retail industry accounting using perpetual & periodic ...€¦ · bank 3 300 goods purchased...

43

CHAPTER 4

RETAIL INDUSTRY ACCOUNTING USING PERPETUAL & PERIODIC INVENTORY – GENERAL JOURNAL, GENERAL LEDGER, TRIAL BALANCE AND INTRODUCTION TO FINANCIAL REPORTS Solution 4.1 General Journal GJ1

Date Particulars Debit Credit (a) $ $

Inventory 20 000 Capital 20 000 Inventory introduced as capital

(b) Inventory 3 000 GST paid 300 Bank 3 300 Goods purchased for cash

(c) Inventory 5 000 GST paid 500 Accounts payable – K Cole 5 500 Goods purchased on credit

(d) Accounts payable – K Cole 1 980 GST paid 180

Inventory 1 800 Credit note issued for goods returned

Solution 4.2 (a)

Inventory Folio no: 110 Capital GJ1 20 000

Capital Folio no: 455

Inventory GJ1 20 000

(b) Inventory Folio no: 110

Solutions to Accounting – A Practical Approach

44

Bank GJ1 3 000

GST paid Folio no: 135

Bank GJ1 300

Bank Folio no: 125 Inventory GJ1 3 300

(c) Inventory Folio no: 110

Accounts payable – K Cole GJ1 5 000


Accounts payable – K Cole GJ1 500

Accounts Payable – K Cole Folio no: 305.1

Inventory GJ1 5 500

(d) includes (c) above Inventory Folio no: 110

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


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

Accounts Payable – K Cole Folio no: 305.1

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

Chapter 4: Retail Industry Accounting using Perpetual Inventory

45

Solution 4.3 General Journal GJ1

Particulars Debit Credit (a) $ $

Inventory 4 000 GST paid 400 Accounts payable – J Kallis 4 400 Goods purchased on credit

(b) Bank 770 GST collected 70 Sales 700 Cash sale Cost of goods sold 320 Inventory 320 Recording cost of goods sold

(c) Accounts receivable – J Hopes 880 GST collected 80 Sales 800 Recording credit sale Cost of goods sold 350 Inventory 350 Recording cost of goods sold

(d) Sales 120 GST collected 12 Accounts receivable – J Hopes 132 Recording credit note sent for goods returned Inventory 50 Cost of goods sold 50 Recording cost of goods returned

(e) Drawings 231 GST paidaccount 21 Inventory 210 Goods withdrawn for private use

Solution 4.4 (a)

Inventory Folio no: 110 Accounts payable – J Kallis GJ1 4 000 Cost of goods sold GJ1 320 Cost of goods sold GJ1 50 Cost of goods sold GJ1 350 Drawings GJ1 210 Balance c/d 3 170 4 050 4 050 Balance b/d 3 170

(b)

Cost of Good Sold Folio no: 600 Inventory GJ1 320 Inventory GJ1 50 Inventory GJ1 350 Balance c/d 620 670 670 Balance b/d 620


46

Solution 4.5 (a) General Journal Folio no: GJ1

Particulars Folio Debit Credit20X6 $ $ June 3 Accounts receivable – L Pye 115.1 484

GST collected 315 44 Sales 505 440 Goods sold on credit Cost of goods sold 600 200 Inventory 110 200 Recording cost of goods sold

8 Bank 125 704 GST collected 315 64 Sales 505 640 Goods sold for cash Cost of goods sold 600 310 Inventory 110 310 Recording cost of goods sold

10 Sales 505 90 GST collected 315 9

Accounts receivable – L Pye 115.1 99 Return of goods sold on credit Inventory 110 48 Cost of goods sold 600 48 Cost of goods returned

15 Inventory 110 1 260 GST paid 135 126 Accounts payable – J Jordan 305.1 1 386 Goods bought on credit

19 Accounts receivable – J Marsh 115.2 671 GST collected 315 61 Sales 505 610 Goods sold on credit Cost of goods sold 600 300 Inventory 110 300 Recording cost of goods sold

22 Accounts payable – J Jordan 305.1 132 GST paid 135 12 Inventory 110 120 Goods returned to supplier

25 Drawings 460 220 GST paid 135 20 Inventory 110 200 Goods withdrawn for personal use

(b)

General Ledger Inventory Folio no: 110

20X6 20X6 June 1 Balance b/d 5 690 June 3 Cost of goods sold GJ1 200

10 Cost of goods sold GJ1 48 8 Cost of goods sold GJ1 310 15 Accounts payable – J Jordan GJ1 1 260 19 Cost of goods sold GJ1 300

