 32 000 32 000




274

Question 8.22

General Journal of . . . GJ . . Trading 29 400 Profit and Loss 29 400 Trading account closed and gross profit to profit and loss

Trading

Cost of Goods Sold 44 100 Sales 73 500 P & L [gross profit] 29 400 73 500 73 500


Question 8.23


Trading 16 300 Inventory [opening] 800 Purchases 15 000 Cartage Inwards 500 Balances closed out to trading account

Inventory [closing] 700 Trading 700 Closing inventory as per physical stocktake

Trading 19 400 Profit and Loss 19 400 Trading account closed and gross profit to profit and loss

Inventory Sales

Balance open 800 Trading 800 Trading 35 000 Balance 35 000

Trading 700 Purchase Cartage Inwards

Balance 15 000 Trading 15 000 Balance 500 Trading 500

Trading

Inventory [opening] 800 Sales 35 000 Purchases 15 000 Inventory [closing] 700 Cartage Inwards 500 P & L [gross profit] 19 400 35 700 35 700




275

Question 8.24


Trading 31 827 Inventory [opening] 4 991 Purchases 24 759 Customs Duty 1 708 Freight Inwards 369 Balances closed out to trading account


Trading 33 000 Profit and Loss 33 000 Gross profit transferred to profit and loss account

Question 8.25



Trading 19 400 Profit and Loss 19 400 Trading account closed and gross profit to profit and loss a/c



Trading Cost of Goods Sold 15 600 Sales 35 000 P & L [gross profit] 19 400 35 000 35 000




276

Question 8.26

General Journal of . . . GJ . . Sales 58 774 Trading 58 774 Sales account closed out to trading account


Trading 33 000 Profit and Loss 33 000 Trading account closed and gross profit to profit and loss



Trading Cost of Goods Sold 25 774 Sales 58 774 P & L [gross profit] 33 000 58 774 58 774


Question 8.27

General Journal of . . . GJ . . Discount Received 400 Interest Received 350 Commission Received 700 Dividend Received 800 Profit and Loss 2 250 Accounts closed to profit and loss account

Discount Received Interest Received

Profit & Loss 400 Balance 400 Profit & Loss 350 Balance 350

Commission Received Dividend Received


Profit and Loss Discount Received 400 Interest Received 350 Commission Received 700 Dividend Received 800



277

Question 8.28

General Journal of . . . GJ . . Discount Received 800 Rent Received 700 Bad Debts Recovered 600 Profit and Loss 2 100 Accounts closed to profit and loss account

Discount Received Rent Received


Bad Debts Recovered

Profit & Loss 600 Balance 600

Profit and Loss Discount Received 800 Rent Received 700 Bad Debts Recovered 600

Question 8.29a periodic inventory applies

Extract General Journal of W Woog GJ 1 31 Dec 16 Sales 42 933

Trading 42 933 Sales closed out to trading account Trading 16 716 Inventory [opening] 1 789 Purchases 13 626 Freight Inwards 763 Wharfage and Landing Charges 538 Balances closed to trading account Inventory [closing] 1 584 Trading 1 584 Closing inventory as per physical stocktake Trading 27 801 Profit and Loss 27 801 Trading account closed and gross profit to profit and loss account Discount Received 367 Interest Received 687 Profit and Loss 1 054 Accounts closed to profit and loss account



278

Question 8.29b perpetual inventory applies Extract General Journal of W Woog GJ 1

31 Dec 16 Sales 42 933 Trading 42 933 Sales closed to trading account Trading 15 132 Cost of Goods Sold 15 132 Cost of goods sold closed to trading account Trading 27 801 Profit and Loss 27 801 Trading closed and gross profit to profit and loss account Discount Received 367 Interest Received 687 Profit and Loss 1 054 Accounts closed to profit and loss account


Profit and Loss 18 300 Advertising 500 Electricity 800 Wages 10 000 Rent 5 000 Interest 2 000 Accounts closed to profit and loss account

Advertising Electricity

Balance 500 Profit & Loss 500 Balance 800 Profit & Loss 800

Wages Rent

Balance 10 000 Profit & Loss 10 000 Balance 5 000 Profit & Loss 5 000

Interest

Balance 2 000 Profit & Loss 2 000

Profit and Loss Advertising 500 Electricity 800 Wages 10 000 Rent 5 000 Interest 2 000


Profit and Loss 29 000 Sales Salaries 15 000 Office Salaries 12 000 Stationery 1 000 Discount Allowed 200 Bad Debts 800 Accounts closed to profit and loss account



279


Extract General Ledger of . . . Sales Salaries Office Salaries


Stationery Discount Allowed

Balance 1 000 Profit & Loss 1 000 Balance 200 Profit & Loss 200

Bad Debts

Balance 800 Profit & Loss 800

Profit and Loss Sales Salaries 15 000 Office Salaries 12 000 Stationery 1 000 Discount Allowed 200 Bad Debts 800

Question 8.32 Sales 25 000 less Cost of goods sold 10 000 Gross Profit 15 000 less Expenses 13 000 Net Profit 2 000

General Journal of . . . GJ . .

Profit and Loss 2 000 Capital 2 000 Profit & Loss a/c closed; net profit transferred to capital a/c

Question 8.33

General Journal of . . . GJ . . Profit and Loss 7 000 Capital 7 000 Profit & Loss a/c closed; net profit transferred to capital a/c

Question 8.34

General Journal of . . . GJ . . Capital 2 500 Drawings 2 500 Drawings closed out to capital



280

Question 8.35a periodic inventory applies General Journal of R Jones GJ 1

31 Dec 16 Sales 62 231 Trading 62 231 Sales closed out to trading account

Trading 35 591 Inventory [opening] 3 310 Purchases 29 949 Freight Inwards 2 332 Balances closed to trading account



General Journal of R Jones GJ 2

31 Dec 16 Rent Received 3 177 Interest Received 930 Profit and Loss 4 107 Accounts closed to profit and loss account

Profit and Loss 19 530 Sales Salaries 5 940 Freight Outwards 2 591 Office Salaries 8 142 Vehicle Expenses 1 591 Stationery 181 Insurance 159 Postage and Telephone 376 Interest 391 Bad Debts 159 Balances closed to profit and loss

Profit and Loss 14 107 Capital 14 107 Net profit transferred to capital account

Capital 2 100 Drawings 2 100 Drawings closed out to capital account

Question 8.35b perpetual inventory applies General Journal of R Jones GJ 1

31 Dec 16 Sales 62 231 Trading 62 231 Sales closed out to trading account Trading 32 701 Cost of Goods Sold 32 701 Cost of goods sold closed to trading account

continued



281

Question 8.35b continued (perpetual inventory applies) General Journal of R Jones GJ 1

Trading 29 530 Profit and Loss 29 530 Gross profit transferred to profit and loss account Rent Received 3 177 Interest Received 930 Profit and Loss 4 107 Accounts closed to profit and loss account Profit and Loss 19 530 Sales Salaries 5 940 Freight Outwards 2 591 Office Salaries 8 142 Vehicle Expenses 1 591 Stationery 181 Insurance 159 Postage and Telephone 376 Interest 391 Bad Debts 159 Balances closed to profit and loss Profit and Loss 14 107 Capital 14 107 Net profit transferred to capital account Capital 2 100 Drawings 2 100 Drawings closed out to capital account


General Journal of J Smith GJ 1 30 Jun 16 Sales 100 000

Trading 100 000 Sales closed out to trading account Trading 49 300 Inventory [opening] 4 000 Purchases 45 000 Freight Inwards 300 Balances closed to trading account Inventory [closing] 4 200 Trading 4 200 Closing inventory as per physical stocktake Trading 54 900 Profit and Loss 54 900 Gross profit transferred to profit and loss account Discount Received 400 Rent Received 3 000 Profit and Loss 3 400 Accounts closed to profit and loss account

continued



282

Question 8.36a continued (periodic inventory applies)

General Journal of J Smith continued GJ 1 Profit and Loss 34 500

Advertising 500 Sales Salaries 10 000 Office Salaries 15 000 Rent 8 000 Telephone 800 Discount Allowed 200 Balances closed to profit and loss



Question 8.36b perpetual inventory applies

General Journal of J Smith GJ 1 30 Jun 16 Sales 100 000

Trading 100 000 Sales closed out to trading account Trading 45 100 Cost of Goods Sold 45 100 Cost of goods sold closed to trading account Trading 54 900 Profit and Loss 54 900 Gross profit transferred to profit and loss account Discount Received 400 Rent Received 3 000 Profit and Loss 3 400 Accounts closed to profit and loss account Profit and Loss 34 500 Advertising 500 Sales Salaries 10 000 Office Salaries 15 000 Rent 8 000 Telephone 800 Discount Allowed 200 Balances closed to profit and loss Profit and Loss 23 800 Capital 23 800 Net profit transferred to capital account Capital 1 200 Drawings 1 200 Drawings closed out to capital account



283


General Journal of J Atkinson GJ 1 31 May 16 Sales 45 406

Trading 45 406 Sales closed out to trading account

Trading 17 643 Inventory [opening] 1 086 Purchases 15 690 Customs Duty 867 Balances closed to trading account



Interest Received 375 Rent Received 5 080 Profit and Loss 5 455 Accounts closed to profit and loss account

Profit and Loss 23 819 Advertising 944 Sales Commission 85 Travellers Expenses 630 Council Rates 615 Electricity 768 Motor Vehicle Expenses 1 330 Salaries 17 790 Stationery 109 Telephone 462 Bad Debts 229 Interest 352 Bank Charges 505 Balances closed to profit and loss





284


Extract General Ledger of J Atkinson Inventory Sales

balance open 1 086 Trading 1 086 Trading 45 406 balance 45 406

Trading closing 1 235

Interest Received Rent Received Profit & Loss 375 balance 375 Profit & Loss 5 080 balance 5 080

Purchases Customs Duty balance 15 690 Trading 15 690 balance 867 Trading 867

Advertising Sales Commission balance 944 Profit & Loss 944 balance 85 Profit & Loss 85

Travellers Expenses Council Rates balance 630 Profit & Loss 630 balance 615 Profit & Loss 615

Electricity Motor Vehicle Expenses balance 768 Profit & Loss 768 balance 1 330 Profit & Loss 1 330

Salaries Stationery balance 17 790 Profit & Loss 17 790 balance 109 Profit & Loss 109

Telephone Bad Debts balance 462 Profit & Loss 462 balance 229 Profit & Loss 229

Interest Bank Charges balance 352 Profit & Loss 352 balance 505 Profit & Loss 505

Capital Drawings Drawings 8 000 balance 3 000 balance 8 000 Capital 8 000

balance 5 634 Profit & Loss 10 634 13 634 13 634

balance 5 634

Trading 31 May 16 Inventory [opening] 1 086 31 May 16 Sales 45 406

Purchases 15 690 Inventory [closing] 1 235

Customs Duty 867

Profit & Loss [gross profit] 28 998

1893 46 641

continued



285

Question 8.37a continued (periodic inventory applies) Extract General Ledger of J Atkinson continued

Profit and Loss 31 May 16 Advertising 944 31 May 16 Trading [gross profit] 28 998

Sales Commission 85 Interest Received 375 Travellers Expenses 630 Rent Received 5 080 Council Rates 615 Electricity 768 Motor Vehicle Expenses 1 330 Salaries 17 790 Stationery 109 Telephone 462 Bad Debts 229 Interest 352 Bank Charges 505 Capital [net profit] 10 634 34 453 34 453 Question 8.37b perpetual inventory applies

General Journal of J Atkinson GJ 1 31 May 16 Sales 45 406


Trading 16 408 Cost of Goods Sold 16 408 Cost of goods sold closed to trading account


Interest Received 375 Rent Received 5 080 Profit and Loss 5 455 Accounts closed to profit and loss account

Profit and Loss 23 819 Advertising 944 Sales Commission 85 Travellers Expenses 630 Council Rates 615 Electricity 768 Motor Vehicle Expenses 1 330 Salaries 17 790 Stationery 109 Telephone 462 Bad Debts 229 Interest 352 Bank Charges 505 Balances closed to profit and loss

continued



286

Question 8.37b continued (perpetual inventory applies)

General Journal of J Atkinson continued GJ 1 Profit and Loss 10 634 Capital 10 634 Net profit transferred to capital account Capital 8 000 Drawings 8 000 Drawings closed out to capital account

Extract General Ledger of J Atkinson Inventory Sales

balance 1 235 Trading 45 406 balance 45 406

Interest Received Rent Received

Profit & Loss 375 balance 375 Profit & Loss 5 080 balance 5 080

Cost of Goods Sold Advertising

balance 16 408 Trading 16 408 balance 944 Trading 944

Sales Commission Travellers Expenses

balance 85 Profit & Loss 85 balance 630 Profit & Loss 630

Council Rates Electricity


Motor Vehicle Expenses Salaries

balance 1 330 Profit & Loss 1 330 balance 17 790 Profit & Loss 17 790

Stationery Telephone


Bad Debts Interest


Bank Charges

balance 505 Profit & Loss 505

Capital Drawings

Drawings 8 000 balance 3 000 balance 8 000 Capital 8 000

balance 5634 Profit & Loss 10 634 13 634 13 634 balance 5 634

Trading

31 May 16 Cost of Goods Sold 16 408 31 May 16 Sales 45 406 Profit and Loss [gross profit] 28 998 1450 45 406

continued



287

Question 8.37b finalised (perpetual inventory applies)

Extract General Ledger of J Atkinson continued Profit and Loss

31 May 16 Advertising 944 31 May 16 Trading [gross profit] 28 998 Sales Commission 85 Interest Received 375 Travellers Expenses 630 Rent Received 5 080 Council Rates 615 Electricity 768 Motor Vehicle Expenses 1 330 Salaries 17 790 Stationery 109 Telephone 462 Bad Debts 229 Interest 352 Bank Charges 505 Capital [net profit] 10 634 34 453 34 453


General Journal of B Mac Saville GJ 1 31 Mar 16 Sales 70 679 Trading 70 679 Sales closed out to trading account

Trading 38 314 Inventory [opening] 2 349 Purchases 35 208 Freight Inwards 757 Balances closed to trading account Inventory [closing] 2 640 Trading 2 640 Closing inventory as per physical stocktake


Discount Received 423 Bad Debts Recovered 835 Profit and Loss 1 258 Accounts closed to profit and loss account

continued



288

Question 8.38a continued periodic inventory applies

General Journal of B Mac Saville continued GJ 1 Profit and Loss 16 107 Sales Salaries 8 194 Freight Outwards 958 Office Salaries 5 113 Insurance 576 Photocopying 331 Stationery 294 Postage 180 Bank Charges 95 Discount Allowed 366 Balances closed to profit and loss



General Ledger of B Mac Saville

Bank Accounts Receivable Control Balance 8 358 Balance 12 386

Inventory GST Receivable Balance [open] 2 349 Trading [clos’g] 2 349 Balance 866

Trading 2 640 Plant and Equipment Accounts Payable Control

Balance 20 790 Balance 4 092 GST Payable Capital

Balance 1 767 Drawings 3 298 Balance 22 323 Balance c/d 39 181 Profit & Loss 20 156 42 479 42 479 Balance b/d 39 181

Drawings Sales Balance 3 298 Capital 3 298 Trading 70 679 Balance 70 679

Discount Received Bad Debts Recovered


Purchases Freight Inwards

Balance 35 208 Trading 35 208 Balance 757 Trading 757

Sales Salaries Freight Outwards


continued



289


General Ledger of B Mac Saville continued Office Salaries Insurance


Photocopying Stationery


Postage Bank Charges


Discount Allowed


Trading 31 Mar

Inventory [opening] 2 349 31

Sales 70 679 Purchases 35 208 Inventory [closing] 2 640

Freight Inwards 757


73 319 73 319

Profit and Loss 31 Mar

Sales Salaries 8 194 31

Trading [gross profit] 35 005 Freight Outward 958 Discount Received 423 Office Salaries 5 113 Bad Debts Recovered 835 Insurance 576 Photocopying 331 Stationery 294 Bank Charges 95 Postage 180 Discount Allowed 366 Capital [net profit] 20 156 36 263 36 263

Trial Balance of B Mac Saville as at 31 March 2016 – post closing

Bank 8 358 Accounts Receivable Control 12 386 Inventory [opening] 2 640 GST Receivable 866 Plant and Equipment 20 790 Account Payable Control 4 092 GST Payable 1 767 Capital 39 181 45 040 45 040



290


General Journal of B Mac Saville GJ 1 31 Mar 16 Sales 70 679

Trading 70 679 Sales closed out to trading account Trading 35 674 Cost of Goods Sold 35 674 Cost of goods sold closed to trading account Trading 35 005 Profit and Loss 35 005 Trading closed and gross profit to profit and loss account

Extract General Ledger of B Mac Saville

Sales Cost of Goods Sold Trading 70 679 Balance 70 679 Balance 35 674 Trading 35 674

Trading Profit and Loss

CoGS 35 674 Sales 70 679 Trading 35 005 Gross profit 35 005 70 679 70 679

Question 8.38b perpetual inventory applies (complete if question 8.38a was NOT done)

General Journal of B Mac Saville GJ 1 31 Mar 16 Sales 70 679

Trading 70 679 Sales closed out to trading account Trading 35 674 Cost of Goods Sold 35 674 Cost of goods sold closed to trading account Trading 35 005 Profit and Loss 35 005 Gross profit transferred to profit and loss account Discount Received 423 Bad Debts Recovered 835 Profit and Loss 1 258 Accounts closed to profit and loss account Profit and Loss 16 07 Sales Salaries 8 194 Freight Outwards 958 Office Salaries 5 113 Insurance 576 Photocopying 331 Stationery 294 Postage 180 Bank Charges 95 Discount Allowed 366 Balances closed to profit and loss

continued



291

Question 8.38b continued (perpetual inventory applies) (complete if question 8.38a was NOT done)

General Journal of B Mac Saville continued GJ 1 Profit and Loss 20 156 Capital 20 156 Net profit transferred to capital account Capital 3 298 Drawings 3 298 Drawings closed out to capital account

General Ledger of B Mac Saville Bank Accounts Receivable Control

Balance 8 358 Balance 12 386 Inventory GST Receivable

Balance 2 640 Balance 866 Plant and Equipment Accounts Payable Control


Balance 1 767 Drawings 3 298 Balance 22 323 Balance c/d 39 181 Profit & Loss 20 156 42 479 42 479 Balance b/d 39 181

Drawings Sales Balance 3 298 Capital 3 298 Trading 70 679 Balance 70 679

Discount Received Bad Debts Recovered Profit & Loss 423 Balance 423 Profit & Loss 835 Balance 835

Cost of Goods Sold Sales Salaries Balance 35 674 Trading 35 674 Balance 8 194 Profit & Loss 8 194

Freight Outwards Office Salaries Balance 958 Profit & Loss 958 Balance 5 113 Profit & Loss 5 113

Insurance Photocopying Balance 576 Profit & Loss 576 Balance 331 Profit & Loss 331

Stationery Postage Balance 294 Profit & Loss 294 Balance 180 Profit & Loss 180

Bank Charges Discount Allowed Balance 95 Profit & Loss 95 Balance 366 Profit & Loss 366

continued



292

Question 8.38b perpetual inventory continued (complete if question 8.38a was NOT done)

General Ledger of B Mac Saville continued Trading

31 Mar 16 Cost of Goods Sold 35 674 31 Mar 16 Sales 70 679


70 679 70 679

Profit and Loss 31 Mar 16 Sales Salaries 8 194 31 Mar 16 Trading [gross profit] 35 005

Freight Outward 958 Discount Received 423 Office Salaries 5 113 Bad Debts Recovered 835 Insurance 576 Photocopying 331 Stationery 294 Bank Charges 95 Postage 180 Discount Allowed 366 Capital [net profit] 20 156 36 263 36 263

Trial Balance of B Mac Saville

as at 31 March 2016 – post closing

Bank 8 358 Accounts Receivable Control 12 386 Inventory 2 640 GST Receivable 866 Plant and Equipment 20 790 Account Payable Control 4 092 GST Payable 1 767 Capital 39 181 45 040 45 040


General Journal of N Glen GJ 1 31 May 16 Sales 279 896

Trading 279 896 Sales closed out to trading account Trading 183 980 Inventory [opening] 15 630 Purchases 168 350 Balances closed to trading account Inventory [closing] 17 480 Trading 17 480 Closing inventory as per physical stocktake

continued



293


General Journal of N Glen continued GJ 1 Trading 113 396 Profit and Loss 113 396 Gross profit transferred to profit and loss account Rent Received 6 829 Profit and Loss 6 829 Accounts closed to profit and loss account Profit and Loss 71 553 Advertising 647 Freight Outwards 1 563 Sales Wages 30 277 Cleaning 764 Donations 1 074 Electricity 3 286 Printing and Stationery 552 Office Wages 21 154 Rates 745 Subscriptions 254 Office Repairs and Maintenance 688 Telephone 2 727 Interest on Mortgage 5 002 Interest on Overdraft 1 912 Bad Debts 908 Balances closed to profit and loss Profit and Loss 48 672 Capital 48 672 Net profit transferred to capital account Capital 6 568 Drawings 6 568 Drawings closed out to capital account

General Ledger of N Glen Accounts Receivable Control Inventory

Balance 30 591 Balance open 15 630 Trading 15 630

Trading 17 480 GST Receivable Land and Buildings

Balance 3 010 Balance 320 000 Machinery Bank Overdraft

Balance 95 100 Balance 65 68 Accounts Payable Control GST Payable

Balance 11 649 Balance 4 665 continued



294


General Ledger of N Glen continued Mortgage on Land and Buildings Capital

Balance 100 000 Drawings 6 568 Balance 301 195 Balance c/d 343 299 Profit & Loss 48 672

349 867 349 867

Balance b/d 343 299 Drawings Sales

Balance 6 568 Capital 6 568 Trading 279 896 Balance 279 896

Rent Received Purchases Profit & Loss 6 829 Balance 6 829 Balance 168 350 Trading 168 350

Advertising Freight Outwards

Balance 647 Profit & Loss 647 Balance 1 563 Profit & Loss 1 563

Sales Wages Cleaning


Donations Electricity


Printing and Stationery Office Wages


Rates Subscriptions


Office Repairs and Maintenance Telephone


Interest on Mortgage Interest on Overdraft


Bad Debts


Trading

31 May 16 Inventory [opening] 15 630 31 May 16 Sales 279 896



297 376 297 376

continued



295


General Ledger of N Glen continued Profit and Loss

31 May 16 Advertising 647 31 May 16 Trading [gross profit] 113 396 Freight Outwards 1 563 Rent Received 6 829 Sales Wages 30 277 Cleaning 764 Donations 1 074 Electricity 3 286 Printing and Stationery 552 Office Wages 21 154 Rates 745 Subscriptions 254 Office Repair & Maintenance 688 Telephone 2 727 Interest on Mortgage 5 002 Interest on Overdraft 1 912 Bad Debts 908 Capital [net profit] 48 672 120 225 120 225

Trial Balance of N Glen as at 31 May 2016 – post closing

Accounts Receivable Control 30 591 Inventory [opening] 17 480 GST Receivable 3 010 Land and Buildings 320 000 Machinery 95 100 Bank Overdraft 6 568 Account Payable Control 11 649 GST Payable 4 665 Mortgage on Land and Buildings 100 000 Capital 343 299 466 181 466 181



Trading 279 896 Sales closed out to trading account Trading 166 500 Cost of Goods Sold 166 500 Cost of goods sold closed to trading account Trading 113 396 Profit and Loss 113 396 Trading closed and gross profit to profit and loss account



296


Extract General Ledger of N Glen Sales Cost of Goods Sold


Trading Profit and Loss

CoGS 166 500 Sales 279 896 Trading 113 396 Gross profit 113 396 279 896 279 896

Question 8.39b (complete if question 8.39a was NOT done)



Trading 166 500 Cost of Goods Sold 166 500 Cost of goods sold closed to trading account


Rent Received 6 829 Profit and Loss 6 829 Accounts closed to profit and loss account

Profit and Loss 71 553 Advertising 647 Freight Outwards 1 563 Sales Wages 30 277 Cleaning 764 Donations 1 074 Electricity 3 286 Printing and Stationery 552 Office Wages 21 154 Rates 745 Subscriptions 254 Office Repairs and Maintenance 688 Telephone 2 727 Interest on Mortgage 5 002 Interest on Overdraft 1 912 Bad Debts 908 Balances closed to profit and loss





297


General Ledger of N Glen Accounts Receivable Control Inventory

Balance 30 591 Balance 17 480 GST Receivable Land and Buildings

Balance 3 010 Balance 320 000 Machinery Bank Overdraft


Balance 11 649 Balance 4 665 Mortgage on Land and Buildings Capital

Balance 100 000 Drawings 6 568 Balance 301 195 Balance c/d 343 299 Profit & Loss 48 672 349 867 349 867



Rent Received Cost of Goods Sold Profit & Loss 6 829 Balance 6 829 Balance 166 500 Trading 166 500

Advertising Freight Outwards Balance 647 Profit & Loss 647 Balance 1 563 Profit & Loss 1 563

Sales Wages Cleaning Balance 30 277 Profit & Loss 30 277 Balance 764 Profit & Loss 764

Donations Electricity Balance 1 074 Profit & Loss 1 074 Balance 3 286 Profit & Loss 3 286

Printing and Stationery Office Wages Balance 552 Profit & Loss 552 Balance 21 154 Profit & Loss 21 154

Rates Subscriptions Balance 745 Profit & Loss 745 Balance 254 Profit & Loss 254

Office Repairs and Maintenance Telephone Balance 688 Profit & Loss 688 Balance 2 727 Profit & Loss 2 727

Interest on Mortgage Interest on Overdraft Balance 5 002 Profit & Loss 5 002 Balance 1 912 Profit & Loss 1 912

Bad Debts Balance 908 Profit & Loss 908

continued



298


General Ledger of N Glen continued Trading

31 May 16 Cost of Goods Sold 166 500 31 May 16 Sales 279 896 Profit & Loss [gross profit] 113 396

279 896 279 896

Profit and Loss 31 May 16 Advertising 647 31 May 16 Trading [gross profit] 113 396

Freight Outwards 1 563 Rent Received 6 829 Sales Wages 30 277 Cleaning 764 Donations 1 074 Electricity 3 286 Printing and Stationery 552 Office Wages 21 154 Rates 745 Subscriptions 254 Office Repair & Mainten’ce 688 Telephone 2 727 Interest on Mortgage 5 002 Interest on Overdraft 1 912 Bad Debts 908 Capital [net profit] 48 672 120 225 120 225

Trial Balance of N Glen as at 31 May 2016 – post closing

Accounts Receivable Control 30 591

Inventory 17 480


Land and Buildings 320 000

Machinery 95 100

Bank Overdraft 6 568

Account Payable Control 11 649

GST Payable 4 665

Mortgage on Land and Buildings 100 000

Capital 343 299

466 181 466 181



299


Income Statement of S Ingleton for the year ended 30 June 2016

Revenue Sales 62 898 less Cost of Goods Sold

Inventory [opening] 2 138 Purchases 29 016 Freight Inwards 652

Cost of goods available for sale 31 806 less Inventory [closing] 2 548 29 258

Gross Profit 33 640 add Other Revenue Commission Received 881 Total Revenue 34 521 less Expenses Selling and Distribution

Advertising 582 Cartage Outwards 418 Commission 196 1 196

General and Administrative Wages 11 785 Photocopying 173 Rates 2 507 Electricity 652 15 117

Financial and Borrowing Interest 863 Bad Debts 279 1 142

Total Expenses 17 455 Net Profit 17 066



300


Income Statement of S Ingleton for the year ended 30 June 2016

Revenue Sales 62 898 less Cost of Goods Sold 29 258 Gross Profit 33 640 add Other Revenue Commission Received 881 Total Revenue 34 521 less Expenses Selling and Distribution

Advertising 582 Cartage Outwards 418 Commission 196 1 196

General and Administrative Wages 11 785 Photocopying 173 Rates 2 507 Electricity 652 15 117

Financial and Borrowing Interest 863 Bad Debts 279 1 142




301


Income Statement of Cec Nock for the year ended 31 March 2016


Inventory [opening] 517 Purchases 7 282 Landing Costs 156 Freight Inwards 235 Cost of goods available for sale 8 190 less Inventory [closing] 554 7 636

Gross Profit 8 894 add Other Revenue

Rent Received 3 878 Bad Debts Recovered 236 4 114

Total Revenue 13 008 less Expenses Selling and Distribution

Delivery Expenses 562 Salaries Sales 4 186 4 748

General and Administrative Cleaning 448 Office Expenses 509 Salaries Office 4 863 Vehicle Expenses 117 5 937

Financial and Borrowing Bad Debts 132 Interest on Loan 985 1 117




302


Income Statement of Cec Nock for the year ended 31 March 2016

Revenue Sales 16 530 less Cost of Goods Sold 7 636 Gross Profit 8 894 add Other Revenue

Rent Received 3 878 Bad Debts Recovered 236 4 114


Delivery Expenses 562 Salaries Sales 4 186 4 748

General and Administrative Cleaning 448 Office Expenses 509 Salaries Office 4 863 Vehicle Expenses 117 5 937

Financial and Borrowing Bad Debts 132 Interest on Loan 985 1 117




303


Income Statement of B Mac Saville for the year ended 31 March 2016


Inventory [opening] 2 349 Purchases 35 208 Freight Inwards 757 Cost of goods available for sale 38 314 less Inventory [closing] 2 640 35 674


Discount Received 423 Bad Debts Recovered 835 1 258


Salaries Sales 8 194 Freight Outwards 958 9 152

General and Administrative Office Salaries 5 113 Insurance 576 Photocopying 331 Stationery 294 Postage 180 6 494

Financial and Borrowing Bank Charges 95 Discount Allowed 366 461




304


Income Statement of B Mac Saville for the year ended 31 March 2016


Discount Received 423 Bad Debts Recovered 835 1 258


Salaries Sales 8 194 Freight Outwards 958 9 152

General and Administrative Office Salaries 5 113 Insurance 576 Photocopying 331 Stationery 294 Postage 180 6 494

Financial and Borrowing Bank Charges 95 Discount Allowed 366 461




305


Income Statement of N Glen for the year ended 31 May 2016


Inventory [opening] 15 630 Purchases 168 350 Cost of goods available for sale 183 980 less Inventory [closing] 17 480 166 500

Gross Profit 113 396 add Other Revenue Rent Received 6 829 Total Revenue 120 225 less Expenses Selling and Distribution

Advertising 647 Freight Outwards 1 563 Sales Wages 30 277 32 487

General and Administrative Cleaning 764 Donations 1 074 Electricity 3 286 Printing and Stationery 552 Office Wages 21 154 Rates 745 Subscriptions 254 Office Repairs and Maintenance 688 Telephone 2 727 31 244

Financial and Borrowing Interest on Mortgage 5 002 Interest on Overdraft 1 912 Bad Debts 908 7 822




306


Income Statement of N Glen for the year ended 31 May 2016

Revenue Sales 279 896 less Cost of Goods Sold 166 500 Gross Profit 113 396 add Other Revenue Rent Received 6 829 Total Revenue 120 225 less Expenses Selling and Distribution

Advertising 647 Freight Outwards 1 563 Sales Wages 30 277 32 487

General and Administrative Cleaning 764 Donations 1 074 Electricity 3 286 Printing and Stationery 552 Office Wages 21 154 Rates 745 Subscriptions 254 Office Repairs and Maintenance 688 Telephone 2 727 31 244

Financial and Borrowing Interest on Mortgage 5 002 Interest on Overdraft 1 912 Bad Debts 908 7 822




307


Income Statement of H Mercure for the year ended 31 March 2016

Sales 22 900 less Cost of Goods Sold


Gross Profit 10 840 add Other Revenue 1 510 Total Revenue 12 350 less Expenses

Wages 5 152 Office Expenses 267 Vehicle Expenses 585



Income Statement of M Melbourne for the year ended 31 March 2016

Sales 45 680 less Cost of Goods Sold 20 690 Gross Profit 24 990 add Rent Received 290 Total Revenue 25 280 less Expenses

Salaries 15 200 Selling Expenses 4 780 Other Expenses 610




308

Question 8.46

Balance Sheet of M Wellbrook as at 30 June 2016

Current Assets Bank 10 000 Accounts Receivable Control 8 800 Inventory 800 GST Receivable 400 20 000

Non-current Assets Premises 30 000 Plant and Machinery 20 000 50 000

Total Assets 70 000 Current Liabilities

Accounts Payable Control 2 200 GST Payable 900 3 100

Non-current Liabilities Mortgage on Premises 15 000 less Total Liabilities 18 100 Net Assets 51 900

Owner’s Equity Capital 51 900 Total Owner’s Equity 51 900



309

Question 8.47

Balance Sheet of N Brighton as at 30 June 2016

Current Assets Bank 3 500 Petty Cash 200 Accounts Receivable Control 27 995 Inventory 7 500 GST Receivable 300 39 495

Non-current Assets Land and Buildings 55 000 Machinery 10 000 Motor Vehicles 18 000 Goodwill 5 000 88 000


Accounts Payable Control 5 005 GST Payable 1 000 6 005

Non-current Liabilities Mortgage on Land and Buildings 30 000 less Total Liabilities 36 005 Net Assets 91 490

Owner’s Equity Capital 79 790 add Net Profit 12 500 92 290 less Drawings 800 Total Owner’s Equity 91 490



310

Question 8.48

Balance Sheet of O Bonalbo as at 30 June 2016

Current Assets Petty Cash 125 Accounts Receivable Control 42 460 Inventory [closing] 6 531 GST Receivable 4 840 53 956

Non-current Assets Premises 55 189 Plant 36 081 Furniture and Fittings 12 973 Government Bonds 9 900 Motor Vehicles 25 234 Goodwill 3 700 143 077


Bank Overdraft 17 169 Accounts Payable Control 19 470 GST Payable 6 369 43 008

Non-current Liabilities Mortgage on Premises 38 700 Loan from D Banks 15 000 53 700 less Total Liabilities 96 708 Net Assets 100 325

Owner’s Equity Capital 80 241 add Net Profit 23 631 103 872 less Drawings 3 547 Total Owner’s Equity 100 325



311

Question 8.49a periodic inventory applies BS CA Bank BS CA A/c Receiv T CoGS Invent open BS CA GST Rec BS NCA Premises BS NCA Mot Veh BS CL A/c Payable BS CL GST Pay BS OE Capital T R Sales PL OR Disc Rec PL OR B D Recov T CoGS Purchase PL SD Advert PL SD Frt & Crt Out PL GA Light & Pr

PL GA Insurance PL GA Veh Exp PL GA Telephone PL GA Rates PL GA Wages PL GA Donation PL FB Bank Chg PL FB Disc Allow PL FB Interest PL FB Bad Debt BS CA Inv close (T) (CoGS) (Inv close)

Income Statement of L More for the year ended 30 June 2016



Gross Profit 35 073 add Other Revenue Discount Received 56 Bad Debts Recovered 500 556 Total Revenue 35 629 less Expenses Selling and Distribution

Advertising 104 Freight and Cartage Outwards 52 156

General and Administrative Light and Power 238 Insurance 195 Vehicle Expenses 817 Telephone 418 Rates 261 Wages 28 863 Donations 107 30 899

Financial and Borrowing Bank Charges 82 Discount Allowed 16 Interest 398 Bad Debts 227 723




312

Question 8.49a finalised (periodic inventory applies)

Balance Sheet of L More as at 30 June 2016

Current Assets Bank 1 960 Accounts Receivable Control 9 108 Inventory 2 290 GST Receivable 385 13 743

Non-current Assets Premises 25 000 Motor Vehicles 5 000 30 000



less Total Liabilities 3 333 Net Assets 40 410

Owner’s Equity Capital 36 559 add Net Profit 3 851 Total Owner’s Equity 40 410

Trial Balance of L More

as at 1 July 2016 Bank 1 960 Accounts Receivable Control 9 108 Inventory 2 290 GST Receivable 385 Premises 25 000 Motor Vehicles 5 000 Accounts Payable Control 2 134 GST Payable 1 199 Capital 40 410 43 743 43 743

Question 8.49b perpetual inventory applies BS CA Bank BS CA Ac Rec BS CA Invent BS CA GST Rec BS NCA Prem BS NCA Mot Veh BS CL Ac Pay BS CL GST Pay BS OE Capital T R Sales PL OR Disc Rec PL OR Bd D Rec T CoGS CoGS PL SD Advert PL SD Frt Cart PL GA Light Pow

PL GA Insur PL GA Veh Exp PL GA Tphone PL GA Rates PL GA Wages PL GA Donat PL FB Bnk Ch PL FB Disc Allow PL FB Interest PL FB Bd Dbt



313

Question 8.49b finalised (perpetual inventory applies)

Income Statement of L More for the year ended 30 June 2016


Discount Received 56 Bad Debts Recovered 500 556


Advertising 104 Freight and Cartage Outwards 52 156

General and Administrative Light and Power 238 Insurance 195 Vehicle Expenses 817 Telephone 418 Rates 261 Wages 28 863 Donations 107 30 899

Financial and Borrowing Bank Charges 82 Discount Allowed 16 Interest 398 Bad Debts 227 723


Question 8.49b perpetual inventory applies (complete if question 8.49a was NOT done) The balance sheet and trial balance for 8.49b will be identical to that for 8.49a.

Question 8.50a periodic inventory applies BS CA Ac Rec T CoGS Inv open BS CA GST Rec BS NCA Machine BS NCA Off Equip BS CL Bank O/d BS CL Ac Pay BS CL GST Pay BS OE Capital T R Sales T CoGS Purch T CoGS Frt Inward PL SD Comm PL SD Frt Outw PL SD Sale Sal PL GA Off Clean PL GA Donation PL GA Rent PL GA Off Sal PL GA Photocop PL GA Station PL GA Rep Off Eq PL GA Subscr PL GA Sund Exp PL GA T’phone PL FB Bad Debt PL FB Int O’draft PL FB Disc Allow PL FB Dbt Col Ex BS CA Inv close (T) (CoGS) (Inv close)



314


Income Statement of M Bimby for the year ended 30 June 2016



Gross Profit 91 573 less Expenses Selling and Distribution

Commission 1 911 Freight Outwards 156 Sales Salaries 51 135 53 202

General and Administrative Office Cleaning 6 262 Donations 79 Rent 4 236 Office Salaries 21 353 Photocopying 645 Stationery 960 Repairs to Office Equipment 331 Subscriptions 952 Sundry Expenses 195 Telephone 2 843 37 856

Financial and Borrowing Bad Debts 532 Interest on Overdraft 1 645 Discount Allowed 154 Debt Collection Expenses 184 2 515

Total Expenses 93 573 Net Loss (2 000)



315


Balance Sheet of M Bimby as at 30 June 2016

Current Assets Accounts Receivable Control 24 409 Inventory 2 457 GST Receivable 1 782 28 648

Non-current Assets Machinery 12 349 Office Equipment 9 138 21 487




Owner’s Equity Capital 29 108 less Net Loss 2 000 Total Owner’s Equity 27 108

Trial Balance of M Bimby

as at 1 July 2016

Accounts Receivable Control 24 409 Inventory 2 457 GST Receivable 1 782 Machinery 12 349 Office Equipment 9 138 Bank Overdraft 10 971 Accounts Payable Control 8 360 GST Payable 3 696 Capital 27 108 50 135 50 135

Question 8.50b perpetual inventory applies BS CA Ac Rec BS CA Invent BS CA GST Rec BS NCA Machine BS NCA Off Equip BS CL Bank O/d BS CL Ac Pay BS CL GST Pay BS OE Capital T R Sales T CoGS CoGS PL SD Comm PL SD Frt Outw PL SD Sale Sal PL GA Off Clean PL GA Donat PL GA Rent PL GA Off Sal PL GA Photocop PL GA Station PL GA Rep Off Eq PL GA Subscr PL GA Sund Exp PL GA Tphone PL FB Bad Debt PL FB Int Odraft PL FB Disc Allow PL FB Dbt Col Ex



316


Income Statement of M Bimby for the year ended 30 June 2016

Revenue

Sales 147 868

less Cost of Goods Sold 56 295

Gross Profit 91 573 less Expenses

Selling and Distribution

Commission 1 911

Freight Outwards 156

Sales Salaries 51 135 53 202

General and Administrative Office Cleaning 6 262

Donations 79

Rent 4 236

Office Salaries 21 353

Photocopying 645

Stationery 960

Repairs to Office Equipment 331

Subscriptions 952

Sundry Expenses 195

Telephone 2 843 37 856

Financial and Borrowing Bad Debts 532

Interest on Overdraft 1 645


Debt Collection Expenses 184 2 515

Total Expenses 93 573

Net Loss (2 000)


Question 8.51a periodic inventory applies PL SD Advert BS CL A/c Pay PL GA Misc Exp BS NCL Mort Prem BS CL GST Pay PL GA Station T CoGS Invent

PL GA Post

PL SD Deliv Exp BS CA Bank PL GA Wage PL OR Comm Rec BS CA A/c Rec PL GA Photocopy BS NCA Mot Veh PL FB Int Mort BS NCA Prem PL FB Bad Deb PL GA Veh Exp BS CA GST Rec T CoGS Cus Dut PL GA Off Clng PL OR Rent Rec PL GA Off Rep

PL GA Donat PL OR Bd Db Rec T R Sales BS OE Capit PL GA Rate PL SD Sale Wage PL SD Sal Comm PL FB Bank Chg T CoGS Purch BS CA Inv close (T) (CoGS) (Inv close)



317


Income Statement of P Hastings for the year ended 31 December 2016


Inventory [opening] 9 388 Purchases 82 743 Customs Duty 8 541 Cost of goods available for sale 100 672 less Inventory [closing] 10 477 90 195


Commission Received 8 396 Rent Received 10 744 Bad Debts Recovered 829 19 969


Advertising 2 869 Delivery Expenses 4 195 Sales Wages 15 000 Sales Commission 8 100 30 164

General and Administrative Miscellaneous Expenses 136 Stationery 451 Postage 245 Wages 20 000 Photocopying 263 Vehicle Expenses 1 605 Office Cleaning 2 429 Office Repairs 195 Donations 250 Rates 2 779 28 353

Financial and Borrowing Interest on Mortgage 3 400 Bad Debts 1 219 Bank Charges 97 4 716




318

Question 8.51a continued (periodic inventory applies) Balance Sheet of P Hastings


Current Assets Bank 2 863 Accounts Receivable Control 21 626 GST Receivable 2 585 Inventory 10 477 37 551

Non-current Assets Motor Vehicles 20 500 Premises 45 000 65 500


Accounts Payable Control 660 GST Payable 4 334 4 994


Owner’s equity Capital 31 969 add Net Profit 40 088 Total Owner’s Equity 72 057

Trial Balance of P Hastings

as at 1 January 2017 Bank 2 863 Accounts Receivable Control 21 626 Inventory 10 477 GST Receivable 2 585 Motor Vehicles 20 500 Premises 45 000 Accounts Payable Control 660 GST Payable 4 334 Mortgage on Premises 26 000 Capital 72 057 103 051 103 051

Question 8.51b perpetual inventory applies PL SD Advert BS CL Ac Pay PL GA Misc Exp BS NCL Mort Prem BS CL GST Pay PL GA Statione BS CA Invent PL GA Postage PL SD Deliv Exp BS CA Bank PL GA Wages PL OR Comm Rec BS CA Acc Rec PL GA Photocop BS NCA Mot Veh PL FB Int Mort BS NCA Premis PL FB Bad Debt PL GA Veh Exp BS CA GST Rec PL GA Off Clean PL OR Rent Rec PL GA Off Rep PL GA Donat PL OR Bd Db Rec T R Sales BS OE Capital PL GA Rates PL SD Sale Wag PL SD Sal Comm PL FB Bank Chg T CoGS CoGS



319

Question 8.51b continued (perpetual inventory applies) Income Statement of P Hastings

for the year ended 31 December 2016


Commission Received 8 396 Rent Received 10 744 Bad Debts Recovered 829 19 969


Advertising 2 869 Delivery Expenses 4 195 Sales Wages 15 000 Sales Commission 8 100 30 164

General and Administrative Miscellaneous Expenses 136 Stationery 451 Postage 245 Wages 20 000 Photocopying 263 Vehicle Expenses 1 605 Office Cleaning 2 429 Office Repairs 195 Donations 250 Rates 2 779 28 353

Financial and Borrowing Interest on Mortgage 3 400 Bad Debts 1 219 Bank Charges 97 4 716



Question 8.52 BS CA Bank BS CA A/c Rec BS CA GST Rec BS NCA Land BS NCA Chamb BS NCA Off Equip BS CL A/c Pay BS CL GST Pay BS NCL Loan BS OE Cap BS OE Draw PL R Leg Fees PL E Insur Fee PL E Salaries PL E Elect PL E Int Exp PL E Tphone



320

Question 8.52 continued General Journal of Lita Litigiosus GJ 1

30 Jun 16 Legal Fees Revenue 784 300 Profit and Loss 784 300 Close revenues to profit and loss Profit and Loss 470 950 Insurance Expense 8 300 Salaries Expense 439 700 Electricity Expense 3 800 Interest Expense 10 450 Telephone Expense 8 700 Close revenues to profit and loss Profit and Loss 313 350 Capital 313 500 Net profit transferred to capital account Capital 263 900 Drawings 263 900

Drawings closed out to capital account

Extract General Ledger of Lita Litigiosus Bank Accounts Receivable Control

Balance 30 000 Balance 46 300

GST Receivable Land Balance 5 700 Balance 128 000

Chambers Office Equipment Balance 511 000 Balance 35 400

Accounts Payable Control GST Payable Balance 45 800 Balance 7 800

Loan (Mortgage) Capital Balance 443 000 Drawings 263 900 Balance 210 350 Balance c/d 259 800 Profit & Loss 313 350 523 700 523 700

Balance b/d 259 800

Drawings Legal Fees Revenue Balance 263 900 Capital 263 900 Profit & Loss 784 300 Balance 784 300

Insurance Expense Salaries Expense


Electricity Expense Interest Expense


Telephone Expense


continued



321

Question 8.52 continued Extract General Ledger of Lita Litigiosus continued

Profit and Loss 30 Jun 16 Insurance 8 300 30 Jun 16 Legal Fees Revenue 784 300

Salaries 439 700 Electricity 3 800 Interest 10 450 Telephone 8 700 Capital [net profit] 313 350 784 300 784 300

Income Statement of Lita Litigiosus for the year ended 30 June 2016

Revenue Legal Fees Revenue 784 300 Total Revenue 784 300 less Expenses Insurance Expense 8 300 Salaries Expense 439 700 Electricity Expense 3 800 Interest Expense 10 450 Telephone Expense 8 700 Total Expenses 470 950 Net Profit 313 350

Balance Sheet of Lita Litigiosus as at 30 June 2016

Current Assets Bank 30 000 Accounts Receivable Control 46 300 GST Receivable 5 700 82 000

Non-current Assets Land 128 000 Chambers 511 000 Office Equipment 35 400 674 400



Non-current Liabilities Loan (Mortgage) Payable 443 000 less Total Liabilities 496 000 Net Assets 259 800 Owner’s equity Capital 210 350 add Net Profit 313 350 523 700 less Drawings 263 900 Total Owner’s Equity 259 800



322

Question 8.53 BS CA Bank BS CA A/c Rec BS CA GST Rec BS NCA Off Equip BS NCA Im Mach BS CL A/c Pay BS CL GST Pay BS NCL BK Loan BS OE Cap BS OE Draw PL R PP Fees PL R H Fees PL E Elect PL E Tphone PL E Int Exp

General Journal of Chris Bones GJ 1

30 Jun 16 Private Patient Fees 285 000 Hospital Fees 243 500 Profit and Loss 528 500 Close revenues to profit and loss Profit and Loss 53 500 Electricity Expense 26 500 Telephone Expense 22 400 Interest Expense 4 600 Close revenues to profit and loss Profit and Loss 475 000 Capital 475 0000 Net profit transferred to capital account Capital 325 000 Drawings 325 000 Drawings closed out to capital account

General Ledger of Chris Bones

Bank Account Receivable Control Balance 137 500 Balance 21 300

GST Receivable Office Equipment Balance 5 850 Balance 10 300

Imaging Machine Accounts Payable Control Balance 133 750 Balance 3 150

GST Payable Bank Loan

Balance 1 000 Balance 39 000

Drawings Capital Balance 325 000 Capital 325 000 Drawings 325 000 Balance 115 550

Balance c/d 265 550 Profit & Loss 475 000

590 550 590 550

Balance b/d 265 550

Private Patient Fees Hospital Fees Profit & Loss 285 000 Balance 285 000 Profit & Loss 243 500 Balance 243 500

Electricity Expense Telephone Expense Balance 26 500 Profit & Loss 26 500 Balance 22 400 Profit & Loss 22 400

Interest Expense


continued



323


General Ledger of Chris Bones continued Profit and Loss

30 Jun 16 Electricity 26 500 30 Jun 16 Private Patient Fees 285 000 Telephone 22 400 Hospital Fees 243 500 Interest 4 600 Capital [net profit] 475 000 528 500 528 500

Income Statement of C Bones

for the year ended 30 June 2016

Revenue Private Patient Fees 285 000 Hospital Fees 243 500 Total Revenue 528 500 less Expenses Electricity Expense 26 500 Telephone Expense 22 400 Interest Expense 4 600 Total Expenses 53 500 Net Profit 475 000

Balance Sheet of C Bones

as at 30 June 2016

Current Assets Bank 137 500 Accounts Receivable Control 21 300 GST Receivable 5 850 164 650 Non-current Assets Office Equipment 10 300 Imaging Equipment 133 750 144 050 Total Assets 308 700 Current Liabilities Accounts Payable Control 3 150 GST Payable 1 000 4 150 Non-current Liabilities Bank Loan 39 000 less Total Liabilities 43 150 Net Assets 265 550 Owner’s Equity Capital 115 550 add Net Profit 475 000 590 550 less Drawings 325 000 Total Owner’s Equity 265 550



324

Question 8.54a periodic inventory applies BS CA Bank BS CA A/c Rec T CoGS Inv open BS CA GST Rec BS NCA Prem BS NCA Mot Veh BS CL A/c Pay BS CL GST Pay BS OE Cap BS OE Draw T R Sale PL OR Rent Rec PL OR Int Rec T CoGS Purch T CoGS Frt Inw PL SD Advert PL SD Sale Sala PL SD Desp Exp PL GA Elect PL GA Tphone PL GA Off Sal PL FB Bd Dbt BS CA Inv close (T) (CoGS) (Inv close)

General Journal of B Ramourne GJ 1

30 Jun 16 Sales 75 659 Trading 75 659 Balance transferred

Trading 27 508 Inventory [opening] 2 079 Purchases 25 234 Freight Inwards 195 Balances transferred

Inventory [closing] 1 564 Trading 1 564 Closing stock as per stocktake

Trading 49 715 Profit and Loss 49 715 Gross profit transferred to profit and loss

Rent Received 1 245 Interest Received 277 Profit and Loss 1 522 Balances transferred

Profit and Loss 26 874 Advertising 552 Sales Salaries 8 228 Despatch Expenses 7 519 Electricity 303 Telephone 234 Office Salaries 9 913 Bad Debts 125 Balances transferred

Profit and Loss 24 363 Capital 24 363 Net profit transferred to capital

Capital 8 892 Drawings 8 892 Drawings closed out to capital



325


General Ledger of B Ramourne Bank Accounts Receivable Control


Balance open 2 079 Trading 2 079 Balance 847

Trading 1 564 Premises Motor Vehicles


Balance 4 543 Balance 1 892 Capital Drawings

Drawings 8 892 Balance 71 585 Balance 8 892 Capital 8 892

Balance c/d 87 056 Profit & Loss 24 363 95 948 95 948

Balance b/d 87 056 Sales Rent Received

Trading 75 659 Balance 75 659 Profit & Loss 1 245 Balance 1 245

Interest Received Purchases Profit & Loss 277 Balance 277 Balance 25 234 Trading 25 234

Freight Inwards Advertising Balance 195 Trading 195 Balance 552 Profit & Loss 552

Sales Salaries Despatch Expenses Balance 8 228 Profit & Loss 8 228 Balance 7 519 Profit & Loss 7 519

Electricity Telephone Balance 303 Profit & Loss 303 Balance 234 Profit & Loss 234

Office Salaries Bad Debts Balance 9 913 Profit & Loss 9 913 Balance 125 Profit & Loss 125

Trading

30 Jun 16 Inventory [opening] 2 079 30 Jun 16 Sales 75 659 Purchases 25 234 Inventory [closing] 1 564 Freight Inwards 195 Profit & Loss [gross profit] 49 715 77 223 77 223

continued



326


General Ledger of B Ramourne continued Profit and Loss

30 Jun 16 Advertising 552 30 Jun 16 Trading [gross profit] 49 715 Sales Salaries 8 228 Rent Received 1 245 Despatch Expenses 7 519 Interest Received 277 Electricity 303 Telephone 234 Office Salaries 9 913 Bad Debts 125 Capital [net profit] 24 363 51 237 51 237

Income Statement of B Ramourne





Rent Received 1 245 Interest Received 277 1 522


Advertising 552 Sales Salaries 8 228 Despatch Expenses 7 519 16 299

General and Administrative Electricity 303 Telephone 234 Office Salaries 9 913 10 450





327


Balance Sheet of B Ramourne as at 30 June 2016

Current Assets Bank 23 742 Accounts Receivable Control 3 520 Inventory 1 564 GST Receivable 847 29 673

Non-current Assets Premises 35 623 Motor Vehicles 28 195 63 818




Owner’s Equity Capital 71 585 add Net Profit 24 363 95 948

less Drawings 8 892 Total Owner’s Equity 87 056

Question 8.54b perpetual inventory applies (complete if question 8.54a was done) BS CA Bank BS CA Acc Rec BS CA Invent BS CA GST Rec BS NCA Premis BS NCA Mot Veh BS CL Ac Payab BS CL GST Pay BS OE Capital BS OE Drawing T R Sales PL OR Rent Rec PL OR Int Rec T CoGS CoGS PL SD Advert PL SD Sale Sal PL SD Desp Exp PL GA Electric PL GA Tphone PL GA Offic Sal PL FB Bad Debt

Extract General Journal of B Ramourne GJ 1

30 Jun 16 Sales 75 659 Trading 75 659 Balance transferred Trading 25 944 Cost of Goods Sold 25 944 Balance transferred Trading 49 715 Profit and Loss 49 715 Gross profit transferred to profit and loss



328

Question 8.54b perpetual inventory applies (complete if question 8.54a was done) Extract General Ledger of B Ramourne


Trading 30 Jun 16 Cost of Goods Sold 25 944 30 Jun 16 Sales 75 659

Profit & Loss [gross profit] 49 715 75 659 75 659

Profit and Loss 30 Jun 16 Trading 49 715

Extract Income Statement of B Ramourne


Revenue Sales 75 659 less Cost of Goods Sold 25 944 Gross Profit 49 715

Question 8.54b perpetual inventory applies (complete if question 8.54a was NOT done) General Journal of B Ramourne GJ 1

30 Jun 16 Sales 75 659 Trading 75 659 Balance transferred Trading 25 944 Cost of Goods Sold 25 944 Balance transferred Trading 49 715 Profit and Loss 49 715 Gross profit transferred to profit and loss Rent Received 1 245 Interest Received 277 Profit and Loss 1 522 Balances transferred

Profit and Loss 26 874 Advertising 552 Sales Salaries 8 228 Despatch Expenses 7 519 Electricity 303 Telephone 234 Office Salaries 9 913 Bad Debts 125 Balances transferred Profit and Loss 24 363 Capital 24 363 Net profit transferred to capital Capital 8 892 Drawings 8 892 Drawings closed out to capital



329

Question 8.54b perpetual inventory applies (complete if question 8.54a was NOT done) General Ledger of B Ramourne


Inventory GST Receivable Balance 1 564 Balance 847

Premises Motor Vehicles Balance 35 623 Balance 28 195


Capital Drawings Drawings 8 892 Balance 71 585 Balance 8 892 Capital 8 892


Balance b/d 87 056 Sales Rent Received


Interest Received Cost of Goods Sold Profit & Loss 277 Balance 277 Balance 25 944 Trading 25 944

Advertising Sales Salaries Balance 552 Profit & Loss 552 Balance 8 228 Profit & Loss 8 228

Despatch Expenses Electricity Balance 7 519 Profit & Loss 7 519 Balance 303 Profit & Loss 303

Telephone Office Salaries Balance 234 Profit & Loss 234 Balance 9 913 Profit & Loss 9 913

Bad Debts


Trading

30 Jun 16 Cost of Goods Sold 25 944 30 Jun 16 Sales 75 659


75 659 75 659

Profit and Loss 30 Jun 16 Advertising 552 30 Jun 16 Trading [gross profit] 49 715

Sales Salaries 8 228 Rent Received 1 245 Despatch Expenses 7 519 Interest Received 277 Electricity 303 Telephone 234 Office Salaries 9 913 Bad Debts 125 Capital [net profit] 24 363 51 237 51 237



330


Income Statement of B Ramourne for the year ended 30 June 2016


Rent Received 1 245 Interest Received 277 1 522


Advertising 552 Sales Salaries 8 228 Despatch Expenses 7 519 16 299

General and Administrative Electricity 303 Telephone 234 Office Salaries 9 913 10 450



For this question, the balance sheet for 8.54b will be identical to that for 8.54a.

