You are on page 1of 23

FAA 2015.

1 Discussion problems_ week 3


Exercise 3.10

Recording transactions in general journal and


general ledger

In December 2016, the following transactions occurred in Macchiatos Coffee Roasters business that
supplies cafs and also sells direct to the public:
Dec.

Michael Macchiato invested $2 650 000 into the business of Macchiatos


Coffee Roasters by purchasing a fully equipped coffee roasting business. The
business acquired consisted of the following assets and liabilities:
Land
$1 200 000
Building 1 000 000
Coffee roasting equipment
Office equipment
Accounts payable

5
6
12
14
18

420 000
60 000
30 000

Purchased some new roasting equipment on credit for $160 000.


Collected cash from customers for the month, $220 000.
Paid the accounts payable owing on 2 December when Michael purchased the
business.
Purchased an insurance policy for the year for $6000 cash.
Purchased television advertising for the Christmas New Year period for
$8000 to be paid for in 30 days.
Collected fees in cash from customers for the Christmas New Year period,
amounting to $46 000.
Michael withdrew $8000 cash in order to pay for private Christmas presents
and parties.

23
30

Required
A. Prepare general journal entries for each of the above transactions and events.
B. Post the entries to ledger T accounts and balance the accounts as at 31 December 2016.

A.
MACCHIATOS COFFEE ROASTERS (ignore GST)
2
Land
1 200 000
Building
1 000 000
Coffee Roasting Equipment
420 000
Office Equipment
60 000
Accounts Payable
Michael Macchiato, Capital
Assets and liabilities contributed by the owner
5

Coffee Roasting Equipment


Accounts Payable
Purchase of roasting equipment on credit

160 000

Cash at Bank
Coffee Sales
Cash received for coffee sales for December.

220 000

12

Accounts Payable

30 000
2 650 000

160 000

220 000

30 000

FAA 2015.1 Discussion problems_ week 3


Cash at Bank
Cash paid for creditor for roasting equipment.

30 000

14 Prepaid Insurance
Cash at Bank
Cash paid in advance for insurance policy.

6 000
6 000

18 Advertising Expense*
Accounts Payable
Advertising costs over the holiday period

8 000
8 000

23 Cash at Bank
Coffee Sales
Coffee sales received for the holiday period.

46 000
46 000

Michael
30
Macchiato, Drawings
8 000
Cash at Bank
8 000
Cash withdrawn by owner
* Alternatively, debit Prepaid Advertising (asset), as not all of the expense applies to the month of
December.

