Accounting 9th Edition Hoggett Solutions Manual Full Chapter PDF

Accounting 9th Edition Hoggett
Solutions Manual
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Solutions Manual
to accompany
Accounting 9e
by
John Hoggett
Lew Edwards
John Medlin
Keryn Chalmers
Andreas Hellmann
Claire Beattie
Jodie Maxfield
© John Wiley & Sons Australia, Ltd 2015

Chapter 7: Accounting systems
CHAPTER 7
ACCOUNTING SYSTEMS
DISCUSSION QUESTIONS
SOLUTIONS
1. ‘Accountants should not concern themselves too much with elaborate administrative and
accounting controls in an internal control system, since any such system is only as good as
the human element in the system.’ Do you agree? Explain your answer.
The primary role of internal control is to safeguard the assets of the entity against waste,
fraud, inefficiency and incompetence. Cash, being a liquid asset, is very susceptible to
robbery and fraud; therefore, safeguarding cash requires stringent internal control procedures.
Clearly established lines of responsibility and separation of duties are important (see text p.
286).
People, being naturally ingenious, often try to outsmart the system, and sometimes succeed;
but a good internal control system should detect whenever there has been a breakdown in
procedures, or collusion between employees. Employing competent staff to carry out internal
control procedures is vital. However, the cost of a good internal control system may exceed
the benefits, both economic and social, of having such a system; hence, costs and benefits
must be carefully considered in the system’s design phase to ensure adequate but not
excessive internal control procedures. Accountants should concern themselves to the point
where they consider controls in an internal control system adequate. It is impossible to
establish the ‘perfect control system’.
2. What is an internal control system? Discuss the principles involved in establishing a good
internal control system. Discuss also the limitations of internal control systems.
A system of internal control consists of all the measures used by a business:

• to safeguard its resources against waste, fraud and inefficiency
• to promote the reliability of accounting data
• to encourage compliance with business policies and government regulations.
Two aspects to internal control:
(1) administrative controls and
(2) accounting controls.
Administrative controls are those established to provide operational efficiency and
adherence to prescribed policies, such as a written directive identifying the standards to be
followed in hiring new employees, manuals identifying purchasing and sales procedures,
and various performance reports required from employees.
Accounting controls are the methods and procedures used to protect assets and ensure the
reliability of accounting records, such as procedures for the authorisation of transactions and
the separation of record-keeping duties from custodianship of the entity’s assets.
Principles of internal control which should be discussed are:
• Clearly established lines of responsibility
• Separation of record keeping and custodianship
• Division of responsibility for related transactions
© John Wiley & Sons Australia, Ltd 2015 7.2

Solutions Manual to accompany Accounting 9e by Hoggett et al
• Mechanical and electronic devices

• Adequate insurance
• Internal auditing
• Programming. physical and other controls.
See text pp. 286–287 for further discussion.
For discussion of the limitations of internal control systems, see text p. 288.
3. ‘In a system which uses several special journals, it is not necessary to have a general
journal.’ Do you agree? Explain.
In a system with several special journals, the need for a general journal remains to account for
any unusual transactions or events which cannot be catered for by any of the special journals.
Furthermore, the general journal is required for recording adjusting and closing entries.
Different special journals may be omitted from an entity’s accounting system, but the general
journal is always needed. In a sophisticated computerised accounting system, the general
journal may be the only journal needed. Such a general journal will provide a chronological
record of all transactions and events as they affect the entity.
4. During the month of October, credit sales for a business actually amounted to $963 534.
However, an error of $10 000 had been made in totalling the sales column of the sales
journal. When and how will this error be discovered?
The error would be detected at the end of the month when cross-adds are performed in the
sales journal. The total of the sales column and GST Payable column (credit columns) should
equal the total of the accounts receivable column (debit), which would then be posted to the
Accounts Receivable control account. If the error is not detected at this point, ultimately, the
unadjusted trial balance of the general ledger at the end of the month will be out of balance by
$10 000. The control account and subsidiary ledger balances will also not agree at the end of
the month and the error could be flagged by this disagreement.
5. Identify the major sources of cash receipts recorded in a cash receipts journal. Identify the
major transactions which involve cash payments in the cash payments journal.
The major sources of cash receipts are cash sales, the collection of accounts receivable from
customers, investments of capital by owners, sale of non-current assets and bank loans. The
major transactions involving cash payments are cash purchases of inventories, payment of
accounts payable, payments for various expenses including wages and taxes, and repayment
of bank loans.
6. An inventory purchase on credit of $10 000 plus GST was correctly recorded in the purchases
journal of a business. However, when postings were made to the accounts payable in the
subsidiary ledger, the purchase was incorrectly recorded as $1100; however, the correct
amount was posted to the inventory subsidiary ledger. When and how will this error be
discovered?
The amount that should have been posted to the accounts payable subsidiary ledger is $11
000. This error, which is called a ‘slide’, can be discovered in a couple of ways
1. The balance of the Accounts Payable Control account at the end of the period will
not agree with the total of the schedule of accounts payable subsidiary ledger
accounts.
2. It may be discovered very quickly (!) by paying the incorrect amount owing to the
particular creditor, who no doubt will query the size of the amount paid.
7. Critically examine the following remark: ‘By having the post ref. column in all of the special

journals, the recording process is slowed down, and too much unnecessary detail is provided
for very little purpose’.
An audit trail is necessary to ensure the completeness of the accounting records, and to
safeguard the composition of an entity’s assets and liabilities. Discuss with the class the need
for all businesses to provide an audit trail in order to trace the flow of all source documents
and transactions into the accounting records. The post ref column is extremely important in
that it represents the audit trail in the journals and ledgers.
8. Explain the treatment of sales returns and allowances and purchases returns and allowances
in special journals, under both the periodic and perpetual inventory systems. How would
these items be recorded on an inventory record in the subsidiary ledger? Why?
Unless an entity has many sales returns and purchases returns, enough to require the
establishment of special journals, such transactions are dealt with adequately in the general
journal, as illustrated in the demonstration problem p. 310 (periodic inventory system) to this
chapter.
Under a perpetual inventory system, two general journal entries are necessary for sales
returns, and one entry is necessary for purchases returns, as illustrated in Chapter 6, figure
6.10, p. 254. As illustrated in figure 6.10, sales returns are recorded as negative sales in that
the inventory returned to the entity is then placed back into inventory if the goods are not
faulty. Likewise, purchases returns are recorded as negative purchases in that the Inventory
account is credited and Accounts Payable is debited. The reason for such treatment in the
perpetual inventory inventory is so that the inventory records allow the entity to calculate the
correct net purchases and correct cost of sales for that inventory item. Further discussion of
this treatment is provided in Chapter 19 (AIA9e) and Chapter 14 (FAIA9e).
9. Which journal(s) would be used to record the following transactions? The business is
registered for GST.
(a) The introduction of cash and office equipment by the owner on establishment of the
business.
(b) The cash payment of rent in advance.
(c) The purchase of inventory on credit.
(d) The purchase of office supplies on credit.
(e) The sale of inventory on credit.
(f) The sale of some pieces of office equipment on credit.
(g) The collection of cash from a customer.
(h) The return of part of the inventory purchased previously on credit from a supplier.
(i) The adjusting entry for rent which is still prepaid at the end of the accounting period.
(j) The adjusting entry for unused office supplies.
(k) The closing entry for expenses at the end of the period.
(a) cash receipts journal for the cash, and the general journal for the office equipment
(b) cash payment journal
(c) purchases journal
(d) general journal; however, if a multipurpose purchases journal exists, as shown in figure
7.6 p. 295, the multipurpose purchases journal would be used
(e) sales journal
(f) general journal
(g) cash receipts journal
(h) general journal, or purchases returns journal if one exists
(i) general journal
(j) general journal
(k) general journal

