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
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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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 1 2
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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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 1 3
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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)’.
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 1 4
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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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 1 5
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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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 2 6
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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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 2 7
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Question 2.6 Assets $ = Liabilities $ + Owner’s Equity $
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
Question 2.7 Assets $ = Liabilities $ + Owner’s Equity $
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
Question 2.8 Assets $ = Liabilities $ + Owner’s Equity $
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
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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
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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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 2 10
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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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 2 11
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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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 2 12
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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
Non-current Liabilities
Mortgage 250
Loan from V Alan 251
3xx Owner’s Equity Capital 300
[credit]
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 2 13
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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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 2 14
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Question 2.20 Account Name Group Name Group
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 2 15
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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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 2 16
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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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 2 17
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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
Question 2.24 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 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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 2 18
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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.
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 2 19
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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
Bank debit CA increase
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
Bank credit CA decrease
Sold inventory on credit
Accounts Receivable debit CA increase
Sales credit R increase
Cost of Goods Sold debit E increase
Inventory credit CA decrease
Question 2.27 Business
Transaction Account Names Debit or
Credit Chart of
Account Group Account increase
or decrease Commenced business with cash and inventory
Bank debit CA increase
Inventory debit CA increase
Capital credit OE increase
Purchased stationery with business debit card
Stationery debit E increase
Bank credit CA decrease
Sold inventory on credit
Accounts Receivable debit CA increase
Sales credit R increase
Cost of Goods Sold debit E increase
Inventory credit CA decrease
Purchased motor vehicle with bank cheque
Motor Vehicle debit NCA increase
Bank credit CA decrease
Purchased inventory on credit
Inventory debit CA increase
Accounts Payable credit CL increase
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 2 20
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Question 2.28 Business
Transaction Account Names Debit or
Credit Chart of
Account Group Account increase
or decrease Remitted salary to receptionist
Salary – Receptionist debit E increase
Bank credit CA decrease
Repairs to doctors motor vehicle on credit
Motor Vehicle Expense debit E increase
Accounts Payable credit CL increase
Remitted fees were received from consultations
Bank debit CA increase
Fees – Consultations credit R increase
Received stationery on credit
Stationery debit E increase
Accounts Payable credit CL increase
Remitted payment for surgical supplies previously received on credit
Accounts Payable debit CL decrease
Bank credit CA decrease
Question 2.29 Business
Transaction Account Names Debit or
Credit Chart of
Account Group Account increase
or decrease Dental fees deposited
Bank debit CA increase
Dental Fees credit R increase
Remitted salary for dental nurse
Salary – Dental Nurse debit E increase
Bank credit CA decrease
Purchased several types of filling materials on credit
Filling Materials debit E increase
Accounts Payable credit CL increase
Purchased new surgery equipment which had to be paid by debit card
Surgery Equipment debit NCA increase
Bank credit CA decrease
Used banking facilities to pay for telephone account
Telephone debit E increase
Bank credit CA decrease
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 2 21
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Question 2.30 Business
Transaction Account Names Debit or
Credit Chart of
Account Group Account increase
or decrease Remitted wages
Wages debit E increase
Bank credit CA decrease
Purchased inventory on credit
Inventory debit CA increase
Accounts Payable credit CL increase
Sale of inventory on credit
Accounts Receivable debit CA increase
Sales credit R increase
Cost of Goods Sold debit E increase
Inventory credit CA decrease
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
Bank credit CA decrease
Question 2.31 Business
Transaction Account Names Debit or
Credit Chart of
Account Group Account increase
or decrease Remittance for rent was received
Bank debit CA increase
Rent Received credit R increase
Sale of inventory for cash
Bank debit CA increase
Sales credit R increase
Cost of Goods Sold debit E increase
Inventory credit CA decrease
Purchased inventory on credit
Inventory debit CA increase
Accounts Payable credit CL increase
Remittance processed to supplier for inventory purchased on credit last month Accounts Payable debit CL decrease
Bank credit CA decrease
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 2 22
© Cengage Learning Australia 2013
Question 2.32 Business
Transaction Account Names Debit or
Credit Chart of
Account Group Account increase
or decrease Commenced business with cash and motor vehicle
Bank debit CA increase
Motor Vehicle debit NCA increase
Capital credit OE increase
Purchase of inventory paying with business debit card
Inventory debit CA increase
Bank credit CA decrease
Sale of inventory on credit
Accounts Receivable debit CA increase
Sales credit R increase
Cost of Goods Sold debit E increase
Inventory credit CA decrease
Purchased inventory on credit Inventory debit CA increase
Accounts Payable credit CL increase
Purchase of machinery on credit
Machinery debit NCA increase
Accounts Payable credit CL increase
Remittance received for sale of inventory Bank debit CA increase
Accounts Receivable credit CA decrease
Purchased stationery on credit
Stationery debit E increase
Accounts Payable credit CL increase
Salaries remitted Salaries debit E increase
Bank credit CA decrease
Mortgage funds remitted from bank
Bank debit CA increase
Mortgage from Bank credit NCL increase
Used debit card to buy equipment Equipment debit NCA increase
Bank credit CA decrease
Paid for stationery purchased earlier on credit
Accounts Payable debit CL decrease
Bank credit CA decrease
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
Accounts Receivable credit CA decrease
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 2 23
© Cengage Learning Australia 2013
Question 2.33 Business
Transaction Account Names Debit or
Credit Chart of
Account Group Account increase
or decrease Purchased inventory on credit
Inventory debit CA increase
Accounts Payable credit CL increase
Purchased motor vehicle with bank cheque
Motor Vehicle debit NCA increase
Bank credit CA decrease
Remitted funds for payment of rent
Rent debit E increase
Bank credit CA decrease
Funds for a loan were received from Credit Union Bank debit CA increase
Credit Union Loan credit NCL increase
Cash sale of inventory
Bank debit CA increase
Sales credit R increase
Cost of Goods Sold debit E increase
Inventory credit CA decrease
Additional computer and machinery introduced by owner Computer debit NCA increase
Machinery debit NCA increase
Capital credit OE increase
Remittance processed to supplier for inventory purchased earlier on credit
Accounts Payable debit CL decrease
Bank credit CA decrease
Sale of inventory on credit Accounts Receivable debit CA increase
Sales credit R increase
Cost of Goods Sold debit E increase
Inventory credit CA decrease
Paid for advertising by electronic remittance
Advertising debit E increase
Bank credit CA decrease
Received cheque from customer for inventory sold earlier on credit Bank debit CA increase
Accounts Receivable credit CA decrease
Used debit card to buy office equipment Office Equipment debit NCA increase
Bank credit CA decrease
Electronic remittance received for commission
Bank debit CA increase
Commission Received credit R increase
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 24
© Cengage Learning Australia 2013
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
Assets on commencement of business
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 25
© Cengage Learning Australia 2013
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 26
© Cengage Learning Australia 2013
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 27
© Cengage Learning Australia 2013
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 28
© Cengage Learning Australia 2013
Question 3.6 perpetual inventory applies
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 29
© Cengage Learning Australia 2013
Question 3.7 periodic inventory applies
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 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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 30
© Cengage Learning Australia 2013
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 31
© Cengage Learning Australia 2013
Question 3.10 perpetual inventory applies
General Journal of P Barrack GJ 1 Date Particulars Ref Debit Credit
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 32
© Cengage Learning Australia 2013
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
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 Inventory 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 35 000
46 000
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 33
© Cengage Learning Australia 2013
Question 3.10 finalised (perpetual inventory applies)
General Ledger of P Barrack Bank 100
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 34
© Cengage Learning Australia 2013
Question 3.11 periodic inventory applies
General Journal of P Barrack GJ 1 Date Particulars Ref Debit Credit
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 35
© Cengage Learning Australia 2013
Question 3.11 continued (periodic inventory applies)
General Ledger of P Barrack Bank 100
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 36
© Cengage Learning Australia 2013
Question 3.11 finalised (periodic inventory applies)
General Ledger of P Barrack Bank 100
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 37
© Cengage Learning Australia 2013
Question 3.12 perpetual inventory applies
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
Question 3.13 periodic inventory applies
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 38
© Cengage Learning Australia 2013
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 39
© Cengage Learning Australia 2013
Question 3.14 continued (perpetual inventory applies)
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
13 Sep 16 Bank [payment] GJ1 420
22 Sep 16 Accounts Payable Ctrl GJ1 800
23 Sep 16 Bank [payment] GJ1 360
27 Sep 16 Accounts Payable Ctrl GJ1 327
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
7 Sep 16 Capital GJ1 15 000
continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 40
© Cengage Learning Australia 2013
Question 3.14 continued (perpetual inventory applies)
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 41
© Cengage Learning Australia 2013
Question 3.14 continued (periodic inventory applies)
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
4 Sep 16 Bank [payment] GJ1 210
10 Sep 16 Accounts Payable Ctrl GJ1 290
13 Sep 16 Bank [payment] GJ1 420
22 Sep 16 Accounts Payable Ctrl GJ1 800
23 Sep 16 Bank [payment] GJ1 360
27 Sep 16 Accounts Payable Ctrl GJ1 327
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 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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 42
© Cengage Learning Australia 2013
Question 3.14 continued (periodic inventory applies)
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
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 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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 43
© Cengage Learning Australia 2013
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 44
© Cengage Learning Australia 2013
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
Question 3.15 perpetual inventory applies
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 45
© Cengage Learning Australia 2013
Question 3.15 continued (perpetual inventory applies)
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 46
© Cengage Learning Australia 2013
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
Question 3.15 periodic inventory applies
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 47
© Cengage Learning Australia 2013
Question 3.15 continued (periodic inventory applies)
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 48
© Cengage Learning Australia 2013
Question 3.15 finalised (periodic inventory applies)
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
GST Receivable 13 205 GST Receivable 13 205
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 49
© Cengage Learning Australia 2013
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
GST Receivable 13 525 GST Receivable 12 525
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
GST Receivable 13 220 GST Receivable 12 220
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 50
© Cengage Learning Australia 2013
Question 3.16 continued (perpetual 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 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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 51
© Cengage Learning Australia 2013
Question 3.16 continued (perpetual inventory applies)
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
Motor Vehicle 17 13 800
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 52
© Cengage Learning Australia 2013
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 3 53
© Cengage Learning Australia 2013
Question 3.16 continued (periodic inventory applies)
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 54
© Cengage Learning Australia 2013
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 55
© Cengage Learning Australia 2013
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.
Question 4.9 periodic inventory applies
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 56
© Cengage Learning Australia 2013
Question 4.9 continued (periodic inventory applies)
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 57
© Cengage Learning Australia 2013
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
11 Aug 16 Accounts Receivable GJ1 45.00
12 Aug 16 Accounts Receivable GJ1 65.50
15 Aug 16 Accounts Receivable GJ1 39.60
22 Aug 16 Accounts Receivable GJ1 73.90
26 Aug 16 Accounts Receivable GJ1 54.30
377.30 377.30
1 Sep 16 Balance b/d 372.60 continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 58
© Cengage Learning Australia 2013
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
10 Aug 16 Accounts Receivable GJ1 162.00
12 Aug 16 Accounts Receivable GJ1 655.00
15 Aug 16 Accounts Receivable GJ1 396.00
22 Aug 16 Accounts Receivable GJ1 739.00
26 Aug 16 Accounts Receivable GJ1 543.00
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 59
© Cengage Learning Australia 2013
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
Question 4.11 perpetual inventory applies
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 60
© Cengage Learning Australia 2013
Question 4.12 periodic inventory applies
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 61
© Cengage Learning Australia 2013
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 62
© Cengage Learning Australia 2013
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
8 Jul 16 Accounts Payable Ctrl GJ1 38
11 Jul 16 Accounts Payable Ctrl GJ1 12
20 Jul 16 Accounts Payable Ctrl GJ1 35
23 Jul 16 Accounts Payable Ctrl GJ1 6
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
8 Jul 16 Accounts Payable Ctrl GJ1 380
11 Jul 16 Accounts Payable Ctrl GJ1 120
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
23 Jul 16 Accounts Payable Ctrl GJ1 60
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 63
© Cengage Learning Australia 2013
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
Question 4.13 periodic inventory applies
Purchases Journal of L Andrews PJ 1 Date Inv
Adj Accounts Payable and / or
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 64
© Cengage Learning Australia 2013
Question 4.13 continued (periodic inventory applies)
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
Question 4.14 perpetual inventory applies
Purchases Journal of S Nada PJ 1 Date Inv
Adj Accounts Payable and / or
Particulars Ref Account
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 65
© Cengage Learning Australia 2013
Question 4.14 finalised
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
Question 4.15 periodic inventory applies
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 66
© Cengage Learning Australia 2013
Question 4.15 periodic inventory applies
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 67
© Cengage Learning Australia 2013
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
26 Oct 16 Bank [receipt] GJ1 25
Bank [receipt] GJ1 16
Bank [receipt] GJ1 45
27 Oct 16 Bank [receipt] GJ1 64
269
Sales 400 3 Oct 16 Bank [receipt] GJ1 170 26 Oct 16 Bank [receipt] GJ1 250
Bank [receipt] GJ1 160
Bank [receipt] GJ1 450
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 68
© Cengage Learning Australia 2013
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
Rec Drawer and / or Particulars Ref Bank Sales GST
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 69
© Cengage Learning Australia 2013
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
Question 4.17 periodic inventory applies
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 70
© Cengage Learning Australia 2013
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 71
© Cengage Learning Australia 2013
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
5 821 GST Receivable 101
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 72
© Cengage Learning Australia 2013
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
Question 4.18 periodic inventory applies
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 73
© Cengage Learning Australia 2013
Question 4.18 continued (periodic inventory applies)
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
Question 4.18 perpetual inventory applies
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 74
© Cengage Learning Australia 2013
Question 4.18 continued (perpetual inventory applies)
Extract General Ledger of S Melissa Bank 100
31 May 16 Payments CP
7 373 Inventory 101
31 May 16 Bank [payment] CP
1 590 GST Receivable 102
31 May 16 Bank [payment] CP
291 Electricity 540
31 May 16 Bank [payment] CP
570 Wages 541
31 May 16 Bank [payment] CP
3 223 Vehicle Expense 542
31 May 16 Bank [payment] CP
750 Rates 543
31 May 16 Bank [payment] CP
949
Extract Trial Balance of S Melissa as at 31 May 2016
Bank 100 7 373
Inventory 101 1 590
GST Receivable 102 291
Electricity 540 570
Wages 541 3 223
Vehicle Expense 542 750
Rates 543 949
7 373 7 373
Question 4.19 periodic inventory applies
Cash Receipts Journal of P Rosso CR 1 Date Rmt
Rec Drawer and / or Particulars Ref Bank Sales GST
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 75
© Cengage Learning Australia 2013
Question 4.19 continued (periodic inventory applies)
Cash Payments Journal of P Rosso CP 1 Date Rmt
Pmt Payee and / or Particulars Ref Bank Purch-
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 76
© Cengage Learning Australia 2013
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 77
© Cengage Learning Australia 2013
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 78
© Cengage Learning Australia 2013
Question 4.20 continued (perpetual inventory applies)
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 79
© Cengage Learning Australia 2013
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
Accounts Receivable and / or Particulars
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
Rec Drawer and / or Particulars Ref Bank Sales GST
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 80
© Cengage Learning Australia 2013
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
31 Jan 16 Receipts CR1 8 888 31 Jan 16 Payments CP1 4 379
Balance c/d 4 509
8 888 8 888
1 Feb 16 Balance b/d 4 509
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 81
© Cengage Learning Australia 2013
Question 4.21 continued (perpetual inventory applies)
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
Rent Received 410 31 Jan 16 Bank [receipt] CR1 1 230
Cost of Goods Sold 500 31 Jan 16 Inventory SJ1 2 398
Inventory CR1 864 3 262
Wages 540 31 Jan 16 Bank [payment] CP1 1 453
Extract Trial Balance of C Noble
as at 31 January 2016
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
Question 4.21 periodic inventory applies
Sales Journal of C Noble SJ 1 Date Inv
Adj Accounts Receivable and / or
Particulars Ref Account
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 82
© Cengage Learning Australia 2013
Question 4.21 continued (periodic inventory applies)
Purchases Journal of C Noble PJ 1 Date Inv
Adj Accounts Payable and / or
Particulars Ref Account
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
Drawer and / or Particulars Ref Bank Sales GST Payab
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
31 Jan 16 Receipts CR1 8 888 31 Jan 16 Payments CP1 4 379
Balance c/d 4 509
8 888 8 888
1 Feb 16 Balance b/d 4 509
Accounts Receivable Control 101 31 Jan 16 Sales SJ1 5 533 31 Jan 16 Bank [receipt] CR1 5 533
GST Receivable 102 31 Jan 16 Accounts Payable Ctrl PJ1 239
Bank [payment] CP1 82
321 continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 83
© Cengage Learning Australia 2013
Question 4.21 continued (periodic inventory applies)
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
1 Feb 16 Balance b/d 605
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
Rent Received 410 31 Jan 16 Bank [receipt] CR1 1 230
Purchases 500 31 Jan 16 Accounts Payable Ctrl PJ1 980
Bank [payment] CP1 820 1 800
Wages 540 31 Jan 16 Bank [payment] CP1 1 453
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 84
© Cengage Learning Australia 2013
Question 4.22 perpetual inventory applies
Sales Journal of A Gregory SJ 1 Date Inv
Adj Accounts Receivable and / or
Particulars Ref Account
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
Adj Accounts Payable and / or
Particulars Ref Account
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
Drawer and / or Particulars Ref Bank Sales GST Payab
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
Pmt Payee and / or Particulars Ref Bank Inven-
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 85
© Cengage Learning Australia 2013
Question 4.22 continued (perpetual inventory applies)
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
1 Aug 16 Balance b/d 1 332
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
1 Aug 16 Balance b/d 2 662
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 86
© Cengage Learning Australia 2013
Question 4.22 continued (perpetual inventory applies)
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
Accounts Receivable and / or Particulars
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 87
© Cengage Learning Australia 2013
Question 4.22 continued (periodic inventory applies)
Cash Receipts Journal of A Gregory CR 1 Date Rmt
Rec Drawer and / or Particulars Ref Bank Sales GST
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
Payee and / or Particulars Ref Bank Purch-ases
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
1 Aug 16 Balance b/d 1 332
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
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 88
© Cengage Learning Australia 2013
Question 4.22 continued (periodic inventory applies)
Extract General Ledger of A Gregory continued 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
Rent Received 410 31 Jul 16 Bank [receipt] CR1 1 920
Purchases 500 31 Jul 16 Accounts Payable Ctrl PJ1 630
Bank [payment] CP1 910 1 540
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 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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 89
© Cengage Learning Australia 2013
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 90
© Cengage Learning Australia 2013
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
Adj Accounts Receivable and / or
Particulars Ref Account
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
Adj Accounts Payable and / or
Particulars Ref Account
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 91
© Cengage Learning Australia 2013
Question 4.27 continued (periodic inventory applies) Cash Receipts Journal of L Scott CR 1
Date Rmt Rec
Drawer and / or Particulars Ref Bank Sales GST Payab
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
1 Apr 16 Balance b/d 2 343
GST Receivable 102 31 Mar 16 Accounts Payable Ctrl PJ1 65
Bank [payment] CP1 197
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 92
© Cengage Learning Australia 2013
Question 4.27 continued (periodic inventory applies)
Extract General Ledger of L Scott continued GST Payable 201
31 Mar 16 Acc’nt Receivable Ctrl SJ1 651
Bank [receipt] CR1 224
875
Sales 400 31 Mar 16 Acc’nt Receivable Ctrl SJ1 5 880
Bank [receipt] CR1 2 240
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
Bank [payment] CP1 830 1 390
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 93
© Cengage Learning Australia 2013
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
Adj Accounts Receivable and / or
Particulars Ref Account
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
Accounts Payable and / or Particulars
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
Drawer and / or Particulars Ref Bank Sales GST Payab
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
Payee and / or Particulars Ref Bank Tele-phone
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 94
© Cengage Learning Australia 2013
Question 4.27 continued (perpetual inventory applies)
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
1 Apr 16 Balance b/d 2 343
Inventory 102 31 Mar 16 Accounts Payable Ctrl PJ1 560 31 Mar 16 Cost of Goods Sold SJ1 3 823
Bank [payment] CP1 830 Cost of Goods Sold CR1 1 457
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
Bank [payment] CP1 197
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
GST Payable 201 31 Mar 16 Accnt Receivable Ctrl SJ1 651
Bank [receipt] CR1 224
875
Sales 400 31 Mar 16 Accnt Receivable Ctrl SJ1 5 880
Bank [receipt] CR1 2 240
8 120
Dividend Received 410 31 Mar 16 Bank [receipt] CR1 205
Interest Received 411 31 Mar 16 Bank [receipt] CR1 371
continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 95
© Cengage Learning Australia 2013
Question 4.27 continued (perpetual inventory applies)
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 96
© Cengage Learning Australia 2013
Question 4.28 continued (perpetual inventory applies) Sales Journal of W Tucker SJ 1
Date Inv Adj
Accounts Receivable and / or Particulars
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
Accounts Payable and / or Particulars
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
Drawer and / or Particulars Ref Bank Sales GST Payab
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 97
© Cengage Learning Australia 2013
Question 4.28 continued (perpetual inventory applies)
Extract General Ledger of W Tucker Bank 100
31 Jul 16 Receipts CR1 12 980 31 Jul 16 Payments CP1 6 956
Balance c/d 6 024
12 980 12 980
1 Aug 16 Balance b/d 6 024
Accounts Receivable Control 101 31 Jul 16 Sales SJ1 6 325 31 Jul 16 Bank [receipt] CR1 6 325
Inventory 102 31 Jul 16 Accounts Payable Ctrl PJ1 800 31 Jul 16 Cost of Goods Sold SJ1 2 590
Bank [payment] CP1 400 Cost of Goods Sold CR1 2 430
Balance c/d 3 820
5 020 5 020
1 Aug 16 Balance b/d 3 820
GST Receivable 103 31 Jul 16 Accounts Payable Ctrl PJ1 88
Bank [payment] CP1 284
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
1 Aug 16 Balance b/d 88
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
Cost of Goods Sold 500 31 Jul 16 Inventory SJ1 2 590
Inventory CR1 2 430 2960
Stationery 540 31 Jul 16 Accounts Payable Ctrl PJ1 80
continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 98
© Cengage Learning Australia 2013
Question 4.28 continued (perpetual inventory applies)
Extract General Ledger of W Tucker continued Vehicle Expense 541
31 Jul 16 Bank [payment] CP1 670 Wages 542
31 Jul 16 Bank [payment] CP1 2 952
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
Accounts Receivable and / or Particulars
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 99
© Cengage Learning Australia 2013
Question 4.28 continued (periodic inventory applies)
Purchases Journal of W Tucker PJ 1 Date Inv
Adj Accounts Payable and / or
Particulars Ref Account
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
Drawer and / or Particulars Ref Bank Sales GST Payab
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 100
© Cengage Learning Australia 2013
Question 4.28 continued (periodic inventory applies)
Extract General Ledger of W Tucker Bank 100
31 Jul 16 Receipts CR1 12 980 31 Jul 16 Payments CP1 6 956
Balance c/d 6 024
12 980 12 980
1 Aug 16 Balance b/d 6 024
Accounts Receivable Control 101 31 Jul 16 Sales SJ1 6 325 31 Jul 16 Bank [receipt] CR1 6 325
GST Receivable 102 31 Jul 16 Accounts Payable Ctrl PJ1 88
Bank [payment] CP1 284
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
1 Aug 16 Balance b/d 88
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
Purchases 500 31 Jul 16 Accounts Payable Ctrl PJ1 800
Bank [payment] CP1 400 1 200
Stationery 540 31 Jul 16 Accounts Payable Ctrl PJ1 80
Vehicle Expense 541 31 Jul 16 Bank [payment] CP1 670
Wages 542 31 Jul 16 Bank [payment] CP1 2 952
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 101
© Cengage Learning Australia 2013
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
Drawer and / or Particulars Ref Bank Acc’nt Receiv
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
Payee and / or Particulars Ref Bank Acc’nt Payab
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
Assets on commencement of business
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 102
© Cengage Learning Australia 2013
Question 4.33 continued
Cash Receipts Journal of G Rettkowicz CR 1 Date Rmt
Rec Drawer and / or Particulars Ref Bank Sales GST
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
Pmt Payee and / or Particulars Ref Bank Purch-
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 103
© Cengage Learning Australia 2013
Question 4.33 finalised
Extract General Ledger of G Rettkowicz continued GST Payable 200
31 Aug 16 Bank [receipt] CR1 533
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
Rec Drawer and / or Particulars Ref Bank Sales GST
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.