B.
Cash at Bank
Dec

6 Coffee Sales

220 000

23 Coffee Sales

46 000

Dec

12

Accounts Payable

30 000

14

Prepaid Insurance

6 000

30

Michael
Macchiato,
Drawings

8 000

Balance c/d

222 000

31
266 000
31 Balance c/d

266 000

222 000
Land

Dec

2 Macchiato, Capital

1 200 000

Building
Dec

2 Macchiato, Capital

1 000 00
0

Coffee Roasting Equipment


Dec

2 Macchiato, Capital

420 000

5 Accounts Payable

160 000

Dec

31 Balance c/d

580 000

FAA 2015.1 Discussion problems_ week 3


580 000
31 Balance b/d

580 000

580 000

Office Equipment
Dec

1 Michael Macchiato,
Capital

60 000

Prepaid Insurance
Dec 14 Cash at Bank

6 000

Accounts Payable
Dec 12 Cash at Bank
31 Balance c/d

30 000

Dec

168 000

Macchiato,
Capital

Coffee Roasting
Equipment

18

Advertising
Expense

198 000

30 000
160 000
8 000
198 000

Dec 31

Balance b/d

168 000

Michael Macchiato, Capital


Dec

Various Assets and


Accs payable

2 650 000

Michael Macchiato, Drawings


Dec 30 Cash at Bank

8 000

Coffee Sales
Dec
Dec 31 Balance c/d

266 000

Cash at Bank

220 000

23

Cash at Bank

46 000

266 000

266 000
31

Advertising Expense
Dec 18 Cash at Bank

8 000

Balance b/d

266 000

FAA 2015.1 Discussion problems_ week 3


Exercise 3.12

Identifying and explaining errors

When processing the accounts for Ellises Electrical Contractors, the following errors were made:
(a) Electrical equipment purchased for $7800 cash was debited to Equipment and credited to
Accounts Payable for an incorrect amount of $8700.
(b) Collection of an account receivable for $4500 was recorded by a debit to Cash at Bank and a
debit to the equity account of the owner.
(c) A cheque for $6000 issued to pay for an account payable was recorded as a debit to Accounts
Payable and a credit to Accounts Receivable for $6000.
(d) A $2100 payment for assorted electrical tools was recorded as a debit to Equipment and a credit
to Cash at Bank for $210.
(e) Cash of $2000 withdrawn by the owner from the business was debited to Salaries Expense and
credited to Cash at Bank.
Required
A. Identify which of the above errors would cause unequal totals in a trial balance prepared at
the end of the period.
B. Write a brief explanation for each error to indicate how it could be fixed in the accounting
records.
A.
(a)

(b)
(c)
(d)
(e)
B.
(a)

The trial balance will still balance in spite of this error as there is an equal debit and credit for
$8700, even though the credit to the Accounts Payable account was incorrect. The correct
entry should have been to debit Office Equipment and credit Cash at Bank for the amount of
$8700.
There should have been a credit to Accounts Receivable instead of a debit to the Capital
account. This will cause an unequal total in the trial balance because two debit entries were
recorded in error, and no credit.
The trial balance will still balance in spite of this error as there is an equal debit and credit for
$6000, even though the wrong account was credited.
The trial balance will still balance in spite of this error, as the debit and credit were both equal
to $210.
The trial balance will still balance in spite of this error as there is an equal debit and credit for
$2000, even though the wrong account was debited.
To fix this error, the following journal entry is needed:
Accounts Payable
Electrical Equipment
Cash at Bank
Correcting errors made in certain asset and liability
accounts

8 700
900
7 800

This entry will bring the balance in the Office Equipment account to its correct amount of
$7800, as $900 is deducted from the amount already recorded. $8700 is reversed out of the
Accounts Payable account and the correct amount of $7800 is then credited to Cash at Bank.
(b)

In order to fix this error, the error in the Capital account will need to be eliminated by
crossing out the amount of $4500 from the account; and the debit in the Accounts Receivable

FAA 2015.1 Discussion problems_ week 3

(c)
(d)
(e)

account for $4500 will need to be crossed out and then the amount will need to be credited to
the account.
To fix this error, the entity needs to record another journal entry to debit Accounts Receivable
and to credit Cash at Bank for $6000.
To fix this error, there will need to be an additional journal entry to debit the Equipment
account and credit the Cash at Bank account for $1890.
To fix this error, the entity needs to record another journal entry to debit the Drawings account
and to credit Salaries Expense for $2000.

Problem 3.2

Journal entries, posting to ledger and trial balance

On 1 July 2015 Nicole Andreou opened a beauty parlour. The following transactions occurred during
the first month of operations (ignore GST):
July

2
2
3
4
6
16
20
23
28
31
31

Andreou invested $120 000 in the business by depositing cash into a


business cheque account with the Eastpac Bank.
Paid $1800 for the first months rent.
Purchased equipment by an online bank transfer for $32 000 and signing
a commercial loan agreement for $38 000.
Purchased supplies for $8400.
Paid advertising expense of $890.
Recorded beauty services revenue for the first half of the month of $3250
in cash and $620 on credit.
Paid insurance expense for July of $480 using an online bank transfer.
Received a $140 payment from customers who paid on credit in the first
half of the month.
Andreou withdrew $560 cash for personal living expenses.
Recorded revenue for the second half of the month of $3680 in cash and
$580 on credit.
Paid telephone account of $330 by electronic transfer.