10. ‘Since nearly all accounting functions today are computerised, there is really no need for
accountants to have an understanding of manual accounting systems.’ Do systems designers
need to understand manual accounting systems? Discuss.
Despite the growth in demand for computerised accounting packages being used in business,
there is always demand for students and accountants who have an underlying basic
accounting knowledge. For example, to understand how MYOB, Quick Books and other
computerised packages work, you need to understand the basic workings of a manual
accounting system (on which these computerised programs are modelled). Manual accounting
systems studied in introductory accounting courses form the basis for understanding
accounting and the financial reporting process. For this reason the study of manual systems is
paramount to understanding basic business transactions and the associated practice. As
indicated in the chapter, computerised accounting systems make extensive use of control
accounts/subsidiary ledgers, and adapt the principles underlying special journals.

EXERCISE SOLUTIONS
Exercise 7.1 Subsidiary ledger and control account
J. Fry uses subsidiary ledgers and special journals in his accounting system. The accounts in the
accounts payable subsidiary ledger for the most recent month are shown below:
E. Koumi A. Packer
CP 150 Bal. (b/d) 0 CP 180 Bal. (b/d) 180
P 200 P 250
P 210
T. Trinh Y. Yue
CP 230 Bal. (b/d) 490 CP 195 Bal. (b/d) 195
P 255 P 310
Required
A. Prepare the Accounts Payable Control account showing the final balance of the account,
assuming that all transactions are reflected in the above accounts.
B. Prepare a schedule of accounts payable to reconcile the subsidiary ledger with the control
account.
A.
Accounts Payable Control Account
Date Explanation Post Ref. Debit Credit Balance
Balance 865
Purchases PJ 1 225 2 090
Cash at bank CPJ 755 1 335
B.
Schedule of Accounts Payable
E. Koumi $ 50
A. Packer 460
T. Trinh 515
Y. Yue 310
$1 335

Exercise 7.2 Reconciling a control account and a subsidiary ledger
Assume that Xinshan’s China sold merchandise to three customers during June on credit, as shown in
the following Accounts Receivable Control account.
General Ledger
Accounts Receivable Control
Date Explanation Post Ref Debit Credit Balance
1/6 Balance 4 000
5/6 GJ8 630 3 370
30/6 S9 5 275 8 645
30/6 CR6 3 700 4 945
Subsidiary Ledger
A. Pedder E. Kilmore
1/6 Bal. 1 560 5/6 GJ8 360 1/6Bal. 1 320 17/6 CR6 1 320
9/6 S9 2 900 10/6 CR6 1 560 15/6 S9 1 750
M. Farnsworth
1/6 Bal. 1 120 24/6 CR6 840
27/6 S9 1 075
Required
Explain why the control account and related subsidiary ledger are not in balance. All postings to the
subsidiary ledger were correct. Prepare the corrected control account.
1. 5/6 GJ8 credit posting to Accounts Receivable Control A/c should be for $360 not
$630 as posted.
Change amount in credit column of control a/c to $360.
2. 30/6 S9 debit posting to Accounts Receivable Control A/c should be for $5 725 not $5
275 as posted.
Change amount in debit column of control a/c to $5 725.
3. 30/6 CR6 credit posting to Accounts Receivable Control A/c should be for $3 720 not
$3 700 as posted.
Change amount in credit column of control a/c to $3 720.
Amended Accounts Receivable Control A/c


1/6 Balance 4 000
5/6 Sales returns GJ8 360 3 640
30/6 Sales S9 5 725 9 365
30/6 Cash at bank CR6 3 720 5 645

Exercise 7.3 Reconciling a control account and a subsidiary ledger
Cosimo’s Cookware bought merchandise from three suppliers during September on credit, as shown
in the Accounts Payable Control account on the next page.
General Ledger
Accounts Payable Control
1/9 Balance 14 680
6/9 GJ 165 14 845
10/9 GJ 310 15 155
14/9 GJ 585 14 570
30/9 P 7 800 22 370
30/9 ? ? 5 425
Subsidiary Ledger
C. Cooper G. Grocke
30/9 Bal. 2 710 30/9 Bal. 1 580
O. Oldfield
30/9 Bal. ?
Required
A. Determine the missing amount (?) in the control account and insert the correct posting
reference in the Post Ref. Column.
B. Determine the ending balance in the account of O. Oldfield.
A. Missing amount in the control account is $16945 ($22 370 – 5425 )

The posting reference would be CPJ.
B. Since the control account shows that the closing balance for all payables is $5425 and the
closing balance for the account of C. Cooper is $2 710 and G. Grocke $1 580, then the
balance of O. Oldfield must be $1135 ($5425 – ($2 710 + $1 580)).

Exercise 7.4 Reconciling a control account and a subsidiary

ledger
Overton’s Outdoor Centre is owned and run by Kym Overton, using the periodic inventory system and
balancing her books at month-end. At 30 April 2016, the balances of the Accounts Receivable Control
and Accounts Payable Control accounts were $59 560 and $34 570 respectively. Ignore GST.
A summary of her dealings with customers and suppliers for May 2016 follows:
Bal. b/d Sales returns Discount

Customers 1/5/16 Credit sales (unpaid goods) Cash received allowed
Moses & Co. $15 540 $4 900 (9 May) $ 12 620 $260
T. Nitshke 6 300 2 800 $150 6 300 —
Nguyen Traders 12 000 6 160 (11 May) 60 10 970 220
Sampson Sales 21 280 2 240 — 16 360 400
Warner 1 500 1 950 — 1 500 —
Wholesalers 2 100 4 600 (16 May) 90 1 700 —
Saito Sales 840 1 680 — 820 20
Pfitzner Pty Ltd — 2 120 — — —
Rainsford Ltd —
Bal. b/d Credit Purchases returns Discount

