Professional Documents
Culture Documents
GENERAL JOURNAL
Date Details Dr Cr
$ $
July 3 Equipment 3 600
J Rajah Ltd 3 600
Purchase of new equipment on credit, invoice
number 7361
14 TM Williams 780
T Williams Ltd 780
Correction of misposted entry
19 J Rajah Ltd 520
Equipment 520
return of equipment damaged in transit
31 Income statement 156 000
Purchases 156 000
transfer of purchases to financial statements
31 Discounts received 943
Income statement 943
transfer of discounts received to financial statements
SALES LEDGER
Dr TM Williams account Cr
July 14 T Williams Ltd 780
GENERAL LEDGER
Dr Equipment account Cr
July 3 J Rajah Ltd J8 3 600 July 19 J Rajah Ltd J8 520
Dr Purchases account Cr
July 31 Income statement 156 000
Question 2
GENERAL JOURNAL
Date Details Dr Cr
$ $
May 1 Bank 5 000
Fixtures and fittings 23 000
Bank loan 8 000
Capital 20 000
entries to open books of account
12 Administration expenses 105
Purchases 105
correction of misposting of purchase of stationery
15 Fixtures 1 050
Falmouth Shelving Ltd 1 050
purchase of fixtures on credit, invoice number 3088
31 Sales (i.e. Revenue) 28 700
Income statement 28 700
transfer of sales to financial statements
31 Income statement 750
Rent 750
transfer of rent to financial statements
GENERAL LEDGER
Dr Purchases account Cr
May 1 Admin expenses 105
Dr Rent account Cr
May 31 Income statement 750
Dr Sales account Cr
May 31 Income statement 28 700
Question 3
Question 4
Sept 3 Received an invoice for some new equipment for business General journal
use
6 Cheque stub showed the payment of rent for the month Cash book
11 Entries were made to correct a mistake made by the General journal
bookkeeper
14 Invoice was issued for the sale of goods on credit Sales journal
15 Credit note was issued for the return of goods by a Sales returns
customer journal
20 A voucher showed the purchase of postage stamps Petty cash book
23 Invoice was received for goods for resale Purchases journal
25 Some of the new equipment was found to be faulty and General journal
was returned to the supplier
30 Expense accounts were closed and their balances General journal
transferred to the profit and loss section of the income
statement for the year ended on this date
Question 5
GENERAL JOURNAL
Date Details Dr Cr
$ $
Jan 1 Bank 3 500
Vehicle 36 000
Equipment 19 000
Capital 58 500
entries to open books of account
15 Equipment 880
Bridge Products 880
purchase of equipment for business use on credit,
invoice number 478
19 Bridge Products 90
Equipment 90
return of equipment purchased on credit
Dr CASH BOOK Cr
Discounts Cash Bank Discounts Cash Bank
Allowed Received
$ $ $ $ $ $
Jan 1 Balance 3 500 Jan 10 Operating exp 280
7 Sales 1 240 11 Bank 800
11 Cash 800 24 MJT Ltd 93 4 557
29 Geeta Stores 24 911 31 Balances c/d 160 654
24 1 240 5 211 93 1 240 5 211
Feb 1 Balance b/d 160 654
Purchases Journal
Invoice
Date Details No. $
Jan 4 MJT Ltd 302 4 800
Total purchases 4 800
Sales Journal
Invoice
Date Details No. $
Jan 16 Geeta Stores 001 1 020
Total sales 1 020
PURCHASES LEDGER
SALES LEDGER
GENERAL LEDGER
Dr Vehicle account Cr
Jan 1 Balance 36 000
Dr Equipment Cr
Jan 1 Balance 19 000 Jan 19 Bridge Products 90
15 Bridge Products 880
Dr Capital account Cr
Jan 1 Balance 58 500
Dr Purchases account Cr
Jan 31 Purchases
journal 4 800
Question 6
GENERAL JOURNAL
Date Details Dr Cr
$ $
20 Furniture and equipment 1 460
Deva Office Supplies 1 460
purchase of equipment for business use on credit,
invoice number 2789
Dr CASH BOOK Cr
Discounts Cash Bank Discounts Cash Bank
Allowed Received
$ $ $ $ $ $