Use the following account titles and numbers: Cash at Bank, 100; Accounts Receivable, 101;
Supplies, 102; Equipment, 103; Loan Payable, 200; Nicole Andreou, Capital, 300; Nicole
Andreou, Drawings, 301; Revenue, 400; Rent Expense, 500; Advertising Expense, 501;
Insurance Expense, 502; Telephone Expense, 503.
Required
A.
Prepare the general journal entries to record the transactions.
B.
Post the entries from the general journal to the general ledger accounts (running balance
format) and enter the posting references in the general journal.
C.
Prepare a trial balance as at 31 July 2015.
A.

General Journal
July

Cash at Bank
Nicole Andreou, Capital
Cash invested by owner.

100
300

120 000

Rent Expense
Cash at Bank

500
100

1 800

120 000

1 800

FAA 2015.1 Discussion problems_ week 3


Rent paid.
3

16

20

23

28

31

31

Equipment
Cash at Bank
Loan Payable
Equipment purchased for cash and loan
payable.

103
100
200

70 000

Supplies
Cash at Bank
Supplies purchased.

102
100

8 400

Advertising Expense
Cash at Bank
Cash paid for advertising.

501
100

890

Cash at Bank
Accounts Receivable
Revenue
Revenue for first half of month

100
101
400

3 250
620

Insurance Expense
Cash at Bank
Cash paid for insurance

502
100

480

Cash at Bank
Accounts Receivable
Receipt of payment from customers

100
101

140

Nicole Andreou, Drawings


Cash at Bank
Drawings by owner

301
100

560

Cash at Bank
Accounts Receivable
Revenue
Revenue for second part of month

100
101
400

3 680
580

Telephone Expense
Cash at Bank
Telephone expenses paid

503
100

330

32 000
38 000

8 400

890

3 870

480

140

560

4 260

330

FAA 2015.1 Discussion problems_ week 3

B.
ACCOUNT: Cash at Bank
Date Explanation
2015
2
7
2
7
3
7
4
7
6
7
1
7
6
2
7
0
2
7
3
2
7
8
3
7
1
3
7
1

Post
Ref

Nicole Andreou, Capital


Rent Expense
Equipment
Supplies
Advertising Expense
Revenue

Account No. 100


Credit Balance

Debit

120 000

Accounts Receivable

79 820

3 680

Telephone Expense

Post
Ref

Debit

620
140

580

2015
4
7 Cash at Bank

Debit

8 400

Post
Ref

82 610

Account No. 101


Credit Balance

620

Post
Ref

79 260
82 940

330

2015
1
7 Revenue
6
2
7 Cash at Bank
3
3
7 Revenue
1

2015
3
7 Cash and Loan Payable

79 680

560

Revenue

ACCOUNT: Equipment
Date Explanation

480
140

Nicole Andreou, Drawings

ACCOUNT: Supplies
Date Explanation

120 000
118 200
86 200
77 800
76 910
80 160

3 250

Insurance Expense

ACCOUNT: Accounts Receivable


Date Explanation

1 800
32 000
8 400
890

Debit

70 000

480
1 060

Account No. 102


Credit Balance

8 400
Account No. 103
Credit Balance

70 000

FAA 2015.1 Discussion problems_ week 3


ACCOUNT: Loan Payable
Date Explanation

Post
Ref

Account No. 200


Credit Balance

Debit

2015
3
7 Equipment

38 000

ACCOUNT: Nicole Andreou, Capital


Date Explanation
Post
Ref
2015
2
7 Cash at Bank

ACCOUNT: Nicole Andreou, Drawings


Date Explanation
Post
Ref
2015
2
7 Cash at Bank
8
ACCOUNT: Revenue
Date Explanation