22 Accounts payable – J Jordan GJ1 120 25 Drawings GJ1 200 30 Balance c/d 5 868 6 998 6 998

July 1 Balance b/d 5 868

Accounts Receivable – L Pye Folio no: 115.120X6 20X6 June 3 Sales GJ1 484 June 10 Sales GJ1 99

30 Balance c/d 385 484 484

July 1 Balance b/d 385


47

Accounts Receivable – J Marsh Folio no: 115.220X6

June 19 Sales GJ1 671

Bank Folio no: 12520X6 June 8 Sales GJ1 704


20X6 20X6 June 15 Accounts payable – J Jordan GJ1 126 June 22 Accounts payable – J Jordan GJ1 12

25 Drawings GJ1 20 30 Balance c/d 94

126 126 July 1 Balance b/d 94

Accounts Payable – J Jordan Folio no: 305.1

20X6 20X6 June 22 Inventory GJ1 132 June 15 Inventory GJ1 1 386

30 Balance c/d 1 254 1 386 1 386


GST collected Folio no: 31520X6 20X6

June 10 Accounts receivable – L Pye GJ1 9 June 3 Accounts receivable – L Pye GJ1 44 8 Bank GJ1 64

30 Balance c/d 160 19 Accounts receivable – J Marsh GJ1 61 169 169 July 1 Balance b/d 160

Drawings Folio no: 460

20X6 June 25 Inventory GJ1 220

Sales Folio no: 505

20X6 20X6 June 10 Accounts receivable – L Pye GJ1 90 June 1 Balance b/d 89 762

30 Balance c/d 91 362 3 Accounts receivable – L Pye GJ1 440 8 Bank GJ1 640

19 Accounts receivable – J Marsh GJ1 610 91 452 91 452 July 1 Balance b/d 91 362

Cost of Goods Sold Folio no: 600

20X6 20X6 June 1 Balance b/d 23 468 June 10 Inventory GJ1 48

3 Inventory GJ1 200 30 Balance c/d 24 230 8 Inventory GJ1 310

19 Inventory GJ1 300 24 278 24 278


Solution 4.6 General Journal

Particulars Debit Credit 20X7 $ $

Jun 30 (a) Cost of goods sold 880

Inventory 880 Adjusting inventory account to physical stocktake

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


48

Solution 4.7 (a) General Journal of M Hagen Folio no: GJ1

Particulars Folio Debit Credit20X8 $ $ July 1 Bank 125 18 000

Capital 455 18 000 Cash introduced as capital at commencement

2 Inventory 110 6 600 GST paid 135 660 Accounts payable – S Free 305.1 7 260 Goods purchased on credit

7 Accounts receivable – A Man 115.1 1 584 GST collected 315 144 Sales 505 1 440 Goods sold on credit Cost of good sold 600 720 Inventory 110 720 Recording cost of goods sold

12 Inventory 110 950 GST paid 135 95 Bank 125 1 045 Goods purchased for cash


Accounts receivable – A Man 115.1 143 Return of goods sold on credit Inventory 110 65 Cost of goods sold 600 65 Recording cost of goods returned

18 Bank 125 198 GST paid 135 18 Inventory 110 180 Return of goods purchased for cash


(b)

General Ledger of M Hagen Inventory Folio no: 110

20X8 20X8 July 2 Accounts payable – S Free GJ1 6 600 July 7 Cost of goods sold GJ1 720

12 Bank GJ1 950 18 Bank GJ1 180 15 Cost of goods sold GJ1 65 22 Drawings GJ1 90

31 Balance c/d 6 625 7 615 7 615

Aug 1 Balance b/d 6 625

Accounts Receivable – A Man Folio no: 115.120X8 20X8 July 7 Sales GJ1 1 584 July 15 Sales GJ1 143

31 Balance c/d 1 441 1 584 1 584

Aug 1 Balance b/d 1441

Bank Folio no: 12520X8 20X8 July 1 Capital GJ1 18 000 July 12 Inventory GJ1 1 045

18 Inventory GJ1 198 31 Balance c/d 17 153 18 198 18 198



49

GST paid Folio no: 13520X8 20X8 July 2 Accounts payable – S Free GJ1 660 July 18 Bank GJ1 18

12 Bank GJ1 95 22 Drawings GJ1 9 31 Balance c/d 728 755 755


Accounts Payable – S Free Folio no: 305.1 20X8

July 2 Inventory GJ1 7 260


July 15 Accounts receivable – A Man GJ1 13 July 7 Accounts receivable – A Man GJ1 144 31 Balance c/d 131