Question 8.55a periodic inventory applies PL FB Disc All BS OE Drawings BS CA Bank T R Sales PL FB Bad Debt BS CA A/c Rec BS CL GST Pay BS OE Capital PL GA Tphone T CoGS Purch BS NCA Mot Veh BS CL A/c Pay PL SD Cart Out PL GA Wage BS NCA Comp PL GA Elect BS GA GST Rec PL OR Disc Rec PL SD Advert T CoGS Inv open BS CA Inv close (T) (CoGS) (Inv close)

General Journal of W Wauk GJ 1 30 Jun 16 Sales 88 628

Trading 88 628 Balance transferred Trading 34 591 Inventory [opening] 4 728 Purchases 29 863 Balances transferred Inventory [closing] 3 984 Trading 3 984 Closing stock as per stocktake

continued



331


General Journal of W Wauk continued GJ 1

Trading 58 021 Profit and Loss 58 021 Gross profit transferred Discount Received 47 Profit and Loss 47 Balance transferred Profit and Loss 40 432 Cartage Outwards 714 Advertising 254 Telephone 765 Wages 37 516 Electricity 915 Discount Allowed 116 Bad Debts 152 Balances transferred Profit and Loss 17 636 Capital 17 636 Net profit transferred to capital Capital 5 207 Drawings 5 207 Drawings transferred to capital

General Ledger of W Wauk


Inventory GST Receivable Balance open 4 728 Trading 4 728 Balance 814

Trading 3 984 Motor Vehicles Computer





Balance b/d 82 533 Sales Discount Received

Trading 88 628 Balance 88 628 Profit & Loss 47 Balance 47

Purchases Cartage Outwards

Balance 29 863 Trading 29 863 Balance 714 Profit & Loss 714

continued



332


General Ledger of W Wauk continued Advertising Telephone


Wages Electricity


Discount Allowed Bad Debts


Trading

30 Jun 16 Inventory [opening] 4 728 30 Jun 16 Sales 88 628



92 612 92 612

Profit and Loss

30 Jun 16 Cartage Outwards 714 30 Jun 16 Trading [gross profit] 58 021 Advertising 254 Discount Received 47 Telephone 765 Wages 37 516 Electricity 915 Discount Allowed 116 Bad Debts 152 Capital [net profit] 17 636 58 068 58 068



333


Income Statement of W Wauk for the year ended 30 June 2016



Gross Profit 58 021 add Other Revenue Discount Received 47 Total Revenue 58 068 less Expenses Selling and Distribution

Cartage Outwards 714 Advertising 254 968

General and Administrative Telephone 765 Wages 37 516 Electricity 915 39 196

Financial and Borrowing Discount Allowed 116 Bad Debts 152 268




334


Balance Sheet of W Wauk as at 30 June 2016

Current Assets Bank 31 041 Accounts Receivable Control 7 931 Inventory 3 984 GST Receivable 814 43 770 Non-current Assets Motor Vehicles 40 876 Computer 3 200 44 076 Total Assets 87 846 Current Liabilities Accounts Payable Control 3 102 GST Payable 2 211 less Total Liabilities 5 313 Net Assets 82 533

Owner’s equity Capital 70 104 add Net Profit 17 636 87 740 less Drawings 5 207 Total Owner’s equity 82 533

Question 8.55b perpetual inventory applies (complete if question 8.55a was done)

PL FB Disc All BS OE Draw BS CA Bank T R Sale PL FB Bad Debt BS CA A/c Rec BS CL GST Pay BS OE Cap PL GA Tphone T CoGS CoGS BS NCA Mot Veh BS CL A/c Pay PL SD Cart Out PL GA Wage BS NCA Comp PL GA Elect BS GA GST Rec PL OR Disc Rec PL SD Advert BS CA Inv

Extract General Journal of W Wauk GJ 1 30 Jun 16 Sales 88 628

Trading 88 628 Balance transferred Trading 30 607 Cost of Goods Sold 30 607 Balance transferred Trading 58 021 Profit and Loss 58 021 Gross profit transferred to profit and loss



335

Question 8.55b continued (perpetual inventory applies) Extract General Ledger of W Wauk





Extract Income Statement of W Wauk



Question 8.55b perpetual inventory applies (complete if question 8.55a was NOT done) General Journal of W Wauk GJ 1

30 Jun 16 Sales 88 628 Trading 88 628 Balance transferred Trading 30 607 Cost of Goods Sold 30 607 Balance transferred Trading 58 021 Profit and Loss 58 021 Gross profit transferred to profit and loss Discount Received 47 Profit and Loss 47 Balances transferred Profit and Loss 40 432 Cartage Outwards 714 Advertising 254 Telephone 765 Wages 37 516 Electricity 915 Discount Allowed 116 Bad Debts 152 Balances transferred Profit and Loss 17 636

Capital 17 636 Net profit transferred to capital Capital 5 207 Drawings 5 207 Drawings closed out to capital



336

Question 8.55b continued (complete if question 8.55a was NOT done)

General Ledger of W Wauk Bank Accounts Receivable Control


Balance 3 984 Balance 814 Motor Vehicles Computer





Balance b/d Sales Discount Received


Cost of Goods Sold Cartage Outwards Balance 30 607 Trading 30 607 Balance 714 Profit & Loss 714

Advertising Telephone Balance 254 Profit & Loss 254 Balance 765 Profit & Loss 765

Wages Electricity Balance 37 516 Profit & Loss 37 516 Balance 915 Profit & Loss 915

Discount Allowed Bad Debts Balance 116 Profit & Loss 116 Balance 152 Profit & Loss 152



716 88 628

Profit and Loss 30 Jun 16 Cartage Outwards 714 30 Jun 16 Trading [gross profit] 58 021

Advertising 254 Discount Received 47 Telephone 765 Wages 37 516 Electricity 915 Discount Allowed 116 Bad Debts 152 Capital [net profit] 17 636 1836 58 068



337

Question 8.55b finalised (complete if question 8.55a was NOT done) Income Statement of W Wauk


Revenue

Sales 88 628




Total Revenue 58 068 less Expenses


Cartage Outwards 714

Advertising 254 968

General and Administrative Telephone 765

Wages 37 516

Electricity 915 39 196

Financial and Borrowing Discount Allowed 116

Bad Debts 152 268


Net Profit 17 636


Question 8.56a periodic inventory applies BS NCL MtgePrem BS CL A/c Pay BS CA A/c Rec PL FB Bnk Chrg BS CL Bnk O/d BS OE Cap PL OR Com Rec BS OE Draw PL GA Elect T CoGS Frt Inw BS CA GST Rec BS CL GST Pay PL FB Int Mort PL FB Int O/d T CoGS Inv open BS NCA Mot Veh PL GA Off Sal BS NCA Plt & Eq BS NCA Premis T CoGS Purch T R Sale PL SD Sal Sala PL GA Station PL GA Tphone

BS CA Inv close (T) (CoGS) (Inv close)

General Journal of S W Rocks GJ 1 31 Mar 16 Sales 268 829

Trading 268 829 Balance transferred


continued



338

Question 8.56a continued (periodic inventory applies) General Journal of S W Rocks continued GJ 1


Trading 98 549 Profit and Loss 98 549 Gross profit transferred

Commission Received 16 159 Profit and Loss 16 159 Balance transferred

Profit and Loss 97 654 Sales Salaries 38 714 Electricity 2 363 Office Salaries 47 152 Stationery 1 921 Telephone 725 Bank Charges 631 Interest on Mortgage 3 900 Interest on Overdraft 2 248 Balances transferred


Capital 2 139 Drawings 2 139 Drawings transferred to capital

General Ledger of S W Rocks

Accounts Receivable Control Inventory Balance 25 443 Balance open 11 822 Trading 11 822

Trading 14 676 GST Receivable Motor Vehicles

Balance 4 455 Balance 28 195 Plant and Equipment Premises

Balance 49 159 Balance 50 000 Accounts Payable Control Bank Overdraft

Balance 14 982 Balance 8 784 GST Payable Mortgage on Premises




Balance b/d 111 441 continued



339


General Ledger of S W Rocks continued Sales Commission Received

Trading 268 829

Balance 268 829

Profit & Loss

16 159 Balance 16 159

Purchases Freight Inwards Balance 172

139 Trading 172

139 Balance 995 Trading 995

Sales Salaries Electricity Balance 38 714 Profit &

Loss 38 714 Balance 2 363 Profit &

Loss 2 363

Office Salaries Stationery Balance 47 152 Profit &


Loss 1 921

Telephone Bank Charges Balance 725 Profit &

Loss 725 Balance 631 Profit &

Loss 631

Interest on Mortgage Interest on Overdraft Balance 3 900 Profit &


Loss 2 248

Trading

31 Mar 16 Inventory [opening] 11 822 31 Mar 16 Sales 268 829 Purchases 172 139 Inventory [closing] 14 676 Freight Inwards 995 Profit & Loss [gross profit] 98 549 283 505 283 505

Profit and Loss 31 Mar 16 Sales Salaries 38 714 31 Mar 16 Trading [gross profit] 98 549

Bank Charges 631 Commission R i d

16 159 Electricity 2 363 Office Salaries 47 152 Stationery 1 921 Telephone 725 Interest on Mortgage 3 900 Interest on Overdraft 2 248 Capital [net profit] 17 054 114 708 114 708



340


Income Statement of S W Rocks for the year ended 31 March 2016

Revenue Sales 268 829

less Cost of Goods Sold

Inventory [opening] 11 822

Purchases 172 139

Freight Inwards 995

Cost of goods available for sale 184 956 less Inventory [closing] 14 676 170 280


Commission Received 16 159



Sales Salaries 38 714

General and Administrative

Electricity 2 363


Stationery 1 921

Telephone 725 52 161

Financial and Borrowing Bank Charges 631

Interest on Mortgage 3 900

Interest on Overdraft 2 248 6 779




341

Question 8.56a finalised (periodic inventory applies)

Balance Sheet of S W Rocks as at 31 March 2016

Current Assets Accounts Receivable Control 25 443 Inventory 14 676 GST Receivable 4 455 44 574

Non-current Assets Motor Vehicles 28 195 Plant and Machinery 49 159 Premises 50 000 127 354






BS NCL Mort Prem BS CL Acc Payab BS CA Acc Rec PL FB Bnk Char BS CL Bank O/d BS OE Capital PL OR Comm Rec BS OE Drawing PL GA Electric BS CA GST Rec BS CL GST Pay PL FB Int Mort PL FB Int O/d BS CA Invent BS NCA Mot Veh PL GA Off Sal BS NCA Plant Equ BS NCA Premise T CoGS CoGS T R Sales PL SD Sale Sal PL GA Station PL GA Tphone

General Journal of S W Rocks GJ 1

31 Mar 16 Sales 268 829 Trading 268 829 Balance transferred

Trading 170 280 Cost of Goods Sold 170 280 Balance transferred




342

Question 8.56b perpetual inventory applies (complete if question 8.56a was done) Extract General Ledger of S W Rocks

Sales Cost of Goods Sold Trading 268 829 Balance 268 829 Balance 170 280 Trading 170 280 Trading 31 Mar 16 Cost of Goods Sold 170 280 31 Mar 16 Sales 268 829


Profit and Loss 31 Mar 16 Trading 98 549

Extract Income Statement of S W Rocks

for the year ended 31 March 2016


Question 8.56b perpetual inventory applies (complete if question 8.56a was NOT done) General Journal of S W Rocks GJ 1

31 Mar 16 Sales 268 829 Trading 268 829 Balance transferred



Commission Received 16 159 Profit and Loss 16 159 Balance transferred

Profit and Loss 97 654 Sales Salaries 38 714 Electricity 2 363 Office Salaries 47 152 Stationery 1 921 Telephone 725 Bank Charges 631 Interest on Mortgage 3 900 Interest on Overdraft 2 248 Balances transferred





343


General Ledger of S W Rocks Accounts Receivable Control Inventory

Balance 25 443 Balance 14 676 GST Receivable Motor Vehicles

Balance 4 455 Balance 28 195 Plant and Equipment Premises


Balance 14 982 Balance 8 784 GST Payable Mortgage on Premises




Balance b/d 111 441 Sales Commission Received


Cost of Goods Sold Sales Salaries Balance 170 280 Trading 170 280 Balance 38 714 Profit & Loss 38 714

Electricity Office Salaries Balance 2 363 Profit & Loss 2 363 Balance 47 152 Profit & Loss 47 152

Stationery Telephone Balance 1 921 Profit & Loss 1 921 Balance 725 Profit & Loss 725

Bank Charges Interest on Mortgage Balance 631 Profit & Loss 631 Balance 3 900 Profit & Loss 3 900

Interest on Overdraft


Trading 31 Mar16 Cost of Goods Sold 170 280 31 Mar16 Sales 268 829


continued



344

Question 8.56b continued (complete if question 8.56a was NOT done)

General Ledger of S W Rocks continued Profit and Loss

31 Mar 16 Sales Salaries 38 714 31 Mar16 Trading [gross profit] 98 549 Bank Charges 631 Commission Received 16 159 Electricity 2 363 Office Salaries 47 152 Stationery 1 921 Telephone 725 Interest on Mortgage 3 900 Interest on Overdraft 2 248 Capital [net profit] 17 054 114 708 114 708

Income Statement of S W Rocks for the year ended 31 March 2016




Commission Received 16 159





Electricity 2 363


Stationery 1 921


Financial and Borrowing Bank Charges 631




Net Profit 17 054




345

Question 8.57a periodic inventory applies BS CA Bank BS CA A/c rec T CoGS Inv open BS CA GST Rec BS NCA Freeh Lnd BS NCA Build BS NCA Plt & Mach BS NCA Mot Veh BS CL A/c Pay BS CL GST Pay BS NCL Mortg BS OE Cap BS OE Draw T R Sale PL OR Rent Rec PL OR Disc Rec T CoGS Purch T CoGS Frt Inw PL SD Advert PL SD Salar Sale

PL GA Salar Off PL GA Insur PL GA Tphone PL GA Elect PL GA Veh Exp PL GA Rate PL FB Bd Debt PL FB Disc All PL FB Int Mortg BS CA Inv close (T) (CoGS) (Inv close)

General Journal of K Yogle GJ 1



Inventory [closing] 6 507 Trading 6 507 Closing inventory as per stocktake


Rent Received 3 600 Discount Received 387 Profit and Loss 3 987 Balances transferred

Profit and Loss 46 133 Advertising 769 Salaries – Sales 14 676 Salaries – Office 15 804 Insurance 822 Telephone 652 Electricity 1 822 Vehicle Expenses 2 719 Rates 893 Bad Debts 261 Discount Allowed 215 Interest on Mortgage 7 500 Balances transferred to profit and loss





346


General Ledger of K Yogle Bank Accounts Receivable Control


Balance open 6 732 Trading 6 732 Balance 1 375

Trading 6 507 Freehold Land Buildings

Balance 75 000 Balance 16 200 Plant and Machinery Motor Vehicles


Balance 4 730 Balance 3 135 Mortgage on Freehold Land Capital

Balance 50 000 Drawings 2 187 Balance 119 752 Balance c/d 152 431 Profit & Loss 34 866 154 618 154 618



Rent Received Discount Received Profit & Loss 3 600 Balance 3 600 Profit & Loss 387 Balance 387

Purchases Freight Inwards Balance 47 501 Trading 47 501 Balance 701 Trading 701

Advertising Salaries – Sales Balance 769 Profit & Loss 769 Balance 14 676 Profit & Loss 14 676

Salaries – Office Insurance Balance 15 804 Profit & Loss 15 804 Balance 822 Profit & Loss 822

Telephone Electricity Balance 652 Profit & Loss 652 Balance 1 822 Profit & Loss 1 822

Vehicle Expenses Rates Balance 2 719 Profit & Loss 2 719 Balance 893 Profit & Loss 893

Bad Debts Discount Allowed Balance 261 Profit & Loss 261 Balance 215 Profit & Loss 215

Interest on Mortgage Balance 7 500 Profit & Loss 7 500 continued



347


General Ledger of K Yogle continued Trading

30 Jun 16 Inventory [opening] 6 732 30 Jun 16 Sales 125 439 Purchases 47 501 Inventory [closing] 6 507 Freight Inwards 701 Profit & Loss [gross profit] 77 012

131 946 131 946


Salaries – Sales 14 676 Rent Received 3 600 Salaries – Office 15 804 Discount Received 387 Insurance 822 Telephone 652 Electricity 1 822 Vehicle Expenses 2 719 Rates 893 Bad Debts 261 Discount Allowed 215 Interest on Mortgage 7 500 Capital [net profit] 34 866 80 999 80 999



348


Income Statement of K Yogle for the year ended 30 June 2016




Rent Received 3 600 Discount Received 387 3 987


Advertising 769 Salaries – Sales 14 676 15 445

General and Administrative Salaries – Office 15 804 Insurance 822 Telephone 652 Electricity 1 822 Vehicle Expenses 2 719 Rates 893 22 712

Financial and Borrowing Bad Debts 261 Discount Allowed 215 Interest on Mortgage 7 500 7 976




349


Balance Sheet of K Yogle as at 30 June 2016

Current Assets Bank 37 428 Accounts Receivable Control 14 069 Inventory 6 507 GST Receivable 1 375 59 379

Non-current Assets Freehold Land 75 000 Buildings 16 200 Plant and Machinery 35 683 Motor Vehicles 24 034 150 917



Non-current Liabilities Mortgage on Freehold Land 50 000 less Total Liabilities 57 865 Net Assets 152 431



BS CA Bank BS CA A/c rec BS CA Invent BS CA GST Rec BS NCA Freeh Lnd BS NCA Build BS NCA Plt & Mach BS NCA Mot Veh BS CL A/c Pay BS CL GST Pay BS NCL Mortg BS OE Cap BS OE Draw T R Sale PL OR Rent Rec PL OR Disc Rec T CoGS CoGS PL SD Advert PL SD Salar Sale PL GA Salar Off

PL GA Insur PL GA Tphone PL GA Elect PL GA Veh Exp PL GA Rate PL FB Bd Debt PL FB Disc All PL FB Int Mortg

General Journal of K Yogle GJ 1






350

Question 8.57b continued (complete if question 8.57a was done)

Extract General Ledger of K Yogle Sales Cost of Goods Sold





Extract Income Statement of K Yogle




General Journal of K Yogle GJ 1 30 Jun 16 Sales 125 439


Trading 48 427 Cost of Goods Sold 48 427 Balances transferred


Rent Received 3 600 Discount Received 387 Profit and Loss 3 987 Balances transferred

Profit and Loss 46 133 Advertising 769 Salaries – Sales 14 676 Salaries – Office 15 804 Insurance 822 Telephone 652 Electricity 1 822 Vehicle Expenses 2 719 Rates 893 Bad Debts 261 Discount Allowed 215 Interest on Mortgage 7 500 Balances transferred to profit and loss

continued



351


General Journal of K Yogle continued GJ 1 Profit and Loss 34 866 Capital 34 866 Net profit transferred to capital


General Ledger of K Yogle


Inventory GST Receivable Balance 6 507 Balance 1 375

Freehold Land Buildings Balance 75 000 Balance 16 200

Plant and Machinery Motor Vehicles Balance 35 683 Balance 24 034


Mortgage on Freehold Land Capital Balance 50 000 Drawings 2 187 Balance 119 752 Balance c/d 152 431 Profit & Loss 34 866 154 618 154 618



Rent Received Discount Received Profit & Loss 3 600 Balance 3 600 Profit & Loss 387 Balance 387

Cost of Goods Sold Advertising Balance 48 427 Trading 48 427 Balance 769 Profit & Loss 769

Salaries – Sales Salaries – Office Balance 14 676 Profit & Loss 14 676 Balance 15 804 Profit & Loss 15 804

Insurance Telephone Balance 822 Profit & Loss 822 Balance 652 Profit & Loss 652

Electricity Vehicle Expenses Balance 1 822 Profit & Loss 1 822 Balance 2 719 Profit & Loss 2 719

Rates Bad Debts Balance 893 Profit & Loss 893 Balance 261 Profit & Loss 261

Discount Allowed Interest on Mortgage Balance 215 Profit & Loss 215 Balance 7 500 Profit & Loss 7 500

continued



352

Question 8.57b finalised (complete if question 8.57a was NOT done)

General Ledger of K Yogle continued Trading

30 Jun 16 Cost of Goods Sold 48 427 30 Jun 16 Sales 125 439 Profit & Loss [gross profit] 77 012 125 439 125 439


Salaries – Sales 14 676 Rent Received 3 600 Salaries – Office 15 804 Discount Received 387 Insurance 822 Telephone 652 Electricity 1 822 Vehicle Expenses 2 719 Rates 893 Bad Debts 261 Discount Allowed 215 Interest on Mortgage 7 500 Capital [net profit] 34 866 80 999 80 999

Income Statement of K Yogle



Rent Received 3 600 Discount Received 387 3 987


Advertising 769 Salaries – Sales 14 676 15 445

General and Administrative Salaries – Office 15 804 Insurance 822 Telephone 652 Electricity 1 822 Vehicle Expenses 2 719 Rates 893 22 712

Financial and Borrowing Bad Debts 261 Discount Allowed 215 Interest on Mortgage 7 500 7 976





353

Question 8.58a periodic inventory applies BS CA Pet Cash BS CA A/c Rec T CoGS Inv open BS CA GST Rec BS NCA Prem BS NCA Plt & Eq BS NCA Mot Veh BS CL Bank O/d BS CL A/c Pay BS CL GST Pay BS NCL Loan BS OE Cap BS OE Draw T R Sale PL OR B D Rec T CoGS Purch T CoGS Cust Dut PL SD Sal Com PL SD Del Exp PL GA Salar

PL GA Coun Rat PL GA Donat PL GA Light & Po PL GA Post PL GA M Veh Exp PL GA Photoc PL GA Station PL GA Tphone PL FB Bnk Char PL FB Int O/d PL FB Bd Debt PL FB D Coll Exp BS CA Inv close (T) (CoGS

) (Inv close)

General Journal of T Broadwater GJ 1

31 Dec 16 Sales 127 868 Trading 127 868 Balance transferred

Trading 77 904 Inventory 11 253 Purchases 65 253 Customs Duty 1 398 Balances transferred

Inventory 9 223 Trading 9 223 Closing inventory as per stocktake


Bad Debts Recovered 150 Profit and Loss 150 Balances transferred

Profit and Loss 61 337 Sales Commission 1 799 Delivery Expenses 493 Salaries 46 253 Council Rates 2 746 Donations 57 Light and Power 1 706 Postage 282 Motor Vehicle Expenses 1 584 Photocopying 219 Stationery 374 Telephone 688 Bank Charges 303 Interest on Overdraft 3 657 Bad Debts 923 Debt Collection Expenses 253 Balances transferred

continued



354


General Journal of T Broadwater continued GJ 1 Capital 2 000 Profit and Loss 2 000 Net loss transferred to capital

Capital 700 Drawings 700 Drawings closed to capital

Extract General Ledger of T Broadwater Petty Cash Accounts Receivable Control

Balance 225 Balance 17 050 Inventory GST Receivable

Balance 11 253 Trading 11 253 Balance 1 815

Trading 9 223 Premises Plant and Equipment

Balance 69 400 Balance 60 700 Motor Vehicles

Balance 21 960 Bank Overdraft Accounts Payable Control

Balance 24 819 Balance 4 719 GST Payable Loan from P Macquarie


Profit & Loss 2 000 Balance 142 834 Balance 700 Capital 700

Drawings 700 Balance c/d 140 134 Sales 142 834 142 834 Trading 127 868 Balance 127 868

Balance b/d 140 134 Bad Debts Recovered Purchases

Profit & Loss 150 Balance 150 Balance 65 253 Trading 65 253

Customs Duty Sales Commission Balance 1 398 Trading 1 398 Balance 1 799 Profit & Loss 1 799

Delivery Expenses Salaries Balance 493 Profit & Loss 493 Balance 46 253 Profit & Loss 46 253

Council Rates Donations Balance 2 746 Profit & Loss 2 746 Balance 57 Profit & Loss 57

Light and Power Postage Balance 1 706 Profit & Loss 1 706 Balance 282 Profit & Loss 282

Motor Vehicle Expenses Photocopying Balance 1 584 Profit & Loss 1 584 Balance 219 Profit & Loss 219

continued



355


Extract General Ledger of T Broadwater continued Stationery Telephone


Bank Charges Interest on Overdraft Balance 303 Profit & Loss 303 Balance 3 657 Profit & Loss 3 657

Bad Debts Debt Collection Expenses Balance 923 Profit & Loss 923 Balance 253 Profit & Loss 253 Trading 31 Dec 16 Inventory 11 253 31 Dec 16 Sales 127 868

Purchases 65 253 Inventory 9 223

Customs Duty 1 398

Profit and Loss 59 187

137 091 137 091

Profit and Loss 31 Dec 16 Sales Commission 1 799 31 Dec 16 Trading 59 187

Delivery Expenses 493 Bad Debts Recovered 150 Salaries 46 253 Capital 2 000 Council Rates 2 746 Donations 57 Light and Power 1 706 Postage 282 Motor Vehicle Expenses 1 584 Photocopying 219 Stationery 374 Telephone 688 Bank Charges 303 Interest on Overdraft 3 657 Bad Debts 923 Debt Collection Expense 253 61 337 61 337



356


Income Statement of T Broadwater for the year ended 31 December 2016


Inventory 11 253 Purchases 65 253 Customs Duty 1 398 Cost of goods available for sale 77 904 less Inventory 9 223 68 681

Gross Profit 59 187 add Other Revenue Bad Debts Recovered 150 Total Revenue 59 337 less Expenses Selling and Distribution

Sales Commission 1 799 Delivery Expenses 493 2 292 General and Administrative Salaries 46 253 Council Rates 2 746 Donations 57 Light and Power 1 706 Postage 282 Motor Vehicle Expenses 1 584 Photocopying 219 Stationery 374 Telephone 688 53 909

Financial and Borrowing Bank Charges 303 Interest on Overdraft 3 657 Bad Debts 923 Debt Collection Expenses 253 5 136




357


Balance Sheet of T Broadwater as at 31 December 2016

Current Assets Petty Cash 225 Accounts Receivable Control 17 050 Inventory 9 223 GST Receivable 1 815 28 313

Non-current Assets Premises 69 400 Plant and Equipment 60 700 Motor Vehicles 21 960 152 060



Non-current Liabilities Loan from P Macquarie 7 500 less Total Liabilities 40 239 Net Assets 140 134

Owner’s Equity Capital 142 834 less Net Loss 2 000 140 834 less Drawings 700



BS CA Pett Cash BS CA Acc Rec BS CA Invent BS CA GST Rec BS NCA Premise BS NCA Plnt Equip BS NCA Mot Veh BS CL Bank Od BS CL Acc Pay BS CL GST Pay BS NCL Loan PMac BS OE Capital BS OE Drawing T R Sales PL OR Bd Dbt Re T CoGS CoGS PL SD Sale Com PL SD Deliv Exp PL GA Salaries PL GA Coun Rate PL GA Donation PL GA Light Pow PL GA Postag PL GA Mt Ve Exp PL GA Photocop PL GA Station PL GA Tphone PL FB Bank Char PL FB Int Odraft PL FB Bad Debt PL FB Deb Col Ex

General Journal of T Broadwater GJ 1

31 Dec 16 Sales 127 868 Trading 127 868 Balance transferred





358

Question 8.58b perpetual inventory continued (complete if question 8.58a was done)

Extract General Ledger of T Broadwater Sales Cost of Goods Sold


Trading 31 Dec 16 Cost of Goods Sold 68 681 31 Dec 16 Sales 127 868

Profit & Loss 59 187 127 868 127 868

Profit and Loss 31 Dec 16 Trading 59 187

Extract Income Statement of T Broadwater




General Journal of T Broadwater GJ 1 31 Dec 16 Sales 127 868

Trading 127 868 Balance transferred Trading 68 681 Cost of Goods Sold 68 681 Balance transferred Trading 59 187 Profit and Loss 59 187 Gross profit transferred Bad Debts Recovered 150 Profit and Loss 150 Balances transferred

continued



359

Question 8.58b perpetual inventory cont . . . (complete if question 8.58a was NOT done)

General Journal of T Broadwater continued GJ 1 Profit and Loss 61 337 Sales Commission 1 799 Delivery Expenses 493 Salaries 46 253 Council Rates 2 746 Donations 57 Light and Power 1 706 Postage 282 Motor Vehicle Expenses 1 584 Photocopying 219 Stationery 374 Telephone 688 Bank Charges 303 Interest on Overdraft 3 657 Bad Debts 923 Debt Collection Expenses 253 Balances transferred Capital 2 000 Profit and Loss 2 000 Net loss transferred to Capital Capital 700 Drawings 700 Drawings closed to Capital

General Ledger of T Broadwater

Petty Cash Accounts Receivable Control Balance 225 Balance 17 050


Premises Plant and Equipment Balance 69 400 Balance 60 700

Motor Vehicles Bank Overdraft Balance 21 960 Balance 24 819


Loan from P Macquarie Capital Balance 7 500 Profit & Loss 2 000 Balance 142 834 Drawings 700

Drawings Balance c/d 140 134

Balance 700 Capital 700 142 834 142 834

Balance b/d 140 134 continued



360

Question 8.58b perpetual inventory cont . . . (complete if question 8.58a was NOT done) General Ledger of T Broadwater continued

Sales Bad Debts Recovered Trading 127 868 Balance 127 868 Profit & Loss 150 Balance 150

Cost of Goods Sold Sales Commission Balance 68 681 Trading 68 681 Balance 1 799 Profit & Loss 1 799

Delivery Expenses Salaries Balance 493 Profit & Loss 493 Balance 46 253 Profit & Loss 46 253

Council Rates Donations Balance 2 746 Profit & Loss 2 746 Balance 57 Profit & Loss 57

Light and Power Postage Balance 1 706 Profit & Loss 1 706 Balance 282 Profit & Loss 282

Motor Vehicle Expenses Photocopying Balance 1 584 Profit & Loss 1 584 Balance 219 Profit & Loss 219

Stationery Telephone Balance 374 Profit & Loss 374 Balance 688 Profit & Loss 688

Bank Charges Interest on Overdraft Balance 303 Profit & Loss 303 Balance 3 657 Profit & Loss 3 657

Bad Debts Debt Collection Expenses Balance 923 Profit & Loss 923 Balance 253 Profit & Loss 253

Trading 31 Dec16 Cost of Goods Sold 68 681 31 Dec16 Sales 127 868


127 868 127 868

Profit and Loss 31 Dec16 Sales Commission 1 799 31 Dec16 Trading 59 187

Delivery Expenses 493 Bad Debts Recovered 150 Salaries 46 253 Capital 2 000 Council Rates 2 746 Donations 57 Light and Power 1 706 Postage 282 Motor Vehicle Expenses 1 584 Photocopying 219 Stationery 374 Telephone 688 Bank Charges 303 Interest on Overdraft 3 657 Bad Debts 923 Debt Collection Expen 253 61 337 61 337



361


Income Statement of T Broadwater for the year ended 31 December 2016

Revenue Sales 127 868 less Cost of Goods Sold 68 681 Gross Profit 59 187 add Other Revenue Bad Debts Recovered 150 Total Revenue 59 337 less Expenses Selling and Distribution

Sales Commission 1 799 Delivery Expenses 493 2 292

General and Administrative Salaries 46 253 Council Rates 2 746 Donations 57 Light and Power 1 706 Postage 282 Motor Vehicle Expenses 1 584 Photocopying 219 Stationery 374 Telephone 688 53 909

Financial and Borrowing Bank Charges 303 Interest on Overdraft 3 657 Bad Debts 923 Debt Collection Expenses 253 5 136


For this question, the Balance Sheet for 8.58b will be identical to that for 8.58a.



362

Question 8.59a periodic inventory applies BS CL A/c Pay BS CA A/c rec PL SD Advert PL FB Bd Debt BS CL Bnk O/d BS OE Cap T CoGS Crt Inw PL SD Crt Out PL FB Db Col Ex PL FB Disc All PL OR Disc Rec T CoGS Dut Whfg PL GA Elect BS CA GST Rec BS CL GST Pay PL GA Insur PL FB Int O/d T CoGS Invent PL GA Leg Exp PL GA Off Clng PL GA Off Exp PL GA Off Sala BS NCA Premi T CoGS Purch PL GA Rat & Tx PL OR Rent Rec PL GA R & M T R Sale PL SD Sal Com PL SD Sal Sala PL SD Trav Exp BS CA Invent (T) (CoGS) (Invent)

General Journal of C Byron GJ 1 30 Jun 16 Sales 109 117

Trading 109 117 Balance transferred Trading 35 674 Inventory 4 540 Purchases 27 989 Cartage Inwards 418 Duty and Wharfage 2 727 Balances transferred Inventory 3 104 Trading 3 104 Closing inventory as per stocktake Trading 76 547 Profit and Loss 76 547 Gross profit transferred Discount Received 281 Rent Received 2 798 Profit and Loss 3 079 Balances transferred

continued



363


General Journal of C Byron continued GJ 1 Profit and Loss 52 801 Advertising 1 293 Cartage Outwards 1 178 Sales Commission 3 878 Sales Salaries 15 815 Travellers Expenses 1 677 Electricity 1 522 Insurance 254 Legal Expenses 328 Office Cleaning 1 605 Office Expenses 2 181 Office Salaries 18 776 Rates and Taxes 1 653 Repairs and Maintenance 1 168 Bad Debts 294 Debt Collection Expenses 175 Discount Allowed 185 Interest on Overdraft 819 Balances transferred Profit and Loss 26 825 Capital 26 825 Net profit transferred to capital

General Ledger of C Byron

Accounts Receivable Control Inventory Balance 10 835 Balance 4 540 Trading 4 540

Trading 3 104 GST Receivable Premises



Balance 2 728 Balance 27 255 Profit & Loss 26 825 54 080

Sales Discount Received Trading 109 117 Balance 109 117 Profit & Loss 281 Balance 281

Rent Received Purchases

Profit & Loss 2 798 Balance 2 798 Balance 27 989 Trading 27 989

Cartage Inwards Duty and Wharfage

Balance 418 Trading 418 Balance 2 727 Trading 2 727

continued



364


General Ledger of C Byron continued Advertising Cartage Outwards


Sales Commission Sales Salaries


Travellers Expenses Electricity


Insurance Legal Expenses


Office Cleaning Office Expenses


Office Salaries Rates and Taxes


Repairs and Maintenance Bad Debts


Debt Collection Expenses Discount Allowed




Trading 30 Jun 16 Inventory 4 540 30 Jun 16 Sales 109 117


Cartage inwards 418

Duty and Wharfage 2 727

Profit & Loss 76 547

112 221 112 221

continued



365


General Ledger of C Byron continued Profit and Loss

30 Jun 16

Advertising 1 293 30 Jun 16 Trading 76 547

Cartage Outwards 1 178 Discount Received 281 Sales Commission 3 878 Rent Received 2 798 Sales Salaries 15 815 Travellers Expenses 1 677 Electricity 1 522 Insurance 254 Legal Expenses 328 Office Cleaning 1 605 Office Expenses 2 181 Office Salaries 18 776 Rates and Taxes 1 653 Repairs & Maintenance 1 168 Bad Debts 294 Debt Collection Expense 175 Discount Allowed 185 Interest on Overdraft 819 Capital 26 825 79 626 79 626



366


Income Statement of C Byron for the year ended 30 June 2016

Revenue

Sales 109 117


Inventory 4 540

Purchases 27 989

Cartage Inwards 418

Duty and Wharfage 2 727

Cost of goods available for sale 35 674 less Inventory 3 104 32 570



Rent Received 2 798 3 079



Advertising 1 293

Cartage Outwards 1 178

Sales Commission 3 878


Travellers Expenses 1 677 23 841


Electricity 1 522

Insurance 254

Legal Expenses 328

Office Cleaning 1 605

Office Expenses 2 181


Rates and Taxes 1 653

Repairs and Maintenance 1 168 27 487

Financial and Borrowing

Bad Debts 294

Debt Collection Expenses 175


Interest on Overdraft 819 1 473


Net Profit 26 825



367


Balance Sheet of C Byron as at 30 June 2016

Current Assets

Accounts Receivable Control 10 835

Inventory 3 104

GST Receivable 1 067 15 006

Non-current Assets Premises 47 480

Total Assets 62 486

Current Liabilities Accounts Payable Control 2 574

Bank Overdraft 3 104

GST Payable 2 728 8 406

less Total Liabilities 8 406

Net Assets 54 080

Owner’s Equity Capital 27 255

add Net Profit 26 825



BS CL Acc Pay BS CA Acc Rec PL SD Advert PL FB Bad Debt BS CL Bank Od BS OE Capital PL SD Cart Outw PL FB Dbt Col Ex PL FB Disc Allow PL OR Disc Rec PL GA Electric BS CA GST Rec BS CL GST Pay PL GA Insur PL FB Intere Od BS CA Invent PL GA Legl Exp PL GA Off Clean PL GA Off Exp PL GA Off Sala BS NCA Premise T CoGS CoGS PL GA Rate Tax PL OR Rent Rec PL GA Rep Maint T R Sales PL SD Sale Com PL SD Sale Salar PL SD Travel Exp

General Journal of C Byron GJ 1






368

Question 8.59b perpetual inventory continued (complete if question 8.59a was done)

Extract General Ledger of C Byron Sales Cost of Goods Sold



Profit & Loss 76 547 109 117 109 117 Profit and Loss 30 Jun 16 Trading 76 547

Extract Income Statement of C Byron




General Journal of C Byron GJ 1 30 Jun 16 Sales 109 117




Discount Received 281 Rent Received 2 798 Profit and Loss 3 079 Balances transferred

continued



369


General Journal of C Byron continued GJ 1 30 Jun 16 Profit and Loss 52 801

Advertising 1 293 Cartage Outwards 1 178 Sales Commission 3 878 Sales Salaries 15 815 Travellers Expenses 1 677 Electricity 1 522 Insurance 254 Legal Expenses 328 Office Cleaning 1 605 Office Expenses 2 181 Office Salaries 18 776 Rates and Taxes 1 653 Repairs and Maintenance 1 168 Bad Debts 294 Debt Collection Expenses 175 Discount Allowed 185 Interest on Overdraft 819 Balances transferred


General Ledger of C Byron

Accounts Receivable Control Inventory Balance 10 835 Balance 3 104

GST Receivable Premises Balance 1 067 Balance 47 480

Accounts Payable Control Bank Overdraft Balance 2 574 Balance 3 104

GST Payable Capital Balance 2 728 Balance 27 255 Profit & Loss 26 825 54 080

Sales Discount Received Trading 109 117 Balance 109 117 Profit & Loss 281 Balance 281

Rent Received Cost of Goods Sold

Profit & Loss 2 798 Balance 2 798 Balance 32 570 Trading 32 570

Advertising Cartage Outwards


Sales Commission Sales Salaries


continued



370


General Ledger of C Byron continued Travellers’ Expenses Electricity


Insurance Legal Expenses


Office Cleaning Office Expenses


Office Salaries Rates and Taxes


Repairs and Maintenance Bad Debts


Debt Collection Expenses Discount Allowed Balance 175 Profit & Loss 175 Balance 185 Profit & Loss 185



Trading 30 Jun

16

Cost of Goods Sold 32 570 30 Jun 16 Sales 109 117

Profit & Loss 76 547

109 117 109 117

Profit and Loss 30 Jun

16

Advertising 1 293 30 Jun 16 Trading 76 547

Cartage Outwards 1 178 Discount Received 281 Sales Commission 3 878 Rent Received 2 798 Sales Salaries 15 815 Travellers’ Expenses 1 677 Electricity 1 522 Insurance 254 Legal Expenses 328 Office Cleaning 1 605 Office Expenses 2 181 Office Salaries 18 776 Rates and Taxes 1 653 Repairs & Maintenance 1 168 Bad Debts 294 Debt Collection

Expense 175

Discount Allowed 185 Interest on Overdraft 819 Capital 26 825 79 626 79 626



371


Income Statement of C Byron for the year ended 30 June 2016


Discount Received 281 Rent Received 2 798 3 079


Advertising 1 293 Cartage Outwards 1 178 Sales Commission 3 878 Sales Salaries 15 815 Travellers Expenses 1 677 23 841

General and Administrative Electricity 1 522 Insurance 254 Legal Expenses 328 Office Cleaning 1 605 Office Expenses 2 181 Office Salaries 18 776 Rates and Taxes 1 653 Repairs and Maintenance 1 168 27 487

Financial and Borrowing Bad Debts 294 Debt Collection Expenses 175 Discount Allowed 185 Interest on Overdraft 819 1 473





372

Chapter 9 Matching expense and revenue to the accounting period Question 9.1 From top to bottom: accrual, expenses, end of period, accounting, cash accounting, adjustments, tax invoice, matching principle, balance day, revenues.

Question 9.2

General Journal of . . . GJ . . 30 Jun 16 Electricity 1 800

Expense Accrued 1 800

Balance day adjustment for electricity


Electricity [9000 + 1800] 10 800

Electricity closed out to profit and loss

1 Jul 16 Expense Accrued 1 800 Electricity 1 800 Reversal of balance day adjustment for electricity

Extract General Ledger of . . .

Electricity 30 Apr 16 Balance b/d 9 000 30 Jun 16 Profit and Loss GJ. 10 800

30 Jun 16 Expense Accrued [bda] GJ. 1 800

10 800 10 800

31 Jul 16 Accounts Payable Ctrl PD. 2 700 1 Jul 16 Expense Accrued [rev] GJ. 1 800

31 Jul 16 Balance c/d 900

2 700 2 700


Expense Accrued 1 Jul 16 Electricity [reversal] GJ. 1 800 30 Jun 16 Electricity [balance day adj] GJ. 1 800

Accounts Payable Control

31 Jul 16 Electricity PD. 2 700

Question 9.3

General Journal of . . . GJ . . 30 Jun 16 Wages 350

Expense Accrued 350

Accrual of wages incurred but not paid


Wages 20 350

Balance transferred to profit and loss

1 Jul 16 Expense Accrued 350 Wages 350 Reversal



373


Extract General Ledger of . . . Wages

30 Jun 16 Balance b/d 20 000 30 Jun 16 Profit and Loss 20 350

Expense Accrued [bda] 350

20 350 20 350

4 Jul 16 Bank [payment] 1 400 1 Jul 16 Expense Accrued [reversal]

350

4 Jul 16 Balance c/d 1 050

1 400 1 400


Expense Accrued 30 Jun 16 Wages [reversal] 350 30 Jun 16 Wages [balance day adjustment] 350

Bank 30 Jun 16 Payment [wages] 1 400

Question 9.4

General Journal of . . . GJ . . 30 Jun 16 Salaries 1 160


Accrual of four days’ salary


Salaries 69 160

Balance transferred

1 Jul 16 Expense Accrued 1 160 Salaries 1 160 Reversal


Salaries 1 Jun 16 Balance b/d 63 400 30 Jun 16 Profit and Loss 69 160 30 Jun 16 Bank [payment] 4 600

Expense Accrued [bda] 1 160

69 160 69 160

10 Jul 16 Bank [payment] 2 900 1 Jul 16 Expense Accrued [reversal] 1 160 10 Jul 16 Balance c/d 1 740

2 900 2 900

11 Jul 16 Balance b/d 1 740 Expense Accrued

1 Jul 16 Salaries [reversal] 1 160 30 Jun 16 Salaries [balance day adjustment] 1 160

Bank 10 Jul 16 Payment [salaries] 2 900



374

Question 9.5

General Journal of . . . GJ . . 30 Jun 16 Wages 750

Electricity 430 Stationery 150 Expense Accrued 1 330 Expenses accrued at the end of the accounting period

1 Jul 16 Expense Accrued 1 330 Wages 750 Electricity 430 Stationery 150 Reversals

Question 9.6

General Journal of . . . GJ . . 30 Jun 16 Expense Prepaid 500

Rates 500 Adjustment for rates prepaid by $500

Profit and Loss 2 000 Rates 2 000 Balance closed out

1 Jul 16 Rates 500 Expense Prepaid 500 Reversal


Rates 30 Jun 16 Balance b/d 2 500 30 Jun 16 Expense Prepaid [bal day adj] 500


2 500 2 500

1 Jul 16 Expense Prepaid [reversal] 500

Expense Prepaid 30 Jun 16 Rates [balance day adjustment] 500 1 Jul 16 Rates [reversal] 500

Question 9.7

General Journal of . . . GJ . . 30 Jun 16 Expense Prepaid 2 400

a Insurance 2 400 Insurance prepaid 8 months [1 July 2016 to 28 Feb 2017]

Profit and Loss 3 200 b Insurance 3 200 Balance transferred

1 Jul 16 Insurance 2 400 c Expense Prepaid 2 400 Reversal



375


Extract General Ledger of . . . Insurance

1 Feb 16 Balance b/d 2 000 30 Jun 16 Expense Prepaid [bda] 2 400

28 Feb 16 Bank [payment] 3 600 Profit and Loss 3 200

5 600 5 600

1 Jul 16 Expense Prepaid [reversal] 2 400 Expense Prepaid

30 Jun 16 Insurance [balance day adjust 2 400 1 Jul 16 Insurance [reversal] 2 400

Question 9.8 Not required by the question, but very helpful in obtaining the correct answer!

Insurance 31 Dec 16 Balance 1 730 31 Dec 16 Expense Prepaid [bda] 130

Profit and Loss 1 600 1 730 1 730

1 Jan 17 Expense Prepaid [reversal] 130 Expense Prepaid

31 Dec 16 Insurance [bda] 130 1 Jan 17 Insurance [reversal] 130

Wages 31 Dec 16 Balance 31 360 31 Dec 16 Profit and Loss 31 800

Expense Accrued [bda] 440 31 800 31 800 1 Jan 17 Expense Accrued [reversal] 440

Expense Accrued 1 Jan 17 Wages [reversal] 440 31 Dec 16 Wages [bda] 440

General Journal of . . . GJ . . 31 Dec 16 Expense Prepaid 130

Insurance 130 Adjustment for expense prepaid

Wages 440 Expense Accrued 440 Adjustment for expense accrued

Profit and Loss 33 400 Insurance 1 600 Wages 31 800 Balances transferred

1 Jan 17 Insurance 130 Expense Prepaid 130 Reversal

Expense Accrued 440 Wages 440 Reversal



376

Question 9.8 continued Extract Income Statement of . . .


less Expenses General and Administrative

Insurance 1 600 Wages 31 800 33 400

Extract Balance Sheet of . . . as at 31 December 2016

Current Assets Expense Prepaid 130 . . .

Current Liabilities Expense Accrued 440

Question 9.9

General Journal of . . . GJ . . 30 Jun 16 Revenue Accrued 375

Interest Received 375

Interest due but not yet received

Interest Received 2 513


Balance transferred

1 Jul 16 Interest Received 375 Revenue Accrued 375 Reversal


Interest Received 30 Jun 16 Profit and Loss 2 513 30 Jun 16 Balance b/d 2 138

Revenue Accrued [bda] 375

2 513 2 513

1 Jul 16 Revenue Accrued [reversal] 375

Revenue Accrued 30 Jun 16 Interest Received [bda] 375 1 Jul 16 Interest Received [reversal] 375



377

Question 9.10

General Journal of . . . GJ . . 30 Jun 16 Revenue Accrued 1 250


Interest accrued on government bonds



Balance transferred

1 Jul 16 Interest Received 1 250

Revenue Accrued 1 250 Reversal


Interest Received 30 Jun 16 Profit and Loss 3 000 30 Jun 16 Balance 1 750

Revenue Accrued [bda] 1 250

3 000 3 000

1 Jul 16 Revenue Accrued [reversal] 1 250 Revenue Accrued

30 Jun 16 Interest Received [bda] 1 250 1 Jul 16 Interest Received [reversal] 1 250


Extract General Ledger of . . . Wages

31 Dec 16 Balance 76 600 31 Dec 16 Profit and Loss 77 800 Expense Accrued [bda] 1 200 77 800 77 800 1 Jan 17 Expense Accrued [reversal] 1 200

Expense Accrued 1 Jan 17 Wages [reversal] 1 200 31 Dec 16 Wages [bda] 1 200

Interest Received 31 Dec 16 Profit and Loss 8 200 31 Dec 16 Balance 6 500

Revenue Accrued [bda] 1 700 8 200 8 200

1 Jan 17 Revenue Accrued [reversal] 1 700 Revenue Accrued

31 Dec 16 Interest Received [bda] 1 700 1 Jan 17 Interest Received [reversal] 1 700



378


General Journal of . . . GJ . . 31 Dec 16 Wages 1 200


Wages accrued

Revenue Accrued 1 700


Revenue not yet received



Revenue closed out


Wages 77 800

Expense closed out

1 Jan 17 Interest Received 1 700

Revenue Accrued 1 700

Reversal of revenue accrual


Wages 1 200

Reversal of expense accrual

Extract Income Statement of . . .


add Other Revenue Interest Received 8 200


Wages 77 800 [Net balance 69 600]

Extract Balance Sheet of . . .


Current Assets Revenue Accrued 1 700 . . .