Pos
t
Ref

Account No. 300


Credit Balance

Debit

120 00
0

Post
Ref

2015
2
7 Cash at Bank
ACCOUNT: Advertising Expense
Date Explanation

Debit

560

Debit

Debit

ACCOUNT: Insurance Expense


Date Explanation
2015

890

Post
Ref

Debit

Account No. 400


Credit Balance

3 870

3 870

4 260

8 130

1 800
Account No. 501
Credit Balance

Debit

2015
6
7 Cash at Bank

560

Account No. 500


Credit Balance

1 800

Post
Ref

120 000

Account No. 301


Credit Balance

2015
1
7 Cash and Accounts Receivable
6
3
7 Cash and Accounts Receivable
1

ACCOUNT: Rent Expense


Date Explanation

38 000

890
Account No. 502
Credit Balance

FAA 2015.1 Discussion problems_ week 3


2
0

7 Cash at Bank

ACCOUNT: Telephone Expense


Date Explanation
2015
3
7 Cash at Bank
1

480

Post
Ref

480

Account No. 503


Credit Balance

Debit

330

330

FAA 2015.1 Discussion problems_ week 3


Problem 3.5

Journal entries, entering beginning account balances,


posting to T accounts, and trial balance

The 31 May 2017 trial balance of Amy Wait, Physiotherapist, is shown below. Ignore GST.
AMY WAIT, PHYSIOTHERAPIST
Trial Balance
as at 31 May 2017

Account
Cash at bank
Accounts receivable
Supplies
Prepaid insurance
Furniture and equipment
Accounts payable
Electricity account payable
Unearned revenue
A. Wait, Capital
A. Wait, Drawings
Services revenue
Salary expense
Electricity expense
Rent expense

Debit
105 000
48 000
12 300
8 200
260 600

Credit

9 700
9 500
2 900
314 960

161 200
462 000

170 300
9 460
24 000
799 060

799 060

The following transactions were completed during June:


Jun
1
Purchased supplies on credit for $5800.
e
3
Received $24 400 from patients as payment on account.
6
Paid the electricity expense of $9500, previously recorded.
1
Performed services for $2000 that was recorded previously as unearned
0
revenue.
1
Recorded revenue of $178 600 in cash and $13 650 on credit.
4
Paid salaries of $65 880.
2
Purchased furniture for $15 400 and paid by electronic transfer.
0
Withdrew $60 000 from the business for personal use.
2
Paid creditors $7000.
3
Purchased insurance policy for $24 000 to cover business assets.
2
Received $12 000 from patients as payment on account.
4
Recorded revenue of $124 600 in cash and $25 000 on credit.
2
Paid rent of $24 000.
6
2
7
2
9
3
0
Required
A.
Prepare journal entries to record each transaction.
B.
1.
Open T accounts for the accounts shown in the trial balance.
2.
Enter the 31 May balance in each account.
3.
Post the journal entries to the T accounts.
C.
Prepare a trial balance as at 30 June 2017.

FAA 2015.1 Discussion problems_ week 3

FAA 2015.1 Discussion problems_ week 3

A.
General Journal
(GST ignored)
June

10

14

20

23

24

26

27

29

30

Supplies
Accounts Payable
Purchase of supplies on credit.
Cash at Bank
Accounts Receivable
Cash received from patients.

5 800
5 800
24 400
24 400

Electricity Account Payable


Cash at Bank
Payment of electricity account.

9 500

Unearned Revenue
Services Revenue
Revenue previously received.

2 000

Cash at Bank
Accounts Receivable
Services Revenue
Revenue received and receivable.

9 500

2 000
178 600
13 650
192 250

Salary Expense
Cash at Bank
Salaries paid.

65 880

Furniture and Equipment


Cash at Bank
Furniture purchased for cash.

15 400

A. Wait, Drawings
Cash at Bank
Drawings by owner.

60 000

Accounts Payable
Cash at Bank
Payment to creditors.

7 000

65 880

15 400

60 000

7 000

Prepaid Insurance
Cash at Bank
Purchase of insurance policy.