144 144 Aug 1 Balance b/d 131


20X8 July 1 Bank GJ1 18 000


20X8 July 22 Inventory GJ1 99

Sales Folio no: 50520X8 20X8 July 15 Accounts payable – A Man GJ1 130 July 7 Accounts receivable – A Man GJ1 1 440

31 Balance c/d 1 310 1 440 1 440 Aug 1 Balance b/d 1 310


20X8 20X8 July 7 Inventory GJ1 720 July 15 Inventory GJ1 65

31 Balance c/d 655 720 720

Aug 1 Balance b/d 655 (c)

M Hagen Trial Balance as at 31 July 20X8 Debit Credit

Inventory 6 625 Accounts receivable – A Man 1 441 Bank 17 153 GST paid 728 Accounts payable – S Free 7 260 GST collected 131 Capital 18 000 Drawings 99 Sales 1 310 Cost of goods sold 655 26 701 26 701


50

Solution 4.8 (a) General Journal of R Stuart GJ1 Date Particulars Folio Debit Credit20X7 $ $ May 1 Bank 125 22 000


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


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

13 Accounts receivable – F Han 115.1 935 GST collected 315 85 Sales 505 850 Goods sold on credit Cost of goods sold 600 510 Inventory 110 510 Recording cost of goods sold

17 Sales 505 80 GST collected 315 8 Bank 125 88 Return of goods from a cash sale Inventory 110 48

Cost of goods sold 600 48 Recording cost of goods returned

24 Sales 505 120 GST collected 315 12 Accounts receivable – F Han 115.1 132 Return of goods sold on credit Inventory 110 72 Cost of goods sold 600 72 Recording cost of goods returned

(b)

General Ledger of R Stuart Inventory Folio no: 110

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

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

2 550 2 550 June 1 Balance b/d 1 560

Accounts Receivable – F Han Folio no: 115.1

20X7 20X7 May 13 Sales GJ1 935 May 24 Sales GJ1 132

31 Balance c/d 803 935 935

June 1 Balance b/d 803


51

Bank Folio no: 12520X7 20X7 May 1 Capital GJ1 22 000 May 9 Inventory GJ1 1 573

6 Sales GJ1 880 17 Sales GJ1 88 31 Balance c/d 21 219 22 880 22 880

June 1 Balance b/d 21 219

GST paid Folio no: 13520X7 May 3 Accounts payable – R Wood GJ1 100

9 Bank GJ1 143 243

Accounts Payable – R Wood Folio no: 305.1

20X7 May 3 Inventory GJ1 1 100

GST collected Folio no: 315

20X7 20X7 May 17 Bank GJ1 8 May 6 Bank GJ1 80

24 Accounts receivable – F Han GJ1 12 13 Accounts receivable – F Han GJ1 85 31 Balance c/d 145

165 165 June 1 Balance b/d 145


20X7 May 1 Bank GJ1 22 000

Sales Folio no: 505

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

24 Accounts receivable – F Han GJ1 120 13 Accounts receivable – F Han GJ1 850 31 Balance c/d 1 450 1 650 1 650 June 1 Balance b/d 1 450


20X7 20X7 May 6 Inventory GJ1 480 May 17 Inventory GJ1 48

13 Inventory GJ1 510 24 Inventory GJ1 72 31 Balance c/d 870 990 990

June 1 Balance b/d 870 (c)

Trial balance of R Stuart as at 31 May 20X7

Debit CreditInventory 1 560 Accounts receivable – F Han 803 Bank 21 219 GST paid 243 Accounts payable – R Wood 1 100 GST collected 145 Capital 22 000 Sales 1 450 Cost of goods sold 870 24 695 24 695


52

Solution 4.9 (a) General Journal of J Lang GJ1

Date Particulars Folio Debit Credit20X4 $ $ April 1 Bank 125 25 000


3 Inventory 110 1 600 GST paid 135 160 Accounts payable – I Jones 305.1 1 760 Goods purchased on credit


8 Inventory 110 1 540 GST paid 135 154 Bank 125 1 694 Goods purchased for cash

12 Accounts receivable – D Lan 115.1 451 GST collected 315 41 Sales 505 410 Goods sold on credit Cost of goods sold 600 164 Inventory 164 Recording cost of goods sold


24 Sales 505 90 GST collected 315 9 Accounts receivable – D Lan 115.1 99 Return of goods sold on credit Inventory 110 36 Cost of goods sold 600 36 Recording cost of goods returned

30 Cost of goods sold 600 122 Inventory 110 122 Adjusting inventory to physical check

(b)