Current Liabilities Expense Accrued 1 200

[Net balance 500]



379

Question 9.12

General Journal of . . . GJ . . 30 Jun 16 Rent Received 600

Revenue Received in Advance 600

Adjustment for July rent received in June

Rent Received 7 200


Balance transferred

1 Jul 16 Revenue Received in Advance 600 Rent Received 600 Reversal


Rent Received 30 Jun 16 Revenue Recd in Adv [bda] 600 30 Jun 16 Balance b/d 7 800


7 800 7 800

1 Jul 16 Revenue Rec’d in Adv [rev] 600 Revenue Received in Advance

1 Jul 16 Rent Received [reversal] 600 30 Jun 16 Rent Received [bda] 600

Question 9.13

General Journal of L Bathurst GJ 1 30 Jun 16 Rent Received 1 750

Revenue Received in Advance 1 750


Rent Received 21 000 Profit and Loss 21 000

Balance transferred

1 Jul 16 Revenue Received in Advance 1 750 Rent Received 1 750 Reversal

Extract General Ledger of L Bathurst Rent Received

30 Jun 16 Revenue Rec’d in Adv [rev] 1 750 30 Jun 16 Balance b/d 22 750 Profit and Loss 21 000

22 750 22 750

1 Jul 16 Inc Rec’d in Advance [rev] 1 750

Revenue Received in Advance 1 Jul 16 Rent Received [reversal] 1 750 30 Jun 16 Rent Received [bda] 1 750



380


30 Jun 16 Expense Prepaid 750 Insurance 750 Adjustment for insurance prepaid

Wages 600 Expense Accrued 600 Adjustment for wages accrued

Revenue Accrued 350 Interest Received 350 Adjustment for interest receivable

Rent Received 450 Revenue Received in Advance 450 Adjustment for rent received in advance


as at 30 June 2016

Current Assets Expense Prepaid 750 Revenue Accrued 350 1 100

Current Liabilities Expense Accrued 600 Revenue Received in Advance 450 1 050


1 Jul 16 Insurance 750 Expense Prepaid 750 Reversal

Expense Accrued 600 Wages 600 Reversal

Interest Received 350 Revenue Accrued 350 Reversal

Revenue Received in Advance 450 Rent Received 450 Reversal

Question 9.15

General Journal of Enid Fisher GJ 1 30 Jun 16 Expense Prepaid 3 050

Insurance 2 500 Rent 550 Adjustment for insurance and rent prepaid

Rent Received 250 Revenue Received in Advance 250 Adjustment for rent received in advance

continued



381


General Journal of Enid Fisher continued GJ 2 Bad Debts 990

GST Payable 99 Account Receivable Control 1 089 Adjustment for additional bad debts written off

Salaries 585 Expense Accrued 585 Adjustment for salaries incurred but not paid

Revenue Accrued 957 Interest Received 957 Adjustment for interest receivable

Rent Received [3016 – 250] 2 766 Interest Received [1042 + 957] 1 999 Profit and Loss 4 765 Revenue closed out to profit and loss account

Profit and Loss 27 816 Salaries [14 624 + 585] 15 209 Insurance [6573 – 2500] 4 073 Rent [7060 – 550] 6 510 Bad Debts [1034 + 990] 2 024 Expenses closed out to profit and loss

1 Jul 16 Insurance 2 500 Rent 550 Expense Prepaid 3 050 Reversal of expenses prepaid

Revenue Received in Advance 250 Rent Received 250 Reversal of revenue received in advance

Expense Accrued 585 Salaries 585 Reversal of salaries accrued

Interest Received 957 Revenue Accrued 957 Reversal of interest due but not received

Question 9.16

General Journal of R Williams GJ . . . 30 Jun 16 Doubtful Debts 1 200

Allowance for Doubtful Debts 1 200 Establishing Allowance for doubtful debts Profit and Loss 1 200 Doubtful Debts 1 200 Balance transferred



382


Extract General Ledger of R Williams Allowance for Doubtful Debts

30 Jun 16 Doubtful Debts 1 200

Doubtful Debts 30 Jun 16 Allow for Doubtful Debts 1 200 30 Jun 16 Profit and Loss 1 200

Question 9.17 Combined method:

General Journal of R Williams GJ 1 30 Jun 17 Allowance for Doubtful Debts 1 200

Bad Debts 1 200 Transfer of allowance from the beginning of the year Doubtful Debts 2 500 Allowance for Doubtful Debts 2 500 New 5% Prov of a/c receivable balance at year end Profit and Loss 4 853 Doubtful Debts 2 500 Bad Debts [3553 – 1200] 2 353 Balances closed out

Extract General Ledger of R Williams

Allowance for Doubtful Debts 30 Jun 17 Bad Debts 1 200 30 Jun 16 Doubtful Debts 1 200

30 Jun 17 Doubtful Debts 2 500

Doubtful Debts 30 Jun 17 Allow for Doubtful Debts 2 500 30 Jun 17 Profit and Loss 2 500

Bad Debts ye Jun 17 Accounts Receivable Control 3 553 30 Jun 17 Allow for Doubtful Debts 1 200


3 553 3 553

Extract Income Statement of R Williams for the year ended 30 June 2017

less Expenses Financial and Borrowing

Doubtful Debts 2 500 Bad Debts 2 353 4 853

Extract Balance Sheet of R Williams

as at 30 June 2017

Current Assets Accounts Receivable Control 49 995 less Allowance for Doubtful Debts 2 500 47 495



383


Extract General Ledger of . . . Accounts Receivable Control

31 Dec 16 Balance 60 610 31 Dec 16 Bad Debts 550 GST Payable 55 Balance c/d 60 005 60 610 60 610

1 Jan 17 Balance b/d 60 005 Allowance for Doubtful Debts

31 Dec 16 Bad Debts 750 31 Dec 16 Balance 750 Doubtful Debts 1 200 1 200

GST Payable 31 Dec 16 Accounts Receivable Control 55 31 Dec 16 Balance 1 000

Balance c/d 945 1 000 1 000 1 Jan 17 Balance b/d 945

Bad Debts Expense 31 Dec 16 Balance 2 500 31 Dec 16 Allowance for Doubtful Debts 750

Accounts Receivable Control 550 Profit and Loss 2 300 3 050 3 050

Doubtful Debts Expense 31 Dec 16 Allowance for Doubtful Debts 1 200 31 Dec 16 Profit and Loss 1 200

General Journal of . . . GJ . . 31 Dec 16 Bad Debts 550

GST Payable 55 Accounts Receivable Control 605 Write off of bad debts

Allowance for Doubtful Debts 750 Bad Debts 750 Adjust Doubtful Debt Allowance to 2% of acounts receivable

Doubtful Debts 1 200 Allowance for Doubtful Debts 1 200 Adjust Doubtful Debt Allowance to 2% of acounts receivable

Profit and Loss 3 500 Bad Debts 2 300 Doubtful Debts 1 200 Expense accounts closed out to profit and loss

1 Jan 17 nil reversals



384

Question 9.18

Extract Income Statement of . . . for the year ended 31 December 2016


Bad Debts 2 300 Doubtful Debts 1 200 3 500



Current Assets Accounts Receivable Control 60 005 less Allowance for Doubtful Debts 1 200 58 805

Current Liabilities GST Payable net balance 57 860 945

Question 9.19 Cost of equipment 35 000 less Residual value 3 000 Depreciable amount 32 000 Depreciation over 4 years (25% p.a.) Depreciation for one year (32 000/4) 8 000

Extract General Journal of P Way GJ 1

30 Jun 16 Depreciation – Motor Vehicle 8 000 Accumulated Depreciation – Motor Vehicle 8 000 Depreciation for one year Profit and Loss 8 000 Depreciation – Motor Vehicle 8 000 Depreciation – motor vehicle closed out to profit & loss

Extract Income Statement of P Way



Depreciation – Motor Vehicle 8 000

Extract Balance Sheet of P Way

as at 30 June 2016

Non-current Assets Motor Vehicle 35 000 less Accumulated Depreciation 8 000 27 000



385

Question 9.20 Cost of equipment 21 000 less Residual value 1 000 Depreciable amount 20 000 Depreciation rate of 15% pa Depreciation for one year (20 000 * 0.15) 3 000

The period 31 December 2015 to 30 June 2016 is 6 months, or half a year, so the depreciation is 3000/12 * 6 = 1500

Extract General Journal of . . . GJ . . 30 Jun 16 Depreciation – Equipment 1 500

Accumulated Depreciation – Equipment 1 500 Depreciation for six months Profit and Loss 1 500 Depreciation – Equipment 1 500 Depreciation closed out to profit and loss




Depreciation – Equipment 1 500


as at 30 June 2016

Non-current Assets Equipment 21 000 less Accumulated Depreciation 1 500 19 500

Question 9.21

Extract General Journal of M Bromley GJ . . 30 Jun 16 Depreciation – Office Equipment 3 500

Accumulated Depreciation – Office Equipment 3 500 Depreciation on office equipment for the year

Extract Balance Sheet of M Bromley

as at 30 June 2016

Non-current Assets Office Equipment 17 500 less Accumulated Depreciation 5 250 12 250



386

Question 9.22

General Journal of D Burrendong GJ 1 30 Jun 15 Depreciation – Machinery 550

Accumulated Depreciation – Machinery 550 Depreciation 6 months [5700 – 200 = (5500 * 0.2) / 12 * 6] Depreciation – Office Equipment 300 Accumulated Depreciation – Office Equipment 300 Depreciation for 6 months [(4000 * 0.15) / 12 *6] Profit and Loss 850 Depreciation – Machinery 550 Depreciation – Office Equipment 300 Balances transferred

Extract Income Statement of D Burrendong



Depreciation – Machinery 550 Depreciation – Office Equipment 300 850

Extract Balance Sheet of D Burrendong as at 30 June 2015

Non-current Assets Machinery 5 700 less Accumulated Depreciation 550 5 150 Office Equipment 4 000 less Accumulated Depreciation 300 3 700 8 850


Non-current Assets Machinery 5 700 less Accumulated Depreciation 1 650 4 050 Office Equipment 4 000 less Accumulated Depreciation 900 3 100 7 150

Question 9.23 a. true b. false c. both periodic and perpetual d. perpetual e. false f. true g. true h. true i. false j false



387

Question 9.24 Part a: As if GST did not legally apply Part b: GST as it does legally apply Inventory Variance [loss] 500 Inventory Variance [loss] 550 Inventory 500 Inventory 500 Reduce Inventory from 7500 to 7000 after partial stocktake GST Receivable 50

Reduce Inventory a/c from 7500 to 7000 after partial stocktake

Inventory Variance [loss] 100 Inventory Variance [loss] 110 Inventory 100 Inventory 100 Reduce Inventory from 9000 to 8900 after partial stocktake GST Receivable 10

Reduce Inventory a/c from 9000 to 8900 after partial stocktake

Inventory Variance [loss] 900 Inventory Variance [loss] 990 Inventory 900 Inventory 900

Reduce Inventory from 28 700 to 27 800 after annual stocktake GST Receivable 90 Reduce inventory from 28 700 to 27 800 after annual stocktake

Cost of Goods Sold 1 500 Cost of Goods Sold 1 650 Inventory Variance 1 500 Inventory Variance 1 650 Close Inventory Variance to CoGS [500+100+900] Close Inventory Variance to CoGS [550+110+990}

Question 9.25 Part a: As if GST did not legally apply Part b: GST as it does legally apply Inventory Variance [loss] 600 Inventory Variance [loss] 660 Inventory 600 Inventory 600

Reduce Inventory from 40 900 to 40 300 after rotation stocktake GST Receivable 60 Reduce inventory from 40 900 to 40 300 after rotation stocktake

Inventory 300 Inventory 300 Inventory Variance

[gain] 300 GST Receivable 30

Increase Inventory from 53 700 to 54 000 after rotation stocktake Inventory Variance [gain] 330 Increase inventory from 53 700 to 54 000 after rotation stocktake

Inventory Variance [loss] 400 Inventory Variance [loss] 440 Inventory 400 Inventory 400

Reduce Inventory from 45 500 to 45 100 after rotation stocktake GST Receivable 40 Reduce inventory from 45 500 to 45 100 after rotation stocktake

Inventory Variance [loss] 1 200 Inventory Variance [loss] 1 320 Inventory 1 200 Inventory 1 200 Reduce Inventory from 180 200 to 179 000 after ann. stocktake GST Receivable 120 Reduce inventory from 180 200 to 179 000 after ann. stocktake

Cost of Goods Sold 1 900 Cost of Goods Sold 2 090 Inventory Variance 1 900 Inventory Variance 2 090 Close Inventory Variance to CoGS [600 – 300 +400 + 1200] Close Inventory Variance to CoGS [660 – 330 + 440 + 1320]



388

Question 9.26

Extract General Journal of . . . GJ . . Inventory Variance 1 089 Inventory 990 GST Receivable 99 Inventory loss adjusted to mid-year stocktake

Inventory Variance 2 651 Inventory 2 410 GST Receivable 241 Inventory loss adjusted to year end stocktake

Cost of Goods Sold 3 740 Inventory Variance 3 740 Inventory variance loss closed out to cost of goods sold

Trading 221 340 Cost of Goods Sold 221 340 Cost of goods sold closed out [217 600 + 3740]

Sales 463 480 Trading 463 480 Sales closed out to trading

Trading 242 140 Profit and Loss 242 140 Gross profit [463 480 – 221 340] transferred to profit and loss

Question 9.27 a. The business commences with $5000 cash and $7500 inventory.

Periodic inventory Perpetual inventory Cash 5 000 Cash 5 000 Inventory 7 500 Inventory 7 500 Capital 12 500 Capital 12 500

b. Purchase of inventory on credit for $1430 ($1300 + $130 GST). Purchases 1 300 Inventory 1 300 GST Receivable 130 GST Receivable 130 Accounts Payable Ctrl 1 430 Accounts Payable Ctrl 1 430

c. Cash sale $825 ($750 + $75 GST); the cost was $375. Bank 825 Bank 825 Sales 750 Sales 750 GST Payable 75 GST Payable 75 Cost of Goods Sold 375 Inventory 375



389

Question 9.27 continued d. During the year a stocktake was carried out where perpetual inventory system was in use and

the physical count totalled $6790 while the inventory records were $6950; 10% GST needs to be added to the difference.

Periodic inventory Perpetual inventory Inventory Variance [loss] 176 Inventory 160 GST Receivable 16 e. At the end of the accounting year a physical inventory stocktake was carried out and its value was $9852 and the inventory records showed a cost of $10 212; 10% GST needs to be added to the difference. Inventory Variance [loss] 396 Inventory 360 GST Receivable 36 f. & g. At the end of the previous year, the inventory stocktake totalled $7605. At the end of the current year, purchases totalled $22 432 for one inventory system and cost of goods sold $19 613 for the other; inventory variance from d. and e. still need to be closed out. Trading 30 037 Cost of Goods Sold [176+396] 572 Inventory [opening] 7 605 Inventory Variance 572

Purchases 22 432 Trading 20 185 Inventory [closing] 9 852 Cost of Goods Sold 20 185 Trading 9 852 [19 613 + 572] h. Close all appropriate accounts where sales were $40 000 for both systems. Sales 40 000 Sales 40 000 Trading 40 000 Trading 40 000

Trading 19 815 Trading 19 815 Profit & Loss 19 815 Profit & Loss [gross profit] 19 815 [40 000 – (30 037 – 9852)] [40 000 – 20 185]

Question 9.28

General Journal of Joan Patricia GJ 1 30 Jun 16 Provision for annual leave 5 650

Provision for sick leave 2 240 Bank 7 890 Leave payments for the year ended 30 June 2016. Annual Leave Expense [8 064 – (7 382 – 5 650)] 6 332

Sick Leave Expense [4 775 – (3 395 – 2 240)] 3 620 Provision for Long Service Leave [4 465 – (2 565 – 0)] 1 896 Provision for Annual Leave 6 332 Provision for Sick Leave 3 620 Long Service Leave Expense 1 896 Adjustment to leave provisions as at end of year Profit and Loss 11 848 Long Service Leave Expense 6 332 Annual Leave Expense 3 620 Sick Leave Expense 1 896 Extract of expense closed to profit and loss



390

Question 9.28 continued Extract General Ledger of Joan Patricia

Provision for Annual Leave Annual Leave Expense Bank 5 650 Balance 7 382 Prv An Leav 6 332 Profit & Loss 6 332 Balance c/d 8 064 An Leave Exp 6 332 13 714 13 714 Balance b/d 8064

Provision for Sick Leave Sick Leave Expense Bank 2 240 Balance 3 395 Prv Sick Leav 3 620 Profit & Loss 3 620 Balance c/d 4 775 Sick Leav Exp 3 620 7 015 7 015

Balance b/d 4 775 Provision for Long Service Leave Long Service Leave Expense

Balance 2 569 Profit & Loss 1 896 Prov LSL 1 896 Balance c/d 4 465 LSL Exp 1 896 4 465 4 465 Balance b/d 4 465

Extract Income Statement of Joan Patricia

for the year ended 30 June 2016 less Expenses General and Administrative Annual Leave Expense 6 332 Sick Leave Expense 3 620 Long Service Leave Expense 1 896 11 848

Extract Balance Sheet of Joan Patricia as at 30 June 2016

Current Liabilities Provision for Annual Leave 8 064 Provision for Sick Leave 4 775 12 839 Non-current Liabilities Provision for Long Service Leave 4 465

Question 9.29 General Journal of Steven Keith GJ 1

30 Jun 16 Provision for Annual Leave 39 850 Provision for Sick Leave 8 470 Provision for Long Service Leave 5 730 Bank 54 050 Leave payments for the year ended 30 June 2016. Provision for Annual Leave [60 824 – (83 228 – 39 850)] 17 446

Sick Leave Expense [52528 – (50 667 – 8 470)] 10 331 Long Service Leave Expense [42 338 – (29 608 – 5730)] 18 460 Annual Leave Expense 17 446 Provision for Sick Leave 10 331 Provision for Long Service Leave 18 460 Adjustment to leave provisions as at end of year

continued



391

Question 9.29 continued General Journal of Steven Keith continued GJ 2

Profit and Loss 46 237 Annual Leave Expense 17 446 Sick Leave Expense 10 331 Long Service Leave Expense 18 460 Extract of expense closed to profit and loss

Extract General Ledger of Steven Keith

Provision for Annual Leave Annual Leave Expense Bank 39 850 Balance 83 228 Profit & Loss 17 446 Prov An Lev 17 446

Balance c/d 60 824 Ann Lev Exp 17 446 100 674 100 674

Balance b/d 60 824 Provision for Sick Leave Sick Leave Expense

Bank 8 470 Balance 50 667 Prv Sck Leav 10 331 Profit & Loss 10 331

Balance c/d 52 528 Sick Lev Exp 10 331 60 998 60 998

Balance b/d 52 528 Provision for Long Service Leave Long Service Leave Expense

Bank 5 730 Balance 29 608 Pr LSL 8 460 Profit & Loss 8 460

Balance c/d 42 338 LSL Exp 18 460 48 068 48 068 Balance b/d 42 338

Extract Income Statement of Steven Keith for the year ended 30 June 2016

less Expenses General and Administrative Annual Leave Expense 17 446 Sick Leave Expense 10 331 Long Service Leave Expense 18 460 46 237

Extract Balance Sheet of Steven Keith as at 30 June 2016

Current Liabilities Provision for Annual Leave 60 824 Provision for Sick Leave 52 528 113 352 Non-current Liabilities

Provision for Long Service Leave 42 338



392

Question 9.30 Extract Adjusted Trial Balance

as at 30 June 2016

Balance Day Adjustments Trial Balance Adjustments Trial Bal Post Adj and relevant accounts Debit Credit Debit Credit Debit Credit

i. Expense incurred not paid $1 160

Wages 68 000 1 160 69 160 Expense Accrued 1 160 1 160

ii. Annual insurance paid 1.3.2016 $3 960 ($3 600 + $360 GST)

Insurance 5 600 2 400 3 200 Expense Prepaid 2 400 2 400

iii. 15% $20 000 investment, 6 monthly interest due 1.8.2016

Interest Received 1 750 1 250 3 000 Revenue Accrued 1 250 1 250

iv. Rent received for 13 months

Rent Received 22 750 1 750 21 000 Revenue Received in Advance 1 750 1 750

v. Further bad debt write offs $2 585 ($2 350 + $235 GST)

Accounts Receivable 57 838 2 585 55 253 Bad Debts 2 350 2 350 GST Payable 3 000 235 2 765

vi. Doubtful debt allowance 3.6% of e above

Allowance for Doubtful Debts 1 500 489 1 989 Doubtful Debts 489 489

vii. Motor vehicle $35 000 depreciated at 15% from 1 May 2015

Motor Vehicle 35 000 35 000 Accumulated Depreciation – Motor Vehicle 875 5 250 6 125 Depreciation – Motor Vehicle 5 250 5 250

viii. Perpetual inventory count $36 795

Inventory 37 995 1 200 36 795 Inventory Variance Loss 1 320 1 320 GST Receivable 2 000 120 1 880

ix. Calculated leave liability: annual $86 816, sick $45 306, long service $57 510

Provision for Annual Leave 73 451 13 365 86 816 Provision for Sick Leave 45 894 588 45 306 Provision for Long Service Leave 51 812 5 698 57 510 Annual Leave Expense 10 349 13 365 23 714 Sick Leave Expense 17 753 588 17 165 Long Service Leave Expense 2 916 5 698 8 614



393

Question 9.31

Extract General Journal of . . . GJ . . 28 Feb 16 Insurance Prepaid 5 400

GST Receivable 540

Bank 5 940

Payment of annual insurance allocated as a prepayment

31 Mar 16 Insurance 450 Insurance Prepaid 450 Insurance prepaid now expensed as it is consumed


Insurance Prepaid 103 28 Feb 16 Bank [payment] GJ. 5 400 31 Mar 16 Insurance GJ. 450

30 Apr 16 Insurance GJ. 450

31 May 16 Insurance GJ. 450

30 Jun 16 Insurance GJ. 450

Balance c/d 3 600

5 400 5 400


Insurance 540

1 Feb 16 Balance b/d 3 400 30 Jun 16 Profit and Loss GJ. 5 200

31 Mar 16 Insurance Prepaid GJ. 450

30 Apr 16 Insurance Prepaid GJ. 450

31 May 16 Insurance Prepaid GJ. 450

30 Jun 16 Insurance Prepaid GJ. 450

5 200 5 200

Extract Income Statement of . . . for the year ended 30 June 2016

less Expenses General and Administrative Insurance 5 200

Extract Balance Sheet of . . . as at 30 June 2016

Current Assets Insurance Prepaid 3 600

Question 9.32

Extract General Journal of . . GJ . . 1 Feb 16 Rates Prepaid 4 800

Bank 4 800

Annual council rates paid and allocated as a prepayment

28 Feb 16 Rates 400 Rates Prepaid 400 Rates prepaid now expensed as it is consumed



394


Extract General Ledger of . . . Rates Prepaid 103

1 Feb 16 Bank [payment] GJ. 4 800 28 Feb 16 Rates GJ. 400

31 Mar 16 Rates GJ. 400

30 Apr 16 Rates GJ. 400

31 May 16 Rates GJ. 400

30 Jun 16 Rates GJ. 400

Balance c/d 2 800

4 800 4 800


Rates 540 1 Feb 16 Balance b/d 2 520 30 Jun 16 Profit and Loss GJ. 4 520

28 Feb 16 Rates Prepaid GJ. 400

31 Mar 16 Rates Prepaid GJ. 400

30 Apr 16 Rates Prepaid GJ. 400

31 May 16 Rates Prepaid GJ. 400

30 Jun 16 Rates Prepaid GJ. 400 4 520 4 520


less Expenses General and Administrative Rates 4 520


Current Assets Rates Prepaid 2 800

Question 9.33

Extract General Journal of . . . GJ . . 30 Nov 15 Maintenance Prepaid 4 620

GST Receivable 462 Bank 5 082 Annual extinguisher and sprinkler maintenance paid 31 Dec 15 Maintenance 385 Maintenance Prepaid 385 Maintenance prepaid now expensed as it is consumed



395


Extract General Ledger of . . . Maintenance Prepaid 103

30 Nov 15 Bank [payment] GJ. 4 620 31 Dec 15 Maintenance GJ. 385 31 Jan 16 Maintenance GJ. 385 28 Feb 16 Maintenance GJ. 385 31 Mar 16 Maintenance GJ. 385 30 Apr 16 Maintenance GJ. 385 31 May 16 Maintenance GJ. 385 30 Jun 16 Maintenance GJ. 385 Balance c/d 1 925 4 620 4 620

1 Jul 16 Balance b/d 1 925 Maintenance 540

1 Dec 15 Balance b/d 1 700 30 Jun 16 Profit and Loss GJ. 4 395 31 Dec 15 Maintenance Prepaid GJ. 385 31 Jan 16 Maintenance Prepaid GJ. 385 28 Feb 16 Maintenance Prepaid GJ. 385 31 Mar 16 Maintenance Prepaid GJ. 385 30 Apr 16 Maintenance Prepaid GJ. 385 31 May 16 Maintenance Prepaid GJ. 385 30 Jun 16 Maintenance Prepaid GJ. 385

4 395 4 395


less Expenses General and Administrative Maintenance 4 395


Current Assets Maintenance Prepaid 1 925

Question 9.34

Extract General Journal of . . . GJ . . 31 Mar 16 Bank [receipt] 59 400

Maintenance/Service Rev Rec in Adv 54 000

GST Payable 5 400

Receipt of mntce rev allocated as rev rec’d in advance

30 Apr 16 Maintenance/Service Rev Rec’d in Advance 4 500 Maintenance/Service Revenue 4 500 Maintenance/service revenue now earned



396


Extract General Ledger of . . . Maintenance/Service Revenue Received in Advance 202

30 Apr 16 Maintenance/Serv Rev GJ. 4 500 31 Mar 16 Bank [receipt] GJ. 54 000

31 May 16 Maintenance/Serv Rev GJ. 4 500

30 Jun 16 Maintenance/Serv Rev GJ. 4 500

Balance c/d 40 500

54 000 54 000


Maintenance/Service Revenue 400 30 Jun 16 Trading GJ. 48 000 1 Apr 16 Balance b/d 34 500

30 Apr 16 Mntce/Ser Rev Rec Adv GJ. 4 500

31 May 16 Mntce/Ser Rev Rec Adv GJ. 4 500 30 Jun 16 Mntce/Ser Rev Rec Adv GJ. 4 500 48 000 48 000


Revenue Maintenance/Service Revenue 48 000


Current Liabilities Maintenance/Service Rev Rec’d Adv 40 500

Question 9.35

Extract General Journal of F Kwel GJ . . 31 Jan 16 Bank [receipt] 80 916

Fire Systems Rev Rec’d in Advance 73 560

GST Payable 7 356

Receipt of fire syst rev allocated as rev rec’d in advance

28 Feb 16 Fire Systems Revenue Received in Advance 6 130 Fire Systems Revenue 6 130 Fire systems revenue now earned



397


Extract General Ledger of F Kwel Fire Systems Revenue Received in Advance 202

28 Feb 16 Fire Systems Revenue GJ. 6 130 31 Jan 16 Bank [receipt] GJ. 73 560

31 Mar 16 Fire Systems Revenue GJ. 6 130

30 Apr 16 Fire Systems Revenue GJ. 6 130

31 May 16 Fire Systems Revenue GJ. 6 130

30 Jun 16 Fire Systems Revenue GJ. 6 130

Balance c/d 42 910

73 560 73 560


Fire Systems Revenue 400 30 Jun 16 Trading GJ. 67 120 1 Feb 16 Balance b/d 36 470

28 Feb 16 Fire Syst Rev Rec Adv GJ. 6 130

31 Mar 16 Fire Syst Rev Rec Adv GJ. 6 130 30 Apr 16 Fire Syst Rev Rec Adv GJ. 6 130 31 May 16 Fire Syst Rev Rec Adv GJ. 6 130 30 Jun 16 Fire Syst Rev Rec Adv GJ. 6 130 67 120 67 120

Extract Income Statement of F Kwel for the year ended 30 June 2016

Revenue Fire Systems Revenue 67 120

Extract Balance Sheet of F Kwel

as at 30 June 2016

Current Liabilities Fire Systems Revenue Rec’d in Adv 42 910

Question 9.36

Extract General Journal of . . . GJ . . 31 Jul 15 Depreciation – Machinery 907

Accumulated Depreciation – Machinery 907 Depreciation of machinery for the current month


for the month ended 31 July 2015

less Expenses General and Administrative Depreciation – Machinery 907



398


Extract Balance Sheet of . . . as at 31 July 2015

Non-current Assets Machinery 90 720 less Accumulated Depreciation 28 117 62 603 [27 210+907]


as at 30 June 2016

Non-current Assets Machinery 90 720 less Accumulated Depreciation 38 094 52 626 [27 210+10 884]

Question 9.37

Extract General Journal of . . . GJ . . 31 Mar 16 Insurance Prepaid 6 720

GST Receivable 672

Bank [payment] 7 392

Payment of annual insurance allocated as a prepayment

Bank [receipt] 77 352

Equipment Maint’ce Rev Rec’d in Adv 70 320

GST Payable 7 032

Receipt of equip mntce allocated as rev rec’d in advance

Equipment 17 140



Cash purchase of oscilloscope equipment

30 Apr 16 Insurance 560 Insurance Prepaid 560 Insurance prepaid now expensed as it is consumed Equipment Maintenance Rev Rec’d in Advance 5 860 Equipment Maintenance Revenue 5 860 Revenue received in advance now earned Depreciation – Equipment 214 Accumulated Depreciation – Equipment 214 Monthly depreciation on new equipment



399

Question 9.38

Extract General Ledger of R Bogan Expense Prepaid

31 Dec 15 Salaries [balance day adjustment] 1 500 1 Jan 16 Salaries [reversal] 1 500

Expense Accrued 1 Feb 16 Salaries [reversal] 2 256 31 Jan 16 Salaries [balance day adjustment] 2 256

1 Mar 16 Salaries [reversal] 1 995 28 Feb 16 Salaries [balance day adjustment] 1 995

1 Apr 16 Salaries [reversal] 1 082 31 Mar 16 Salaries [balance day adjustment] 1 082

1 Jun 16 Salaries [reversal] 553 31 May10 Salaries [balance day adjustment] 553

30 Jun 16 Salaries [balance day adjustment] 2 480

Salaries 1 Jan 16 Balance b/d 75 000 1 Feb 16 Expense Accrued [reversal] 2 256

Expense Prepaid [reversal] 1 500 28 Feb 16 Balance c/d 103 075

31 Jan 16 Bank [payment] 11 275

Exp Accrued [bda 4 days *564] 2 256

90 031

28 Feb 16 Bank [payment] 13 305


105 331 105 331

1 Mar 16 Balance b/d 103 075 1 Mar 16 Expense Accrued [reversal] 1 995

31 Mar 16 Bank [payment] 10 824 31 Mar 16 Balance c/d 112 986

Exp Accrued [bda 2 days *541] 1 082 114 981 114 981

1 Apr 16 Balance b/d 112 986 1 Apr 16 Expense Accrued [reversal] 1 082

30 Apr 16 Bank [payment] 13 530 30 Apr 16 Balance c/d 125 434

126 516 126 516

1 May 16 Balance b/d 125 434 1 Jun 16 Expense Accrued [reversal] 553

31 May16 Bank [payment] 11 050 30 Jun 16 Profit and Loss 151 364

Exp Accrued [bda 1 day * 553] 553

137 037

30 Jun 16 Bank [payment] 12 400


151 917 151 917

Question 9.39

Extract General Ledger of R Little Expense Prepaid

31 Dec 14 Insurance [balance day adjustm’t] 500 1 Jan 15 Insurance [reversal] 500




31 Dec 18 Insurance [balance day adjustm’t] 840 continued



400


Extract General Ledger of R Little continued Insurance

1 Jan 15 Expense Prepaid [reversal] 500 31 Dec 15 Expense Prepaid [bda] 650


4 400 4 400



5 150 5 150



5 490 5 490


29 Feb 18 Bank [payment] 5 040 Profit and Loss 4 990 5 830 5 830

Question 9.40

Extract General Ledger of D Cotter 18% State Government Bonds

30 Apr 15 Bank [payment on 2 April] 25 000 Revenue Accrued



30 Jun 17 Interest Received [bda] 1 125

Interest Received 30 Jun 15 Profit and Loss 1 125 30 Jun 15 Revenue Accrued [bda] 1 125

1 125 1 125

1 Jul 15 Revenue Accrued [reversal] 1 125 31 Oct 15 Bank [receipt on 1 October] 2 250

30 Jun 16 Profit and Loss 4 500 30 Apr 16 Bank [receipt on 1 April] 2 250

30 Jun 16 Revenue Accrued [bda] 1 125

5 625 5 625

1 Jul 16 Revenue Accrued [reversal] 1 125 31 Oct 16 Bank [receipt on 1 October] 2 250

30 Jun 17 Profit and Loss 4 500 30 Apr 17 Bank [receipt on 1 April] 2 250

30 Jun 17 Revenue Accrued [bda] 1 125 5 625 5 625



401

Question 9.41

Extract General Ledger of R Lachlan Revenue Received in Advance

1 Jul 15 Rent Received [reversal] 490 30 Jun 15 Rent Received [bal day adj] 490

1 Jul 16 Rent Received [reversal] 520 30 Jun 16 Rent Received [bal day adj] 520 30 Jun 17 Rent Received [bal day adj] 650

Rent Received

30 Jun 16 Revenue Recd Adv’ce [bda] 520 1 Jul 15 Revenue Rec’d Adv’ce [rev] 490

Profit and Loss 6 030 30 Jun 15 Bank [receipt 2015 & 2016] 6 060

6 550 6 550

30 Jun 17 Revenue Recd Adv’ce [bda] 650 1 Jul 16 Revenue Rec’d Adv’ce [rev] 520

Profit and Loss 7 280 30 Jun 16 Bank [receipt 2016 & 2017] 7 410 7 930 7 930

Question 9.42

General Journal of . . . GJ . . Profit is an:

30 Jun 16 Expense Prepaid 852 increase Advertising 852 Adjustment for advertising prepaid Salaries 3 500 decrease Expense Accrued 3 500 Accrual of salaries Expense Prepaid 1 750 increase Insurance 1 750 Insurance prepaid Service Fee Revenue 3 500 decrease Income Received in Advance 3 500 Revenue received June relates to July Revenue Accrued 900 increase Rent Received 900 Rental revenue owed

Question 9.43

a, b & reversals: General Journal of . . . GJ . . 30 Jun 16 Depreciation – Equipment 8 250

Accumulated Deprec’n – Equipment 8 250

Depreciation on equipment for the year

Expense Prepaid 910

Insurance 910

Adjustment for insurance prepaid

Wages 700

Expense Accrued 700 Adjustment for wages earned but not yet paid

continued



402


a, b & reversals: continued General Journal of . . . GJ . .



Insurance 4 190

Wages 36 500

Closing accounts at the end of the year

1 Jul 16 Insurance 910 Expense Prepaid 910 Reversal of prepayment Expense Accrued 700 Wages 700 Reversal of expense accrued

c Extract General Ledger of . . .

Expense Prepaid 30 Jun 16 Insurance [bal day adjustment] 910 1 Jul 16 Insurance [reversal] 910

Equipment

30 Jun 16 Balance 55 000

Accumulated Depreciation – Equipment 30 Jun 16 Balance 21 000 Depreciation – Equipment 8 250 29 250

Expense Accrued 1 Jul 16 Wages [reversal] 700 30 Jun 16 Wages [balance day adjustment] 700

Depreciation – Equipment 30 Jun 16 Accum Depr – Equipment 8 250 30 Jun 16 Profit and Loss 8 250

Insurance

30 Jun 16 Balance 5 100 30 Jun 16 Expense Prepaid [bda] 910


5 100 5 100


Wages 30 Jun 16 Balance 35 800 30 Jun 16 Profit and Loss 36 500

Expense Accrued [bda] 700 36 500 36 500 1 Jul 16 Expense Accrued [reversal] 700

Profit and Loss 30 Jun 16 Depreciation – Equipment 8 250

Insurance 4 190 Wages 36 500 48 940



403


d Extract Income Statement of . . . for the year ended 30 June 2016


Depreciation – Equipment 8 250 Insurance 4 190 Wages 36 500 48 940


as at 30 June 2016

Current Assets Expense Prepaid 910 Non-current Assets

Equipment 55 000 less Accumulated Depreciation 29 250 25 750



30 Jun 15 Depreciation – Machinery 2 700

Accumulated Depreciation – Machinery 2 700

Depreciation on machinery for 6 months

Expense Prepaid 1 350

Insurance 1 350

Adjustment for 9 months’ prepaid insurance


Depreciation – Machinery 2 700

Insurance [1 200 + 1 800 – 1 350] 1 650

Balances transferred

1 Jul 15 Insurance 1 350


Reversal



Depreciation on machinery for 12 months


Insurance 1 575

Adjustment for 9 months’ prepaid insurance



Insurance [1350 + 2100 – 1575] 1 875

Balances transferred

1 Jul 16 Insurance 1 575 Expense Prepaid 1 575 Reversal



404

Question 9.45

Extract Adjusted Trial Balance as at 30 June 2016

Trial Balance Adjustments Trial Bal Post Adj Debit Credit Debit Credit Debit Credit

a. Stationery expense incurred not paid $1485 ($1350 + $135 GST)

Stationery 6 760 1 350 8 110 Expense Accrued 1 350 1 350

b. Annual insurance paid 1.4.2016 $4620 ($4200 + $420 GST)

Insurance 8 000 3 150 4 850 Expense Prepaid 3 150 3 150

c. 9.5% $20 000 investment, 6 monthly interest due 31.10.2016

Interest Received 1 583 317 1 900 Revenue Accrued 317 317

d. Rent received for 13 months

Rent Received 25 441 1 957 23 484 Revenue Received in Advance 1 957 1 957

e. Further bad debt write offs $880 ($800 + $80 GST)

Accounts Receivable 65 241 880 64 361 Bad Debts 2 310 800 3 110 GST Payable 2 000 80 1 920

f. Doubtful debt allowance 5% of e. above

Allowance for Doubtful Debts 2 500 718 3 218 Doubtful Debts 718 718

g. Computer $16 500 ($15 000 + $1500 GST) depreciated over 3 years from 1 April 2015 Computer 15 000 15 000 Accumulated Depreciation – Computer 1 250 5 000 6 250 Depreciation – Computer 5 000 5 000

h. Perpetual inventory cou9nt $83 040

Inventory 84 170 1 130 83 040 Inventory Variance (loss) 1 243 1 243 GST Receivable 1 500 113 1 387

i. Calculated leave liability: annual $91 263, sick $50 031, long service $29 561

Provision for Annual Leave 87 531 3 732 91 263 Provision for Sick Leave 44 320 5 711 50 031 Provision for Long Service Leave 25 578 3 983 29 561 Annual Leave Expense 9 746 3 732 13 478 Sick Leave Expense 7 825 5 711 13 536 Long Service Leave Expense 2 977 3 983 6 960



405

Question 9.46

General Journal of . . . GJ . . 30 Jun 16 Revenue Accrued 600

a Interest Received 600 Accrue 3 months interest on 12% government bonds Salaries 950 Expense Accrued 950 Accrual of salaries Expense Prepaid 700 Insurance 700 Adjustment for 7 months prepayment Depreciation – Plant 7 350 Accumulated Depreciation – Plant 7 350 12 months depreciation on plant

b Interest Received 2 400 Profit and Loss 2 400 Revenue account closed out Profit and Loss 32 680 Depreciation – Plant 7 350 Salaries 24 480 Insurance 850 Expense accounts closed out

c Extract General Ledger of . . .


Expense Prepaid

30 Jun 16 Insurance [bda] 700 1 Jul 16 Insurance [reversal] 700

12% Government Bonds 30 Jun 16 Balance b/d 20 000

Plant 30 Jun 16 Balance b/d 49 000

Accumulated Depreciation – Plant 30 Jun 16 Balance b/d 17 300 Depreciation – Plant [bda] 7 350 24 650

Expense Accrued 1 Jul 16 Salaries [reversal] 950 30 Jun 16 Salaries [bda] 950

Interest Received

30 Jun 16 Profit and Loss 2 400 30 Jun 16 Balance b/d 1 800

Revenue Accrued [bda] 600

2 400 2 400

1 Jul 16 Revenue Accrued [reversal] 600 continued



406


c continued Extract General Ledger of . . . Depreciation – Plant

30 Jun 16 Accum Deprec – Plant [bda] 7 350 30 Jun 16 Profit and Loss 7 350

Salaries 30 Jun 16 Balance b/d 23 530 30 Jun 16 Profit and Loss 24 480

Expense Accrued [bda] 950 24 480 24 480 1 Jul 16 Expense Accrued [reversal] 950

Insurance 30 Jun 16 Balance b/d 1 550 30 Jun 16 Expense Prepaid [bda] 700

Profit and Loss 850

1 550 1 550


Profit and Loss 30 Jun 16 Depreciation – Plant 7 350 30 Jun 16 Interest Received 2 400

Salaries 24 480 Insurance 850 32 680 net balance 30 280

d Extract Income Statement of . . .


add Other Revenue Interest Received 2 400 less Expenses General and Administrative

Depreciation – Plant 7 350 Salaries 24 480 Insurance 850 32 680

d Extract Balance Sheet of . . .

as at 30 June 2016

Current Assets Revenue Accrued 600 Expense Prepaid 700 1 300 Non-current Assets

Government Bonds 20 000 Plant 49 000 less Accumulated Depreciation 24 650 24 350 44 350

Total Assets 45 650 Current Liabilities Expense Accrued 950

Net balance 44 700



407

Question 9.46 continued e General Journal of . . . GJ . .

1 Jul 16 Interest Received 600 Revenue Accrued 600 Reversal of revenue accrued Expense Accrued 950 Salaries 950 Reversal of accrual of salaries Insurance 700 Expense Prepaid 700 Reversal of expense prepaid


Extract General Ledger of . . . Rent Received

31.12.16 Revenue Rec’d in Advance 550 31.12.16 Balance b/d 7 150 Profit and Loss 6 600 7 150 7 150 1.1.17 Revenue Rec’d in Adv [rev] 550

Revenue Received in Advance 1.1.17 Rent Received [reversal] 550 31.12.16 Rent Received 550

Interest Received 31.12.16 Profit and Loss 3 900 31.12.16 Balance b/d 3 100

Revenue Accrued 800 3 900 3 900

1.1.17 Revenue Accrued [reversal] 800 Revenue Accrued

31.12.16 Interest Received 800 1.1.17 Interest Received [reversal] 800

Insurance 31.12.16 Balance b/d 2 580 31.12.16 Expense Prepaid 610

Profit and Loss 1 970 2 580 2 580

1.1.17 Expense Prepaid [reversal] 610 Expense Prepaid

31.12.16 Insurance 610 1.1.17 Insurance [reversal] 610

Equipment 31.12.16 Balance b/d 17 000

Accumulated Depreciation – Equipment 31.12.16 Balance b/d 3 000 Depreciation – Equipment 2 890 5 890

Depreciation – Equipment 31.12.16 Accum Deprec’n – Equipment 2 890 31.12.16 Profit and Loss 2 890



408

Question 9.47 continued General Journal of . . . GJ . .

31 Dec 16 Rent Received 550

Revenue Received in Advance 550


Revenue Accrued 800

Interest Received 800

Adjustment for interest revenue not yet received

Expense Prepaid 610

Insurance 610

Adjustment for Insurance paid in advance

Depreciation – Equipment [17 000 * 0.17] 2 890

Accumulated Depreciation – Equipment 2 890

Adjustment for depreciation of equipment

Rent Received [7150 – 550] 6 600

Interest Received [3100 + 800] 3 900


Revenue accounts closed out to profit and loss


Insurance [2 580 – 610] 1 970


Expense accounts closed out to profit and loss

1 Jan 17 Revenue Received in Advance 550 Rent Received 550 Reversal Interest Received 800 Revenue Accrued 800 Reversal Insurance 610 Expense Prepaid 610 Reversal



add Other Revenue Rent Received 6 600 Interest Received 3 900 10 500


Insurance 1 970 Depreciation – Equipment 2 890 4 860

Net balance 5 640



409

Question 9.47 finalised Extract Balance Sheet of . . .


Current Assets Revenue Accrued 800 Expense Prepaid 610 1 410

Non-current Assets Equipment 17 000 less Accumulated Depreciation 5 890 11 110 12 520

Current Liabilities Revenue Received in Advance 550

Net balance 11 970

Question 9.48

Not required by the question, but very helpful in obtaining the correct answer! Extract General Ledger of . . .

Machinery 30 Jun 16 Balance b/d 50 700

Accumulated Depreciation – Machinery 30 Jun 16 Balance b/d 12 800 Depreciation – Machinery 10 140 22 940

Depreciation – Machinery 30 Jun 16 Accum Depr’n – Machinery 10 140 30 Jun 16 Profit and Loss 10 140

Rates 30 Jun 16 Balance b/d 8 000 30 Jun 16 Expense Prepaid [bda] 5 025

Profit and Loss 2 975 8 000 8 000

1 Jul 16 Expense Prepaid [reversal] 5 025 Expense Prepaid

30 Jun 16 Rates [bda] 5 025 1 Jul 16 Rates [reversal] 5 025 12% Government Bonds

30 Jun 16 Balance b/d 25 000 Interest Received

30 Jun 16 Profit and Loss 4 100 30 Jun 16 Balance b/d 2 850 Revenue Accrued [bda] 1 250 4 100 4 100

1 Jul 16 Revenue Accrued [reversal] 1 250 Revenue Accrued

30 Jun 16 Interest Received [bda] 1 250 1 Jul 16 Interest Received [reversal] 1 250 Salaries and Wages

30 Jun 16 Balance b/d 58 300 30 Jun 16 Profit and Loss 59 500 Expense Accrued [bda] 1 200 59 500 59 500 1 Jul 16 Expense Accrued [reversal] 1 200

Expense Accrued 1 Jul 16 Salaries and Wages

1 200 30 Jun 16 Salaries and Wages [bda] 1 200

continued



410

Question 9.48 continued Extract General Ledger of . . . continued

Rent Received 30 Jun 16 Revenue Rec’d in Adv [bda] 1 250 30 Jun 16 Balance b/d 16 250

Profit and Loss 15 000 16 250 16 250 1 Jul 16 Revenue Rec’d in Adv [rev] 1 250

Revenue Received in Advance 1 Jul 16 Rent Received [reversal] 1 250 30 Jun 16 Rent Received [bda] 1 250


30 Jun 16 Depreciation – Machinery [50 700 * 0.2] 10 140 Accumulated Depreciation – Machinery 10 140 Depreciation on machinery for the year Expense Prepaid 5 025 Rates 5 025 Adjustment for prepayment of rates Revenue Accrued 1 250 Interest Received 1 250 Adjustment for interest earned but not yet received Salaries and Wages 1 200 Expense Accrued 1 200 Adjustment for salaries and wages accrued

30 Jun 16 Rent Received 1 250

Revenue Received in Advance 1 250

Adjustment for rent received in advance

Interest Received [2850 + 1250] 4 100

Rent Received [16 250 – 1250] 15 000


Revenue accounts closed out to profit and loss



Rates [8000 – 5025] 2 975

Salaries and Wages [58 300 + 1200] 59 500

Expense accounts closed out to profit and loss

1 Jul 16 Rates 5 025

Expense Prepaid 5 025 Reversal Interest Received 1 250 Revenue Accrued 1 250 Reversal Expense Accrued 1 200 Salaries and Wages 1 200 Reversal Revenue Received in Advance 1 250 Rent Received 1 250 Reversal



411

Question 9.48 continued Extract Income Statement of . . .


add Other Revenue Interest Received 4 100 Rent Received 15 000 19 100


Depreciation – Machinery 10 140 Rates 2 975 Salaries and Wages 59 500 72 615

Net balance (53 515)


Current Assets


Revenue Accrued 1 250 6 275

Non-Current Assets

Machinery 50 700

less Accumulated Depreciation 22 940 27 760

12% Government Bonds 25 000 52 760

Total Assets 59 035

Current Liabilities


Revenue Received in Advance 1 250 2 450

Net balance 56 585

Question 9.49

General Journal of D Peggy GJ 1 30 Jun 15 Depreciation – Office Furniture 720

Accumulated Depreciation – Office Furniture 720 Depreciation on office furniture for 12 months Depreciation – Machinery 3 600 Accumulated Depreciation – Machinery 3 600 Depreciation on machinery for 6 months Profit and Loss 4 320 Depreciation – Office Furniture 720 Depreciation – Machinery 3 600 Balances transferred



412

Question 9.49 continued Extract Income Statement of D Peggy



Depreciation – Office Furniture 720 Depreciation – Machinery 3 600 4 320

Extract Balance Sheet of D Peggy

as at 30 June 2015

Non-current Assets Office Furniture 7 200 less Accumulated Depreciation 720 6 480 Machinery 48 000 less Accumulated Depreciation 3 600 44 400 50 880

General Journal of D Peggy GJ 2

30 Jun 16 Depreciation – Office Furniture 720 Accumulated Depreciation – Office Furniture 720 Depreciation on office furniture for 12 months Depreciation – Machinery 7 200 Accumulated Depreciation – Machinery 7 200 Depreciation on machinery for 12 months Depreciation – Motor Vehicle 5 500 Accumulated Depreciation – Motor Vehicle 5 500 Depreciation on motor vehicle for 6 months Profit and Loss 13 420 Depreciation – Office Furniture 720 Depreciation – Machinery 7 200 Depreciation – Motor Vehicle 5 500 Balances closed to profit and loss

Extract Income Statement of D Peggy



Depreciation – Office Furniture 720 Depreciation – Machinery 7 200 Depreciation – Motor Vehicle 5 500 13 420

Extract Balance Sheet of D Peggy as at 30 June 2016

Non-current Assets Office Furniture 7 200 less Accumulated Depreciation 1 440 5 760 Machinery 48 000 less Accumulated Depreciation 10 800 37 200 Motor Vehicle 39 000 less Accumulated Depreciation 5 500 33 500 76 460



413

Question 9.50 Extract General Ledger of . . .

a. Transfer to Profit and Loss account $2600 for Rates. Rates

1 Jul 15 Expense Prepaid [reversal] 400 30 Jun 16 Expense Prepaid [bda] 1 200

30 Jun 16 Bank [payment 2015 & 2016] 3 400 Profit and Loss 2 600 3 800 3 800 Expense Prepaid

30 Jun 15 Rates [bda] 400 1 Jul 15 Rates [reversal] 400

30 Jun 16 Rates [bda] 1 200

b. Transfer to Profit and Loss account $43 950 for Salaries. Salaries

30 Jun 16 Bank [payment 2015 & 2016] 43 800 1 Jul 15 Expense Accrued [reversal] 850 Expense Accrued [bda] 1 000 30 Jun 16 Profit and Loss 43 950 44 800 44 800 Expense Accrued

1 Jul 15 Salaries [reversal] 850 30 Jun 15 Salaries [bda] 850 30 Jun 16 Salaries [bda] 1 000

c. Transfer to Profit and Loss account $4720 for Interest on Government Bonds. Interest on Government Bonds

1 Jul 15 Revenue Accrued [reversal] 280 30 Jun 16 Bank [receipt 2015 & 2016] 4 500

30 Jun 16 Profit and Loss 4 720 Revenue Accrued [bda] 500 5 000 5 000 Revenue Accrued

30 Jun 15 Int Government Bonds [bda] 280 1 Jul 15 Inter’t Government Bonds [rev] 280

30 Jun 16 Int Government Bonds [bda] 500

d. Transfer to Profit and Loss account $11 700 for Rent Received. Rent Received

30 Jun 16 Revenue Rec’d in Adv [bda] 1 150 1 Jul 15 Revenue Rec’d in Adv [bda] 850 Profit and Loss 11 700 30 Jun 16 Bank [receipt 2015 + 2016] 12 000 12 850 12 850 Revenue Received in Advance

1 Jul 15 Rent Received [reversal] 850 30 Jun 15 Rent Received [bda] 850 30 Jun 16 Rent Received [bda] 1 150

Question 9.51 a Extract Income Statement of D Wyangala

for the period ending 30 June 2016


Bad Debts [640 + 260] 900 Doubtful Debts [250 + (1700 – 1421)] 529 1 429



414


b Extract Balance Sheet of D Wyangala as at 30 June 2016

Current Assets Accounts Receivable [68 288 – 286] 68 002 less Allowance for Doubtful Debts 1 700 66 302

Current Liabilities GST Payable [2 500 – 26] 2 474

[net balance 63 828]

Question 9.52

Extract Cash Receipts Journal of D Burrinjuck CR 1 Bank Acc’nts

Receiv

30 Jun 17 R Krui – Accounts Receivable 1 540 1 540

General Journal of D Burrinjuck GJ 1 30 Jun 17 Accounts Receivable Control 1 540

– R Krui 1 540 Bad Debts Recovered 1 400 GST Payable 140 Adjustment for bad debt recovered @ 40¢ in $ Bad Debts Recovered 1 400 Profit and Loss 1 400 Balance transferred

Extract General Ledger of D Burrinjuck Bank

30 Jun 17 Receipts 1 540

Accounts Receivable Control 30 Jun 17 Bad Debts Recovered 1 400 30 Jun 17 Bank [receipt] 1 540

GST Payable 140

1 540 1 540

GST Payable 30 Jun 17 Accounts Receivable Control 140

Bad Debts Recovered 30 Jun 17 Profit and Loss 1 400 30 Jun 17 Accounts Receivable Control 1 400

Extract Accounts Receivable Ledger of D Burrinjuck R Krui

30 Jun 17 Bank [receipt] CR. 1 540 1 540 Cr

30 Jun 17 Bad Debts Recovered GJ. 1 400 140 Cr GST Payable GJ. 140 0



415

Question 9.53

Extract General Ledger of . . . a. Amount paid during the year for wages totalled $61 457.

Wages 30 Jun 16 Bank [payment] 61 457 1 Jul 15 Expense Accrued [reversal] 2 543

Expense Accrued 1 086 30 Jun 16 Profit and Loss 60 000

62 543 62 543

b. Amount paid during the year for Insurance totalled $3546.

Insurance 1 Jul 15 Expense Prepaid [reversal] 715 30 Jun 16 Expense Prepaid 519

30 Jun 16 Bank [payment 2015 & 2016] 3 546 Profit and Loss 3 742

4 261 4 261

c. Amount received during the year for Interest Received totalled $1689.

Interest Received 1 Jul 15 Revenue Accrued [reversal] 110 30 Jun 16 Bank [receipt 2015 & 2016] 1 689

30 Jun 16 Profit and Loss 1 748 Revenue Accrued 169

1 858 1 858

d. Amount paid during the year for Electricity totalled $8428. Electricity

30 Jun 16 Bank [payment 2015 & 2016] 8 428 1 Jul 15 Expense Accrued [reversal] 1 545

Expense Accrued 1 686 30 Jun 16 Profit and Loss 8 569

10 114 10 114

e. Amount paid during the year for Mortgage Interest totalled $3600.

Mortgage Interest 30 Jun 16 Bank [payment 2015 & 2016] 3 600 1 Jul 15 Expense Accrued [reversal] 285

Expense Accrued 285 30 Jun 16 Profit and Loss 3 600

3 885 3 885

f. Amount paid during the year for Rent totalled $10 150.

Rent 1 Jul 15 Expense Prepaid [reversal] 650 30 Jun 16 Expense Prepaid 800

30 Jun 16 Bank [payment 2015 & 2016] 10 150 Profit and Loss 10 000

10 800 10 800

g. Amount received during the year for Rent Received totalled $3100.

Rent Received 30 Jun 16 Revenue Rec’d in Adv [bda] 300 1 Jul 15 Revenue Rec’d in Adv [rev] 200

Profit and Loss 3 000 30 Jun 16 Bank [receipt 2015 & 2016] 3 100 3 300 3 300



416

Question 9.54

General Journal of R Wallaroi GJ 1 30 Jun 16 Advertising 300

Electricity 1 750 Stationery 90 Expense Accrued 2 140 Accrual for tax invoices not yet processed Expense Prepaid 3 190 Rent 3 190 July rent paid in June Rent Received 820 Revenue Received in Advance 820 July rent received in June Wages 587 Expense Accrued 587 Wages incurred but not paid

1 Jul 16 Expense Accrued 2 727 Advertising 300 Electricity 1 750 Stationery 90 Wages 587 Reversals Rent 3 190 Expense Prepaid 3 190 Reversal Revenue Received in Advance 820 Rent Received 820 Reversal

Question 9.55

General Journal of D Bendora GJ 1 a Insurance 700

1 Jul 15 Expense Prepaid 700 Reversal Interest Received 200 Revenue Accrued 200 Reversal Expense Accrued 410 Wages 410 Reversal Revenue Received in Advance 650 Rent Received 650 Reversal

continued



417

Question 9.55

General Journal of D Bendora continued GJ 2 b Insurance 2 370

30 Jun 16 Wages 35 683 Bank [payments 2015 & 2016] 38 053 Payments for year ended 30 June 2016 Bank [receipts 2015 & 2016] 12 100 Interest Received 3 400 Rent Received 8 700 Receipts for year ended 30 June 2016

c Expense Prepaid 810 Insurance 810

Adjustment for insurance prepaid Revenue Accrued 850 Interest Received 850 Adjustment for interest due but not yet received Wages 625 Expense Accrued 625 Wages incurred but not yet paid Rent Received 790 Revenue Received in Advance 790 Adjustment for rent received in advance Interest Received 4 050 Rent Received 8 560 Profit and Loss 12 610 Balances transferred Profit and Loss 38 158 Insurance 2 260 Wages 35 898 Balances transferred

e Insurance 810 1 Jul 16 Expense Prepaid 810 Reversal Interest Received 850 Revenue Accrued 850 Reversal Expense Accrued 675 Wages 675 Reversal

Revenue Received in Advance 790 Rent Received 790 Reversal

continued



418


General Journal of D Bendora continued GJ 3 f Insurance 2 910

30 Jun 17 Wages 41 982 Bank [payments 2016 & 2017] 44 892 Payments for year ended 30 June 2017 Bank [receipts 2016 & 2017] 13 150 Interest Received 3 400 Rent Received 9 750 Receipts for year ended 30 June 2017

g Expense Prepaid 970 30 Jun 17 Insurance 970

Adjustment for insurance prepaid Revenue Accrued 850 Interest Received 850 Adjustment for interest due but not yet received Wages 235 Expense Accrued 235 Wages incurred but not yet paid Rent Received 875 Revenue Received in Advance 875 Adjustment for rent received in advance Interest Received 3 400 Rent Received 9 665 Profit and Loss 13 065 Balances transferred Profit and Loss 44 342 Insurance 2 750 Wages 41 592 Balances transferred

Extract General Ledger of D Bendora d & h Expense Prepaid



30 Jun 17 Insurance [bda] 970


30 Jun 16 Interest Received [bda] 850 1 Jul 16 Interest Received [reversal] 850

30 Jun 17 Interest Received [bda] 850

Expense Accrued 1 Jul 15 Wages [reversal] 410 30 Jun 15 Wages [bda] 410

1 Jul 16 Wages [reversal] 625 30 Jun 16 Wages [bda] 625

30 Jun 17 Wages [bda] 235 continued



419

Question 9.55 continued Extract General Ledger of D Bendora continued

Revenue Received in Advance 1 Jul 15 Rent Received [reversal] 650 30 Jun 15 Rent Received [bda] 650

1 Jul 16 Rent Received [reversal] 790 30 Jun 16 Rent Received [bda] 790 30 Jun 17 Rent Received [bda] 875

Insurance 1 Jul 15 Expense Prepaid [reversal] 700 30 Jun 16 Expense Prepaid [bda] 810

Bank [payment 2015 & 2016] 2 370 Profit and Loss 2 260

3 070 3 070

1 Jul 16 Expense Prepaid [reversal] 810 30 Jun 17 Expense Prepaid [bda] 970

Bank [payment 2016 & 2017] 2 910 Profit and Loss 2 750

3 720 3 720

Interest Received 1 Jul 15 Revenue Accrued [reversal] 200 30 Jun 16 Bank [receipt 2015 & 2016] 3 400

30 Jun 16 Profit and Loss 4 050 Revenue Accrued [bda] 850

4 250 4 250

1 Jul 16 Revenue Accrued [reversal] 850 Bank [receipt 2016 & 2017] 3 400

30 Jun 17 Profit and Loss 3 400 30 Jun17 Revenue Accrued [bda] 850

4 250 4 250

Wages 30 Jun 16 Bank [payment 2015 & 2016] 35 683 1 Jul 15 Expense Accrued [reversal] 410

Expense Accrued [bda] 625 30 Jun 16 Profit and Loss 35 898 36 308 36 308

30 Jun 17 Bank [payment 2016 & 2017] 41 982 1 Jul 16 Expense Accrued [reversal] 625 Expense Accrued [bda] 235 30 Jun17 Profit and Loss 41 592

42 217 42 217

Rent Received 30 Jun 16 Revenue Rec’d Adv [bda] 790 1 Jul 15 Revenue Rec’d Adv’ce [rev] 650

Profit and Loss 8 560 Bank [receipt 2015 & 2016] 8 700

9 350 9 350

30 Jun16 Revenue Rec’d Adv [bda] 875 1 Jul 16 Revenue Rec’d Adv’ce [rev] 790 Profit and Loss 9 665 Bank [receipt 2016 & 2017] 9 750 10 540 10 540

Question 9.56 Extract General Journal of . . . GJ . .