Suppliers 1/5/16 purchases (unpaid goods) Cash paid received
Aste r Suppliers $19 500 $4 940 (8 May) $230 $14 000 $280
Pekoe Products — 2 470 — — —
Rainsford Ltd 13 900 7 600 (18 May) 280 11 460 230
R. Katspaw 1 170 1 820 — 1 150 20
The following additional information is available:

1. At Rainsford Ltd’s request, on 31 May, Kym Overton offset the amount owed by Rainsford Ltd
against the amount owing to it.
2. Overton’s Outdoor Centre paid Rainsford Ltd on 6 May, sold goods to Rainsford Ltd on 10 May,
and purchased goods from Rainsford Ltd on 19 May.
Required
A. Prepare the Accounts Receivable Control and Accounts Payable Control ledger
accounts for the month of May 2016.
B. Prepare Rainsford Ltd’s accounts payable subsidiary ledger account for the month of
May 2016 in the accounting records of Overton’s Outdoor Centre.
C. Prepare schedules of accounts receivable and accounts payable as at 31 May 2016.
A. General Ledger
Accounts Receivable Control A/c
1/5 Balance 59 560
9/5 Sales returns –Moses GJ 150 59 410
11/5 Sales returns – Nitshke GJ 60 59 350
16/5 Sales returns – Warner GJ 90 59 260
31/5 Sales SJ 26 450 85 710
31/5 Cash at bank and discount CRJ 51 170 34 540
allowed
31/5 Contra – Rainsford GJ 2 120 32 420

Accounts Payable Control A/c

1/5 Balance 34 570
8/5 Purchase returns – GJ 230 34 340
Aster
18/5 Purchase returns – GJ 280 34 060
Rainsford
31/5 Purchases PJ 16 830 50 890
31/5 Cash at bank and CPJ 27 140 23 750
discount received
31/5 Contra – Rainsford GJ 2 120 21 630
B. Subsidiary Ledger
Accounts Payable – Rainsford Ltd

1/5 Balance 13 900
19/5 Purchases PJ 7 600 21 500
18/5 Purchase returns GJ 280 21 220
6/5 Cash at bank and CPJ 11 690 9 530
discount received
31/5 Contra GJ 2 120 7 410
C.
Note: both schedules below are prepared before the offset of the receivable and payable for Rainsford
Ltd.
Schedule of Accounts Receivable
Moses & Co $7 410

T. Nitshke 2 740
Nguyen Traders 6 970
Sampson Sales 6 760
Warner Wholesalers 1 860
Saito Sales 5 000
Pfitzner Pty Ltd 1 680
Rainsford Ltd 2 120
$34 540
Aster Suppliers $9 930

Pekoe Products 2 470

Rainsford Ltd 9 530

R. Katspaw 1 820
$23 750

Exercise 7.5 Matching transaction types with journals
Fiona Spottiswoode uses a purchases journal, a cash payments journal, a sales journal, a cash
receipts journal and a general journal. Indicate in which journals the following transactions are most
likely to be recorded:
1. Issue of shares for cash.

2. Purchased inventories on credit.
3. Cash purchase of inventories (cheque no. 32162).
4. Sale of marketable securities (shares) for cash.
5. Sales of inventory on credit.
6. Received payment of a customer’s account.
7. Received adjustment note for defective goods, which were purchased on credit and returned to the
supplier.
8. Owner withdrew inventory for personal use.
9. Owner withdrew cash.
10. Payment of monthly rent by cheque.
11. Cash refund to a customer who returned inventory.
12. Year-end closing entries.
1. Cash receipts journal

2. Purchases journal
3. Cash payments journal
5. Sales journal
7. General journal
8. General journal
12. General journal

Exercise 7.6 Matching ledger accounts with journals
The accounting system for Barker Ltd uses a general journal and special journals for sales,
purchases, cash receipts and cash payments.
Cash at Bank 110 Discount Received 450

(a) 18 280 (g) 14 200 (i) 330
Accounts Receivable Control 120 Purchases 510

(c) 56 160 (e) 15 560 (h) 1 580
(k) 20 160
Accounts Payable Control 210 Purchases Allowances 515

(j) 13 320 (l) 20 160 (m) 250
Sales 410 Discount Allowed 520

(b) 56 160 (f) 240
(d) 3 560
Required
A. What journal would be the most probable source of the postings in the accounts?
B. Which of the above accounts would be affected if GST was recorded?
A.
(a) Cash receipts journal (h) Cash payments journal
(b) Sales journal (i) Cash payments journal
(c) Sales journal (j) Cash payments journal
(d) Cash receipts journal (k) Purchases journal
(e) Cash receipts journal (l) Purchases journal
(f) Cash receipts journal (m) General journal
(g) Cash payments journal
B. Accounts affected by GST would be:

Cash at Bank
The amounts entered in all the other accounts would exclude GST since they are all income
and expense accounts, and amounts are recorded net of GST in accordance with accounting
practice.

Exercise 7.7 Recording transactions in purchases and sales journals
Casey Ltd’s accounting system uses special journals and subsidiary ledgers. The following
transactions occurred during October 2016 (GST is ignored). All sales are n/30.
Oct 3 Purchased inventory from P. Forza, $1030, terms 2/15, n/30.

11 Sold goods to B. Harley on credit, invoice 435, $750.
13 Purchased office furniture on credit from R. Gerace, terms n/30,
18 $5460.
24 Paid P. Forza for goods purchased on 3 May.
27 Purchased goods from C. Dixon, $970, terms 2/15, n/30.
Sold inventory to K. Lee for cash, $1090.
Required
A. Ignoring GST, enter the appropriate transactions into the purchases and sales journals for
October, and explain how each would be posted to accounts in the ledgers.
B. Assuming that the company is registered for the GST, enter the appropriate transactions into
suitably ruled purchases and sales journals, and explain how each would be posted to
accounts in the ledgers.
A.
Purchases Journal
Date Date of Account Terms Post Purchases

Inv. Ref.
2016
Oct. 3 P. Forza 2/15, n/30 1 030
24 C. Dixon 2/15, n/30 970
2 000
Sales Journal
Date Inv. No. Account Terms Post Sales

Ref.
2016
Oct. 11 435 B. Harley 750
750
Postings are:
Purchases Journal — the accounts of Forza and Dixon in the accounts payable subsidiary
ledger would be credited with the individual purchases on 3 October and 24 October
respectively on those dates. The total of the journal would be debited to the Purchases account
and credited to the Accounts Payable Control account in the general ledger on 31 October.
Sales Journal — the account of Harley in the accounts receivable subsidiary ledger would be
debited with the individual sale on 11 October on that date. The total of the journal would be

debited to the Accounts Receivable Control account and credited to the Sales accounts in the
general ledger on 31 October.
B.
Purchases Journal
Date Date of Account Terms Post Purchases GST Accounts