General Ledger of J Lang Inventory Folio no: 110

20X4 20X4 April 3 Accounts payable – I Jones GJ1 1 600 April 6 Cost of goods sold GJ1 240

8 Bank GJ1 1 540 12 Cost of goods sold GJ1 164 24 Cost of goods sold GJ1 36 17 Drawings GJ1 150

30 Cost of goods sold GJ1 122 30 Balance c/d 2 500 3 176 3 176

May 1 Balance b/d 2 500

Accounts Receivable – D Lan Folio no: 115.120X4 20X4

April 12 Sales GJ1 451 April 24 Sales GJ1 99 30 Balance c/d 352 451 451

May 1 Balance b/d 352


53

Bank Folio no: 12520X4 20X4 April 1 Capital GJ1 25 000 April 8 Inventory GJ1 1 694

6 Sales GJ1 660 30 Balance c/d 23 966 25 660 25 660


GST paid Folio no: 13520X4 20X4 April 3 Accounts payable – I Jones GJ1 160 April 17 Drawings GJ1 15

8 Bank GJ1 154 30 Balance c/d 299 314 323


Accounts Payable – I Jones Folio no: 305.1 20X4

April 3 Inventory GJ1 1 760


20X4 20X4 April 24 Accounts receivable – D Lan GJ1 9 April 6 Bank GJ1 60

30 Balance c/d 92 12 Accounts receivable – D Lan GJ1 41 101 101 May 1 Balance b/d 92


20X4 April 1 Bank GJ1 25 000


20X4 April 17 Inventory GJ1 165

Sales Folio no: 50520X4 20X4 April 24 Accounts receivable – D Lan GJ1 90 April 6 Bank GJ1 600

30 Balance c/d 920 12 Accounts receivable – D Lan GJ1 410 1 010 1 010 May 1 Balance b/d 920


20X4 20X4 April 6 Inventory GJ1 240 April 24 Inventory GJ1 36

12 Inventory GJ1 164 30 Balance c/d 490 30 Inventory GJ1 122

526 526 May 1 Balance b/d 490

(c)

Trial balance of J Lang as at 30 April 20X4

Debit CreditInventory 2 500 Accounts receivable – D Lan 352 Bank 23 966 GST paid 299 Accounts payable – I Jones 1 760 GST collected 92 Capital 25 000 Drawings 165 Sales 920 Cost of goods sold 490 27 772 27 772


54

Solution 4.10 (a) General Journal of P Brock GJ1

Date Particulars Folio Debit Credit20X5 $ $ May 1 Inventory 110 17 000

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

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

4 Accounts receivable – R Preston 115.2 539 GST collected 315 49 Sales 505 490 Goods sold on credit Cost of goods sold 600 294 Inventory 110 294 Recording cost of goods sold

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

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

13 Sales 505 110 GST collected 315 11 Accounts receivable – J Kirby 115.1 121 Return of goods sold on credit Inventory 110 66 Cost of goods sold 600 66 Recording cost of goods returned


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

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

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

(b)

General Ledger of P Brock Inventory Folio no: 110

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

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

31 Balance c/d 18 272 18 836 18 836

Jun 1 Balance b/d 18 272


55

Accounts Receivable – J Kirby Folio no: 115.120X5 20X5 May 1 Capital GJ1 1 200 May 2 Bank GJ1 700

13 Sales GJ1 121 31 Balance c/d 379 1 200 1 200

Jun 1 Balance b/d 379

Accounts Receivable – R Preston Folio no: 115.220X5 May 4 Sales GJ1 539

Bank Folio no: 12520X5 20X5 May 1 Capital GJ1 5 000 May 8 Rent expense GJ1 1 320

2 Accounts receivable – J Kirby GJ1 700 22 Drawings GJ1 600 27 Wages GJ1 375 31 Balance c/d 3 405 5 700 5 700

Jun 1 Balance b/d 3 405

GST paid Folio no: 13520X5 20X5 May 8 Bank GJ1 120 May 16 Drawings GJ1 17

11 Accounts payable – G Poulos GJ1 177 19 Accounts payable – G Poulos GJ1 10 31 Balance c/d 270 297 297

Jun 1 Balance b/d 270

Office Equipment Folio no: 23020X5 May 1 Capital GJ1 3 400

Accounts Payable – G Poulos Folio no: 305.120X5 20X5 May 19 Inventory GJ1 110 May 11 Inventory GJ1 1 947