30 Nov 15 Insurance Prepaid 7 560 GST Receivable 756 Bank 8 316 Payment of annual insurance allocated as a prepayment

31 Dec 15 Insurance 630 Insurance Prepaid 630 Insurance prepaid now expensed as it is consumed



420

Question 9.56 continued Extract General Ledger of . . .

Insurance Prepaid 103 30 Nov 15 Bank [payment] GJ. 7 560 31 Dec 15 Insurance GJ. 630

31 Jan 16 Insurance GJ. 630

28 Feb 16 Insurance GJ. 630

31 Mar 16 Insurance GJ. 630

30 Apr 16 Insurance GJ. 630

31 May 16 Insurance GJ. 630

30 Jun 16 Insurance GJ. 630

Balance c/d 3 150

7 560 7 560

1 Jul 16 Balance b/d 3 150 Insurance 540

1 Dec 15 Balance b/d 2 850 30 Jun 16 Profit and Loss GJ. 7 260

31 Dec 15 Insurance Prepaid GJ. 630

31 Jan 16 Insurance Prepaid GJ. 630

28 Feb 16 Insurance Prepaid GJ. 630

31 Mar 16 Insurance Prepaid GJ. 630

30 Apr 16 Insurance Prepaid GJ. 630

31 May 16 Insurance Prepaid GJ. 630

30 Jun 16 Insurance Prepaid GJ. 630 7 260 7 260


less Expenses General and Administrative Insurance 7 260


Current Assets Insurance Prepaid 3 150

Question 9.57

Extract General Journal of . . . GJ . . 31 Jan 16 Bank [receipt] 73 788

Magazine Subscription Revenue Rec in Adv 67 080 GST Payable 6 708 Receipt of mag subs allocated as rev rec’d in advance

28 Feb 16 Magazine Subscription Revenue Received in Advance 5 590 Magazine Subscription Revenue 5 590 Magazine subscription revenue now earned



421


Extract General Ledger of . . . Magazine Subscription Revenue Received in Advance 202

28 Feb 16 Magazine Subsc Rev GJ. 5 590 31 Jan 16 Bank [receipt] GJ. 67 080

31 Mar 16 Magazine Subsc Rev GJ. 5 590

30 Apr 16 Magazine Subsc Rev GJ. 5 590

31 May 16 Magazine Subsc Rev GJ. 5 590

30 Jun 16 Magazine Subsc Rev GJ. 5 590

Balance c/d 39 130

67 080 67 080


Magazine Subscription Revenue 400 30 Jun 16 Trading GJ. 64 104 1 Feb 16 Balance b/d 36 154

28 Feb 16 Mag Subs Rev Rec Adv GJ. 5 590 31 Mar 16 Mag Subs Rev Rec Adv GJ. 5 590 30 Apr 16 Mag Subs Rev Rec Adv GJ. 5 590 31 May 16 Mag Subs Rev Rec Adv GJ. 5 590 30 Jun 16 Mag Subs Rev Rec Adv GJ. 5 590 64 104 64 104


Revenue Magazine Subscriptions 64 104


Current Liabilities Magazine Subs Rec’d in Advance 39 130

Question 9.58

General Journal of . . . GJ . . 31 Mar 16 Depreciation – Plant and Equipment 1 116

Accumulated Deprec – Plant and Equipment 1 116 Standing journal for plant and equipment depreciation



422

Chapter 10 Preparing final reports from a worksheet Question 10.1

A/c or Stmt Group Trial Balance of C Tobins

as at 30 June 2016 BS CA Bank 2 100 2 100 BS CA Accounts Receivable Control 649 649 T CoGS Inventory [1-7-2015] 400 400

BS CA GST Receivable 230 230 BS NCA Machinery 2 500 2 500 BS NCA Accumulated Depreciation – Machinery 760 760 BS CL Accounts Payable Control 198 198 BS CL GST Payable 450 450 BS OE Capital 3 081 3 081 BS OE Drawings 150 150 T R Sales 4 800 4 800

PL OR Discount Received 200 200 PL OR Interest Received 350 350 T CoGS Purchases 1 000 1 000

PL SD Advertising 100 100 PL GA Telephone 880 880 PL GA Salaries 1 500 1 500 PL FB Discount Allowed 330 330

9 839 9 839



423 Question 10.2

A/c or Stmt Group Trial Balance of C Pappinbarra

as at 31 March 2016 BS OE Capital ?? 65 600 BS NCA Office Furniture and Equipment 7 000 7 000 T CoGS Purchases 6 350 6 350

PL GA Wages 4 710 4 710 BS NCL Loan from Natural Bank 45 000 45 000 BS NCA Land 40 000 40 000 BS NCA Accumulated Depreciation – Off Furn & Equip 3 970 3 970 BS CA Bank 37 100 37 100 BS CA Accounts Receivable Control 2 904 2 904 T CoGS Inventory [1 April 2015] 2 000 2 000

BS CA GST Receivable 1 091 1 091 BS NCA Motor Vehicles 18 000 18 000 BS CL Accounts Payable Control 1 595 1 595 BS CL GST Payable 1 500 1 500 T R Sales 15 400 15 400

BS NCA Share Investment 12 000 12 000 BS NCA Accumulated Depreciation – Motor Vehicle 1 200 1 200 PL SD Freight Outward 620 620 PL GA Insurance 480 480 PL GA Telephone 440 440 T CoGS Freight Inward 430 430

PL FB Bank Charges 390 390 BS OE Drawings 300 300 PL FB Bad Debts 250 250 PL GA Stationery 150 150 PL FB Discount Allowed 50 50

134 265 134 265



424 Question 10.3

A/c or Stmt Group Waugh Hope & Co Trial Balance

as at 30 April 2016 BS NCA Accumulated Depreciation – Equipment 9 650 PL OR Bad Debts Recovered 762 BS OE Capital 56 000 PL FB Discount Allowed 525 BS CL Accounts Payable Control 4 598 BS NCA Equipment 45 890 BS CA Bank 3 949 PL GA Wages 37 600 PL FB Bad Debts 234 PL GA Insurance 1 683 BS CA GST Receivable 550 BS NCL Loan from Natural Australia Bank 14 000 BS NCA Accumulated Depreciation – Motor Vehicle 13 250 T R Sales 119 219

PL OR Rent Received 8 740 BS OE Drawings 7 906 T CoGS Purchases 54 889

BS NCA Motor Vehicle 25 910 BS NCA Computer 2 100 T CoGS Inventory [1-5-2015] 19 115

BS CA Accounts Receivable Control 17 281 BS CA Allowance for Doubtful Debts 1 720 BS CL GST Payable 1 200 BS NCA Government Bonds 10 000 PL SD Advertising 815 PL FB Doubtful Debts 442 BS CA Petty Cash 250

229 139 229 139

Question 10.4 Debit Credit Balance Day

Adjustment narrative Ledger Account Adjusted

Ac or Stmt

Group Ac or Stmt

Group Debit Credit

1 BS CA T CoGS Inventory [closing] Inventory Trading 2 PL GA BS CL Wages accrued Wages Expense Accrued 3 PL OR BS CL Rent rec’d in advance Rent Received Rev Rec’d in Advance 4 BS CA PL GA Insurance prepaid Expense Prepaid Insurance 5 PL GA BS NCA Depreciation buildings Deprec – Buildings Accum Dep – Building 6 PL GA BS NCA Deprec motor vehicle Deprec – Motor Veh Accum Dep-Motor Veh 7 PL FB BS CA Incr allow doubt debt Doubtful Debts Allow for Doubt Debt 8 BS CA PL OR Interest revenue acc’d Revenue Accrued Interest Received 9 PL FB BS CL Interest expen accru’d Interest on Mortgage Expense Accrued



425 Question 10.5

Debit Credit Balance Day Adjustment narrative

Ledger Account Adjusted A/c

Stmt Group A/c

Stmt Group Debit Credit

1 T CoGS BS CA Inventory account is Cost of Goods Sold Inventory BS CA overstated, include GST GST Receivable 2 PL GA BS CL Salaries accrued Salaries Expense Accrued 3 BS CA PL GA Insurance prepaid Expense Prepaid Insurance 4 PL GA BS NCA Depreciation machinery Deprec’n – Machinery Accum Deprec – Mach 5 PL FB BS CA Bad debt write off, Bad Debts Acc’nt Receivable Ctrl BS CL including GST GST Payable 6 PL FB BS CA Incr allow doubtful debt Doubtful Debts Allow for Doubt Debt 7 PL FB BS CL Interest expense accr’d Interest Expense Accrued 8 PL GA BS CL Accrue for electricity Electricity Expense Accrued 9 PL GA BS CL Accrue for telephone Telephone Expense Accrued

Question 10.6 Debit Credit Balance Day

Adjustment narrative Ledger Account Adjusted

A/c Stmt

Group A/c Stmt

Group Debit Credit

1 BS CA T CoGS Inventory [closing] Inventory Trading 2 PL FB BS CL Interest expen accru’d Interest on Mortgage Expense Accrued 3 BS CA PL GA Insurance prepaid Expense Prepaid Insurance 4 PL SD BS CL Sales salary accrued Sales Salaries Expense Accrued 5 PL GA BS CL Office salary accrued Office Salaries Expense Accrued 6 PL GA BS NCA Deprec’n – motor vehi Deprec – Motor Vehic Accum Dep – Motor Veh 7 PL FB BS CA Bad debt write off Bad Debts Acc’nt Receivable Ctrl BS CL including GST GST Payable 8 PL FB BS CA Start allow doubt debts Doubtful Debts Allow for Doubt Debt

Question 10.7 A/c Stmt & Group

Trial Balance of Myrtle Scrub as at 30 June 2016

BS CA Bank 9 088 BS CA Accounts Receivable Control (2 145) 16 896

T CoGS Inventory [1-7-2015] 1 762 BS CA GST Receivable 350

BS NCA Land and Buildings 47 334 BS NCA Office Equipment 6 366 BS NCA Accum’d Depreciation – Office Equipment 1 321 +631 BS CL Accounts Payable Control 2 904 BS CL GST Payable 937 (195) BS OE Capital 53 151

T R Sales 37 501 PL OR Rent Received 8 141 (785)

T CoGS Purchases 12 694 PL GA Wages +878 7 982 PL GA Other Office Expenses 1 357 PL FB Bad Debts +1 950 126

103 955 103 955



426

Question 10.7 continued A/c or Stmt & Group Balance day adjustment A/cs not in trial balance

Debit Credit Debit Credit BS CA T CoGS Inventory [30-6-2010] $1 857 Inventory Trading PL GA Depreciation office equipment $631 Depr – Off Equ

Bad debt write off $2145 ($1950 + $195 GST) BS CL Rent received in advance $785 Rev Rec Adv BS CL Wages accrued $878 Exp Accrued

Question 10.8 A/c Stmt & Group

Trial Balance of Don Dingalong as at 31 December 2016

BS CA Bank 8 090 BS CA Accounts Receivable Control (2 013) 16 467 BS CA Allowance for Doubtful Debts 92 +342 BS CA Inventory (60) 5 841 BS CA GST Receivable (6) 986

BS NCA Land 50 200 BS NCA Equipment 80 740 BS NCA Accumulated Depreciation – Equipment 40 513 +12 111 BS NCA 10% Government Bonds 6 000 BS CL Accounts Payable Control 3 652 BS CL GST Payable 2 260 (183) BS OE Capital 94 130

T R Sales 90 217 PL OR Interest Received 400 +200

T CoGS Cost of Goods Sold +66 35 094 PL SD Sales Salaries +350 7 120 PL GA Insurance (313) 993 PL GA Office Salaries +1 450 17 577 PL GA Other Office Expenses 2 103 PL FB Bad Debts +1 830 53

231 264 231 264

A/c Stmt & Group Balance Day Adjustment Accounts not in Trial Balance

Debit Credit Debit Credit Inventory overstated $60; $66

($60 + $6 GST)

Additional write-off for bad debt $2013 ($1830 + $183 GST)

PL FB Adjust allowance for doubtful debts to 3% of Accounts Receivable (to nearest $)

Doubtful Debts

BS CA Accrue 4 months’ interest on bonds Rev Accrued BS CA Insurance prepaid by $313 Exp Prepaid

BS CL Sales salaries accrued $350 Exp Accrued BS CL Office salaries accrued $1450 Exp Accrued

PL GA Depreciation on equipment 15% pa Depr – Equip



427

Question 10.9

6-column Worksheet of Myrtle Scrub for the year ended 30 June 2016


Bank 9 088 9 088 A/c Receivable Control 16 896 2 145 14 751 Inventory [1-7-2015] 1 762 1 762 GST Receivable 350 350 Land and Buildings 47 334 47 334 Office Equipment 6 366 6 366 Acc Depr’n – Office Equipm’t 1 321 631 1 952 Account Payable Control 2 904 2 904 GST Payable 937 195 742 Capital 53 151 53 151 Sales 37 501 37 501 Rent Received 8 141 785 7 356 Purchases 12 694 12 694 Wages 7 982 878 8 860 Other Office Expenses 1 357 1 357 Bad Debts 126 1 950 2 076 103 955 103 955

Inventory [30-6-2016] 1 857 1 857 Trading 1 857 1 857 Depreciation – Office Equipment 631 631 Revenue Received in Advance [rent received] 785 785 Expense Accrued [wages] 878 878 6 296 6 296 107 126 107 126



428 Question 10.10

6-column Worksheet of Don Dingalong for the year ended 31 December 2016


Bank 8 090 8 090 Accounts Receivable Ctrl 16 467 2 013 14 454 Allowance Doubtful Debts 92 342 434 Inventory 5 841 60 5 781 GST Receivable 986 6 980 Land 50 200 50 200 Equipment 80 740 80 740 Accum Deprec – Equipm’t 40513 12 111 52 624 10% Government Bonds 6 000 6 000 Account Payable Control 3652 3 652 GST Payable 2260 183 2 077 Capital 94130 94 130 Sales 90217 90 217 Interest Received 400 200 600 Cost of Goods Sold 35 094 66 35 160 Sales Salaries 7 120 350 7 470 Insurance 993 313 680 Office Salaries 17 577 1 450 19 027 Other Office Expense 2 103 2 103 Bad Debts 53 1 830 1 883 231 264 231264

Inventory overstated $60; $66 ($60 + $6 GST) Doubtful Debts 342 342 Revenue Accrued [interest received] 200 200 Expense Prepaid [insurance] 313 313 Expense Accrued [sales salaries] 350 350 Expense Accrued [office salaries] 1 450 1 450 Depreciation – Equipment 12 111 12 111 16 845 16 845 245 534 245 534



429

Question 10.11

6-column Worksheet of R Bland for the year ended 30 June 2016


Bank 27 280 27 280 A/c Receivable Ctrl 16 214 165 16 049 Allow Doubtful Debts 160 190 350 Inventory [1 July 2015] 24 034 24 034 GST Receivable 1 600 1 600 Office Equipment 38 714 38 714 Ac Deprec – Off Equip 15 873 5 807 21 680 A/cs Payable Control 5 478 5 478

GST Payable 3 000 15 2 985

Capital 46 266 46 266 Sales 129 731 129 731 Purchases 56 574 358 56 932 Advertising 4 923 850 4 073 Salaries 28 195 695 28 890 Insurance 2 454 2 454 Bad Debts 520 150 670 200 508 200 508

Inventory [30 June 2016] 17 159 17 159 Trading 17 159 17 159 Doubtful Debts 190 190 Depreciation – Office Equipment 5 807 5 807 Expense Prepaid [advertising] 850 850 Expense Accrued [salaries] 695

1 053 Expense Accrued [purchases] 358

25 224 25 224 224 702 224 702



430

Question 10.12

6-column Worksheet of D Tantangara for the six months ended 31 March 2016


A/cs Receivable Ctrl 57 849 341 57 508 Allowance Doubtful Debt 830 320 1 150 Inventory 15 810 180 15 630 GST Receivable 3 458 18 3 440 Land 58 000 58 000 Buildings 33 600 33 600 Accum Depr – Building 3 880 420 4 300 Motor Vehicles 30 280 30 280 Accu Dep – Motor Veh 13 626 2 271 15 897 Bank Overdraft 25 234 25 234 Accounts Payable Ctrl 36 663 36 663 GST Payable 6 200 31 6 169 Capital 35 131 35 131 Sales 248 195 248 195 Rent Received 4 605 820 3 785 Cost of Goods Sold 137 417 198 137 615 Stationery 2 271 156 2 427 Wages 29 219 341 29 560 Insurance 3 665 2 748 917 Bad Debts 2 371 310 2 681 Interest on Overdraft 424 1 605 2 029 374 364 374 364

Depreciation – Building 420 420 Depreciation – Motor Vehicle 2 271 2 271 Revenue Received in Advance [rent received] 820 820 Expense Accrued [wages]

Expense Accrued [stationery]

Expense Accrued [interest on overdraft]

341 156

1 605

2 102

Expense Prepaid [insurance] 2 748 2 748 Doubtful Debts 320 320 9 220 9 220 379 446 379 446



431

Question 10.13

10-column Worksheet of Clarence Way for the year ended 30 June 2016

Account Trial Balance Adjustments Trading Profit & Loss Balance Sheet

Bank 23 188 23 188

A/c Receivable Ctrl 13 783 495 13 288

Allow Doubt’l Debts 350 500 850

Inventory [1.7.2015] 20 430 20 430


Office Equipment 33 907 33 907

Acc Dep – Off Equ 13 490 5 086 18 576

Acc Payable Ctrl 4 653 4 653

GST Payable 2 500 45 2 455

Capital 42 517 42 517

Sales 110 275 110 275

Purchases 48 080 380 48 460

Advertising 4 285 750 3 535

Salaries 25 575 895 26 470

Insurance 2 185 2 185

Bad Debts 952 450 1 402

173 785 173 785

Inventory [30.6.2016] 14 685 14 685

Trading 14 685 14 685

Doubtful Debts 500 500

Depreciation – Office Equipment 5 086 5 086

Expense Prepaid [advertising] 750 750

Expense Accrued [salaries] Expense Accrued [purchases]

865 380

1 275

22 791 22 791 68 890 124 960 39 178 87 218 70 326

Gross Profit 56 070 56 070

Net Profit 16 892 16 892

124 960 124 960 56 070 56 070 87 218 87 218



432

Question 10.14

10-column Worksheet of Ann Gourie for the year ended 31 March 2016


A/cs Receivable Ctrl 37 598 242 37 356

Allow Doubtful Debts 1 340 530 1 870

Inventory 12 450 290 12 160

GST Receivable 2 265 29 2 236

Land 67 000 67 000

Building 45 200 45 200

Accum Dep -Building 2 520 1 130 3 650

Motor Vehicles 20 700 20 700

Acc Depr -Mot Veh 9 857 3 105 12 962

Bank Overdraft 16 400 16 400

Account Payable Ctrl 23 830 23 830

GST Payable 4 030 22 4 008

Capital 38 318 38 318

Sales 211 327 211 327

Rent Received 3 993 750 3 243

Cost of Goods Sold 91 172 319 91 491

Stationery 1 476 265 1 741

Wages 28 992 480 29 472

Insurance 2 832 1 610 1 222

Bad Debts 1 550 220 1 770

Interest on Overdraft 380 1 050 1 430

311 615 311 615

Depreciation – Building 1 130 1 130

Depreciation – Motor Vehicles 3 105 3 105

Revenue Received Advance [rent rec’d] 750 750

Expense Accrued [wages] 480

Expense Accrued [stationery] 265 1 795

Expense Accrued [interest on overdraft] 1 050

Expense Prepaid [insurance] 1 610 1 610


9 481 9 481 91 491 211 327 40 400 3 243 186 262 103 583

Gross Profit 119 836 119 836

Net Profit 82 679 82 679

211 327 211 327 123 079 123 079 186 262 186 262



433

Question 10.15

10-column Worksheet of R Murrumbidgee for the year ended 30 June 2016


Bank 9 388 9 388

Petty Cash 100 100

A/c Receivable Ctr 24 948 451 24 497

Inventory [1.7.2015] 16 700 16 700


Premises 95 000 95 000

Machinery 30 750 30 750

Accum Dep -Mach 16 280 6 150 22 430

12% Debentures 15 000 15 000

Acc’nt Payable Ctrl 8 888 8 888

GST Payable 4 160 41 4 119

17% Mort’ge Prem 30 000 30 000

Capital 117 482 117 482

Drawings 1 750 1 750

Sales 166 386 166 386

Interest Received 2 025 675 2 700

Purchases 88 890 88 890

Advertising 7 500 3 750 3 750

Salaries 48 700 1 300 50 000

Bad Debts 685 410 1 095

Interest on Mort 3 400 1 700 5 100

345 221 345 221

Inventory 15 600 15 600

Trading 15 600 15 600


Allowance for Doubtful Debts 490 490

Depreciation – Machinery 6 150 6 150

Revenue Accrued [interest received] 675 675

Expense Accrued [salaries] 1 300 1 300

Expense Prepaid [advertising] 3 750 3 750

Expense Accrued [interest on mortgage] 1 700 1 700

30 116 30 116 105 590 181 986 66 585 2 700 198 920 186 409


Net Profit 12 511 12 511

181 986 181 986 79 096 79 096 198 920 198 920



434

Question 10.16a (periodic inventory applies)

10-column Worksheet of D Blowering for the year ended 30 June 2016


Petty Cash 250 250

A/c Receivable Ctr 30 272 374 29 898

Allow Doubt Debt 615 282 897

Inventory [1.7.2015] 7 456 7 456


Land & Buildings 75 000 75 000


Acc Dep -Mot Veh 8 300 2 100 10 400

Investmt in Shares 3 800 3 800



GST Payable 2 275 34 2 241

18% Mort’ge L & B 45 000 45 000

Capital 38 460 38 460


Sales 90 985 90 985


Purchases 38 714 38 714

Salaries 24 236 1 070 25 306

Insurance 7 210 4 480 2 730

Interest 2 510 875 2 700

6 085

Bad Debts 908 340 1 248


224 484 224 484

Inventory [30 June 2016] 9 284 9 284

Trading 9 284 9 284



Expense Accrued [salaries] 1 070

Expense Accrued [interest] 875 4 645

Expense Accrued [interest] 2 700



22 065 22 065 46 170 100 269 40 591 5 400 154 000 135 092


Net Profit 18 908 18 908

100 269 100 269 59 499 59 499 154 000 154 000



435

Question 10.16b (perpetual inventory applies)

10-column Worksheet of D Blowering for the year ended 30 June 2016


Petty Cash 250 250

A/c Receivable Ctrl 30 272 374 29 898

Allow Doubt Debts 615 282 897

Inventory 9 474 190 9 284


Land & Buildings 75 000 75 000


Acc Dep – Motor Veh 8 300 2 100 10 400

Investment in Shares 3 800 3 800



GST Payable 2 275 34 2 241

18% Mortgage L & B 45 000 45 000

Capital 38 460 38 460


Sales 90 985 90 985



Salaries 24 236 1 070 25 306

Insurance 7 210 4 480 2 730

Interest 2 510 875 2 700

6 085

Bad Debts 908 340 1 248


224 484 224 484




Expense Accrued [interest] 875 4 645




12 990 12 990 36 886 90 985 40 591 5 400 154 000 135 092


Net Profit 18 908 18 908

90 985 90 985 59 499 59 499 154 000 154 000



436

Question 10.17

10-column Worksheet of B Plowman for the year ended 30 June 2016



A/c Receivab Ctrl 4 389 385 4 004

Acc Depre -M Veh 18 439 6 963 25 402

Acc Depr – Off Equ 17 361 3 510 20 871

Advertising 957 100 1 057

Bad Debts 1 317 350 1 667

Bank 2 046 2 046

Capital 54 162 54 162


Dividend Received 386 386

Drawings 265 265

Freight Inwards 2 691 2 691

Freight Outwards 4 179 4 179


GST Payable 2 430 35 2 395

Invest Shrs Secur 12 000 12 000

Insurance 1 458 418 1 040

Inventory [1.7.2015] 2 780 2 780

Motor Vehicle 46 419 46 419

Motor Vehicle Exp 2 420 164 2 584

Office Equipment 35 101 35 101

Allow Doubt’l Debts 45 75 120

Purchases 39 664 39 664

Rent 9 260 720 8 540

Salaries 16 227 590 16 817

Sales 97 131 9 7131

Sales Travel’g Exp 1 734 1 734

Shares in BHP 7 997 7 997

Telephone 832 832

192 916 192 916

Inventory [30 June 2016] 1 872 1 872 Trading 1 872 1 872


Depreciation – Motor Vehicle 6 963 6 963

Depreciation – Office Equipment 3 510 3 510

Expense Accrued [advertising] 100 100

Expense Accrued [motor vehicle expense] 164 164


Expense Prepaid [insurance] 418 418

Expense Prepaid [rent] 720 720

14 797 14 797 45 135 99 003 48 998 477 112 022 106 675

Gross Profit 53 868 53 868 Net Profit 5 347 5 347

99 003 99 003 54 345 54 345 112 022 112 022



437


Income Statement of Jenny McLaughlin for the year ended 30 June 2016

Revenue Sales 77 337 less Cost of Goods Sold Inventory [1 July 2015] 6 337 Purchases 32 910 Cost of goods available for sale 39 247 less Inventory [30 June 2016] 7 982 31 265 Gross Profit 46 072 add Other Revenue Rent Received 4 600 Total Revenue 50 672 less Expenses General and Administrative Salaries 25 806 Insurance 2 330 Depreciation – Motor Vehicle 1 800 29 936 Financial and Borrowing Interest 5 085 Bad Debts 1 048 Discount Allowed 2 114 Doubtful Debts 250 8 497 38 433 Net Profit 12 239



438


Balance Sheet of Jenny McLaughlin as at 30 June 2016

Current Assets Petty Cash 250 Accounts Receivable Control 25 410 less Allowance for Doubtful Debts 1 000 24 410 Inventory 7 982 GST Receivable 1 048 Expense Prepaid 3 800 37 490 Non-current Assets Land and Buildings 68 000 Motor Vehicle 29 800 less Accumulated Depreciation 8 480 21 320 89 320 Total Assets 126 810 Current Liabilities Bank Overdraft 13 360 Accounts Payable Control 14 311 GST Payable 2 288 Expense Accrued 3 849 Revenue Received in Advance 567 34 375 Non-current Liabilities Mortgage Land & Buildings 38 000 less Total Liabilities 72 375 Net Assets 54 435

Owners’ Equity Capital 43 996 add Net Profit 12 239 56 235 less Drawings 1 800 Total Owners’ Equity 54 435


Extract Income Statement of Jenny McLaughlin for the year ended 30 June 2016




439


Income Statement of Maureen Payne for the year ended 30 June 2016

Revenue Sales 192 343 less Cost of Goods Sold Inventory [1 July 2015] 19 200 Purchases 98 890 Cost of goods available for sale 118 090 less Inventory [30 June 2016] 17 940 100 150 Gross Profit 92 193 add Other Revenue Interest Received 3 100 Total Revenue 95 293 less Expenses Selling and Distribution Advertising 4 315 General and Administrative Salaries 57 000 Depreciation – Machinery 7 073 64 073 Financial and Borrowing Bad Debts 1 260 Interest on Mortgage 5 865 Doubtful Debts 565 7 690 76 078 Net Profit 19 215



440


Balance Sheet of Maureen Payne as at 30 June 2016

Current Assets Bank 10 796 Petty Cash 100 Accounts Receivable Control 28 171 less Allowance for Doubtful Debts 565 27 606 Inventory 17 940 GST Receivable 2 410 Revenue Accrued 780 Expense Prepaid 3 950 63 582 Non-current Assets Premises 95 000 Machinery 36 750 less Accumulated Depreciation 25 795 10 955 Debentures 18 000 123 955 Total Assets 187 537 Current Liabilities Accounts Payable Control 10 219 GST Payable 4 119 Expense Accrued 3 400 17 738 Non-current Liabilities Mortgage Land & Buildings 35 000 less Total Liabilities 52 738 Net Assets 134 799




441


Extract Income Statement of Maureen Payne for the year ended 30 June 2016


Income Statement of Maureen Payne


Revenue Sales 192 343 less Cost of Goods Sold 100 150 Gross Profit 92 193 add Other Revenue Interest Received 3 100 Total Revenue 95 293 less Expenses Selling and Distribution Advertising 4 315 General and Administrative Salaries 57 000 Depreciation – Machinery 7 073 64 073 Financial and Borrowing Bad Debts 1 260 Interest on Mortgage 5 865 Doubtful Debts 565 7 690 76 078 Net Profit 19 215

Question 10.19b finalised (perpetual inventory applies) For this question, the Balance Sheet for 10.19b will be identical to that for 10.19a.



442


Income Statement of John Spalding for the year ended 30 June 2016

Revenue Sales 117 531 less Cost of Goods Sold Inventory [1 July 2015] 3 364 Purchases 47 993 Freight Inwards 3 256 Cost of goods available for sale 54 613 less Inventory [30 June 2016] 2 272 52 341 Gross Profit 65 190 add Other Revenue Discount Received 110 Dividend Received 487 597 Total Revenue 65 787 less Expenses Selling and Distribution Advertising 1 257 Freight Outwards 5 076 Sales Travelling Expense 2 100 8 433 General and Administrative Insurance 1 248 Motor Vehicle Expense 3 186 Rent 10 343 Salaries 20 843 Telephone 1 037 Depreciation – Motor Vehicles 8 465 Depreciation – Office Equipment 4 217 49 339 Financial and Borrowing Bad Debts 2 017 Doubtful Debts 200 2 217 59 989 Net Profit 5 798



443


Balance Sheet of John Spalding as at 30 June 2016

Current Assets Bank 2 446 Accounts Receivable Control 4 840 less Allowance for Doubtful Debts 450 4 390 Inventory 2 272 GST Receivable 1 487 Expense Prepaid 1 396 11 991 Non-current Assets Investment in Shares 14 500 Motor Vehicles 56 117 less Accumulated Depreciation 30 706 25 411 Office Equipment 42 403 less Accumulated Depreciation 25 274 17 128 Shares in Public Company 10 766 67 805 Total Assets 79 796 Current Liabilities Accounts Payable Control 3 476 GST Payable 2 898 Expense Accrued 1 075 7 449 Net Assets 72 347

Owners’ Equity Capital 66 914 add Net Profit 5 798 72 712 less Drawings 365 Total Owners’ Equity 72 347


Extract Income Statement of John Spalding for the year ended 30 June 2016




444


10-column Worksheet of G Gardiner for the year ended 31 December 2016


Stationery 569 157 726

Sales Salaries 18 080 1 638 19 718

Sales 197 366 197 366


Purchases 58 036 58 036

Office Salaries 27 772 3 300 31 072

Mach & Equipment 43 271 43 271

Land 35 000 35 000

Inventory [1.1.2010] 4 740 4 740

Interest 1 963 275+250 2 488

Insurance 4 740 1 230 3 510



Electricity 1 885 100 1 985


Donations 280 280

Customs Duty 3 187 3 187

Capital 18 738 18 738

Buildings 46 560 46 560


Bank Charges 209 209

Bad Debts Recov’d 1 680 1 680

Bad Debts 288 288


Accum Depr – Bldg 9 687 1 164 10 851

Acc Dep – M/c & Eq 12 750 6 491 19 241

A/c Receivab Ctrl 18 623 18 623


15% Mort Ld & Bld 10 000 10 000

274 659 274 659

continued …



445


10-column Worksheet of G Gardiner (continued) for the year ended 31 December 2016

Adjustments Trading Profit & Loss Balance Sheet

Inventory [31 December 2016] 5 713 5 713

Trading 5 713 5 713



Depreciation – Buildings 1 164 1 164

Depreciation – Machinery & Equipment 6 491 6 491

Expense Accrued [interest] 275


Expense Accrued [sales salaries] 1 638

Expense Accrued [office salaries] 3 300 5 720

Expense Accrued [stationery] 157

Expense Accrued [electricity] 100

Revenue Received Advance [rent recd] 823 823


21 700 21 700 65 963 203 079 72 243 8 885 156 100 82 342

Gross Profit 137 116 137 116

Net Profit 73 758 73 758

203 079 203 079 146 001 146 001 156 100 156 100



446


Income Statement of G Gardiner for the year ended 31 December 2016

Revenue Sales 197 366 less Cost of Goods Sold Inventory [1 January 2016] 4 740 Purchases 58 036 Customs Duty 3 187 Cost of goods available for sale 65 963 less Inventory [31 December 2016] 5 713 60 250 Gross Profit 137 116 add Other Revenue Rent Received 7 205 Bad Debts Recovered 1 680 8 885 Total Revenue 146 001 less Expenses Selling and Distribution Sales Salaries 19 718 Advertising 3 753 23 471 General and Administrative Stationery 726 Office Salaries 31 072 Insurance 3 510 Electricity 1 985 Donations 280 Depreciation – Buildings 1 164 Depreciation – Machin & Equip 6 491 45 228 Financial and Borrowing Interest 2 488 Bank Charges 209 Bad Debts 288 Doubtful Debts 559 3 544 72 243 Net Profit 73 758



447


Balance Sheet of G Gardiner as at 31 December 2016

Current Assets Accounts Receivable Control 18 623 less Allowance for Doubtful Debts 559 18 064 Inventory 5 713 GST Receivable 1 810 Expense Prepaid 1 230 26 817 Non-current Assets Machinery and Equipment 43 271 less Accumulated Depreciation 19 241 24 030 Land 35 000 Buildings 46 560 less Accumulated Depreciation 10 851 35 709 94 739 Total Assets 121 556 Current Liabilities Bank Overdraft 4 847 Accounts Payable Control 6 633 GST Credit Control 4 930 Expense Accrued 5 720 Revenue Received in Advance 823 22 953 Non-current Liabilities 15% Mortgage on Land & Buildg 10 000 less Total Liabilities 32 953 Net Assets 88 603




448


10-column Worksheet of G Gardiner for the year ended 31 December 2016


Stationery 569 157 726

Sales Salaries 18 080 1 638 19 718

Sales 197 366 197 366


Cost of Goods Sold 60 085 165 60250

Office Salaries 27 772 3 300 31 072

Mach & Equipment 43 271 43 271

Land 35 000 35 000

Inventory 5 863 150 5 713

Interest 1 963 275+250 2 488

Insurance 4 740 1 230 3 510





Donations 280 280

Capital 18 738 18 738

Buildings 46 560 46 560


Bank Charges 209 209


Bad Debts 288 288


Accum Depr – Bldg 9 687 1 164 10 851

Acc Dep – M/c & Eq 12 750 6 491 19 241

A/c Receivab Ctrl 18 623 18 623


15% Mort Ld & Bld 10 000 10 000

274 659 274 659

continued …



449


10-column Worksheet of G Gardiner (continued) for the year ended 31 December 2016

Adjustments Trading Profit & Loss Balance Sheet



Depreciation – Buildings 1 164 1 164

Depreciation – Machinery & Equipment 6 491 6 491



Expense Accrued [sales salaries] 1 638

Expense Accrued [office salaries] 3 300 5 720

Expense Accrued [stationery] 157

Expense Accrued [electricity] 100

Revenue Received Advance [rent recd] 823 823


16 152 16 152 60 250 197 366 72 243 8 885 156 100 82 342

Gross Profit 137 116 137 116

Net Profit 73 758 73 758

60813 197 366 146 001 146 001 156 100 156 100

Extract Income Statement of G Gardiner for the year ended 31 December 2016


Question 10.21b (perpetual inventory applies) (complete if question 10.21a was NOT done) For this question, the 10-column worksheet for 10.21b will be identical to that for 10.21b where perpetual inventory applies, on the previous page and the top of this page.



450


Income Statement of G Gardiner for the year ended 31 December 2016

Revenue Sales 197 366 less Cost of Goods Sold 60 250 Gross Profit 137 116 add Other Revenue Rent Received 7 205 Bad Debts Recovered 1 680 8 885 Total Revenue 146 001 less Expenses Selling and Distribution Sales Salaries 19 718 Advertising 3 753 23 471 General and Administrative Stationery 726 Office Salaries 31 072 Insurance 3 510 Electricity 1 985 Donations 280 Depreciation – Buildings 1 164 Depreciation – Mach & Equip 6 491 45 228 Financial and Borrowing Interest 2 488 Bank Charges 209 Bad Debts 288 Doubtful Debts 559 3 544 72 243 Net Profit 73 758




451 Question 10.22

8-column Worksheet of L Litigiosus for the year ended 30 June 2016

Account Trial Balance Adjustments Profit & Loss Balance Sheet

Cash at Bank 30 000 30 000 Accounts Receivable Control 46 300 46 300 GST Receivable 5 700 5 700 Land 128 000 128 000 Chambers 730 000 730 000 Acc Dep – Chambers 219 000 43 800 262 800 Office Equipment 67 500 67 500 Acc Dep – Office Equip 32 100 10 700 42 800 Accounts Payable Control 45 800 45 800 GST Payable 7 800 7 800 Loan (Mortgage) Payable 443 000 443 000 Capital 210 350 210 350 Drawings 263 900 263 900 Legal Fees Revenue 784 300 1 200 783 100 Insurance Expense 8 300 1 250 7 050 Salaries Expense 439 700 6 200 445 900 Electricity 3 800 3 800 Interest Expense 10 450 1 100 11 550 Telephone Expense 8 700 1 150 9 850 1 742 350 1 742 350

Depreciation - Chambers 43 800 43 800 Depreciation - Office Equip 10 700 10 700 Expense Accrued [salaries] 6 200 Expense Accrued [interest] 1 100 8 450 Expense Accrued [telephone] 1 150 Revenue Prepaid [legal fees] 1 200 1 200 Expense Prepaid [insurance] 1 250 1 250

65 400 65 400 532 650 783 100 1 272 650 1 022 200

Net Profit 250 450 250 450 783 100 783 100 1 272 650 1 272 650



452


Income Statement of L Litigious for the year ended 30 June 2016

Revenue Legal Fees Revenue 783 100 less Expenses

Insurance 7 050 Salaries 445 900 Electricity 3 800 Interest 11 550 Telephone 9 850 Depreciation - Chambers 43 800 Depreciation office furniture and equipment 10 700


Balance Sheet of L Litigious as at 30 June 2016

Current Assets Cash at Bank 30 000 Accounts Receivable Control 46 300 GST Receivable 5 700 Expense Prepaid 1 250 83 250

Non-current Assets Chambers 730 000 less Accumulated Depreciation 262 800 467 200 Office Equipment 67 500 less Accumulated Depreciation 42 800 24 700 Land 128 000 619 900


Accounts Payable Control 45 800 GST Payable 7 800 Expense Accrued 8 450 Revenue Prepaid 1 200 63 250

Non-current Liabilities Loan (Mortgage) Payable 443 000


Owner’s Equity Capital 210 350 add Net Profit 250 450 460 800 less Drawings 263 900




453 Question 10.23

8-column Worksheet of Dr R Queanbeyan for the 6 months ended 30 June 2016

Account Trial Balance Adjustments Profit & Loss Balance Sheet

Loan on premises 184 000 184 000 Accum Dep - Fit & Equi 38 780 6 664 45 444 Accum Dep - Motor Vehicle 11 016 11 019 22 035 Bank 19 660 19 660 Capital 211 580 211 580 Cash on Hand 1 500 1 500 Accounts Payable Control 2 612 2 612 Accounts Receivable Control 7 752 7 752 GST Payable 1 600 1 600 GST Receivable 5 600 5 600 Drawings 19 692 19 692 Electricity 6 832 6 832 Fees from Surgery 475 056 475 056 Interest on Mortgage 7 540 2 453 9 993 Motor Vehicle 146 920 146 920 Premises 442 800 442 800 Purchase of Surgical supplies 36 392 36 392 Rates 9 936 6 328 3 608 Salary - Nurse 75 276 960 76 236 Salary - Receptionist 64 636 875 65 511 Stationery 1 004 1 004 Surgical Supplies [1 Jan 2016] 9 408 9 408 Surgery Fittings & Equipment 66 636 66 636 Telephone 3 060 3 060 924 644 924 644

Inventory surgical supplies 10 868 10 868

P&L inventory 10 868 10868

Depreciation – Surg Equip 6 664 6 664



Expense Accrued [sal nurse] 960 4 288

Expense Accrued [sal recep] 875

Expense Prepaid [rates] 6 328 6 328

39 167 39 167 229 727 485 924 727 756 471 559

256 197 256 197

495 332 495 332 727 756 727 756



454

Question 10.23 continued Income Statement of Dr R Queanbeyan

for the 6 months ended 30 June 2016

Revenue Fees from Surgery 475 056 less Expenses Cost of Surgical Supplies used Stock Supplies 1 Jan 2016 9 408 Purchases of Supplies 36 392 45 800 Less Stock Supplies 30 June 2016 10 868 34 932 Electricity 6 832 Interest on Mortgage 9 993 Rates 3 608 Salary – Nurse 76 236 Salary – Receptionist 65 511 Stationery 1 004 Telephone 3 060 Depreciation – Surgical Equip 6 664 Depreciation – Motor Vehicles 11 019 Net Profit 256 197



455


Balance Sheet of Dr R Queanbeyan as at 30 June 2016

Current Assets Bank 19 660 Cash on Hand 1 500 Accounts Receivable Control 7 752 Inventory of Surgical Supplies 10 868 GST Receivable 5 600 Expense Prepaid 6 328 51 708

Non-current Assets Surgery Fittings and Equipment 66 636 less Accumulated Depreciation 45 444 21 192 Motor Vehicle 146 920 less Accumulated Depreciation 22 035 124 885 Premises 442 800 588 877


Accounts Payable Control 2 612 GST Payable 1 600 Expense Accrued 4 288 8 500

Non-current Liabilities Loan on Premises 184 000






456


10-column Worksheet of D Jounama for the six months ended 30 June 2016


Bank 22 327 22 327



Inventory [1.1.2016] 6 057 6 057


Machinery 59 000 59 000

Acc Depr – Machin 15 213 5 900 21 113


Acc Dep – Mot Veh 6 600 1 650 8 250


GST Payable 1 910 30 1 880

Loan fr A Reservoir 24 000 24 000

Capital 53 021 53 021


Sales 76 552 76 552

Purchases 28 835 28 835

Freight Inwards 776 776

Advertising 486 486

Freight Outwards 859 859

Salaries 21 889 790 22 679



Insurance 720 350 370

Bank Charges 61 61

Interest on Loan 1 080 870 1 950

Bad Debt Expense 848 300 1 148


Doubtful Debt Expense 208 85 123

181 797 181 797



Expense Prepaid [insurance] 350 350



Expense Accrued [interest on loan] 870 870

Expense Accrued [electricity] 378 378

Expense Accrued [telephone] 215 215

16 822 16 822 35 668 82 806 37 001 125 070 114 933

Gross Profit 47 138 47138 Net Profit 10 137 10 137

82 806 82 806 47 138 47 138 125 070 125 070



457


Income Statement of D Jounama for the six months ended 30 June 2016

Revenue Sales 76 552 less Cost of Goods Sold Inventory [1 January 2016] 6 057 Purchases 28 835 Freight Inwards 776 Cost of goods available for sale 35 668 less Inventory [30 June 2016] 6 254 29 414 Gross Profit 47 138 less Expenses Selling and Distribution Advertising 486 Freight Outwards 859 1 345 General and Administrative Salaries 22 679 Electricity 959 Telephone 449 Insurance 370 Depreciation – Machinery 5 900 Depreciation – Motor Vehicle 1 650 32 007 Financial and Borrowing Bank Charges 61 Interest on Loan 1 950 Bad Debts 1 148 Discount Allowed 367 Doubtful Debts 123 3 649 37 001 Net Profit 10 137



458


Balance Sheet of D Jounama as at 30 June 2016

Current Assets Bank 22 327 Accounts Receivable Control 11 154 less Allowance for Doubtful Debts 335 10 819 Inventory 6 254 GST Receivable 810 Expense Prepaid 350 40 560 Non-current Assets Machinery 59 000 less Accumulated Depreciation 21 113 37 887 Motor vehicle 22 000 less Accumulated Depreciation 8 250 13 750 51 637 Total Assets 92 197 Current Liabilities Accounts Payable Control 4 081 GST Payable 1 880 Expense Accrued 2 253 8 214 Non-current Liabilities Loan from A Reservoir 24 000 less Total Liabilities 32 214 Net Assets 59 983




459


10-column Worksheet of D Jounama for the six months ended 30 June 2016


Bank 22 327 22 327



Inventory 6 604 350 6 254

GST Receivable 845 35 810

Machinery 59 000 59 000

Acc Depr – Machin 15 213 5 900 21 113


Acc Dep – Mot Veh 6 600 1 650 8 250


GST Payable 1 910 30 1 880

Loan fr A Reservoir 24 000 24 000

Capital 53 021 53 021


Sales 76 552 76 552

Cost of Good Sold 29 029 385 29 414

Advertising 486 486


Salaries 21 889 790 22 679



Insurance 720 350 370

Bank Charges 61 61

Interest on Loan 1 080 870 1 950

Bad Debts 848 300 1 148


Doubtful Debts 208 85 123

181 797 181 797

Expense Accrued [salaries] 790 790 Expense Prepaid [insurance] 350 350



Expense Accrued [interest on loan] 870 870

Expense Accrued [electricity] 378 378

Expense Accrued [telephone] 215 215

10 953 10 953 29 414 76 552 37 001 125 070 114 933

Gross Profit 47 138 47 138 Net Profit 10 137 10 137

76 552 76 552 47 138 47 138 125 070 125 070



460


Extract Income Statement of D Jounama for the six months ended 30 June 2016




461


10-column Worksheet of Julia Kreiger for the year ended 30 June 2016


Bank 8 992 8 992

Petty Cash 550 550

A/c Receivabl Ctrl 40 392 253 40 139


Inventory [1.7.2015] 6 219 6 219


Acc Dep – Mot Veh 19 754 11 069 30 823

Off Furn & Equip 39 183 39 183

Acc Dep – Off Fn Eq 9 501 4 702 14 203

12% Govt Bonds 25 000 25 000

Bad Debts 1 885 230 2 115


Capital 73 887 73 887




GST Payable 4 590 23 4 567

Insurance 3 690 1 880 1 810



Purchases 83 283 83 283

Salaries 29 582 1 590 31 172

Sales 183 527 183 527



315 584 315 584



Depreciation – Office Furn & Equipm’t 4 702 4 702




Expense Accrued [salaries] 1 590 }

Expense Accrued [motor vehicle expense] 823 } 2 833

Expense Accrued [electricity] 420 }

28 990 28 990 89 502 190 630 65 503 5 700 187 413 146 088

Gross Profit 101 128 101 128

Net Profit 41 325 41 325

190 630 190 630 106 828 106 828 187 413 187 413



462


Income Statement of Julia Kreiger for the year ended 30 June 2016

Revenue Sales 183 527 less Cost of Goods Sold Inventory [1 July 2015] 6 219 Purchases 83 283 Cost of goods available for sale 89 502 less Inventory [30 June 2016] 7 103 82 399 Gross Profit 101 128 add Other Revenue Bad Debts Recovered 2 700 Interest Received 3 000 5 700 Total Revenue 106 828 less Expenses Selling and Distribution Freight Outwards 2 108 General and Administrative Electricity 2 599 Insurance 1 810 Motor Vehicle Expenses 7 926 Salaries 31 172 Telephone 1 602 Depreciation – Motor Vehicles 11 069 Depreciation – Off Furn & Equip’t 4 702 60 880 Financial and Borrowing Bad Debts 2 115 Doubtful Debts 400 2 515 65 503 Net Profit 41 325



463


Balance Sheet of Julia Kreiger as at 30 June 2016

Current Assets Bank 8 992 Petty Cash 550 Accounts Receivable Control 40 139 less Allowance for Doubtful Debts 800 39 339 Inventory 7 103 GST Receivable 2 320 Revenue Accrued 750 Expense Prepaid 1 880 60 934 Non-current Assets Motor Vehicles 61 496 less Accumulated Depreciation 30 823 30 673 Office Furniture and Equipment 39 183 less Accumulated Depreciation 14 203 24 980 12% Government Bonds 25 000 80 653 Total Assets 141 587 Current Liabilities Accounts Payable Control 18 975 GST Payable 4 567 Expense Accrued 2 833 26 375 less Total Liabilities 26 375 Net Assets 115 212

Owners’ Equity Capital 73 887 add Net Profit 41 325 Total Owners’ Equity 115 212



464


10-column Worksheet of Julia Kreiger for the year ended 30 June 2016


Bank 8 992 8 992

Petty Cash 550 550

A/cs Receivable Ctrl 40 392 253 40 139

Allow Doubt Debts 400 400 800

Inventory 7 323 220 7 103


Acc Dep – Mot Veh 19 754 11 069 30 823

Off Furn & Equip 39 183 39 183

Acc Dep – Off Fn Eq 9 501 4 702 14 203

12% Govern’t Bonds 25 000 25 000

Bad Debts 1 885 230 2 115


Capital 73 887 73 887




GST Payable 4 590 23 4 567

Insurance 3 690 1 880 1 810




Salaries 29 582 1 590 31 172

Sales 183 527 183 527



315 584 315 584


Depreciation – Office Furnit & Equipment 4 702 4 702




Expense Accrued [salaries] 1 590 }

Expense Accrued [motor vehicle expense] 823 } 2 833

Expense Accrued [electricity] 420 }

22 129 22 129 82 399 183 527 65 503 5 700 187 413 146 088

Gross Profit 101 128 101 128

Net Profit 41 325 41 325

183 527 183 527 106 828 106 828 187 413 187 413



465


Extract Income Statement of Julia Kreiger for the year ended 30 June 2016


Question 10.25b (perpetual inventory applies) (complete if question 10.25a was NOT done) For this question, the 10-column worksheet for 10.25b will be identical to that for 10.25b where perpetual inventory applies, at the top of the previous page.