Inv. Ref. Receivabl Payable
e
2016
Oct. 3 P. Forza 2/15, n/30 1 030 103 1 133
24 C. Dixon 2/15, n/30 970 97 1 067
2 000 200 2 200
Sales Journal
Date Inv. Account Terms Post Sales GST Accounts

No. Ref. Payable Receivable
2016
Oct. 11 435 B. Harley 750 75 825
750 75 825
Postings are:
Purchases Journal — the accounts of Forza and Dixon in the accounts payable subsidiary
ledger would be credited with the individual purchases on October 3 and October 24
respectively on those dates. The total of the journal would be posted on 31 October to the
following accounts in the general ledger as follows: Purchases account debited with total of
Purchases column, GST Receivable debited with the total of the GST Receivable column, and
Accounts Payable Control Account credited for the total of the Accounts Payable column.
Sales Journal — the account of Harley in the accounts receivable subsidiary ledger would be
debited with the individual sale on October 11 on that date. The totals of the journal would be
posted on 31 October to the following accounts in the general ledger as follows: Sales account
credited with total of Sales column, GST Payable credited with the total of the GST Payable
column, and Accounts Receivable debited for the total of the Accounts Receivable column.

Exercise 7.8 Journals, subsidiary ledgers and control accounts
Mazzone and Associates Accounts Receivable Control account in the general ledger on 1 September
was $17 755. The subsidiary ledger contained the following accounts receivable accounts and
balances at the same date: Quach $2330, Ridley $4277, Scafidi $3337, Talbot $7811. At
30 September, a summary of entries made in the journals shown were:
General journal: Talbot returned goods for a credit of $178.

Sales journal: Recorded credit sales were: Talbot $1290, Quach $2180, Ubhey $1670, Scafidi
$1780.
Cash receipts journal: Cash amounts received from accounts receivable were (no discounts
were allowed):
Talbot $3730, Ubhey $660, Scafidi $2120, Ridley $2920, Quach $2010.
Required
A. Enter the opening balances of the control account and subsidiary ledger accounts and post
the September entries and totals in the three journals to the accounts (ignore GST).
B. Prepare a schedule of accounts receivable at 30 September and reconcile the total with the
control account in the general ledger.
A.
General Ledger

Sep. 1 Balance 17 755
Sales return GJ 178 17 577
Sales SJ 6 920 24 497
Cash receipts CRJ 11 440 13 057
Accounts Receivable Subsidiary Ledger
Quach
Sale S 2 180 4 510
Cash receipt CR 2 010 2 500
Ridley
Scafidi


Sale S 1 780 5 117
CR 2 120 2 997
Talbot
Sales return GJ 178 7 633
Sale S 1 290 8 923
Ubhey
Sep. Sale S 1 670 1 670
Cash receipt CR 660 1 010
B.
as at 30 September
Quach $ 2 500
Ridley 1 357
Scafadi 2 997
Talbot 5 193
Ubhey 1 010
$13 057

Exercise 7.9 Relating sales and cash receipts to the subsidiary ledger
Model Trains Enthusiasts Shop’s sales and cash receipts journals for the month of April are presented
below. The accounts receivable subsidiary ledger is reconciled with the general ledger account each
month. On 1 April, the subsidiary ledger had four accounts: A. Tilden — $430; L. Tran — $520; N.
Summers — $630; T. Schmidt — $450.
Sales Journal Page

16 Cash Receipts Journal Page 14
Date Invoice Account Amount
1/4 1407 J. Wayne 340 Accounts
6/4 1408 A. Tilden 200 Date Account Cash Receivable
7/4 1409 L. Tran 320 4/4 A. Tilden 220 220
18/4 1410 N. Summers 180 12/4 L. Tran 420 420
27/4 1411 B. Pham 290 24/4 N. Summers 320 320
26/4 T. Schmidt 460 460
Required
A. Establish a T account for each customer’s account in the subsidiary ledger and an Accounts
Receivable Control account. Post the amounts to the accounts receivable subsidiary ledger
and the general ledger using the information in the journals shown.
B. Prepare a schedule of the accounts in the subsidiary ledger and compare its total to the
balance in the control account.
A.
Subsidiary Ledger
A. Tilden
1/4 Balance 430 4/4 CR14 220
6/4 SJ16 200 30/4 Balance 410
630 630
1/5 Balance 410
L. Tran
1/4 Balance 520 12/4 CRJ14 420
7/4 SJ16 320 30/4 Balance 420
840 840
1/5 Balance 420
N. Summers
1/4 Balance 630 24/4 CR14 320
18/4 SJ16 180 30/4 Balance 490
810 810
1/5 Balance 490

T. Schmit
1/4 Balance 450 26/4 CR14 460
10 30/4 Balance
450 450
1/5 Balance 1/5 Balance 10
J Wayne
1/4 SJ16 340
B. Pham
27/4 SJ16 290
General Ledger

1/4 Balance 2 030 30/4 CRJ14 1 420
30/4 SJ16 1 330 30/4 Balance 1 940
3 360 3 360
1/5 Balance 1 940
B.

as at 30 April
A. Tilden $ 410
L. Tran 420
N. Summers 490
T. Schmit (10)
J. Wayne 340
B. Pham 290
$1 940

Exercise 7.10 Relating purchases, cash payments and the general journal
to the subsidiary ledger and control account
At 1 February, the following information was extracted from the records of David Hendry (assume no
GST):
as at 31 January 2016
D. Geelan $ 525
Banks Ltd 5 250
Nguyen Ltd 5 560
$11 335
Extracts from the purchases, cash payments and general journals for February are presented below:
Purchases Journal Page Cash Payments Journal Page 1

1
Date Account Amount
3/2 D. Geelan 520 Chq. Accounts
9/2 Banks Ltd 3 620 Date Account No. Payable
12/2 Peter Ltd 2 430 5/2 Banks Ltd 532 5 100
22/2 G. Harker 2 350 18/2 D. Geelan 533 1 045
28/2 Nguyen Ltd 534 5 260
General Journal Page 1

Date Particulars Debit Credit
17/2 Accounts Payable Control, Nguyen Ltd 180
Purchases Returns and Allowances 180
(Returned goods, adjustment credit note received)
Required
A. Establish running balance ledger accounts for each supplier in the subsidiary ledger and an
Accounts Payable Control account in the general ledger. Post the amounts from the journals
to the subsidiary and control accounts.
B. Prepare a schedule of accounts payable as at 28 February and compare the total with the
balance in the control account.
A.
D. Geelan
Date Post Ref Debit Credit Balance
1/2 525
3/2 PJ1 520 1 045
18/2 CPJ1 1 045 0
Banks Ltd


