Professional Documents
Culture Documents
DQ4.14
Transactions
Source Documents
A cash payment
A cash receipt
A credit sale
A purchase of inventory
Receipt of inventory
P4.2
1 No- no service has yet been provided.
2 No- the exchange must have been between the entity being accounted for and someone else,
in this example it is a shareholder rather than the entity being account for that purchased the
shares.
3 Yes
4 Yes
5 Yes
6 No- the exchange must have been between the entity being accounted for and someone else,
in this example the entity being accounted for is not involved in this transaction.
7 No- the event must involve an exchange of goods or money which has not occurred at this
point. The accounting transaction would occur once the goods are delivered and/or invoiced.
8 Yes
P4.10
1. General journal
Ledger
folio
Dr
$
30
1
150,000
2 Delivery truck
Loan from Finance Co.
35
15
80,000
4 Inventories
Sundry creditors
32
10
200,000
45
30
4,800
10 Bank of NZ
Sales
Cost of goods sold
Inventories
30
20
40
32
50,000
15 Sundry debtors
Sales
Cost of goods sold
Inventories
31
20
40
32
120,000
43
30
8,000
27 Office expenses
Bank of NZ
47
30
26,000
29 Bank of NZ
Sundry debtors
30
31
90,000
29 Sundry creditors
Bank of NZ
10
30
100,000
Date
Particulars
2016
April 1 Bank of NZ
Share capital
Cr
$
150,000
80,000
200,000
4,800
50,000
30,000
30,000
120,000
70,000
70,000
8,000
26,000
90,000
100,000
29 Interest expense
Bank of NZ
2
49
30
800
800
Bank of NZ
150,000
Inventories
200,000
10 Sundry creditors
2016
April 29
Bank of NZ
100,000
2016
April 4
Delivery truck
80,000
Bank of NZ
Sundry Debtors
50,000
120,000
20 Sales
2016
April 10
15
30 Bank of NZ
2016
April
1
10
29
2016
April 7
Share capital
Sales
Sundry debtors
150,000
50,000
90,000
25
27
29
29
Delivery truck
expenses
Salary Shop
assistant
Office expenses
Sundry creditors
Interest expense
4,800
8,000
26,000
100,000
800
31 Sundry debtors
2016
April 15
Sales
120,000
2016
April 29
Bank of NZ
90,000
32 Inventories
2016
April 4
Sundry creditors
200,000
2016
April 10
30,000
4
15
70,000
35 Delivery truck
2016
April 2
80,000
40 Cost of goods sold
2016
April
10
15
Inventories
Inventories
30,000
70,000
42 Salary Shop assistant
2016
April 25
Bank of NZ
8,000
45 Delivery truck expenses
2016
April 7
Bank of NZ
4,800
47 Office expenses
2016
April 27
Bank of NZ
26,000
49 Interest expense
2016
April 29
Bank of NZ
800
3
Trial Balance
Dr
1
9
10
15
20
30
31
32
35
40
42
45
47
49
Share capital
Profit and loss
Sundry creditors
Loan from Finance Co.
Sales
Bank of NZ
Sundry debtors
Inventories
Delivery truck
Cost of goods sold
Salary Shop assistant
Delivery truck expenses
Office expenses
Interest expense
Cr
150,000
100,000
80,000
170,000
150,400
30,000
100,000
80,000
100,000
8,000
4,800
26,000
800
500,000
500,000
Closing entries
General journal
Date
2016
April 30
Posting
ref.