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 104
© Cengage Learning Australia 2013
Question 4.34 continued
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 105
© Cengage Learning Australia 2013
Question 4.34 finalised
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 106
© Cengage Learning Australia 2013
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
Adj Accounts Receivable and / or
Particulars Ref Account
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
Adj Accounts Payable and / or
Particulars Ref Account
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
Rec Drawer and / or Particulars Ref Bank Sales GST
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
Pmt Payee and / or Particulars Ref Bank Inven-
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 107
© Cengage Learning Australia 2013
Question 4.36 continued (perpetual inventory applies)
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
1 Mar 16 Balance b/d 1 617
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
Bank [payment] CP1 67 603
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
1 Mar 16 Balance b/d 3 982
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 108
© Cengage Learning Australia 2013
Question 4.36 continued (perpetual inventory applies)
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
Inventory CR1 2 065 5 048
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
Adj Accounts Receivable and / or
Particulars Ref Account
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 109
© Cengage Learning Australia 2013
Question 4.36 continued (periodic inventory applies)
Purchases Journal of J Kelaher PJ 1 Date Inv
Adj Accounts Payable and / or
Particulars Ref Account
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
Rec Drawer and / or Particulars Ref Bank Sales GST
Payab Acc’nt Receiv
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
Pmt Payee and / or Particulars Ref Bank Purch-
ases GST
Receiv Acc’nt Payab
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
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
1 Mar 16 Balance b/d 1 617 Inventory 102
1 Feb 16 Balance b/d 12 000 continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 110
© Cengage Learning Australia 2013
Question 4.36 continued (periodic inventory applies)
General Ledger of J Kelaher continued GST Receivable 103
1 Feb 16 Balance b/d 100 28 Feb 16 Accounts Payable Ctrl PJ1 436
Bank [payment] CP1 67 603
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
1 Mar 16 Balance b/d 3 982
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
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
Purchases 500 28 Feb 16 Accounts Payable Ctrl PJ1 1 360
Bank [payment] CP1 710 2 070
Discount Allowed 560 28 Feb 16 Bank [receipt] CR1 10
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 111
© Cengage Learning Australia 2013
Question 4.36 continued (periodic inventory applies)
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.
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 112
© Cengage Learning Australia 2013
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
Assets on commencement of business
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 113
© Cengage Learning Australia 2013
Question 4.40 continued Cash Receipts Journal of Marty’s Mower and Small Engine Repairs CR 1
Date Rmt Rec
Drawer and / or Particulars Ref Bank Sales GST Payab
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
Pmt Payee and / or Particulars Ref Bank Purch-
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 114
© Cengage Learning Australia 2013
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
Particulars Ref Acc’nt
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 115
© Cengage Learning Australia 2013
Question 4.41 continued
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 116
© Cengage Learning Australia 2013
Question 4.41 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
Stationery 560 31 Jul 16 Accounts Payable Ctrl PJ1 450
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 117
© Cengage Learning Australia 2013
Question 4.42 continued (periodic inventory applies)
Sales Journal of P Sullivan SJ 1 Date Inv
Adj Accounts Receivable and / or
Particulars Ref Account
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
Accounts Payable and / or Particulars
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
Drawer and / or Particulars Ref Bank Acc’nt Receiv
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
Payee and / or Particulars Ref Bank Acc’nt Payab
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 118
© Cengage Learning Australia 2013
Question 4.42 continued (periodic inventory applies)
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
1 Oct 16 Balance b/d 12 771
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
Bank [payment] CP1 169
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 119
© Cengage Learning Australia 2013
Question 4.42 continued (periodic inventory applies)
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
30 Sep 16 Accounts Payable Ctrl PJ1 530
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 120
© Cengage Learning Australia 2013
Question 4.42 continued (periodic inventory applies)
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
Adj Accounts Receivable and / or
Particulars Ref Account
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 121
© Cengage Learning Australia 2013
Question 4.42 continued (perpetual inventory applies)
Purchases Journal of P Sullivan PJ 1 Date Inv
Adj Accounts Payable and / or
Particulars Ref Account
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
Drawer and / or Particulars Ref Bank Acc’nt Receiv
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
Payee and / or Particulars Ref Bank Acc’nt Payab
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
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
1 Oct 16 Balance b/d 12 771 continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 122
© Cengage Learning Australia 2013
Question 4.42 continued (perpetual inventory applies)
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
Bank [payment] CP1 169 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
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
continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 123
© Cengage Learning Australia 2013
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
Inventory CR1 1 056 8 022
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 124
© Cengage Learning Australia 2013
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
Accounts Receivable and / or Particulars
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
Accounts Payable and / or Particulars
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
Rec Drawer and / or Particulars Ref Bank Sales GST
Payab Acc’nt Receiv
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 125
© Cengage Learning Australia 2013
Question 4.43 continued (perpetual inventory applies)
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
1 Aug 16 Balance b/d 31 649
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
1 Aug 16 Balance b/d 3 150
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
1 Aug 16 Balance b/d 8 109
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
15 130 Accounts Payable Control 200
31 Jul 16 Bank [payment] CP1 5 093 31 Jul 16 Purchases PJ1 5 753
Balance c/d 660
5 753 5 753
1 Aug 16 Balance b/d 660
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
Bank [receipt] CR1 422
2 542 2 542
1 Aug 16 Balance b/d 982 continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 126
© Cengage Learning Australia 2013
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
Sales 400 31 Jul 16 Acc’nt Receivable Ctrl SJ1 5 600
Bank [receipt] CR1 4 260
9 860
Cost of Goods Sold 500 31 Jul 16 Inventory SJ1 2 380
Inventory CR1 1 811 4 191
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 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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 127
© Cengage Learning Australia 2013
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
Adj Accounts Receivable and / or
Particulars Ref Account
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
Accounts Payable and / or Particulars
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
Drawer and / or Particulars Ref Bank Sales GST Payab
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
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 128
© Cengage Learning Australia 2013
Question 4.43 continued (periodic inventory applies)
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
1 Aug 16 Balance b/d 31 649
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
1 Aug 16 Balance b/d 3 150
Inventory 102 1 Jul 16 Balance b/d 12 000
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
15 130 Accounts Payable Control 200
31 Jul 16 Bank [payment] CP1 5 093 31 Jul 16 Purchases PJ1 5 753
Balance c/d 660
5 753 5 753
1 Aug 16 Balance b/d 660
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 Acc’nt Receivable Ctrl SJ1 560 Bank [receipt] CR1 422 2 542 2 542
1 Aug 16 Balance b/d 982
Loan from West Bank 250 1 Jul 16 Balance b/d 35 000
continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 129
© Cengage Learning Australia 2013
Question 4.43 finalised (periodic inventory applies)
General Ledger of C Holmes continued Capital 300
1 Jul 16 Balance b/d 61 522
Sales 400 31 Jul 16 Acc’nt Receivable Ctrl SJ1 5 600 Bank [receipt] CR1 4 260 9 860
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 130
© Cengage Learning Australia 2013
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
Accounts Receivable and / or Particulars
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
Accounts Payable and / or Particulars
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
Drawer and / or Particulars Ref Bank Acc’nt Receiv
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
Payee and / or Particulars Ref Bank Acc’nt Payab
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 131
© Cengage Learning Australia 2013
Question 4.44 continued (periodic inventory applies)
Sales Journal of W Beavan SJ 2 Date Inv
Adj Accounts Receivable and / or
Particulars Ref Account
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
Purchases Journal of W Beavan PJ 2
Date Inv Adj
Accounts Payable and / or Particulars
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
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 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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 132
© Cengage Learning Australia 2013
Question 4.44 continued (periodic inventory applies)
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
Bank [payment] CP2 26 970
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 133
© Cengage Learning Australia 2013
Question 4.44 continued (periodic inventory applies)
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
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
Purchases 500 31 May 16 Accounts Payable Ctrl PJ1 340
Bank [payment] CP1 460 800
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 134
© Cengage Learning Australia 2013
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 135
© Cengage Learning Australia 2013
Question 4.44 continued (perpetual inventory applies) Sales Journal of W Beavan SJ 1
Date Inv Adj
Accounts Receivable and / or Particulars
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
Purchases Journal of W Beavan PJ 1
Date InvAdj
Accounts Payable and / or Particulars
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
Payee and / or Particulars Ref Bank Acc’nt Payab
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
Accounts Receivable and / or Particulars
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 136
© Cengage Learning Australia 2013
Question 4.44 continued (perpetual inventory applies)
Purchases Journal of W Beavan PJ 2 Date Inv
Adj Accounts Payable and / or
Particulars Ref Account
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
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 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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 137
© Cengage Learning Australia 2013
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
1 Jul 16 Balance b/d 1 504
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
Bank [payment] CP2 26 970
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’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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 138
© Cengage Learning Australia 2013
Question 4.44 continued (perpetual inventory applies)
General Ledger of W Beavan continued Loan from J Hulewicz 250
27 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 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
Inventory CR1 1 056 4 776
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 4 139
© Cengage Learning Australia 2013
Question 4.44 finalised (perpetual inventory applies)
Trial Balance of W Beavan as at 31 May 2016
Bank 100 13 683
Accounts Receivable Control 101 6 776
Inventory 102 4 874
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
Cost of Goods Sold 500 4 776
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 1 504
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
Cost of Goods Sold 500 8 496
Vehicle Expense 540 500
Rates 541 1 280
Discount Allowed 560 190
52 894 52 894
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 140
© Cengage Learning Australia 2013
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
1 May 16 Balance b/d 4 147 31 May 16 Bank [receipt] CR1 4 840
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
Bank [receipt] CR1 35
1 006
Capital 300 1 May 16 Balance b/d 5 800
Sales 400 31 May 16 Acc Receivable Ctrl SJ1 5 320
Bank [receipt] CR1 470
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 141
© Cengage Learning Australia 2013
Question 5.1 finalised
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
Discount Allowed & GST CR1 22 0
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
18 134 Accounts Receivable Control 101
1 May 16 Balance b/d 1 782 31 May 16 Bank [receipt] CR1 4 213
31 May 16 Sales SJ1 14 751 Balance c/d 12 320
16 533 16 533
1 Jun 16 Balance b/d 12 320 GST Payable 200
1 May 16 Balance b/d 1 072
31 May 16 Acc’nts Receivable Ctrl SJ1 1 341
Bank [receipt] CR1 381
2 794 continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 142
© Cengage Learning Australia 2013
Question 5.2 continued
General Ledger of P Brushgrove continued Capital 300
1 May 16 Balance b/d 1 500
Sales 400 1 May 16 Balance b/d 8 940
31 May 16 Acc’nts Receivable Ctrl SJ1 13 410
Bank [receipt] CR1 3 910
26 260
Discount Allowed 560 31 May 16 Bank [receipt] CR1 100
Accounts Receivable Ledger of P Brushgrove E Bore 1
1 May 16 Balance 341 341 dr
3 May 16 Bank [receipt] CR1 330 11 dr
Discount Allowed & GST CR1 11 0
28 May 16 Sales SJ1 1 232 1 232 dr
C Clouds 2 10 May 16 Sales SJ1 2 431 2 431 dr
31 May 16 Bank [receipt] CR1 2 365 66 dr
Discount Allowed & GST CR1 66 0
I Glen 3 1 May 16 Balance 484 484 dr
5 May 16 Bank [receipt] CR1 484 0
15 May 16 Sales SJ1 1 881 1 881 dr
G Innes 4
1 May 16 Balance 572 572 dr
2 May 16 Bank [receipt] CR1 550 22 dr
Discount Allowed & GST CR1 22 0
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
1 May 16 Balance 385 385 dr
Sales SJ1 1 947 2 332 dr
Bank [receipt] CR1 374 1 958 dr
Discount Allowed & GST CR1 11 1 947 dr
21 May 16 Sales SJ1 1 980 3 927 dr
28 May 16 Sales Return SJ1 44 3 883 dr
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 143
© Cengage Learning Australia 2013
Question 5.2 finalised
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
13 195 Accounts Receivable Control 101
1 Jul 16 Balance b/d 5 610 31 Jul 16 Bank [receipt] CR1 8 228
31 Jul 16 Sales SJ1 12 628 Balance c/d 10 010
18 238 18 238
1 Aug 16 Balance b/d 10 010
GST Payable 200 1 Jul 16 Balance b/d 888
Account Receivable Ctrl SJ1 1 148
Bank [receipt] CR1 399
2 435
Capital 300 1 Jul 16 Balance b/d 5 300
Sales 400 31 Jul 16 Account Receivable Ctrl SJ1 11 480
Bank [receipt] CR1 4 140
15 620
Discount Allowed 560 31 Jul 16 Bank [receipt] CR1 150
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 144
© Cengage Learning Australia 2013
Question 5.3 continued
Accounts Receivable Ledger of Stan Thorpe B Corindi 1
1 Jul 16 Balance 2 200 2 200 dr
Bank [receipt] CR1 2 145 55 dr
Discount Allowed & GST CR1 55 0
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
Discount Allowed & GST CR1 77 0
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
Discount Allowed & GST CR1 33 2 178 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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 145
© Cengage Learning Australia 2013
Question 5.4
General Ledger of T Aree Bank 100
1 Feb 16 Balance b/d 8 450 28 Feb 16 Payments CP1 3 927
Balance c/d 4 523
8 450 8 450
1 Mar 16 Balance b/d 4 523
GST Receivable 101 28 Feb 16 Balance b/d 250
Accounts Payable Ctrl PJ1 408
Bank [payment] CP1 18
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
1 Mar 16 Balance b/d 3 509
Capital 300 1 Feb 16 Balance b/d 5 950
Discount Received 410 28 Feb 16 Bank [payment] CP1 50
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
Bank [payment] CP1 230
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 146
© Cengage Learning Australia 2013
Question 5.4 finalised
Accounts Payable Ledger of T Aree continued K Imbriki 3
28 Feb 16 Purchases PJ1 528 528 cr
W Ingham 4 1 Feb 16 Balance 869 869 cr
Bank [payment] CP1 847 22 cr
Discount Received & GST CP1 22 0
7 Feb 16 Purchases PJ1 759 759 cr
23 Feb 16 Purchases PJ1 209 968 cr
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
Bank [payment] CP1 825 891 cr
18 Feb 16 Purchases PJ1 682 1 573 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
28 Feb 16 Bank [payment] CP1 473 0
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 147
© Cengage Learning Australia 2013
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
1 May 16 Balance b/d 1 666
GST Receivable 101
1 Apr 16 Balance b/d 351
30 Apr 16 Accounts Payable Ctrl PJ1 321
Bank [payment] CP1 22
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
1 May 16 Balance b/d 3 531
Capital 300
1 Apr 16 Balance b/d 10 625
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
Bank [payment] CP1 240
470
Accounts Payable Ledger of Emma Ville R Aspley 1
1 Apr 16 Balance 825 825 cr
Bank [payment] CP1 814 11 cr
Discount Received & GST CP1 11 0
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 148
© Cengage Learning Australia 2013
Question 5.5 finalised
Accounts Payable Ledger of Emma Ville continued H Lennox 3
1 Apr 16 Balance 605 605 cr
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
Bank [payment] CP1 154 0
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
1 Feb 16 Balance b/d 5 587 28 Feb 16 Payments CP1 4 752
Balance c/d 835
5 587 5 587
1 Mar 16 Balance b/d 835 GST Receivable 101
1 Feb 16 Balance b/d 270
28 Feb 16 Accounts Payable Ctrl PJ1 403
Bank [payment] CP1 51
724 continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 149
© Cengage Learning Australia 2013
Question 5.6 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
1 Mar 16 Balance b/d 4 433
Capital 300
1 Feb 16 Balance b/d 4 681
Discount Received 410
28 Feb 16 Bank [payment] CP1 70
Purchases 500
1 Feb 16 Balance b/d 3 015
28 Feb 16 Accounts Payable Ctrl PJ1 4 030
Bank [payment] CP1 580
7 625
Accounts Payable Ledger of Jack Adgery H Copman 1
1 Feb 16 Balance 968 968 cr
2 Feb 16 Bank [payment] CP1 968 0
4 Feb 16 Purchases PJ1 627 627 cr
8 Feb 16 Purchases Return PJ1 66 561 cr
18 Feb 16 Purchases PJ1 528 1 089 cr
C Coutt 2 17 Feb 16 Purchases PJ1 440 440 cr
28 Feb 16 Purchases PJ1 979 1 419 cr
J Hill 3 1 Feb 16 Balance 1 694 1 694 cr
Bank [payment] CP1 1 650 44 cr
Discount Received & GST CP1 44 0
15 Feb 16 Purchases PJ1 187 187 cr
24 Feb 16 Purchases PJ1 374 561 cr
4 21 Feb 16 Purchases PJ1 330 330 cr
W Wooli 5 1 Feb 16 Balance 1 529 1 529 cr
Bank [payment] CP1 1 496 33 cr
Discount Received & GST CP1 33 0
7 Feb 16 Purchases PJ1 902 902 cr
28 Feb 16 Purchases Return PJ1 132 1 034 cr
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 150
© Cengage Learning Australia 2013
Question 5.6 finalised
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
1 Sep 16 Balance b/d 9 935
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
1 Aug 16 Balance b/d 108
31 Aug 16 Accounts Payable Ctrl PJ1 341
Bank [payment] CP1 43
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 Aug 16 Balance b/d 274
Account Receivable Ctrl SJ1 1 507
Bank [receipt] CR1 185
1 966
Capital 300 1 Aug 16 Balance b/d 4 587
continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 151
© Cengage Learning Australia 2013
Question 5.7 continued
General Ledger of Bell Ingen continued Sales 400
31 Aug 16 Balance b/d 6 490
Account Receivable Ctrl SJ1 15 070
Bank [receipt] CR1 1 850
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
8 Aug 16 Bank [receipt] CR1 451 0
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
5 Aug 16 Bank [payment] CP1 308 0
25 Aug 16 Purchases PJ1 1 991 1 991 cr
L Wooloweyah 3 1 Aug 16 Balance 198 198 cr
15 Aug 16 Purchases PJ1 1 760 1 958 cr
Bank [payment] CP1 198 1 760 cr
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 152
© Cengage Learning Australia 2013
Question 5.7 finalised
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
1 Nov 16 Balance b/d 13 948
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 153
© Cengage Learning Australia 2013
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
Bank [receipt] CR1 217
2 976 2 976
1 Nov 16 Balance b/d 1 178
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
Bank [receipt] CR1 2 170
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
Bank [receipt] CR1 2 772 0
12 Oct 16 Sales SJ1 1 595 1 595 dr
Sales Return SJ1 209 1 386 dr
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 154
© Cengage Learning Australia 2013
Question 5.8 finalised
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
17 Oct 16 Purchases PJ1 1 903 3 839 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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 155
© Cengage Learning Australia 2013
Question 5.9
General Ledger of D Timbers Bank 100
1 Jun 16 Balance b/d 1 500 30 Jun 16 Payments CP1 3 248
30 Jun 16 Receipts CR1 8 492 Balance c/d 6 744
9 992 9 992
1 Jul 16 Balance b/d 6 744
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
1 Jul 16 Balance b/d 12 122
GST Receivable 102 1 Jun 16 Balance b/d 365
30 Jun 16 Accounts Payable Ctrl PJ1 557
Bank [payment] CP1 129
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
1 Jul 16 Balance b/d 6 127
GST Payable 201 1 Jun 16 Balance b/d 712
30 Jun 16 Account Receivable Ctrl SJ1 1 276
Bank [receipt] CR1 355
2 343
Capital 300 1 Jun 16 Balance b/d 2 000
Sales 400 30 Jun 16 Account Receivable Ctrl SJ1 12 760
Bank [receipt] CR1 2 940
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
Bank [payment] CP1 1 160
5 360
continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 156
© Cengage Learning Australia 2013
Question 5.9 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
Discount Allowed & GST CR1 44 0
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
Discount Allowed & GST CR1 22 0
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
Discount Allowed & GST CR1 33 0
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 157
© Cengage Learning Australia 2013
Question 5.9 continued
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
Discount Received & GST CP1 44 0
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
6 Jun 16 Purchases PJ1 110 308 cr
7 Jun 16 Bank [payment] CP1 198 110 cr
20 Jun 16 Purchases PJ1 275 385 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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 158
© Cengage Learning Australia 2013
Question 5.9 finalised
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.
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 159
© Cengage Learning Australia 2013
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.
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 160
© Cengage Learning Australia 2013
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 161
© Cengage Learning Australia 2013
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)
17 Mar 16 Purchases tax inv 375 √ 759.00 704.00
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.