1/2 5 250
5/2 CPJ1 5 100 150
9/2 PJ1 3 620 3 770
Nguyen Ltd
1/2 5 560
17/2 GJ 180 5 380
28/2 CPJ1 5 260 120
Peter Ltd
12/2 PJ1 2 430 2 430
G. Harker
22/4 PJ1 2 350 2 350
General Ledger
Account Payable Control A/c

1/2 11 335
17/2 GJ1 180 11 155
28/2 PJ1 8 920 20 075
28/2 CPJ1 11 405 8 670
B.

as at 28 February 2016
D. Geelan —
Banks Ltd 3 770
Nguyen Ltd 120
Peter Ltd 2 430
G. Harker 2 350
$8 670

Exercise 7.11 Accounting with several journals
Di Ieso & Daughters uses sales, purchases, cash receipts, cash payments and a general journal
(ignore GST). The following column totals were taken from the entity’s journals at the end of June:
1. Sales journal $7 520 4. Cash payments journal:

2. Purchases journal 4 010 (a) Cash $5 912
3. Cash receipts journal: (b) Accounts payable 5 010
(a) Cash 6 215 (c) Discounts received 100
(b) Accounts receivable 5 210 (d) Purchases 1 000
(c) Sales 1 050
(d) Discounts allowed 48
The balance in the Accounts Receivable Control account on 1 June was $3006 and the Accounts
Payable Control account balance was $4260.
Required
A. At the end of June, the total amount from the sales journal should be posted to what account
or accounts?
B. At the end of June, the total amount from the purchases journal should be posted to what
account or accounts?
C. For each column total in the cash receipts and the cash payments journals, specify whether it
would be posted to the general ledger as a debit or a credit, and to which account.
D. After the amounts in the journals have been posted to the general ledger for June, what would
be the balances in the Accounts Receivable Control and the Accounts Payable Control
accounts?
A. Accounts Receivable Control A/c and Sales A/c
B. Purchases A/c and Accounts Payable Control A/c
C. Cash receipts journal:

Cash at Bank – debit
Accounts Receivable Control – credit
Sales – credit
Discount Allowed – debit
Cash payments journal:

Cash at Bank – credit
Accounts Payable Control – debit
Discount Received – credit
Purchases – debit
D. Accounts Receivable Control $5 316

($3 006 + $7 520 – $5 210 = $5 316)
Accounts Payable Control $3 260

($4 260 + $4 010 – $5 010 = $3 260)

Exercise 7.12 Accounting with several journals
Crawford & Co. uses sales and purchases journals in its accounting system. The following
transactions took place during April (ignore GST):
April 2 Purchased inventory on credit from Bryden Ltd, invoice 567, $560, terms
5 2/10, n/30.
12 Purchased inventory on credit from H. Rider, invoice 342, $580, terms 2/10,
15 n/30.
21 Sold inventory on credit to G. Pier, invoice 154, $1325.
25 Sold inventory on credit to Sonic Ltd, invoice 155, $1120.
29 Purchased inventory on credit from L. Lambert, invoice 1435, $675, 2/10,
n/30.
Sold inventory on credit to Cavallaro Ltd, invoice 156, $760.
Sold inventory on credit to L. Burton, invoice 157, $465, 2/10, n/30.
Required
A. Establish all necessary general ledger accounts, accounts receivable subsidiary ledger
accounts, and accounts payable subsidiary ledger accounts. Use the following account
numbers: Accounts Receivable Control, 104; Accounts Payable Control, 201; Sales, 400;
Purchases, 500.
B. Enter the April transactions in the appropriate journals.
C. Post the data from the journals to the appropriate general ledger and subsidiary ledger
accounts.
D. Develop a schedule of accounts receivable and a schedule of accounts payable as at 30
April to prove the subsidiary ledger balances against the control accounts.
A. GENERAL LEDGER
Accounts Receivable Control 104
30/4 SJ 3 670
Accounts Payable Control 201

30/4 PJ 1 815
Sales 400
30/4 SJ 3 670
Purchases 500
30/4 PJ 1 815

B.
Purchases Journal
Date Inv. Account Terms Post Purchases

No Ref.
2/4 567 Bryden Ltd 2/10, n/30 ✓ 560
6/4 342 H Rider 2/10, n/30 ✓ 580
21/4 1435 L Lambert 2/10, n/30 ✓ 675
$1 815
(201)/ (500)
Sales Journal
Date Inv. Account Terms Post Sales

No. Ref.
12/4 154 G. Pier  1 325
15/4 155 Sonic Ltd  1 120
25/4 156 Cavallaro Ltd  760
29/4 157 L. Burton  465
$3 670
(104)/(400)
C.
G. Pier
12/4 SJ 1 325 1 325
Sonic Ltd
15/4 SJ 1 120 1 120
Cavallaro Ltd
25/4 SJ 760 760
L. Burton
29/4 SJ 465 465
Accounts Payable Subsidiary Ledger

Bryden Ltd
2/4 PJ 560 560
H. Rider
5/4 PJ 580 580
L. Lambert
21/4 PJ 675 675
D.
as at 30 April
G. Pier $1 325
Sonic Ltd 1 120
Cavallaro Ltd 760
L. Burton 465
$3 670

as at 30 April
Bryden Ltd $560

H. Rider 580
L. Lambert 675
$1 815

Exercise 7.13 Relating journals to the Accounts Payable

Control account
Hansford and Harding use purchases, cash payments and general journals with their accounting
system. They also maintain an accounts payable subsidiary ledger, which contains the following
accounts at 31 July:
L. Jessup
1/7 Balance 5 340
12/7 CP4 2 850 2 490
R. Kent
1/7 Balance 2 780
20/7 CP4 1 800 980
W. Lau
6/7 P6 5 100 5 100
21/7 P6 980 6 080
28/7 CP4 4 300 1 780
A. Machell
1/7 Balance 3 600
15/7 CP4 960 2 640
22/7 P6 760 3 400
B. Nicholson
1/7 Balance 6 120
15/7 GJ8 3 200 2 920
21/7 CP4 2 920 —
Required
A. Prepare an Accounts Payable Control account assuming all postings for the month of July have
been made, showing the appropriate posting references.
B. Explain how each of the amounts which appear in the Accounts Payable account were obtained.
A.
Accounts Payable Control A/c
1/7 Balance 17 840
15/7 GJ8 3 200 14 640
31/7 PJ6 6 840 21 480
31/7 CPJ4 12 830 8 650

as at 31 July
L. Jessup $2 490
R. Kent 980
W. Lau 1 780

A. Machell 3 400
B. Nicholson —
$8 650
B. The amounts in the Accounts Payable Control A/c were obtained as follows:
Balance — add all opening balances in subsidiary ledger for 1/7.