31 Balance c/d 1 837 1 947 1 947 June 1 Balance b/d 1 837


20X5 20X5 May 13 Accounts receivable – J Kirby GJ1 11 May 4 Accounts receivable – R Preston GJ1 49

31 Balance c/d 38 49 49 Jun 1 Balance b/d 38


20X5 May 1 Assets GJ1 26 600


20X5 May 16 Inventory GJ1 187

22 Bank GJ1 600 787

Sales Folio no: 505

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

31 Balance c/d 380 490 490


56


Cost of Goods Sold Folio no: 60020X5 20X5 May 4 Inventory GJ1 294 May13 Inventory GJ1 66

31 Balance c/d 228 294 294


Wages Folio no: 74020X5

May 27 Bank GJ1 375

Rent Expense Folio no: 745

20X5 May 8 Bank GJ1 1 200

(c)

Trial balance of P Brock as at 31 May 20X5

Debit CreditInventory 18 272 Accounts receivable – J Kirby 379 Accounts receivable – R Preston 539 Bank 3 405 GST paid 270 Office equipment 3 400 Accounts payable – G Poulos 1 837 GST collected 38 Capital 26 600 Drawings 787 Sales 380 Cost of goods sold 228 Wages 375 Rent expense 1 200 28 855 28 855


57

Solution 4.11 (a) General Journal of A Gabriel GJ1 Date Particulars Folio Debit Credit20X6 $ $ July 1 Bank 125 7 000

Plant & equipment 220 5 000 Motor vehicle 225 27 000 Loan from ABC Finance Co 320 10 000 Capital 455 29 000 Assets & liabilities at commencement

2 Inventory 110 5 000 GST paid 135 500 Bank 125 5 500 Goods bought for cash

7 Loan from ABC Finance Co 320 1 000 Bank 125 1 000 Instalment paid off loan

10 Accounts receivable – M Duffy 115.1 6 160 GST collected 315 560 Sales 505 5 600 Goods sold on credit Cost of goods sold 600 2 240 Inventory 110 2 240 Recording cost of goods sold

12 Telephone 755 300 GST paid 135 30 Accounts payable – Tosup Telephone Co 305.1 330 Account received for telephone charges

14 Inventory 110 3 400 GST paid 135 340 Accounts payable – M Morrow 305.2 3 740 Goods bought on credit

15 Sales 505 410 GST collected 315 41 Accounts receivable – M Duffy 115.1 451 Return of goods sold on credit

15 Inventory 110 164 Cost of goods sold 600 164 Recording cost of goods returned

19 Electricity 750 230 GST paid 135 23 Bank 125 253 Paid electricity account

23 Accounts payable – Tosup Telephone Co 305.1 66 GST paid 135 6 Telephone 755 60 Received credit note for overcharge

27 Accounts payable – M Morrow 305.2 132 GST paid 135 12 Inventory 110 120 Received credit note for overcharge

(b)

General Ledger of A Gabriel Inventory Folio no: 110

20X6 20X6 July 2 Bank GJ1 5 000 July 10 Cost of goods sold GJ1 2 240

14 Accounts payable – M Morrow GJ1 3 400 27 Accounts payable – M Morrow GJ1 120 15 Cost of goods sold GJ1 164 31 Balance c/d 6 204

8 564 8 564



58

Accounts Receivable – M Duffy Folio no: 115.120X6 20X6

July 10 Sales GJ1 6 160 July 15 Sales GJ1 451 31 Balance c/d 5 709 6 160 6 160


Bank Folio no: 12520X6 20X6 July 1 Capital GJ1 7 000 July 2 Inventory GJ1 5 500

7 Loan from ABC Finance Co GJ1 1 000 19 Electricity GJ1 253 31 Balance c/d 247 7 000 7 000


GST paid Folio no: 13520X6 20X6 July 2 Bank GJ1 500 July 23 Accounts payable – Tosup

Telephone Co GJ1 6

12 Accounts payable – Tosup Telephone Co

GJ1 30 27 Accounts payable – M Morrow GJ1 12

14 Accounts payable – M Morrow GJ1 340 31 Balance c/d 875 19 Bank GJ1 23

893 893 Aug 1 Balance b/d 875

Plant & Equipment Folio no: 22020X6 July 1 Capital GJ1 5 000

Motor Vehicles Folio no: 225

20X6 July 1 Capital GJ1 27 000

Accounts Payable – Tosup Telephone Co Folio no: 305.1

20X6 20X6 July 23 Telephone GJ1 66 July 12 Telephone GJ1 330

31 Balance c/d 264 330 330 Aug 1 Balance b/d 264

Accounts Payable – M Morrow Folio no: 305.2

20X6 20X6 July 27 Inventory GJ1 132 July 14 Inventory GJ1 3 740



20X6 20X6 July 15 Accounts receivable – M Duffy GJ1 41 July 10 Accounts receivable – M Duffy GJ1 560