Dr
$
Sales
Profit and loss summary
20
8
170,000
9
40
42
45
47
49
139,600
9
2
30,400
Particulars
Cr
$
170,000
100,000
8,000
4,800
26,000
800
30,400
Bank of NZ
150,000
2 Retained profits
2016
April 30
30,400
2016
April 30
Sales
170,000
100,000
8,000
4,800
26,000
800
30,400
8
170,000
170,000
10 Sundry creditors
2016
April 29
30
Bank of NZ
Balance
100,000
100,000
2016
April 4
Inventories
200,000
200,000
200,000
April 30
Balance
100,000
170,000
2016
April 10
15
Delivery truck
Bank of NZ
Sundry Debtors
170 000
30 Bank of NZ
2016
April 1
10
29
2016
April 7
Share Capital
Sales
Sundry debtors
150,000
50,000
25
90,000
27
29
30
Balance
50,000
120,000
170,000
Delivery truck
Expenses
Salary Shop
assistant
Office expenses
Sundry creditors
Interest expenses
Balance
290,000
April 30
80,000
4,800
8,000
26,000
100,000
800
150,400
290,000
150,400
31 Sundry debtors
2016
April 15
2016
April
Sales
120,000
29
30
Bank of NZ
90,000
Balance
30,000
120,000
April 30
Balance
120,000
30,000
32 Inventories
2016
April 4
Sundry creditors
200,000
2016
April 10
30,000
9
15
30
200,000
April 30
Balance
70,000
100,000
200,000
100,000
35 Delivery truck
2016
April 2
80,000
2016
April 30
Inventories
Inventories
30,000
70,000
100,000
42 Salary Shop assistant
2016
April 25
Bank of NZ
8,000
2016
April 30
100,000
100,000
8,000
4,800
26,000
800
Bank of NZ
4,800
2016
April 30
47 Office expenses
2016
April 27
Bank of NZ
26,000
2016
April 30
49 Interest expense
2016
April 29
Bank of NZ
800
2016
April 30
10
Carlson Ltd
Income Statement for month ended 30 April 2016
$
Sales
Less: Cost of goods sold
Gross margin
Less: Other expenses
Salary Shop assistant
Delivery truck expenses
Office expenses
Interest expense
$
170,000
(100,000)
70,000
8,000
4,800
26,000
800
(39,600)
30,400
Net profit
6
Post-closing trial balance as at 30 April 2016
$
1
2
10
15
30
31
32
35
Share capital
Retained profits
Sundry creditors
Loan from Finance Co.
Bank of NZ
Sundry debtors
Inventories
Delivery truck
150,400
30,000
100,000
80,000
360,400
$
150,000
30,400
100,000
80,000
_______
360,400
Carlson Ltd
Balance sheet as at 30 April 2016
Assets
Current assets
Bank of NZ
Sundry debtors
Inventories
Noncurrent assets
Delivery truck
$
150,400
30,000
100,000
280,400
80,000
11
360,400
Liabilities and shareholders equity
Current liabilities
Sundry creditors
Long-term liabilities
Loan
100,000
80,000
180,000
Shareholders equity
Share capital
Retained profits
150,000
30,400
180,400
360,400
CASE 4A
1 Likely source documents
a Sale (cash) cash register information.
b Purchase of goods for sale invoice from supplier.
c Payment to suppliers receipt issued by suppliers; bank statements.
d Payment of wages payroll analysis.
e Interest expense bank statement.
2 This is an example of a chart of accounts for Woolworths Limited.
Assets current
1
3
3A
4
4A
6
7
9
11
Cash
Trade debtors
Allowance for doubtful debts
Other debtors
Allowance for doubtful debts
Short-term deposits
Staff and other advances
Inventories
Prepayments
Assets noncurrent
21 Shares in controlled entities
23 Loans to controlled entities
24 Interest in partnerships and trusts
25 Semi-Government securities
31 Freehold land
32 Buildings
33 Other properties
33A Accumulated depreciation on buildings
34 Leasehold improvements buildings
35 Other leased properties
35A Accumulated amortisation on leasehold
41 Plant, equipment and shop fittings
41A Accumulated depreciation plant
42 Leased plant equipment and shop fittings
42A Accumulated amortisation plant
51 Goodwill
52 Liquor licences
52A Accumulated amortisation liquor licences
12
61
63
65
67
Other debtors
Borrowing costs
Advances to employees
Future income tax benefit
3
No.
a
b
c
d
e
f
Description
Cash
Sales
Inventory
Accounts payable
Wages expense
Cash
Shop fittings
Accounts payable
Accounts receivable
Management fees revenue
Cash
Accounts receivable
Debits
$
38
Credits
$
38
3,000
3,000
1,000,000
1,000,000
800,000
800,000
1,000,000
1,000,000
1,000,000
1,000,000
13