15/7 Entry from GJ8 Purchases — Return B. Nicholson posted on that date.
31/7 PJ the total of all P6 entries which would have been posted at the end of month
to Control A/c.
31/7 CPJ the total of all CP4 entries which would have been posted in total at end of
month to Control A/c.

Exercise 7.14 Relating journals to the Accounts Receivable

Control account
Rowett and Sharrad uses sales, cash receipts and general journals in its accounting system. The firm
also maintains an accounts receivable subsidiary ledger, which contained the following accounts on
31 August:
S. White
1/8 Balance 4 670
13/8 CR5 3 210 1 460
R. Riding
4/8 S7 1 800 1 800
18/8 S7 1 500 3 300
23/8 CR5 1 320 1 980
J. Bean
9/8 S7 3 420 3 420
21/8 CR5 1 300 2 120
S. Lau
1/8 Balance 3 450
12/8 CR5 1 520 1 930
25/8 S7 780 2 710
B. Beast
1/8 Balance 4 100
17/8 GJ5 2 320 1 780
31/8 CR6 1 780 —
Required
A. Prepare an Accounts Receivable Control account after all postings for the month of June have
been made with the necessary posting references.
B. Explain how all the amounts which appear in the Accounts Receivable Control account were
obtained.
A.
1/8 12 220
17/8 GJ5 2 320 9 900
31//8 SJ7 7 500 17 400
31/8 CRJ5 9 130 8 270

as at 31 August
S. White $1 460
R. Riding 1 980

J. Bean 2 120
S. Lau 2 710
B. Beast —
$8 270
B. The amounts in the Accounts Receivable Control A/c were obtained as follows:
Balance — add all opening balances in subsidiary ledger for 1/8.

17/8 Entry from GJ5 Sales Return B. Beast posted on that date.
31/8 SJ the total of all S7 entries which would have been posted at the end of month
to Control A/c.
31/8 CRJ the total of all CR5entries which would have been posted in total at end of
month to Control A/c.

Exercise 7.15 Detecting errors in an accounting system
Alana Szeqczyk’s accounting system that uses sales, purchases, cash receipts and cash payments
journals and a general journal. At various times during the year, the following errors have occurred.
1. The amount column in the sales journal was incorrectly totalled.
2. The amount of a bank loan entered in the ‘other accounts’ column of the cash receipts journal
was posted as a debit to bills payable.
3. A credit purchase for $700 was posted as $70 in the accounts payable subsidiary ledger.
4. A purchases return, journalised in the general journal, was posted to the Accounts Payable
Control account and to the Purchases Returns and Allowances account but was not posted to the
accounts payable subsidiary ledger.
5. A subtraction error was made in determining a customer’s account balance in the accounts
receivable subsidiary ledger.
6. The purchases journal was incorrectly totalled.
7. An error was made in totalling the cash column in the cash payments journal.
8. A sales allowance for goods sold on credit was entered in the general journal. The entry was
posted to only two accounts — the accounts receivable subsidiary account and to Sales Returns
and Allowances.
9. A cheque to a supplier, net of the applicable discount received, was correctly entered in the cash
at bank column at the net amount and in the accounts payable column at the gross amount. No
entry was made in the discount received column.
10. Discount allowed was not entered in the cash receipts journal. The amount of the supplier’s
invoice was entered in the accounts receivable column and the net amount of the cheque was
entered in the cash at bank column.
Required
Specify a procedure that would detect each error.
1. Compare the balance of the Accounts Receivable Control account with the schedule of
accounts receivable.
2. Prepare a trial balance for the general ledger. Compare the balance of the Accounts Payable
Control account with the schedule of accounts payable.
3. Prepare a trial balance for the general ledger.
4. Compare the balance of the Accounts Payable Control account with the schedule of accounts
payable.
6. Compare the balance of the Accounts Payable Control account with the schedule of accounts
payable.
7. Cross-add the cash payments journal.
9. Cross-add the cash payments journal.
10. Cross-add the cash receipts journal.


PROBLEM
SOLUTIONS
Problem 7.1 Accounting with sales journal and purchases journal
Tymonns Traders Ltd uses sales and purchases journals in its accounting system. The following
transactions occurred during April 2016.
April 5 Purchased merchandise on account from Smythe Ltd, invoice 354, $1500, terms
2/10, n/30.
8 Purchased merchandise on account from Ellis Ltd, invoice 376, $780, terms 2/10,
n/30.
10 Sold merchandise on account to B. Morran, invoice 345, $2280.
16 Sold merchandise on account to Bryde Ltd, invoice 346, $2640.
19 Purchased merchandise on account from R. Rober, invoice 828, $630, terms 2/10,
n/30.
26 Sold merchandise on account to G. Green, invoice 347, $1840.
29 Sold merchandise on account to Bryde Ltd, invoice 348, $1200.
Required
A. Complete the requirements below, assuming that the business is not registered for the GST.
1. Establish all necessary general ledger accounts, accounts receivable subsidiary
ledger accounts, and accounts payable subsidiary ledger accounts. Use the following
account numbers: Accounts Receivable, 1200; Accounts Payable, 2200; Sales, 4100;
Purchases 5100.
2. Enter the transactions for April in the appropriate special journals.
3. Post the data from the journals to the general ledger and subsidiary accounts.
4. Prepare a schedule of the accounts receivable subsidiary ledger and the accounts
payable subsidiary ledger as at 30 April to prove that their totals are equal to the
balances of the control accounts.
B. Complete the requirements 1–4 in part A, assuming that the business is registered for the
GST. Add the accounts 1300 GST Receivable and 2300 GST Payable to the accounts list.
Part A 1. and 3.
GENERAL LEDGER
30/4 S1 7 960

30/4 P1 2 910
Sales 4100
30/4 S1 7 960

Purchases 5100
30/4 P1 2 910
B Morran
10/4 SJ 2 280 2 280
Bryde Ltd
16/4 SJ 2 640 2 640
29/4 SJ 1 200 3 840
G. Green
26/4 SJ 1 840 1 840
Smythe Ltd
5/4 PJ 1 500 1 500
Ellis Ltd
8/4 PJ 780 780
R. Rober
19/4 PJ 630 630

2.
Purchases Journal
Date Date Account Terms Post Purchases

of Ref.
Inv.
5/4 5/4 Smythe Ltd 2/10, n/30 ✓ 1 500
8/4 8/4 Ellis Ltd 2/10, n/30 ✓ 780
19/4 19/4 R. Rober 2/10, n/30 ✓ 630
$2 910
(2 200)/ (5 100)
Sales Journal
Date Inv. Account Terms Post Sales

No. Ref.
10/4 345 B Morran  2 280
16/4 346 Bryde Ltd  2 640
26/4 347 G. Green  1 840
29/4 348 Bryde Ltd  1 200
7 960
(1200)/
(4 100)
4.
as at 30 April 2016
B Morran $2 280
Bryde Ltd 3 840
G Gales 1 840
$7 960

as at 30 April 2016
Smythe Ltd $1 500

Ellis Ltd 780
R. Rober 630
$2 910

Part B 1. and 3.