Loan from ABC Finance Co Folio no: 320

20X6 20X6 July 7 Bank GJ1 1 000 July 1 Capital GJ1 10 000



20X6


59

July 1 Assets & liabilities GJ1 29 000

Sales Folio no: 50520X6 20X6

July 15 Accounts receivable – M Duffy GJ1 410 July 10 Accounts receivable – M Duffy GJ1 5 600 31 Balance c/d 5 190

5 600 5 600 Aug 1 Balance b/d 5 190


20X6 20X6 July 10 Inventory GJ1 2 240 July 15 Inventory GJ1 164

31 Balance c/d 2 076 2 240 2 240


Electricity Folio no: 75020X6 July 19 Bank GJ1 230

Telephone Folio no: 755

20X6 20X6 July 12 Accounts payable – Tosup

Telephone Co GJ1 300 July 23 Accounts payable – Tosup

Telephone Co GJ1 60

31 Balance c/d 240 300 300

Aug 1 Balance b/d 240 (c)

Trial balance of A Gabriel as at 31 July 20X6

Debit Credit Inventory 6 204 Accounts receivable – M Duffy 5 709 Bank 247 GST paid 875 Plant & equipment 5 000 Motor vehicles 27 000 Accounts payable – Tosup Telephone Co 264 Accounts payable – M Morrow 3 608 GST collected 519 Loan from ABC Finance Co 9 000 Capital 29 000 Sales 5 190 Cost of goods sold 2 076 Electricity 230 Telephone 240 47 581 47 581


60

Solution 4.12 (a) General Journal of T Harrison GJ1

Date Particulars Folio Debit Credit20X7 $ $ May 1 Inventory 110 37 000

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

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

3 Accounts receivable – B Brown 115.1 3 190 GST collected 315 290 Sales 505 2 900 Goods sold on credit Cost of goods sold 600 1 595 Inventory 110 1 595 Recording of cost of goods sold

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

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

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

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

16 Sales 505 220 GST collected 315 22 Accounts receivable – B Brown 115.1 242 Return of goods sold on credit Inventory 110 121 Cost of goods sold 600 121 Recording cost of goods returned

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

21 Bank 125 8 580 GST collected 315 780 Sales 505 7 800 Goods sold for cash Cost of goods sold 600 4 290 Inventory 110 4 290 Recording cost of goods sold

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

Inventory 110 370 Received credit note for overcharge

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


61

(b) General Ledger of T Harrison

Inventory Folio no: 11020X7 20X7 May 1 Capital GJ1 37 000 May 3 Cost of goods sold GJ1 1 595

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

31 Balance c/d 36 866 43 121 43 121


Accounts Receivable – B Brown Folio no: 115.120X7 20X7 May 1 Capital GJ1 1 245 May 2 Bank GJ1 1 245

3 Sales GJ1 3 190 16 Sales GJ1 242 31 Balance c/d 2 948 4 435 4 435


Bank Folio no: 12520X7 20X7 May 2 Accounts receivable – B Brown GJ1 1 245 May 1 Capital GJ1 5 900

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



GST paid Folio no: 13520X7 20X7

May 10 Accounts payable – Apex Motors GJ1 3 300 May 25 Accounts payable – C Castle GJ1 37 14 Bank GJ1 50 31 Balance c/d 3 913 19 Accounts payable – C Castle GJ1 600

3 950 3 950 June 1 Balance b/d 3 913

Land & Buildings Folio no: 20520X7 May 1 Capital GJ1 278 000

Motor Vehicles Folio no: 22520X7 20X7 May 1 Capital GJ1 43 000 May 8 Bank GJ1 20 000

10 Accounts payable – Alex Motors GJ1 33 000 31 Balance c/d 56 000 76 000 76 000


Accounts Payable – F Ferris Folio no: 305.1 20X7

May 1 Capital GJ1 3 890

Accounts Payable – Apex Motors Folio no: 305.2

20X7 May 10 Motor vehicle GJ1 36 300

Accounts Payable – C Castle Folio no: 305.3

20X7 20X7 May 25 Inventory GJ1 407 May 19 Inventory GJ1 6 600

31 Balance c/d 6 193 6 600 6 600 June 1 Balance b/d 6 193


62


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

8 Bank GJ1 2 000 21 Bank GJ1 780 7 045 7 045 June 1 Balance b/d 3 348


20X7 May 1 Assets & liabilities GJ1 345 780

Sales Folio no: 505

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

31 Balance c/d 10 480 21 Bank GJ1 7 800 10 700 10 700 June 1 Balance b/d 10 480

Rent Income Folio no: 510

20X7 May 6 Bank GJ1 3 000


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

21 Inventory GJ1 4 290 31 Balance c/d 5 764 5 885 5 885


Stationery Folio no: 76220X7

May 14 Bank GJ1 500

(c)