24 000

Cash at Bank
Accounts Receivable
Payment received from debtors.

12 000

Cash at Bank
Accounts Receivable
Services Revenue

24 000

12 000
124 600
25 000
149 600

FAA 2015.1 Discussion problems_ week 3


Revenue received and on account.
30

Rent Expense
Cash at Bank
Payment of rent.

24 000
24 000

B.
Cash at Bank
31/5

Balance b/d

105 000

6/6

Electricity Account
Payable

3/6

Accounts
Receivable

24 400

20/6

Salary Expense

65 880

14/6

Services Revenue

178 600

23/6

Furniture & Equipment

15 400

29/6

Accounts
Receivable

12 000

24/6

A. Wait, Drawings

60 000

30/6

Services Revenue

124 600

26/6

Accounts Payable

7 000

27/6

Prepaid Insurance

24 000

30/6

Rent Expense

24 000

30/6

Balance c/d

$444 600
30/6

Balance b/d

9 500

238 820
$444 600

238 820
Accounts Receivable

31/5

Balance b/d

$48 000

3/6

Cash at Bank

24 400

14/6

Services Revenue

13 650

29/6

Cash at Bank

12 000

30/6

Services Revenue

25 000

30/6

Balance c/d

50 250

$86 650
30/6

Balance b/d

$86 650

50 250

Supplies
31/5

Balance b/d

1/6

Accounts Payable

12 300
5 800

Balance c/d

18 100
30/6

Balance b/d

18 100
18 100

18 100
Prepaid Insurance

31/5

Balance b/d

$8 200

26/6

Cash at Bank

24 000
32 200

30/6

Balance b/d

32 200

30/6

Balance c/d

32 200
32 200

FAA 2015.1 Discussion problems_ week 3


Furniture and Equipment
31/5

Balance b/d

23/6

Cash at Bank

$260 600
15 400

30/6

Balance c/d

276 000
30/6

Balance b/d

276 000
276 000

276 000
Accounts Payable

26/6

Cash at Bank

7 000

30/6

Balance c/d

8 500

31/5

Balance b/d

9 700

1/6

Supplies

5 800

15 500

15 500
30/6

Balance b/d

8 500

Electricity Account Payable


6/6

Cash at Bank

9 500

31/5

Balance b/d

9 500

Balance b/d

2 900

Unearned Revenue
10/6

Services Revenue

30/6

Balance c/d

2 000

31/5

900
2 900

2 900
30/6

Balance b/d

900

Balance b/d

314 960

A. Wait, Capital
31/5

A. Wait, Drawings
31/5

Balance b/d

161 200

24/6

Cash at Bank

60 000

30/6

Balance c/d

221 200
30/6

Balance b/d

221 200
221 200

221 200

Services Revenue

30/6

Balance c/d

805 850

31/5

Balance b/d

10/6

Unearned Revenue

14/6

Cash at Bank/AR

192 250

30/6

Cash at Bank/AR

149 600

805 850

462 000
2 000

805 850
30/6

Balance b/d

805 850

FAA 2015.1 Discussion problems_ week 3


Salary Expense
31/5

Balance b/d

170 300

20/6

Cash at Bank

65 880

30/6

Balance c/d

236 180

236 180
30/6

Balance b/d

236 180

236 180
Electricity Expense

31/5

Balance b/d

9 460

Rent Expense
31/5

Balance b/d

24 000

30/6

Cash at Bank

24 000

30/6

Balance c/d

48 000

48 000
30/6

Balance b/d

48 000

48 000

C.
AMY WAIT, PHYSIOTHERAPIST
Trial Balance
as at 30 June 2017
Debit
Cash at Bank

$238 820

Accounts Receivable

50 250

Supplies

18 100

Prepaid Insurance

32 200

Furniture and Equipment

276 000

Accounts Payable

$8 500

Unearned Revenue

900

A. Wait, Capital