30/4 S1 8 756
GST Receivable 1300

30/4 P1 291

30/4 P1 3 201
GST Payable 2300

30/4 S1 796
Sales 4100
30/4 S1 7 960
Purchases 5100
30/4 P1 2 910
B Morran
10/4 SJ 2 508 2 508
Bryde Ltd
16/4 SJ 2 904 2 904
29/4 SJ 1 320 4 224
G. Green
26/4 SJ 2 024 2 024

Smythe Ltd
5/4 PJ 1 650 1 650
Ellis Ltd
8/4 PJ 858 858
R. Rober
19/4 PJ 693 693
2.
Purchases Journal
Date Date Account Terms Post Purchase GST Accounts

of Ref. s Receivable Payable
Inv.
5/4 5/4 Smythe Ltd 2/10, n/30 ✓ 1 500 150 1 650
8/4 8/4 Ellis Ltd 2/10, n/30 ✓ 780 78 858
19/4 19/4 R. Rober 2/10, n/30 ✓ 630 63 693
$2 910 291 3 201
(5 100) (1 300) (2 200)
Sales Journal

10/4 345 B Morran  2 280 228 2 508
16/4 346 Bryde Ltd  2 640 264 2 904
26/4 347 G. Green  1 840 184 2 024
29/4 348 Bryde Ltd  1 200 120 1 320
7 960 796 8 756
(4 100) (2 300) (1 200)
4.
as at 30 April 2016
B. Morran $2 508
Bryde Ltd 4 224
G. Gales 2 024
$8 756


as at 30 April 2016
Smythe Ltd $1 650
Ellis Ltd 858
R. Rober 693
$3 201

Problem 7.2 Determining an appropriate accounting system
Bush Basher Bikes sells off road motorbikes on both a credit and cash basis. They stock a full range
of spare parts and accessories. The business also employs a full-time mechanic who carries out
servicing and repairs on motorbikes — those sold by Bush Basher Bikes as well as those purchased
from other suppliers.
Prenumbered invoices are issued for all sales and services provided. Terms are strictly n/30 and no
discounts are offered. Total revenues last financial year amounted to $820 000 — $680 000 from the
sale of motorbikes, $42 000 for parts and accessories, and $98 000 for servicing and repairs. All
receipts are banked daily, and a petty cash system is in operation. Cash discounts are offered by all
suppliers, and the business ensures that all discounts on offer are taken. All payments are made by
online bank transfers with frequent payments made to suppliers, transport companies for delivery
costs on purchases, sponsorships and advertising. The mechanic is paid on every second Friday. The
office manager is paid an annual salary for managing the office, and for performing the manual
accounting duties.
The business currently has a manual system of accounting using special journals and subsidiary
ledgers. Rev Head, the owner of Bush Basher Bikes, is considering implementing a tried and tested
integrated accounting package.
Required
A. Identify the subsidiary ledger or ledgers that would be used in the current system.
B. Identify the special journals that would be appropriate in the current system, and suggest
appropriate columns that would be used in each of them.
C. Should a computer-based accounting system be implemented? Explain the reasons for your
decision.
A. Accounts Receivable Subsidiary Ledger — for all sales on credit to customers

Accounts Payable Subsidiary Ledger — for all purchases on credit from suppliers.
B. Special journals implemented:
Cash Receipts Journal

p. 1.
Date Account Post. Cash at Dis. Sales Accts. GST Other
Ref. Bank All’d Rec. Payable
Cash Payments Journal

p. 1.
Date Account Ch. Post. Other Acc/s Purchase GST Cash at Dis. GST
No. Ref. Payable s Receiva Bank Rec’d Receiva
ble ble
Sales Journal
p. 1.

Purchases Journal
p. 1.
Date Date Account Terms Post Purchase GST Accounts
of Ref. s Receivable Payable
Inv.
General Journal
Date Description Post Ref. Debit Credit
C. Rev head should utilise a computer-based accounting system like MYOB. The business has
sufficient turnover, i.e. total revenue of $820 000 from three major business activities. The
business also has a high volume of transactions. Banking is done daily and all payments are
made by online bank transfers. A computerised accounting system can include the
requirement for a password, or passwords, to be entered before payments can be made. Rev
head can also set up a system of electronic payments. Such systems will assist greatly in
recording and accounting for GST.
The total income, the distinct three business activities and the volume of transactions would
easily justify the implementation of a computerised accounting system. This will speed up the
record-keeping process and assist in preparing financial statements. It will also help in the
review of the accounts for audit or tax preparation purposes. The relatively low cost of the
computer software will also make it economical for the business to implement such a system.

Problem 7.3 Control accounts for receivables and payables
Ravilero Ltd uses the periodic inventory system and has control accounts and subsidiary ledgers for
trade receivables and payables. The general ledger control account balances at 1 June 2016 were:
Accounts receivable control $116 480

Accounts payable control 136 600
The following transactions took place during June:

Credit inventory sales for the month $152 800
Cash inventory purchases for the month 110 400
Credit inventory purchases for the month 77 400
Cash payments to creditors for the month 152 000
Discount received for the month 3 600
Discount allowed for the month 2 800
Cash receipts from customers for the month 155 400
Cash inventory sales for the month 11 200
Jun. 8: Goods (unpaid) returned by customer 11 100
11: Bill payable accepted by creditor in respect of balance of account 3 290
16: Goods (paid for) returned to supplier and received cash 8 500
21: Offset of accounts receivable and payable recorded 11 200
23: Goods (paid for) returned by customer and they were given cash 7 900
28: Goods (unpaid) returned to supplier 10 400
Required
Prepare the accounts receivable control and accounts payable control ledger accounts for the month
of June 2016.