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 162
© Cengage Learning Australia 2013
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
Date Particulars and Reference Debit Credit Balance
8 Mar 16 Purchases tax inv 391 √ 946.00 946.00
2 Apr 16 Purchases tax inv 455 √ 33.00 979.00
5 Apr 16 Purchases tax inv 513 √ 660.00 1 639.00
6 Apr 16 Purchases tax inv 541 √ 550.00 2 189.00
16 Apr 16 Purchases tax inv 563 √ 220.00 2 409.00
18 Apr 16 Purchases tax inv 588 √ 440.00 2 849.00
21 Apr 16 Purchases tax inv 603 √ 649.00 3 498.00
21 Apr 16 Purchases Return adj c/n 113 √ 66.00 3 432.00
28 Apr 16 Purchases tax inv 687 √ 385.00 3 817.00
25 May 16 Bank chq 56789 3 817.00 0.00
Extract Accounts Receivable Listing
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 163
© Cengage Learning Australia 2013
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
1 Oct 16 Balance b/d 39 672
Accounts Receivable Control 101 1 Sep 16 Balance b/d 19 635 30 Sep 16 Bank [receipt] CR1 22 792
30 Sep 16 Sales SJ1 27 093 Balance c/d 23 936
46 728 46 728
1 Oct 16 Balance b/d 23 936
GST Receivable 102 1 Sep 16 Balance b/d 700
30 Sep 16 Accounts Payable Ctrl PJ1 1 841
Bank [payment] CP1 56
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
1 Oct 16 Balance b/d 6 560 continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 164
© Cengage Learning Australia 2013
Question 5.25 continued
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
1 Oct 16 Balance b/d 13 882
GST Payable 201 1 Sep 16 Balance b/d 4 000
30 Sep 16 Acc’nt Receivable Ctrl SJ1 2 463
Bank [receipt] CR1 250
6 713
Capital 300 1 Sep 16 Balance b/d 3 500
Sales 400 1 Sep 16 Balance b/d 41 270
30 Sep 16 Acc’nt Receivable Ctrl SJ1 23 630
Bank [receipt] CR1 2 300
67 200
Commission Received 410 30 Sep 16 Bank [receipt] CR1 510
Discount Received 411 30 Sep 16 Bank [payment] CP1 370
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
30 Sep 16 Accounts Payable Ctrl PJ1 1 980
Stationery 542
30 Sep 16 Bank [payment] CP1 140
Rent 543
30 Sep 16 Bank [payment] CP1 250
Discount Allowed 560
30 Sep 16 Bank [receipt] CR1 310
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 165
© Cengage Learning Australia 2013
Question 5.25 continued
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
Discount Allowed & GST CR1 66 0
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
Bank [receipt] CR1 4 356 110 dr
Discount Allowed & GST CR1 110 0
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
Bank [receipt] CR1 6 589 165 dr
Discount Allowed & GST CR1 165 0
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
24 Sep 16 Purchases PJ1 7 216 7 216 cr
30 Sep 16 Bank [payment] CP1 6 853 363 cr
Discount Received & GST CP1 363 0
continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 166
© Cengage Learning Australia 2013
Question 5.25 continued
Accounts Payable Ledger of Ku Cumbit continued Belbourie Co 3
15 Sep 16 Purchases PJ1 737 737 cr
29 Sep 16 Purchases PJ1 3 542 4 279 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
12 Sep 16 Purchases PJ1 2 651 2 651 cr
27 Sep 16 Purchases PJ1 1 188 3 839 cr
Warroo & Co 7
1 Sep 16 Balance 1 518 1 518 cr
Bank [payment] CP1 1 474 44 cr
Discount Received & GST CP1 44 0
4 Sep 16 Purchases PJ1 1 870 1 870 cr
24 Sep 16 Purchases Return PJ1 165 1 705 cr
Trial Balance of Ku Cumbit
as at 30 September 2016
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 167
© Cengage Learning Australia 2013
Question 5.25 finalised
Ku Cumbit Accounts Receivable Listing
as at 30 September 2016
Ku Cumbit Accounts Payable Listing
as at 30 September 2016
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
Adj Accounts Receivable and / or
Particulars Ref Acc’nt
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
Accounts Payable and / or Particulars
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]
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 168
© Cengage Learning Australia 2013
Question 5.26 continued
Cash Receipts Journal of Val Orara CR 1 Date Rmt
Rec Drawer and / or Particulars Ref Bank Acc’nt
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
31 May 16 Receipts CR1 4 763 Balance c/d 10 030
10 206 10 206
1 Jun 16 Balance b/d 10 030
Accounts Receivable Control 101 1 May 16 Balance b/d 2 255 31 May 16 Bank [receipt] CR1 2 255
31 May 16 Sales SJ1 7 799 Balance c/d 7 799
10 054 10 054
1 Jun 16 Balance b/d 7 799
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
1 Jun 16 Balance b/d 1 793
GST Payable 201 1 May 16 Balance b/d 1 703
31 May 16 Acc’nts Receivable Ctrl SJ1 709
Bank [receipt] CR1 228
2 640 continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 169
© Cengage Learning Australia 2013
Question 5.26 continued
General Ledger of Val Orara continued Capital 300
1 May 16 Balance b/d 4 814
Sales 400 1 May 16 Balance b/d 4 100
31 May 16 Acc’nts Receivable Ctrl SJ1 7 090
Bank [receipt] CR1 2 330
13 520
Purchases 500 1 May 16 Balance b/d 2 705
31 May 16 Accounts Payable Ctrl PJ1 1 070 3 775
Stationery 540 31 May 16 Accounts Payable Ctrl PJ1 150
Insurance 541 31 May 16 Accounts Payable Ctrl PJ1 330
Discount Allowed 560 31 May 16 Bank [receipt] CR1 50
Accounts Receivable Ledger of Val Orara
G Clifton 1
1 May 16 Balance 572 572 dr
2 May 16 Bank [receipt] CR1 550 22 dr
Discount Allowed & GST CR1 22 0
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
Bank [receipt] CR1 781 0
15 May 16 Sales SJ1 2 156 2 156 dr
A Jameson 4 1 May 16 Balance 902 902 dr
Bank [receipt] CR1 869 33 dr
Discount Allowed & GST CR1 33 0
18 May 16 Sales SJ1 2 057 2 057 dr
20 May 16 Sales Return SJ1 44 2 013 dr
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 170
© Cengage Learning Australia 2013
Question 5.26 continued
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
Bank [payment] CP1 176 0
16 May 16 Purchase PJ1 187 187 cr
19 May 16 PurchasesReturn PJ1 33 154 cr
25 May 16 Purchase PJ1 407 561 cr
26 May 16 Purchases Return PJ1 55 506 cr
A Waratah 4 7 May 16 Purchase PJ1 297 297 cr
21 May 16 Purchase PJ1 374 671 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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 171
© Cengage Learning Australia 2013
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
Accounts Receivable and / or Particulars
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
Accounts Payable and / or Particulars
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
Drawer and / or Particulars Ref Bank Acc’nt Receiv
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
Payee and / or Particulars Ref Bank Acc’nt Payab
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]
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 172
© Cengage Learning Australia 2013
Question 5.27 continued
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
1 May 16 Balance b/d 7 758
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
Bank [payment] CP1 33 496
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
1 May 16 Balance b/d 3 993
GST Payable 201 1 Apr 16 Balance b/d 376
30 Apr 16 Account Receivable Ctrl SJ1 835
Bank [receipt] CR1 242
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
Bank [receipt] CR1 2 510
14 308
Discount Received 410 30 Apr 16 Bank [payment] CP1 30
continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 173
© Cengage Learning Australia 2013
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
Discount Allowed & GST CR1 22 2 244 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
Discount Allowed & GST CR1 77 0
Accounts Payable Ledger of Glen Reagh N Castle 1
1 Apr 16 Balance 165 165 cr
Bank [payment] CP1 154 11 cr
Discount Received & GST CP1 11 0
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
20 Apr 16 Purchase PJ1 385 385 cr
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
15 Apr 16 Purchase PJ1 231 429 cr
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 174
© Cengage Learning Australia 2013
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
Adj Accounts Receivable and / or
Particulars Ref Account
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 175
© Cengage Learning Australia 2013
Question 5.28 continued
Purchases Journal of B Wellington PJ 1 Date Inv
Adj Accounts Payable and / or
Particulars Ref Account
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
Drawer and / or Particulars Ref Bank Acc’nt Receiv
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
Payee and / or Particulars Ref Bank Acc’nt Payab
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
1 Aug 16 Balance b/d 4 243 31 Aug 16 Payments CP1 1 826
31 Aug 16 Receipts CR1 6 809 Balance c/d 9 226
11 052 11 052
1 Sep 16 Balance b/d 9 226
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 176
© Cengage Learning Australia 2013
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
Bank [payment] CP1 43
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
1 Sep 16 Balance b/d 2 739
GST Payable 201 1 Aug 16 Balance b/d 300
31 Aug 16 Acc Receivable Control SJ1 1 659
Bank [receipt] CR1 347
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
Bank [receipt] CR1 3 500
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
2 Aug 16 Bank [receipt] CR1 561 0
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 177
© Cengage Learning Australia 2013
Question 5.28 continued
Accounts Receivable Ledger of B Wellington continued E Ballimore 3
1 Aug 16 Balance 869 869 dr
7 Aug 16 Bank [receipt] CR1 869 0
25 Aug 16 Sales SJ1 2 761 2 761 dr
W Garbon 4 1 Aug 16 Balance 880 880 dr
Bank [receipt] CR1 847 33 dr
Discount Allowed & GST CR1 33 0
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
Bank [receipt] CR1 682 0
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
12 Aug 16 Bank [payment] CP1 165 0
R Dandaloo 2 1 Aug 16 Balance 484 484 cr
Bank [payment] CP1 440 44 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
Bank [payment] CP1 374 11 cr
Discount Received & GST CP1 11 0
25 Aug 16 Purchases PJ1 1 254 1 254 cr
L Mookerawa 5 1 Aug 16 Balance 319 319 cr
6 Aug 16 Bank [payment] CP1 319 0
15 Aug 16 Purchases PJ1 385 385 cr
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 178
© Cengage Learning Australia 2013
Question 5.28 finalised
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
Adj Accounts Receivable and / or
Particulars Ref Account
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 179
© Cengage Learning Australia 2013
Question 5.29 continued
Purchases Journal of Margaret O’Reilly PJ 1 Date Inv
Adj Accounts Payable and / or
Particulars Ref Account
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
Drawer and / or Particulars Ref Bank Acc’nt Receiv
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
Pmt Payee and / or Particulars Ref Bank Purch-
ases GST
Receiv Acc’nt Payab
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
31 Jul 16 Receipts CR1 13 574 Balance c/d 8 680
17 740 17 740
1 Aug 16 Balance b/d 8 680 continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 180
© Cengage Learning Australia 2013
Question 5.29 continued
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
31 Jul 16 Sales SJ1 19 305 Balance c/d 19 305
26 422 26 422
1 Aug 16 Balance b/d 19 305
Inventory 102 1 Jul 16 Balance b/d 484
GST Receivable 103 1 Jul 16 Balance b/d 500 31 Jul 16 Bank [payment] CP1 76
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
1 Aug 16 Balance b/d 1 914
GST Payable 201 31 Jul 16 Bank [payment] CP1 1 200 1 Jul 16 Balance b/d 1 200
Balance c/d 2 342 31 Jul 16 Acc Receivable Ctrl SJ1 1 755
Bank [receipt] CR1 587
3 542 3 542
2 342
Capital 300 1 Jul 16 Balance b/d 2 300
Sales 400 1 Jul 16 Balance 9 339
31 Jul 16 Acc Receivable Ctrl SJ1 17 550
Bank [receipt] CR1 5 110
31 999
Rent Received 410 31 Jul 16 Bank [receipt] CR1 910
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
1 Aug 16 Balance b/d 7 122 continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 181
© Cengage Learning Australia 2013
Question 5.29 continued
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
Discount Allowed 560 31 Jul 16 Bank [receipt] CR1 150
Accounts Receivable Ledger of Margaret O’Reilly J Goulburn 1
1 Jul 16 Balance 2 838 2 838 dr
Bank [receipt] CR1 2 750 88 dr
Discount Allowed & GST CR1 88 0
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
Bank [receipt] CR1 2 684 77 dr
Discount Allowed & GST CR1 77 0
18 Jul 16 Sales SJ1 1 859 1 859 dr
19 Jul 16 Sales Return SJ1 33 1 826 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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 182
© Cengage Learning Australia 2013
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
Discount Received & GST CP1 33 0
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 183
© Cengage Learning Australia 2013
Question 5.30 continued
Sales Journal of Gloster Udy SJ1 Date Inv
Adj Accounts Receivable and / or
Particulars Ref Acc’nt
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
Accounts Payable and / or Particulars
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
Drawer and / or Particulars Ref Bank Acc’nt Receiv
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
Payee and / or Particulars Ref Bank Acc’nt Payab
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]
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 184
© Cengage Learning Australia 2013
Question 5.30 continued
General Ledger of Gloster Udy Bank 100
1 Jul 16 Balance b/d 953 31 Jul 16 Payments CP1 2 541
31 Jul 16 Receipts CR1 4 455 Balance c/d 2 867
5 408 5 408
1 Aug 16 Balance b/d 2 867
Accounts Receivable Control 101 1 Jul 16 Balance b/d 1 551 31 Jul 16 Bank [receipt] CR1 1 551
31 Jul 16 Sales SJ1 6 083 Balance c/d 6 083
7 634 7 634
1 Aug 16 Balance b/d 6 083
GST Receivable 102 1 Jul 16 Balance b/d 105
31 Jul 16 Accounts Payable Ctrl PJ1 257
Bank [payment] CP1 95
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
1 Aug 16 Balance b/d 2 827
GST Payable 201 1 Jul 16 Balance b/d 291
31 Jul 16 Acc’nt Receivable Ctrl SJ1 553
Bank [receipt] CR1 264
1 108
Capital 300 1 Jul 16 Balance b/d 822
Sales 400 31 Jul 16 Acc’nt Receivable Ctrl SJ1 5 530
Bank [receipt] CR1 2 280
7 810
Rent Received 410 31 Jul 16 Bank [receipt] CR1 370
Discount Received 411 31 Jul 16 Bank [payment] CP1 20
continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 185
© Cengage Learning Australia 2013
Question 5.30 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
Discount Allowed 560 31 Jul 16 Bank [receipt] CR1 10
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
Bank [receipt] CR1 693 1 628 dr
Discount Allowed & GST CR1 11 1 617 dr
9 Jul 16 Sales Return SJ1 55 1 562 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
Bank [payment] CP1 693 0
15 Jul 16 Purchases PJ1 209 209 cr
24 Jul 16 Purchases PJ1 473 682 cr
K Pooka 3 1 Jul 16 Balance 803 803 cr
Bank [payment] CP1 781 22 cr
Discount Received & GST CP1 22 0
4 Jul 16 Purchases PJ1 418 418 cr
8 Jul 16 Purchases Return PJ1 44 374 cr
23 Jul 16 Purchases PJ1 913 1 287 cr
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 186
© Cengage Learning Australia 2013
Question 5.30 finalised
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
Accounts Receivable and / or Particulars
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]
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 187
© Cengage Learning Australia 2013
Question 5.31 continued
Purchases Journal of William Dumbrell PJ1 Date Inv
Adj Accounts Payable and / or
Particulars Ref Acc’nt
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
Drawer and / or Particulars Ref Bank Acc’nt Receiv
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
Pmt Payee and / or Particulars Ref Bank Purch-
ases GST
Receiv Acc’nt Payab
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
28 Feb 16 Receipts CR1 9 196 Balance c/d 13 276
14 783 14 783
1 Mar 16 Balance b/d 13 276
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 188
© Cengage Learning Australia 2013
Question 5.31 continued
General Ledger of William Dumbrell continued GST Receivable 102
1 Feb 16 Balance b/d 270
28 Feb 16 Accounts Payable Ctrl PJ1 139
Bank [payment] CP1 18
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
1 Mar 16 Balance b/d 1 529
GST Payable 201 1 Feb 16 Balance b/d 785
28 Feb 16 Account Receivable Ctrl SJ1 1 150
Bank [receipt] CR1 575
2 510
Capital 280 1 Feb 16 Balance b/d 1 500
Sales 400 1 Feb 16 Balance b/d 6 268
28 Feb 16 Account Receivable Ctrl SJ1 11 500
Bank [receipt] CR1 5 550
23 318
Commission Received 410 28 Feb 16 Bank [receipt] CR1 260
Discount Received 411 28 Feb 16 Bank [payment] CP1 70
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
Discount Allowed 560 28 Feb 16 Bank [receipt] CR1 60
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 189
© Cengage Learning Australia 2013
Question 5.31 continued Accounts Receivable Ledger of William Dumbrell
R Creagh 1 1 Feb 16 Balance 990 990 dr
Bank [receipt] CR1 968 22 dr
Discount Allowed & GST CR1 22 0
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
Discount Allowed & GST CR1 44 0
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
Discount Received & GST CP1 44 0
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
Discount Received & GST CP1 33 0
7 Feb 16 Purchases PJ1 385 385 cr
28 Feb 16 Purchases PJ1 352 737 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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 190
© Cengage Learning Australia 2013
Question 5.31 finalised
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
Accounts Receivable and / or Particulars
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 191
© Cengage Learning Australia 2013
Question 5.32 continued
Purchases Journal of T W Bucketts PJ 1 Date Inv
Adj Accounts Payable and / or
Particulars Ref Account
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
Rec Drawer and / or Particulars Ref Bank Acc’nt
Receiv Disc’nt Allow’d
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
Payee and / or Particulars Ref Bank Acc’nt Payab
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 192
© Cengage Learning Australia 2013
Question 5.32 continued
General Ledger of T W Bucketts Bank 100
1 May 16 Balance b/d 9 457 31 May 16 Payments CP1 3 344
31 May 16 Receipts CR1 12 287 Balance c/d 18 400
21 744 21 744
1 Jun 16 Balance b/d 18 400
Accounts Receivable Control 101 1 May 16 Balance b/d 6 589 31 May 16 Bank [receipt] CR1 8 371
31 May 16 Sales SJ1 16 676 Balance c/d 14 894
23 265 23 265
1 Jun 16 Balance b/d 14 894
GST Receivable 102 1 May 16 Balance b/d 300
31 May 16 Accounts Payable Ctrl PJ1 1 143
Bank [payment] CP1 118
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
Balance c/d 12 573 31 May 16 Purchases PJ1 12 573
14 619 14 619
1 Jun 16 Balance b/d 12 573
GST Payable 201 1 May 16 Balance b/d 1 200
31 May 16 Acc’nt Receivable Ctrl SJ1 1 516
Bank [receipt] CR1 356
3 072
Capital 300
1 May 16 Balance b/d 4 000
Sales 400 1 May 16 Balance 11 800
31 May 16 Acc’nt Receivable Ctrl SJ1 15 160
Bank [receipt] CR1 3 690
30 650
Discount Received 410 31 May 16 Bank [payment] CP1 30
Purchases 500 1 May 16 Balance b/d 2 700
31 May 16 Accounts Payable Ctrl PJ1 6 370 9 070
continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 193
© Cengage Learning Australia 2013
Question 5.32 continued General Ledger of T W Bucketts continued
Stationery 540 31 May 16 Accounts Payable Ctrl PJ1 610
Bank [payment] CP1 540 1 150
Insurance 541 31 May 16 Accounts Payable Ctrl PJ1 920
Vehicle Expense 542 31 May 16 Bank [payment] CP1 670
Discount Allowed 560 31 May 16 Bank [receipt] CR1 130
Accounts Receivable Ledger of T W Bucketts B Booral 1
1 May 16 Balance 2 079 2 079 dr
Bank [receipt] CR1 2 024 55 dr
Discount Allowed & GST CR1 55 0
18 May 16 Sales SJ1 3 003 3 003 dr
20 May 16 Sales Return SJ1 154 2 849 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
Bank [receipt] CR1 1 749 44 dr
Discount Allowed & GST CR1 44 0
15 May 16 Sales SJ1 2 332 2 332 dr
H Pacific 5
1 May 16 Balance b/d 1 320 1 320 dr
Bank [receipt] CR1 1 320 0
28 May 16 Sales SJ1 3 542 3 542 dr
S Stratford 6
10 May 16 Sales SJ1 1 782 1 782 dr
31 May 16 Bank [receipt] CR1 1 738 44 dr
Discount Allowed & GST CR1 44 0
T Stroud 7
1 May 16 Balance b/d 1 397 1 397 dr
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
28 May 16 Sales Return SJ1 77 2 761 dr
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 194
© Cengage Learning Australia 2013
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
1 May 16 Balance 671 671 cr
2 May 16 Bank [payment] CP1 649 22 cr
Discount Received & GST CP1 22 0
20 May 16 Purchases PJ1 1 507 1 507 cr
C Craven 3 1 May 16 Balance 407 407 cr
Bank [payment] CP1 407 0
16 May 16 Purchases PJ1 594 594 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
25 May 16 Purchases PJ1 1 012 1 012 cr
K Krambach 5
7 May 16 Purchases PJ1 528 528 cr
21 May 16 Purchases PJ1 924 1 452 cr
B Kundibakh 6
10 May 16 Purchases PJ1 3 883 3 883 cr
L Telegherry 7
1 May 16 Balance 385 385 cr
Bank [payment] CP1 374 11 cr
Discount Received & GST CP1 11 0
19 May 16 Purchases PJ1 1 716 1 716 cr
R Wards 8
1 May 16 Balance 583 583 cr
Purchases PJ1 341 924 cr
2 May 16 Bank [payment] CP1 583 341 cr
15 May 16 Purchases PJ1 693 1 034 cr
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 195
© Cengage Learning Australia 2013
Question 5.32 finalised
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)
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 196
© Cengage Learning Australia 2013
Question 5.33 continued
Sales Journal of Tony Lowman SJ 1 Date Inv
Adj Accounts Receivable and / or
Particulars Ref Account
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
Adj Accounts Payable and / or
Particulars Ref Account
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 197
© Cengage Learning Australia 2013
Question 5.33 continued
Cash Receipts Journal of Tony Lowman CR 1 Date Rmt
Rec Drawer and / or Particulars Ref Bank Acc’nt
Receiv Disc’nt Allow’d
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
Payee and / or Particulars Ref Bank Purch-ases
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
1 Nov 16 Balance b/d 31 900
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 198
© Cengage Learning Australia 2013
Question 5.33 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
1 Nov 16 Balance b/d 21 340
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
Bank [receipt] CR1 1 073
6 254 6 254
1 Nov 16 Balance b/d 4 354
Capital 300 1 Oct 16 Balance b/d 5 000
Sales 400 31 Oct 16 Acc Receivable Ctrl SJ1 32 810
Bank [receipt] CR1 9 600
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 199
© Cengage Learning Australia 2013
Question 5.33 continued
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
Bank [receipt] CR1 2 233 55 dr
Discount Allowed & GST CR1 55 0
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
Discount Allowed & GST CR1 121 0
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
Bank [receipt] CR1 1 463 33 dr
Discount Allowed & GST CR1 33 0
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
Discount Received & GST CP1 22 0
4 Oct 16 Purchases PJ1 1 771 1 771 cr
8 Oct 16 Purchases Return PJ1 132 1 639 cr
18 Oct 16 Purchases PJ1 2 057 3 696 cr
continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 200
© Cengage Learning Australia 2013
Question 5.33 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
Discount Received & GST CP1 44 0
7 Oct 16 Purchases PJ1 3 443 3 443 cr
28 Oct 16 Purchases PJ1 1 485 4 928 cr
M Macksville 5
17 Oct 16 Purchases PJ1 2 464 2 464 cr
H Nambucca 6
17 Oct 16 Purchases PJ1 1 276 1 276 cr
28 Oct 16 Purchases PJ1 1 529 2 805 cr
U Runga 7
21 Oct 16 Purchases PJ1 803 803 cr
Waugh & Hope 8
5 Oct 16 Purchases PJ1 2 992 2 992 cr
W Wooton 9
1 Oct 16 Balance 1 474 1 474 cr
Bank [payment] CP1 1 474 0
15 Oct 16 Purchases PJ1 1 100 1 100 cr
24 Oct 16 Purchases PJ1 1 265 2 365 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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 201
© Cengage Learning Australia 2013
Question 5.33 finalised
Tony Lowman Accounts Receivable Listing
as at 31 October 2016
Tony Lowman Accounts Payable Listing
as at 31 October 2016
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 202
© Cengage Learning Australia 2013
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
Date Particulars and Reference Debit Credit Balance
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
18 Jan 16 Purchases tax inv 287 √ 264.00 1 649.00
28 Jan 16 Purchases tax inv 351 √ 627.00 2 276.00
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.
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 203
© Cengage Learning Australia 2013
Question 5.36 REMITTANCE ADVICE OF
Nic Matthew Quarygoe Road 31 July 2016 Ballina 2478 Elizabeth Webb
41 James Street Llandilo 2747
Customer 295
Date Particulars and Reference Debit Credit Balance
19 May 16 Purchases tax inv 129 √ 352.00 352.00
2 Jun 16 Purchases tax inv 147 √ 781.00 1 133.00
9 Jun 16 Purchases tax inv 186 √ 583.00 1 716.00
11 Jun 16 Purchases tax inv 209 √ 924.00 2 640.00
15 Jun 16 Purchases tax inv 231 √ 297.00 2 937.00
20 Jun 16 Purchases tax inv 281 √ 726.00 3 663.00
21 Jun 16 Purchases tax inv 333 √ 935.00 4 598.00
25 Jun 16 Purchases tax inv 400 √ 847.00 5 445.00
30 Jun 16 Purchases tax inv 519 √ 682.00 6 127.00
27 Jul 16 Bank chq 29522 6 127.00 0.00
Extract Accounts Receivable Listing
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 5 204
© Cengage Learning Australia 2013
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.