Income Statement of Julia Kreiger for the year ended 30 June 2016

Revenue Sales 183 527 less Cost of Goods Sold 82 399 Gross Profit 101 128 add Other Revenue Bad Debts Recovered 2 700 Interest Received 3 000 5 700 Total Revenue 106 828 less Expenses Selling and Distribution Freight Outwards 2 108 General and Administrative Electricity 2 599 Insurance 1 810 Motor Vehicle Expenses 7 926 Salaries 31 172 Telephone 1 602 Depreciation – Motor Vehicles 11 069 Depreciation – Off Furn & Equipment 4 702 60 880 Financial and Borrowing Bad Debts 2 115 Doubtful Debts 400 2 515 65 503 Net Profit 41 325




467

Chapter 11 Advanced management reports and correction of errors Question 11.1a periodic inventory applies

BS CL A/c Pay BS CA A/c Rec BS NCA Ac Dep F F BS NCA Ac Dep OE PL SD Advert PL FB Bd Debt BS OE Cap T CoGS Cart Inw PL SD Cart Out BS CA Bank PL GA Dep F & F PL GA Dep O Eq PL FB Disc All PL OR Disc Rec PL FB Dbt Debt BS OE Draw PL GA Elect BS CL Exp Accr BS CA Exp Prepd BS NCA Fix & Fit BS CA GST Rec BS CL GST Pay PL GA Insur PL FB Interest T CoGS Invent open BS NCA Land & Bld BS NCL Mortg BS NCA Off Equip

BS CA All Dt Debt T CoGS Purch T R Sale PL GA Tphone PL GA Wage BS CA Inv close (T) (CoGS) (Inv close)

Income Statement of B Blue



Inventory [1 July 2015] 1 200 Purchases 29 000 Cartage Inwards 300 Cost of goods available for sale 30 500 less Inventory [30 June 2016] 1 400 29 100

Gross Profit 56 900 add Other Revenue Discount Received 300 Total Revenue 57 200 less Expenses Selling & Distribution

Advertising 400 Cartage Outwards 800 1 200

General & Administrative Depreciation – Fixtures and Fittings 200 Depreciation – Office Equipment 620 Electricity 500 Insurance 550 Telephone 450 Wages 28 500 30 820

Financial and Borrowing Bad Debts 200 Discount Allowed 50 Doubtful Debts 500 Interest 1 300 2 050




468


Extract Income Statement of B Blue for the year ended 30 June 2016



Gross Profit 56 900

Question 11.2 BS CL A/c Pay BS CA A/c Rec BS NCA Ac Dep F F BS NCA Ac Dep MV BS OE Cap BS CA Bank BS OE Draw BS CA Exp Prepd BS NCA Furn & Fit BS CA GST Rec BS CL GST Pay BS CA Invent BS NCA Land & Bld BS NCL Loan BS NCL Mortg L&B BS NCA Mot Veh BS OE P&L N Prf BS CA All Dt Debt

Balance Sheet of F Claudia

as at 30 June 2016

Current Assets Accounts Receivable 4 499 less Allowance for Doubtful Debts 225 4 274 Cash at Bank 10 250 Expense Prepaid 500 GST Receivable 900 Inventory 3 400 19 324

Non-current Assets Furniture and Fittings 4 000 less Accumulated Depreciation 1 500 2 500 Land and Buildings 158 000 Motor Vehicles 38 000 less Accumulated Depreciation 12 500 25 500 186 000


Accounts Payable Control 5 995 GST Payable 2 000 Loan from XYZ Bank 2 500 10 495

Non-current Liabilities Mortgage on Land and Buildings 35 000






469

Question 11.3a periodic inventory applies BS CA Bank BS CA Pet Cash BS CA A/c Rec BS CA All Dt Debt T CoGS Invent open BS CA GST Rec BS CA Rev Accr BS CA Exp Prepd

BS NCA Premise BS NCA Machin BS NCA Ac Dep Mc BS NCA Debent BS CL A/c Pay BS CL GST Pay BS CL Exp Accr BS NCL Mortg Prm BS OE Cap BS OE Draw T R Sale PL OR Int Rec T CoGS Purch PL SD Advert PL GA Sala PL GA Dep Mach

PL FB Bd Debt PL FB Int Mort PL FB Dbt Debt BS CA Inv close (T) (CoGS) (Inv close)

General Journal of E L Alamein GJ 1 30 Jun 16 Sales 186 386


Trading 103 990 Inventory [opening] 16 100 Purchases 87 890 Balances transferred



Interest Received 1 200 Profit and Loss 1 200 Balance transferred

Profit and Loss 83 053 Advertising 8 230 Salaries 60 100 Depreciation – Machinery 6 050 Bad Debts 2 853 Interest on Mortgage 5 310 Doubtful Debts 510 Balances transferred





470


General Ledger of E L Alamein Bank Petty Cash

Balance 8 398 Balance 150 Accounts Receivable Control Allowance for Doubtful Debts

Balance 25 399 Balance 890 Inventory GST Receivable

Balance open 16 100 Trading 16 100 Balance 2 400

Trading 15 600

Revenue Accrued Expense Prepaid Balance 580 Balance 2 750

Premises Machinery Balance 59 000 Balance 40 570

Accumulated Depreciation – Machinery Debentures Balance 24 230 Balance 16 000


Expense Accrued Mortgage on Premises Balance 4 100 Balance 25 000


Balance c/d 102 078 Profit & Loss 16 143 103 648 103 648 Balance b/d 102 078

Trading 30 Jun 16 Inventory [1 July 2015] 16 100 30 Jun 16 Sales 186 386

Purchases 87 890 Inventory [30 June 2016] 15 600

Profit and Loss [gross profit] 97 996

201 986 201 986

Profit and Loss 30 Jun 16 Advertising 8 230 30 Jun 16 Trading [gross profit] 97 996

Salaries 60 100 Interest Received 1 200 Depreciation – Machinery 6 050 Bad Debts 2 853 Interest on Mortgage 5 310 Doubtful Debts 510 Capital [net profit] 16 143 99 196 99 196 continued



471


General Ledger of E L Alamein continued Sales Interest Received


Purchases Advertising Balance 87 890 Trading 87 890 Balance 8 230 Profit & Loss 8 230

Salaries Depreciation – Machinery Balance 60 100 Profit & Loss 60 100 Balance 6 050 Profit & Loss 6 050

Bad Debts Interest on Mortgage Balance 2 853 Profit & Loss 2 853 Balance 5 310 Profit & Loss 5 310

Doubtful Debts Balance 510 Profit & Loss 510

Income Statement of E L Alamein for the year ended 30 June 2016

Revenue

Sales 186 386


Inventory [1 July 2015] 16 100

Purchases 87 890

Cost of goods available for sale 103 990 less Inventory [30 June 2016] 15 600 88 390




Selling & Distribution

Advertising 8 230

General & Administrative

Salaries 60 100


Financial and Borrowing Bad Debts 2 853


Doubtful Debts 510 8 673


Net Profit 16 143



472


Balance Sheet of E L Alamein as at 30 June 2016

Current Assets Bank 8 398 Petty Cash 150 Accounts Receivable Control 25 399 less Allowance for Doubtful Debts 890 24 509 Inventory 15 600 GST Receivable 2 400 Revenue Accrued 580 Expense Prepaid 2 750 54 387

Non-current Assets Premises 59 000 Machinery 40 570 less Accumulated Depreciation 24 230 16 340 Debentures 16 000 91 340



Non-current Liabilities Mortgage on Premises 25 000





Extract General Journal of E L Alamein GJ 1 30 Jun 16 Sales 186 386




473


Extract General Ledger of E L Alamein Sales Cost of Goods Sold





Extract Income Statement of E L Alamein



Question 11.3b perpetual inventory applies (complete if question 11.3a was NOT done) BS CA Bank BS CA Pet Cash BS CA A/c Rec BS CA All Dt Debt BS CA Invent BS CA GST Rec BS CA Rev Accr BS CA Exp Prepd BS NCA Premise BS NCA Machin BS NCA Ac Dep Mc BS NCA Debent BS CL A/c Pay BS CL GST Pay BS CL Exp Accr BS NCL Mortg Prm BS OE Cap BS OE Draw T R Sale PL OR Int Rec T CoGS CoGS PL SD Advert PL GA Salar PL GA Dep Mach

PL FB Bd Debt PL FB Int Mort PL FB Dbt Debt

General Journal of E L Alamein GJ 1 30 Jun 16 Sales 186 386

Trading 186 386 Balance transferred Trading 88 390 Cost of Goods Sold 88 390 Balance transferred Trading 97 996 Profit and Loss 97 996 Gross profit transferred to profit and loss Interest Received 1 200 Profit and Loss 1 200 Balance transferred

continued



474


General Journal of E L Alamein continued GJ 1 Profit and Loss 83 053 Advertising 8 230 Salaries 60 100 Depreciation – Machinery 6 050 Bad Debts 2 853 Interest on Mortgage 5 310 Doubtful Debts 510 Balances transferred Profit and Loss 16 143 Capital 16 143 Net profit transferred to capital Capital 1 570 Drawings 1 570 Drawings transferred to capital


General Ledger of E L Alamein Bank Petty Cash

Balance 8 398 Balance 150 Accounts Receivable Control Allowance for Doubtful Debts

Balance 25 399 Balance 890 Inventory GST Receivable

Balance 15 600 Balance 2 400 Revenue Accrued Expense Prepaid

Balance 580 Balance 2 750 Premises Machinery

Balance 59 000 Balance 40 570 Accumulated Depreciation – Machinery Debentures


Balance 9 889 Balance 4 660 Expense Accrued Mortgage on Premises



Balance c/d 102 078 Profit & Loss 16 143 103 648 103 648 Balance b/d 102 078



186 386 186 386



475 Question 11.3b perpetual inventory continued (complete if question 11.3a was NOT done)

General Ledger of E L Alamein continued Profit and Loss

30 Jun 16 Advertising 8 230 30 Jun 16 Trading 97 996 Salaries 60 100 Interest Received 1 200 Depreciation – Machinery 6 050 Bad Debts 2 853 Interest on Mortgage 5 310 Doubtful Debts 510 Capital 16 143 99 196 99 196 Sales Interest Received


Cost of Goods Sold Advertising Balance 88 390 Trading 88 390 Balance 8 230 Profit & Loss 8 230

Salaries Depreciation – Machinery Balance 60 100 Profit & Loss 60 100 Balance 6 050 Profit & Loss 6 050

Bad Debts Interest on Mortgage Balance 2 853 Profit & Loss 2 853 Balance 5 310 Profit & Loss 5 310

Doubtful Debts Balance 510 Profit & Loss 510

Income Statement of E L Alamein for the year ended 30 June 2016

Revenue Sales 186 386 less Cost of Goods Sold 88 390 Gross Profit 97 996 add Other Revenue Interest Received 1 200 Total Revenue 99 196 less Expenses Selling & Distribution

Advertising 8 230 General & Administrative

Salaries 60 100 Depreciation – Machinery 6 050 66 150

Financial and Borrowing Bad Debts 2 853 Interest on Mortgage 5 310 Doubtful Debts 510 8 673





476

Question 11.4a periodic inventory applies BS CA Pet Cash BS CA A/c Rec BS CA All Dt Debt T CoGS Invent BS CA GST Rec BS CA Exp Prepd BS NCA Lnd & Buil BS NCA Mot Veh BS NCA Ac Dep MV BS CL Bank O/d BS CL A/c Pay BS CL GST Pay BS CL Exp Accr BS CL Rev Rc Ad BS NCL Mortg L&B BS OE Cap BS OE Draw T R Sale PL OR Rnt Rec T CoGS Purch PL GA Salar PL GA Ins PL GA Dep MV PL FB Int PL FB Bd Debt PL FB Disc All PL FB Dbt Debt BS CA Invent (T) (CoGS) (Inv close)

General Journal of O Lightfoot GJ 1

30 Jun 16 Sales 61 415 Trading 61 415 Balance transferred Trading 31 165 Inventory [1 July 2015] 5 033 Purchases 26 132 Balances transferred Inventory [30 June 2016] 6 267 Trading 6 267 Closing stock as per stocktake Trading 36 517 Profit and Loss 36 517 Gross profit transferred Rent Received 3 645 Profit and Loss 3 645 Balance transferred Profit and Loss 27 423 Salaries 17 082 Insurance 1 843 Depreciation – Motor Vehicle 1 418 Interest 4 107 Bad Debts 866 Discount Allowed 1 917 Doubtful Debts 190 Balances transferred Profit and Loss 12 739 Capital 12 739 Net profit transferred to capital Capital 1 445 Drawings 1 445 Drawings transferred to capital



477


General Ledger of O Lightfoot Bank Petty Cash

Balance 10 610 Balance 175

Accounts Receivable Control Allowance for Doubtful Debts Balance 20 185 Balance 600

Inventory GST Receivable Balance 5 033 Trading 5 033 Balance 740

Trading 6 267

Expense Prepaid Land and Buildings Balance 3 024 Balance 54 125

Motor Vehicle Accum Depreciation – Motor Vehicle Balance 29 800 Balance 7 020


Expense Accrued Revenue Received in Advance Balance 3 081 Balance 608

Mortgage on Land & Buildings Capital Balance 30 500 Drawings 1 445 Balance 37 710

Drawings Balance c/d 49 004 Profit & Loss 12 739

Balance 1 445 Capital 1 445 50 449 50 449

Balance b/d 49 004

Trading 30 Jun 16 Inventory 5 033 30 Jun 16 Sales 61 415



67 682 67 682

Profit and Loss

30 Jun 16 Salaries 17 082 30 Jun 16 Trading 36 517 Insurance 1 843 Rent Received 3 645 Depr’n – Motor Vehicle 1 418 Interest 4 107 Bad Debts 866 Discount Allowed 1 917 Doubtful Debts 190 Capital 12 739 40 162 40 162 continued



478


General Ledger of O Lightfoot continued Sales Rent Received

Trading 61 415 Balance 61 415 Profit & Loss 3 645 Balance 3 645 Purchases Salaries Balance 26 132 Trading 26 132 Balance 17 082 Profit & Loss 17 082 Insurance Depreciation – Motor Vehicle Balance 1 843 Profit & Loss 1 843 Balance 1 418 Profit & Loss 1 418 Interest Bad Debts Balance 4 107 Profit & Loss 4 107 Balance 866 Profit & Loss 866 Discount Allowed Doubtful Debts Balance 1 917 Profit & Loss 1 917 Balance 190 Profit & Loss 190

Income Statement of O Lightfoot



Inventory 5 033 Purchases 26 132 Cost of goods available for sale 31 165 less Inventory 6 267 24 898


Rent Received 3 645 Total Revenue 40 162

less Expenses General & Administrative

Salaries 17 082 Insurance 1 843 Depreciation – Motor Vehicle 1 418 20 343

Financial and Borrowing Interest 4 107 Bad Debts 866 Discount Allowed 1 917 Doubtful Debts 190 7 080




479


Balance Sheet of O Lightfoot as at 30 June 2016

Current Assets Petty Cash 175 Accounts Receivable Control 20 185 less Allowance for Doubtful Debts 600 19 585 Inventory 6 267 GST Receivable 740 Expense Prepaid 3 024 29 791

Non-current Assets Land and Buildings 54 125 Motor Vehicle 29 800 less Accumulated Depreciation 7 020 22 780 76 905


Bank Overdraft 10 610 Accounts Payable Control 11 363 GST Payable 1 530 Expense Accrued 3 081 Revenue Received in Advance 608 27 192

Non-current Liabilities Mortgage on Land & Buildings 30 500 less Total Liabilities 57 692

Net Assets 49 004




Extract General Journal of O Lightfoot GJ 1 30 Jun 16 Sales 61 415




480 Question 11.4b continued (perpetual inventory applies)

Extract General Ledger of O Lightfoot Sales Cost of Goods Sold

Trading 61 415 Balance 61 415 Balance 24 898 Trading 24 898 Trading 30 Jun 16 Cost of Goods Sold 24 898 30 Jun 16 Sales 61 415 Profit & Loss 36 517 61 415 61 415 Profit and Loss 30 Jun 16 Trading 36 517

Extract Income Statement of O Lightfoot for the year ended 30 June 2016


Question 11.5a periodic inventory applies PL GA Tphone BS NCA Shrs in Co PL SD S Trav Exp T R Sale PL GA Salaries PL GA Rent T CoGS Purch BS NCA Off Equip PL GA M V Exp BS NCA Mot Veh T CoGS Invent PL GA Ins BS CL GST Pay BS CA GST Rec BS NCA Inv Debent PL SD Frt Outw T CoGS Frt Inw BS CA Exp Prep BS CL Exp Accr BS OE Draw

PL FB Dbt Debt PL OR Divd Rec PL OR Disc Rec PL GA Depr O Eq PL GA Depr M V BS OE Cap BS CA Bank PL FB Bd Debt BS CA All Dt Debt PL SD Advtg BS NCA Ac Dep MV BS NCA Ac Dep OE BS CA Ac Rec BS CL Ac Pay BS CA Invent (T) (CoGS) (Inv close)

General Journal of B Montgomery GJ 1 30 Jun 16 Sales 133 555


Trading 62 061 Inventory 3 823 Purchases 54 538 Freight Inwards 3 700 Balances transferred

Inventory 2 574 Trading 2 574 Closing stock as per stocktake Trading 74 068 Profit and Loss 74 068 Gross profit transferred

continued



481


General Journal of B Montgomery continued GJ 2 Discount Received 125 Profit and Loss 656 Balances transferred

Profit and Loss 67 422 Sales Travelling Expense 2 384 Freight Outwards 5 746 Advertising 1 453 Salaries 23 123 Rent 11 743 Telephone 1 144 Motor Vehicle Expense 3 553 Insurance 1 430 Depreciation – Office Equipment 4 826 Depreciation – Motor Vehicle 9 574 Doubtful Debts 100 Bad Debts 2 346 Balances transferred


Capital 364 Drawings 364 Drawings transferred to capital

General Ledger of B Montgomery

Bank Accounts Receivable Control Balance 2 813 Balance 5 500 Allowance for Doubtful Debts Inventory Balance 180 Balance 3 823 Trading 3 823

Trading 2 574 GST Receivable Expense Prepaid Balance 2 000 Balance 1 565 Shares in Companies Office Equipment Balance 10 996 Balance 48 264 Accum Deprec – Office Equipment Motor Vehicle Balance 28 698 Balance 63 826 Accum Depreciation – Motor Vehicle Investment in Debentures

Balance 34 928 Balance 13 000 Accounts Payable Control GST Payable Balance 3 949 Balance 3 340 continued



482


General Ledger of B Montgomery continued Expense Accrued Capital

Balance 1 174 Drawings 364 Balance 71 331 Drawings Balance c/d 78 269 Profit & Loss 7 302

Balance 364 Capital 364 78 633 78 633

Balance b/d 78 269 Trading

30 Jun 16 Inventory 3 823 30 Jun 16 Sales 133 555 Purchases 54 538 Inventory 2 574 Freight Inwards 3 700 Profit and Loss 74 068 136 129 136 129 Profit and Loss

30 Jun

Sales Travelling Exp 2 384 30 Jun 16 Trading 74 068 Freight Outwards 5 746 Dividend Received 531 Advertising 1 453 Discount Received 125 Salaries 23 123 Rent 11 743 Telephone 1 144 Motor Vehicle Expense 3 553 Insurance 1 430 Depr’n – Office Equipment 4 826 Depr’n – Motor Vehicle 9 574 Doubtful Debts 100 Bad Debts 2 346 Capital [net profit] 7 302 74 724 74 724 Sales Dividend Received


Discount Received Purchases Profit & Loss 125 Balance 125 Balance 54 538 Trading 54 538

Freight Inwards Sales Travelling Expense Balance 3 700 Trading 3 700 Balance 2 384 Profit & Loss 2 384

Freight Outwards Advertising Balance 5 746 Profit & Loss 5 746 Balance 1 453 Profit & Loss 1 453

Salaries Rent Balance 23 123 Profit & Loss 23 123 Balance 11 743 Profit & Loss 11 743

Telephone Motor Vehicle Expense Balance 1 144 Profit & Loss 1 144 Balance 3 553 Profit & Loss 3 553

continued



483


General Ledger of B Montgomery continued Insurance Depreciation – Office Equipment


Depreciation – Motor Vehicle Doubtful Debts Balance 9 574 Profit & Loss 9 574 Balance 100 Profit & Loss 100

Bad Debts Balance 2 346 Profit & Loss 2 346

Income Statement of B Montgomery for the year ended 30 June 2016


Inventory 3 823 Purchases 54 538 Freight Inwards 3 700 Cost of goods available for sale 62 061 less Inventory 2 574 59 487


Dividend Received 531 Discount Received 125 656

Total Revenue 74 724 less Expenses Selling & Distribution

Sales Travelling Expense 2 384 Freight Outwards 5 746 Advertising 1 453 9 583

General & Administrative Salaries 23 123 Rent 11 743 Telephone 1 144 Motor Vehicle Expense 3 553 Insurance 1 430 Depreciation – Office Equipment 4 826 Depreciation – Motor Vehicle 9 574 55 393

Financial and Borrowing Doubtful Debts 100 Bad Debts 2 346 2 446 67 422

Net Profit 7 302



484 Question 11.5a continued (periodic inventory applies)

Balance Sheet of B Montgomery as at 30 June 2016

Current Assets Bank 2 813 Accounts Receivable Control 5 500 less Allowance for Doubtful Debts 180 5 320 Inventory 2 574 GST Receivable 2 000 Expense Prepaid 1 565 14 272

Non-current Assets Shares in Companies 10 996 Office Equipment 48 264 less Accumulated Depreciation 28 698 19 566 Motor Vehicle 63 826 less Accumulated Depreciation 34 928 28 898 Investment in Debentures 13 000 72 460

Total Assets 86 732 less Current Liabilities


Net Assets 78 269

Owner’s Equity Capital 71 331 add Net Profit 7 302 78 633 less Drawings 364

Total Owner’s Equity 78 269 Question 11.5b perpetual inventory applies

Extract General Journal of B Montgomery GJ 1 30 Jun 16 Sales 133 555


Extract General Ledger of B Montgomery Sales Cost of Goods Sold


continued



485 Question 11.5a continued (pepetual inventory applies)

Extract General Ledger of B Montgomery continued Trading

30 Jun 16 Cost of Goods Sold 59 487 30 Jun 16 Sales 133 555 Profit & Loss 74 068 133 555 133 555 Profit and Loss 30 Jun 16 Trading 74 068

Extract Income Statement B Montgomery



Question 11.5b perpetual inventory applies (complete if question 11.5a was NOT done) General Journal of B Montgomery GJ 1

30 Jun 16 Sales 133 555 Trading 133 555 Balance transferred Trading 59 487 Cost of Goods Sold 59 487 Balance transferred Trading 74 068 Profit and Loss 74 068 Gross profit transferred Dividend Received 531 Discount Received 125 Profit and Loss 656 Balances transferred Profit and Loss 67 422 Sales Travelling Expense 2 384 Freight Outwards 5 746 Advertising 1 453 Salaries 23 123 Rent 11 743 Telephone 1 144 Motor Vehicle Expense 3 553 Insurance 1 430 Depreciation – Office Equipm’t 4 826 Depreciation – Motor Vehicle 9 574 Doubtful Debts 100 Bad Debts 2 346 Balances transferred Profit and Loss 7 302 Capital 7 302 Net profit transferred to capital

Capital 364 Drawings 364 Drawings transferred to capital



486


General Ledger of B Montgomery Bank Accounts Receivable Control

Balance 2 813 Balance 5 500 Allowance for Doubtful Debts Inventory

Balance 180 Balance 2 574 GST Receivable Expense Prepaid

Balance 2 000 Balance 1 565 Shares in Companies Office Equipment

Balance 10 996 Balance 48 264 Accumulated Deprec – Office Equipm’t Motor Vehicle Balance 28 698 Balance 63 826 Accumulated Deprec’n – Motor Vehicle Investment in Debentures Balance 34 928 Balance 13 000


Expense Accrued Capital Balance 1 174 Drawings 364 Balance 71 331

Drawings Balance c/d 78 269 Profit & Loss 7 302

Balance 364 Capital 364 711 1 054


30 Jun

Cost of Goods Sold 59 487 30 Jun 16 Sales 133 555 Profit and Loss [gross profit] 74 068 688 133 555

Profit and Loss 30 Jun

Sales Travelling Expense 2 384 30 Jun 16 Trading [gross profit] 74 068 Freight Outwards 5 746 Dividend Received 531 Advertising 1 453 Discount Received 125 Salaries 23 123 Rent 11 743 Telephone 1 144 Motor Vehicle Expense 3 553 Insurance 1 430 Deprec’n – Office Equipm’t 4 826 Deprec’n – Motor Vehicle 9 574 Doubtful Debts 100 Bad Debts 2 346 Capital [net profit] 7 302 757 74 724

continued




General Ledger of B Montgomery continued Sales Dividend Received

Trading 133 555 Balance 133 555 Profit & Loss 531 Balance 531 Discount Received Cost of Goods Sold Profit & Loss 125 Balance 125 Balance 59 487 Trading 59 487 Sales Travelling Expense Freight Outwards Balance 2 384 Profit & Loss 2 384 Balance 5 746 Profit & Loss 5 746 Advertising Salaries Balance 1 453 Profit & Loss 1 453 Balance 23 123 Profit & Loss 23 123 Rent Telephone Balance 11 743 Profit & Loss 11 743 Balance 1 144 Profit & Loss 1 144 Motor Vehicle Expense Insurance Balance 3 553 Profit & Loss 3 553 Balance 1 430 Profit & Loss 1 430 Depreciation – Office Equipment Depreciation – Motor Vehicle Balance 4 826 Profit & Loss 4 826 Balance 9 574 Profit & Loss 9 574 Doubtful Debts Bad Debts Balance 100 Profit & Loss 100 Balance 2 346 Profit & Loss 2 346

Income Statement of B Montgomery for the year ended 30 June 2016


Dividend Received 531 Discount Received 125 656


Sales Travelling Expense 2 384 Freight Outwards 5 746 Advertising 1 453 9 583

General & Administrative Salaries 23 123 Rent 11 743 Telephone 1 144 Motor Vehicle Expense 3 553 Insurance 1 430 Depreciation – Office Equipment 4 826 Depreciation – Motor Vehicle 9 574 55 393

Financial and Borrowing Doubtful Debts 100 Bad Debts 2 346 2 446 67 422

Net Profit 7 302




488

Question 11.6a periodic inventory applies BS NCA Bank BS CA Ac Rec BS CA All Dt Debt T CoGS Invent BS CA GST Rec BS NCA Mot Veh BS NCA Ac Dep MV BS NCA Inv AIM BS CL Ac Pay BS CL GST Pay BS OE Cap T R Sale PL OR Int Rec T CoGS Purch PL GA Insur PL GA Wage PL GA Veh Exp PL GA Oth O Exp Bal Day Adjust BS CA Invent (T CoGS Invent) PL GA Depr M V (BS NCA Ac Dp MV) BS CA Rev Accr (PL OR Int Rec) BS CA Exp Prep (PL GA Insur) PL GA Wage (BS CL Exp Accr)

Income Statement of Margaret Robertson



Inventory 1 730 Purchases 15 480 Cost of goods available for sale 17 210 less Inventory 1 290 15 920


Interest Received 500 Total Revenue 29 830 less Expenses General & Administrative

Insurance 1 200 Wages 8 200 Vehicle Expenses 1 630 Other Office Expenses 2 880 Depreciation – Motor Vehicle 4 200




489


Balance Sheet of Margaret Robertson as at 30 June 2016

Current Assets Bank 3 367 Accounts Receivable Control 6 578 less Allowance for Doubtful Debts 150 6 428 Inventory 1 290 GST Receivable 540 Revenue Accrued 190 Expense Prepaid 517 12 332

Non-current Assets Motor Vehicle 28 276 less Accumulated Depreciation 12 800 15 476 Investment in AIM 7 770 23 246


Accounts Payable Control 1 133 GST Payable 1 100 Expense Accrued 190 2 423


Owner’s Equity Capital 21 435 add Net Profit 11 720 33 155 Total Owner’s Equity 33 155


Extract General Journal of Margaret Robertson GJ 1 30 Jun 16 Sales 45 250


Extract Income Statement of Margaret Robertson


Revenue Sales 45 250 less Cost of Goods Sold 15 920

Gross Profit 29 330



490

Question 11.7a periodic inventory applies BS CL Ac Pay BS CA Ac Rec BS NCA Ac Dep Mc BS NCA Ac Dep MV PL SD Advtg BS CA All Dt Debt PL FB Bd Dbt BS CA Bank PL FB Bnk Chg BS OE Cap PL FB Disc All PL FB Dbt Det BS OE Draw PL GA Elect T CoGS Frt Inw PL SD Frt Outw BS CA GST Recv BS CL GST Pay PL GA Insur PL FB Int Loan T CoGS Invent BS NCL Loan fr AR BS NCA Mach BS NCA Mot Veh T CoGS Purch PL GA Sal & Wag T R Sale PL GA Stat Pcop

Bal Day Adjust PL SD Advtg (BS CL Exp Accr) PL GA Stat&Phot (BS CL Exp Accr) PL FB Int Loan (BS CL Exp Accr) PL FB Bd Det BS CL GST Pay (BS CA Ac Rec) PL FB Dbt Det (BS CA All Dt Debt) PL GA Dep Mach (BS NCA Ac Dp Mc) PL GA Dep MV (BS NCA Ac Dp MV) BS CA Invent (T CoGS Invent) BS CA Exp PreP (PL GA Insur) PL GA Sal & Wag (BS CL Exp Accr)

Income Statement of Harry Moxey



Inventory 7 874 Purchases 38 457 Freight Inwards 970 Cost of goods available for sale 47 301 less Inventory 8 130 39 171


Advertising 1 097 Freight Outwards 1 117 2 214

General and Administrative Electricity 726 Insurance 1 495 Salaries and Wages 39 600 Stationery and Photocopying 683 Depreciation – Machinery 13 000 Depreciation – Motor Vehicle 4 800 60 304

Financial and Borrowing Bad Debts 2 315 Bank Charges 350 Discount Allowed 250 Doubtful Debts 860 Interest on Loan 2 364 6 139




491


Balance Sheet of Harry Moxey as at 30 June 2016

Current Assets Bank 27 909 Accounts Receivable Control 18 953 less Allowance for Doubtful Debts 1 000 17 953 Inventory 8 130 GST Receivable 1 050 Expense Prepaid 455 55 497

Non-current Assets Machinery 65 000 less Accumulated Depreciation 32 016 32 984 Motor Vehicle 32 000 less Accumulated Depreciation 13 050 18 950 51 934


Accounts Payable Control 5 104 GST Payable [2480 – 43] 2 437 Expense Accrued [490 + 280 + 960 + 1100]

2 830 10 371

Non-current Liabilities Loan from A Reservoir 25 000





Extract Income Statement Harry Moxey for the year ended 30 June 2016





BS CL Ac Pay BS CA Ac Rec BS NCA Ac Dep Mc BS NCA Ac Dep MV PL SD Advtg BS CA All Dt Debt PL FB Bd Dbt BS CA Bank PL FB Bnk Chg BS OE Cap T CoGS CoGS PL FB Disc All PL FB Dbt Det BS OE Draw PL GA Elect PL SD Frt Outw BS CA GST Recv BS CL GST Pay PL GA Insur PL FB Int Loan BS CA Invent BS NCL Loan fr AR BS NCA Mach BS NCA Mot Veh PL GA Sal & Wag T R Sale PL GA Stat Pcop Bal Day Adjust PL SD Advtg (BS CL Exp Accr) PL GA Stat&Phot (BS CL Exp Accr) PL FB Int Loan (BS CL Exp Accr) PL FB Bd Det BS CL GST Pay (BS CA Ac Rec) PL FB Dbt Det (BS CA All Dt Debt) PL GA Dep Mach (BS NCA Ac Dp Mc) PL GA Dep MV (BS NCA Ac Dp MV) T CoGS CoGS (BS CA Invent) (BS CA GST Rec)

BS CA Exp PreP (PL GA Insur) PL GA Sal & Wag (BS CL Exp Accr)

Income Statement of Harry Moxey for the year ended 30 June 2016


less Cost of Goods Sold [38 918 + 253] 39 171

Gross Profit 70 346 less Expenses


Advertising [607 + 490] 1 097


General and Administrative Electricity 726

Insurance [1950 – 455] 1 495

Salaries and Wages [38 500 + 1100] 39 600

Stationery and Photocopying [403 + 280] 683



Financial and Borrowing Bad Debts [1885 + 430] 2 315

Bank Charges 350


Doubtful Debts [260 + 600] 860

Interest on Loan[1404 + 960] 2 364 6 139


Net Profit 1 689



493

Question 11.7b perpetual inventory finalised (complete if question 11.7a was NOT done)

Balance Sheet of Harry Moxey as at 30 June 2016

Current Assets Bank 27 909 Accounts Receivable Control [19 426 – 473] 18 953 less Allowance for Doubtful Debts [400 + 600] 1 000 17 953 Inventory [8360 – 230] 8 130 GST Receivable [1073 – 23] 1 050 Expense Prepaid 455 55 497

Non-current Assets Machinery 65 000 less Accumulated Depr’n [19 016 + 13 000] 32 016 32 984 Motor Vehicle 32 000 less Accumulated Depreciation [8250 + 4800] 13 050 18 950 51 934


Accounts Payable Control 5 104 GST Payable [2480 – 43] 2 437 Expense Accrued [490 + 280 + 960 + 1100] 2 830 10 371

Non-current Liabilities Loan from A Reservoir 25 000





PL GA Wage PL GA Tphone T R Sale T CoGS Purch BS CA Pet Cash BS NCA Off F & E PL GA MV Exp BS NCA Mot Veh T CoGS Invent PL OR Int Rec PL GA Insur BS CL GST Pay

BS CA GST Recv BS NCA Gov Bnd PL SD Frt Outw PL GA Elect BS OE Cap BS CA Bank PL OR B D Recov PL FB Bd Det BS CA All Dt Debt BS NCA Ac De OFE BS NCA Ac De MV BS CA Ac Rec BS CL Ac Pay Bal Day Adjust PL GA Wage (BS CL Exp Accr) PL FB Bd Det BS CL GST Pay (BS CA Ac Rec) PL FB Dbt Det (BS CA All Dt Debt) BS CA Exp PreP (PL GA Insur) PL GA Dep OF&E (BS NCA AcDpOFE) PL GA Dep MV (BS NCA Ac Dp MV) PL GA Elect (BS CL Exp Accr) BS CA Rev Accr PL OR Int Rec BS CA Invent (T CoGS Invent) PL SD Frt Outw (BS CL Exp Accr)



494


Income Statement of Joe Madeley for the year ended 30 June 2016

Revenue

Sales 148 657


Inventory 5 037

Purchases 67 459

Cost of goods available for sale 72 496 less Inventory 5 327 67 169



Bad Debts Recovered 2 320 4 895





Wages 34 262

Telephone 1 298

Motor Vehicle Expense 5 753

Insurance 1 869

Electricity 2 096

Deprec – Office Furniture & Equipment 3 174


Financial and Borrowing Doubtful Debts 900

Bad Debts 1 927 2 827


Net Profit 25 318



495


Balance Sheet of Joe Madeley as at 30 June 2016

Current Assets Petty Cash 500 GST Receivable 1 910 Bank 7 538 Accounts Receivable Control 32 065 less Allowance for Doubtful Debts 1 300 30 765 Inventory 5 327 Revenue Accrued 475 Expense Prepaid 1 120 47 635

Non-current Assets Office Furniture & Equipment 31 738 less Accumulated Depreciation 10 822 20 916 Motor Vehicle 49 812 less Accumulated Depreciation 18 563 31 249 Government Bonds 20 000 72 165


GST Payable [3700 – 41] 3 659 Accounts Payable Control 15 367 Expense Accrued [1300 + 342 + 617] 2 259 21 285


Owner’s Equity Capital 73 197 add Net Profit 25 318



Extract Income Statement Joe Madeley for the year ended 30 June 2016


Question 11.9 c Where a transaction is entered to the credit side of each account


30 Jun 16 Stationery 170 a Vehicle Expenses 530 Expense Accrued 700 Expenses accrued

continued



496 Question 11.10 continued

General Journal of . . . continued GJ . . Profit and Loss 700 Stationery 170 Vehicle Expenses 530 Balances closed out

1 Jul 16 Expense Accrued 700 b Stationery 170 Vehicle Expenses 530 Reversal

Purchase Distribution Journal of . . . PD . .

b Accounts Payable

Station-nery

GST Receiv

VehicleExp

1 Jul 16 L George – Stationery 187 170 17 R Macquarie – Vehicle Expense 583 53 530 770 170 70 530

c Extract Balance Sheet of . . . as at 30 June 2016


d. The trial balance would still balance as neither debit nor credit $700 would be processed. Gross profit would not be affected. Net profit would be overstated by $700 and both stationery and vehicle expense would be

understated by $170 and $530 respectively. The Balance Sheet would understate the current liabilities as expense accrued would be

understated by $700 and owners equity would be overstated as the net profit would be overstated by $700.

Question 11.11

a Pro Forma General Journal of S Urara i Accounts Receivable Control 627

– C Boronia 627 Sales 570 GST Payable 57 Entry SHOULD have been ii Accounts Receivable Control 825

– C Boronia 825 Sales 750 GST Payable 75 Erroneously the entry WAS iii Accounts Receivable Control [627 – 825] 198

– C Boronia (198) Sales [570 – 750] 180 GST Payable [57 – 75] 18 Correction of error is, but debits are not first



497


General Journal of S Urara GJ . . iii Sales [570 – 750] 180

GST Payable [57 – 75] 18 Accounts Receivable Control [627 – 825] 198 – C Boronia 198 Correction of error IS

b Sales 750 GST Payable 75 Accounts Receivable Control – C Boronia 825 825 Reversal of error in processing invoice to C Boronia

Accounts Receivable Control 627 – C Boronia 627 Sales 570 GST Payable 57 Correct entry for credit sale to C Boronia

Question 11.12

a. Pro Forma General Journal of P Toona i Office Equipment 7 650

GST Receivable 765 Accounts Payable Control 8 415 – G Heath 8415 Entry SHOULD have been ii Office Equipment 4 680

GST Receivable 468 Accounts Payable Control 5 148 – G Heath 5148 Erroneously the entry WAS

General Journal of P Toona GJ . .

iii Office Equipment [7650 – 4680] 2 970 GST Receivable [765 – 468] 297 Accounts Payable Control [8415 – 5148] 3 267 – G Heath 3267 Correction of error IS

b Accounts Payable Control 5 148 – G Heath 5148 Office Equipment 4 680 GST Receivable 468 Reversal of error in invoicing from G Heath

Office Equipment 7 650 GST Receivable 765 Accounts Payable Control 8 415 – G Heath 8415 Correct entry for credit purchase from G Heath



498

Question 11.13 a Pro Forma General Journal of T Lasiandra i Purchases 1 470

GST Receivable 147 Accounts Payable Control 1 617 – D Shores 1617 Entry SHOULD have been ii Purchases 1 560

GST Receivable 156 Accounts Payable Control 1 716 – D Shores 1716 Erroneously the entry WAS iii Purchases [1470 – 1560] 90

GST Receivable [147 – 156] 9 Accounts Payable Control [1617 – 1716] 99 – D Shores (99) Correction of error is, but debits are not first

General Journal of T Lasiandra GJ . .

iii Accounts Payable Control [1617 – 1716] 99 – D Shores 99 Purchases [1470 – 1560] 90 GST Receivable [147 – 156] 9 Correction of error IS

b Accounts Payable Control 1 716 – D Shores 1716 Purchases 1 560 GST Receivable 156 Reversal of error in invoicing fromo D Shores

Purchases 1 470 GST Receivable 147 Accounts Payable Control 1 617 – D Shores 1617 Correct entry for credit purchase from D Shores

Question 11.14 Extract General Journal of . . . GJ . .

Motor Vehicle Expenses 1 735

Motor Vehicles 1 735 Allocate motor vehicle expenses to correct account

Question 11.15 Extract General Journal of R Capertee GJ 1

Accounts Receivable Control 1 342 – B Cider 1342 Accounts Receivable Control 1 342 – B Spider 1342 Correction of allocation to B Cider



499

Question 11.16

a Pro Forma General Journal of A Bottlebrush i Accounts Receivable Control 385

– Glen Bawn 385 Sales 350 GST Payable 35 Entry SHOULD have been

ii Accounts Receivable Control 836 – Glen Bawn 836 Sales 760 GST Payable 76 Erroneously the entry WAS

iii Accounts Receivable Control [385 – 836] 451 – Glen Bawn (451) Sales [350 – 760] 410 GST Payable [35 – 76] 41 Correction of error IS, but debits are not first

General Journal of A Bottlebrush GJ . .

iii Sales [350 – 760] 410 GST Payable [35 – 76] 41 Accounts Receivable Control [385 – 836] 451 – Glen Bawn 451 Correction of error IS

b Sales 760 GST Payable 76 Accounts Receivable Control 836 – Glen Bawn 836 Reversal of error in processing invoice to Glen Bawn

Accounts Receivable Control 385 – Glen Bawn 385 Sales 350 GST Payable 35 Correct entry for credit sale to Glen Bawn

Question 11.17

General Journal of . . . GJ . . 30 Jun 16 Revenue Accrued 6 890

Sales 6 890 Accrue for delivery to customer not invoiced

1 Jul 16 Sales 6 890 Revenue Accrued 6 890 Reversal of revenue accrued



500 Question 11.18

Error 1 a Pro Forma General Journal of E Poinsettia i Stationery 2 230

GST Receivable 223 Accounts Payable Control 2 453 – L Redman 2453 Entry SHOULD have been

ii Stationery 2 140 GST Receivable 214 Accounts Payable Control 2 354 – L Redman 2354 Erroneously the entry WAS

General Journal of E Poinsettia GJ . .

iii Stationery [2230 – 2140] 90 GST Receivable [223 – 214] 9 Accounts Payable Control [2453 – 2354] 99 – L Redman 99 Correction of error IS

b Accounts Payable Control 2 354 – L Redman 2354 Stationery 2 140 GST Receivable 214 Reversal of error in invoicing from L Redman

Stationery 2 230 GST Receivable 223 Accounts Payable Control 2 453 – L Redman 2453 Correct entry for credit purchase from L Redman

Error 2 Accounts Receivable Control 4 664

– Clarence Rivers 4664 Accounts Receivable Control 4 664 – Clarence Way 4664 Correction of receipt from Clarence Way

Error 3 Sales 14 710

Computers 330 Capital 14 380 Correction of erroneous allocations to sales

Question 11.19

General Journal of Honey Suckle GJ . . a Accounts Receivable Control 3 960

– P Onion 3960 Accounts Receivable Control 3 960 – P Union 3960 Correction of sale to P Onion

continued



501


General Journal of Honey Suckle continued GJ . . b Expense Accrued 6 355

Wages 6 355 Reversal of last month’s accrual

c Insurance 3 815 Interest 3 815 Correction of insurance account allocation

Question 11.20 Error 1 a Pro Forma General Journal of R Hibiscus i Accounts Receivable Control 1 705

– S Queen 1705 Office Equipment 1 550 GST Payable 155 Entry SHOULD have been

ii Purchases 1 550 GST Receivable 155 Accounts Payable Control 1 705 – S Queen 1705 Erroneously the entry WAS

General Journal of R Hibiscus GJ . .

iii Accounts Receivable Control 1 705 – S Queen 1705 Accounts Payable Control 1 705 – S Queen 1705 Office Equipment 1 550 GST Payable 155 Purchases 1 550 GST Receivable 155 Correction of error IS

b Accounts Payable Control 1 705 – S Queen 1705 Purchases 1 550 GST Receivable 155 Reversal of error in processing invoice from S Queen

Accounts Receivable Control 1 705 – S Queen 1705 Office Equipment 1 550 GST Receivable 155 Correct entry for credit sale to S Queen

continued



502


General Journal of R Hibiscus continued GJ . . Error 2 Motor Vehicles 7 500

Machinery 630 Drawings 13 800 Motor Vehicle Expense 7 500 Repairs and Maintenance 6 300 Capital 13 800 Correction when new capital was contributed

Error 3 a Pro Forma General Journal of R Hibiscus i Purchases 7 570.00

GST Receivable 757.00 Accounts Payable Control 8 327.00 – Q Rudder 8327.00 Entry SHOULD have been

ii Stationery 757.00 GST Receivable 75.70 Accounts Payable Control 832.70 – Q Rudder 832.70 Erroneously the entry WAS

General Journal of R Hibiscus GJ . .

iii Purchases 7 570.00

GST Receivable [757.00 – 75.70] 681.30

Stationery 757.00

Accounts Payable Control [8327.00 – 832.70] 7 494.30

– Q Rudder 7494.30

Correction of error IS

b Accounts Payable Control 832.70 – Q Rudder 832.70 Stationery 757.00 GST Receivable 75.70 Reversal of error in processing invoice from Q Rudder

Purchases 7 570.00 GST Receivable 757.00 Accounts Payable Control 8 327.00 – Q Rudder 8327.00 Correct entry for credit sale to Q Rudder

Error 4 Dividend Received 800 Rent Received 800 Correction of rent received account allocation



503 Question 11.21

BS CL R Rec Adv BS CA Rev Accr T R Sale BS CA Pet Cash BS NCA Mot Veh BS NCA Mc & Eq BS NCA Land BS NCA In Gov Bnd BS CA In Gov Bnd BS CA Invent BS CL GST Pay BS CA GST Rec BS NCA Inv Share BS CA Exp Prep BS CL Exp Accr PL Expense BS OE Draw BS OE Cap BS NCA Bldg BS CA Bl Rec BS CL Bnk O/d BS NCA Bnk Loan BS CA All Dt Debt BS NCA Ac Dp MV BS NCA Ac Dp M E BS NCA Ac Dp Bldg BS CA Ac Rec BS CL Ac Pay

Balance Sheet of Q Don

as at 30 June 2016

Current Assets Revenue Accrued 1 650 Accounts Receivable Control 34 980 less Allowance for Doubtful Debts 3 000 31 980 Petty Cash 450 Investment in Government Bonds 4 000 Inventory 26 750 GST Receivable 2 050 Expenses Prepaid 1 390 Bills Receivable Control 5 200 73 470

Non-current Assets Motor Vehicles 57 500 less Accumulated Depreciation 18 350 39 150 Machinery and Equipment 69 000 less Accumulated Depreciation 29 300 39 700 Land 95 000 Investment in Government Bonds 6 000 Investment in Shares 30 000 Buildings 120 000 less Accumulated Depreciation 23 000 97 000 306 850


Revenue Received in Advance 1 100 GST Payable 4 700 Expense Accrued 2 400 Bank Overdraft 11 200 Accounts Payable Control 20 702 40 102

Non-current Liabilities Bank Loan 45 000


Owner’s Equity Capital 230 800 add Net Profit [revenue 669 221– expense 568 803] 100 418 331 218 less Drawings 36 000




504

Question 11.22a periodic inventory applies BS CL Ac Pay BS CA Ac Rec BS NCA Ac Dp M E BS NCA Ac Dp Bldg PL SD Advtg BS CA All Dt Debt PL FB Bd Det PL OR B D Rec PL FB Bnk Chg BS CL Bnk O/d BS NCA Bldg BS OE Cap PL GA Dep Bldg PL GA Dep M E PL GA Donat PL FB Dbt Det BS OE Draw PL GA Elect BS CL Exp Accr BS CA Exp Prep BS CA GST Rec BS CL GST Pay T CoGS Impt Cost PL GA Insur PL FB Interst T CoGS Invent BS NCA Land BS NCA Mc & Eq BS NCL Mort L & B PL GA Off Salar T CoGS Purch PL OR Rent Rec BS CL Rv Rc Adv T R Sale PL SD Sale Salar PL GA Station BS CA Invent (T CoGS Invent)

General Journal of L Tobruk GJ 1

31 Dec 16 Sales 167 761 Trading 167 761 Balance closed out to trading Trading 56 376 Inventory 4 374 Purchases 49 563 Import Costs 2 439 Balances closed out to trading Inventory 4 856 Trading 4 856 Closing inventory as per annual physical stocktake Trading 116 241 Profit and Loss 116 241 Gross profit closed out to profit and loss Bad Debts Recovered 1 428 Rent Received 6 124 Profit and Loss 7 552 Balances closed out to profit and loss Profit and Loss 59 065 Advertising 3 190 Sales Salaries 14 210 Depreciation – Building 989 Depreciation – Machinery & Equipment 5 517 Donations 240 Electricity 1 687 Insurance 2 984 Office Salaries 26 411 Stationery 617 Bad Debts 452 Bank Charges 178 Doubtful Debts 475 Interest 2 115 Balances closed out to profit and loss

continued



505


General Journal of L Tobruk continued GJ 1 Profit and Loss 64 728 Capital 64 728 Net profit closed out to capital Capital 3 309 Drawings 3 309 Drawings closed out to capital

General Ledger of L Tobruk


Inventory GST Receivable Balance 4 374 Trading 4 374 Balance 1 470

Trading 4 856 Expense Prepaid Land

Balance 1 046 Balance 40 000 Building Accumulated Depreciation – Building

Balance 39 576 Balance 9 223 Machinery & Equipment Accum Deprec – Machinery & Equip

Balance 36 780 Balance 16 355 Bank Overdraft Accounts Payable Control

Balance 4 120 Balance 5 632 GST Payable Expense Accrued

Balance 4 300 Balance 4 862 Revenue Received in Advance Mortgage on Land & Buildings

Balance 700 Balance 10 000 Capital Drawings



Balance b/d 83 890 Trading 31 Dec 16 Inventory 4 374 31 Dec 16 Sales 167 761


Import Costs 2 439


172 617 172 617

continued



506


General Ledger of L Tobruk continued Profit and Loss

31 Dec 16 Advertising 3 190 31 Dec 16 Trading 116 241 Sales Salaries 14 210 Bad Debts Recovered 1 428 Depreciation – Building 989 Rent Received 6 124 Deprec’n – Mach & Equip 5 517 Donations 240 Electricity 1 687 Insurance 2 984 Office Salaries 26 411 Stationery 617 Bad Debts 452 Bank Charges 178 Doubtful Debts 475 Interest 2 115 Capital 64 728 123 793 123 793

Sales Bad Debts Recovered Trading 167 761 Balance 167 761 Profit & Loss 1 428 Balance 1 428

Rent Received Purchases Profit & Loss 6 124 Balance 6 124 Balance 49 563 Trading 49 563

Import Costs Advertising Balance 2 439 Trading 2 439 Balance 3 190 Profit & Loss 3 190

Sales Salaries Depreciation – Building Balance 14 210 Profit & Loss 14 210 Balance 989 Profit & Loss 989

Depreciation – Machinery & Equip’t Donations Balance 5 517 Profit & Loss 5 517 Balance 240 Profit & Loss 240

Electricity Insurance Balance 1 687 Profit & Loss 1 687 Balance 2 984 Profit & Loss 2 984

Office Salaries Stationery Balance 26 411 Profit & Loss 26 411 Balance 617 Profit & Loss 617

Bad Debts Bank Charges Balance 452 Profit & Loss 452 Balance 178 Profit & Loss 178

Doubtful Debts Interest Balance 475 Profit & Loss 475 Balance 2 115 Profit & Loss 2 115



507


Income Statement of L Tobruk for the year ended 31 December 2016


Inventory 4 374 Purchases 49 563 Import Costs 2 439 56 376 less Inventory 4 856 51 520


Bad Debts Recovered 1 428 Rent Received 6 124 7 552


Advertising 3 190 Sales Salaries 14 210 17 400

General & Administrative Depreciation – Building 989 Depreciation – Machinery & Equipment

5 517

Donations 240 Electricity 1 687 Insurance 2 984 Office Salaries 26 411 Stationery 617 38 445

Financial and Borrowing Bad Debts 452 Bank Charges 178 Doubtful Debts 475 Interest 2 115 3 220




508


Balance Sheet of L Tobruk as at 31 December 2016

Current Assets Accounts Receivable Control 15 829 less Allowance for Doubtful Debts 475 15 354 Inventory 4 856 GST Receivable 1 470 Expense Prepaid 1 046 22 726

Non-current Assets Land 40 000 Building 39 576 less Accumulated Depreciation 9 223 30 353 Machinery & Equipment 36 780 less Accumulated Depreciation 16 355 20 425 90 778


Bank Overdraft 4 120 Accounts Payable Control 5 632 GST Payable 4 300 Expense Accrued 4 862 Revenue Received in Advance 700 19 614

Non-current Liabilities 15% Mortgage on Land & Buildings 10 000





Extract General Journal of L Tobruk GJ 1 31 Dec 16 Sales 167 761

Trading 167 761 Balance transferred Trading 51 520 Cost of Goods Sold 51 520 Balance transferred

Trading 116 241 Profit and Loss 116 241 Gross profit transferred to profit and loss



509


Extract General Ledger of L Tobruk Sales Cost of Goods Sold


Trading 31 Dec 16 Cost of Goods Sold 51 520 31 Dec 16 Sales 167 761 Profit & Loss 116 241 167 761 167 761 Profit and Loss 31 Dec 16 Trading 116 241

Extract Income Statement L Tobruk




General Journal of L Tobruk GJ 1 31 Dec 16 Sales 167 761

Trading 167 761 Balance closed out to trading Trading 51 520 Cost of Goods Sold 51 520 Balance closed out to trading Trading 116 241 Profit and Loss 116 241 Gross profit closed out to profit and loss Bad Debts Recovered 1 428 Rent Received 6 124 Profit and Loss 7 552 Balances closed out to profit and loss

continued



510


General Journal of L Tobruk continued GJ 1 Profit and Loss 59 065 Advertising 3 190 Sales Salaries 14 210 Depreciation – Building 989 Depreciation – Mach & Equipment 5 517 Donations 240 Electricity 1 687 Insurance 2 984 Office Salaries 26 411 Stationery 617 Bad Debts 452 Bank Charges 178 Doubtful Debts 475 Interest 2 115 Balances closed out to profit and loss Profit and Loss 64 728 Capital 64 728 Net profit closed out to capital Capital 3 309 Drawings 3 309 Drawings closed out to capital

General Ledger of L Tobruk



Expense Prepaid Land Balance 1 046 Balance 40 000

Buildings Accumulated Deprec – Building Balance 39 576 Balance 9 223

Machinery & Equipment Accumulated Deprec – Mach & Equip Balance 36 780 Balance 16 355

Bank Overdraft Accounts Payable Control Balance 4 120 Balance 5 632

GST Payable Expense Accrued Balance 4 300 Balance 4 862

Revenue Received in Advance Mortgage on Land & Buildings Balance 700 Balance 10 000

continued



511

Question 11.22b perpetual inventory continued (complete if question 11.22a was NOT done) General Ledger of L Tobruk continued




31 Dec 16 Cost of Goods Sold 51 520 31 Dec 16 Sales 167 761 Profit and Loss 116 241 167 761 167 761 Profit and Loss 31 Dec 16 Advertising 3 190 31 Dec 16 Trading 116 241 Sales Salaries 14 210 Bad Debts Recovered 1 428 Depreciation – Building 989 Rent Received 6 124 Deprec’n – Mach & Equip 5 517 Donations 240 Electricity 1 687 Insurance 2 984 Office Salaries 26 411 Stationery 617 Bad Debts 452 Bank Charges 178 Doubtful Debts 475 Interest 2 115 Capital 64 728 123 793 123 793 Sales Bad Debts Recovered Trading 167 761 Balance 167 761 Profit & Loss 1 428 Balance 1 428

Rent Received Cost of Goods Sold Profit & Loss 6 124 Balance 6 124 Balance 51 520 Trading 51 520

Advertising Sales Salaries Balance 3 190 Profit & Loss 3 190 Balance 14 210 Profit & Loss 14 210

Depreciation – Building Depreciation – Machinery & Equipment Balance 989 Profit & Loss 989 Balance 5 517 Profit & Loss 5 517

Donations Electricity Balance 240 Profit & Loss 240 Balance 1 687 Profit & Loss 1 687

Insurance Office Salaries Balance 2 984 Profit & Loss 2 984 Balance 26 411 Profit & Loss 26 411

Stationery Bad Debts Balance 617 Profit & Loss 617 Balance 452 Profit & Loss 452

continued



512


General Ledger of L Tobruk continued Bank Charges Doubtful Debts


Interest


Income Statement of L Tobruk for the year ended 31 December 2016


Bad Debts Recovered 1 428 Rent Received 6 124 7 552


Advertising 3 190 Sales Salaries 14 210 17 400

General & Administrative Depreciation – Building 989 Depreciation – Machinery & Equipment 5 517 Donations 240 Electricity 1 687 Insurance 2 984 Office Salaries 26 411 Stationery 617 38 445

Financial and Borrowing Bad Debts 452 Bank Charges 178 Doubtful Debts 475 Interest 2 115 3 220





513

Question 11.23a periodic inventory applies BS CL Ac Pay BS CA Ac Rec BS NCA Ac Dp MV BS NCA Ac Dp OE PL GA Adm Salar PL SD Advtg BS CA All Dt Debt PL FB Bd Det BS CL Bnk O/d BS OE Cap T CoGS Crt Inw T CoGS Cus Duty PL FB Det Coll PL SD Deliv Cost PL SD De Sal MV PL GA Dep OE PL FB Disc All PL FB Dbt Det BS OE Draw BS CL Exp Accr BS CA Exp Prep BS NCA Gov Bnds BS CA GST Rec BS CL GST Pay PL GA Insur PL OR Int Rec T CoGS Invent BS NCL Loan BS NCA Mot Veh BS NCA Off Equip PL GA Off Exp PL FB Od Ln Int T CoGS Purch PL GA Rent PL OR Rent Rec BS CA Rev Accr

BS CL Rv Rc Adv T R Sale PL SD Sal Salar BS CA Invent (T CoGS Invent)

Income Statement of H Joshua

for the 6 months ended 30 June 2016


Inventory 6 150 Cartage Inwards 1 364 Customs Duty 8 838 Purchases 64 905 Cost of goods available for sale 2 051 less Inventory 5 368 75 889


Interest Received 410 Rent Received 5 792 177 966

Total Revenue 108 279 less Operating Expenses Selling and Distribution

Advertising 1 800 Delivery Costs 3 110 Depreciation – Sales Motor Vehicles 9 227 Sales Salaries 37 221 6 202

General and Administrative Administrative Salaries 38 658 Depreciation – Office Equipment 4 357 Insurance 1 483 Office Expenses 2 736 Rent 10 894 6 202

Financial and Borrowing Bad Debts 1 097 Debt Collection 655 Discount Allowed 160 Doubtful Debts 350 Overdraft and Loan Interest 3 348 6 202 115 096

Net Loss (6 817)