A. Wait, Drawings

314 960
221 200

Services Revenue
Salary Expense
Electricity Expense
Rent Expense

Credit

805 850
236 180
9 460
48 000
$1 130 210

$1 130 210

FAA 2015.1 Discussion problems_ week 3


Problem 3.7

Preparation of running balance ledger accounts and trial


balance

On 1 March 2014, James Taylor decided to open Taylors Tailormade that makes suits, trousers and
jackets and repairs and alters clothes. He contributed for this purpose sewing equipment $46 000 and
a commercial van $48 000, and deposited $10 000 cash in a business bank account. Transactions
during March were as follows (ignore GST):
March

4
4
6
7
8
11
12
13
14
15
16
17
18
21
23
24
25
28
31

Took a 3-year lease on a shop and paid first months rent $1200.
Purchased haberdashery supplies for $4200, and paid with an
electronic transfer of $1200 and paid for the rest with credit.
Cash received for minor clothing repairs, $120.
Revenue earned for tailor making a two piece suit for Andrea Fraser
on credit, $840.
Purchased a sewing machine, $3800, paying $800 cash and taking
out a loan for the balance.
Cash revenue earned, $1260.
Engaged a sewer at an agreed wage of $1100 per week.
Paid petrol $120, postage $20, and electricity bill $760.
Cash of $200 received for over-the-counter repairs.
Revenue of $1500 earned from a customer on credit.
Paid for haberdashery supplies purchased on credit on 4 March.
Withdrew $600 for own use.
Cash revenue received, $380.
Haberdashery supplies purchased for $500 on credit.
Paid wages to employee.
Revenue earned for making clothes: cash $240; on account $1200.
Andrea Fraser paid the bill for services rendered on 6 March.
Petrol expenses paid $80.
Paid weekly wages to employee.
Revenue earned for clothes $2420, receiving $200 in cash and the
remainder on credit.
Haberdashery supplies used, $620.

Required
A.
Prepare three-column running balance ledger accounts. Give each account a suitable
account number.
B.
Prepare a trial balance as at 31 March 2016.
A.
ACCOUNT: Cash at Bank
Date
Explanation
2016
1
3
4
3
4
3
6
3
7
3
8
3
1
3
2

James Taylor, Capital


Rent Expense
Haberdashery Supplies
Tailoring Revenue
Sewing Equipment
Tailoring Revenue
Petrol,
postage
electricity

Post
Ref

Account No. 100


Credit Balance

Debit

10 000
1 200
1 200
120
800
1 260
&

900

10 000
8 800
7 600
7 720
6 920
8 180
7 280

FAA 2015.1 Discussion problems_ week 3


1
3
1
4
1
5
1
6
1
8
2
1
2
3
2
4
2
5
2
8

Tailoring Revenue

200

Accounts Payable

James Taylor, Drawings

Tailoring Revenue

Wages Expense

Tailoring Revenue

240

3 400

Accounts Receivable

840

4 240

Fuel Expense

Wages Expense

Tailoring Revenue

3 000
600
380

3
3

Cash & Accounts Payable


Accounts Payable

Haberdashery
Expense

ACCOUNT: Accounts Receivable


Date
Explanation
2016
6
13
21
23
28

3
3
3
3
3

Tailoring Revenue
Tailoring Revenue
Tailoring Revenue
Cash at Bank
Tailoring Revenue