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 205
© Cengage Learning Australia 2013
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 206
© Cengage Learning Australia 2013
Question 6.4 General Journal of S Aravena GJ 1
1 Jan 16 Bank 5 000
Computer 10 000
GST Receivable 1 000
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
GST Receivable 5 000
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 207
© Cengage Learning Australia 2013
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 208
© Cengage Learning Australia 2013
Question 6.12 continued
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
Question 6.16 periodic inventory applies
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]
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 209
© Cengage Learning Australia 2013
Question 6.16 perpetual inventory applies
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]
Question 6.17 periodic inventory applies
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]
Question 6.17 perpetual inventory applies
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]
Question 6.18 periodic inventory applies
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]
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 210
© Cengage Learning Australia 2013
Question 6.18 continued (periodic inventory applies)
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]
Question 6.18 perpetual inventory applies
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
Bank Acc’nt Receiv
15 Oct 16 B/S P Boogers – A/c Rec chq dis 2 772 2 772 [cr] [dr]
Question 6.19 periodic inventory applies
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
Bank Acc’nt Receiv
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]
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 211
© Cengage Learning Australia 2013
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
Bank Acc’nt Receiv
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
Bank Acc’nt Receiv
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
Bank Acc’nt Receiv
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 212
© Cengage Learning Australia 2013
Question 6.20 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
1 Mar 16 Balance b/d 1 254
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 213
© Cengage Learning Australia 2013
Question 6.21 continued
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
1 Apr 16 Balance b/d 3 300
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
Bank Acc’nt Receiv
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]
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 214
© Cengage Learning Australia 2013
Question 6.22 continued
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
1 May 16 Balance b/d 5 830
Accounts Receivable Control 101
30 Apr 16 Sales SJ1 4 400 30 Apr 16 Bank [receipt] CR1 8 850
Bank [payment] CP1 4 450
8 850 8 850
GST Payable 200
30 Apr 16 Acc’nts Receivable Ctrl SJ1 400
Bank [receipt] CR1 130
530
Sales 400
30 Apr 16 Acc’nts Receivable Ctrl SJ1 4 000
Bank [receipt] CR1 1 300
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]
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 215
© Cengage Learning Australia 2013
Question 6.23 continued
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 216
© Cengage Learning Australia 2013
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
GST Payable GJ1 155 0
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 217
© Cengage Learning Australia 2013
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
GST Payable GJ1 121 0
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
Bank Acc’nt Receiv
7 May 16 643 T Causeway – A/c Rec R1 550 550 100 101
Cash Payments Journal of Brook Lyn CP 1
Bank Acc’nt Receiv
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 218
© Cengage Learning Australia 2013
Question 6.26 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
7 May 16 Bank [receipt] CR1 550 1 991 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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 219
© Cengage Learning Australia 2013
Question 6.28 Extract Cash Receipts Journal of R Hunter CR 1
Bank Acc’nt Receiv
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
Accounts Receivable Control 101
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
Accounts Receivable Control 101
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 220
© Cengage Learning Australia 2013
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
Accounts Payable Control 200
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 221
© Cengage Learning Australia 2013
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
Question 6.32 Business
Transaction Account Names Debit or
Credit Chart of
Account Group Account increase
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
Question 6.33 Business
Transaction Account Names Debit or
Credit Chart of
Account Group Account increase
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 222
© Cengage Learning Australia 2013
Question 6.34 Business
Transaction Account Names Debit or
Credit Chart of
Account Group Account increase
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
Question 6.35 Business
Transaction Account Names Debit or
Credit Chart of
Account Group Account increase
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 223
© Cengage Learning Australia 2013
Question 6.36 Business
Transaction Account Names Debit or
Credit Chart of
Account Group Account increase
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
Question 6.37 Business
Transaction Account Names Debit or
Credit Chart of
Account Group Account increase
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 224
© Cengage Learning Australia 2013
Question 6.37 continued Business
Transaction Account Names Debit or
Credit Chart of
Account Group Account increase
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
Question 6.38 periodic inventory applies
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]
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 225
© Cengage Learning Australia 2013
Question 6.38 continued (periodic inventory applies)
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
31 Jan 16 Receipts CR1 18 678 31 Jan 16 Payments CP1 13 134
Balance c/d 5 544
18 678 18 678
1 Feb 16 Balance b/d 5 544
Accounts Receivable Control 101 31 Jan 16 Sales SJ1 9 339 31 Jan 16 Bank [receipt] CR1 18 678
Bank [payment] CP1 9 339
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
1 Feb 16 Balance b/d 345
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 226
© Cengage Learning Australia 2013
Question 6.38 continued (periodic inventory applies)
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
Discount Received & GST CP1 198 0
Question 6.39 perpetual inventory applies
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
Bank Acc’nt Receiv
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]
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 227
© Cengage Learning Australia 2013
Question 6.39 continued (perpetual inventory applies)
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
1 Sep 16 Balance b/d 1 298
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
1 Sep 16 Balance b/d 1 430
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
Discount Received 410 31 Aug 16 Bank [payment] CP1 50
Cost of Goods Sold 500 31 Aug 16 Inventory SJ1 2 300
Discount Allowed 560 31 Aug 16 Bank [receipt] CR1 110
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 228
© Cengage Learning Australia 2013
Question 6.39 finalised (perpetual inventory applies)
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
12 Aug 16 Bank [receipt] CR1 2 200 121 dr
Discount Allowed & GST CR1 121 0
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
Discount Received & GST CP1 55 0
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
1 Sep 16 Balance b/d 21 890
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
1 Aug 16 Balance b/d 62 249
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 229
© Cengage Learning Australia 2013
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
1 Mar 16 Balance b/d 7 700
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
1 Jun 16 Balance b/d 16 093
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 230
© Cengage Learning Australia 2013
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
Question 6.46 Business
Transaction Account Names Debit or
Credit Chart of
Account Group Account increase
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
Question 6.47 Business
Transaction Account Names Debit or
Credit Chart of
Account Group Account increase
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 231
© Cengage Learning Australia 2013
Question 6.47 continued Business
Transaction Account Names Debit or
Credit Chart of
Account Group Account increase
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
Question 6.48 Business
Transaction Account Names Debit or
Credit Chart of
Account Group Account increase
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 232
© Cengage Learning Australia 2013
Question 6.49 Business
Transaction Account Names Debit or
Credit Chart of
Account Group Account increase
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
Question 6.50 Business
Transaction Account Names Debit or
Credit Chart of
Account Group Account increase
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 233
© Cengage Learning Australia 2013
Question 6.50 continued Business
Transaction Account Names Debit or
Credit Chart of
Account Group Account increase
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
Question 6.51 Business
Transaction Account Names Debit or
Credit Chart of
Account Group Account increase
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 234
© Cengage Learning Australia 2013
Question 6.51 continued Business
Transaction Account Names Debit or
Credit Chart of
Account Group Account increase
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 235
© Cengage Learning Australia 2013
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
GST Receivable 103 15
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]
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 236
© Cengage Learning Australia 2013
Question 6.52 continued
Cash Receipts Journal of L Miles CR 1 Bank Acc’nt
Receiv Disc’nt Allow’d
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 237
© Cengage Learning Australia 2013
Question 6.52 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
1 Feb 16 Balance b/d 14 344
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
1 Feb 16 Balance b/d 1 014
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
1 Feb 16 Balance b/d 8 338
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
1 Feb 16 Balance b/d 2 110
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 238
© Cengage Learning Australia 2013
Question 6.52 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
1 Feb 16 Balance b/d 22 980
Discount Received 410
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
1 Feb 16 Balance b/d 6 560
Discount Allowed 560
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 239
© Cengage Learning Australia 2013
Question 6.52 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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 240
© Cengage Learning Australia 2013
Question 6.52 finalised
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
as at 31 January 2016
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 241
© Cengage Learning Australia 2013
Question 6.53 continued
General Journal of K Knight continued GJ 1
4 Jul 16 Premises 150 22 000
Motor Vehicle 151 12 000
Accounts Receivable Control 101 5 500
– 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]
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 242
© Cengage Learning Australia 2013
Question 6.53 continued Cash Receipts Journal of K Knight CR 1
Bank Acc’nt Receiv
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
Bank Acc’nt Receiv
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]
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 243
© Cengage Learning Australia 2013
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
31 Jul 16 Receipts CR1 10 076 Balance c/d 70 076
75 076 75 076
1 Aug 16 Balance b/d 70 076 31 Aug 16 Payments CP2 70 504
31 Aug 16 Receipts CR2 11 738 Balance c/d 11 310
81 814 81 814
1 Sep 16 Balance b/d 11 310
Accounts Receivable Control 101
4 Jul 16 A Johnson & Co GJ1 5 500 31 Jul 16 Bank [receipt] CR1 4 103
31 Jul 16 Sales SJ1 5 896 Balance c/d 7 293
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
1 Sep 16 Balance b/d 3 982
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
Bank [payment] CP2 223
868 continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 244
© Cengage Learning Australia 2013
Question 6.53 continued General Ledger of K Knight continued Premises 150
4 Jul 16 A Johnson & Co GJ1 22 000
Motor Vehicle 151
4 Jul 16 A Johnson & Co GJ1 12 000
Goodwill 152
4 Jul 16 A Johnson & Co GJ1 14 000
A Johnson & Co 200
31 Aug 16 Bank [payment] CP2 58 000 4 Jul 16 Assets GJ1 58 000
Accounts Payable Control 201
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
1 Sep 16 Balance b/d 2 541
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
Bank [receipt] CR1 495
1 936 1 936
1 Sep 16 Balance b/d 1 809
Loan from New England Bank 250 1 Jul 16 Capital GJ1 30 000
Capital 300 1 Jul 16 Asset & Liability GJ1 35 000
Sales 400 31 Jul 16 Acc’nt Receivable Ctrl SJ1 5 360
Bank [receipt] CR1 4 710
10 070
31 Aug 16 Acc’nt Receivable Ctrl SJ2 3 620
Bank [receipt] CR2 2 570
16 260
Rent Received 410 31 Jul 16 Bank [receipt] CR1 760
31 Aug 16 Bank [receipt] CR2 760
1 520
Commission Received 411 31 Aug 16 Bank [receipt] CR2 1 760
continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 245
© Cengage Learning Australia 2013
Question 6.53 continued General Ledger of K Knight continued
Discount Received 411 31 Aug 16 Bank [payment] CP2 40
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
2 Aug 16 Bank [receipt] CR2 2 904 77 dr
Discount Allowed & GST CR2 77 0
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
6 Jul 16 Bank [receipt] CR1 1 452 44 dr
Discount Allowed & GST CR1 44 0 continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 246
© Cengage Learning Australia 2013
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
28 Jul 16 Bank [receipt] CR1 594 1 397 dr
6 Aug 16 Bank [receipt] CR2 397 1 000 dr
10 Aug 16 Bank [payment] – cheque dishonoured CP2 397 1 397 dr
31 Aug 16 Bad Debts GJ1 1 270 127 dr
GST Payable GJ1 127 0
M Piddington 5 18 Jul 16 Sales SJ1 2 915 2 915 dr
2 Aug 16 Bank [receipt] CR2 2 838 77 dr
Discount Allowed & GST CR2 77 0
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
14 Aug 16 Bank [payment] CP2 913 0
18 Aug 16 Purchase PJ2 242 242 cr
24 Aug 16 Purchase PJ2 418 660 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
Discount Received & GST CP2 44 0
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 247
© Cengage Learning Australia 2013
Question 6.53 continued
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 6 248
© Cengage Learning Australia 2013
Question 6.53 continued
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
as at 31 August 2016
K Knight Accounts Payable Listing
as at 31 August 2016
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
© Cengage Learning Australia 2013
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 7
© Cengage Learning Australia 2013
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
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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
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Question 7.8 continued
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
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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
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Question 7.10 finalised
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
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Question 7.12 finalised
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
1 Aug 16 Balance b/d 1 064
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
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Question 7.14 finalised
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
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Question 7.16 finalised
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
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Question 7.17 finalised
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
23 Aug 16 Cash/cheques deposit 637.00 18 Aug 16 Chq 112064 728.28
31 Aug 16 Cash/cheques deposit 24.86 28 Aug 16 Chq 112065 743.03
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)
Shown as information only; not required by question.
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
20 Oct 16 NatAus Point of Sale 281.95 7 Oct 16 Chq 944513 765.52
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
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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
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Question 7.20 Bank Reconciliation of R Wakool
as at 31 October 2016
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
Credit balance as per Bank account (2 703.31)
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)
Shown as information only; not required by question.
Extract Cash Receipts Journal of R Wakool
Extract Cash Payments Journal of R Wakool
2 Oct 16 NatAus Point of Sale 823.22 3 Oct 16 Chq 531489 454.06
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
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Question 7.21 Bank Reconciliation of R Buchan
as at 31 December 2016
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
Shown as information only; not required by question.
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
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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
Bank [payment] 38.00 Bank [payment] 34.18
Office Expenses Stationery
Bank [payment] 45.00 Bank [payment] 38.50
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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
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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
Credit balance as per Bank account (4 492.88)
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)
Shown as information only; not required by question.
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
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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
Shown as information only; not required by question.
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
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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
Credit balance as per Bank account (3 013.66)
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)
Shown as information only; not required by question.
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
17 Aug 16 Cash/cheques deposit 870.25 15 Aug 16 Chq 335394 928.60
28 Aug 16 NatAus Point of Sale 348.78 19 Aug 16 Chq 335395 745.35
31 Aug 16 Cash/cheques deposit 807.52 24 Aug 16 Chq 335396 426.52
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
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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
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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
Question 8.6 General Journal of . . . GJ . .
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
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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
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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
General Journal of . . . GJ . . Sales 30 000 Trading 30 000 Sales account closed out to trading
Trading 17 400 Inventory [opening] 2 500 Purchases 13 200 Customs Duty 1 200 Freight Inwards 500 Balances closed out to trading account
Inventory [closing] 2 800 Trading 2 800 Closing inventory as per physical stocktake
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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
Question 8.14 General Journal of . . . GJ . .
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
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Question 8.15
General Journal of . . . GJ . . Sales 73 500 Trading 73 500 Sales account closed out to trading
Trading 44 100 Cost of Goods Sold 44 100 Cost of goods sold account closed out to trading account
Sales Cost of Goods Sold
Trading 73 500 Balance 73 500 Balance 44 100 Trading 44 100
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
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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
General Journal of . . . GJ . . Trading 15 400
Profit and Loss 15 400 Trading account closed and gross profit to profit and loss
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
General Journal of . . . GJ . . Trading 12 500
Profit and Loss 12 500 Trading account closed and gross profit to profit and loss
Trading
Cost of Goods Sold 19 500 Sales 32 000 P & L [gross profit] 12 500 32 000 32 000
Profit and Loss Trading [gross profit] 12 500
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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
Profit and Loss Trading [gross profit] 29 400
Question 8.23
General Journal of . . . GJ . . Sales 35 000 Trading 35 000 Sales account closed out to trading
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
Profit and Loss Trading [gross profit] 19 400
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Question 8.24
General Journal of . . . GJ . . Sales 58 774 Trading 58 774 Sales account closed out to trading
Trading 31 827 Inventory [opening] 4 991 Purchases 24 759 Customs Duty 1 708 Freight Inwards 369 Balances closed out to trading account
Inventory [closing] 6 053 Trading 6 053 Closing inventory as per physical stocktake
Trading 33 000 Profit and Loss 33 000 Gross profit transferred to profit and loss account
Question 8.25
General Journal of . . . GJ . . Sales 35 000 Trading 35 000 Sales account closed out to trading
Trading 15 600 Cost of Goods Sold 15 600 Cost of goods sold account closed out to trading account
Trading 19 400 Profit and Loss 19 400 Trading account closed and gross profit to profit and loss a/c
Sales Cost of Goods Sold
Trading 35 000 Balance 35 000 Balance 15 600 Trading 15 600
Trading Cost of Goods Sold 15 600 Sales 35 000 P & L [gross profit] 19 400 35 000 35 000
Profit and Loss Trading [gross profit] 19 400
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Question 8.26
General Journal of . . . GJ . . Sales 58 774 Trading 58 774 Sales account closed out to trading account
Trading 25 774 Cost of Goods Sold 25 774 Cost of goods sold account closed out to trading account
Trading 33 000 Profit and Loss 33 000 Trading account closed and gross profit to profit and loss
Sales Cost of Goods Sold
Trading 58 774 Balance 58 774 Balance 25 774 Trading 25 774
Trading Cost of Goods Sold 25 774 Sales 58 774 P & L [gross profit] 33 000 58 774 58 774
Profit and Loss Trading [gross profit] 33 000
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 & Loss 700 Balance 700 Profit & Loss 800 Balance 800
Profit and Loss Discount Received 400 Interest Received 350 Commission Received 700 Dividend Received 800
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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
Profit & Loss 800 Balance 800 Profit & Loss 700 Balance 700
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
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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
Question 8.30 General Journal of . . . GJ . .
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
Question 8.31 General Journal of . . . GJ . .
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
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Question 8.31 continued
Extract General Ledger of . . . Sales Salaries Office Salaries
Balance 15 000 Profit & Loss 15 000 Balance 12 000 Profit & Loss 12 000
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
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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
Inventory [closing] 2 890 Trading 2 890 Closing inventory as per physical stocktake
Trading 29 530 Profit and Loss 29 530 Gross profit transferred to profit and loss 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
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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
Question 8.36a periodic 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 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
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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
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
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
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Question 8.37a periodic inventory applies
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
Inventory [closing] 1 235 Trading 1 235 Closing inventory as per physical stocktake
Trading 28 998 Profit and Loss 28 998 Gross profit transferred to profit and loss 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
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
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Question 8.37a continued (periodic inventory applies)
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
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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 45 406 Sales closed out to trading account
Trading 16 408 Cost of Goods Sold 16 408 Cost of goods sold closed to trading account
Trading 28 998 Profit and Loss 28 998 Gross profit transferred to profit and loss 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
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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
balance 615 Profit & Loss 615 balance 768 Profit & Loss 768
Motor Vehicle Expenses Salaries
balance 1 330 Profit & Loss 1 330 balance 17 790 Profit & Loss 17 790
Stationery Telephone
balance 109 Profit & Loss 109 balance 462 Profit & Loss 462
Bad Debts Interest
balance 229 Profit & Loss 229 balance 352 Profit & Loss 352
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
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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
Question 8.38a periodic inventory applies
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
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
continued
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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
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 [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
Profit & Loss 423 Balance 423 Profit & Loss 835 Balance 835
Purchases Freight Inwards
Balance 35 208 Trading 35 208 Balance 757 Trading 757
Sales Salaries Freight Outwards
Balance 8 194 Profit & Loss 8 194 Balance 958 Profit & Loss 958
continued
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Question 8.38a continued (periodic inventory applies)
General Ledger of B Mac Saville continued Office Salaries Insurance
Balance 5 113 Profit & Loss 5 113 Balance 576 Profit & Loss 576
Photocopying Stationery
Balance 331 Profit & Loss 331 Balance 294 Profit & Loss 294
Postage Bank Charges
Balance 180 Profit & Loss 180 Balance 95 Profit & Loss 95
Discount Allowed
Balance 366 Profit & Loss 366
Trading 31 Mar
Inventory [opening] 2 349 31
Sales 70 679 Purchases 35 208 Inventory [closing] 2 640
Freight Inwards 757
Profit & Loss [gross profit] 35 005
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
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Question 8.38b perpetual inventory applies
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
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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 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 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
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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
Profit & Loss [gross profit] 35 005
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
Question 8.39a periodic inventory applies
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
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Question 8.39a continued (periodic inventory applies)
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
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Question 8.39a continued (periodic inventory applies)
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
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
Trading
31 May 16 Inventory [opening] 15 630 31 May 16 Sales 279 896
Purchases 168 350 Inventory [closing] 17 480
Profit & Loss [gross profit] 113 396
297 376 297 376
continued
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Question 8.39a continued (periodic inventory applies)
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
Question 8.39b perpetual inventory applies
General Journal of N Glen GJ 1 31 May 16 Sales 279 896
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
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Question 8.39b continued (perpetual inventory applies)
Extract General Ledger of N Glen Sales Cost of Goods Sold
Trading 279 896 Balance 279 896 Balance 166 500 Trading 166 500
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)
General Journal of N Glen GJ 1 31 May 16 Sales 279 896
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 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
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Question 8.39b continued (perpetual inventory applies) (complete if question 8.39a was NOT done)
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 95 100 Balance 6 568 Accounts Payable Control GST Payable
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
Balance b/d 343 299 Drawings Sales
Balance 6 568 Capital 6 568 Trading 279 896 Balance 279 896
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
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Question 8.39b perpetual inventory continued (complete if question 8.39a was NOT done)
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
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
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Question 8.40a periodic inventory applies
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
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Question 8.40b perpetual inventory applies
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
Total Expenses 17 455 Net Profit 17 066
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Question 8.41a periodic inventory applies
Income Statement of Cec Nock for the year ended 31 March 2016
Revenue Sales 16 530 less Cost of Goods Sold
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
Total Expenses 11 802 Net Profit 1 206
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Question 8.41b perpetual inventory applies
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
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
Total Expenses 11 802 Net Profit 1 206
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Question 8.42a periodic inventory applies
Income Statement of B Mac Saville for the year ended 31 March 2016
Revenue Sales 70 679 less Cost of Goods Sold
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
Gross Profit 35 005 add Other Revenue
Discount Received 423 Bad Debts Recovered 835 1 258
Total Revenue 36 263 less Expenses Selling and Distribution
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
Total Expenses 16 107 Net Profit 20 156
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Question 8.42b perpetual inventory applies
Income Statement of B Mac Saville for the year ended 31 March 2016
Revenue Sales 70 679 less Cost of Goods Sold 35 674 Gross Profit 35 005 add Other Revenue
Discount Received 423 Bad Debts Recovered 835 1 258
Total Revenue 36 263 less Expenses Selling and Distribution
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
Total Expenses 16 107 Net Profit 20 156
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Question 8.43a periodic inventory applies
Income Statement of N Glen for the year ended 31 May 2016
Revenue Sales 279 896 less Cost of Goods Sold
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
Total Expenses 71 553 Net Profit 48 672
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Question 8.43b perpetual inventory applies
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
Total Expenses 71 553 Net Profit 48 672
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Question 8.44 periodic inventory applies
Income Statement of H Mercure for the year ended 31 March 2016
Sales 22 900 less Cost of Goods Sold
Inventory [opening] 1 200 Purchases 11 960 Cost of goods available for sale 13 160 less Inventory [closing] 1 100 12 060
Gross Profit 10 840 add Other Revenue 1 510 Total Revenue 12 350 less Expenses
Wages 5 152 Office Expenses 267 Vehicle Expenses 585
Total Expenses 6 004 Net Profit 6 346
Question 8.45 perpetual inventory applies
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
Total Expenses 20 590 Net Profit 4 690
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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
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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
Total Assets 127 495 Current Liabilities
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
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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
Total Assets 197 033 Current Liabilities
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
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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
Revenue Sales 48 195 less Cost of Goods Sold
Inventory [opening] 2 523 Purchases 12 889 Cost of goods available for sale 15 412 less Inventory [closing] 2 290 13 122
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
Total Expenses 31 778 Net Profit 3 851
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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
Total Assets 43 743 Current Liabilities
Accounts Payable Control 2 134 GST Payable 1 199 3 333
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
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Question 8.49b finalised (perpetual inventory applies)
Income Statement of L More for the year ended 30 June 2016
Revenue Sales 48 195 less Cost of Goods Sold 13 122 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
Total Expenses 31 778 Net Profit 3 851
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)
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Question 8.50a continued (periodic inventory applies)
Income Statement of M Bimby for the year ended 30 June 2016
Revenue Sales 147 868 less Cost of Goods Sold
Inventory [opening] 5 768 Purchases 52 457 Freight Inwards 527 Cost of goods available for sale 58 752 less Inventory [closing] 2 457 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 Discount Allowed 154 Debt Collection Expenses 184 2 515
Total Expenses 93 573 Net Loss (2 000)
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Question 8.50a continued (periodic inventory applies)
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
Total Assets 50 135 Current Liabilities
Bank Overdraft 10 971 Accounts Payable Control 8 360 GST Payable 3 696 23 027
less Total Liabilities 23 027 Net Assets 27 108
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
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Question 8.50b perpetual inventory applies
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
Discount Allowed 154
Debt Collection Expenses 184 2 515
Total Expenses 93 573
Net Loss (2 000)
Question 8.50b perpetual inventory applies (complete if question 8.50a was NOT done) The balance sheet and trial balance for 8.50b will be identical to that for 8.50a.
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)
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Question 8.51a continued (periodic inventory applies)
Income Statement of P Hastings for the year ended 31 December 2016
Revenue Sales 173 547 less Cost of Goods Sold
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
Gross Profit 83 352 add Other Revenue
Commission Received 8 396 Rent Received 10 744 Bad Debts Recovered 829 19 969
Total Revenue 103 321 less Expenses Selling and Distribution
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
Total Expenses 63 233 Net Profit 40 088
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Question 8.51a continued (periodic inventory applies) Balance Sheet of P Hastings
as at 31 December 2016
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
Total Assets 103 051 Current Liabilities
Accounts Payable Control 660 GST Payable 4 334 4 994
Non-current Liabilities Mortgage on Premises 26 000 less Total Liabilities 30 994 Net Assets 72 057
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
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Question 8.51b continued (perpetual inventory applies) Income Statement of P Hastings
for the year ended 31 December 2016
Revenue Sales 173 547 less Cost of Goods Sold 90 195 Gross Profit 83 352 add Other Revenue
Commission Received 8 396 Rent Received 10 744 Bad Debts Recovered 829 19 969
Total Revenue 103 321 less Expenses Selling and Distribution
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
Total Expenses 63 233 Net Profit 40 088
Question 8.51b perpetual inventory applies (complete if question 8.51a was NOT done) The balance sheet and trial balance for 8.51b will be identical to that for 8.51a.
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
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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
Balance 8 300 Profit & Loss 8 300 Balance 439 700 Profit & Loss 439 700
Electricity Expense Interest Expense
Balance 3 800 Profit & Loss 3 800 Balance 10 450 Profit & Loss 10 450
Telephone Expense
Balance 8 700 Profit & Loss 8 700
continued
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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
Total Assets 756 400 Current Liabilities
Accounts Payable Control 45 800 GST Payable 7 800 53 600
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
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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
Balance 4 600 Profit & Loss 4 600
continued
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Question 8.53 continued
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
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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
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Question 8.54a continued (periodic inventory applies)
General Ledger of B Ramourne Bank Accounts Receivable Control
Balance 23 742 Balance 3 520 Inventory GST Receivable
Balance open 2 079 Trading 2 079 Balance 847
Trading 1 564 Premises Motor Vehicles
Balance 35 623 Balance 28 195 Accounts Payable Control GST Payable
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
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Question 8.54a continued (periodic inventory applies)
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
for the year ended 30 June 2016
Revenue Sales 75 659 less Cost of Goods Sold
Inventory [opening] 2 079 Purchases 25 234 Freight Inwards 195 Cost of goods available for sale 27 508 less Inventory [closing] 1 564 25 944
Gross Profit 49 715 add Other Revenue
Rent Received 1 245 Interest Received 277 1 522
Total Revenue 51 237 less Expenses Selling and Distribution
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
Financial and Borrowing Bad Debts 125
Total Expenses 26 874 Net Profit 24 363
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Question 8.54a continued (periodic inventory applies)
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
Total Assets 93 491 Current Liabilities
Accounts Payable Control 4 543 GST Payable 1 892 6 435
less Total Liabilities 6 435 Net Assets 87 056
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
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Question 8.54b perpetual inventory applies (complete if question 8.54a was done) Extract General Ledger of B Ramourne
Sales Cost of Goods Sold Trading 75 659 Balance 75 659 Balance 25 944 Trading 25 944
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
for the year ended 30 June 2016
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
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Question 8.54b perpetual inventory applies (complete if question 8.54a was NOT done) General Ledger of B Ramourne
Bank Accounts Receivable Control Balance 23 742 Balance 3 520
Inventory GST Receivable Balance 1 564 Balance 847
Premises Motor Vehicles Balance 35 623 Balance 28 195
Accounts Payable Control GST Payable 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 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
Balance 125 Profit & Loss 125
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 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
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Question 8.54b perpetual inventory continued (complete if question 8.54a was NOT done)
Income Statement of B Ramourne for the year ended 30 June 2016
Revenue Sales 75 659 less Cost of Goods Sold 25 944 Gross Profit 49 715 add Other Revenue
Rent Received 1 245 Interest Received 277 1 522
Total Revenue 51 237 less Expenses Selling and Distribution
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
Financial and Borrowing Bad Debts 125
Total Expenses 26 874 Net Profit 24 363
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
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Question 8.55a continued (periodic inventory applies)
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
Bank Accounts Receivable Control Balance 31 041 Balance 7 931
Inventory GST Receivable Balance open 4 728 Trading 4 728 Balance 814
Trading 3 984 Motor Vehicles Computer
Balance 40 876 Balance 3 200 Accounts Payable Control GST Payable
Balance 3 102 Balance 2 211 Capital Drawings
Drawings 5 207 Balance 70 104 Balance 5 207 Capital 5 207
Balance c/d 82 533 Profit & Loss 17 636 87 740 87 740
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
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Question 8.55a continued (periodic inventory applies)
General Ledger of W Wauk continued 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
Trading
30 Jun 16 Inventory [opening] 4 728 30 Jun 16 Sales 88 628
Purchases 29 863 Inventory [closing] 3 984
Profit & Loss [gross profit] 58 021
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
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Question 8.55a continued (periodic inventory applies)
Income Statement of W Wauk for the year ended 30 June 2016
Revenue Sales 88 628 less Cost of Goods Sold
Inventory [opening] 4 728 Purchases 29 863 Cost of goods available for sale 34 591 less Inventory [closing] 3 984 30 607
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
Total Expenses 40 432 Net Profit 17 636
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Question 8.55a continued (periodic inventory applies)
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
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Question 8.55b continued (perpetual inventory applies) Extract General Ledger of W Wauk
Sales Cost of Goods Sold Trading 88 628 Balance 88 628 Balance 30 607 Trading 30 607
Trading 30 Jun 16 Cost of Goods Sold 30 607 30 Jun 16 Sales 88 628
Profit & Loss [gross profit] 58 021 88 628 88 628
Profit and Loss 30 Jun 16 Trading 58 021
Extract Income Statement of W Wauk
for the year ended 30 June 2016
Revenue Sales 88 628 less Cost of Goods Sold 30 607 Gross Profit 58 021
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
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Question 8.55b continued (complete if question 8.55a was NOT done)
General Ledger of W Wauk Bank Accounts Receivable Control
Balance 31 041 Balance 7 931 Inventory GST Receivable
Balance 3 984 Balance 814 Motor Vehicles Computer
Balance 40 876 Balance 3 200 Accounts Payable Control GST Payable
Balance 3 102 Balance 2 211 Capital Drawings
Drawings 5 207 Balance 70 104 Balance 5 207 Capital 5 207
Balance c/d 82 533 Profit & Loss 17 636 87 740 87 740
Balance b/d Sales Discount Received
Trading 88 628 Balance 88 628 Profit & Loss 47 Balance 47
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
Trading 30 Jun 16 Cost of Goods Sold 30 607 30 Jun 16 Sales 88 628
Profit & Loss [gross profit] 58 021
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
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Question 8.55b finalised (complete if question 8.55a was NOT done) Income Statement of W Wauk
for the year ended 30 June 2016
Revenue
Sales 88 628
less Cost of Goods Sold 30 607
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
Total Expenses 40 432
Net Profit 17 636
For this question, the balance sheet for 8.55b will be identical to that for 8.55a.