Nov 1 Balance b/d 440 Nov 1 Balance b/d 1 480
7 Oldbridge 1 Operating exp 380
Retail Unit 140 2 660 13 Drawings 720
12 Sales 2 460 18 Bank 1 800
18 Cash 1 800 20 M Chin Ltd 160 3 040
29 Peterson Stores 110 3 430 30 Balances c/d 720 2 650
250 2 900 7 890 160 2 900 7 890
Dec 1 Balances b/d 720 2 650
PURCHASES JOURNAL
Invoice
Date Details No. $
Nov 3 LDZ Ltd 891 3 000
Total purchases 3 000
SALES JOURNAL
Invoice
Date Details No. $
Nov 17 Peterson Stores 407 1 960
Total sales 1 960
PURCHASES LEDGER
SALES LEDGER
GENERAL LEDGER
Dr Capital account Cr
Nov 1 Balance b/d 103 560
Dr Drawings account Cr
Nov 1 Balance b/d 37 320
13 Bank 720
Dr Purchases account Cr
Nov 1 Balance b/d 578 270
30 Purchases
journal 3 000
Dr Sales account Cr
Nov 1 Balance b/d 732 340
12 Cash 2 460
30 Sales
journal 1 960
Trial Balance at 30 November 2014
Dr Cr
$ $
Cash 720
Bank 2 650
Capital 103 560
Discounts allowed 1 570
Discounts received 2 050
Drawings 38 040
Furniture and equipment 181 460
Operating expenses 45 740
Purchases 581 270
Sales returns 5 010
Purchases returns 5 350
Sales (i.e. Revenue) 736 760
Trade payable: LDZ Ltd 7 280
Deva Office Supplies 1 460
856 460 856 460
EXAM-STYLE QUESTIONS
Question 19
(b) The balance of the cash column shows that the business has cash in hand of
$165; the balance of the bank column shows that the business has an
overdraft of $140.
Question 20
No. K488
INVOICE
Unit
Quantity Description price Total
$ $
6 Excel surfboards 320 (i) 1 920
(ii) 5 Supa surfboards 380 1 900
TOTAL (iii) 3 280
Less 20% (iv) trade discount (v) 656
NET AMOUNT DUE (vi) 2 614
Terms: payments within 30 days
Term: 5% (vii) cash discount for settlement within 20 days
Question 21
Question 22
(a) Source documents are important because they provide information for
making entries in the accounting system. They are evidence for each
transaction.
(b)
Transaction Source document
(i) Some new office furniture was Invoice
purchased on credit
(ii) Some goods were returned to a supplier Credit note (received)
(iii) Cash sales were paid into the bank Paying-in slip counterfoil
Question 23
(a) Imprest
(b) $170
(c) Expenses of $140 will be charged to in the income statement.
(d) Balance of petty cash in hand $10 will be recorded as a current asset.
Question 24
(a) The general journal is used to make the first record of transactions which
are not recorded in the other books of prime entry (i.e. not recorded in
cash books or purchases, sales and returns journals).
(b)
GENERAL JOURNAL
Date Details Dr Cr
$ $
Tom Cheung 230
Office furniture 230
Sales of office equipment on credit
Delivery vehicle 15 400
Bestride Motors Ltd 15 400
Purchase of new vehicle on credit
Income statement 3 910
General expenses 3 910
Transfer of general expenses to financial statements
Question 25
(a) The cash in hand will be shown as a current asset; the bank overdraft will be
shown as a current liability.
(b) Discount columns are totalled in the cash book because the columns do not
form an account within the cash book, instead they show a note of any cash
discounts allowed and received (they are ‘memorandum columns’).
(c) Credit customers are allowed a cash discount to encourage them to pay
promptly. Prompt payment will improve Paloma’s cash flow.
(d) Discounts allowed will be debited to the discounts allowed account; discounts
received will be credited to the discounts received account. At the end of the
financial year the accounts will be closed and the balances transferred to the
income statement (discounts allowed as an expense; discounts received as
income).