ACCOUNT: Sewing Equipment


Date
Explanation
2016
1

1 100

3 060

3 James Taylor, Capital

3 260

Account No. 101


Credit Balance

4 200
4 700
620

Post
Ref

Debit

840

Post
Ref

Debit

46 000

4 080

Account No. 110


Credit Balance

840
1 500
1 200
2 220

3 160

4 160

4 200
500

Supplies

3880

80

200

Debit

4 480

4 260
1 100

ACCOUNT: Haberdashery Supplies


Date
Explanation
Post
Ref
4
1
7
3
1

7 480

840
2 340
3 540
2 700
4 920

Account No. 112


Credit Balance

46 000

FAA 2015.1 Discussion problems_ week 3


7

3 Cash & Loan Payable

ACCOUNT: Commercial Vehicles


Date
Explanation
201
6
1

3 James Taylor, Capital

3 800

Post
Ref

Debit

48 000

49 800
Account No. 113
Credit Balance

48 000

FAA 2015.1 Discussion problems_ week 3


ACCOUNT: Accounts Payable
Date
Explanation
201
6
4
14
17

3 Haberdashery Supplies
3 Cash at Bank
3 Haberdashery Supplies

ACCOUNT: Loan Payable


Date
Explanation
201
6
7

3 000
3 000
500

Post
Ref

Post
Ref

13
16
21
28

Debit

104 000

3 Cash at Bank
3 Accounts Receivable
3 Cash at Bank
Cash at Bank
3
3
3
3

Cash & Accounts Rec.


Cash at Bank
Cash & Accounts Rec.
Cash & Bills Rec.

104 000

Account No. 301


Credit Balance

Debit

600

Post
Ref

3 000

Account No. 300


Credit Balance

3 Cash, Van and Equipment

ACCOUNT: Tailoring Revenue


Date
Explanation
201
6
6
6
8

Debit

3 Cash at Bank

3 000
0
500

Account No. 202


Credit Balance

3 000

ACCOUNT: James Taylor, Drawings


Date
Explanation
Post
Ref
201
6
15

Debit

3 Sewing Equipment

ACCOUNT: James Taylor, Capital


Date
Explanation
201
6
1

Post
Ref

Account No. 201


Credit Balance

600

Account No. 340


Credit Balance

Debit

120
840
1 260

120
960
2 220
2420

1500
380
1 440
2 420

3 920
4 300
5 740
8160

200

FAA 2015.1 Discussion problems_ week 3

FAA 2015.1 Discussion problems_ week 3


ACCOUNT: Rent Expense
Date
Explanation
201
6
4

3 Cash at Bank

ACCOUNT: Fuel Expense


Date
Explanation
201
6
12
24

3 Haberdashery Supplies

1 200

Account No. 352


Credit Balance

Debit

120
80

Post
Ref

120
200
Account No. 353
Credit Balance

Debit

760

Post
Ref

760

Account No. 354


Credit Balance

Debit

20

Post
Ref

3 Cash at Bank
3 Cash at Bank

ACCOUNT:
Haberdashery
Expense
Date
Explanation
201
6
31

Post
Ref

3 Cash at Bank

ACCOUNT: Wages Expense


Date
Explanation
201
6
18
25

1 200

3 Cash at Bank

ACCOUNT: Postage Expense


Date
Explanation
201
6
12

Debit

3 Cash at Bank
3 Cash at Bank

ACCOUNT: Electricity Expense


Date
Explanation
201
6
12

Post
Ref

Account No. 351


Credit Balance

20

Account No. 355


Credit Balance

Debit

1 100
1 100

Supplies
Post
Ref

1 100
2 200

Account No. 356


Debit

Credit

620

Balance

620

FAA 2015.1 Discussion problems_ week 3

FAA 2015.1 Discussion problems_ week 3


B.
TAYLORS TAILORMADE
Trial Balance
as at 31 March 2016
Account

Account
No.

Debit

Credit

Cash at bank

100

$3 260

Haberdashery supplies

101

4 080

Accounts receivable

110

4 920

Sewing equipment

112

49 800

Commercial vehicles

113

48 000

Accounts payable

201

500

Loan payable

202

3 000

James Taylor, Capital

300

104 000

James Taylor, Drawings

301

Tailoring revenue

340

Rent expense

351

1 200

Fuel expense

352

200

Electricity expense

353

760

Postage expense

354

20

Wages expense

355

2 200

Haberdashery supplies expense

356

620

600
8160

$115 660

$115660