Trial balance of T Harrison as at 31 May 20X7

Debit Credit Inventory 36 866 Accounts receivable – B Brown 2 948 Bank 25 000 GST paid 3 913 Land & buildings 278 000 Motor vehicles 56 000 Accounts payable – F Ferris 3 890 Accounts payable – Apex Motors 36 300 Accounts payable – C Castle 6 193 GST collected 3 348 Capital 345 780 Sales 10 480 Rent income 3 000 Cost of goods sold 5 764 Stationery 500 408 991 408 991


63

Solution 4.13 (a) General Journal of S Mo Folio no: GJ1

Particulars Folio Debit Credit20X9 $ $ July 1 Bank 125 20 000


3 Purchases 600 5 250 GST paid 135 525 Accounts payable – B Wadd 305.1 5 775 Goods purchased on credit

8 Accounts receivable – K Chisholm 115.1 1 078 GST collected 315 98 Sales 505 980 Goods sold on credit

13 Purchases 600 600 GST paid 135 60 Bank 125 660 Goods purchased for cash


Accounts receivable – K Chisholm 115.1 231 Return of goods sold on credit

19 Bank 125 165 GST paid 135 15 Purchases 600 150 Return of goods purchased for cash

23 Drawings 460 88 GST paid 135 8 Purchases 600 80 Goods withdrawn for personal use

(b)

General Ledger of S Mo Accounts Receivable – K Chisholm Folio no: 115.1

20X9 20X9 July 8 Sales GJ1 1 078 July 16 Sales GJ1 231

31 Balance c/d 847 10 78 1 078


Bank Folio no: 12520X9 20X9 July 1 Capital GJ1 20 000 July 13 Purchases GJ1 660

19 Purchases GJ1 165 31 Balance c/d 19 505 20 165 20 165


GST paid Folio no: 13520X9 20X9 July 3 Accounts payable – B Wadd GJ1 525 July 19 Bank GJ1 15

13 Bank GJ1 60 23 Drawings GJ1 8 31 Balance c/d 562 585 585


Accounts Payable – B Wadd Folio no: 305.1 20X9

July 3 Purchases GJ1 5 775


July 16 Accounts receivable – K Chisholm

GJ1 21 July 8 Accounts receivable – K Chisholm

GJ1 98


64

31 Balance c/d 77 98 98


Capital Folio no: 455 20X9

July 1 Bank GJ1 20 000


20X9 July 23 Purchases GJ1 88

Sales Folio no: 50520X9 20X9 July 16 Accounts payable – K Chisholm GJ1 210 July 8 Accounts receivable – K

Chisholm GJ1 980


Purchases Folio no: 600

20X9 20X9 July 3 Accounts payable – B Wadd GJ1 5 250 July 18 Bank GJ1 150

13 Bank GJ1 600 23 Drawings GJ1 80 31 Balance c/d 5 620 5 850 5 850

Aug 1 Balance b/d 5 620 (c)

S Mo Trial Balance as at 31 July 20X9 Debit Credit

Accounts receivable – K Chisholm 847 Bank 19 505 GST paid 562 Accounts payable – B Wadd 5 775 GST collected 77 Capital 20 000 Drawings 88 Sales 770 Purchases 5 620 26 622 26 622

Solution 4.14 (a) General Journal of S Khan GJ1

Date Particulars Folio Debit Credit20X4 $ $ April 1 Bank 125 30 000


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

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

10 Purchases 600 780 GST paid 135 78 Bank 125 858


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Goods purchased for cash 14 Accounts receivable – N Kelly 115.1 583

GST collected 315 53 Sales 505 530 Goods sold on credit

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

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

(b)

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

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

30 Balance c/d 473 583 583


Bank Folio no: 12520X4 20X4 April 1 Capital GJ1 30 000 April 10 Purchases GJ1 858



GST paid Folio no: 13520X4 20X4 April 5 Accounts payable – J James GJ1 180 April 19 Drawings GJ1 17