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
Trading 184 956 Inventory [opening] 11 822 Purchases 172 139 Freight Inwards 995 Balances transferred
continued
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Question 8.56a continued (periodic inventory applies) General Journal of S W Rocks continued GJ 1
Inventory [closing] 14 676 Trading 14 676 Closing stock as per stocktake
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
Profit and Loss 17 054 Capital 17 054 Net profit transferred to capital
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 6 721 Balance 30 000 Capital Drawings
Drawings 2 139 Balance 96 526 Balance 2 139 Capital 2 139
Balance c/d 111 441 Profit & Loss 17 054 113 580 113 580
Balance b/d 111 441 continued
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Question 8.56a continued (periodic inventory applies)
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 47 152 Balance 1 921 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 3 900 Balance 2 248 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
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Question 8.56a continued (periodic inventory applies)
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
Gross Profit 98 549 add Other Revenue
Commission Received 16 159
Total Revenue 114 708 less Expenses
Selling and Distribution
Sales Salaries 38 714
General and Administrative
Electricity 2 363
Office Salaries 47 152
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
Total Expenses 97 654 Net Profit 17 054
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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
Total Assets 171 928 Current Liabilities
Bank Overdraft 8 784 Accounts Payable Control 14 982 GST Payable 6 721 30 487
Non-current Liabilities Mortgage on Premises 30 000 less Total Liabilities 60 487 Net Assets 111 441
Owner’s Equity Capital 96 526 add Net Profit 17 054 113 580 less Drawings 2 139 Total Owner’s Equity 111 441
Question 8.56b perpetual inventory applies (complete if question 8.56a was done)
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
Trading 98 549 Profit and Loss 98 549 Gross profit transferred
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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 & Loss [gross profit] 98 549 268 829 268 829
Profit and Loss 31 Mar 16 Trading 98 549
Extract Income Statement of S W Rocks
for the year ended 31 March 2016
Revenue Sales 268 829 less Cost of Goods Sold 170 280 Gross Profit 98 549
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
Trading 170 280 Cost of Goods Sold 170 280 Balance transferred
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
Profit and Loss 17 054 Capital 17 054 Net profit transferred to capital
Capital 2 139 Drawings 2 139 Drawings transferred to capital
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Question 8.56b perpetual inventory continued (complete if question 8.56a was NOT done)
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 49 159 Balance 50 000 Accounts Payable Control Bank Overdraft
Balance 14 982 Balance 8 784 GST Payable Mortgage on Premises
Balance 6 721 Balance 30 000 Capital Drawings
Drawings 2 139 Balance 96 526 Balance 2 139 Capital 2 139
Balance c/d 111 441 Profit & Loss 17 054 113 580 113 580
Balance b/d 111 441 Sales Commission Received
Trading 268 829 Balance 268 829 Profit & Loss 16 159 Balance 16 159
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
Balance 2 248 Profit & Loss 2 248
Trading 31 Mar16 Cost of Goods Sold 170 280 31 Mar16 Sales 268 829
Profit & Loss [gross profit] 98 549 268 829 268 829
continued
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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
Revenue Sales 268 829
less Cost of Goods Sold 170 280
Gross Profit 98 549 add Other Revenue
Commission Received 16 159
Total Revenue 114 708 less Expenses
Selling and Distribution
Sales Salaries 38 714
General and Administrative
Electricity 2 363
Office Salaries 47 152
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
Total Expenses 97 654
Net Profit 17 054
For this question, the balance sheet for 8.56b will be identical to that for 8.56a.
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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
30 Jun 16 Sales 125 439 Trading 125 439 Balance transferred
Trading 54 934 Inventory [opening] 6 732 Purchases 47 501 Freight Inwards 701 Balances transferred
Inventory [closing] 6 507 Trading 6 507 Closing inventory as per stocktake
Trading 77 012 Profit and Loss 77 012 Gross profit 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
Profit and Loss 34 866 Capital 34 866 Net profit transferred to capital
Capital 2 187 Drawings 2 187 Drawings closed out to capital
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Question 8.57a continued (periodic inventory applies)
General Ledger of K Yogle Bank Accounts Receivable Control
Balance 37 428 Balance 14 069 Inventory GST Receivable
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 35 683 Balance 24 034 Accounts Payable Control GST Payable
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
Balance b/d 152 431 Drawings Sales
Balance 2 187 Capital 2 187 Trading 125 439 Balance 125 439
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
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Question 8.57a continued (periodic inventory applies)
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
Profit and Loss 30 Jun 16 Advertising 769 30 Jun 16 Trading [gross profit] 77 012
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
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Question 8.57a continued (periodic inventory applies)
Income Statement of K Yogle for the year ended 30 June 2016
Revenue Sales 125 439 less Cost of Goods Sold
Inventory [opening] 6 732 Purchases 47 501 Freight Inwards 701 Cost of goods available for sale 54 934 less Inventory [closing] 6 507 48 427
Gross Profit 77 012 add Other Revenue
Rent Received 3 600 Discount Received 387 3 987
Total Revenue 80 999 less Expenses Selling and Distribution
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
Total Expenses 46 133 Net Profit 34 866
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Question 8.57a continued (periodic inventory applies)
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
Total Assets 210 296 Current Liabilities
Accounts Payable Control 4 730 GST Payable 3 135 7 865
Non-current Liabilities Mortgage on Freehold Land 50 000 less Total Liabilities 57 865 Net Assets 152 431
Owner’s Equity Capital 119 752 add Net Profit 34 866 154 618 less Drawings 2 187 Total Owner’s Equity 152 431
Question 8.57b perpetual inventory applies (complete if question 8.57a was done)
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
30 Jun 16 Sales 125 439 Trading 125 439 Balance transferred
Trading 48 427 Cost of Goods Sold 48 427 Balance transferred
Trading 77 012 Profit and Loss 77 012 Gross profit transferred
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Question 8.57b continued (complete if question 8.57a was done)
Extract General Ledger of K Yogle Sales Cost of Goods Sold
Trading 125 439 Balance 125 439 Balance 48 427 Trading 48 427
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
Profit and Loss 30 Jun 16 Trading 77 012
Extract Income Statement of K Yogle
for the year ended 30 June 2016
Revenue Sales 125 439 less Cost of Goods Sold 48 427 Gross Profit 77 012
Question 8.57b perpetual inventory applies (complete if question 8.57a was NOT done)
General Journal of K Yogle GJ 1 30 Jun 16 Sales 125 439
Trading 125 439 Balance transferred
Trading 48 427 Cost of Goods Sold 48 427 Balances transferred
Trading 77 012 Profit and Loss 77 012 Gross profit 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
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Question 8.57b perpetual inventory continued (complete if question 8.57a was NOT done)
General Journal of K Yogle continued GJ 1 Profit and Loss 34 866 Capital 34 866 Net profit transferred to capital
Capital 2 187 Drawings 2 187 Drawings closed out to capital
General Ledger of K Yogle
Bank Accounts Receivable Control Balance 37 428 Balance 14 069
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
Accounts Payable Control GST Payable 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
Balance b/d 152 431 Drawings Sales
Balance 2 187 Capital 2 187 Trading 125 439 Balance 125 439
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
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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
Profit and Loss 30 Jun 16 Advertising 769 30 Jun 16 Trading [gross profit] 77 012
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
for the year ended 30 June 2016
Revenue Sales 125 439 less Cost of Goods Sold 48 427 Gross Profit 77 012 add Other Revenue
Rent Received 3 600 Discount Received 387 3 987
Total Revenue 80 999 less Expenses Selling and Distribution
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
Total Expenses 46 133 Net Profit 34 866
For this question, the balance sheet for 8.57b will be identical to that for 8.57a.
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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
Trading 59 187 Profit and Loss 59 187 Gross profit transferred
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
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Question 8.58a continued (periodic inventory applies)
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
Balance 3 201 Balance 7 500 Capital Drawings
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
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Question 8.58a continued (periodic inventory applies)
Extract General Ledger of T Broadwater continued 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 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
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Question 8.58a continued (periodic inventory applies)
Income Statement of T Broadwater for the year ended 31 December 2016
Revenue Sales 127 868 less Cost of Goods Sold
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
Total Expenses 61 337 Net Loss (2 000)
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Question 8.58a continued (periodic inventory applies)
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
Total Assets 180 373 Current Liabilities
Bank Overdraft 24 819 Accounts Payable Control 4 719 GST Payable 3 201 32 739
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
Total Owner’s Equity 140 134
Question 8.58b perpetual inventory applies (complete if question 8.58a was done)
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
Trading 68 681 Cost of Goods Sold 68 681 Balance transferred
Trading 59 187 Profit and Loss 59 187 Gross profit transferred
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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 127 868 Balance 127 868 Balance 68 681 Trading 68 681
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
for the year ended 31 December 2016
Revenue Sales 127 868 less Cost of Goods Sold 68 681 Gross Profit 59 187
Question 8.58b perpetual inventory applies (complete if question 8.58a was NOT done)
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
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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
Inventory GST Receivable Balance 9 223 Balance 1 815
Premises Plant and Equipment Balance 69 400 Balance 60 700
Motor Vehicles Bank Overdraft Balance 21 960 Balance 24 819
Accounts Payable Control GST Payable Balance 4 719 Balance 3 201
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
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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
Profit and Loss 59 187
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
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Question 8.58b continued (perpetual inventory applies) (complete if question 8.58a was NOT done)
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
Total Expenses 61 337 Net Loss (2 000)
For this question, the Balance Sheet for 8.58b will be identical to that for 8.58a.
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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
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Question 8.59a continued (periodic inventory applies)
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 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 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
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Question 8.59a continued (periodic inventory applies)
General Ledger of C Byron continued Advertising Cartage Outwards
Balance 1 293 Profit & Loss 1 293 Balance 1 178 Profit & Loss 1 178
Sales Commission Sales Salaries
Balance 3 878 Profit & Loss 3 878 Balance 15 815 Profit & Loss 15 815
Travellers Expenses Electricity
Balance 1 677 Profit & Loss 1 677 Balance 1 522 Profit & Loss 1 522
Insurance Legal Expenses
Balance 254 Profit & Loss 254 Balance 328 Profit & Loss 328
Office Cleaning Office Expenses
Balance 1 605 Profit & Loss 1 605 Balance 2 181 Profit & Loss 2 181
Office Salaries Rates and Taxes
Balance 18 776 Profit & Loss 18 776 Balance 1 653 Profit & Loss 1 653
Repairs and Maintenance Bad Debts
Balance 1 168 Profit & Loss 1 168 Balance 294 Profit & Loss 294
Debt Collection Expenses Discount Allowed
Balance 175 Profit & Loss 175 Balance 185 Profit & Loss 185
Interest on Overdraft
Balance 819 Profit & Loss 819
Trading 30 Jun 16 Inventory 4 540 30 Jun 16 Sales 109 117
Purchases 27 989 Inventory 3 104
Cartage inwards 418
Duty and Wharfage 2 727
Profit & Loss 76 547
112 221 112 221
continued
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Question 8.59a continued (periodic inventory applies)
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
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Question 8.59a continued (periodic inventory applies)
Income Statement of C Byron for the year ended 30 June 2016
Revenue
Sales 109 117
less Cost of Goods Sold
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
Gross Profit 76 547 add Other Revenue
Discount Received 281
Rent Received 2 798 3 079
Total Revenue 79 626 less Expenses
Selling and Distribution
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
Total Expenses 52 801
Net Profit 26 825
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Question 8.59a continued (periodic inventory applies)
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
Total Owner’s Equity 54 080
Question 8.59b perpetual inventory applies (complete if question 8.59a was done)
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
30 Jun 16 Sales 109 117 Trading 109 117 Balance transferred
Trading 32 570 Cost of Goods Sold 32 570 Balance transferred
Trading 76 547 Profit and Loss 76 547 Gross profit transferred
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Question 8.59b perpetual inventory continued (complete if question 8.59a was done)
Extract General Ledger of C Byron Sales Cost of Goods Sold
Trading 109 117 Balance 109 117 Balance 32 570 Trading 32 570
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 Trading 76 547
Extract Income Statement of C Byron
for the year ended 30 June 2016
Revenue Sales 109 117 less Cost of Goods Sold 32 570 Gross Profit 76 547
Question 8.59b perpetual inventory continued (complete if question 8.59a was NOT done)
General Journal of C Byron GJ 1 30 Jun 16 Sales 109 117
Trading 109 117 Balance transferred
Trading 32 570 Cost of Goods Sold 32 570 Balance transferred
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
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Question 8.59b perpetual inventory continued (complete if question 8.59a was NOT done)
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
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 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
Balance 1 293 Profit & Loss 1 293 Balance 1 178 Profit & Loss 1 178
Sales Commission Sales Salaries
Balance 3 878 Profit & Loss 3 878 Balance 15 815 Profit & Loss 15 815
continued
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Question 8.59b perpetual inventory continued (complete if question 8.59a was NOT done)
General Ledger of C Byron continued Travellers’ Expenses Electricity
Balance 1 677 Profit & Loss 1 677 Balance 1 522 Profit & Loss 1 522
Insurance Legal Expenses
Balance 254 Profit & Loss 254 Balance 328 Profit & Loss 328
Office Cleaning Office Expenses
Balance 1 605 Profit & Loss 1 605 Balance 2 181 Profit & Loss 2 181
Office Salaries Rates and Taxes
Balance 18 776 Profit & Loss 18 776 Balance 1 653 Profit & Loss 1 653
Repairs and Maintenance Bad Debts
Balance 1 168 Profit & Loss 1 168 Balance 294 Profit & Loss 294
Debt Collection Expenses Discount Allowed Balance 175 Profit & Loss 175 Balance 185 Profit & Loss 185
Interest on Overdraft
Balance 819 Profit & Loss 819
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
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Question 8.59b perpetual inventory continued (complete if question 8.59a was NOT done)
Income Statement of C Byron for the year ended 30 June 2016
Revenue Sales 109 117 less Cost of Goods Sold 32 570 Gross Profit 76 547 add Other Revenue
Discount Received 281 Rent Received 2 798 3 079
Total Revenue 79 626 less Expenses Selling and Distribution
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
Total Expenses 52 801 Net Profit 26 825
For this question, the balance sheet for 8.59b will be identical to that for 8.59a.
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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
Profit and Loss 10 800
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
1 Aug 16 Balance b/d 900
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
Profit and Loss 20 350
Wages 20 350
Balance transferred to profit and loss
1 Jul 16 Expense Accrued 350 Wages 350 Reversal
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Question 9.3 continued
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
5 Jul 16 Balance b/d 1 050
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
Expense Accrued 1 160
Accrual of four days’ salary
Profit and Loss 69 160
Salaries 69 160
Balance transferred
1 Jul 16 Expense Accrued 1 160 Salaries 1 160 Reversal
Extract General Ledger of . . .
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
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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
Extract General Ledger of . . .
Rates 30 Jun 16 Balance b/d 2 500 30 Jun 16 Expense Prepaid [bal day adj] 500
Profit and Loss 2 000
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
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Question 9.7 continued
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
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Question 9.8 continued Extract Income Statement of . . .
for the year ended 31 December 2016
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
Profit and Loss 2 513
Balance transferred
1 Jul 16 Interest Received 375 Revenue Accrued 375 Reversal
Extract General Ledger of . . .
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
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Question 9.10
General Journal of . . . GJ . . 30 Jun 16 Revenue Accrued 1 250
Interest Received 1 250
Interest accrued on government bonds
Interest Received 3 000
Profit and Loss 3 000
Balance transferred
1 Jul 16 Interest Received 1 250
Revenue Accrued 1 250 Reversal
Extract General Ledger of . . .
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
Question 9.11 Not required by the question, but very helpful in obtaining the correct answer!
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
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Question 9.11 continued
General Journal of . . . GJ . . 31 Dec 16 Wages 1 200
Expense Accrued 1 200
Wages accrued
Revenue Accrued 1 700
Interest Received 1 700
Revenue not yet received
Interest Received 8 200
Profit and Loss 8 200
Revenue closed out
Profit and Loss 77 800
Wages 77 800
Expense closed out
1 Jan 17 Interest Received 1 700
Revenue Accrued 1 700
Reversal of revenue accrual
Expense Accrued 1 200
Wages 1 200
Reversal of expense accrual
Extract Income Statement of . . .
for the year ended 31 December 2016
add Other Revenue Interest Received 8 200
less Expenses General and Administrative
Wages 77 800 [Net balance 69 600]
Extract Balance Sheet of . . .
as at 31 December 2016
Current Assets Revenue Accrued 1 700 . . .
Current Liabilities Expense Accrued 1 200
[Net balance 500]
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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
Profit and Loss 7 200
Balance transferred
1 Jul 16 Revenue Received in Advance 600 Rent Received 600 Reversal
Extract General Ledger of . . .
Rent Received 30 Jun 16 Revenue Recd in Adv [bda] 600 30 Jun 16 Balance b/d 7 800
Profit and Loss 7 200
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
Adjustment for July rent received in June
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
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Question 9.14 General Journal of . . . GJ . .
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
Extract Balance Sheet of . . .
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
General Journal of . . . GJ . .
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
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Question 9.15 continued
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
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Question 9.16 continued
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
Profit and Loss 2 353
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
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Question 9.18 Not required by the question, but very helpful in obtaining the correct answer!
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
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Question 9.18
Extract Income Statement of . . . for the year ended 31 December 2016
less Expenses Financial and Borrowing
Bad Debts 2 300 Doubtful Debts 1 200 3 500
Extract Balance Sheet of . . .
as at 31 December 2016
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
for the year ended 30 June 2016
less Expenses General and Administrative
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
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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
Extract Income Statement of . . .
for the year ended 30 June 2016
less Expenses General and Administrative
Depreciation – Equipment 1 500
Extract Balance Sheet of . . .
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
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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
for the year ended 30 June 2015
less Expenses General and Administrative
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
Extract Balance Sheet of D Burrendong as at 30 June 2016
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
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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]
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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
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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
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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
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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
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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
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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
Extract General Ledger of . . .
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
1 Jul 16 Balance b/d 3 600
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
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Question 9.32 continued
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
1 Jul 16 Balance b/d 2 800
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
Extract Income Statement of . . . for the year ended 30 June 2016
less Expenses General and Administrative Rates 4 520
Extract Balance Sheet of . . . as at 30 June 2016
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
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Question 9.33 continued
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
Extract Income Statement of . . . for the year ended 30 June 2016
less Expenses General and Administrative Maintenance 4 395
Extract Balance Sheet of . . . as at 30 June 2016
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
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Question 9.34 continued
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
1 Jul 16 Balance b/d 40 500
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
Extract Income Statement of . . . for the year ended 30 June 2016
Revenue Maintenance/Service Revenue 48 000
Extract Balance Sheet of . . . as at 30 June 2016
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
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Question 9.35 continued
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
1 Jul 16 Balance b/d 42 910
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
Extract Income Statement of . . .
for the month ended 31 July 2015
less Expenses General and Administrative Depreciation – Machinery 907
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Question 9.36 continued
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]
Extract Balance Sheet of . . .
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
GST Receivable 1 714
Bank [payment] 18 854
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
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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
Exp Accrued [bda 3 days *665] 1 995
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
Exp Accrued [bda 4 days *620] 2 480
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 15 Insurance [balance day adjustm’t] 650 1 Jan 16 Insurance [reversal] 650
31 Dec 16 Insurance [balance day adjustm’t] 750 1 Jan 17 Insurance [reversal] 750
31 Dec 17 Insurance [balance day adjustm’t] 790 1 Jan 18 Insurance [reversal] 790
31 Dec 18 Insurance [balance day adjustm’t] 840 continued
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Question 9.39 continued
Extract General Ledger of R Little continued Insurance
1 Jan 15 Expense Prepaid [reversal] 500 31 Dec 15 Expense Prepaid [bda] 650
28 Feb 15 Bank [payment] 3 900 Profit and Loss 3 750
4 400 4 400
1 Jan 16 Expense Prepaid [reversal] 650 31 Dec 16 Expense Prepaid [bda] 750
28 Feb 16 Bank [payment] 4 500 Profit and Loss 4 400
5 150 5 150
1 Jan 17 Expense Prepaid [reversal] 750 31 Dec 17 Expense Prepaid [bda] 790
28 Feb 17 Bank [payment] 4 740 Profit and Loss 4 700
5 490 5 490
1 Jan 18 Expense Prepaid [reversal] 790 31 Dec 18 Expense Prepaid [bda] 840
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 15 Interest Received [bda] 1 125 1 Jul 15 Interest Received [reversal] 1 125
30 Jun 16 Interest Received [bda] 1 125 1 Jul 16 Interest Received [reversal] 1 125
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
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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
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Question 9.43 continued
a, b & reversals: continued General Journal of . . . GJ . .
Profit and Loss 48 940
Depreciation – Equipment 8 250
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
Profit and Loss 4 190
5 100 5 100
1 Jul 16 Expense Prepaid [reversal] 910
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
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Question 9.43 finalised
d Extract Income Statement of . . . for the year ended 30 June 2016
less Expenses General and Administrative
Depreciation – Equipment 8 250 Insurance 4 190 Wages 36 500 48 940
Extract Balance Sheet of . . .
as at 30 June 2016
Current Assets Expense Prepaid 910 Non-current Assets
Equipment 55 000 less Accumulated Depreciation 29 250 25 750
Current Liabilities Expense Accrued 700
Question 9.44 General Journal of . . . GJ . .
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
Profit and Loss 4 350
Depreciation – Machinery 2 700
Insurance [1 200 + 1 800 – 1 350] 1 650
Balances transferred
1 Jul 15 Insurance 1 350
Expense Prepaid 1 350
Reversal
30 Jun 16 Depreciation – Machinery 5 400
Accumulated Depreciation – Machinery 5 400
Depreciation on machinery for 12 months
Expense Prepaid 1 575
Insurance 1 575
Adjustment for 9 months’ prepaid insurance
Profit and Loss 7 275
Depreciation – Machinery 5 400
Insurance [1350 + 2100 – 1575] 1 875
Balances transferred
1 Jul 16 Insurance 1 575 Expense Prepaid 1 575 Reversal
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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
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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 . . .
Revenue Accrued 30 Jun 16 Interest Received [bda] 600 1 Jul 16 Interest Received [reversal] 600
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
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Question 9.46 continued
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
1 Jul 16 Expense Prepaid [reversal] 700
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 . . .
for the year ended 30 June 2016
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
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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
Question 9.47 Not required by the question, but very helpful in obtaining the correct answer!
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
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Question 9.47 continued General Journal of . . . GJ . .