514


Balance Sheet of H Joshua as at 30 June 2016

Current Assets Accounts Receivable Control 23 870 less Allowance for Doubtful Debts 1 100 22 770 Expense Prepaid 2 650 GST Receivable 2 340 Revenue Accrued 350 Inventory 5 368 33 478

Non-current Assets Motor Vehicles 61 900 less Accumulated Depreciation 4 000 57 900 Office Equipment 36 345 less Accumulated Depreciation 12 830 23 515 Government Bonds 28 000 109 415


Accounts Payable Control 3 685 Bank Overdraft 9 610 Expense Accrued 2 294 GST Payable 4 650 Revenue Received in Advance 985 21 224

Non-current Liabilities Loan 18 000

Total Liabilities 39 224 Net Assets 103 669

Owner’s Equity Capital 114 786 less Net Loss (6 817) 107 969 less Drawings 4 300



Extract Income Statement H Joshua for the 6 months ended 30 June 2016




515


Income Statement of H Joshua for the 6 months ended 30 June 2016


Interest Received 410 Rent Received 5 792 6 202

Total Revenue 108 279 less Operating Expenses Selling and Distribution

Advertising 1 800 Delivery Costs 3 110 Depreciation – Sales Motor Vehicles 9 227 Sales Salaries 37 221 51 358

General and Administrative Administrative Salaries 38 658 Depreciation – Office Equipment 4 357 Insurance 1 483 Office Expenses 2 736 Rent 10 894 58 128

Financial and Borrowing Bad Debts 1 097 Debt Collection 655 Discount Allowed 160 Doubtful Debts 350 Overdraft and Loan Interest 3 348 5 610 115 096

Net Loss (6 817)


Question 11.24a periodic inventory applies T CoGS Whfg Imp PL GA Wages T R Sale BS CL Rev Rc Ad

BS CA Rev Accr PL OR Rent Rev T CoGS Purch PL GA Prnt Post BS NCA Mot Veh PL GA M V Exp BS NCA Land T CoGS Invent PL FB Inter PL GA Insur BS CL GST Pay BS CA GST Rec BS CA Exp Prep BS CL Exp Accr PL GA Elect BS OE Draw PL FB Db Det PL GA Dep M V PL GA Dep Bldg PL SD Cust Del BS OE Cap BS NCA Bldg BS CL Bnk O/d BS NCL Bnk Mort BS CA All Dt Debt BS NCA Ac Dp MV BS NCA Ac Dp Bld BS CA Ac Rec BS CL Ac Pay Bal Day Adj BS CA Exp PreP (PL GA Insur) PL FB Int O/d (BS CL Exp Accr) PL OR Rent Rev (BS CL Rv Re Ad) BS CA Invent (T CoGS Invent)



516


General Journal of C Earnest GJ 1 30 Jun 16 Sales 278 600

Trading 278 600 Balance closed out to trading Trading 234 700 Inventory 36 950 Purchases 179 042 Wharfage and Other Import Costs 18 708 Balance closed out to trading Inventory 38 000 Trading 38 000 Closing inventory as per annual stocktake Trading 81 900 Profit and Loss 81 900 Gross profit closed out to profit and loss

Rental Revenue 9 730 Profit and Loss 9 730 Balance closed out to profit and loss

Profit and Loss 64 595 Customer Delivery 4 750 Wages 32 400 Printing & Postage 2 100 Motor Vehicle Expenses 2 870 Insurance 1 350 Electricity 4 900 Depreciation – Motor Vehicles 4 125 Depreciation – Buildings 2 900 Interest 8 000 Doubtful Debts 1 200 Balances transferred

Profit and Loss 27 035 Capital 27 035 Net profit transferred to capital Capital 17 500 Drawings 17 500 Drawings closed to capital



517 Question 11.24a continued (periodic inventory applies)

Income Statement of C Earnest for the year ended 30 June 2016


Inventory 36 950 Purchases 179 042 Wharfage and Other Import Costs 18 708 234 700 less Inventory 38 000 196 700


Rental Revenue 9 730 Total Revenue 91 630 less Expenses Selling & Distribution

Customer Delivery 4 750 General & Administrative

Wages 32 400 Printing & Postage 2 100 Motor Vehicle Expenses 2 870 Insurance 1 350 Electricity 4 900 Depreciation – Motor Vehicles 4 125 Depreciation – Buildings 2 900 50 645

Financial and Borrowing Interest 8 000 Doubtful Debts 1 200 9 200


Question 11.24b perpetual inventory applies Extract General Journal of C Earnest GJ 1

30 Jun 16 Sales 278 600 Trading 278 600 Balance transferred Trading 196 700 Cost of Goods Sold 196 700 Balance transferred Trading 81 900 Profit and Loss 81 900 Gross profit transferred to profit and loss

Extract Income Statement C Earnest





518

Question 11.24b perpetual inventory applies (complete if question 11.24a was NOT done) PL GA Wages T R Sale BS CL Rev Rc Ad BS CA Rev Accr PL OR Rent Rev PL GA Prnt Post BS NCA Mot Veh PL GA M V Exp BS NCA Land BS CA Invent PL FB Inter PL GA Insur BS CL GST Pay BS CA GST Rec BS CA Exp Prep BS CL Exp Accr PL GA Elect BS OE Draw PL FB Db Det PL GA Dep M V PL GA Dep Bldg PL SD Cust Del T CoGS CoGS BS OE Cap BS NCA Bldg BS CL Bnk O/d BS NCL Bnk Mort BS CA All Dt Debt BS NCA Ac Dp MV BS NCA Ac Dp Bld BS CA Ac Rec BS CL Ac Pay Bal Day Adj BS CA Exp PreP (PL GA Insur) PL FB Int O/d (BS CL Exp Accr) PL OR Rent Rev (BS CL Rv Re Ad) T CoGS CoGS (BS CA Invent) (BS CA GST Rec)

General Journal of C Earnest GJ . . 30 Jun 16 Sales 278 600

Trading 278 600 Balance closed out to trading Trading 196 700 Cost of Goods Sold [195 864 + 836) 196 700 Balance closed out to trading Trading 81 900 Profit and Loss 81 900 Gross profit closed out to profit and loss Rental Revenue [10 580 – 850] 9 730 Profit and Loss 9 730 Balance closed out to profit and loss Profit and Loss 64 595 Customer Delivery 4 750 Wages 32 400 Printing & Postage 2 100 Motor Vehicle Expenses 2 870 Insurance [1750 – 400] 1 350 Electricity 4 900 Depreciation – Motor Vehicles 4 125 Depreciation – Buildings 2 900 Interest [7250 + 750] 8 000 Doubtful Debts 1 200 Balances transferred Profit and Loss 27 035 Capital 27 035 Net profit transferred to capital Capital 17 500 Drawings 17 500 Drawings closed to capital



519 Question 11.24b perpetual inventory applies (complete if question 11.24a was NOT done)

Income Statement of C Earnest for the year ended 30 June 2016

Revenue Sales 278 600 less Cost Of Goods Sold 196 700 Gross Profit 81 900 add Other Revenue

Rental Revenue 9 730 Total Revenue 91 630 less Expenses Selling & Distribution

Customer Delivery 4 750 General & Administrative

Wages 32 400 Printing & Postage 2 100 Motor Vehicle Expenses 2 870 Insurance 1 350 Electricity 4 900 Depreciation – Motor Vehicles 4 125 Depreciation – Buildings 2 900 50 645

Financial and Borrowing Interest 8 000 Doubtful Debts 1 200 9 200



PL GA Acc Fee BS CL Ac Pay BS CA Ac Rec BS NCA Ac De Co BS NCA Ac De F F PL SD Advtg BS CA All Dt Debt PL FB Bd Det BS OE Cap BS CA Bank BS NCA Comput T CoGS Cus Dut PL GA De Comp PL GA De F & F PL OR Disc Rec BS OE Draw PL GA Elect BS NCA Fur & Fit BS CA GST Rec BS CL GST Pay PL GA Insur T CoGS Invent T CoGS Purch T CoGS Pu Ret All PL GA Salar Wag T R Sale T R Sal Ret All PL GA Stat Postg Bal Day Adjust BS CA Invent (T CoGS Invent) BS CA Exp Prep (PL SD Advtg) PL GA Salar Wag (BS CL Exp Accr) BS CA Rev Accr PL OR Comm Rev PL FB Dbt Det (BS CA All Dt Debt)



520


Income Statement of Dorothy McCoy for the year ended 30 June 2016


Inventory 7 300 Customs Duty 4 300

Purchases 41 500 Cost of goods available for sale 53 100 less Inventory 8 600 44 500


Discount Received 900 Commission Revenue 750 1 650



Accountancy Fees 1 900 Depreciation – Computers 6 000 Depreciation – Furniture and Fittings 4 600 Electricity 1 370 Insurance 7 800 Salaries and Wages 37 300 Stationery and Postage 2 150 61 120

Financial and Borrowing Bad Debts 1 400 Doubtful Debts 200 1 600




521

Question 11.25a continued (periodic inventory applies) Balance Sheet of Dorothy McCoy

as at 30 June 2016

Current Assets Accounts Receivable 19 800 less Allowance for Doubtful Debts 1 000 18 800 Cash at Bank 22 350 GST Receivable 1 550 Inventory 8 600 Expense Prepaid 450 Revenue Accrued 750 52 500

Non-current Assets Computers 18 000 less Accumulated Depreciation 11 000 7 000 Furniture and Fittings 35 000 less Accumulated Depreciation 18 600 16 400 23 400


Accounts Payable Control 8 800 GST Payable 3 000 Expense Accrued 2 300




Question 11.25b perpetual inventory applies Extract Income Statement Dorothy McCoy



Question 11.25b complete if question 11.25a was NOT done PL GA Acc Fee BS CL Ac Pay BS CA Ac Rec BS NCA Ac De Co BS NCA Ac De F F PL SD Advtg BS CA All Dt Debt PL FB Bd Det BS OE Cap BS CA Bank BS NCA Comput T CoGS CoGS PL GA De Comp PL GA De F & F PL OR Disc Rec BS OE Draw PL GA Elect BS NCA Fur & Fit BS CA GST Rec BS CL GST Pay PL GA Insur BS CA Invent PL GA Salar Wag T R Sale T R Sal Ret All PL GA Stat Postg Bal Day Adjust T CoGS CoGS (BS CA Invent) (BS CA GST Rec)

BS CA Exp Prep (PL SD Advtg) PL GA Salar Wag (BS CL Exp Accr) BS CA Rev Accr PL OR Comm Rev PL FB Dbt Det (BS CA All Dt Debt)




Income Statement of Dorothy McCoy for the year ended 30 June 2016


Discount Received 900 Commission Revenue 750 1 650



Accountancy Fees 1 900 Depreciation – Computers 6 000 Depreciation – Furniture and Fittings 4 600 Electricity 1 370 Insurance 7 800 Salaries and Wages 37 300 Stationery and Postage 2 150 61 120

Financial and Borrowing Bad Debts 1 400 Doubtful Debts 200 1 600



Question 11.26a periodic inventory applies BS CL Ac Pay BS CA Ac Rec BS NCA Ac Dp Co BS NCA Ac Dp Eq BS CA All Dt Debt PL FB Bd Det PL FB Bnk Chg BS NCL Bnk Loan BS CL Bnk O/d BS OE Cap BS NCA Comp PL FB Db Det BS OE Draw BS NCA Equip PL SD Frt C Outw BS CA GST Rec BS CL GST Pay PL GA Insur PL FB Int Od Lon T CoGS Invent T CoGS Inw Frt PL GA Off Rep T CoGS Purch T R Sale

PL SD Sal Comm PL GA Stat Prnt PL GA Tphone PL GA Wage Bal Day Adjust BS CA Invent (T CoGS Invent) BS CA Exp PreP (PL GA Insur) PL GA Dep Comp (BS NCA Ac Dp Co) PL GA Dep Eq (BS NCA Ac Dp Eq) PL FB Bd Det BS CL GST Pay (BS CA Ac Rec) PL FB Dbt Det (BS CA All Dt Debt) PL FB Int O/d (BS CL Exp Accr) PL GA Station (BS CL Exp Accr) PL GA Wage (BS CL Exp Accr)



523


Income Statement of D Robert for the year ended 30 June 2016


Inventory 3 715 Inwards Freight 1 763 Purchases 20 290 Cost of goods available for sale 25 768 less Inventory 3 550 22 218


Freight and Cartage Outwards 2 675 Sales Commission 2 983 5 658

General and Administrative Insurance 1 402 Office Repairs 190 Stationery and Printing 3 993 Telephone 3 052 Wages 21 620 Depreciation – Computer 11 700 Depreciation – Equipment 3 400 45 357

Financial and Borrowing Bad Debts 1 944 Bank Charges 343 Doubtful Debts 830 Interest on Overdraft and Loan 3 578 6 695 57 710

Net Profit 4 684



524


Balance Sheet of D Robert as at 30 June 2016

Current Assets Acc’nts Receivable Control [26 323 – 737] 25 586 less Prov’n for Doubtful Debts [750 + 550] 1 300 24 286 GST Receivable [849 – 9] 840 Inventory [3640 – 90] 3 550 Expense Prepaid 573 29 249

Non-current Assets Computer 35 168 less Accum Depreciation [8169 + 11 700] 19 869 15 299 Equipment 25 875 less Accum Depreciation [2853 + 3400] 6 253 19 622 34 921


Accounts Payable Control 8 217 Bank Overdraft 6 371 GST Payable [2100 – 67] 2 033 Expense Accrued [786 + 285 + 850] 1 921 18 542

Non-current Liabilities Bank Loan 16 000

Total Liabilities 34 542 Net Assets 29 628




Extract Income Statement of D Robert for the year ended 30 June 2016




525

Question 11.26b perpetual inventory continued (complete if question 11.26a was NOT done) BS CL Ac Pay BS CA Ac Rec BS NCA Ac Dp Co BS NCA Ac Dp Eq BS CA All Dt Debt PL FB Bd Det PL FB Bnk Chg BS NCL Bnk Loan BS CL Bnk O/d BS OE Cap BS NCA Comp T CoGS CoGS PL FB Db Det BS OE Draw BS NCA Equip PL SD Frt C Outw BS CA GST Rec BS CL GST Pay PL GA Insur PL FB Int Od Lon

BS CA Invent PL GA Off Rep T R Sale PL SD Sal Comm PL GA Stat Prnt PL GA Tphone PL GA Wage Bal Day Adjust T CoGS CoGS (BS CA Invent) (BS CA GST Rec)

BS CA Exp PreP (PL GA Insur) PL GA Dep Comp (BS NCA Ac Dp Co) PL GA Dep Eq (BS NCA Ac Dp Eq) PL FB Bd Det BS CL GST Pay (BS CA Ac Rec) PL FB Dbt Det (BS CA All Dt Debt) PL FB Int O/d (BS CL Exp Accr) PL GA Station (BS CL Exp Accr) PL GA Wage (BS CL Exp Accr)

Income Statement of D Robert


Revenue Sales 84 612 less Cost of Goods Sold [22 119 + 99] 22 218 Gross Profit 62 394 less Expenses Selling and Distribution

Freight and Cartage Outwards 2 675 Sales Commission 2 983 5 658

General and Administrative Insurance [1975 – 573] 1 402 Office Repairs 190 Stationery and Printing [3 708 + 285] 3 993 Telephone 3 052 Wages [20 770 + 850] 21 620 Depreciation – Computer 11 700 Depreciation – Equipment 3 400 45 357

Financial and Borrowing Bad Debts [1274 + 670] 1 944 Bank Charges 343 Doubtful Debts [((26 323 – 737)*.05)=1300 – 750 + 280]

830

Interest on Overdraft and Loan [2792 + 786] 3 578 6 695 57 710 Net Profit 4 684




526

Question 11.27a periodic inventory applies BS CL Ac Pay BS CA Ac Rec BS NCA Ac Dp P M BS CA All Dt Debt PL FB Bd Det BS CL Bnk O/d BS OE Cap BS CA Cash Hnd PL OR Disc Rec PL FB Dbt Det BS OE Draw BS CL Exp Acc S BS CA Exp Prep I T CoGS Frt Inw PL SD Frt Outw BS CA GST Rec BS CL GST Pay PL GA Insur PL FB Int O/d T CoGS Invent BS NCA Inv Shr BS NCL Mort Prem BS NCA Plt Mach PL GA Post BS NCA Premis T CoGS Purch PL OR Rnt Rec PL GA Salar T R Sale PL GA Stat Pcop Bal Day Adjust

BS CL Exp Accr (PL GA Salar) PL GA Insur (BS CA Exp PreP) BS CA Invent (T CoGS Invent) PL FB Int O/d (BS CL Exp Accr) BS CA Exp PreP (PL GA Insur) PL GA Salar (BS CL Exp Accr) PL OR Rent Rec (BS CL Rv Re Ad) PL FB Bd Det BS CL GST Pay (BS CA Ac Rec) PL FB Dbt Det (BS CA All Dt Debt) PL GA Dep Prem (BS NCA Ac Dp Pr) PL GA Dep P M (BS NCA Ac Dp PM)

Income Statement of Mary Doggett



Inventory 6 145 Freight Inwards 3 477 Purchases 84 604 94 226 less Inventory 7 824 86 402


Discount Received 776 Rent Received 10 730 11 506


Freight Outwards 4 022 General & Administrative

Insurance 8 040 Postage 1 639 Salaries 60 415 Stationery and Photocopying 3 887 Depreciation – Premises 1 107 Depreciation – Plant & Machinery 7 660 82 748

Financial and Borrowing Bad Debts 1 772 Doubtful Debts 385 Interest on Overdraft 4 081 6 238




527


Balance Sheet of Mary Doggett as at 31 December 2016

Current Assets Cash on Hand 400 Accounts Receivable Control 23 386 less Allowance for Doubtful Debts 500 22 886 GST Receivable 2 700 Inventory 7 824 Expense Prepaid 3 600 37 410

Non-current Assets Plant and Machinery 38 300 less Accumulated Depreciation 23 560 14 740 Premises 55 350 less Accumulated Depreciation 1 107 54 243 Investment in Shares 9 900 78 883


Bank Overdraft 11 909 Accounts Payable Control 8 569 Expense Accrued [320 + 1600] 1 920 GST Payable [5500 – 48] 5 452 Revenue Received in Advance 900 28 750

Non-current Liabilities Mortgage on Premises 40 000 less Total Liabilities 68 750

Net Assets 47 543




Extract Income Statement of Mary Doggett for the year ended 31 December 2016




528

Question 11.27b perpetual inventory applies (complete if question 11.27a was NOT done) BS NCL Mort Prem PL FB Bd Det BS CL Bnk O/d BS OE Cap BS CA Cash Hnd BS CL Ac Pay BS CA Ac Rec T CoGS CoGS PL OR Disc Rec PL FB Dbt Det BS OE Draw BS CL Exp Acc S BS CA Exp Prep I PL SD Frt Outw BS CA GST Rec BS CL GST Pay PL GA Insur PL FB Int O/d BS CA Invent BS NCA Inv Shr BS NCA Plt Mach BS NCA Ac Dp P M PL GA Post BS NCA Premis BS CA All Dt Debt PL OR Rnt Rec PL GA Salar T R Sale PL GA Stat Pcop Bal Day Adjust BS CL Exp Accr (PL GA Salar) PL GA Insur (BS CA Exp PreP) T CoGS CoGS (BS CA Invent) (BS CA GST Rec) PL FB Int O/d (BS CL Exp Accr) BS CA Exp PreP (PL GA Insur) PL GA Salar (BS CL Exp Accr) PL OR Rent Rec (BS CL Rv Re Ad) PL FB Bd Det BS CL GST Pay (BS CA Ac Rec) PL FB Dbt Det (BS CA All Dt Debt) PL GA Dep Prem (BS NCA Ac Dp Pr) PL GA Dep P M (BS NCA Ac Dp PM)

Income Statement of Mary Doggett


Revenue

Sales 208 841 less Cost of Goods Sold 86 402



Rent Received 10 730 11 506





Insurance 8 040

Postage 1 639

Salaries 60 415

Stationery and Photocopying 3 887

Depreciation – Premises 1 107

Depreciation – Plant & Machinery 7 660 82 748

Financial and Borrowing Bad Debts 1 772

Doubtful Debts 385



Net Profit 40 937




529

Question 11.28a periodic inventory applies BS CA Ac Rec BS CA All Dt Debt T CoGS Invent BS CA Exp Prep I BS CA Rev Acc G BS CL GST Pay BS NCA Land BS NCA Bldg BS NCA Mot Veh BS NCA Acc Dp MV BS NCA Govt Bnd BS CL Bnk O/d BS CL Ac Pay BS CL Exp Acr W BS CL Rv RcAd R BS NCL Mort Land BS OE Cap BS CA GST Rec BS OE Draw T R Sale PL OR Rent Rec PL OR Int Rec T CoGS Purch PL SD Frt Outw PL SD Advtg PL GA Wage PL GA Elect PL GA Insur PL FB Bnk Chg PL FB Bd Det PL FB Db Det PL FB Disc All PL FB Int O/d PL FB Int Mort Bal Day Adjust PL GA Insur (BS CA Exp Prep I) PL OR Int Recd (BS CA RevAcc G) BS CL Exp Acc W (PL GA Wage) BS CL RvRc Ad R (PL OR Rent Rec) BS CA Invent (T CoGS Invent) PL GA Wage (BS CL Exp Accr) PL OR Rent Rec (BS CL RvRc Adv) BS CA Exp Prep (PL GA Insur) PL FB Int Mort (BS CL Exp Accr) PL GA Dep Bldg (BS NCA Ac Dp Bld) PL GA Dep M V (BS NCA Ac Dp MV) PL FB Db Det (BS CA All Dt Debt)

Income Statement of R Abercrombie



less Cost of Goods Sold Inventory 15 630 Purchases 79 331 94 961 less Inventory 16 455 78 506


Rent Received 10 650 Interest Received 1 350 12 000


Freight Outwards 744 Advertising 2 115 2 859

General and Administrative Wages 55 756 Electricity 2 748 Insurance 925 Depreciation – Building 3 884 Depreciation – Motor Vehicle 5 505 68 818

Financial and Borrowing Bank Charges 247 Bad Debts 898 Doubtful Debts 391 Discount Allowed 1 427 Interest on Overdraft 4 715 Interest on Mortgage 5 400 13 078

Total Expenses 84 755 37 856



530


Balance Sheet of R Abercrombie as at 30 June 2016

Current Assets Accounts Receivable Control 23 639 less Allowance for Doubtful Debts 591 23 048 Inventory 16 455 Expense Prepaid 310 GST Receivable 2 050 41 863

Non-current Assets Land 75 000 Buildings 97 100 less Accumulated Depreciation 3 884 93 216 Motor Vehicle 36 700 less Accumulated Depreciation 19 267 17 433 Government Bonds 15 000 200 649


GST Payable 4 800 Bank Overdraft 24 819 Accounts Payable Control 13 222 Expense Accrued 3 000 Revenue Received in Advance 850 46 691

Non-current Liabilities Mortgage on Land 45 000





Extract Income Statement of R Abercrombie for the year ended 30 June 2016




531

Question 11.28b perpetual inventory applies (complete if question 11.28a was NOT done) BS CA Ac Rec BS CA All Dt Debt BS CA Invent BS CA Exp Prep I BS CA Rev Acc G BS CL GST Pay BS NCA Land BS NCA Bldg BS NCA Mot Veh BS NCA Acc Dp MV BS NCA Govt Bnd BS CL Bnk O/d BS CL Ac Pay BS CL Exp Acr W BS CL Rv RcAd R BS NCL Mort Land BS OE Cap BS CA GST Rec BS OE Draw T R Sale PL OR Rent Rec PL OR Int Rec T CoGS CoGS PL SD Frt Outw PL SD Advtg PL GA Wage PL GA Elect PL GA Insur PL FB Bnk Chg PL FB Bd Det PL FB Db Det PL FB Disc All PL FB Int O/d PL FB Int Mort Bal Day Adjust PL GA Insur (BS CA Exp Prep I) PL OR Int Recd (BS CA RevAcc G) BS CL Exp Acc W (PL GA Wage) BS CL RvRc Ad R (PL OR Rent Rec) PL GA Wage (BS CL Exp Accr) PL OR Rent Rec (BS CL RvRc Adv) BS CA Exp Prep (PL GA Insur) PL FB Int Mort (BS CL Exp Accr) PL GA Dep Bldg (BS NCA Ac Dp Bld) PL GA Dep M V (BS NCA Ac Dp MV) PL FB Db Det (BS CA All Dt Debt)

Income Statement of R Abercrombie



Rent Received 10 650 Interest Received 1 350 12 000


Freight Outwards 744 Advertising 2 115 2 859

General and Administrative Wages 55 756 Electricity 2 748 Insurance 925 Depreciation – Building 3 884 Depreciation – Motor Vehicle 5 505 68 818

Financial and Borrowing Bank Charges 247 Bad Debts 898 Doubtful Debts 391 Discount Allowed 1 427 Interest on Overdraft 4 715 Interest on Mortgage 5 400 13 078





532

Question 11.29 BS NCA 6% Bonds BS CA Acc Dp OF BS CA Equip BS CA Acc Dp SE BS CA Bank BS OE Capital BS CA Cash BS CL Ac Pay BS CA Ac Rec BS OE Draw PL E Elect PL R Fee Inc PL E Insur BS CA OFE PL E Post PL E Drug Dres PL E Fil Mat PL E Rent PL E Sal Nurse PL E Sal Recep PL E Station BS CA Inv Drugs BS CA Inv Fil Mat BS CA GST Rec BS CL GST Pay BS NCA Surg Equ PL E Teleph Bal Day Adjust BS CA Inv Drug (PL E Inv Drug) BS CA Inv Fil Mat (PL E Inv Fil Mat) PL E Dep SE (BS NCA Ac Dp SE) PL E Dep OFE (BS NCA Ac Dp OFE) PL E Sal Nurse (BS CL Exp Accr) PL E Sal Recep (BS CL Exp Accr) PL E Rent (BS CA ExpPrep R) PL E Insur (BS CA Exp Prep I) PL R Int Recd (BS CA RevAcc G) PL E Dt Debt (BS CA All Dt Debt)

Income Statement of L Tuggerah


Revenue Fees Income 352 144 Interest Income – Telstra Bonds 2 700 Total Revenue 354 844 less Expenses

Cost of drugs and dressings used Inventory 1 July 2015 2 344 Purchases drugs and dressings 4 716 7 060 less Inventory 30 June 2016 2 088 4 972

Cost of filling and materials used Inventory 1 July 2015 3 396 Purchases of filling and materials 9 864 13 260 less Inventory 30 June 2016 3 792 9 468

Electricity 3 340 Insurance 1 572 Postage 380 Rent Expense 17 480 Salary – dental nurse 55 312 Salary – receptionist 50 800 Stationery 872 Telephone 1 672 Depreciation surgery equipment 7 960 Depreciation office furniture and equipment 732 Bad Debts 1 416 Doubtful Debts Expense 475




533

Question 11.29 Balance Sheet of L Tuggerah

as at 30 June 2016

Current Assets Bank 29 416 Cash in hand 500 Accounts Receivable Control 31 664 less Allowance for Doubtful Debts 475 31 189 Inventory -drugs and dressing 2 088 Inventory – filling and materials 3 792 Expense Prepaid 4 220 Accrued interest income 2 700 GST Receivable 2 000 75 905

Non-current Assets Office Furniture and Equipment 12 304 less Accumulated Depreciation 9 344 2 960 Surgery Equipment 167 556 less Accumulated Depreciation 54 880 112 676 6% pa Telstra Bonds 108 000 223 636


GST Payable 500 Accounts Payable Control 2 436 Expense Accrued 1 640 4 576







534

Question 11.30 BS CA Acc Rec BS CA All Dt Debt BS CA Inv TF BS CA Inv OBS BS CA Exp Prepd BS NCA Pl & Equip

BS NCA Acc Dp PE BS NCA Mot Veh

BS NCA Acc Dp MV BS CA GST Rec BS CL Bank O/D

BS CL Ac Pay BS CL Exp Ac SB BS CL Exp Ac SO BS CL GST Pay BS OE Cap BS OE Draw PL R Inc RE PL R Inc NC PL E Pur TF PL E Pur PBS

PL E Advtg PL E Sal BA PL E Hire Equip

PL E Subcont PL R Disc Rev PL E Sal Off PL E Insur PL E Elec PL E Tel PL E Station PL E Int Mortg PL E Bad Debts Bal Day Adjust (BS CA Exp Pre) (PL E Insu) (BS CL Exp Acc S) (PL E Sal BA) (BS CL Exp Ac S) (PL E Sal O) (PL GA Wage) BS CA Inv TF PL E Inv TF) BS CA Inv OBS PL

E Inv OBS PL E Dep PE (BS NCA Ac Dp PE)

PL E Dep M V (BS NCA Ac Dp MV) PL E Sal BA BS CL Exp Accr PL E Sal Off BS CL Exp Accr PL E Int Exp PL E Bad Debt BS CA Acc Rec PL E Doub Debt BS CA All Dt Debt

Balance Sheet of L Eucumbene as at 30 June 2016

Current Assets Accounts Receivable Control 142 428 less Allowance for Doubtful Debts 2 849 139 579 Inventory –timbers and frames 14 188 Inventory – other building materials 4 712 GST Receivable 11 400 169 879

Non-current Assets Plant and Equipment 30 392 less Accumulated Depreciation 13 676 16 716 Motor Vehicles 142 732 less Accumulated Depreciation 85 828 56 904 73 620


Bank Overdraft 14 340 Accounts Payable Control 24 188 GST Payable 12 800 Expense Accrued 3 020 54 348






535

Question 11.30 continued Income Statement of L Eucumbene


Revenue Income – Renovations and Extensions 691 264 Income – New Construction 172 816 Discount received 2 928 Total Revenue 867 008 less Expenses

Cost of timber and frames used Inventory 1 July 2016 12 284 Purchases timber and frames 195 472 207 756 less Inventory 30 June 2016 14 188 193 568

Cost of other building materials Inventory 1 July 2015 9 160 Purchases of other building materials 107 340 116 500 less Inventory 30 June 2016 4 712 111 788

Salary – Builders and Apprentices 261 140 Salary – Office 77 632 Hire of Equipment 11 512 Subcontractor Expenses 93 420 Advertising 10 908 Insurance 13 076 Electricity 6 208 Telephone 3 976 Stationery 980 Interest on Overdraft 2 480 Bad Debt 14 424 Depreciation on Plant and Equipment $3 040 3 040 Depreciation on Motor Vehicles $21 600 21 600 Doubtful Debts 2 849




536 Question 11.31

General Journal of R Cudgegong GJ 1 30 Sep 16 Accounts Payable Control 462

a – D Cordeaux 462 Accounts Payable Control 462 – D Cataract 462 Correction of posting from PD journal for D Cataract

b Accounts Payable Control [319 – 913] 594 – L Burragorang 594 Purchases [290 – 830] 540 GST Receivable [29 – 83] 54 Correction of entry should be $319 was $913

b (alternative solution) Accounts Payable Control 913 – L Burragorang 913 Purchases 830 GST Receivable 83 Reversal of error in processing L Burragorang invoice Purchases 290 GST Receivable 29 Accounts Payable Control 319 – L Burragorang 319 Correct entry for L Burragorang inventory purchase

c Repairs and Maintenance 1 605 Office Equipment 1 605 Correction of a/c allocation to repairs & maintenance

d Stationery 200 Photocopying 160 Advertising 570 Expense Accrued 930 Accrual of September expenses

Question 11.32a General Journal of . . . GJ . .

30 Jun 16 Motor Vehicles 24 000 Office Repairs 24 000 Correction of account allocation to motor vehicles Discount Received 70 GST Receivable 7 Accounts Payable Control 77 – Bel Kno 77 Discount received taken was not allowed by supplier Bad Debts Recovered 374 Accounts Receivable Control 374 – Yu Who Too 374 Correction of incorrect a/c allocation to bad debt recov No journal entry required but a phone call would be appropriate to advise that the

discount had not been allowed



537

Question 11.32b

Trial Balance of W T Pooh as at 30 June 2016

Accounts Payable Control 3 000 Accounts Receivable Control 10 000 Accumulated Depreciation – Office Equipment 17 000 Bad Debts 2 100 Bad Debts Recovered 1 500 Bank Overdraft 4 100 Capital 30 000 Depreciation – Office Equipment 6 000 GST Receivable 1 000 GST Payable 2 000 Inventory 7 100 Office Equipment 40 000 Office Expenses 3 400 Purchases 20 000 Salaries 18 000 Sales 50 000 107 600 107 600

Question 11.33

Pro forma not requested by question but may be helpful in obtaining the correct answer

Pro Forma General Journal of A H Coramba Accounts Payable Control 40.26

– Vic Hair 40.26 Purchases 36.60 GST Receivable 3.66 Entry SHOULD have been

Sales 24.00 GST Payable 2.40 Accounts Receivable Control 26.40 – Vince Hare 26.40 Erroneously the entry WAS

General Journal of A H Coramba GJ . .

a 1 Accounts Payable Control 40.26 – Vic Hair 40.26 Accounts Receivable Control 26.40 – Vince Hare 26.40 Purchases 36.60 GST Receivable 3.66 Sales 24.00 GST Payable 2.40 Correction of error IS

continued



538


General Journal of A H Coramba continued GJ . . a 2 Accounts Receivable Control 26.40

– Vince Hare 26.40 Sales 24.00 GST Payable 2.40 Reversal of error in credit note processed as Vince Hare Accounts Payable Control 40.26 – Vic Hair 40.26 Purchases 36.60 GST Receivable 3.66 Correct entry for credit note from Vic Hair

b Discount Received 27.00 GST Receivable 2.70 Accounts Payable Control 29.70 – Terry Johnson 29.70 Discount not allowed by creditor now reversed

Question 11.34

General Journal of T O Dorrigo GJ . . a Office Equipment 17 620

Purchases 17 620 Correction of account allocation for new photocopier b Rates 950

Expense Accrued 7 990 Expense Prepaid 950 Wages 7 990 Reversal of previous balance day adjustments


Pro Forma General Journal of T O Dorrigo Accounts Receivable Control 4 499

Sales 3 070 GST Payable 409 Office Equipment 1 020 Entry SHOULD have been

Sales 3 070 GST Payable 409 Office Equipment 1 020 Accounts Receivable Control 4 499 Erroneously the entry WAS



539

Question 11.34 continued General Journal of T O Dorrigo GJ . .

c 1 Accounts Receivable Control [4499 + 4499] 8 998 Sales [3070 + 3070] 6 140 GST Payable [409 + 409] 818 Office Equipment [1020 + 1020] 2 040 Correction of error IS

c 2 Accounts Receivable Control 4 499 Sales 3 070 GST Payable 409 Office Equipment 1 020 Reversal of error in posting of sales distribution journal Accounts Receivable Control 4 499 Sales 3 070 GST Payable 409 Office Equipment 1 020 Correction of error in posting of sales distribution journal

Question 11.35 General Journal of A V Kingfisher GJ . .

a Freight Inwards 50 Office Expenses 50 Correction of courier charges to freight inwards

b Wages [7000 + 7000] 14 000 Expense Accrued 14 000 Accrual and correction of wages accrual of $7000

c Insurance [500 + 500] 1 000 Insurance Prepaid 1 000 Monthly entry $500 and correction of insurance $500

d Rent Received [2000 + 2000] 4 000 Revenue Received in Advance 4 000 Balance day adjustment and correction of rent received


Pro Forma General Journal of A V Kingfisher Purchases 580 GST Receivable 58 Accounts Payable Control 638 What the entry should have been

Purchases 760 GST Receivable 76 Accounts Payable Control 836 Erroneously what the entry was

Purchases [580 – 760] 180 GST Receivable [58 – 76] 18 Accounts Payable Control [638 – 836] 198 Correction of error but debits are not first



540

Question 11.35 continued General Journal of A V Kingfisher GJ . .

e 1 Accounts Payable Control [638 – 836] 198 Purchases [580 – 760] 180 GST Receivable [58 – 76] 18 Correction of error

e 2 Accounts Payable Control 836 Purchases 760 GST Receivable 76 Reversal of incorrect entry for S Ocean

Purchases 580 GST Receivable 58 Accounts Payable Control 638 Correct entry for purchase from S Ocean

Question 11.36

General Journal of D R Kookaburra GJ . . a Rent 869

Rates 869 Correction of cash payments allocation error for rent


Pro Forma General Journal of D R Kookaburra Purchases 7 530 GST Receivable 753 Accounts Payable Control 8 283 – C King 8283 What the entry should have been

Purchases 3 480 GST Receivable 348 Accounts Payable Control 3 828 – C King 3828 Erroneously what the entry was

General Journal of D R Kookaburra GJ . .

b 1 Purchases [7530 – 3480] 4 050 GST Receivable [753 – 348] 405 Accounts Payable Control [8283 – 3828] 4 455 – C King 4455 Correction of error b 2 Accounts Payable Control 3 828 – C King 3828 Purchases 3 480 GST Receivable 348 Reversal of incorrect entry for C King

continued



541


General Journal of D R Kookaburra continued GJ . . b 2 Purchases 7 530 cont. GST Receivable 753 Accounts Payable Control 8 283 – C King 8283 Correct entry for C King

c Sales 820 Rent Received 820 Correction of allocation for rent received

d Purchases 200 Inventory 200 Correction for goods taken by owner

Question 11.37

General Journal of P L Lorikeet GJ . . a Bank [6045 + 6045] 12 090

Discount Allowed [50 + 50] 100 Accounts Receivable Control [5000 + 5000] 10 000 Sales [1000 + 1000] 2 000 GST Payable [95 + 95] 190 Accounts impacted in CR journal correction

b Accounts Payable Control 2 860 – L Lilypool 2860 Accounts Payable Control 2 860 – L Liverpool 2860 Correction of allocation of payment to L Lilypool

c Maintenance of Office Equipment 630 Office Equipment 630 Correction of error on photocopier service/repair

d Bank 6 699 Accounts Receivable Control 6 699 – W Melaleuca 6699 How entry would have appeared in Cash Receipts journal

Question 11.38

General Journal of C R Sherwood GJ . . a Discount Received 90

GST Receivable 9 Accounts Payable Control 99 – L Jacaranda 99 Reversal of discount not allowed by supplier




Pro forma not requested by question but may be helpful in obtaining the correct answer b 1 Pro Forma General Journal of C R Sherwood Stationery 2 350 GST Receivable 235 Accounts Payable Control 2 585 – P Peppermint 2585 What the entry should have been

Stationery 4 800 GST Receivable 480 Accounts Payable Control 5 280 – P Peppermint 5280 Erroneously what the entry was

Stationery [2350 – 4800] 2 450 GST Receivable [235 – 480] 245 Accounts Payable Control [2585 – 5280] 2 695 – P Peppermint 2695 Correction of error but debits are not first

General Journal of C R Sherwood GJ . . b 1 Accounts Payable Control [2585 – 5280] 2 695 – P Peppermint 2695 Stationery [2350 – 4800] 2 450 GST Receivable [235 – 480] 245 Correction of error b 2 Accounts Payable Control 5 280 – P Peppermint 5280 Stationery 4 800 GST Receivable 480 Reversal of incorrect entry for P Peppermint Stationery 2 350 GST Receivable 235 Accounts Payable Control 2 585 – P Peppermint 2585 Correct entry for P Peppermint

c Vehicle Expenses 1 640 Motor Vehicles 1 640 Correction of forklift service allocation

d Accounts Payable Control 9 097 – C Darning 9097 Accounts Receivable Control 9 097 – C Darling 9097 Correction cash received from a/c receivable C Darling



543 Question 11.39

General Journal of C Tallawudjah GJ . . a 3 Sales 2 700 GST Payable 270 Accounts Receivable Control 2 970 – S Rivers 2970 b 2 Discount Received 500 Profit and Loss 500 c 3 Computers 4 600 Purchases 4 600 d 4 Purchases 4 520 GST Receivable 198 Accounts Payable Control 2 178 Import Costs 2 540



544

Chapter 12 Accounting for non-current assets Question 12.1 Across: 3 expense; 4 non-current; 7 depreciation; 8 carrying amount; 9 useful life; 10 matching; 11 accumulated depreciation; 12 residual value; 13 balance sheet Down: 1 depreciable amount; 2 profit and loss; 5 installation; 6 income statement

Question 12.2 a An asset register, which includes motor vehicles, would show the costs of servicing and

running costs of each vehicle. False b The asset register includes accounts receivable balances as they are also assets. False c An asset sheet or card in the asset register shows the cost, residual value and the rate

of depreciation per annum. True d The asset listing total can differ from the general ledger value by the average of the

depreciation percentages +/– 5% False e The accumulated depreciation account is closed out to the profit and loss account at

the end of the accounting period False f The asset register ‘accounts payable &/or particulars’ and the asset costs include the

details and cost of site preparation, initial delivery and handling costs, installation costs and fees for architects and engineers as well as the purchase cost of the actual asset True

Question 12.3

William Dumbrell Asset Register – Office Furniture and Equipment General Ledger Account 157 – Office Furniture and Equipment Asset No. 23 – 34 Asset Type Group Office desks, chairs and filing cabinets Serial No. nil Supplier/Manufacturer Stylish Office Designs Residual Value nil Commission Date 1 May 2016 Economic life 10 years Depreciation Method Straight Line/Units of Use/Diminishing Balance (indicate) Rate p.a. 10%

Asset Costs Deprec’n & Carrying Amount Date Accounts Payable and/or

Particulars Ref Month Cumul-

ative Deprec for Year

Accum Deprec

Carrying Amount

1 May 16 Stylish Office Designs CP 15 000 15 000 30 Jun 16 Depreciation 2 months GJ 250 250 14 750 30 Jun 17 Depreciation for year GJ 1 500 1 750 13 250 30 Jun 18 Depreciation for year GJ 1 500 3 250 11 750



545

Question 12.4

Straight line depreciation method Asset: Equipment Asset cost including installation 21 990

less Residual value 1 000

= Depreciable amount $ 20 990

Rate p.a. 15% on depreciable amount Depreciation p.a. $3149

Date Asset Cost

Depreciation (current)

Accumulated Depreciation

Closing Carrying Amount

1 Jul 15 21 990

30 Jun 16 3 149 3 149 18 841

30 Jun 17 3 149 6 298 15 692

Extract General Ledger of . . . Equipment

1 Jul 15 Bank [payment] 21 990 Accumulated Depreciation – Equipment

30 Jun 16 Deprec’n – Equipment GJ. 3 149 30 Jun17 Deprec’n – Equipment GJ. 3 149

6 298

Depreciation – Equipment 30 Jun 16 Accum Depr – Equip’t GJ. 3 149 30 Jun 16 Profit and Loss GJ. 3 149

30 Jun 17 Accum Depr – Equip’t GJ. 3 149 30 Jun 17 Profit and Loss GJ. 3 149

Question 12.5

Straight line depreciation method Asset: Office Furniture and Fittings Asset cost including installation 3 780 less Residual value 0



Date Asset Cost




1 Jul 15 3 780

30 Jun 16 567 567 3 213

30 Jun 17 567 1 134 2 646



546

Question 12.5 continued Straight line depreciation method

Asset: Office Furniture and Fittings Asset cost including installation 31 560 less Residual value 3 000



Date Asset Cost Depreciation (current)



1 Jul 15 31 560

30 Jun 16 5 712 5 712 25 848

30 Jun 17 5 712 11 424 20 136

Extract General Journal of . . . GJ . . 30 Jun16 Depreciation – Office Furniture and Fittings 567

Depreciation – Motor Vehicle 5 712 Accum Deprec – Office Furniture & Fittings 567 Accumulated Depreciation – Motor Vehicle 5 712 Depreciation at balance date

30 Jun 17 Depreciation – Office Furniture and Fittings 567 Depreciation – Motor Vehicle 5 712 Accum Deprec – Office Furniture & Fittings 567 Accumulated Depreciation – Motor Vehicle 5 712 Depreciation at balance date

Question 12.6 Straight line depreciation method

Asset: Computer Asset cost including installation 17 300

less Residual value 0


Rate

25% on depreciable amount Depreciation p.a. $4325

Date Asset Cost




1 Jul 15 17 300

30 Jun 16 4 325 4 325 12 975

30 Jun 17 4 325 8 650 8 650

30 Jun 18 4 325 12 975 4 325

30 Jun 19 4 325 17 300 0



547


Extract General Ledger of . . . Computer

1 Jul 15 Bank [payment] 17 300

Accumulated Depreciation – Computer 30 Jun 16 Deprec’n – Computer GJ. 4 325

30 Jun 17 Deprec’n – Computer GJ. 4 325

8 650

Depreciation – Computer 30 Jun 16 Accum Depr – Computer GJ. 4 325 30 Jun 16 Profit and Loss GJ. 4 325

30 Jun 17 Accum Depr – Computer GJ. 4 325 30 Jun 17 Profit and Loss GJ. 4 325

Extract Income Statement of … for the year ended 30 June 2017

less Expenses General and Administrative Depreciation – Computer 4 325


Non-current Assets Computer 17 300 less Accumulated Depreciation 8 650 8 650 Question 12.7

1 Jul 15 30 Jun 16 30 Jun 17 30 Jun 18 12 months 12 months 1 Feb 16 (5 months to 30 Jun 16) Car purchase 31 Mar 16 (3 mths to 30 Jun 16) Truck purchase

Straight line depreciation method Asset: Motor Vehicle – car Asset cost including installation 33 000 less Residual value 3 000






1 Feb 16 33 000

30 Jun 16 2 500 2 500 30 500

30 Jun 17 6 000 8 500 24 500

30 Jun 18 6 000 14 500 18 500




Straight line depreciation method Asset: Motor Vehicle – truck Asset cost including installation 50 000 less Residual value 0

$ 50 000





31 Mar 16 50 000

30 Jun 16 1 875 1 875 48 125

30 Jun 17 7 500 9 375 40 625

30 Jun 18 7 500 16 875 33 125

Extract General Journal of . . . GJ . . 30 Jun 16 Depreciation – Motor Vehicle [2500 + 1875] 4 375

Accumulated Deprec – Motor Vehicle 4 375

Depreciation at balance date

30 Jun 17 Depreciation – Motor Vehicle [6000 + 7500] 13 500 Accumulated Deprec – Motor Vehicle 13 500 Depreciation at balance date

Question 12.8 1 Jul 15 30 Jun 16 30 Jun 17 30 Jun 18 30 Jun 19

12 months 12 months 31 Oct 15 (8 months to 30 Jun 16) 31 Oct 18 (4 months from 30 Jun 18) Computer purchase Computer fully depreciated

Straight line depreciation method Asset: Computer Asset cost including installation 4 950



Rate p.a. 33 1/3% on depreciable amount Depreciation p.a. $1650




31 Oct 15 4 950

30 Jun 16 1 100 1 100 3 850

30 Jun 17 1 650 2 750 2 200

30 Jun 18 1 650 4 400 550

30 Jun 19 550 4 950 0



549


Extract General Ledger of . . . Computer

31 Oct 15 Bank [payment] 4 950 Accumulated Depreciation – Computer

30 Jun 16 Deprec’n – Computer GJ. 1 100 30 Jun 17 Deprec’n – Computer GJ. 1 650 2 750 30 Jun 18 Deprec’n – Computer GJ. 1 650 4 400 30 Jun 19 Deprec’n – Computer GJ. 550 4 950

Depreciation – Computer




30 Jun 19 Accum Depr – Computer GJ. 550 30 Jun 19 Profit and Loss GJ. 550

Question 12.9 1 Jul 15 30 Jun 16 30 Jun 17

12 months

1 Aug 15 (11 mths to 30 Jun) 1 Apr 16 (3 mths to 30 Jun) Machinery purchase Machinery purchase 30 Nov 15 (7 mths to 30 Jun) Office Equipment purchase

Straight line depreciation method

Asset: Machinery – Machine 1 Asset cost including installation 17 290 less Residual value 0



Date Asset Cost




1 Aug 15 17 290

30 Jun 16 2 377 2 377 14 913

30 Jun 17 2 594 4 971 12 319



550


Straight line depreciation method Asset: Office Equipment Asset cost including installation 5 570 less Residual value 0

$ 5 570


Date Asset Cost




30 Nov 15 5 570

30 Jun 16 325 325 5 245

30 Jun 17 557 882 4 688

Straight line depreciation method Asset: Machinery – Machine 2 Asset cost including installation 3 780




Date Asset Cost




1 Apr 16 3 780

30 Jun 16 142 142 3 638

30 Jun 17 567 709 3 071

Extract General Journal of . . . GJ . . 30 Jun 16 Depreciation – Machinery [2377 + 142] 2 519 Depreciation – Office Equipment 325 Accumulated Depreciation – Machinery 2 519 Accumulated Depreciation – Office Equipment 325 Depreciation at balance date of purchases this year


as at 30 June 2017

Non-current Assets Machinery [17 290 + 3780] 21 070 less Accumulated Deprec [4971 + 709] 5 680 15 390 Office Equipment 5 570 less Accumulated Depreciation 882 4 688 20 078



551 Question 12.10

Units of use depreciation method Asset Equipment – Electronic optical Asset cost including installation 305 000 less Residual value 5 000 = Depreciable amount $ 300 000

Preset total units of use: 5000 hours units of production Depreciation cost for 1 unit: $60 using depreciable amount

Date Units Used

Asset Cost




1 Jul 15 305 000

30 Jun 16 2 500 150 000 150 000 155 000

30 Jun 17 2 000 120 000 270 000 35 000

30 Jun 18 500 30 000 300 000 5 000

Extract General Journal of . . . GJ . . 30 Jun 16 Depreciation – Equipment 150 000 Accumulated Depreciation – Equipment 150 000 Depreciation at balance date


1 Jul 15 Accounts Payable Ctrl PD 305 000 Accumulated Depreciation – Equipment

30 Jun 16 Depreciat’n – Equipment GJ. 150 000


270 000

Depreciation – Equipment 30 Jun 16 Accum Dep – Equipm’nt GJ. 150 000 30 Jun 16 Profit and Loss GJ. 150 000

30 Jun 17 Accum Dep – Equipm’nt GJ. 120 000 30 Jun 17 Profit and Loss GJ. 120 000


less Expenses General and Administrative Depreciation – Equipment 120 000


as at 30 June 2018




552 Question 12.11

Units of use depreciation method Asset Aircraft Asset cost including installation 340 000 less Residual value 0 = Depreciable amount $ 340 000

Preset total units of use: 20 000 hours units of production Depreciation cost for 1 unit: $17 using depreciable amount

Date Units Used

Asset Cost




2 Jan 16 340 000

30 Jun 16 1 300 22 100 22 100 317 900

30 Jun 17 2 800 47 600 69 700 270 300

Extract General Journal of . . . GJ . .