10 Bank GJ1 78 30 Balance c/d 241 258 258


Accounts Payable – J James Folio no: 305.1 20X4

April 5 Purchases GJ1 1 980


20X4 20X4 April 26 Accounts receivable – N Kelly GJ1 10 April 8 Bank GJ1 80

30 Balance c/d 123 14 Accounts receivable – N Kelly GJ1 53 133 133 May 1 Balance b/d 123


20X4 April 1 Bank GJ1 30 000


20X4 April 17 Purchases GJ1 187

Sales Folio no: 50520X4 20X4 April 26 Accounts receivable – N Kelly GJ1 100 April 8 Bank GJ1 800

30 Balance c/d 1 230 14 Accounts receivable – N Kelly GJ1 530 1 330 1 330 May 1 Balance b/d 1 230


66

Purchases Folio no: 60020X4 20X4 April 5 Accounts payable – J James GJ1 1 800 April 19 Drawings GJ1 170

10 Bank GJ1 780 30 Balance c/d 2 410 2 580 2 580

May 1 Balance b/d 2 410 (c)

Trial balance of S Khan as at 30 April 20X4

Debit CreditAccounts receivable – N Kelly 473 Bank 30 022 GST paid 241 Accounts payable – J James 1 980 GST collected 123 Capital 30 000 Drawings 187 Sales 1 230 Purchases 2 410 33 333 33 333

Solution 4.15 (a)

B Sher Income Statement for period ending 30 June 20X6

$ $ Sales 32 000 Less Cost of goods sold 9 400 Gross profit 22 600 Less Expenses Advertising 1 200 Motor vehicle expenses 4 600 Wages 6 800 12 600 Net profit 10 000

(b) B Sher

Balance Sheet as at 30 June 20X6 Assets Liabilities Inventory 10 000 Accounts payable – S Free 900 Bank 9 000 GST collected 3 500 Accounts receivable – B Kim 800 Loan from Sharp Finance 13 000 GST paid 800 17 400 Furniture & equipment 15 000 Motor vehicle 28 000 63 600 Owners’ Equity Capital 36 200 Add Net profit 10 000 46 200 63 600 63 600 (c)

B Sher Balance Sheet as at 30 June 20X6

Assets Inventory 10 000 Bank 9 000 Accounts receivable – B Kim 800 GST paid 800 Furniture & equipment 15 000 Motor vehicle 28 000 Total Assets 63 600

Less Liabilities Accounts payable – S Free 900 GST collected 3 500 Loan from Sharp Finance 13 000


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Total Liabilities 17 400 Net Assets 46 200 Owners’ Equity 46 200 Capital 36 200 Net profit 10 000

Solution 4.16 (a)

Perrin and Sons Income Statement for period ending 30 June 20X7

$ $ Sales 123 500 Less Cost of goods sold 38 900 Gross profit 84 600 Add Other income Interest income 1 100 1 100 85 700 Less Expenses Freight outwards 2 250 Advertising 3 690 Salaries & wages 21 480 Postage & telephone 2 800 Motor vehicle expenses 10 560 40 780 Net profit 44 920

(b) Perrin and Sons

Balance Sheet as at 30 June 20X7 Assets Inventory 3 500 Bank 2 900 Accounts receivable – S Hume 640 Petty cash 200 GST paid 620 Motor vehicle 42 000 Computer equipment 11 400 Total Assets 61 260

Less Liabilities Accounts payable – M Brown 880 GST collected 3 440 Total Liabilities 4 320 Net Assets 56 940 Owners’ Equity Capital 12 020 Net profit 44 920 56 940

Solution 4.17 (a)

Wright Bros Income Statement for period ending 30 June 20X8

$ $ Sales 116 700 Less Cost of goods sold 41 700 Gross profit 75 000 Add Other income Commission income 3 780 3 780 78 780 Less Expenses Sales person’s commission 2 500 Advertising 1 450 Salaries & wages 19 860 Light & power 6 390 Repairs & maintenance 5 160


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35 360 Net profit 43 420

(b)

Wright Bros Balance Sheet as at 30 June 20X8

Assets Inventory 20 000 Bank 4 800 Accounts receivable – R Gaul 1 230 Premises 130 000 Plant 34 000 Patents 16 000 GST paid 5 400 Total Assets 211 430

Less Liabilities Accounts payable – B Preston 3 100 GST collected 2 000 Total Liabilities 5 100 Net Assets 206 330 Owners’ Equity Capital 162 910 Net profit 43 420 206 330

retail industry accounting using perpetual & periodic ...€¦ · bank 3 300 goods purchased...

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