31 Dec 16 Rent Received 550
Revenue Received in Advance 550
Adjustment for July rent received in June
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
Profit and Loss 10 500
Revenue accounts closed out to profit and loss
Profit and Loss 4 860
Insurance [2 580 – 610] 1 970
Depreciation – Equipment 2 890
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
Extract Income Statement of . . .
for the year ended 31 December 2016
add Other Revenue Rent Received 6 600 Interest Received 3 900 10 500
less Expenses General and Administrative
Insurance 1 970 Depreciation – Equipment 2 890 4 860
Net balance 5 640
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Question 9.47 finalised Extract Balance Sheet of . . .
as at 31 December 2016
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
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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
General Journal of . . . GJ . .
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
Profit and Loss 19 100
Revenue accounts closed out to profit and loss
Profit and Loss 72 615
Depreciation – Machinery 10 140
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
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Question 9.48 continued Extract Income Statement of . . .
for the year ended 30 June 2016
add Other Revenue Interest Received 4 100 Rent Received 15 000 19 100
less Expenses General and Administrative
Depreciation – Machinery 10 140 Rates 2 975 Salaries and Wages 59 500 72 615
Net balance (53 515)
Extract Balance Sheet of . . . as at 30 June 2016
Current Assets
Expense Prepaid 5 025
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
Expense Accrued 1 200
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
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Question 9.49 continued Extract Income Statement of D Peggy
for the year ended 30 June 2015
less Expenses General and Administrative
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
for the year ended 30 June 2016
less Expenses General and Administrative
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
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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
less Expenses Financial and Borrowing
Bad Debts [640 + 260] 900 Doubtful Debts [250 + (1700 – 1421)] 529 1 429
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Question 9.51 continued
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
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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
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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
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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
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Question 9.55 continued
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 15 Insurance [bda] 700 1 Jul 15 Insurance [reversal] 700
30 Jun 16 Insurance [bda] 810 1 Jul 16 Insurance [reversal] 810
30 Jun 17 Insurance [bda] 970
Revenue Accrued 30 Jun 15 Interest Received [bda] 200 1 Jul 15 Interest Received [reversal] 200
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
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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
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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
Extract Income Statement of . . . for the year ended 30 June 2016
less Expenses General and Administrative Insurance 7 260
Extract Balance Sheet of . . . as at 30 June 2016
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
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Question 9.57 continued
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
1 Jul 16 Balance b/d 39 130
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
Extract Income Statement of . . . for the year ended 30 June 2016
Revenue Magazine Subscriptions 64 104
Extract Balance Sheet of . . . as at 30 June 2016
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
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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
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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
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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
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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
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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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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Question 10.9
6-column Worksheet of Myrtle Scrub for the year ended 30 June 2016
Trial Balance Adjustments Trial Bal Post Adj Debit Credit Debit Credit Debit Credit
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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428 Question 10.10
6-column Worksheet of Don Dingalong for the year ended 31 December 2016
Trial Balance Adjustments Trial Bal Post Adj Debit Credit Debit Credit Debit Credit
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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Question 10.11
6-column Worksheet of R Bland for the year ended 30 June 2016
Trial Balance Adjustments Trial Bal Post Adj Debit Credit Debit Credit Debit Credit
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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Question 10.12
6-column Worksheet of D Tantangara for the six months ended 31 March 2016
Trial Balance Adjustments Trial Bal Post Adj Debit Credit Debit Credit Debit Credit
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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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
GST Receivable 1 400 1 400
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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Question 10.14
10-column Worksheet of Ann Gourie for the year ended 31 March 2016
Account Trial Balance Adjustments Trading Profit & Loss Balance Sheet
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
Doubtful Debts 530 530
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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Question 10.15
10-column Worksheet of R Murrumbidgee for the year ended 30 June 2016
Account Trial Balance Adjustments Trading Profit & Loss Balance Sheet
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
GST Receivable 2 410 2 410
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
Doubtful Debts 490 490
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
Gross Profit 76 396 76 396
Net Profit 12 511 12 511
181 986 181 986 79 096 79 096 198 920 198 920
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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Question 10.16a (periodic inventory applies)
10-column Worksheet of D Blowering for the year ended 30 June 2016
Account Trial Balance Adjustments Trading Profit & Loss Balance Sheet
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
GST Receivable 1 148 1 148
Land & Buildings 75 000 75 000
Motor Vehicles 28 000 28 000
Acc Dep -Mot Veh 8 300 2 100 10 400
Investmt in Shares 3 800 3 800
Bank Overdraft 15 719 15 719
Acc’nt Payable Ctrl 16 830 16 830
GST Payable 2 275 34 2 241
18% Mort’ge L & B 45 000 45 000
Capital 38 460 38 460
Drawings 2 140 2 140
Sales 90 985 90 985
Rent Received 6 300 900 5 400
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
Discount Allowed 2 840 2 840
224 484 224 484
Inventory [30 June 2016] 9 284 9 284
Trading 9 284 9 284
Doubtful Debts 282 282
Depreciation – Motor Vehicles 2 100 2 100
Expense Accrued [salaries] 1 070
Expense Accrued [interest] 875 4 645
Expense Accrued [interest] 2 700
Expense Prepaid [insurance] 4 480 4 480
Revenue Received Advance [rent rec’d] 900 900
22 065 22 065 46 170 100 269 40 591 5 400 154 000 135 092
Gross Profit 54 099 54 099
Net Profit 18 908 18 908
100 269 100 269 59 499 59 499 154 000 154 000
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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Question 10.16b (perpetual inventory applies)
10-column Worksheet of D Blowering for the year ended 30 June 2016
Account Trial Balance Adjustments Trading Profit & Loss Balance Sheet
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
GST Receivable 1 167 19 1 148
Land & Buildings 75 000 75 000
Motor Vehicles 28 000 28 000
Acc Dep – Motor Veh 8 300 2 100 10 400
Investment in Shares 3 800 3 800
Bank Overdraft 15 719 15 719
Account Payable Ctrl 16 830 16 830
GST Payable 2 275 34 2 241
18% Mortgage L & B 45 000 45 000
Capital 38 460 38 460
Drawings 2 140 2 140
Sales 90 985 90 985
Rent Received 6 300 900 5 400
Cost of Goods Sold 36 677 209 36 886
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
Discount Allowed 2 840 2 840
224 484 224 484
Doubtful Debts 282 282
Depreciation – Motor Vehicles 2 100 2 100
Expense Accrued [salaries] 1 070
Expense Accrued [interest] 875 4 645
Expense Accrued [interest] 2 700
Expense Prepaid [insurance] 4 480 4 480
Revenue Received Advance [rent rec’d] 900 900
12 990 12 990 36 886 90 985 40 591 5 400 154 000 135 092
Gross Profit 54 099 54 099
Net Profit 18 908 18 908
90 985 90 985 59 499 59 499 154 000 154 000
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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Question 10.17
10-column Worksheet of B Plowman for the year ended 30 June 2016
Account Trial Balance Adjustments Trading Profit & Loss Balance Sheet
Acc’nt Payable Ctrl 2 871 2 871
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
Discount Received 91 91
Dividend Received 386 386
Drawings 265 265
Freight Inwards 2 691 2 691
Freight Outwards 4 179 4 179
GST Receivable 1 180 1 180
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
Doubtful Debts 75 75
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 Accrued [salaries] 590 590
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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Question 10.18a (periodic inventory applies)
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
© Cengage Learning Australia 2013
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Question 10.18a continued (periodic inventory applies)
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
Question 10.18b (perpetual inventory applies)
Extract Income Statement of Jenny McLaughlin for the year ended 30 June 2016
Revenue Sales 77 337 less Cost of Goods Sold 31 265 Gross Profit 46 072
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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Question 10.19a (periodic inventory applies)
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
© Cengage Learning Australia 2013
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Question 10.19a continued (periodic inventory applies)
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
Owners’ Equity Capital 117 634 add Net Profit 19 215 136 849 less Drawings 2 050 Total Owners’ Equity 134 799
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
© Cengage Learning Australia 2013
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Question 10.19b (perpetual inventory applies)
Extract Income Statement of Maureen Payne for the year ended 30 June 2016
Revenue Sales 192 343 less Cost of Goods Sold 100 150 Gross Profit 92 193
Income Statement of Maureen Payne
for the year ended 30 June 2016
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.
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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Question 10.20a (periodic inventory applies)
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
© Cengage Learning Australia 2013
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Question 10.20a continued (periodic inventory applies)
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
Question 10.20b (perpetual inventory applies)
Extract Income Statement of John Spalding for the year ended 30 June 2016
Revenue Sales 117 531 less Cost of Goods Sold 52 341 Gross Profit 65 190
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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Question 10.21a (periodic inventory applies)
10-column Worksheet of G Gardiner for the year ended 31 December 2016
Account Trial Balance Adjustments Trading Profit & Loss Balance Sheet
Stationery 569 157 726
Sales Salaries 18 080 1 638 19 718
Sales 197 366 197 366
Rent Received 8 028 823 7 205
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
GST Receivable 1 810 1 810
GST Payable 4 930 4 930
Electricity 1 885 100 1 985
Drawings 3 893 3 893
Donations 280 280
Customs Duty 3 187 3 187
Capital 18 738 18 738
Buildings 46 560 46 560
Bank Overdraft 4 847 4 847
Bank Charges 209 209
Bad Debts Recov’d 1 680 1 680
Bad Debts 288 288
Advertising 3 753 3 753
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
Acc’nt Payable Ctrl 6 633 6 633
15% Mort Ld & Bld 10 000 10 000
274 659 274 659
continued …
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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Question 10.21a continued (periodic inventory applies)
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
Doubtful Debts 559 559
Allowance for Doubtful Debts 559 559
Depreciation – Buildings 1 164 1 164
Depreciation – Machinery & Equipment 6 491 6 491
Expense Accrued [interest] 275
Expense Accrued [interest] 250
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
Expense Prepaid [insurance] 1 230 1 230
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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Question 10.21a continued (periodic inventory applies)
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
© Cengage Learning Australia 2013
447
Question 10.21a continued (periodic inventory applies)
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
Owners’ Equity Capital 18 738 add Net Profit 73 758 92 496 less Drawings 3 893 Total Owners’ Equity 88 603
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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Question 10.21b (perpetual inventory applies)
10-column Worksheet of G Gardiner for the year ended 31 December 2016
Account Trial Balance Adjustments Trading Profit & Loss Balance Sheet
Stationery 569 157 726
Sales Salaries 18 080 1 638 19 718
Sales 197 366 197 366
Rent Received 8 028 823 7 205
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
GST Receivable 1 825 15 1 810
GST Payable 4 930 4 930
Electricity 1 885 100 1 985
Drawings 3 893 3 893
Donations 280 280
Capital 18 738 18 738
Buildings 46 560 46 560
Bank Overdraft 4 847 4 847
Bank Charges 209 209
Bad Debts Recov’d 1 680 1 680
Bad Debts 288 288
Advertising 3 753 3 753
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
Acc’nt Payable Ctrl 6 633 6 633
15% Mort Ld & Bld 10 000 10 000
274 659 274 659
continued …
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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Question 10.21b continued (perpetual inventory applies)
10-column Worksheet of G Gardiner (continued) for the year ended 31 December 2016
Adjustments Trading Profit & Loss Balance Sheet
Doubtful Debts 559 559
Allowance for Doubtful Debts 559 559
Depreciation – Buildings 1 164 1 164
Depreciation – Machinery & Equipment 6 491 6 491
Expense Accrued [interest] 275
Expense Accrued [interest] 250
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
Expense Prepaid [insurance] 1 230 1 230
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
Revenue Sales 197 366 less Cost of Goods Sold 60 250 Gross Profit 137 116
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.
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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Question 10.21b continued (perpetual inventory applies) (complete if question 10.21a was NOT done)
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
For this question, the Balance Sheet for 10.21b will be identical to that for 10.21a.
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
© Cengage Learning Australia 2013
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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Question 10.22 continued
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
Total Expenses 532 650 Net Profit 250 450
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
Total Assets 703 150 Current Liabilities
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
less Total Liabilities 506 250 Net Assets 196 900
Owner’s Equity Capital 210 350 add Net Profit 250 450 460 800 less Drawings 263 900
Total Owner’s Equity 196 900
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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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
Depreciation – Motor Vehicle 11 019 11 019
Expense Accrued [interest] 2 453
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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Question 10.23 continued
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
Total Assets 640 585 Current Liabilities
Accounts Payable Control 2 612 GST Payable 1 600 Expense Accrued 4 288 8 500
Non-current Liabilities Loan on Premises 184 000
less Total Liabilities 192 500 Net Assets 448 085
Owner’s Equity Capital 211 580 add Net Profit 256 197 467 777 less Drawings 19 692
Total Owner’s Equity 448 085
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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Question 10.24a (periodic inventory applies)
10-column Worksheet of D Jounama for the six months ended 30 June 2016
Account Trial Balance Adjustments Trading Profit & Loss Balance Sheet
Bank 22 327 22 327
A/c Receivab Ctrl 11 484 330 11 154
Allow Doubt Debt 420 85 335
Inventory [1.1.2016] 6 057 6 057
GST Receivable 810 810
Machinery 59 000 59 000
Acc Depr – Machin 15 213 5 900 21 113
Motor Vehicles 22 000 22 000
Acc Dep – Mot Veh 6 600 1 650 8 250
Acc’nt Payable Ctrl 4 081 4 081
GST Payable 1 910 30 1 880
Loan fr A Reservoir 24 000 24 000
Capital 53 021 53 021
Drawings 3 175 3 175
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
Electricity 581 378 959
Telephone 234 215 449
Insurance 720 350 370
Bank Charges 61 61
Interest on Loan 1 080 870 1 950
Bad Debt Expense 848 300 1 148
Discount Allowed 367 367
Doubtful Debt Expense 208 85 123
181 797 181 797
Inventory [30 June 2016] 6 254 6 254 Trading 6 254 6 254
Expense Accrued [salaries] 790 790
Expense Prepaid [insurance] 350 350
Depreciation – Machinery 5 900 5 900
Depreciation – Motor Vehicle 1 650 1 650
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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Question 10.24a continued (periodic inventory applies)
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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Question 10.24a continued (periodic inventory applies)
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
Owners’ Equity Capital 53 021 add Net Profit 10 137 63 158 less Drawings 3 175 Total Owners’ Equity 59 983
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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Question 10.24b (perpetual inventory applies)
10-column Worksheet of D Jounama for the six months ended 30 June 2016
Account Trial Balance Adjustments Trading Profit & Loss Balance Sheet
Bank 22 327 22 327
A/c Receivab Ctrl 11 484 330 11 154
Allow Doubt Debt 420 85 335
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
Motor Vehicles 22 000 22 000
Acc Dep – Mot Veh 6 600 1 650 8 250
Acc’nt Payable Ctrl 4 081 4 081
GST Payable 1 910 30 1 880
Loan fr A Reservoir 24 000 24 000
Capital 53 021 53 021
Drawings 3 175 3 175
Sales 76 552 76 552
Cost of Good Sold 29 029 385 29 414
Advertising 486 486
Freight Outwards 859 859
Salaries 21 889 790 22 679
Electricity 581 378 959
Telephone 234 215 449
Insurance 720 350 370
Bank Charges 61 61
Interest on Loan 1 080 870 1 950
Bad Debts 848 300 1 148
Discount Allowed 367 367
Doubtful Debts 208 85 123
181 797 181 797
Expense Accrued [salaries] 790 790 Expense Prepaid [insurance] 350 350
Depreciation – Machinery 5 900 5 900
Depreciation – Motor Vehicle 1 650 1 650
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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Question 10.24b continued (perpetual inventory applies)
Extract Income Statement of D Jounama for the six months ended 30 June 2016
Revenue Sales 76 552 less Cost of Goods Sold 29 414 Gross Profit 47 138
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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Question 10.25a (periodic inventory applies)
10-column Worksheet of Julia Kreiger for the year ended 30 June 2016
Account Trial Balance Adjustments Trading Profit & Loss Balance Sheet
Bank 8 992 8 992
Petty Cash 550 550
A/c Receivabl Ctrl 40 392 253 40 139
Allow Doubt Debt 400 400 800
Inventory [1.7.2015] 6 219 6 219
Motor Vehicles 61 496 61 496
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
Bad Debts Recov’d 2 700 2 700
Capital 73 887 73 887
Acc’nt Payable Ctrl 18 975 18 975
Electricity 2 179 420 2 599
Freight Outwards 2 108 2 108
GST Payable 4 590 23 4 567
Insurance 3 690 1 880 1 810
Interest Received 2 250 750 3 000
Motor Vehicle Exp 7 103 823 7 926
Purchases 83 283 83 283
Salaries 29 582 1 590 31 172
Sales 183 527 183 527
Telephone 1 602 1 602
GST Receivable 2 320 2 320
315 584 315 584
Inventory [30 June 2016] 7 103 7 103 Trading 7 103 7 103
Depreciation – Motor Vehicles 11 069 11 069
Depreciation – Office Furn & Equipm’t 4 702 4 702
Revenue Accrued [interest received] 750 750
Doubtful Debts 400 400
Expense Prepaid [insurance] 1 880 1 880
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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Question 10.25 continued (periodic inventory applies)
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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Question 10.25 continued (periodic inventory applies)
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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Question 10.25b (perpetual inventory applies)
10-column Worksheet of Julia Kreiger for the year ended 30 June 2016
Account Trial Balance Adjustments Trading Profit & Loss Balance Sheet
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
Motor Vehicles 61 496 61 496
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
Bad Debts Recov’d 2 700 2 700
Capital 73 887 73 887
Account Payable Ctrl 18 975 18 975
Electricity 2 179 420 2 599
Freight Outwards 2 108 2 108
GST Payable 4 590 23 4 567
Insurance 3 690 1 880 1 810
Interest Received 2 250 750 3 000
Motor Vehicle Exp 7 103 823 7 926
Cost of Goods Sold 82 157 242 82 399
Salaries 29 582 1 590 31 172
Sales 183 527 183 527
Telephone 1 602 1 602
GST Receivable 2 342 22 2 320
315 584 315 584
Depreciation – Motor Vehicles 11 069 11 069
Depreciation – Office Furnit & Equipment 4 702 4 702
Revenue Accrued [interest received] 750 750
Doubtful Debts 400 400
Expense Prepaid [insurance] 1 880 1 880
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 10
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Question 10.25b continued (perpetual inventory applies)
Extract 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
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
For this question, the Balance Sheet for 10.25b will be identical to that for 10.25a.
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
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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
for the year ended 30 June 2016
Revenue Sales 86 000 less Cost of Goods Sold
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
Total Expenses 34 070 Net Profit 23 130
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
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Question 11.1b perpetual inventory applies
Extract Income Statement of B Blue for the year ended 30 June 2016
Revenue Sales 86 000
less Cost of Goods Sold 29 100
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
Total Assets 205 324 Current Liabilities
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
less Total Liabilities 45 495 Net Assets 159 829
Owner’s Equity Capital 144 129 add Net Profit 48 200 192 329 less Drawings 32 500
Total Owner’s Equity 159 829
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
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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 186 386 Balance transferred
Trading 103 990 Inventory [opening] 16 100 Purchases 87 890 Balances transferred
Inventory [closing] 15 600 Trading 15 600 Closing stock as per stocktake
Trading 97 996 Profit and Loss 97 996 Gross profit 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
Profit and Loss 16 143 Capital 16 143 Net profit transferred to capital
Capital 1 570 Drawings 1 570 Drawings transferred to capital
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
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Question 11.3a continued (periodic inventory applies)
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
Accounts Payable Control GST Payable Balance 9 889 Balance 4 660
Expense Accrued Mortgage on Premises Balance 4 100 Balance 25 000
Capital Drawings Drawings 1 570 Balance 87 505 Balance 1 570 Capital 1 570
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
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Question 11.3a continued (periodic inventory applies)
General Ledger of E L Alamein continued Sales Interest Received
Trading 186 386 Balance 186 386 Profit & Loss 1 200 Balance 1 200
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
less Cost of Goods Sold
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
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
Total Expenses 83 053
Net Profit 16 143
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
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Question 11.3a continued (periodic inventory applies)
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
Total Assets 145 727 Current Liabilities
Accounts Payable Control 9 889 GST Payable 4 660 Expense Accrued 4 100 18 649
Non-current Liabilities Mortgage on Premises 25 000
less Total Liabilities 43 649 Net Assets 102 078
Owner’s Equity Capital 87 505 add Net Profit 16 143 103 648 less Drawings 1 570
Total Owner’s Equity 102 078
Question 11.3b perpetual inventory applies
Extract 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
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Question 11.3b continued (perpetual inventory applies)
Extract General Ledger of E L Alamein Sales Cost of Goods Sold
Trading 186 386 Balance 186 386 Balance 88 390 Trading 88 390
Trading 30 Jun 16 Cost of Goods Sold 88 390 30 Jun 16 Sales 186 386
Profit & Loss [gross profit] 97 996 186 386 186 386
Profit and Loss 30 Jun 16 Trading 97 996
Extract 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
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
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Question 11.3b perpetual inventory applies (complete if question 11.3a was NOT done)
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
Question 11.3b perpetual inventory continued (complete if question 11.3a was NOT done)
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 24 230 Balance 16 000 Accounts Payable Control GST Payable
Balance 9 889 Balance 4 660 Expense Accrued Mortgage on Premises
Balance 4 100 Balance 25 000 Capital Drawings
Drawings 1 570 Balance 87 505 Balance 1 570 Capital 1 570
Balance c/d 102 078 Profit & Loss 16 143 103 648 103 648 Balance b/d 102 078
Trading 30 Jun 16 Cost of Goods Sold 88 390 30 Jun 16 Sales 186 386
Profit and Loss 97 996
186 386 186 386
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
© Cengage Learning Australia 2013
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
Trading 186 386 Balance 186 386 Profit & Loss 1 200 Balance 1 200
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
Total Expenses 83 053 Net Profit 16 143
For this question, the balance sheet for 11.3b will be identical to that for 11.3a.
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
© Cengage Learning Australia 2013
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
© Cengage Learning Australia 2013
477
Question 11.4a continued (periodic inventory applies)
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
Accounts Payable Control GST Payable Balance 11 363 Balance 1 530
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
Purchases 26 132 Inventory 6 267
Profit and Loss 36 517
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
© Cengage Learning Australia 2013
478
Question 11.4a continued (periodic inventory applies)
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
for the year ended 30 June 2016
Revenue Sales 61 415 less Cost of Goods Sold
Inventory 5 033 Purchases 26 132 Cost of goods available for sale 31 165 less Inventory 6 267 24 898
Gross Profit 36 517 add Other Revenue
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
Total Expenses 27 423 Net Profit 12 739
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
© Cengage Learning Australia 2013
479
Question 11.4a continued (periodic inventory applies)
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
Total Assets 106 696 Current Liabilities
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
Owner’s Equity Capital 37 710 add Net Profit 12 739 50 449 less Drawings 1 445
Total Owner’s Equity 49 004
Question 11.4b perpetual inventory applies
Extract General Journal of O Lightfoot GJ 1 30 Jun 16 Sales 61 415
Trading 61 415 Balance transferred Trading 24 898 Cost of Goods Sold 24 898 Balance transferred Trading 36 517 Profit and Loss 36 517 Gross profit transferred to profit and loss
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
© Cengage Learning Australia 2013
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
Revenue Sales 61 415 less Cost of Goods Sold 24 898 Gross Profit 36 517
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 133 555 Balance transferred
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
© Cengage Learning Australia 2013
481
Question 11.5a continued (periodic inventory applies)
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
Profit and Loss 7 302 Capital 7 302 Net profit transferred to capital
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
© Cengage Learning Australia 2013
482
Question 11.5a continued (periodic inventory applies)
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
Trading 133 555 Balance 133 555 Profit & Loss 531 Balance 531
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
© Cengage Learning Australia 2013
483
Question 11.5a continued (periodic inventory applies)
General Ledger of B Montgomery continued Insurance Depreciation – Office Equipment
Balance 1 430 Profit & Loss 1 430 Balance 4 826 Profit & Loss 4 826
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
Revenue Sales 133 555 less Cost of Goods Sold
Inventory 3 823 Purchases 54 538 Freight Inwards 3 700 Cost of goods available for sale 62 061 less Inventory 2 574 59 487
Gross Profit 74 068 add Other Revenue
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
© Cengage Learning Australia 2013
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
Accounts Payable Control 3 949 GST Payable 3 340 Expense Accrued 1 174 8 463
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
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 to profit and loss
Extract General Ledger of B Montgomery Sales Cost of Goods Sold
Trading 133 555 Balance 133 555 Balance 59 487 Trading 59 487
continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
© Cengage Learning Australia 2013
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
for the year ended 30 June 2016
Revenue Sales 133 555 less Cost of Goods Sold 59 487 Gross Profit 74 068
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
© Cengage Learning Australia 2013
486
Question 11.5b perpetual inventory continued (complete if question 11.5a was NOT done)
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
Accounts Payable Control GST Payable Balance 3 949 Balance 3 340
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
Balance b/d 78 269 Trading
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
© Cengage Learning Australia 2013
487 Question 11.5b perpetual inventory continued (complete if question 11.5a was NOT done)
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
Revenue Sales 133 555 less Cost of Goods Sold 59 487 Gross Profit 74 068 add Other Revenue
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
For this question, the Balance Sheet for 11.5b will be identical to that for 11.5a.