30 Jun 16 Depreciation – Aircraft 22 100 Accumulated Depreciation – Aircraft 22 100 Depreciation at balance date


as at 30 June 2017

Non-current Assets Aircraft 340 000 less Accumulated Depreciation 69 700 270 300 Question 12.12

Anticipated units of use depreciation method Asset Equipment – Medical Scanning Asset cost including installation 728 000 less Residual value 0


Preset total units of use: 5000 hours units of production Depreciation cost for 1 unit: $145.60 using depreciable amount

Date Units Used

Asset Cost




15 Jul 15 728 000

30 Jun 16 700 101 920 101 920 626 080

30 Jun 17 1 200 174 720 276 640 451 360

30 Jun 18 800 116 480 393 120 334 880

30 Jun 19 1 400 203 840 596 960 131 040

30 Jun 20 900 131 040 728 000 0



553


Units of use depreciation method Asset Equipment – Medical Scanning Asset cost including installation 728 000 less Residual value 0


Preset total units of use: 5 000 hours units of production Depreciation cost for 1 unit: $145.60 using depreciable amount

Date Units Used

Asset Cost




16 Jul 15 728 000

30 Jun 16 625 91 000 91 000 637 000

30 Jun 17 1 150 167 440 258 440 469 560


16 Jul 15 Accounts Payable Ctrl PD 728 000 Accumulated Depreciation – Equipment



258 440

Depreciation – Equipment 30 Jun 16 Accum Dep – Equipm’t GJ. 91 000 30 Jun 16 Profit and Loss GJ. 91 000

30 Jun 17 Accum Dep – Equipm’t GJ. 167 440 30 Jun 17 Profit and Loss GJ. 167 440


less Expenses General and Administrative Depreciation – Equipment 167 440


as at 30 June 2017




554 Question 12.13

Units of use depreciation method Asset Motor Vehicles Asset cost including installation 745 000 less Residual value 45 000 = Depreciable amount $ 700 000

Preset total units of use: 2 000 000 km units of production Depreciation cost for 1 unit $0.35 using depreciable amount

Date Units Used

Asset Cost




31 Jul 15 745 000

30 Jun 16 145 000 50 750 50 750 694 250

30 Jun 17 185 000 64 750 115 500 629 500

30 Jun 18 180 000 63 000 178 500 566 500

Extract General Ledger of . . . Motor Vehicles

31 Jul 15 Accounts Payable Ctrl PD 745 000 Accumulated Depreciation – Motor Vehicles

30 Jun 16 Deprec – Motor Vehicle GJ. 50 750


115 500


178 500

Depreciation – Motor Vehicles 30 Jun 16 Acc Dep – Motor Vehicle GJ. 50 750 30 Jun 16 Profit and Loss GJ. 50 750

30 Jun 17 Acc Dep – Motor Vehicle GJ. 64 750 30 Jun 17 Profit and Loss GJ. 64 750

30 Jun 18 Acc Dep – Motor Vehicle GJ. 63 000 30 Jun 18 Profit and Loss GJ. 63 000


12 months

31 Aug 15 (10 mths to 30 Jun) Machine 1 installed 1 Oct 15 (9 mths to 30 Jun) Machine 2 purchase



555


Straight line depreciation method Asset: Machinery – Machine 1 Asset cost + installation [23 920+7 680] 31 600







31 Aug 15 31 600

30 Jun 16 3 788 3 788 27 812

30 Jun 17 4 545 8 333 23 267

Units of use depreciation method Asset Machinery – Machine 2 Asset cost including installation 175 000 less Residual value 5 000 = Depreciable amount $ 170 000

Preset total units of use: 17 000 hours units of production Depreciation cost for 1 unit: $10 using depreciable amount

Date Units Used

Asset Cost




1 Oct 15 175 000

30 Jun 16 1 875 18 750 18 750 156 250

30 Jun 17 2 800 28 000 46 750 128 250

Extract General Ledger of H Bilberry Machinery

31 Jul 15 Accounts Payable Ctrl PD 23 920

31 Aug 15 Accounts Payable Ctrl PD 7 680

31 600

1 Oct 15 Accounts Payable Ctrl PD 175 000

206 600

Accumulated Depreciation – Machinery [3 788 + 18 750] 30 Jun 16 Depreciat’n – Machinery GJ. 22 538

[4 545 + 28 000] 30 Jun 17 Depreciat’n – Machinery GJ. 32 545

55 083

Depreciation – Machinery 30 Jun 16 Accum Dep – Machinery GJ. 22 538 30 Jun 16 Profit and Loss GJ. 22 538

30 Jun 17 Accum Dep – Machinery GJ. 32 545 30 Jun 17 Profit and Loss GJ. 32 545



556 Question 12.15

1 Jul 15 30 Jun 16 30 Jun 17

12 months

30 Sep 15 (9 mths to 30 Jun) 1 Apr 16 (3 mths to 30 Jun) Computer purchase Forklift truck purchase


Asset: Computer Asset cost including installation 7 300 less Residual value 0 = Depreciable amount $ 7 300

Rate p.a. 33 1/3% on depreciable amount Depreciation p.a. $2433




30 Sep 15 7 300

30 Jun 16 1 825 1 825 5 475

30 Jun 17 2 433 4 258 3 042

Straight line depreciation method Motor Vehicles – Forklift truck Asset cost including installation 68 550 less Residual value 3 000 $ 65 550

Rate p.a. 15% on depreciable amount Depreciation p.a. $ 833




1 Apr 16 68 550

30 Jun 16 2 458 2 458 66 092

30 Jun 17 9 833 12 291 56 259

Extract General Ledger of G Basil Computer

30 Sep 15 Bank [payment] CP 7 300

Accumulated Depreciation – Computer 30 Jun 16 Depreciat’n – Computer GJ. 1 825

30 Jun 17 Depreciat’n – Computer GJ. 2 433

4 258

Motor Vehicles 1 Apr 16 Accounts Payable Ctrl PD 68 550

Accumulated Depreciation – Motor Vehicles 30 Jun 16 Depr – Motor Vehicles GJ. 2 458

30 Jun 17 Depr – Motor Vehicles GJ. 9 833

12 291 continued



557


Extract General Ledger of G Basil continued Depreciation – Computer

30 Jun 16 Accum Dep – Computer GJ. 1 825 30 Jun 16 Profit and Loss GJ. 1 825

30 Jun 17 Accum Dep – Computer GJ. 2 433 30 Jun 17 Profit and Loss GJ. 2 433

Depreciation – Motor Vehicles 30 Jun 16 Accum Dep – Motor Veh GJ. 2 458 30 Jun 16 Profit and Loss GJ. 2 458

30 Jun 17 Accum Dep – Motor Veh GJ. 9 833 30 Jun 17 Profit and Loss GJ. 9 833

Extract Income Statement of G Basil for the year ended 30 June 2016

less Expenses General and Administrative Depreciation – Computer 1 825 Depreciation – Motor Vehicles 2 458 4 283

Extract Income Statement of G Basil for the year ended 30 June 2016

less Expenses General and Administrative Depreciation – Computer 2 433 Depreciation – Motor Vehicles 9 833 12 266

Extract Balance Sheet of G Basil as at 30 June 2016

Non-current Assets Computer 7 300 less Accumulated Depreciation 1 825 5 475 Motor Vehicles 68 550 less Accumulated Depreciation 2 458 66 092 71 567

Extract Balance Sheet of G Basil as at 30 June 2017

Non-current Assets Computer 7 300 less Accumulated Depreciation 4 258 3 042 Motor Vehicles 68 550 less Accumulated Depreciation 12 291 56 259 59 301



558 Question 12.16

1 Jul 15 30 Jun 16 30 Jun 17

12 months

1 Sep 15 (10 mths to 30 Jun) 31 Mar 16 (3 mths to 30 Jun) Machinery purchase Office Furniture purchase 31 Jul 15 (11 mths to 30 Jun) Office Equipment purchase


Asset: Office Equipment – Photocopier Asset cost including installation 3 770 less Residual value 0






31 Jul 15 3 770

30 Jun 16 518 518 3 252

30 Jun 17 566 1 084 2 686

Straight line depreciation method Asset: Office Furniture – Desks and chairs Asset cost including installation 2 960 less Residual value 0

$ 2 960





31 Mar 16 2 960

30 Jun 16 74 74 2 886

30 Jun 17 296 370 2 590

Units of use depreciation method Asset Machinery Asset cost including installation 77 670 less Residual value 0


Preset total units of use: 5 000 units units of production Depreciation cost for 1 unit $15.534 using depreciable amount

Date Units Used

Asset Cost




1 Sep 15 77 670

30 Jun 16 770 11 961 11 961 65 709

30 Jun 17 1 470 22 835 34 796 42 874



559


Extract General Journal of B Walnut GJ . . 30 Jun 16 Depreciation – Office Equipment 518

Depreciation – Machinery 11 961 Depreciation – Office Furniture 74

Accumulated Depreciation – Office Equipment 518


Accumulated Depreciation – Office Furniture 74 Depreciation at balance date

30 Jun 17 Depreciation – Office Equipment 566 Depreciation – Machinery 22 835 Depreciation – Office Furniture 296 Accumulated Depreciation – Office Equipment 566 Accumulated Depreciation – Machinery 22 835 Accumulated Depreciation – Office Furniture 296 Depreciation at balance date

Question 12.7 Diminishing balance depreciation method

Asset: Equipment Asset cost including installation 62 710 less Residual value not applicable = Depreciable amount $ 62 710

Rate p.a. 25% on opening carrying amount Date Opening

Carrying Amount Depreciation

(current) Accumulated Depreciation


1 Jul 15 62 710

30 Jun 16 62 710 15 678 15 678 47 032

30 Jun 17 47 032 11 758 27 436 35 274

30 Jun 18 35 274 8 819 36 255 26 455

30 Jun 19 26 455 6 614 42 869 19 841

Extract General Journal of . . . GJ . . 30 Jun 17 Depreciation – Equipment 11 758 Accumulated Depreciation – Equipment 11 758 Depreciation at balance date





560

Question 12.18

Diminishing balance depreciation method Asset: Machinery Asset cost including installation 22 180

less Residual value not applicable






1 Jul 15 22 180

30 Jun 16 22 180 6 654 6 654 15 526

30 Jun 17 15 526 4 658 11 312 10 868

30 Jun 18 10 868 3 260 14 572 7 608

Extract General Ledger of . . . Machinery

1 July 15 Accounts Payable Ctrl PD 22 180 Accumulated Depreciation – Machinery

30 Jun 16 Depreciat’n – Machinery GJ. 6 654


11 312


14 572




Question 12.19 Diminishing balance depreciation method

Asset: Equipment Asset cost including installation 10 000







1 Jul 15 10 000

30 Jun 16 10 000 3 000 3 000 7 000

30 Jun 17 7 000 2 100 5 100 4 900

30 Jun 18 4 900 1 470 6 570 3 430

30 Jun 19 3 430 1 029 7 599 2 401

30 Jun 20 2 401 720 8 319 1 681



561


Extract General Journal of . . . GJ . . 30 Jun 17 Depreciation – Equipment 2 100

Accumulated Depreciation – Equipment 2 100 Depreciation at balance date


Equipment 1 July 15 Bank [payment] CP 10 000

Accumulated Depreciation – Equipment 30 Jun 16 Depreciat’n – Equipment GJ. 3 000


5 100




12 months

31 Aug 15 (10 mths to 30 Jun) Plant & Mach installed

Diminishing balance depreciation method

Asset: Plant and Machinery Asset cost including installation

72 970 [53 660 + 19 310]

less Residual value not applicable = Depreciable amount $ 72 970





31 Aug 15 72 970 30 Jun 16 72 970 21 283 21 283 51 687 30 Jun 17 51 687 18 090 39 373 33 597 30 Jun 18 33 597 11 759 51 132 21 838

Extract General Ledger of . . . Plant and Machinery

1 Jul 15 Accounts Payable Ctrl PD 53 660 31 Aug 15 Accounts Payable Ctrl PD 19 310

72 970 continued



562


Extract General Ledger of . . . continued Accumulated Depreciation – Plant and Machinery

30 Jun 16 Depr’n – Plant & Mach GJ. 21 283 30 Jun 17 Depr’n – Plant & Mach GJ. 18 090 39 373

Depreciation – Plant and Machinery 30 Jun 16 Acc Dep – Plant & Mach GJ. 21 283 30 Jun 16 Profit and Loss GJ. 21 283

30 Jun 17 Acc Dep – Plant & Mach GJ. 18 090 30 Jun 17 Profit and Loss GJ. 18 090


Non-current Assets Plant and Machinery 72 970 less Accumulated Depreciation 39 373 33 597


12 months

30 Sep 15 (9 mths to 30 Jun 15) Machinery installed


Asset: Machinery Asset cost including installation 82 200 [74 000 + 8 200]







30 Sep 15 82 200

30 Jun 16 82 200 18 495 18 495 63 705

30 Jun 17 63 705 19 112 37 607 44 593

30 Jun 18 44 593 13 378 50 985 31 215

30 Jun 19 31 215 9 365 60 350 21 850

Extract General Journal of . . . GJ . . 30 Jun 17 Depreciation – Machinery 19 112

Accumulated Depreciation – Machinery 19 112 Depreciation at balance date


as at 30 June 2018

Non-current Assets Machinery 82 200 less Accumulated Depreciation 50 985 31 215



563


12 months

1 Feb 16 (5 mths to 30 Jun) Equipment installation

Diminishing balance depreciation method Asset: Equipment Asset cost including installation 70 880



Rate p.a.

28% on opening carrying amount

Date Opening Carrying Amount




1 Feb 16 70 880

30 Jun 16 70 880 8 269 8 269 62 611

30 Jun 17 62 611 17 531 25 800 45 080

30 Jun 18 45 080 12 622 38 422 32 458

30 Jun 19 32 458 9 088 47 510 23 370

30 Jun 20 23 370 6 544 54 054 16 826


1 Feb 16 Accounts Payable Ctrl PD 70 880 Accumulated Depreciation – Equipment



25 800





less Expenses General and Administrative Depreciation – Equipment 12 622 Question 12.23

1 Jul 15 30 Jun 16 30 Jun 17 12 months

31 Oct 15 (8 mths to 30 Jun) Plant & Equipment installation



564


Diminishing balance depreciation method Asset: Plant and Equipment

Asset cost including installation 94 760 [77 650 + 17 110]



Rate

30% on opening carrying amount Date Opening




31 Oct 15 94 760

30 Jun 16 94 760 18 952 18 952 75 808

30 Jun 17 75 808 22 742 41 694 53 066

30 Jun 18 53 066 15 920 57 614 37 146

30 Jun 19 37 146 11 144 68 758 26 002

30 Jun 20 26 002 7 801 76 559 18 201

Extract General Ledger of . . . Plant and Equipment

1 Sep 15 Accounts Payable Ctrl PD 77 650 31 Oct 15 Accounts Payable Ctrl PD 17 110

94 760 Accumulated Depreciation – Plant and Equipment

30 Jun 16 Deprec – Plant & Equip’t GJ. 18 952


41 694


57 614

Depreciation – Plant and Equipment 30 Jun 16 Acc Dep – Plant & Equip GJ. 18 952 30 Jun 16 Profit and Loss GJ. 18 952

30 Jun 17 Acc Dep – Plant & Equip GJ. 22 742 30 Jun 17 Profit and Loss GJ. 22 742

30 Jun 18 Acc Dep – Plant & Equip GJ. 15 920 30 Jun 18 Profit and Loss GJ. 15 920


Non-current Assets Plant and Equipment 94 760 less Accumulated Depreciation 57 614 37 146


Non-current Assets Plant and Equipment 94 760 less Accumulated Depreciation 68 758 26 002



565 Question 12.24


1 Nov 15 (8 mths to 30 Jun) Office Furniture purchase


Asset: Office Furniture

Asset cost including installation 15 310







1 Nov 15 15 310

30 Jun 16 987 987 14 323

30 Jun 17 1 481 987 12 842

30 Jun 18 1 481 1974 11 361

30 Jun 19 1 481 3948 9 880

30 Jun 20 1 481 6 911 8 399

Diminishing balance depreciation method Asset: Office Furniture




Rate p.a. 25% On opening carrying amount





1 Nov 15 15 310 30 Jun 16 15 310 2 552 2 552 12 758 30 Jun 17 12 758 3 190 5 742 9 568 30 Jun 18 9 568 2 392 8 134 7 176 30 Jun 19 7 176 1 794 9 928 5 382 30 Jun 20 5 382 1 346 11 274 4 036


12 months

1 Mar 16 (4 mths to 30 Jun) Machine 2 purchase 31 Jan 16 (5 mths to 30 Jun) Machine 1 purchase



566


Diminishing balance depreciation method Asset: Machinery – Machine 1


less Residual value n/a


Rate

35% on opening carrying amount





31 Jan 16 40 360

30 Jun 16 40 360 5 886 5 886 34 474

30 Jun 17 34 474 12 066 17 952 22 408

30 Jun 18 22 408 7 843 25 795 14 565

30 Jun 19 14 565 5 098 30 893 9 467

30 Jun 20 9 467 3 313 34 206 6 154

Straight line depreciation method Asset: Machinery – Machine 2 Asset cost including installation 50 690 less Residual value 2 500 = Depreciable amount $ 48 190





1 Mar 16 50 690 30 Jun 16 2 410 2 410 48 280 30 Jun 17 7 229 1894 41 051 30 Jun 18 7 229 1894 33 822 30 Jun 19 7 229 3788 26 593 30 Jun 20 7 229 31 326 19 364


12 months

28 Feb 16 (4 mths to 30 Jun) Equipment 2 installed 31 Jan 16 (5 mths to 30 Jun) Equipment 1 installed



567


Asset: Equipment 1 Asset cost including installation 16 240 [11 560 + 4680]







31 Jan 16 16 240

30 Jun 16 953 953 15 287

30 Jun 17 2 286 953 13 001

30 Jun 18 2 286 5 525 10 715

Diminishing balance depreciation method Asset: Equipment 2 Asset cost including installation 16 780 less Residual value n/a = Depreciable amount $ 16 780





28 Feb 16 16 780

30 Jun 16 16 780 1 790 1 790 14 990

30 Jun 17 14 990 4 797 6 587 10 193

30 Jun 18 10 193 3 262 9 849 6 931


less Expenses General and Administrative Depreciation – Equipment [2286+4797] 7 083


as at 30 June 2017

Non-current Assets Equipment [16 240 + 16 780] 33 020 less Accum Depreciation [3239 + 6587] 9 826 23 194 Question 12.27


1 Aug 15 (11 mths to 30 Jun) 1 Feb 16 (5 mths to 30 Jun) Motor Vehicle 1 purchase Motor Vehicle 3 purchase 30 Nov 15 (7 mths to 30 Jun) Motor Vehicle 2 purchase



568


Straight line depreciation method Asset: Motor Vehicle 1 Asset cost including installation 43 290







1 Aug 15 43 290

30 Jun 16 5 292 5 292 37 998

30 Jun 17 5 774 11 066 32 224

30 Jun 18 5 774 16 840 26 450

30 Jun 19 5 774 22 614 20 676


Asset: Motor Vehicle 2 Asset cost including installation 39 800 less Residual value n/a






30 Nov 15 39 800

30 Jun 16 39 800 6 501 6 501 33 299

30 Jun 17 33 299 9 324 15 825 23 975

30 Jun 18 23 975 6 713 22 538 17 262

30 Jun 19 17 262 4 833 27 371 12 429

Units of use depreciation method

Asset Motor Vehicle 3 Asset cost including installation 44 600 less Residual value 2 600


Preset total units of use: 8000 hours units of production Depreciation cost for 1 unit: $5.25 using depreciable amount

Date Units Used

Asset Cost




1 Feb 16 44 600

30 Jun 16 270 1 418 1 418 43 182

30 Jun 17 940 4 935 6 353 38 247

30 Jun 18 750 3 938 10 291 34 309

30 Jun 19 1 170 6 143 16 434 28 166



569



less Expenses General and Administrative Depreciation – Motor Vehicles 20 033 [5774 + 9324 + 4935]


as at 30 June 2018

Non-current Assets Motor Vehicles [43 290 + 39 800 + 44 600] 127 690 less Acc Deprec [16 840 + 22 538 + 10 291] 49 669 78 021


12 months 1 Dec 15 (7 mths to 30 Jun) Machinery purchase and Office Equipment purchase


Asset: Machinery Asset cost including installation 15 700 less Residual value n/a = Depreciable amount $ 15 700





1 Dec 15 15 700

30 Jun 16 15 700 2 748 2 748 12 952

30 Jun 17 12 952 3 886 6 634 9 066

30 Jun 18 9 066 2 720 9 354 6 346

30 Jun 19 6 346 1 904 11 258 4 442

30 Jun 20 4 442 1 333 12 591 3 109



570


Asset: Office Equipment Asset cost including installation 9 000 less Residual value 0 = Depreciable amount $ 9 000





1 Dec 15 9 000

30 Jun 16 525 525 8 475

30 Jun 17 900 1 425 7 575

30 Jun 18 900 951 6 675

30 Jun 19 900 951 5 775

30 Jun 20 900 4 125 4 875

Extract General Journal of D Burrendong GJ . . 30 Jun 16 Depreciation – Machinery 2 748

Depreciation – Office Equipment 525 Accumulated Depreciation – Machinery 2 748 Accumulated Depreciation – Office Equipment 525 Depreciation at balance date

Extract General Ledger of D Burrendong

Machinery 1 Dec 15 Bank [payment] CP 15 700

Accumulated Depreciation – Machinery 30 Jun 16 Depreciat’n – Machinery GJ. 2 748


6 634


9 354

Office Equipment 1 Dec 14 Bank [payment] CP 9 000

Accumulated Depreciation – Office Equipment 30 Jun 16 Deprec – Office Equip’t GJ. 525

30 Jun 17 Deprec – Office Equip’t GJ. 900

1 425

30 Jun 18 Deprec – Office Equip’t GJ. 900

2 325




continued



571

Question 12.28 continued Extract General Ledger of D Burrendong continued

Depreciation – Office Equipment 30 Jun 16 Acc Dep – Office Equip GJ. 525 30 Jun 16 Profit and Loss GJ. 525

30 Jun 17 Acc Dep – Office Equip GJ. 900 30 Jun 17 Profit and Loss GJ. 900

30 Jun 18 Acc Dep – Office Equip GJ. 900 30 Jun 18 Profit and Loss GJ. 900

Extract Income Statement of D Burrendong for the year ended 30 June 2018

less Expenses General and Administrative Depreciation – Machinery 2 720 Depreciation – Office Equipment 900 3 620 ]


Non-current Assets Machinery 15 700 less Accumulated Depreciation 11 258 4 442 Office Equipment 9 000 less Accumulated Depreciation 3 225 5 775 10 217

Question 12.29 1 Jul 15 30 Jun 16 30 Jun 17 30 Jun 18

12 months

31 Jan 16 (5 mths to 30 Jun) 1 Feb 17 (5 mths to 30 Jun) Machinery purchase Plant purchase 31 Jul 15 (11 mths to 30 Jun) Office furniture purchase


Asset: Office Furniture Asset cost including installation 7 200







31 Jul 15 7 200

30 Jun 16 660 660 6 540

30 Jun 17 720 1 380 5 820

30 Jun 18 720 2 100 5 100

30 Jun 19 720 2 820 4 380



572


Diminishing balance depreciation method Asset: Machinery Asset cost including installation 48 000 less Residual value n/a = Depreciable amount $ 48 000





31 Jan 16 48 000 30 Jun 16 48 000 5 000 5 000 43 000 30 Jun 17 43 000 10 750 15 750 32 250 30 Jun 18 32 250 8 063 23 813 24 187 30 Jun 19 24 187 6 047 29 860 18 140


Asset: Plant Asset cost including installation 39 000 less Residual value n/a = Depreciable amount $ 39 000





1 Feb 17 39 000

30 Jun 17 39 000 4 875 4 875 34 125

30 Jun 18 34 125 10 238 15 113 23 887

30 Jun 19 23 887 7 166 22 279 16 721

Extract General Journal of Peggy See GJ . . 30 Jun 17 Depreciation – Office Furniture 720 Depreciation – Machinery 10 750 Depreciation – Plant 4 875 Accumulated Depreciation – Office Furniture 720 Accumulated Depreciation – Machinery 10 750 Accumulated Depreciation – Plant 4 875 Depreciation at balance date

Extract Income Statement of Peggy See for the year ended 30 June 2018

less Expenses General and Administrative Depreciation – Office Furniture 720 Depreciation – Machinery 8 063 Depreciation – Plant 10 238 19 021 ]



573


Extract Balance Sheet of Peggy See as at 30 June 2019

Non-current Assets Office Furniture 7 200 less Accumulated Depreciation 2 820 4 380 Machinery 48 000 less Accumulated Depreciation 29 860 18 140 Plant 39 000 less Accumulated Depreciation 22 279 16 721 39 241


12 months

30 Nov 15 (7 mths to 30 Jun) 31 Mar 16 (3 mths to 30 Jun) Machine 1 purchase Machine 2 installation


Asset: Machinery – Machine 1 Asset cost including installation 32 500







30 Nov 15 32 500

30 Jun 16 2 669 2 669 29 831

30 Jun 17 4 575 7 244 25 256

30 Jun 18 4 575 11 819 20 681

30 Jun 19 4 575 16 394 16 106

Diminishing balance depreciation method Asset: Machinery – Machine 2 Asset cost including installation 85 250 [78 450 +

less Residual value n/a 6 800]






31 Mar 16 85 250

30 Jun 16 85 250 6 394 6 394 78 856

30 Jun 17 78 856 23 657 30 051 55 199

30 Jun 18 55 199 16 560 46 611 38 639

30 Jun 19 38 639 11 592 58 203 27 047



574


Extract General Journal of Marie Hend GJ . . 30 Jun 17 Depreciation – Machinery [4 575 + 23 657] 28 232 Accumulated Depreciation – Machinery 28 232 Depreciation at balance date

Extract General Ledger of Marie Hend Machinery

30 Nov 15 Accounts Payable Ctrl PD 32 500 2 Dec 16 Accounts Payable Ctrl PD 78 450

110 950 31 Mar 16 Accounts Payable Ctrl PD 6 800

117 750 Accumulated Depreciation – Machinery



37 295



Extract Income Statement of Marie Hend for the year ended 30 June 2018

less Expenses General and Administrative Depreciation – Machinery 21 135

Extract Balance Sheet of Marie Hend

as at 30 June 2019

Non-current Assets Machinery [32 500 + 85 250] 117 750 less Accumulated Depreciation 74 597 43 153


12 months

1 Oct 15 (9 mths to 30 Jun) 1 Nov 16 (8 mths to 30 Jun) Motor Vehicle purchase Office Furniture purchase 31 Jul 15 (11 mths to 30 Jun) 31 Aug 16 (10 mths to 30 Jun) Fixtures & Fittings purchase Motor Vehicle purchase



575


Straight line depreciation method Asset: Fixtures and Fittings Asset cost including installation 17 500







31 Jul 15 17 500

30 Jun 16 3 025 3 025 14 475

30 Jun 17 3 300 6 325 11 175

30 Jun 18 3 300 9 625 7 875

30 Jun 19 3 300 12 925 4 575

30 Jun 20 3 300 16 225 1 275

Diminishing balance depreciation method Motor Vehicles – small truck Asset cost including installation 45 000 less Residual value n/a = Depreciable amount $ 45 000





1 Oct 15 45 000

30 Jun 16 45 000 11 813 11 813 33 187

30 Jun 17 33 187 11 615 23 428 21 572

30 Jun 18 21 572 7 550 30 978 14 022

30 Jun 19 14 022 4 908 35 886 9 114

30 Jun 20 9 114 3 190 39 076 5 924

Diminishing balance depreciation method Asset: Motor Vehicles – car Asset cost including installation 35 000 less Residual value n/a = Depreciable amount $ 35 000

Rate p.a. 30% on opening carrying amount Date Asset Cost Depreciation



31 Aug 16 35 000

30 Jun 17 35 000 8 750 8 750 26 250

30 Jun 18 26 250 7 875 16 625 18 375

30 Jun 19 18 375 5 513 22 138 12 862

30 Jun 20 12 862 3 859 25 997 9 003



576


Straight line depreciation method Asset: Office Furniture Asset cost including installation 9 500 less Residual value 200 = Depreciable amount $ 9 300






1 Nov 16 9 500

30 Jun 17 620 620 8 880

30 Jun 18 930 620 7 950

30 Jun 19 930 1240 7 020

30 Jun 20 930 3 410 6 090

Extract Income Statement of Ruth Lye for the year ended 30 June 2018

less Expenses General and Administrative Depreciation – Fixtures & Fittings 3 300 Deprec – Motor Vehicle [7550 + 7875] 15 425 Depreciation – Office Furniture 930 19 655 ]

Extract Balance Sheet of Ruth Lye as at 30 June 2019

Non-current Assets Fixtures and Fittings 17 500 less Accumulated Depreciation 12 925 4 575 Motor Vehicles [45 000 + 35 000] 80 000 less Accum Depreciat’n [35 886 + 22 138] 58 024 21 976 Office Furniture 9 500 less Accumulated Depreciation 2 480 7 020 33 571


12 months

1 Oct 15 (9 mths to 30 Jun) 31 Jan 17 (5 mths to 30 Jun) Plant & Equipment purchase Computer purchase 1 Aug 15 (11 mths to 30 Jun) 31 Aug 16 (10 mths to 30 Jun) Office Furniture purchase Office Furniture purchase



577


Straight line depreciation method Asset: Office Furniture 1








1 Aug 15 12 600

30 Jun 16 1 100 1 100 11 500

30 Jun 17 1 200 2 300 10 300

30 Jun 18 1 200 3 500 9 100

30 Jun 19 1 200 4 700 7 900

Diminishing balance depreciation method Asset: Plant and Equipment








1 Oct 15 25 800

30 Jun 16 25 800 6 386 6 386 19 414

30 Jun 17 19 414 6 407 12 793 13 007

30 Jun 18 13 007 4 292 17 085 8 715

30 Jun 19 8 715 2 876 19 961 5 839

Straight line depreciation method Asset: Office Furniture 2








31 Aug 16 11 000

30 Jun 17 917 917 10 083

30 Jun 18 1 100 2 017 8 983

30 Jun 19 1 100 3 117 7 883



578


Diminishing balance depreciation method Asset: Computer








31 Jan 17 41 800

30 Jun 17 41 800 7 838 7 838 33 962

30 Jun 18 33 962 15 283 23 121 18 679

30 Jun 19 18 679 8 406 31 527 10 273

Extract Income Statement of Margaret Kline for the year ended 30 June 2017

less Expenses General and Administrative Deprec’n – Office Furniture [1200 + 917] 2 117 Depreciation – Plant & Equipment 6 407 Depreciation – Computer 7 838 16 362 ]

Extract Balance Sheet of Margaret Kline as at 30 June 2018

Non-current Assets Office Furniture [12 600 + 11 000] 23 600 less Accumulated Deprec [3500 + 2017] 5 517 18 083 Plant and Equipment 25 800 less Accumulated Depreciation 17 085 8 715 Computer 41 800 less Accumulated Depreciation 23 121 18 679 45 477

Question 12.33 parts a, b

Extract General Ledger of . . . a Machinery

30 Jun 16 Balance 15 000 1 Jul 16 Disposal – Machinery GJ 15 000

Accumulated Depreciation – Machinery 1 Jul 16 Disposal – Machinery GJ 10 000 30 Jun 16 Balance 10 000

Disposal – Machinery 1 Jul 16 Machinery GJ 15 000 1 Jul 16 Accum Dep – Machinery GJ 10 000 Gain on Disposal -Mach GJ 1 000 Account Receivable Ctrl GJ 6 000

16 000 16 000

Gain on Disposal – Machinery 1 Jul 16 Disposal – Machinery GJ. 1 000



579

Question 12.33 part b continued b 1 Jul 16 30 Jun 17 31 Aug

(2 mths from 1 Jul 16 to 31 Aug 16) Machine disposal


b Machinery 30 Jun 16 Balance 15 000 31 Aug 16 Disposal – Machinery GJ 15 000

Accumulated Depreciation – Machinery 31 Aug 16 Disposal – Machinery GJ 10 375 30 Jun 16 Balance 10 000

31 Aug 16 Depreciat’n – Machinery GJ 375

10 375 10 375

Disposal – Machinery 31 Aug 16 Machinery GJ 15 000 31 Aug 16 Accum Dep – Machinery GJ 10 375

Bank [receipt] GJ 3 000 Loss on Disp’l – Mach GJ 1 625 15 000 15 000

Depreciation – Machinery 31 Aug 16 Accum Dep – Machin GJ 375

Loss on Disposal – Machinery 31 Aug 16 Disposal – Machinery GJ 1 625

Question 12.33 part c c 1 Jul 16 30 Jun 17 31 Mar (9 mths from 1 Jul 16 to 31 Mar 17) Machinery disposal


c Machinery 30 Jun 16 Balance 15 000 31 Mar 17 Disposal – Machinery GJ 15 000

Accumulated Depreciation – Machinery 31 Mar 17 Disposal – Machinery GJ 11 688 30 Jun 16 Balance 10 000

31 Mar 17 Depreciat’n – Machinery GJ 1 688

11 688 11 688

Disposal – Machinery 31 Mar 17 Machinery GJ 15 000 31 Mar 17 Accum Dep – Machinery GJ 11 688

Gain on Disposal–Mach 4 688 Accounts Payable Ctrl GJ 8 000

19 688 19 688

continued



580

Question 12.33 part c continued

Extract General Ledger of . . . continued Gain on Disposal – Machinery

31 Mar 17 Disposal – Machinery GJ 4 688

Depreciation – Machinery 31 Mar 17 Accum Dep – Machinery GJ 1 688

Question 12.34 parts a, b

Extract General Ledger of D Nepean a Plant

30 Jun 16 Balance 45 000 1 Jul 16 Disposal – Plant 45 000

Accumulated Depreciation – Plant 1 Jul 16 Disposal – Plant 27 000 30 Jun 16 Balance 27 000

Disposal – Plant 1 Jul 16 Plant 45 000 1 Jul 16 Accum’d Depreciation – Plant 27 000

Gain on Disposal -Plant 1 000 Bank [receipt] 19 000

46 000 46 000

Gain on Disposal – Plant 1 Jul 16 Disposal – Plant 1 000

b 1 Jul 16 30 Jun 17 31 Oct 16 4 mths from 1 Jul 16 to 31 Oct 16 Plant disposal

Extract General Ledger of D Nepean

b Plant 30 Jun 16 Balance 45 000 31 Oct 16 Disposal – Plant 45 000

Accumulated Depreciation – Plant 31 Oct 16 Disposal – Plant 29 250 30 Jun 16 Balance 27 000

31 Oct 16 Depreciation – Plant 2 250

29 250 29 250

Disposal – Plant 31 Oct 16 Plant 45 000 31 Oct 16 Accum Depreciation – Plant 29 250

Accounts Receivable Ctrl 15 500 Loss on Disposal – Plant 250

45 000 45 000

Depreciation – Plant 31 Oct 16 Accum Depreciation – Plant 2 250

Loss on Disposal – Plant 31 Oct 16 Disposal – Plant 250



581

Question 12.34 parts c, d c 1 Jul 16 30 Jun 17

7 mths from 1 Jul 16 to 1 Feb 17 1 Mar 17 4 mths to 30 Jun 17 Plant disposal Plant purchase 562.50 × 7 = 3938

Extract General Ledger of D Nepean

c, d Plant 30 Jun 16 Balance 45 000 1 Feb 17 Disposal – Plant 45 000

10 Feb 17 Accounts Payable Control 75 000

1 Mar 17 Accounts Payable Control 5 000

80 000

Accumulated Depreciation – Plant 1 Feb 17 Disposal – Plant 30 938 30 Jun 16 Balance 27 000

1 Feb 17 Depreciation – Plant 3 938

30 938 30 938

30 Jun 17 Depreciation – Plant 4 000

Accounts Payable Control 1 Feb 17 Disposal – Plant 18 150 10 Feb 17 Plant 82 500

31 Mar 17 Bank [payment] 69 850 1 Mar 17 Plant 5 500

88 000 88 000

Disposal – Plant 1 Feb 17 Plant 45 000 1 Feb 17 Accum Depreciation – Plant 30 938

Gain on Disposal – Plant 2 438 Accounts Payable Control 16 500

47 438 47 438

Gain on Disposal – Plant 30 Jun 17 Profit and Loss 2 438 1 Feb 17 Disposal – Plant 2 438

Depreciation – Plant 1 Feb 17 Accum Depreciation – Plant 3 938 30 Jun 17 Profit and Loss 7 938

30 Jun 17 Accum Depreciation – Plant 4 000

7 938 7 938


31 Mar 15 31 Dec 16 12 months

31 Mar 15 (3 mths to 30 Jun 15) Machinery purchase 6 mths from 1 Jul 16 to 31 Dec 16 Machinery disposal



582


Asset: Machinery Asset cost including installation 35 000


= Depreciable amount $ 35 000 Rate p.a. 20% on depreciable amount Depreciation p.a. $7000




31 Mar 15 35 000 30 Jun 15 1 750 1 750 33 250 30 Jun 16 7 000 8 750 26 250 31 Dec 16 3 500 12 250 22 750

less Sales value 20 000 = (Gain)/Loss on Disposal 2 750

Extract General Ledger of D Bever Machinery

31 Mar 15 Accounts Payable Control 35 000 31 Dec 16 Disposal – Machinery 35 000

Accumulated Depreciation – Machinery 31 Dec 16 Disposal – Machinery 12 250 30 Jun 15 Depreciation – Machinery 1 750


31 Dec 17 Depreciation – Machinery 3 500

12 250 12 250

Disposal – Machinery 31 Dec 16 Machinery 35 000 31 Dec 16 Accum Deprec – Machinery 12 250


Loss on Disposal -Machine 2 750

35 000 35 000

Depreciation – Machinery 30 Jun 15 Accum Deprec – Machinery 1 750 30 Jun 15 Profit and Loss 1 750

30 Jun 16 Accum Deprec – Machinery 7 000 30 Jun 16 Profit and Loss 7 000

31 Dec 17 Accum Deprec – Machinery 3 500

Loss on Disposal – Machinery 31 Dec 16 Disposal – Machinery 2 750


30 Nov 15 1 May 16 30 Apr 18 12 months

1 May 16 (2 mths to 30 Jun 16) Office Equipment purchase 10 mths from 1 Jul 17 to 30 Apr 18 30 Apr 18 (2 mths Motor Vehicle trade-in to 30 Jun 18) 30 Nov 15 (7 mths to 30 Jun 16) Motor Vehicle Motor Vehicle purchase purchase



583


Diminishing balance depreciation method Asset: Motor Vehicle Asset cost including installation 41 580 less Residual value n/a






30 Nov 15 41 580

30 Jun 16 41 580 8 489 8 489 33 091

30 Jun 17 33 091 11 582 20 071 21 509

30 Apr 18 21 509 6 273 26 344 15 236

less trade-in value 14 000

= (Gain)/Loss on Disposal 1 236

Straight line depreciation method Asset: Office Equipment Asset cost including installation 14 100 less Residual value 200






1 May 16 14 100

30 Jun 16 232 232 13 868

30 Jun 17 1 390 232 12 478

30 Jun 18 1 390 464 11 088

30 Jun 19 1 390 928 9 698


Asset: Motor Vehicle Asset cost including installation 61 320 less Residual value n/a






30 Apr 18 61 320

30 Jun 18 4 088 4 088 57 232

30 Jun 19 57 232 22 893 26 981 34 339



584



less Expenses General and Administrative Deprec – Motor Vehicle [6273 + 4088] 10 361 Depreciation – Office Equipment 1 390 Loss on Disposal – Machinery 1 236 12 987 ]

Question 12.37 1 Jan 16 30 Jun 16 30 Jun 17 30 Jun 18

1 Feb 16 31 Mar 16 1 Sep 16 31 Oct 17 1 Apr 18 1 Sep 16 (10 mths to 30 Jun 17)

Machine 3 purchase 4 mths from 31 Mar 16 (3 mth to 30 Jun 16) 1 Jul 17 to 31 Oct 17 31 Oct 17 (8 mths to 30 Jun 18) Machine 2 purchase Machine 1 traded-in Machine 4 purchase 1 Feb 16 (5 mths to 30 Jun 16) 9 mths from 1 Jul 17 to 1 Apr 18 Machine 1 purchase Machine 2 sold

Diminishing balance depreciation method Asset: Machinery – Machine 1 Asset cost including installation 17 610 less Residual value not applicable = Depreciable amount $ 17 610





1 Feb 16 17 610

30 Jun 16 17 610 2 201 2 201 15 409

30 Jun 17 15 409 4 623 6 824 10 786

31 Oct 17 10 786 1 079 7 903 9 707 less Trade-in value 8 500 (Gain)/Loss on disposal 1 207

Diminishing balance depreciation method Asset: Machinery – Machine 2 Asset cost including installation 33 100 [20 230 +

less Residual value not applicable 12 870]






31 Mar 16 33 100

30 Jun 16 33 100 2 896 2 896 30 204

30 Jun 17 30 204 10 571 13 467 19 633

1 Apr 18 19 633 5 154 18 621 14 479 less Sales value 15 000 (Gain)/Loss on disposal (521)



585


Diminishing balance depreciation method Asset: Machinery – Machine 3 Asset cost including installation 48 670 [34 780 + 13 890]







1 Sep 16 48 670

30 Jun 17 48 670 12 168 12 168 36 502

30 Jun 18 36 502 10 951 23 119 25 551

30 Jun 19 25 551 7 665 30 784 17 886

Straight line depreciation method Asset: Machinery – Machine 4 Asset cost including installation 41 280 less Residual value 3 500 = Depreciable amount $ 37 780





31 Oct 17 41 280

30 Jun 18 5 037 5 037 36 243

30 Jun 19 7 556 1687 28 687

Extract General Journal of . . . GJ . . 30 Jun 18 Depreciation – Machinery [1 079+5 154+10 951+5 037] 22 221

Accumulated Depreciation – Machinery 22 221 Depreciation of machinery Gain on Disposal – Machinery 521 Profit and Loss 521 Other revenue closed out Profit and Loss 23 428 Depreciation – Machinery 22 221 Loss on Disposal – Machinery 1 207 Expenses closed out



586 Question 12.38

1 Jul 15 30 Jun 16 30 Jun 17 1 Oct 16 (9 mths to 30 Jun 18) Truck 2 purchase 31 Aug 16 (10 mths to 30 Jun 17) Fixtures & Fittings purchase 31 Mar 16 (3 mths to 30 Jun 16) Computer purchase 1 Dec 15 (7 mths to 30 Jun 16) Truck 1 purchase 7 mths from 1 Jul 16 to 31 Jan 17 Truck 1 sold


Asset: Motor Vehicles – Truck 1 Asset cost including installation 50 600







1 Dec 15 50 600

30 Jun 16 50 600 10 331 10 331 40 269

31 Jan 17 40 269 8 222 18 553 32 047 less Sales value 28 500 (Gain)/Loss on Disposal 3 547

Straight line depreciation method Asset: Computers Asset cost including installation 37 540



Rate p.a. 33 1/3% on depreciable amount Depreciation p.a. $12 180




31 Mar 16 37 540

30 Jun 16 3 045 3 045 34 495

30 Jun 17 12 180 1202 22 315

30 Jun 18 12 180 1394 10 135

30 Jun 19 9 135 36 540 1 000



587


Straight line depreciation method Asset: Fixtures and Fittings Asset cost including installation 11 970



Rate p.a. 12½ % on depreciable amount Depreciation p.a. $1496




31 Aug 16 11 970

30 Jun 17 1 247 1 247 10 723

30 Jun 18 1 496 1229 9 227

30 Jun 19 1 496 1229 7 731

Diminishing balance depreciation method Asset: Motor Vehicles – Truck 2 Asset cost including installation 77 080 less Residual value n/a = Depreciable amount $ 77 080





1 Oct 16 77 080

30 Jun 17 77 080 20 233 20 233 56 847

30 Jun 18 56 847 19 896 40 129 36 951

30 Jun 19 36 951 12 933 53 062 24 018

Extract General Ledger of Bernadette Williams Disposal – Motor Vehicle

31 Jan 17 Motor Vehicle 50 600 31 Jan 17 Accum Deprec – Motor Veh 18 553 Bank [receipt] 28 500 Loss on Disposal-Mot Veh 3 547 50 600 50 600

Extract Balance Sheet of Bernadette Williams as at 30 June 2019

Non-current Assets Computers 37 540 less Accumulated Depreciation 36 540 1 000 Fixtures and Fittings 11 970 less Accumulated Depreciation 4 239 7 731 Motor Vehicles 77 080 less Accumulated Depreciation 53 062 24 018 32 749



588

Question 12.39

Straight line depreciation method Asset: Machinery (old machine)


less Residual value unknown

= Depreciable amount $ unknown

Rate p.a. % on depreciable amount Depreciation p.a. $




30 Jun 15 18 000 7 800 10 200

31 Mar 16 2 700 10 500 7 500 less Trade-in value 8 250 (Gain)/Loss on Disposal (750)

Straight line depreciation method Asset: Machinery (new machine)








31 Mar 16 25 000

30 Jun 16 1 250 1 250 23 750

30 Jun 17 5 000 6 250 18 750

Extract General Journal of L Cowal GJ . . 31 Mar 16 Depreciation – Machinery 2 700

Accumulated Depreciation – Machinery 2 700 Depreciation on machine being traded-in

Disposal – Machinery 18 000

Machinery 18 000 Machine cost transferred to disposal


Disposal – Machinery 10 500 Machine accumulated depreciation transfer to disposal

Accounts Payable Control 9 075 – P V Machinery 9 075

GST Payable 825

Disposal – Machinery 8 250 Trade-in value on buying new computerised machinery

continued



589


Extract General Journal of L Cowal continued GJ . . Disposal – Machinery 750

Gain on Disposal – Machinery 750 Gain on disposal of old machine being traded-in

Machinery 25 000 GST Receivable 2 500


– P V Machinery 27 500 Cost of purchase of new machine [normally in PD journal]

15 Apr 16 Accounts Payable Control [27 500 – 9 075] 18 425 – P V Machinery 18 425

Bank [payment] 18 425 Payment of account payable [normally in CP journal]

Extract Income Statement of L Cowal


add Other Revenue Gain on Disposal – Machinery 750 less Expenses General and Administrative Depreciation – Machinery [2700+1 250] 3 950

Extract Balance Sheet of L Cowal

as at 30 June 2016


Question 12.40 2 Jan 15 30 Jun 15 30 Jun 16 30 Jun 17

1 Sep 16

2 Jan 15 (6 mths to 30 Jun 15) 2 mths from 1 Jul 16 to 1 Sep 16 1 Sep 16 (10 mths to 30 Jun 17) Machine 1 purchase Machine 1 sold Machine 3 purchase Machine 2 purchase



590


Diminishing balance depreciation method Asset: Machinery – Machine 1 Asset cost including installation 8 000







2 Jan 15 8 000

30 Jun 15 8 000 1 000 1 000 7 000

30 Jun 16 7 000 1 750 2 750 5 250

1 Sep 16 5 250 219 2 969 5 031 less Sales value 5 500 (Gain)/Loss on Disposal (469)

Straight line depreciation method Asset: Machinery – Machine 2 Asset cost including installation 10 000 less Residual value 0 = Depreciable amount $ 10 000





2 Jan 15 10 000

30 Jun 15 500 500 9 500

30 Jun 16 1 000 1 500 8 500

30 Jun 17 1 000 2 500 7 500

Diminishing balance depreciation method Asset: Machinery – Machine 3

Asset cost including installation 12 000 less Residual value n/a






1 Sep 16 12 000

30 Jun 17 12 000 3 500 3 500 8 500



591


Extract General Ledger of J Ingenuity Machinery

2 Jan 15 Bank [payment, M/c 18 000, 210 000] 18 000 1 Sep 16 Disposal – Machinery 8 000

1 Sep 16 Accounts Payable Control 12 000 30 Sep 16 Balance c/d 22 000

30 000 30 000


Accumulated Depreciation – Machinery 1 Sep 16 Disposal – Machinery 2 969 30 Jun 15 Depreciation – Machinery 1 500

30 Sep 16 Balance c/d 1 500 30 Jun 16 Depreciation – Machinery 2 750

4 250

1 Sep 16 Depreciation – Machinery 219

4 469 4 469



6 000

Disposal – Machinery 1 Sep 16 Machinery 8 000 1 Sep 16 Accum Deprec – Machinery 2 969

Gain on Disposal -Machinery 469 Bank [receipt] 5 500

8 469 8 469

Gain on Disposal – Machinery 30 Jun 17 Profit and Loss 469 1 Sep 16 Disposal – Machinery 469

Depreciation – Machinery 30 Jun 15 Accum Deprec – Machinery 1 500 30 Jun 15 Profit and Loss 1 500

30 Jun 16 Accum Deprec – Machinery 2 750 30 Jun 16 Profit and Loss 2 750

1 Sep 16 Accum Deprec – Machinery 219 30 Jun 17 Profit and Loss 4 719

30 Jun 17 Accum Deprec – Machinery 4 500

4 719 4 719

Extract Income Statement of J Ingenuity for the year ended 30 June 2017

add Other Revenue Gain on Disposal – Machinery 469 less Expenses General and Administrative Depreciation – Machinery 4 719 [219 + 1000 + 3500]

Extract Balance Sheet of J Ingenuity

as at 30 June 2017

Non-current Assets Machinery [10 000 + 12 000] 22 000 less Accumulated Depreciation 6 000 16 000 [2500 + 3500]



592

Question 12.41 1 Jan 16 30 Jun 16 30 Jun 17

1 Feb 16 1 Apr 17 1 Feb 16 (5 mths to 30 Jun 16) 1 Apr 17 (3 mths to 30 Jun 17) Machine 1 commission Machine 3 commission Machine 2 commission 9 mths from 1 Jul 16 to 1 Apr 17 Machine 1 sold

Straight line depreciation method Asset: Machinery – Machine 1 Asset cost including installation 44 273







1 Feb 16 44 273

30 Jun 16 2 600 2 600 41 673

1 Apr 17 4 680 2236 36 993 less Sales value 27 000 (Gain)/Loss on disposal 9 993

Diminishing balance depreciation method Asset: Machinery – Machine 2 Asset cost including installation 60 792 less Residual value n/a = Depreciable amount $ 60 792





1 Feb 16 60 792

30 Jun 16 60 792 6 333 6 333 54 459

30 Jun 17 54 459 13 615 19 948 40 844

30 Jun 18 40 844 10 211 30 159 30 633

Diminishing balance depreciation method Asset: Machinery – Machine 3 Asset cost including installation 42 520 less Residual value n/a = Depreciable amount $ 42 520





1 Apr 17 42 520

30 Jun 17 42 520 3 189 3 189 39 331

30 Jun 18 39 331 11 799 14 988 27 532



593

Question 12.41 continued Extract Income Statement of M Tomah


less Expenses General and Administrative Depreciation – Machinery 21 484 [4 680 + 13 615 + 3 189]

Loss on Disposal – Machinery 9 993 31 477 ]

Extract Balance Sheet of M Tomah as at 30 June 2017

Non-current Assets Machinery [60 792 + 42 520] 103 312 [19 948 + 3 189]

less Accumulated Depreciation 23 137 80 175

Question 12.42

Bendigo Fabricating Asset Register – Machinery General Ledger Account 153 Machinery Asset No. 58 Asset Type Group BF767 Multi-ripple Metal Folding machine

BFM3.5 Feeder/Extractor Serial No. 1234567

Supplier/Manufacturer Battenfeld Importers Residual Value $nil Commission Date 1 October 2015 Economic life 7.5 years Depreciation Method: Straight Line/Units of Use/Diminishing Balance (indicate) Rate p.a. 15% Asset Costs Depreciation and Carrying Amount

Date Accounts Payable and/or Particulars

Ref Month Cumul-ative

Deprec for Year

Accum Deprec

Carrying Amount

1 Oct 15 Battenfeld Import BF767 CP 28 000 28 000 30 Jun 16 Depreciation 9 months GJ 3 150 3 150 24 850 1 Feb 17 Battenfeld Import BFM3.5 CP 8 000 36 000

30 Jun 17 Depreciation for year B767 GJ 4 200 30 Jun 17 Depr’n for 5 months BFM3.5 GJ 500 7 850 28 150 30 Jun 18 Depreciation for year GJ 5 400 13 250 22 750 31 May 19 Depreciation for 11 months GJ 4 950 18 200 17 800

Less Trade-in GJ 15 000 (Gain)/Loss on Disposal GJ 2 800



594 Question 12.43 a

Diminishing Balance Depreciation Method Asset: Motor Vehicle rego KKW 443 Asset cost including installation 45 000 Less Residual value not applicable = Depreciable amount $ 45 000 Rate pa 22% on opening carrying amount





30 Apr 16 45 000 30 Jun 16 45 000 1 650 1 650 43 350 30 Jun 17 43 350 9 537 11 187 33 813 30 Jun 18 33 813 7 439 18 626 26 374 30 Jun 19 26 374 5 802 24 428 20 572 30 Jun 20 20 572 4 526 28 954 16 046 1 Aug 20 16 046 294 29 248 15 752

less trade-in 18 000 = (Gain)/Loss on Disposal (2 248) b

Extract General Journal of E Shelley GJ . . 30 Jun 20 Depreciation – Motor Vehicle 4 526

Accumulated Depreciation – Motor Vehicle 4 526 Depreciation on motor vehicle

1 Aug 20 Depreciation – Motor Vehicle 294 Accumulated Depreciation – Motor Vehicle 294 Traded motor vehicle KKW443 depreciation for 1 month Disposal – Motor Vehicle 45 000 Motor Vehicle 45 000 Motor Vehicle KKW443 cost transferred to disposal Accumulated Depreciation – Motor Vehicle 29 248 Disposal – Motor Vehicle 29 248 Motor Vehicle KKW443 accumulated deprec to disposal Accounts Payable Control 19 800 GST Payable 1 800 Disposal – Motor Vehicle 18 000 Motor Vehicle 2 trade-in value on buying motor vehicle 4 Disposal – Motor Vehicle 2 248 Gain on Disposal – Motor Vehicle 2 248 Gain on disposal of motor vehicle KKW443 traded-in



595 Question 12.43 part c continued

E Shelley Asset Register – Motor Vehicle General Ledger Account 155 Motor Vehicle Asset No. KKW443 Asset Type Group Ford Falcon J Series sedan Serial No. 123456789 Supplier/Manufacturer Steven Motors Residual Value $8000 Commission Date 30 April 2016 Economic life 4 years Depreciation Method Straight Line/Units of Use/Diminishing Balance (indicate) Rate p.a. 22%

Asset Costs Depreciation and Carrying Amount Date Accounts Payable and/or

Particulars Ref Month Cumul-

ative Deprec for Year

Accum Deprec

Carrying Amount

30 Apr 16 Steven Motors CP 45 000 45 000 30 Jun 16 Depreciation 2 months GJ 1 650 1 650 433 50 30 Jun 17 Depreciation for year GJ 9 537 11 187 33 813 30 Jun 18 Depreciation for year GJ 7 439 18 626 26 374 30 Jun 19 Depreciation for year GJ 5 802 24 428 20 572 30 Jun 20 Depreciation for year GJ 4 526 28 954 16 046 1 Aug 20 Depreciation for 1 month GJ 294 29 248 15 752

less Trade-in GJ 18 000 (Gain)/Loss on Disposal GJ (2 248)

Question 12.44

2 Jan 17 30 Jun 17 30 Jun 18 30 Jun 19 30 Sept 18

2 Jan 17 (6 mths to 30 Jun 17) 3 mths from 1 Jul 18 to 30 Sep 18 30 Sep 18 (9 mths to 30 Jun 19) Motor Vehicle 1 purchase Motor Vehicle 2 traded-in Motor Vehicle 4 purchase Motor Vehicle 2 purchase Motor Vehicle 3 purchase


Asset: Motor Vehicles – Vehicle 1 Asset cost including installation 35 000



Rate

20% on depreciable amount Depreciation p.a. $6600




2 Jan 17 35 000

30 Jun 17 3 300 3 300 31 700

30 Jun 18 6 600 9 900 25 100

30 Jun 19 6 600 16 500 18 500



596


Diminishing balance depreciation method Asset: Motor Vehicles – Vehicle 2








2 Jan 17 35 000

30 Jun 17 35 000 7 000 7 000 28 000

30 Jun 18 28 000 11 200 18 200 16 800

30 Sep 18 16 800 1 680 19 880 15 120 less Trade-in value 15 000 (Gain)/Loss on disposal 120

Diminishing balance depreciation method Asset: Motor Vehicles – Vehicle 3 Asset cost including installation 35 000







2 Jan 17 35 000

30 Jun 17 35 000 5 250 5 250 29 750

30 Jun 18 29 750 8 925 14 175 20 825

30 Jun 19 20 825 6 248 20 423 14 577

Straight line depreciation method Asset: Motor Vehicles – Vehicle 4 Asset cost including installation 42 000 less Residual value 2 000 = Depreciable amount $ 40 000

Rate p.a. 20% on depreciable amount Depreciation p.a. $8 000




30 Sep 18 42 000

30 Jun 19 6 000 6 000 36 000



597


Extract General Journal of B Marcovich GJ . . 30 Sep 18 Depreciation – Motor Vehicle 1 680

Accumulated Depreciation – Motor Vehicle 1 680 Traded motor vehicle 2 depreciation for 3 months

Disposal – Motor Vehicle 35 000

Motor Vehicle 35 000 Motor Vehicle 2 cost transferred to disposal

Accumulated Depreciation – Motor Vehicle 19 880

Disposal – Motor Vehicle 19 880 Motor Vehicle 2 accumulated depreciation to disposal

Accounts Payable Control 16 500 – Barry’s Motors 16 500

GST Payable 1 500

Disposal – Motor Vehicle 15 000 Motor Vehicle 2 trade-in value on buying motor vehicle 4

Loss on Disposal – Motor Vehicle 120

Disposal – Motor Vehicle 120 Loss on disposal of motor vehicle 2 being traded-in

Motor Vehicle 42 000 GST Receivable 4 200


– Barry’s Motors 46 200 Cost of purchase of motor vehicle 4 [normally in PD journal]

31 Oct 18 Accounts Payable Control [46 200 – 16 500] 29 700

– Barry’s Motors 29 700


Payment of account payable [normally in CP journal]

30 Jun 19 Depreciation – Motor Vehicle 18 848

Accumulated Depreciation – Motor Vehicle 18 848 Depreciation on motor vehicles [6 600 + 6 248 + 6 000] Profit and Loss 20 648 Deprec – Motor Vehicle [1 680 + 6 600+6 248+6 000] 20 528 Loss on Disposal – Motor Vehicle 120 Expenses closed out to profit and loss

Extract General Ledger of B Marcovich Motor Vehicle

2 Jan 17 Bank [payment] [35 000 *3] 105 000 30 Sep 18 Disposal – Motor Vehicle 35 000

30 Sep 18 Accounts Payable Control 42 000 Balance c/d 112 000

147 000 147 000




598


Extract General Ledger of B Marcovich continued Accumulated Depreciation – Motor Vehicle

30 Sep 18 Disposal – Motor Vehicle 19 880 30 Jun 17 Depr Mot Veh [3300+7000+5250] 15 550

Balance c/d 24 075 30 Jun 18 Depr Mot Veh [6600+11 200+8925] 26 725

42 275

30 Sep 18 Depreciation – Motor Vehicle 1 680

43 955 43 955


30 Jun 19 Depr Mot Veh [6600+6248+6000] 18 848

42 923

Accounts Payable Control 30 Sep 18 Disposal Mot Vehicle [trade-in] 16 500 30 Sep 18 Motor Vehicle [4] 46 200

31 Oct 18 Bank [payment] 29 700

46 200 46 200

Disposal – Motor Vehicle 30 Sep 18 Motor Vehicle [2] 35 000 30 Sep 18 Accum Depr’ – Motor Vehicle 19 880


Loss on Disposal – Mot Vehic 120

35 000 35 000

Depreciation – Motor Vehicle 30 Jun 17 Accum Depr – Mot Vehicle 15 550 30 Jun 17 Profit and Loss 15 550

30 Jun 18 Accum Depr – Mot Vehicle 26 725 30 Jun 18 Profit and Loss 26 725

30 Sep 18 Accum Depr – Mot Vehicle 1 680 30 Jun 19 Profit and Loss 20 528

30 Jun 19 Accum Depr – Mot Vehicle 18 848

20 528 20 528

Loss on Disposal – Motor Vehicle 30 Sep 18 Disposal – Motor Vehicle 120 30 Jun 19 Profit and Loss 120

Extract Income Statement of B Marcovich for the year ended 30 June 2019

less Expenses General and Administrative Depreciation – Motor Vehicle 20 528 Loss on Disposal – Motor Vehicle 120 20 648 ]

Extract Balance Sheet of B Marcovich as at 30 June 2019




599 Question 12.45 The time line wraps around and ‘30 Jun 17’ is repeated at the commencement of the second wrap around.

1 Jul 15 30 Jun 16 30 Jun 17 1 Dec 15 1 Dec 16 1 Dec 17 2500 to 30 Nov 16 = 208.333/mth 4000 to 30 Nov 17 = 333.333/mth 7 mth × 208.33 = 1458 5 mth = 1042 7 mth × 333.33 = 2333 5 mth = 1667

1 Jul 15 to 30 Jun 16 1 Jul 16 to 30 Jun 17

= 1458 = 1042 + 2333 = 3375

30 Jun 17 30 Jun 18 30 Jun 19

1 Dec 17 1 Dec 18 1 Dec 19 4500 to 30 Nov 18 = 375/mth 5 mth = 1667 7 mth × 375 = 2625 5 mth = 1875

1 Jul 17 to 30 Jun 18 1 Jul 18 to 30 Jun 19

1667 + 2625 = 4292 = 1875

Question 12.46 1 Jan 15 30 Jun 15 30 Jun 16 30 Jun 17 30 Jun 18

1 Apr 15 1 Oct 17 12 months 12 months

3 mths from 1 Jul 17 to 1 Oct 17 1 Oct 17(9 mths to 30 Jun 18) Computer sold Computer purchase 1 Apr 15 (3 mths to 30 Jun 15) Computer purchase


Asset: Computer




Rate p.a. 25% on depreciable amount Depreciation p.a. $13 500

Date Asset Cost




1 Apr 15 60 000

30 Jun 15 3 375 3 375 56 625

30 Jun 16 13 500 16 875 43 125

30 Jun 17 13 500 30 375 29 625

1 Oct 17 3 375 33 750 26 250 less Sale value 15 000 (Gain)/Loss on Disposal 11 250



600


Asset: Computer Asset cost including installation 75 000 less Residual value 3 000 = Depreciable amount $ 72 000

Rate p.a. 33 1/3% on depreciable amount Depreciation p.a. $24 000

Date Asset Cost




1 Oct 17 75 000 30 Jun 17 18 000 18 000 57 000 30 Jun 18 24 000 42 000 33 000 30 Jun 19 24 000 66 000 9 000 30 Jun 20 6 000 72 000 3 000 30 Jun 21 3 000 75000 0

Extract General Ledger of R Gilmour & Assoc.