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
© Cengage Learning Australia 2013
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
for the year ended 30 June 2016
Revenue Sales 45 250 less Cost of Goods Sold
Inventory 1 730 Purchases 15 480 Cost of goods available for sale 17 210 less Inventory 1 290 15 920
Gross Profit 29 330 add Other Revenue
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
Total Expenses 18 110 Net Profit 11 720
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
© Cengage Learning Australia 2013
489
Question 11.6a continued (periodic inventory applies)
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
Total Assets 35 578 Current Liabilities
Accounts Payable Control 1 133 GST Payable 1 100 Expense Accrued 190 2 423
less Total Liabilities 2 423 Net Assets 33 155
Owner’s Equity Capital 21 435 add Net Profit 11 720 33 155 Total Owner’s Equity 33 155
Question 11.6b perpetual inventory applies
Extract General Journal of Margaret Robertson GJ 1 30 Jun 16 Sales 45 250
Trading 45 250 Balance transferred Trading 15 920 Cost of Goods Sold 15 920 Balance transferred Trading 29 330 Profit and Loss 29 330 Gross profit transferred to profit and loss
Extract Income Statement of Margaret Robertson
for the year ended 30 June 2016
Revenue Sales 45 250 less Cost of Goods Sold 15 920
Gross Profit 29 330
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
© Cengage Learning Australia 2013
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
for the year ended 30 June 2016
Revenue Sales 109 517 less Cost of Goods Sold
Inventory 7 874 Purchases 38 457 Freight Inwards 970 Cost of goods available for sale 47 301 less Inventory 8 130 39 171
Gross Profit 70 346 less Expenses Selling and Distribution
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
Total Expenses 68 657 Net Profit 1 689
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
© Cengage Learning Australia 2013
491
Question 11.7a continued (periodic inventory applies)
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
Total Assets 107 431 Current Liabilities
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
less Total Liabilities 35 371 Net Assets 72 060
Owner’s Equity Capital 74 341 add Net Profit 1 689 76 030 less Drawings 3 970
Total Owner’s Equity 72 060
Question 11.7b perpetual inventory applies
Extract Income Statement Harry Moxey for the year ended 30 June 2016
Revenue Sales 109 517 less Cost of Goods Sold 39 171 Gross Profit 70 346
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
© Cengage Learning Australia 2013
492 Question 11.7b perpetual inventory continued (complete if question 11.7a was NOT done)
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
Revenue Sales 109 517
less Cost of Goods Sold [38 918 + 253] 39 171
Gross Profit 70 346 less Expenses
Selling and Distribution
Advertising [607 + 490] 1 097
Freight Outwards 1 117 2 214
General and Administrative Electricity 726
Insurance [1950 – 455] 1 495
Salaries and Wages [38 500 + 1100] 39 600
Stationery and Photocopying [403 + 280] 683
Depreciation – Machinery 13 000
Depreciation – Motor Vehicle 4 800 60 304
Financial and Borrowing Bad Debts [1885 + 430] 2 315
Bank Charges 350
Discount Allowed 250
Doubtful Debts [260 + 600] 860
Interest on Loan[1404 + 960] 2 364 6 139
Total Expenses 68 657
Net Profit 1 689
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
© Cengage Learning Australia 2013
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
Total Assets 107 431 Current Liabilities
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
less Total Liabilities 35 371 Net Assets 72 060
Owner’s Equity Capital 74 341 add Net Profit 1 689 76 030 less Drawings 3 970
Total Owner’s Equity 72 060
Question 11.8a periodic inventory applies
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)
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
© Cengage Learning Australia 2013
494
Question 11.8a continued (periodic inventory applies)
Income Statement of Joe Madeley for the year ended 30 June 2016
Revenue
Sales 148 657
less Cost of Goods Sold
Inventory 5 037
Purchases 67 459
Cost of goods available for sale 72 496 less Inventory 5 327 67 169
Gross Profit 81 488 add Other Revenue
Interest Received 2 575
Bad Debts Recovered 2 320 4 895
Total Revenue 86 383 less Expenses
Selling & Distribution
Freight Outwards 2 314
General & Administrative
Wages 34 262
Telephone 1 298
Motor Vehicle Expense 5 753
Insurance 1 869
Electricity 2 096
Deprec – Office Furniture & Equipment 3 174
Depreciation – Motor Vehicle 7 472 55 924
Financial and Borrowing Doubtful Debts 900
Bad Debts 1 927 2 827
Total Expenses 61 065
Net Profit 25 318
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
© Cengage Learning Australia 2013
495
Question 11.8a continued (periodic inventory applies)
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
Total Assets 119 800 Current Liabilities
GST Payable [3700 – 41] 3 659 Accounts Payable Control 15 367 Expense Accrued [1300 + 342 + 617] 2 259 21 285
less Total Liabilities 21 285 Net Assets 98 515
Owner’s Equity Capital 73 197 add Net Profit 25 318
Total Owner’s Equity 98 515
Question 11.8b perpetual inventory applies
Extract Income Statement Joe Madeley for the year ended 30 June 2016
Revenue Sales 148 657 less Cost of Goods Sold 67 169 Gross Profit 81 488
Question 11.9 c Where a transaction is entered to the credit side of each account
Question 11.10 General Journal of . . . GJ . .
30 Jun 16 Stationery 170 a Vehicle Expenses 530 Expense Accrued 700 Expenses accrued
continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
© Cengage Learning Australia 2013
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
Current Liabilities Expense Accrued 700
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
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Question 11.11 continued
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
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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
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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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
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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
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Question 11.19 continued
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
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Question 11.20 continued
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
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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
Total Assets 380 320 Current Liabilities
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
less Total Liabilities 85 102 Net Assets 295 218
Owner’s Equity Capital 230 800 add Net Profit [revenue 669 221– expense 568 803] 100 418 331 218 less Drawings 36 000
Total Owner’s Equity 295 218
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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
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Question 11.22a continued (periodic inventory applies)
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
Accounts Receivable Control Allowance for Doubtful Debts Balance 15 829 Balance 475
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
Drawings 3 309 Balance 22 471 Balance 3 309 Capital 3 309
Balance c/d 83 890 Profit & Loss 64 728 87 199 87 199
Balance b/d 83 890 Trading 31 Dec 16 Inventory 4 374 31 Dec 16 Sales 167 761
Purchases 49 563 Inventory 4 856
Import Costs 2 439
Profit and Loss 116 241
172 617 172 617
continued
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Question 11.22a continued (periodic inventory applies)
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
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Question 11.22a continued (periodic inventory applies)
Income Statement of L Tobruk for the year ended 31 December 2016
Revenue Sales 167 761 less Cost of Goods Sold
Inventory 4 374 Purchases 49 563 Import Costs 2 439 56 376 less Inventory 4 856 51 520
Gross Profit 116 241 add Other Revenue
Bad Debts Recovered 1 428 Rent Received 6 124 7 552
Total Revenue 123 793 less Expenses Selling & Distribution
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
Total Expenses 59 065 Net Profit 64 728
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Question 11.22a continued (periodic inventory applies)
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
Total Assets 113 504 Current Liabilities
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
less Total Liabilities 29 614 Net Assets 83 890
Owner’s Equity Capital 22 471 add Net Profit 64 728 87 199 less Drawings 3 309
Total Owner’s Equity 83 890
Question 11.22b perpetual inventory applies
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
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Question 11.22b continued (perpetual inventory applies)
Extract General Ledger of L Tobruk Sales Cost of Goods Sold
Trading 167 761 Balance 167 761 Balance 51 520 Trading 51 520
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
for the year ended 31 December 2016
Revenue Sales 167 761 less Cost of Goods Sold 51 520 Gross Profit 116 241
Question 11.22b perpetual inventory applies (complete if question 11.22a was NOT done)
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
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Question 11.22b perpetual inventory continued (complete if question 11.22a was NOT done)
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
Accounts Receivable Control Allowance for Doubtful Debts Balance 15 829 Balance 475
Inventory GST Receivable Balance 4 856 Balance 1 470
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
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Question 11.22b perpetual inventory continued (complete if question 11.22a was NOT done) General Ledger of L Tobruk continued
Capital Drawings Drawings 3 309 Balance 22 471 Balance 3 309 Capital 3 309
Balance c/d 83 890 Profit & Loss 64 728 87 199 87 199
Balance b/d 83 890 Trading
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
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Question 11.22b perpetual inventory continued (complete if question 11.22a was NOT done)
General Ledger of L Tobruk continued Bank Charges Doubtful Debts
Balance 178 Profit & Loss 178 Balance 475 Profit & Loss 475
Interest
Balance 2 115 Profit & Loss 2 115
Income Statement of L Tobruk for the year ended 31 December 2016
Revenue Sales 167 761 less Cost of Goods Sold 51 520 Gross Profit 116 241 add Other Revenue
Bad Debts Recovered 1 428 Rent Received 6 124 7 552
Total Revenue 123 793 less Expenses Selling & Distribution
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
Total Expenses 59 065 Net Profit 64 728
For this question, the balance sheet for 11.22b will be identical to that for 11.22a.
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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
Revenue Sales 177 966 less Cost of Goods Sold
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
Gross Profit 102 077 add Other Revenue
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)
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Question 11.23a continued (periodic inventory applies)
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
Total Assets 142 893 Current Liabilities
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
Total Owner’s Equity 103 669
Question 11.23b perpetual inventory applies
Extract Income Statement H Joshua for the 6 months ended 30 June 2016
Revenue Sales 177 966 less Cost of Goods Sold 75 889 Gross Profit 102 077
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Question 11.23b perpetual inventory continued (complete if question 11.23a was NOT done)
Income Statement of H Joshua for the 6 months ended 30 June 2016
Revenue Sales 177 966 less Cost of Goods Sold 75 889 Gross Profit 102 077 add Other Revenue
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)
For this question, the balance sheet for 11.23b will be identical to that for 11.23a.
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)
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Question 11.24a continued (periodic inventory applies)
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
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Income Statement of C Earnest for the year ended 30 June 2016
Revenue Sales 278 600 less Cost of Goods Sold
Inventory 36 950 Purchases 179 042 Wharfage and Other Import Costs 18 708 234 700 less Inventory 38 000 196 700
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
Total Expenses 64 595 Net Profit 27 035
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
for the year ended 30 June 2016
Revenue Sales 278 600 less Cost of Goods Sold 195 864 Gross Profit 81 900
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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
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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
Total Expenses 64 595 Net Profit 27 035
Question 11.25a periodic inventory applies
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)
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Question 11.25a continued (periodic inventory applies)
Income Statement of Dorothy McCoy for the year ended 30 June 2016
Revenue Sales 120 000 less Cost of Goods Sold
Inventory 7 300 Customs Duty 4 300
Purchases 41 500 Cost of goods available for sale 53 100 less Inventory 8 600 44 500
Gross Profit 75 500 add Other Revenue
Discount Received 900 Commission Revenue 750 1 650
Total Revenue 77 150 less Expenses Selling & Distribution
Advertising 2 700 General & Administrative
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
Total Expenses 65 420 Net Profit 11 730
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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
Total Assets 75 900 Current Liabilities
Accounts Payable Control 8 800 GST Payable 3 000 Expense Accrued 2 300
less Total Liabilities 14 100 Net Assets 61 800
Owner’s Equity Capital 56 070 add Net Profit 11 730 67 800 less Drawings 6 000
Total Owner’s Equity 61 800
Question 11.25b perpetual inventory applies Extract Income Statement Dorothy McCoy
for the year ended 30 June 2016
Revenue Sales 120 000 less Cost of Goods Sold 44 500 Gross Profit 75 500
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)
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
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Income Statement of Dorothy McCoy for the year ended 30 June 2016
Revenue Sales 120 000 less Cost of Goods Sold 44 500 Gross Profit 75 500 add Other Revenue
Discount Received 900 Commission Revenue 750 1 650
Total Revenue 77 150 less Expenses Selling & Distribution
Advertising 2 700 General & Administrative
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
Total Expenses 65 420 Net Profit 11 730
For this question, the balance sheet for 11.25b will be identical to that for 11.25a.
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)
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Question 11.26a continued (periodic inventory applies)
Income Statement of D Robert for the year ended 30 June 2016
Revenue Sales 84 612 less Cost of Goods Sold
Inventory 3 715 Inwards Freight 1 763 Purchases 20 290 Cost of goods available for sale 25 768 less Inventory 3 550 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 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
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Question 11.26a continued (periodic inventory applies)
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
Total Assets 64 170 Current Liabilities
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
Owner’s Equity Capital 28 144 add Net Profit 4 684 32 828 less Drawings 3 200
Total Owner’s Equity 29 628
Question 11.26b perpetual inventory applies
Extract Income Statement of D Robert for the year ended 30 June 2016
Revenue Sales 84 612 less Cost of Goods Sold 22 218 Gross Profit 62 394
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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
for the year ended 30 June 2016
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
For this question, the balance sheet for 11.26b will be identical to that for 11.26a.
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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
for the year ended 31 December 2016
Revenue Sales 208 841 less Cost of Goods Sold
Inventory 6 145 Freight Inwards 3 477 Purchases 84 604 94 226 less Inventory 7 824 86 402
Gross Profit 122 439 add Other Revenue
Discount Received 776 Rent Received 10 730 11 506
Total Revenue 133 945 less Expenses Selling & Distribution
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
Total Expenses 93 008 Net Profit 40 937
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
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Question 11.27a continued (periodic inventory applies)
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
Total Assets 116 293 Current Liabilities
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
Owner’s Equity Capital 11 116 add Net Profit 40 937 52 053 less Drawings 4 510
Total Owner’s Equity 47 543
Question 11.27b perpetual inventory applies
Extract Income Statement of Mary Doggett for the year ended 31 December 2016
Revenue Sales 208 841 less Cost of Goods Sold 86 402 Gross Profit 122 439
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
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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
for the year ended 31 December 2016
Revenue
Sales 208 841 less Cost of Goods Sold 86 402
Gross Profit 122 439 add Other Revenue
Discount Received 776
Rent Received 10 730 11 506
Total Revenue 133 945 less Expenses
Selling & Distribution
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
Total Expenses 93 008
Net Profit 40 937
For this question, the balance sheet for 11.27b will be identical to that for 11.27a.
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
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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
for the year ended 30 June 2016
Revenue Sales 189 117
less Cost of Goods Sold Inventory 15 630 Purchases 79 331 94 961 less Inventory 16 455 78 506
Gross Profit 110 611 add Other Revenue
Rent Received 10 650 Interest Received 1 350 12 000
Total Revenue 122 611 less Expenses Selling and Distribution
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
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Question 11.28a continued (periodic inventory applies)
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
Total Assets 242 512 Current Liabilities
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
less Total Liabilities 91 691 Net Assets 150 821
Owner’s Equity Capital 132 175 add Net Profit 37 856 170 031 less Drawings 19 210
Total Owner’s Equity 150 821
Question 11.28b perpetual inventory applies
Extract Income Statement of R Abercrombie for the year ended 30 June 2016
Revenue Sales 189 117 less Cost of Goods Sold 78 506 Gross Profit 110 611
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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
for the year ended 30 June 2016
Revenue Sales 189 117 less Cost of Goods Sold 78 506 Gross Profit 110 611 add Other Revenue
Rent Received 10 650 Interest Received 1 350 12 000
Total Revenue 122 611 less Expenses Selling and Distribution
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 Net Profit 37 856
For this question, the balance sheet for 11.28b will be identical to that for 11.28a.
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
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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
for the year ended 30 June 2016
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
Total Expenses 156 451 Net Profit 198 393
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
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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
Total Assets 299 541 Current Liabilities
GST Payable 500 Accounts Payable Control 2 436 Expense Accrued 1 640 4 576
Non-current Liabilities
less Total Liabilities 4 576 Net Assets 294 965
Owner’s Equity Capital 106 572 add Net Profit 198 393 304 965 less Drawings 10 000
Total Owner’s Equity 294 965
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
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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
Total Assets 243 499 Current Liabilities
Bank Overdraft 14 340 Accounts Payable Control 24 188 GST Payable 12 800 Expense Accrued 3 020 54 348
less Total Liabilities 54 348 Net Assets 189 151
Owner’s Equity Capital 156 680 add Net Profit 38 407 195 087 less Drawings 5 936
Total Owner’s Equity 189 151
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
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Question 11.30 continued Income Statement of L Eucumbene
for the year ended 30 June 2016
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
Total Expenses 828 601 Net Profit 38 407
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
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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
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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
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Question 11.33 continued
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 not requested by question but may be helpful in obtaining the correct answer
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
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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 not requested by question but may be helpful in obtaining the correct answer
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
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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 not requested by question but may be helpful in obtaining the correct answer
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
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Question 11.36 continued
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
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542 Question 11.38 continued
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 11
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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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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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
= Depreciable amount $ 3 780
Rate p.a. 15% on depreciable amount Depreciation p.a. $567
Date Asset Cost
Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
1 Jul 15 3 780
30 Jun 16 567 567 3 213
30 Jun 17 567 1 134 2 646
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Question 12.5 continued Straight line depreciation method
Asset: Office Furniture and Fittings Asset cost including installation 31 560 less Residual value 3 000
= Depreciable amount $ 28 560
Rate p.a. 20% on depreciable amount Depreciation p.a. $5712
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
= Depreciable amount $ 17 300
Rate
25% on depreciable amount Depreciation p.a. $4325
Date Asset Cost
Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
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Question 12.6 continued
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
Extract Balance Sheet of . . . as at 30 June 2017
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
= Depreciable amount $ 30 000
Rate p.a. 20% on depreciable amount Depreciation p.a. $6000
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
© Cengage Learning Australia 2013
548 Question 12.7 continued
Straight line depreciation method Asset: Motor Vehicle – truck Asset cost including installation 50 000 less Residual value 0
$ 50 000
Rate p.a. 15% on depreciable amount Depreciation p.a. $7500
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
less Residual value 0
= Depreciable amount $ 4 950
Rate p.a. 33 1/3% on depreciable amount Depreciation p.a. $1650
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
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Question 12.8 continued
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 16 Accum Depr – Computer GJ. 1 100 30 Jun 16 Profit and Loss GJ. 1 100
30 Jun 17 Accum Depr – Computer GJ. 1 650 30 Jun 17 Profit and Loss GJ. 1 650
30 Jun 18 Accum Depr – Computer GJ. 1 650 30 Jun 18 Profit and Loss GJ. 1 650
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
= Depreciable amount $ 17 290
Rate p.a. 15% on depreciable amount Depreciation p.a. $2594
Date Asset Cost
Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
1 Aug 15 17 290
30 Jun 16 2 377 2 377 14 913
30 Jun 17 2 594 4 971 12 319
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Question 12.9 continued
Straight line depreciation method Asset: Office Equipment Asset cost including installation 5 570 less Residual value 0
$ 5 570
Rate p.a. 10% on depreciable amount Depreciation p.a. $557
Date Asset Cost
Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
less Residual value 0
= Depreciable amount $ 3 780
Rate p.a. 15% on depreciable amount Depreciation p.a. $567
Date Asset Cost
Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Extract Balance Sheet of . . .
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
© Cengage Learning Australia 2013
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
Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Extract General Ledger of . . . Equipment
1 Jul 15 Accounts Payable Ctrl PD 305 000 Accumulated Depreciation – Equipment
30 Jun 16 Depreciat’n – Equipment GJ. 150 000
30 Jun 17 Depreciat’n – Equipment GJ. 120 000
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
Extract Income Statement of . . . for the year ended 30 June 2017
less Expenses General and Administrative Depreciation – Equipment 120 000
Extract Balance Sheet of . . .
as at 30 June 2018
Non-current Assets Equipment 305 000 less Accumulated Depreciation 300 000 5 000
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
© Cengage Learning Australia 2013
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
Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Extract Balance Sheet of . . .
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
= Depreciable amount $ 728 000
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
Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
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Question 12.12 continued
Units of use depreciation method Asset Equipment – Medical Scanning Asset cost including installation 728 000 less Residual value 0
= Depreciable amount $ 728 000
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
Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Extract General Ledger of . . . Equipment
16 Jul 15 Accounts Payable Ctrl PD 728 000 Accumulated Depreciation – Equipment
30 Jun 16 Depreciat’n – Equipment GJ. 91 000
30 Jun 17 Depreciat’n – Equipment GJ. 167 440
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
Extract Income Statement of . . . for the year ended 30 June 2017
less Expenses General and Administrative Depreciation – Equipment 167 440
Extract Balance Sheet of . . .
as at 30 June 2017
Non-current Assets Equipment 728 000 less Accumulated Depreciation 258 440 469 560
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
© Cengage Learning Australia 2013
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
Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
30 Jun 17 Deprec – Motor Vehicle GJ. 64 750
115 500
30 Jun 18 Deprec – Motor Vehicle GJ. 63 000
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
Question 12.14 1 Jul 15 30 Jun 16 30 Jun 17
12 months
31 Aug 15 (10 mths to 30 Jun) Machine 1 installed 1 Oct 15 (9 mths to 30 Jun) Machine 2 purchase
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.14 continued
Straight line depreciation method Asset: Machinery – Machine 1 Asset cost + installation [23 920+7 680] 31 600
less Residual value 1 300
= Depreciable amount $ 30 300
Rate p.a. 15% on depreciable amount Depreciation p.a. $4545
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
© Cengage Learning Australia 2013
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
Straight line depreciation method
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
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.15 continued
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
© Cengage Learning Australia 2013
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
Straight line depreciation method
Asset: Office Equipment – Photocopier Asset cost including installation 3 770 less Residual value 0
= Depreciable amount $ 3 770
Rate p.a. 15% on depreciable amount Depreciation p.a. $566
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Rate p.a. 10% on depreciable amount Depreciation p.a. $296
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
= Depreciable amount $ 77 670
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
Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.16 continued
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 – Machinery 11 961
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
Closing Carrying Amount
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
Extract Balance Sheet of . . . as at 30 June 2017
Non-current Assets Equipment 62 710 less Accumulated Depreciation 27 436 35 274
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.18
Diminishing balance depreciation method Asset: Machinery Asset cost including installation 22 180
less Residual value not applicable
= Depreciable amount $ 22 180
Rate p.a. 30% on opening carrying amount Date Opening
Carrying Amount Depreciation
(current) Accumulated Depreciation
Closing Carrying Amount
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
30 Jun 17 Depreciat’n – Machinery GJ. 4 658
11 312
30 Jun 18 Depreciat’n – Machinery GJ. 3 260
14 572
Depreciation – Machinery 30 Jun 16 Accum Dep – Machinery GJ. 6 654 30 Jun 16 Profit and Loss GJ. 6 654
30 Jun 17 Accum Dep – Machinery GJ. 4 658 30 Jun 17 Profit and Loss GJ. 4 658
30 Jun 18 Accum Dep – Machinery GJ. 3 260 30 Jun 18 Profit and Loss GJ. 3 260
Question 12.19 Diminishing balance depreciation method
Asset: Equipment Asset cost including installation 10 000
less Residual value not applicable
= Depreciable amount $ 10 000
Rate p.a. 30% on opening carrying amount Date Opening
Carrying Amount Depreciation
(current) Accumulated Depreciation
Closing Carrying Amount
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.19 continued
Extract General Journal of . . . GJ . . 30 Jun 17 Depreciation – Equipment 2 100
Accumulated Depreciation – Equipment 2 100 Depreciation at balance date
Extract General Ledger of . . .
Equipment 1 July 15 Bank [payment] CP 10 000
Accumulated Depreciation – Equipment 30 Jun 16 Depreciat’n – Equipment GJ. 3 000
30 Jun 17 Depreciat’n – Equipment GJ. 2 100
5 100
Depreciation – Equipment 30 Jun 16 Accum Dep – Equipm’nt GJ. 3 000 30 Jun 16 Profit and Loss GJ. 3 000
30 Jun 17 Accum Dep – Equipm’nt GJ. 2 100 30 Jun 17 Profit and Loss GJ. 2 100
Question 12.20 1 Jul 15 30 Jun 16 30 Jun 17
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
Rate p.a. 35% on opening carrying amount Date Opening
Carrying Amount Depreciation
(current) Accumulated Depreciation
Closing Carrying Amount
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.20 continued
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
Extract Balance Sheet of . . . as at 30 June 2017
Non-current Assets Plant and Machinery 72 970 less Accumulated Depreciation 39 373 33 597
Question 12.21 1 Jul 15 30 Jun 16 30 Jun 17
12 months
30 Sep 15 (9 mths to 30 Jun 15) Machinery installed
Diminishing balance depreciation method
Asset: Machinery Asset cost including installation 82 200 [74 000 + 8 200]
less Residual value not applicable
= Depreciable amount $ 82 200
Rate p.a. 30% on opening carrying amount Date Opening
Carrying Amount Depreciation
(current) Accumulated Depreciation
Closing Carrying Amount
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
Extract Balance Sheet of . . .
as at 30 June 2018
Non-current Assets Machinery 82 200 less Accumulated Depreciation 50 985 31 215
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
© Cengage Learning Australia 2013
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Question 12.22 1 Jul 15 30 Jun 16 30 Jun 17
12 months
1 Feb 16 (5 mths to 30 Jun) Equipment installation
Diminishing balance depreciation method Asset: Equipment Asset cost including installation 70 880
less Residual value not applicable
= Depreciable amount $ 70 880
Rate p.a.
28% on opening carrying amount
Date Opening Carrying Amount
Depreciation (current)
Accumulated Depreciation
Closing 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
Extract General Ledger of . . . Equipment
1 Feb 16 Accounts Payable Ctrl PD 70 880 Accumulated Depreciation – Equipment
30 Jun 16 Depreciat’n – Equipment GJ. 8 269
30 Jun 17 Depreciat’n – Equipment GJ. 17 531
25 800
Depreciation – Equipment 30 Jun 16 Accum Dep – Equipm’nt GJ. 8 269 30 Jun 16 Profit and Loss GJ. 8 269
30 Jun 17 Accum Dep – Equipm’nt GJ. 17 531 30 Jun 17 Profit and Loss GJ. 17 531
Extract Income Statement of . . .
for the year ended 30 June 2018
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.23 continued
Diminishing balance depreciation method Asset: Plant and Equipment
Asset cost including installation 94 760 [77 650 + 17 110]
less Residual value not applicable
= Depreciable amount $ 94 760
Rate
30% on opening carrying amount Date Opening
Carrying Amount Depreciation
(current) Accumulated Depreciation
Closing Carrying Amount
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
30 Jun 17 Deprec – Plant & Equip’t GJ. 22 742
41 694
30 Jun 18 Deprec – Plant & Equip’t GJ. 15 920
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
Extract Balance Sheet of . . . as at 30 June 2018
Non-current Assets Plant and Equipment 94 760 less Accumulated Depreciation 57 614 37 146
Extract Balance Sheet of . . . as at 30 June 2019
Non-current Assets Plant and Equipment 94 760 less Accumulated Depreciation 68 758 26 002
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
© Cengage Learning Australia 2013
565 Question 12.24
1 Jul 15 30 Jun 16 30 Jun 17 12 months
1 Nov 15 (8 mths to 30 Jun) Office Furniture purchase
Straight line depreciation method
Asset: Office Furniture
Asset cost including installation 15 310
less Residual value 500
= Depreciable amount $ 14 810
Rate p.a. 10% on depreciable amount Depreciation p.a. $1481
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Asset cost including installation 15 310
less Residual value not applicable
= Depreciable amount $ 15 310
Rate p.a. 25% On opening carrying amount
Date Opening Carrying Amount
Depreciation (current)
Accumulated Depreciation
Closing 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
Question 12.25 1 Jul 15 30 Jun 16 30 Jun 17
12 months
1 Mar 16 (4 mths to 30 Jun) Machine 2 purchase 31 Jan 16 (5 mths to 30 Jun) Machine 1 purchase
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.25 continued
Diminishing balance depreciation method Asset: Machinery – Machine 1
Asset cost including installation 40 360
less Residual value n/a
= Depreciable amount $ 40 360
Rate
35% on opening carrying amount
Date Opening Carrying Amount
Depreciation (current)
Accumulated Depreciation
Closing 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
Rate p.a. 15% on depreciable amount Depreciation p.a. $7229
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Question 12.26 1 Jul 15 30 Jun 16 30 Jun 17
12 months
28 Feb 16 (4 mths to 30 Jun) Equipment 2 installed 31 Jan 16 (5 mths to 30 Jun) Equipment 1 installed
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.26 continued Straight line depreciation method
Asset: Equipment 1 Asset cost including installation 16 240 [11 560 + 4680]
less Residual value 1 000
= Depreciable amount $ 15 240
Rate p.a. 15% on depreciable amount Depreciation p.a. $2286
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Rate p.a. 32% on opening carrying amount Date Opening
Carrying Amount Depreciation
(current) Accumulated Depreciation
Closing Carrying Amount
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
Extract Income Statement of . . . for the year ended 30 June 2017
less Expenses General and Administrative Depreciation – Equipment [2286+4797] 7 083
Extract Balance Sheet of . . .
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 Jul 15 30 Jun 16 30 Jun 17 12 months
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.27 continued
Straight line depreciation method Asset: Motor Vehicle 1 Asset cost including installation 43 290
less Residual value 4 800
= Depreciable amount $ 38 490
Rate p.a. 15% on depreciable amount Depreciation p.a. $5774
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Diminishing balance depreciation method
Asset: Motor Vehicle 2 Asset cost including installation 39 800 less Residual value n/a
= Depreciable amount $ 39 800
Rate p.a. 28% on opening carrying amount Date Opening
Carrying Amount Depreciation
(current) Accumulated Depreciation
Closing Carrying Amount
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
= Depreciable amount $ 42 000
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
Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.27 continued
Extract Income Statement of . . . for the year ended 30 June 2017
less Expenses General and Administrative Depreciation – Motor Vehicles 20 033 [5774 + 9324 + 4935]
Extract Balance Sheet of . . .
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
Question 12.28 1 Jul 15 30 Jun 16 30 Jun 17
12 months 1 Dec 15 (7 mths to 30 Jun) Machinery purchase and Office Equipment purchase
Diminishing balance depreciation method
Asset: Machinery Asset cost including installation 15 700 less Residual value n/a = Depreciable amount $ 15 700
Rate p.a. 30% on opening carrying amount Date Opening
Carrying Amount Depreciation
(current) Accumulated Depreciation
Closing Carrying Amount
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.28 continued Straight line depreciation method
Asset: Office Equipment Asset cost including installation 9 000 less Residual value 0 = Depreciable amount $ 9 000
Rate p.a. 10% on depreciable amount Depreciation p.a. $900
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
30 Jun 17 Depreciat’n – Machinery GJ. 3 886
6 634
30 Jun 18 Depreciat’n – Machinery GJ. 2 720
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
Depreciation – Machinery 30 Jun 16 Accum Dep – Machinery GJ. 2 748 30 Jun 16 Profit and Loss GJ. 2 748
30 Jun 17 Accum Dep – Machinery GJ. 3 886 30 Jun 17 Profit and Loss GJ. 3 886
30 Jun 18 Accum Dep – Machinery GJ. 2 720 30 Jun 18 Profit and Loss GJ. 2 720
continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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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 ]
Extract Balance Sheet of D Burrendong as at 30 June 2019
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
Straight line depreciation method
Asset: Office Furniture Asset cost including installation 7 200
less Residual value 0
= Depreciable amount $ 7 200
Rate p.a. 10% on depreciable amount Depreciation p.a. $720
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.29 continued
Diminishing balance depreciation method Asset: Machinery Asset cost including installation 48 000 less Residual value n/a = Depreciable amount $ 48 000
Rate p.a. 25% on opening carrying amount Date Opening
Carrying Amount Depreciation
(current) Accumulated Depreciation
Closing Carrying Amount
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
Diminishing balance depreciation method
Asset: Plant Asset cost including installation 39 000 less Residual value n/a = Depreciable amount $ 39 000
Rate p.a. 30% on opening carrying amount Date Opening
Carrying Amount Depreciation
(current) Accumulated Depreciation
Closing Carrying Amount
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 ]
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.29 continued
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
Question 12.30 1 Jul 15 30 Jun 16 30 Jun 17
12 months
30 Nov 15 (7 mths to 30 Jun) 31 Mar 16 (3 mths to 30 Jun) Machine 1 purchase Machine 2 installation
Straight line depreciation method
Asset: Machinery – Machine 1 Asset cost including installation 32 500
less Residual value 2 000
= Depreciable amount $ 30 500
Rate p.a. 15% on depreciable amount Depreciation p.a. $4575
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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]
= Depreciable amount $ 85 250
Rate p.a. 30% on opening carrying amount Date Opening
Carrying Amount Depreciation
(current) Accumulated Depreciation
Closing Carrying Amount
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.30 continued
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
[2 669 + 6 394] 30 Jun 16 Depreciat’n – Machinery GJ. 9 063
[4 575 + 23 657] 30 Jun 17 Depreciat’n – Machinery GJ. 28 232
37 295
Depreciation – Machinery 30 Jun 16 Accum Dep – Machinery GJ. 9 063 30 Jun 16 Profit and Loss GJ. 9 063
30 Jun 17 Accum Dep – Machinery GJ. 28 232 30 Jun 17 Profit and Loss GJ. 28 232
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
Question 12.31 1 Jul 15 30 Jun 16 30 Jun 17 30 Jun 18
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.31 continued
Straight line depreciation method Asset: Fixtures and Fittings Asset cost including installation 17 500
less Residual value 1 000
= Depreciable amount $ 16 500
Rate p.a. 20% on depreciable amount Depreciation p.a. $3300
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Rate p.a. 35% on opening carrying amount Date Opening
Carrying Amount Depreciation
(current) Accumulated Depreciation
Closing Carrying Amount
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
(current) Accumulated Depreciation
Closing Carrying Amount
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.31 continued
Straight line depreciation method Asset: Office Furniture Asset cost including installation 9 500 less Residual value 200 = Depreciable amount $ 9 300
Rate p.a. 10% on depreciable amount Depreciation p.a. $930
Date Opening Carrying Amount
Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Question 12.32 1 Jul 15 30 Jun 16 30 Jun 17 30 Jun 18
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.32 continued
Straight line depreciation method Asset: Office Furniture 1
Asset cost including installation 12 600
less Residual value 600
= Depreciable amount $ 12 000
Rate p.a. 10% on depreciable amount Depreciation p.a. $1200
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Asset cost including installation 25 800
less Residual value n/a
= Depreciable amount $ 25 800
Rate p.a. 33% on opening carrying amount Date Opening
Carrying Amount Depreciation
(current) Accumulated Depreciation
Closing Carrying Amount
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
Asset cost including installation 11 000
less Residual value 0
= Depreciable amount $ 11 000
Rate p.a. 10% on depreciable amount Depreciation p.a. $1100
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.32 continued
Diminishing balance depreciation method Asset: Computer
Asset cost including installation 41 800
less Residual value n/a
= Depreciable amount $ 41 800
Rate p.a. 45% on opening carrying amount Date Opening
Carrying Amount Depreciation
(current) Accumulated Depreciation
Closing Carrying Amount
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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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
Extract General Ledger of . . .
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
Extract General Ledger of . . .
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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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
Question 12.35 1 Jul 14 30 Jun 15 30 Jun 16 30 Jun 17
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.35 continued Straight line depreciation method
Asset: Machinery Asset cost including installation 35 000
less Residual value 0
= Depreciable amount $ 35 000 Rate p.a. 20% on depreciable amount Depreciation p.a. $7000
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
30 Jun 16 Depreciation – Machinery 7 000
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
Bank [receipt] 20 000
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
Question 12.36 1 Jul 15 30 Jun 16 30 Jun 17 30 Jun 18
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.36 continued
Diminishing balance depreciation method Asset: Motor Vehicle Asset cost including installation 41 580 less Residual value n/a
= Depreciable amount $ 41 580
Rate p.a. 35% on opening carrying amount Date Opening
Carrying Amount Depreciation
(current) Accumulated Depreciation
Closing Carrying Amount
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
= Depreciable amount $ 13 900
Rate p.a. 10% on depreciable amount Depreciation p.a. $1390
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Diminishing balance depreciation method
Asset: Motor Vehicle Asset cost including installation 61 320 less Residual value n/a
= Depreciable amount $ 61 320
Rate p.a. 40% on opening carrying amount Date Opening
Carrying Amount Depreciation
(current) Accumulated Depreciation
Closing Carrying Amount
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.36 continued
Extract Income Statement of . . . for the year ended 30 June 2018
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
Rate p.a. 30% on opening carrying amount Date Opening
Carrying Amount Depreciation
(current) Accumulated Depreciation
Closing Carrying Amount
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]
= Depreciable amount $ 33 100
Rate p.a. 35% on opening carrying amount Date Opening
Carrying Amount Depreciation
(current) Accumulated Depreciation
Closing Carrying Amount
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)
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.37 continued
Diminishing balance depreciation method Asset: Machinery – Machine 3 Asset cost including installation 48 670 [34 780 + 13 890]
less Residual value n/a
= Depreciable amount $ 48 670
Rate p.a. 30% on opening carrying amount Date Opening
Carrying Amount Depreciation
(current) Accumulated Depreciation
Closing Carrying Amount
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
Rate p.a. 20% on depreciable amount Depreciation p.a. $7556
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
© Cengage Learning Australia 2013
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
Diminishing balance depreciation method
Asset: Motor Vehicles – Truck 1 Asset cost including installation 50 600
less Residual value n/a
= Depreciable amount $ 50 600
Rate p.a. 35% on opening carrying amount Date Opening
Carrying Amount Depreciation
(current) Accumulated Depreciation
Closing Carrying Amount
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
less Residual value 1 000
= Depreciable amount $ 36 540
Rate p.a. 33 1/3% on depreciable amount Depreciation p.a. $12 180
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.38 continued
Straight line depreciation method Asset: Fixtures and Fittings Asset cost including installation 11 970
less Residual value 0
= Depreciable amount $ 11 970
Rate p.a. 12½ % on depreciable amount Depreciation p.a. $1496
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Rate p.a. 35% on opening carrying amount Date Opening
Carrying Amount Depreciation
(current) Accumulated Depreciation
Closing Carrying Amount
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.39
Straight line depreciation method Asset: Machinery (old machine)
Asset cost including installation 18 000
less Residual value unknown
= Depreciable amount $ unknown
Rate p.a. % on depreciable amount Depreciation p.a. $
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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)
Asset cost including installation 25 000
less Residual value 0
= Depreciable amount $ 25 000
Rate p.a. 20% on depreciable amount Depreciation p.a. $5000
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Accumulated Depreciation – Machinery 10 500
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.39 continued
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
Accounts Payable Control 27 500
– 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
for the year ended 30 June 2016
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
Non-current Assets Machinery 25 000 less Accumulated Depreciation 1 250 23 750
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.40 continued
Diminishing balance depreciation method Asset: Machinery – Machine 1 Asset cost including installation 8 000
less Residual value n/a
= Depreciable amount $ 8 000
Rate p.a. 25% on opening carrying amount Date Opening
Carrying Amount Depreciation
(current) Accumulated Depreciation
Closing Carrying Amount
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
Rate p.a. 10% on depreciable amount Depreciation p.a. $1000
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
= Depreciable amount $ 12 000
Rate p.a. 35% on opening carrying amount Date Opening
Carrying Amount Depreciation
(current) Accumulated Depreciation
Closing Carrying Amount
1 Sep 16 12 000
30 Jun 17 12 000 3 500 3 500 8 500
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.40 continued
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
1 Oct 16 Balance b/d 22 000
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
1 Oct 16 Balance b/d 1 500
30 Jun 17 Depreciation – Machinery 4 500
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]
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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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
less Residual value 2 673
= Depreciable amount $ 41 600
Rate p.a. 15% on depreciable amount Depreciation p.a. $6240
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Rate p.a. 25% on opening carrying amount Date Opening
Carrying Amount Depreciation
(current) Accumulated Depreciation
Closing Carrying Amount
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
Rate p.a. 30% on opening carrying amount Date Opening
Carrying Amount Depreciation
(current) Accumulated Depreciation
Closing Carrying Amount
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.41 continued Extract Income Statement of M Tomah
for the year ended 30 June 2017
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
© Cengage Learning Australia 2013
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
Date Opening Carrying Amount
Depreciation (current)
Accumulated Depreciation
Closing 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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
© Cengage Learning Australia 2013
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
Straight line depreciation method
Asset: Motor Vehicles – Vehicle 1 Asset cost including installation 35 000
less Residual value 2 000
= Depreciable amount $ 33 000
Rate
20% on depreciable amount Depreciation p.a. $6600
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.44 continued
Diminishing balance depreciation method Asset: Motor Vehicles – Vehicle 2
Asset cost including installation 35 000
less Residual value n/a
= Depreciable amount $ 35 000
Rate p.a. 40% on opening carrying amount Date Opening
Carrying Amount Depreciation
(current) Accumulated Depreciation
Closing Carrying Amount
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
less Residual value n/a
= Depreciable amount $ 35 000
Rate p.a. 30% on opening carrying amount Date Opening
Carrying Amount Depreciation
(current) Accumulated Depreciation
Closing Carrying Amount
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
Date Asset Cost Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
30 Sep 18 42 000
30 Jun 19 6 000 6 000 36 000
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.44 continued
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
Accounts Payable Control 46 200
– 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
Bank [payment] 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
1 Oct 18 Balance b/d 112 000 continued
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.44 continued
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
1 Oct 18 Balance b/d 24 075
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
Accounts Payable Control 15 000
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
Non-current Assets Motor Vehicle 112 000 less Accumulated Depreciation 42 923 69 077
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
© Cengage Learning Australia 2013
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
Straight line depreciation method
Asset: Computer
Asset cost including installation 60 000
less Residual value 6 000
= Depreciable amount $ 54 000
Rate p.a. 25% on depreciable amount Depreciation p.a. $13 500
Date Asset Cost
Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.46 continued Straight line depreciation method
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
Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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 Jun 17 Depreciation – Computer 13 500
30 375
1 Oct 17 Depreciation – Computer 3 375
33 750 33 750
30 Jun 18 Depreciation – Computer 18 000
Disposal – Computer 1 Oct 17 Computer 60 000 1 Oct 17 Accum Deprec – Computer 33 750
Bank [receipt] 15 000
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.46 continued
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
Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.47 continued
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
Non-current Assets Machinery 175 000 less Accumulated Depreciation 170 000 5 000
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
Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.48 continued
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
for the year ended 30 June 2016
less Expenses General and Administrative Depreciation – Motor Vehicle 189 334 ]
Extract Balance Sheet of Samuel Keith as at 30 June 2017
Non-current Assets Motor Vehicle 475 000 less Accumulated Depreciation 400 000 75 000
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 12
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Question 12.49 continued
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
Depreciation (current)
Accumulated Depreciation
Closing Carrying Amount
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
Non-current Assets Machinery 275 000 less Accumulated Depreciation 233 998 41 002
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 13
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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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 13
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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
Employee Hourly Ordinary Hours Tot Total Overtime Total Rate
$ Nor AL LL SL LSL Hrs Ordinary
$ 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.
Employee Hourly Ordinary Hours Tot Total Overtime Total Rate
$ Nor AL LL SL LSL Hrs Ordinary
$ 1½ 2 Equiv Am’nt
$ 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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 13
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Question 13.7
Payroll Register Sheet for B Hunter for week ended 9 December 2016
Employee Hourly Ordinary Hours Tot Total Overtime Total Rate
$ Nor AL LL SL LSL Hrs Ordinary
$ 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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 13
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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
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 $
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
Hrly Ordinary Overtime Total Deductions Net Employee Rate Amount Eq Amount Gross PAYG Super Medic Credit Total Pay
$ 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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 13
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Question 13.12 continued
Payroll Register Sheet for Belinda Way for week ended 12 May 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 Hosp Union Ded’s $
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
Payroll Register Sheet for Belinda Way for week ended 19 May 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 Hosp Union Ded’s $
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
Payroll Register Sheet for Belinda Way for week ended 26 May 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 Hosp Union Ded’s $
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
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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
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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 . .
Date Particulars Bank Wages PAYG W’hold Super Medic
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
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Question 13.14 finalised
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
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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
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Question 13.15 continued
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
Date Particulars Bank Wages PAYG W’hold Super Medic
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
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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
Date Particulars Bank Wages PAYG W’hold Super Medic
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
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Question 13.16c continued
Extract Cash Payments Journal of . . . CP . .
Date Particulars Bank Payroll Clearing
PAYG W’hold Super Medic
Hosp Credit Union
7 Jan 16 Payroll Clearing 2 630 2 630
14 Jan 16 Payroll Clearing 2 489 2 489
21 Jan 16 Payroll Clearing 2 700 2 700
28 Jan 16 Payroll Clearing 2 302 2 302
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%.
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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.
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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
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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
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 Hosp Union Ded’s $
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
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Question 13.22
(Hours Calculation) Payroll Register Sheet for V Dougherty for week ended 6 May 2016
Employee Hourly Ordinary Hours Tot Total Overtime Total Rate
$ Nor AL LL SL LSL Hrs Ordinary
$ 1½ 2 Equiv Am’nt
$ 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
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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
General Journal of . . . GJ . .
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
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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
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Question 13.26 continued Direct method:
Extract Cash Payments Journal of Marek Bowman CP . .
Date Particulars Bank Wages PAYG W’hold Super Medic
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 . .
Date Particulars Bank Wages PAYG W’hold Super Medic
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
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Question 13.27 continued Direct method:
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
Extract Cash Payments Journal of Henry M Thomas CP . .
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
Extract Cash Payments Journal of Henry M Thomas CP . .
Date Particulars Bank Payroll Clearing
7 Oct 16 Payroll Clearing 2 165.68 2 165.68
Question 13.28 Direct method:
Extract Cash Payments Journal of Max Major CP . .
Date Particulars Bank Wages PAYG W’hold Super Medic
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 13
© Cengage Learning Australia 2013
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 325.00 Superannuation Payable 135.00 Medical Payable 65.00 Employee Savings Payable 195.00 Deductions from payroll register for w/e 14/11/16 21 Nov 16 Wages 784.00
PAYG Withholding 389.00 Superannuation Payable 135.00 Medical Payable 65.00 Employee Savings Payable 195.00 Deductions from payroll register for w/e 21/11/16 28 Nov 16 Wages 680.00
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
Extract Cash Payments Journal of Max Major CP . .
Date Particulars Bank Wages PAYG W’hold Super Medic
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 13
© Cengage Learning Australia 2013
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
21 Nov 16 Wages 2 470.00 PAYG Withholding 389.00 Superannuation Payable 135.00 Medical Payable 65.00 Employee Savings Payable 195.00 Payroll Clearing 1 686.00 Wages, deductions & payroll clearing for w/e 21/11/16
28 Nov 16 Wages 2 027.00 PAYG Withholding 285.00 Superannuation Payable 135.00 Medical Payable 65.00 Employee Savings Payable 195.00 Payroll Clearing 1 347.00 Wages, deductions & payroll clearing for w/e 28/11/16
Extract Cash Payments Journal of Max Major CP . .
Date Particulars Bank Payroll Clearing
PAYG W’hold Super Medic
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 13
© Cengage Learning Australia 2013
627
Question 13.29
Payroll Register Sheet of Felicity Anna for week ended 4 November 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 Hosp Union Ded’s $
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
Payroll Register Sheet of Felicity Anna for week ended 11 November 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 Hosp Union Ded’s $
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
Payroll Register Sheet of Felicity Anna for week ended 18 November 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 Hosp Union Ded’s $
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
Payroll Register Sheet of Felicity Anna for week ended 25 November 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 Hosp Union Ded’s $
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
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 13
© Cengage Learning Australia 2013
628
Question 13.29 continued Direct method:
Extract Cash Payments Journal of Felicity Anna CP . .
Date Particulars Bank Wages PAYG W’hold Super Medic
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
21 Nov 16 Wages 431.68 PAYG Withholding 192.00 Superannuation Payable 127.68 Medical Payable 47.00 Credit Union Payable 65.00 Wages, deductions & payroll clearing for w/e 21/11/16
28 Nov 16 Wages 452.68 PAYG Withholding 213.00 Superannuation Payable 127.68 Medical Payable 47.00 Credit Union Payable 65.00 Wages, deductions & payroll clearing for w/e 28/11/16
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 13
© Cengage Learning Australia 2013
629
Question 13.29 continued
Extract Cash Payments Journal of Felicity Anna CP ..
Date Particulars Bank Wages PAYG W’hold Super Medic
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
MRFS Super Fund 510.72 510.72
Tweed Health 188.00 188.00
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
14 Nov 16 Wages 2 331.30 PAYG Withholding 209.00 Superannuation Payable 127.68 Medical Payable 47.00 Credit Union Payable 65.00 Payroll Clearing 1 882.62 Wages, deductions & payroll clearing for w/e 14/11/16
21 Nov 16 Wages 2 252.90 PAYG Withholding 192.00 Superannuation Payable 127.68 Medical Payable 47.00 Credit Union Payable 65.00 Payroll Clearing 1 821.22 Wages, deductions & payroll clearing for w/e 21/11/16
28 Nov 16 Wages 2 353.80 PAYG Withholding 213.00 Superannuation Payable 127.68 Medical Payable 47.00 Credit Union Payable 65.00 Payroll Clearing 1 901.12 Wages, deductions & payroll clearing for w/e 28/11/16
Clarke 8e Accounting: An introduction to principles and practice – Solutions Manual chapter 13
© Cengage Learning Australia 2013
630
Question 13.29 continued
Extract Cash Payments Journal of Felicity Anna CP . .
Date Particulars Bank Payroll Clearing
PAYG W’hold Super Medic
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
MRFS Super Fund 188.00 188.00
Tweed Health 260.00 260.00
9 216.20 7 446.48 811.00 510.72 188.00 260.00
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