Computer 1 Apr 15 Accounts Payable Control 60 000 1 Oct 17 Disposal – Computer 60 000

1 Oct 17 Accounts Payable Control 75 000

Accumulated Depreciation – Computer 1 Oct 17 Disposal – Computer 33 750 30 Jun 15 Depreciation – Computer 3 375

30 Jun 16 Depreciation – Computer 13 500

16 875


30 375

1 Oct 17 Depreciation – Computer 3 375

33 750 33 750


Disposal – Computer 1 Oct 17 Computer 60 000 1 Oct 17 Accum Deprec – Computer 33 750


Loss Disposal – Computer 11 250

60 000 60 000

Depreciation – Computer 30 Jun 15 Accum Deprec – Computer 3 375 30 Jun 15 Profit and Loss 3 375

30 Jun 16 Accum Deprec – Computer 13 500 30 Jun 16 Profit and Loss 13 500

30 Jun 17 Accum Deprec – Computer 13 500 30 Jun 17 Profit and Loss 13 500

1 Oct 17 Accum Deprec – Computer 3 375 30 Jun 18 Profit and Loss 21 375

30 Jun 18 Accum Deprec – Computer 18 000

21 375 21 375

Loss on Disposal – Computer 1 Oct 16 Disposal – Computer 11 250 30 Jun 17 Profit and Loss 11 250



601


Extract Income Statement of R Gilmour & Assoc. for the year ended 30 June 2018

less Expenses General and Administrative Depreciation – Computer 21 375 [3375 + 18 000]

Loss on Disposal – Computer 11 250 32 625 ]

Extract Balance Sheet of R Gilmour & Assoc. as at 30 June 2017

Non-current Assets Computer 60 000 less Accumulated Depreciation 30 375 29 625

Extract Balance Sheet of R Gilmour & Assoc. as at 30 June 2021

Non-current Assets Computer 75 000 less Accumulated Depreciation 75 000 0

Question 12.47 30 Jun 15 30 Jun 16 30 Jun 17

1 Mar 15 1 Mar 16 1 Mar 17 1 Mar 18 1 Mar 15 to 28 Feb 16 = 15 000 1 Mar 16 to 29 Feb 17 = 25 000 1 Mar 17 to 28 Feb 18 = 10 000 1 month = 15 000/12 = 1250/mth 1 month = 25 000/12 = 2083.33/mth 1 month = 10 000/12 = 833.33/mth

4 × 1250 8 mths × 1250 4 × 2083.33 8 mths × 2083.33 4 × 833.33 8 mths × 833.33 = 5000 = 10 000 = 8333 = 16 667 = 3333 = 6667

1 Jul 15 to 30 Jun 16 1 Jul 16 to 30 Jun 17 = 10 000 + 8333 = 18 333 = 16 667 + 3333 = 20 000

Units of use depreciation method

Asset Machinery Asset cost including installation 175 000 less Residual value 5 000 = Depreciable amount $ 170 000

Preset total units of use: 50 000 units of production Depreciation cost for 1 unit: $3.40 using depreciable amount

Date Units Used

Asset Cost




1 Mar 15 175 000

30 Jun 15 5 000 17 000 17 000 158 000

30 Jun 16 18 333 62 332 79 332 95 668

30 Jun 17 20 000 68 000 147 332 27 668

30 Jun 18 6 667 22 668 170 000 5 000



602


Extract General Ledger of Kevin Hair Machinery

1 Mar 15 Accounts Payable Control 175 000 Accumulated Depreciation – Machinery

30 Jun 15 Depreciation – Machinery 17 000 30 Jun 16 Depreciation – Machinery 62 332 79 332 30 Jun 17 Depreciation – Machinery 68 000 147 332 30 June 18 Depreciation – Machinery 22 668 170 000

Extract Balance Sheet of Kevin Hair

as at 30 June 2018


Question 12.48 30 Jun 15 30 Jun 16 30 Jun 17

1 May 15 1 May 16 1 May 17 1 May 15 to 30 Apr 16 = 240 000 km 1 May 16 to 30 Apr 17 = 220 000 1 mth = 240 000/12 = 20 000 km/mth 1 month = 220 000/12 = 18 333.33/mth

2 × 20 000 10 mths × 20 000 2 × 18 333.3 10 × 18 333.33 1 May 17 to 30 Jun 17 = 40 000 = 200 000 km = 36 667 = 183 333 km = 40 000 km

1 Jul 15 to 30 Jun 16 1 Jul 16 to 30 Jun 17 = 200 000 + 36 667 = 236 667 = 183 333 + 40 000 = 223 333

Units of use depreciation method Asset Motor Vehicles – Kenworth truck Asset cost including installation 475 000 less Residual value 75 000 = Depreciable amount $ 400 000

Preset total units of use: 500 000 km units of production Depreciation cost for 1 unit: $ 0.80 using depreciable amount

Date Units Used

Asset Cost




1 May 15 475 000

30 Jun 15 40 000 32 000 32 000 443 000

30 Jun 16 236 667 189 334 221 334 253 666

30 Jun 17 223 333 178 666 400 000 75 000



603


Extract General Journal of Samuel Keith GJ . . 30 Jun 15 Depreciation – Motor Vehicle 32 000

Accumulated Deprec – Motor Vehicle 32 000 Depreciation for the period

Extract General Ledger of Samuel Keith Motor Vehicle

1 May 15 Accounts Payable Control 475 000 Accumulated Depreciation – Motor Vehicle

30 Jun 15 Depreciation – Motor Vehic 32 000 30 Jun 16 Depreciation – Motor Vehic 189 334 221 334 30 Jun 17 Depreciation – Motor Vehic 178 666 400 000

Extract Income Statement of Samuel Keith


less Expenses General and Administrative Depreciation – Motor Vehicle 189 334 ]

Extract Balance Sheet of Samuel Keith as at 30 June 2017


Question 12.49 30 Jun 16 30 Jun 17 30 Jun 18 30 Jun 19 30 Jun 20 1 Mar 16 1 Mar 17 1 Mar 18 1 Mar 19 1 Mar 20 9000/12=750 14 000/12=1166.66 17 000/12=1416.66 10 000/12=833.33 750 × 4 750 × 8 1167 × 4 1167 × 8 1417 × 4 1417 × 8 833 × 4 833 × 8 = 3000 = 6000 = 4667 = 9333 = 5667 =11 333 = 3333 = 6667 y/e 30 Jun 16 y/e 30 Jun 17 y/e 30 Jun 18 y/e 30 Jun 19 y/e 30 Jun 20 = 3000 = 6000 + 4667 = 9333 + 5667 = 11 333 + 3333 = 6667 = 10 667 = 15 000 = 14 666



604


Units of use depreciation method Asset Machinery Asset cost including installation 275 000 less Residual value 5 000 = Depreciable amount $ 270 000

Preset total units of use: 50 000 units of production Depreciation cost for 1 unit $ 5.40 using depreciable amount

Date Units Used

Asset Cost




1 Mar 16 275 000

30 Jun 16 3 000 16 200 16 200 258 800

30 Jun 17 10 667 57 602 73 802 201 198

30 Jun 18 15 000 81 000 154 802 120 198

30 Jun 19 14 666 79 196 233 998 41 002

30 Jun 20 6 667 36 002 270 000 5 000

Extract General Journal of Henry M Thomas GJ . . 30 Jun 16 Depreciation – Machinery 57 602

Accumulated Depreciation – Machinery 57 602 Depreciation for the period

Extract Income Statement of Henry M Thomas for the year ended 30 June 2018

less Expenses General and Administrative Depreciation – Machinery 81 000 ]

Extract Balance Sheet of Henry M Thomas as at 30 June 2019




605

Chapter 13 Payroll preparation and accounting entries Question 13.1 a Fair Work Act 2009 and Fair Work Regulations 2009

• Legislation (with amendments): http://www.fwc.gov.au/index.cfm?pagename=legislationfwact • Regulations: http://www.fwc.gov.au/index.cfm?pagename=legislationfwregs • Fair Work Ombudsman – http://www.fairwork.gov.au/pages/default.aspx- includes a range of

employment related resources: best practice guides latest news, agreements, awards, agreements, calculators for leave and pay rates, templates for various employment related, industry specific information and FAQs.

b Fair Work Commission • http://www.fwc.gov.au/ – includes a range of information and resources: latest news,

agreements, awards, dispute resolution,

c awards (modern and pre-modern) • http://www.fwc.gov.au/index.cfm?pagename=awards

d enterprise agreements • https://www.fairwork.gov.au/employment/agreements/pages/default.aspx

e National Employment Standards • http://www.fairwork.gov.au/leave/national-employment-standards/pages/default.aspx Includes fact sheets.

Question 13.2

Employee Hours Worked Ordinary 1½ Equivalent

hours Total Hours

A Hotel 42 38 4 6 44

C Clarence 46 38 8 12 50

C River 45 38 7 10.5 48.5

R Country 43 38 5 7.5 45.5

I Holmes 47 38 9 13.5 51.5

Question 13.3

Employee Ordinary 1½ 2 Equivalent hours Total Hours

a 38 1 0 1.5 39.5

b 38 5 0 7.5 45.5

c 38 4.5 0 6.75 44.75

d 38 3 3 10.5 48.5

e 38 4 3 12 50

f 38 3 2.5 9.5 47.5



606

Question 13.4

Payroll Register Sheet for T Rocks for week ended 19 February 2016

Employee Hourly Ordinary Hours Tot Total Overtime Total Rate

$ Nor AL LL SL LSL Hrs Ordinary

$ 1½ 2 Equ

iv Am’nt

$ Gross

$

B Pandanus 20.00 38 38 760.00 3 4.5 90.00 850.00

Y Seasie 17.50 38 38 665.00 2 3 52.50 717.50

V Coldstream 19.00 38 38 722.00 6 9 171.00 893.00

C Modat 18.50 38 38 703.00 4 6 111.00 814.00

2 850.00 424.50 3 274.50

Question 13.5

Payroll Register Sheet for L Palmers for week ended 5 August 2016



$ 1½ 2 Equiv Am’nt

$ Gross

$

C O’Keefe 18.85 38 38 716.30 3 1 6.5 122.53 838.83

U Ditors 23.50 38 38 893.00 1 – 1.5 35.25 928.25

H Ramsey 13.35 38 38 507.30 7 3 16.5 220.28 727.58

G Skinner 17.60 38 38 668.80 4 2 10 176.00 844.80

2 785.40 554.05 3339.45

Question 13.6

Payroll Register Sheet for C Stream for week ended 16 September 2016.




$ Gross

$

K Baker 20.00 38 38 760.00 3 4.5 90.00 850.00

P Waters 22.75 30.4 7.6 38 864.50 864.50

G Park 17.01 15.2 22.8 3.99 41.99 714.25 2 3 51.04 765.43

C Golding 15.65 38.0 38 594.70 4 1 8 125.20 719.90

2933.45 266.23 3199.68



607

Question 13.7

Payroll Register Sheet for B Hunter for week ended 9 December 2016



$ 1 1½ Equiv Am’nt

$ Gross

$

M Brown 19.10 35 35 668.50 3 3 57.30 725.80

S Darrell 16.30 28 7 35 570.50 1 1 16.30 586.80

B Ciates 18.20 35 6.1 41.125 748.48 748.48

D Stanley 15.40 35 35 539.00 3 4.5 69.30 608.30

2 526.48 142.90 2 669.38

Question 13.8

Payroll Register Sheet for R Saunders for week ended 29 January 2016

Hrly Ordinary Overtime Total Deductions Net Employee Rate Amount Eq Am’nt Gross PAYG Super Medic Union Total Pay

$ Hr $ 1½ 2 Hr $ $ W’hold Hosp Fees Ded’s $

S McLean 22.50 38 855.00 3 4.5 101.25 956.25 163.00 59.85 25.00 4.00 251.85 704.40

D Charles 20.50 38 779.00 5 7.5 153.75 932.75 154.00 54.53 20.00 4.00 232.53 700.22

Q Illuka 15.00 38 570.00 570.00 50.00 39.90 25.00 4.00 118.90 451.10

S Clinton 13.50 38 513.00 6 9 121.50 634.50 38.00 35.91 4.00 77.91 556.59

2 717.00 376.50 3 093.50 405.00 190.19 70.00 16.00 681.19 2 412.31

Question 13.9

Payroll Register Sheet for P Kennedy for week ended 29 July 2016

Hrly Ordinary Overtime Total Deductions Net Employee Rate Amount Eq Am’nt Gross PAYG Super Credit Union Total Pay

$ Hr $ 1½ 2 Hr $ $ W’hold Union Fees Ded’s $

R Stefan 16.50 38 627.00 4 2 10 165.00 792.00 106.00 43.89 90.00 8.00 247.89 544.11

D John 21.00 38 798.00 3 4.5 94.50 892.50 141.00 55.86 95.00 8.00 299.86 592.64

G Jeffs 11.50 38 437.00 5 1 9.5 109.25 546.25 45.00 30.59 80.00 8.00 163.59 382.66

B Ferns 13.00 38 494.00 4 6 78.00 572.00 50.00 34.58 25.00 8.00 117.58 454.42

2 356.00 446.75 2 802.75 342.00 164.92 290.00 32.00 828.92 1 973.83



608

Question 13.10

Payroll Register Sheet for G Fitzroy for week ended 14 October 2016

Hrly Ordinary Overtime Total Deductions Net Employee Rate Amount Eq Amount Gross PAYG Super Medic Credit Total Pay

$ Hr $ 1½ 2 Hr $ $ W’hold Insur Union Ded’s $

D Brown 18.40 38 699.20 1 1.5 27.60 726.80 84.00 41.95 17.80 143.75 583.05

G Helens 15.20 38 577.60 5 7.5 114.00 691.60 74.00 34.66 150.00 258.66 432.94

A Ramsey 18.08 38 687.04 3 4.5 81.36 768.40 98.00 41.22 40.00 179.22 589.18

S Skinner 22.40 38 851.20 851.20 127.00 51.07 23.50 200.00 401.57 449.63

2 815.04 222.96 3 038.00 383.00 168.90 41.30 390.00 983.20 2 054.80

Question 13.11

Payroll Register Sheet for M Anthony for week ended 15 April 2016


$ Hr $ 1½ 2 Hr $ $ W’hold Insur Union Ded’s $

P Hudson 19.30 35 675.50 3 4.5 86.85 762.35 96.00 47.29 20.00 125.00 288.29 527.91

S Partner 25.20 35 882.00 4 1 8 201.60 1083.60 206.00 61.74 35.00 302.74 851.17

R Herd 17.80 35 623.00 6 2 13 231.40 854.40 128.00 43.61 130.00 301.61 602.45

I Victoria 21.00 35 735.00 2 3 63.00 798.00 108.00 51.45 20.00 200.00 383.86 379.45

2 915.50 582.85 3 498.35 538.00 204.09 75.00 455.00 1 272.09 2 226.27

Question 13.12

Payroll Register Sheet for Belinda Way for week ended 5 May 2016


$ Hr $ 1½ 2 Hr $ $ W’hold Hosp Union Ded’s $

M Wilson 17.00 38 646.00 2 3 51.00 697.00 76.00 32.30 40.00 20.00 168.30 528.70

C Billabong 14.50 38 551.00 1 1.5 21.75 572.75 50.00 27.55 50.00 127.55 445.20

R Moruya 16.50 38 627.00 2 3 49.50 676.50 71.00 31.35 25.00 127.35 549.15

L Tyrrell 15.50 38 589.00 3 2 8.5 131.75 720.75 82.00 29.45 25.00 136.45 584.30

2 413.00 254.00 2 667.00 279.00 120.65 65.00 95.00 559.65 2 107.35



609





M Wilson 17.00 38 646.00 646.00 65.00 32.30 40.00 20.00 157.30 488.70

I Billabong 14.50 38 551.00 3 2 8.5 123.25 674.25 71.00 27.55 50.00 148.55 525.70

R Moruya 16.50 38 627.00 1 1.5 24.75 651.75 66.00 31.35 25.00 122.35 529.40

L Tyrrell 15.50 38 589.00 2 3 46.50 635.50 63.00 29.45 25.00 117.45 518.05

2 413.00 194.50 2 607.50 265.00 120.65 65.00 95.00 545.65 2 061.85




M Wilson 17.00 38 646.00 3 4.5 76.50 722.50 82.00 32.30 40.00 20.00 174.30 548.20

I Billabong 14.50 38 551.00 3 4.5 65.25 616.25 59.00 27.55 50.00 136.55 479.70

R Moruya 16.50 38 627.00 2 3 49.50 676.50 71.00 31.35 25.00 127.35 549.15

L Tyrrell 15.50 38 589.00 1 1.5 23.25 612.25 58.00 29.45 25.00 112.45 499.80

2 413.00 214.50 2 627.50 270.00 120.65 65.00 95.00 550.65 2 076.85




M Wilson 17.00 38 646.00 1 1.5 25.50 671.50 70.00 32.30 40.00 20.00 162.30 509.20

I Billabong 14.50 38 551.00 1 1.5 21.75 572.75 50.00 27.55 50.00 127.55 445.20

R Moruya 16.50 38 627.00 3 1 6.5 107.25 734.25 76.00 31.35 25.00 132.35 601.90

L Tyrrell 15.50 38 589.00 2 3 46.50 635.50 63.00 29.45 25.00 117.45 518.05

2 413.00 201.00 2 614.00 259.00 120.65 65.00 95.00 539.65 2 074.35



610

Question 13.13

Extract Cash Payments Journal of Enrol McCooey CP 1

Date Particulars Bank Wages PAYG W’hold Super Medic

Hosp Credit Union

5 Feb 16 Wages 2 474.00 3 228.00 (484.00) (160.00) (60.00) (50.00) 12 Feb 16 Wages 2 076.00 2 760.00 (414.00) (160.00) (60.00) (50.00) 19 Feb 16 Wages 2 354.00 3 086.00 (462.00) (160.00) (60.00) (50.00) 26 Feb 16 Wages 2 233.00 2 944.00 (441.00) (160.00) (60.00) (50.00) 28 Feb 16 ATO – PAYG W’holding 1 801.00 1 801.00

Superannuation 640.00 640.00 Medical Hospital 240.00 240.00 Credit Union 200.00 200.00 12 018.00 12 018.00 0.00 0.00 0.00 0.00

cr dr

Extract General Ledger of Enrol McCooey Bank

28 Feb 16 Payments 12 018.00

Wages 28 Feb 16 Bank [payments] 12 018.00

PAYG Withholding

Superannuation Payable

Medical and Hospital Payable

Credit Union Payable

Question 13.14

General Journal of John Wood GJ 1 4 Nov 16 Wages 710.00

PAYG Withholding 336.00 Superannuation Payable 200.00 Medical and Hospital Payable 81.00 Credit Union Payable 93.00 Deductions from payroll register sheets for w/e 4/11/16

11 Nov 16 Wages 715.00 PAYG Withholding 341.00 Superannuation Payable 200.00 Medical and Hospital Payable 81.00 Credit Union Payable 93.00 Deductions from payroll register sheets for w/e 11/11/16

continued



611

Question 13.14 continued General Journal of John Wood continued GJ 1

18 Nov 16 Wages 713.00 PAYG Withholding 339.00 Superannuation Payable 200.00 Medical and Hospital Payable 81.00 Credit Union Payable 93.00 Deductions from payroll register sheets for w/e 18/11/16

25 Nov 16 Wages 730.00 PAYG Withholding 356.00 Superannuation Payable 200.00

Medical and Hospital Payable 81.00 Credit Union Payable 93.00 Deductions from payroll register sheets for w/e 25/11/16

Extract Cash Payments Journal of John Wood CP . .


Hosp Credit Union

4 Nov 16 Wages 2 213.00 2 213.00

11 Nov 16 Wages 2 257.00 2 257.00

18 Nov 16 Wages 2 239.00 2 239.00

25 Nov 16 Wages 2 372.00 2 372.00

30 Nov 16 ATO – PAYG Withholding 1 372.00 1 372.00

Superannuation 800.00 800.00

Medical Hospital 324.00 324.00

Credit Union 372.00 372.00

11 949.00 9 081.00 1 372.00 800.00 324.00 372.00

cr dr

Extract General Ledger of John Wood Bank

30 Nov 16 Payments 11 949.00

Wages 4 Nov 16 Deductions 710.00

11 Nov 16 Deductions 715.00 18 Nov 16 Deductions 713.00 25 Nov 16 Deductions 730.00 30 Nov 16 Bank [payments] 9 081.00

11 949.00

PAYG Withholding 30 Nov 16 Bank [payments] 1 372.00 4 Nov 16 Wages 336.00

11 Nov 16 Wages 341.00 18 Nov 16 Wages 339.00 25 Nov 16 Wages 356.00 1 372.00 1 372.00 continued



612


Extract General Ledger of John Wood continued Superannuation Payable

30 Nov 16 Bank [payments] 800.00 4 Nov 16 Wages 200.00 11 Nov 16 Wages 200.00 18 Nov 16 Wages 200.00 25 Nov 16 Wages 200.00 800.00 800.00 Medical and Hospital Payable

30 Nov 16 Bank [payments] 324.00 4 Nov 16 Wages 81.00 11 Nov 16 Wages 81.00 18 Nov 16 Wages 81.00 25 Nov 16 Wages 81.00 324.00 324.00 Credit Union Payable

30 Nov 16 Bank [payments] 372.00 4 Nov 16 Wages 93.00 11 Nov 16 Wages 93.00 18 Nov 16 Wages 93.00 25 Nov 16 Wages 93.00 372.00 372.00

Question 13.15

General Journal of M Shepherd GJ 1 4 Nov 16 Wages 2 701.00

PAYG Withholding 405.00 Superannuation Payable 140.00 Medical and Hospital Payable 75.00 Credit Union Payable 85.00 Payroll Clearing 1 996.00 Deductions and payroll clearing for w/e 4/11/16

11 Nov 16 Wages 2 305.00 PAYG Withholding 345.00 Superannuation Payable 140.00 Medical and Hospital Payable 75.00 Credit Union Payable 85.00 Payroll Clearing 1 660.00 Deductions and payroll clearing for w/e 11/11/16

18 Nov 16 Wages 2 290.00 PAYG Withholding 343.00 Superannuation Payable 140.00 Medical and Hospital Payable 75.00 Credit Union Payable 85.00 Payroll Clearing 1 647.00 Deductions and payroll clearing for w/e 18/11/16

continued



613

Question 13.15 continued General Journal of M Shepherd continued GJ 1

25 Nov 16 Wages 2 492.00

PAYG Withholding 373.00

Superannuation Payable 140.00

Medical and Hospital Payable 75.00

Credit Union Payable 85.00

Payroll Clearing 1 819.00

Deductions and payroll clearing for w/e 25/11/16

Extract Cash Payments Journal of M Shepherd CP . .

Date Particulars Bank Payroll Clearing

PAYG W’hold Super Medic

Hosp Credit Union

4 Nov 16 Payroll Clearing 1 996.00 1 996.00 11 Nov 16 Payroll Clearing 1 660.00 1 660.00 18 Nov 16 Payroll Clearing 1 647.00 1 647.00 25 Nov 16 Payroll Clearing 1 819.00 1 819.00 30 Nov 16 ATO – PAYG Withholding 1 466.00 1 466.00

Superannuation 560.00 560.00 Medical Hospital 300.00 300.00 Credit Union 340.00 340.00 9 788.00 7 122.00 1 466.00 560.00 300.00 340.00 cr dr

Extract General Ledger of M Shepherd

Bank 30 Nov 16 Payments 9 788.00

Payroll Clearing 30 Nov 16 Bank [payments] 7 122.00 4 Nov 16 Wages 1 996.00

11 Nov 16 Wages 1 660.00 18 Nov 16 Wages 1 647.00 25 Nov 16 Wages 1 819.00 7 122.00 7 122.00

PAYG Withholding 30 Nov 16 Bank [payments] 1 466.00 4 Nov 16 Wages 405.00

11 Nov 16 Wages 345.00 18 Nov 16 Wages 343.00 25 Nov 16 Wages 373.00 1 466.00 1 466.00 Superannuation Payable

30 Nov 16 Bank [payments] 560.00 4 Nov 16 Wages 140.00

11 Nov 16 Wages 140.00

18 Nov 16 Wages 140.00

25 Nov 16 Wages 140.00

560.00 560.00

continued



614


Extract General Ledger of M Shepherd continued Medical and Hospital Payable

30 Nov 16 Bank [payments] 300.00 4 Nov 16 Wages 75.00 11 Nov 16 Wages 75.00 18 Nov 16 Wages 75.00 25 Nov 16 Wages 75.00 300.00 300.00 Credit Union Payable

30 Nov 16 Bank [payments] 340.00 4 Nov 16 Wages 85.00 11 Nov 16 Wages 85.00 18 Nov 16 Wages 85.00 25 Nov 16 Wages 85.00 340.00 340.00 Wages

4 Nov 16 Deductions/Clearing 2 701.00 11 Nov 16 Deductions/Clearing 2 305.00 18 Nov 16 Deductions/Clearing 2 290.00 25 Nov 16 Deductions/Clearing 2 492.00

9 788.00

Question 13.16a

Extract Cash Payments Journal of Maxwell Small CP 1


Hosp Credit Union

7 Jan 16 Wages 2 630.00 3 582.00 (537.00) (245.00) (80.00) (90.00) 14 Jan 16 Wages 2 489.00 3 416.00 (512.00) (245.00) (80.00) (90.00) 21 Jan 16 Wages 2 700.00 3 664.00 (549.00) (245.00) (80.00) (90.00) 28 Jan 16 Wages 2 302.00 3 196.00 (479.00) (245.00) (80.00) (90.00) 31 Jan 16 ATO – PAYG W’holding 2 077.00 2 077.00

Superannuation 980.00 980.00 Medical Hospital 320.00 320.00 Credit Union 360.00 360.00 13 858.00 13 858.00 0.00 0.00 0.00 0.00

cr dr



615

Question 13.16b

General Journal of Maxwell Small GJ 1 7 Jan 16 Wages 952.00

PAYG Withholding 537.00 Superannuation Payable 245.00 Medical and Hospital Payable 80.00 Credit Union Payable 90.00 Deductions from payroll register sheets w/e 7/1/16 14 Jan 16 Wages 927.00

PAYG Withholding 512.00 Superannuation Payable 245.00 Medical and Hospital Payable 80.00 Credit Union Payable 90.00 Deductions from payroll register sheets w/e 14/1/16

Extract Cash Payments Journal of Maxwell Small CP 1


Hosp Credit Union

7 Jan 16 Wages 2 630.00 2 630.00 14 Jan 16 Wages 2 489.00 2 489.00 21 Jan 16 Wages 2 700.00 2 700.00 28 Jan 16 Wages 2 302.00 2 302.00 31 Jan 16 ATO – PAYG Withholding 2 077.00 2 077.00

Superannuation 980.00 980.00 Medical Hospital 320.00 320.00 Credit Union 360.00 360.00 13 858.00 10 121.00 2 077.00 980.00 320.00 360.00

cr dr

Question 13.16c

General Journal of . . . GJ 1 21 Jan 16 Wages 3 664.00

PAYG Withholding 549.00 Superannuation Payable 245.00 Medical and Hospital Payable 80.00 Credit Union Payable 90.00 Payroll Clearing 2 700.00 Deductions and payroll clearing for w/e 21/1/16

28 Jan16 Wages 3 196.00 PAYG Withholding 479.00 Superannuation Payable 245.00 Medical and Hospital Payable 80.00 Credit Union Payable 90.00 Payroll Clearing 2 302.00 Deductions and payroll clearing for w/e 28/1/16



616

Question 13.16c continued

Extract Cash Payments Journal of . . . CP . .



Hosp Credit Union

7 Jan 16 Payroll Clearing 2 630 2 630




31 Jan 16 ATO – PAYG Withholding 2 077 2 077

Superannuation 980 980

Medical Hospital 320 320

Credit Union 360 360

13 858 10 121 2 077 980 320 360

cr dr

Balance of wages expense account: Direct method $13 858.00

Indirect method $13 858.00

Clearing account method $13 858.00

Question 13.17

PAYG Withholding $

Net Pay $

$300 with no tax file number declaration 65.00 235.00 $202 with no tax-free threshold 44.00 158.00 $540 with tax-free threshold 43.00 497.00 $600 with tax-free threshold and rebate of $1173 56.00 – 22.00 = 34.00 566.00 $95 with no tax-free threshold 20.00 75.00 $115 with no tax file number 115.00 × 46.5% = 53.00 62.00 $348 with tax-free threshold and rebate of $1365 0 348.00 $427 with tax-free threshold 17.00 410.00 $54 with no tax-free threshold 11.00 43.00 $167 with tax-free threshold and rebate of $819 0 167.00

Question 13.18a

Awards and workplace agreements: An enterprise or workplace agreement includes specific conditions for one workplace whereas modern awards are a safety net of minimum conditions for a whole industry or type of job. When a workplace has an enterprise agreement, the modern award doesn’t apply. However, the pay rate in the enterprise agreement cannot be less than the pay rate in the modern award.

Employer superannuation contributions and employee superannuation contributions: Employers, in most circumstances, make a minimum payment of 9.25% of gross salary under the Superannuation Guarantee Act 1992 (Cth) to a superannuation fund on behalf of the employee. Employee contributions are generally voluntary and are often a deduction from gross pay. In some employment situations, employees may salary sacrifice and elect to have these contributions made before tax. In this event, employee gross income is reduced for tax purposes while the concessional contribution into the super fund is taxed at 15%.



617

Question 13.18a continued

Gross pay and net pay: The employee's total pay before deductions for items such as income tax, union fees etc. is gross pay. The amount an employee receives after all deductions have been made from gross pay is net pay.

Question 13.18b

Salary: Salary is usually a regular amount paid to an employee irrespective of actual hours worked.

Leave loading: Annual leave loading is an additional payment employees receive when taking paid annual leave. It is often 17.5% of the normal gross amount.

Tax-free threshold: The tax-free threshold applies to those considered to be Australian residents for tax purposes. For the financial year ending 2014 the first $18 200 of an individual’s yearly income is not taxed.

Payment summary: A payment summary shows the payments made to employees and the amounts withheld from those payments during a financial year.

Wage: Remuneration paid to employees based on an hourly rate.

Workers’ compensation A form of insurance providing wage replacement and medical benefits to employees injured in the course of employment.

Deductions: An employer withholds part of an employee's earnings for payments to other bodies, e.g. the ATO, union fees etc.

Long service leave: A period of paid leave for employees who have been working for the same business for generally 10 years

Piecework: Pieceworkers are generally paid on the basis of results achieved or components produced (e.g. a fruit picker paid on a rate per bucket of fruit picked).

PAYG withholding: Pay as you go (PAYG) withholding is a system for withholding amounts from payments made to employees and businesses so they can meet their end-of-year tax liabilities.

Medicare levy: Medicare is the scheme that gives Australian residents access to health care. To help fund the scheme, most taxpayers pay a Medicare levy of 1.5% of their taxable income.

Employee on-costs: The additional costs of hiring employees such as workers’ compensation, payroll tax etc.



618

Question 13.18b continued

Fringe benefits: Fringe benefits (e.g. a car or personal electronic device) are provided to employees or their associates in place of salary or wages. Certain fringe benefits are subject to tax.

Payroll tax: A state and territory tax that is paid from the employer's own funds and that is directly related to the wage cost of employing workers.

Pay slip: A payment summary showing the payments made to employees and the amounts withheld from those payments during a financial year.

Payroll register: A list of employees paid in each pay period, showing gross pay, deductions and net pay.

Question 13.19 General Journal of Dennis Dadios GJ 1

Direct method: 19 Feb 16 Wages 2 440.00

Bank 1 660.00 PAYG Withholding 320.00 Super 150.00 Medical 110.00 Credit Union 200.00 Record wages for w/e 19/2/16

Indirect method: 19 Feb 16 Wages 780.00

PAYG Withholding 320.00 Superannuation Payable 150.00 Medical and Hospital Payable 110.00 Credit Union Payable 200.00 Deductions from payroll register sheets w/e 19/2/16 Wages 1 660.00 Bank 1 660.00 Pay net wages for w/e 19/2/16

Clearing account method: 19 Feb 16 Wages 2 440.00

PAYG Withholding 320.00 Superannuation Payable 150.00 Medical and Hospital Payable 110.00 Credit Union Payable 200.00 Payroll Clearing 1 660.00 Deductions and payroll clearing for w/e 19/2/16 Payroll Clearing 1 660.00 Bank 1 660.00 Pay net wages for w/e 19/2/16



619

Question 13.20

Payroll Register Sheet for Y Rutherford for week ended 25 May 2016

Hrly Ordinary Overtime Total Deductions Net Employee Rate Amount Eq Am’nt Gross PAYG Super Medic Credit Total Pay

$ Hr $ 1½ 2 Hr $ $ W’hold Union Ded’s $

A Trimble 23.15 35 810.25 810.25 112.00 48.62 15.00 40.00 215.62 594.64

B Ensbey 18.00 35 630.00 2 3 54.00 684.00 73.00 37.80 70.00 180.80 503.20

C Fitzroy 12.25 35 428.75 428.75 17.00 25.73 10.00 52.73 376.03

D Victoria 15.20 35 532.00 4 2 10 152.00 684.00 73.00 31.92 100.00 204.92 479.08

2 401.00 206.00 2 607.00 275.00 144.06 25.00 210.00 654.06 1 952.94

General Journal of Y Rutherford 25 May 16 Wages 2 607.00 PAYG Withholding 275.00 Superannuation Payable 144.06 Medical and Hospital Payable 25.00 Credit Union Payable 210.00 Payroll Clearing 1 952.94 Deductions and payroll clearing for w/e 25/5/16 Payroll Clearing 1 952.94 Bank 1 952.94 Pay net wages for w/e 25/5/16

Question 13.21

Payroll Register Sheet for R Donovan for week ended 15 April 2016



E Turns 18.00 38 684.00 2 3 54.00 738.00 88.00 47.88 50.00 8.00 193.88 544.12

F Wilma 21.50 38 817.00 6 9 193.50 1 010.50 181.00 57.19 80.00 8.00 326.19 684.31

G Murray 19.00 38 722.00 4 6 114.00 836.00 121.00 50.54 8.00 179.54 656.46

H Woods 20.50 38 779.00 779.00 102.00 54.53 140.00 8.00 304.53 474.47

3 002.00 361.50 3 363.50 492.00 210.14 270.00 32.00 1 004.14 2 359.36

General Journal of R Donovan GJ 15 April 16 Wages 1 004.14 PAYG Withholding 492.00 Superannuation Payable 210.14 Medical and Hospital Payable 270.00 Credit Union Payable 32.00 Deductions from payroll register sheets w/e 15/4/16 Bank 2 359.36 Wages 2 359.36 Pay net wages for w/e 15/4/16



620

Question 13.22

(Hours Calculation) Payroll Register Sheet for V Dougherty for week ended 6 May 2016




$ Gross

$

I Holmes 22.00 35 35 770.00 5 2 11.50 253.00 1 023.00

J Argyle 19.00 28 7 35 665.00 3 1 6.50 123.50 788.50

K Palm 21.00 35 35 735.00 735.00

L Rivers 18.00 21 14 2.5 37.5 675.00 1 1.50 27.00 702.00

2 845.00 403.50 3 248.50

Payroll Register Sheet for V Dougherty

for week ended 6 May 2016

Hrly Ordinary Overtime Total Deductions Net Employee Rate Am’nt Eq Am’nt Gross PAYG Super Total Pay

$ Hr $ 1½ 2 Hr $ $ W’hold Ded’s $

I Holmes 22.00 35 770.00 5 2 11.5 253.00 1 023.00 ** ** ** **

J Argyle 19.00 35 665.00 3 1 6.5 123.50 788.50 ** ** ** **

K Palm 21.00 35 735.00 735.00 ** ** ** **

L Rivers 18.00 37.5 675.00 1 1.5 27.00 702.00 ** ** ** **

2 845.00 403.50 3 248.50 390.00 195.00 585.00 2 663.50

** = not required

Calculations – leave payments:

Gross pay $3 248.50 Sick leave [J Argyle – 7 hrs × $19.00] 133.00 Annual leave + leave loading [L Rivers – 16.5 hrs × $18.00] 297.00 Long service leave [K Palm – 35 hrs × $21.00] 735.00 Total leave costs 1 165.00 Gross to allocate to Wages $2 083.50

General Journal of V Dougherty GJ 1

6 May 16 Wages [net wage based on hours actually worked] 2 083.50 Provision for Sick Leave 133.00 Provision for Annual leave 297.00 Provision for Long Service Leave 735.00 PAYG Withholding 390.00 Superannuation Payable 195.00 Payroll Clearing 2 663.50 Wages, leave, deductions and payroll clearing w/e 6/5/16



621

Question 13.23

Payroll Register Sheet for Ralph Edwards for week ended 9 June 2016

Hrly Ordinary Overtime Total Deductions Net Employee Rate Am’nt Eq Am’nt Gross PAYG Super Empl Total Pay

$ Hr $ 1½ 2 Hr $ $ W’hold Sav Ded’s $

M Coutts 19.15 38 727.70 2 3 57.45 785.15 ** ** ** **

Nym Boida 21.85 38 830.30 4 3 12 262.20 1 092.50 ** ** ** **

O Cross 21.40 38 813.20 813.20 ** ** ** **

P Office 16.80 38 638.40 3 4.5 75.60 714.00 ** ** ** **

3 009.6 395.25 3 404.85 404.00 238.00 275.00 0.00 917.00 2 487.85

** = not required

Calculations – leave payments:

Gross pay $3 404.85 Sick leave [M Coutts – 8 hrs × $19.15] 153.20 Sick leave [O Cross – 16 hrs × $21.40] 342.40 Total leave costs 495.60 Gross to allocate to Wages $2 909.25


9 June 16 Wages [net wage based on hours actually worked] 2 909.25 Provision for Sick Leave 495.60 Bank 2 487.85 PAYG Withholding 404.00 Superannuation – Employees 238.00 Credit Union – Employees Savings 275.00 Payroll for w/e 9/6/16 30 June 16 PAYG Withholding 1 620.00 Superannuation – Employee 952.00 Credit Union – Employee Savings 1 100.00 Bank 3 672.00 Pay deductions to relevant party for June 2016

Question 13.24

Payroll Register Sheet for Allan Jones for week ended 16 July 2016

Hrly Ordinary Overtime Total Deductions Net Employee Rate Amount Eq Amount Gross PAYG Super Total Pay

$ Hr $ 1½ 2 Hr $ $ W’hold Ded’s $

Q Ideal 21.00 38 798.00 798.00 108.00 63.00 171.00 627.00

R Scahill 17.50 38 665.00 665.00 69.00 53.00 122.00 543.00

S Dorp 15.50 38 589.00 2 3 46.50 635.50 65.00 47.00 112.00 523.50

T Van 17.00 38 646.00 1 1.5 25.50 671.50 70.00 51.00 121.00 550.50

2 698.00 72.00 2 770.00 312.00 214.00 526.00 2 244.00



622

Question 13.24 continued Calculations – leave payments:

Gross pay $2 770.00 Sick leave [R Scahill – 16.5 hrs × $17.50] 288.75 Total leave costs 288.75 Gross to allocate to Wages $2 481.25

General Journal of Allan Jones GJ 1

16 July 16 Wages [net wage based on hours actually worked] 2 481.25 Provision for Sick Leave 288.75 PAYG Withholding 312.00 Superannuation Payable 214.00 Payroll Clearing 2 244.00 Wages, leave, deductions, payroll clearing w/e 16/7/16 Payroll Clearing 2 244.00 Bank 2 244.00 Pay net wages and sick leave for w/e 16/7/16)

Question 13.25

Extract Cash Payments Journal of Vic Hair CP . .

Date Particulars Bank Wages PAYG W’hold Super NOB

Medic Credit Union

Union fees

12 Aug 16 Wages 4 784.00 6 434.00 (630.00) (450.00) (135.00) (375.00) (60.00) 26 Aug 16 Wages 4 809.00 6 514.00 (685.00) (450.00) (135.00) (375.00) (60.00) 31 Aug 16 ATO – PAYG W’holding 1 315.00 1 315.00

Superannuation 900.00 900.00 Medical Hospital 270.00 270.00 Credit Union 750.00 750.00 120.00 120.00 12 018.00 12 018.00 0 0 0 0 0

cr dr

Question 13.26

Payroll Register Sheet for Marek Bowman for week ended 23 September 2016

Hrly Ordinary Overtime Total Deductions Net Employee Rate Amount Eq Amount Gross PAYG Super Medic Emp Total Pay

$ Hr $ 1½ 2 Hr $ $ W’hold Hosp Sav Ded’s $

U Schulz 15.75 35 551.25 3 4.5 70.88 622.13 60.00 38.00 15.00 30.00 143.00 479.13

V Enna 14.10 35 493.50 4 1 8 112.80 606.30 57.00 34.00 10.00 25.00 126.00 480.30

W Witzig 20.00 35 700.00 2 3 60.00 760.00 95.00 49.00 15.00 90.00 249.00 511.00

X Perts 18.20 35 637.00 6 2 13 236.60 873.60 134.00 44.00 17.00 150.00 345.00 528.60

2 381.75 480.28 2 862.03 346.00 165.00 57.00 295.00 863.00 1 999.03



623

Question 13.26 continued Direct method:

Extract Cash Payments Journal of Marek Bowman CP . .


Hosp Emp Sav

23 Sep 16 Wages 1 999.03 2 862.03 (346.00) (165.00) (57.00) (295.00)

Indirect method: General Journal of Marek Bowman GJ . .

23 Sep 16 Wages 863.00 PAYG Withholding 346.00 Superannuation Payable 165.00 Medical Payable 57.00 Employee Savings Payable 295.00 Deductions from payroll register for w/e 23/9/16

Extract Cash Payments Journal of Marek Bowman CP . .


Hosp Emp Sav

23 Sept 16 Wages 1 999.03 1 999.03

Clearing account method: General Journal of Marek Bowman GJ . .

23 Sep 16 Wages 2 862.03 PAYG Withholding 346.00 Superannuation Payable 165.00 Medical Payable 57.00 Employee Savings Payable 295.00 Payroll Clearing 1 999.03 Wages, leave, deductions, payroll clearing w/e 23/9/16

Extract Cash Payments Journal of Marek Bowman CP . . Date Particulars Bank Payroll

Clearing

23 Sept 16 Payroll Clearing 1 999.03 1 999.03

Question 13.27

Payroll Register Sheet for Henry M Thomas for week ended 7 October 2016

Hrly Ordinary Overtime Total Deductions Net Employee Rate Amount Eq Amount Gross PAYG Super Medical Credit Total Pay

$ Hr $ 1½ 2 Hr $ $ W’hold Union Ded’s $

Y Soul 13.25 35 463.75 5 2 11.5 152.38 616.13 59.00 59.00 557.13

Z Schmit 12.85 35 449.75 6 3 15 192.75 642.50 64.00 64.00 578.50

A Ferry 14.10 35 493.50 4 1 8 112.80 606.30 57.00 57.00 549.30

B Ford 14.85 35 519.75 0.00 519.75 39.00 39.00 480.75

1 926.75 457.93 2 384.68 219.00 219.00 2 165.68



624


Extract Cash Payments Journal of Henry M Thomas CP . .

Date Particulars Bank Wages PAYG W’hold

7 Oct 16 Wages 2 165.68 2 384.68 (219.00)

Indirect method: General Journal of Henry M Thomas GJ . .

7 Oct 16 Wages 219.00

PAYG Withholding 219.00

Deductions from payroll register for w/e 23/9/16


Date Particulars Bank Wages PAYG W’hold

7 Oct 16 Wages 2 165.68 2 165.68

Clearing account method: General Journal of Henry M Thomas GJ . .

7 Oct 16 Wages 2 384.68 PAYG Withholding 219.00 Payroll Clearing 2 165.68 Wages, leave, deductions, payroll clearing w/e 23/9/16



7 Oct 16 Payroll Clearing 2 165.68 2 165.68

Question 13.28 Direct method:

Extract Cash Payments Journal of Max Major CP . .


Hosp Employ Savings

7 Nov 16 Wages 1 633.00 2 385.00 (357.00) (135.00) (65.00) (195.00)

14 Nov 16 Wages 1 546.00 2 266.00 (325.00) (135.00) (65.00) (195.00)

21 Nov 16 Wages 1 686.00 2 470.00 (389.00) (135.00) (65.00) (195.00)

28 Nov 16 Wages 1 347.00 2 027.00 (285.00) (135.00) (65.00) (195.00)

30 Nov 16 ATO – PAYG W’holding 1 356.00 1 356.00

Rheem Super Fund 540.00 540.00

Lysaght Health Fund 260.00 260.00

NAB Savings 780.00 780.00

9 148.00 9 148.00 0 0 0 0



625

Question 13.28 continued Indirect method:

General Journal of Max Major GJ . . 7 Nov 16 Wages 752.00

PAYG Withholding 357.00 Superannuation Payable 135.00 Medical Payable 65.00 Employee Savings Payable 195.00 Deductions from payroll register for w/e 7/11/16 14 Nov 16 Wages 720.00



PAYG Withholding 285.00 Superannuation Payable 135.00 Medical Payable 65.00 Employee Savings Payable 195.00 Deductions from payroll register for w/e 28/11/16



Hosp Employ Savings

7 Nov 16 Wages 1 633.00 1 633.00

14 Nov 16 Wages 1 546.00 1 546.00

21 Nov 16 Wages 1 686.00 1 686.00

28 Nov 16 Wages 1 347.00 1 347.00

30 Nov 16 ATO – PAYG Withholding 1 356.00 1 356.00

Rheem Super Fund 540.00 540.00

Lysaght Health Fund 260.00 260.00

NAB Savings 780.00 780.00

9 148.00 6 212.00 1 356.00 540.00 260.00 780.00



626

Question 13.28 continued Clearing account method:

General Journal of Max Major GJ. . 7 Nov 16 Wages 2 385.00

PAYG Withholding 357.00 Superannuation Payable 135.00 Medical Payable 65.00 Employee Savings Payable 195.00 Payroll Clearing 1 633.00 Wages, deductions & payroll clearing for w/e 7/11/16

14 Nov 16 Wages 2 266.00 PAYG Withholding 325.00 Superannuation Payable 135.00 Medical Payable 65.00 Employee Savings Payable 195.00 Payroll Clearing 1 546.00 Wages, deductions & payroll clearing for w/e 14/11/16






Hosp Employ Savings

7 Nov 16 Payroll Clearing 1 633.00 1 633.00 14 Nov 16 Payroll Clearing 1 546.00 1 545.00 21 Nov 16 Payroll Clearing 1 686.00 1 686.00 28 Nov 16 Payroll Clearing 1 347.00 1 347.00 30 Nov 16 ATO – PAYG W’holding 1 356.00 1 356.00

Rheem Super Fund 540.00 540.00 Lysaght Health Fund 260.00 260.00 NAB Savings 780.00 780.00

9 148.00 6 212.00 1 356.00 540.00 260.00 780.00



627

Question 13.29

Payroll Register Sheet of Felicity Anna for week ended 4 November 2016



G Mitchel 14.30 38 543.40 1 1.5 21.45 564.85 48.00 32.60 12.00 15.00 107.60 457.25

A Mason 12.80 38 486.40 2 3 38.40 524.80 40.00 29.18 20.00 89.18 435.62

B Mathew 15.00 38 570.00 570.00 50.00 34.20 35.00 119.20 450.80

R Josh 13.90 38 528.20 3 1 6.5 90.35 618.55 59.00 31.69 30.00 120.69 497.86

2 128.00 150.20 2 278.20 197.00 127.68 47.00 65.00 436.68 1 841.52




G Mitchel 14.30 38 543.40 3 2 8.5 121.55 664.95 69.00 32.60 12.00 15.00 128.60 536.35

A Mason 12.80 38 486.40 1 1.5 19.20 505.60 36.00 29.18 20.00 85.18 420.42

B Mathew 15.00 38 570.00 570.00 50.00 34.20 35.00 119.20 450.80

R Josh 13.90 38 528.20 3 4.5 62.55 590.75 54.00 31.69 30.00 115.69 475.06

2 128.00 203.30 2 331.30 209.00 127.68 47.00 65.00 448.68 1 882.62




G Mitchel 14.30 38 543.40 543.40 44.00 32.60 12.00 15.00 103.60 439.80

A Mason 12.80 38 486.40 3 1 6.5 83.20 569.60 49.00 29.18 20.00 98.18 471.42

B Mathew 15.00 38 570.00 570.00 50.00 34.20 35.00 119.20 450.80

R Josh 13.90 38 528.20 2 3 41.70 569.90 49.00 31.69 30.00 110.69 459.21

2 128.00 124.90 2 252.90 192.00 127.68 47.00 65.00 431.68 1 821.22




G Mitchel 14.30 38 543.40 3 2 8.5 121.55 664.95 69.00 32.60 12.00 15.00 128.60 536.35

A Mason 12.80 38 486.40 2 3 38.40 524.80 40.00 29.18 20.00 89.18 435.62

B Mathew 15.00 38 570.00 2 3 45.00 615.00 59.00 34.20 35.00 128.20 486.80

R Josh 13.90 38 528.20 1 1.5 20.85 549.05 45.00 31.69 30.00 106.69 442.36

2 128.00 225.80 2 353.80 213.00 127.68 47.00 65.00 452.68 1 901.12



628


Extract Cash Payments Journal of Felicity Anna CP . .


Hosp Credit Union Date

7 Nov16 Wages 1 841.52 2 278.20 (197.00) (127.68) (47.00) (65.00)

14 Nov16 Wages 1 882.62 2 331.30 (209.00) (127.68) (47.00) (65.00)

21 Nov16 Wages 1 821.22 2 252.90 (192.00) (127.68) (47.00) (65.00)

28 Nov16 Wages 1 901.12 2 353.80 (213.00) (127.68) (47.00) (65.00)

30 Nov 16 ATO – PAYG W’holding 811.00 811.00

MRFS Super Fund 510.72 510.72

Tweed Health 188.00 188.00

BCC Union 260.00 260.00

9 216.20 9 216.20 0.00 0.00 0.00 0.00

Indirect method: General Journal of Felicity Anna GJ . .

7 Nov 16 Wages 436.68 PAYG Withholding 197.00 Superannuation Payable 127.68 Medical Payable 47.00 Credit Union Payable 65.00 Deduction from payroll for w/e 7/11/16

14 Nov 16 Wages 448.68 PAYG Withholding 209.00 Superannuation Payable 127.68 Medical Payable 47.00 Credit Union Payable 65.00 Wages, deductions & payroll clearing for w/e 14/11/16





629


Extract Cash Payments Journal of Felicity Anna CP ..


Hosp Credit Union Date

7 Nov16 Wages 1 841.52 1 841.52

14 Nov16 Wages 1 882.62 1 882.62

21 Nov16 Wages 1 821.22 1 821.22

28 Nov16 Wages 1 901.12 1 901.12

30 Nov 16 ATO – PAYG Withholding 811.00 811.00



BCC Union 260.00 260.00

9 216.20 7 446.48 811.00 510.72 188.00 260.00

Clearing account method: General Journal of Felicity Anna GJ . .

7 Nov 16 Wages 2 278.20 PAYG Withholding 197.00 Superannuation Payable 127.68 Medical Payable 47.00 Credit Union Payable 65.00 Payroll Clearing 1 841.52 Wages, deductions & payroll clearing for w/e 7/11/16






630


Extract Cash Payments Journal of Felicity Anna CP . .



Hosp Credit Union

7 Nov 16 Payroll Clearing 1 841.52 1 841.52 14 Nov 16 Payroll Clearing 1 882.62 1 882.62

21 Nov 16 Payroll Clearing 1 821.22 1 821.22

28 Nov 16 Payroll Clearing 1 901.12 1 901.12

30 Nov 16 ATO – PAYG Withholding 811.00 811.00

ATO – PAYG Withholding 510.72 510.72



9 216.20 7 446.48 811.00 510.72 188.00 260.00

Documents

Accounting: An introduction to principles & practice · Chapter 1: Accounting: ... Chapter 4: Transactions ... An introduction to principles and practice – Solutions Manual chapter