1/6 Balance b/d 116 480 8/6 Sales returns GJ 11 100
30/6 Sales SJ 152 800 21/6 Accnts payable GJ 11 200
30/6 Cash at Bank CR 155 400
30/6 Discount allowed CR 2 800
30/6 Balance c/d 88 780
269 280 269 280
30/6 Balance b/d 88 780

11/6 Bill payable GJ 3 290 1/6 Balance b/d 136 600
21/6 Accnts receivable GJ 11 200 30/6 Purchases PJ 77 400
28/6 Purchase returns GJ 10 400
30/6 Cash at Bank CPJ 152 000
30/6 Discount received 3 600
CPJ
30/6 Balance c/d 33 510
214 000 214 000
30/6 Balance b/d 33 510
Problem 7.4 Reconciling monthly statement – accounts payable

You are the person responsible for the accounts payable ledger of Cameron Ltd. You are concerned
that the statement of account for the month ending 30 June 2016 received from Deveson Ltd does not
agree with the records shown for Deveson Ltd in the accounts payable subsidiary ledger. As a valued
customer of Deveson Ltd, Cameron Ltd receives a trade discount of 5% off the marked price of all
goods purchased. In addition, a 2% discount is allowed for payments made within 10 days of the
statement date. Ignore GST.
Deveson Ltd records all sales to Cameron Ltd net of trade discount. The statement dated 30 June
shows that Cameron Ltd owes $19 680 to Deveson Ltd. An examination of the account of Deveson Ltd
in the subsidiary ledger and other records reveals the following discrepancies:
1. Because of a clerical error, the credit side of the account of Deveson Ltd had been overstated by
$585.
2. The cash discount of $660, which had been deducted when making the May payment, had been
disallowed by Deveson Ltd because the payment was received more than 10 days after the
statement date.
3. Invoice no. D443 for a gross amount (before trade discount) of $820 had been entered on the
statement twice.
4. Invoice no. D452 for a gross amount (before trade discount) of $1080 had been correctly entered
on the statement but no records of the invoice had been recorded in the books of Cameron Ltd
even though the goods had been received.
5. Invoice no. D587 for $150 had been incorrectly debited on the statement as $510, and this invoice
had not been entered in the purchases journal or the subsidiary ledger as the goods had not yet
been received.
6. Adjustment (credit) note no. C321 for $125 received from Deveson Ltd had not been entered in
the subsidiary ledger, and had been entered on the statement as an invoice.
Required
Prepare a reconciliation memo which reconciles the amount owing on the statement of account from
Deveson Ltd to the amount which Cameron Ltd actually owes at 30 June. Assuming that payment will
be made on 9 July 2016, what is the amount of interbank transfer to Deveson Ltd’s bank account to
pay the amount owing?
Statement amount adjustments

$19 680
1. Deveson’s statement reflects correct position —
2. Deveson’s statement reflects correct position —
3. Statement amount needs to be reduced by $861, a credit of $820 for the
duplication on invoices plus the trade discount of $41 not deducted by
Deveson Ltd on the first invoice. –861
4. Deveson’s statement amount needs to be reduced by $54, the amount of
the trade discount not deducted –54
5. Statement amount needs to be reduced by $360, the amount incorrectly
overstated on the statement –360
6. Statement amount needs to be reduced by $125 to remove the effect of
incorrectly recording an invoice, plus a further reduction to take account
of the adjustment note –250
Correct amount of the statement should be $18 155
The amount of the interbank transfer to Deveson Ltd should be $18 155 less 2% discount ($363.10) =
$17 791.90.

Problem 7.5 Accounting with sales, cash receipts and general journals
Galluzo Ltd uses a sales journal, a cash receipts journal, a general journal and an accounts
receivable subsidiary ledger within a periodic inventory system. The terms of all credit sales are 2/10,
n/30. Where necessary, round amounts to the nearest dollar.
The accounts receivable subsidiary ledger balances on 31 May 2016 were:
A. Guthrie $ —
C. Haigh 3 980
E. Katsambit 750
G. Lintvelt 3 316
I. Dowden 3 184
K. Coldwell 1 990
$13 220
The trial balance as at 1 June included, among others, the following accounts:
Account no. Account title Account balance

1-1100 Cash at Bank $ 17 950
1-1150 Marketable Securities 30 485
1-1200 Accounts Receivable Control 13 220
1-1300 Bills Receivable —
2-2200 Bills Payable 2 400
4-4100 Sales 207 030
4-4150 Sales Returns and Allowances 2 572
4-4200 Dividend Revenue 1 005
4-4300 Interest Revenue 905
4-4400 Gain on Sale of Marketable Securities 280
5-5200 Discount Allowed 1 930
The following transactions during June were recorded in the sales, cash receipts or general journals
(ignore GST):
June 2 Sold inventory on credit to A. Guthrie, $1930, invoice 671.

4 Issued an adjustment note to K. Coldwell for defective goods sold on credit during
April for $180. Received a cheque from E. Katsambit for payment of a May
purchase, $750.
7 Sold inventory on credit to G. Lintvelt, $270, invoice 672.
10 Sold inventory on credit to C. Haigh, $430, invoice 673.
12 Received payment in full from K. Coldwell.
14 Received payment from A. Guthrie for invoice 671.
17 Borrowed $20 000 cash from the bank for 3 months at 10%. Issued a bill payable
in favour of the bank to cover the loan.
20 Sold inventory for cash, $295.
21 Sold marketable securities that had been held as a short-term investment for
$12 000 cash. The securities were originally purchased for $12 000.
24 Received a 60-day promissory note (bill receivable) from G. Lintvelt in settlement
of his account receivable balance.
25 Received a cheque from C. Haigh for $4410, for payment on his account.

26 Sold inventory on credit to E. Katsambit, $540, invoice 674.

30 Received payment from E. Katsambit for invoice 674.
Required
A. Record the June transactions in the appropriate journals. Make all postings to the
appropriate general ledger accounts and to the accounts receivable subsidiary ledgers.
B. Reconcile the subsidiary ledger with the Accounts Receivable Control account in the general
ledger.
A.
Sales Journal
p. 1.
Date Invoice Account Post Amount
Ref.
2/6 671 A Guthrie  1 930
7/6 672 G Lindvelt  270
10/6 673 C Haigh  430
26/6 674 E Katsambit  540
3 170
(1-1200/
4-4100)
Cash Receipts Journal

p. 1.
Date Account Post. Cash at Dis. Sales Accts. Other
Ref. Bank All’d Rec’ble
8/6 E Katsambit  750 750
12/6 K Coldwell  1 810 1 810
14/6 A Guthrie  1 930 1 930
20/6 Bills Pay. 2 20 000 20 000
200
20/6 Cash Sales 295 295
23/6 Market Sec. 1 12 000 12 000
150
25/6 C Haigh  4 410 4 410
30/6 E Katsambit  540 540
41 735 295 9 440 32 000
(1-1100) (5-5200) (4-4100) (1-1200) (x)

General Journal
Date Description Post Ref. Debit Credit

4/6 Sales Returns & Allowances 4-4150 180
Accts. Rec’ble Control – K Coldwell 1-1200/ 180
Return of defective goods.
24/6 Bills Receivable 1-1300 3 586

Accts Rec’ble Control – G Lintvelt 1200 3 586
Receipt of promissory note.
General Ledger
Cash at Bank 1-1100

1/6 Balance 17 950
30/6 CRJ1 41 734
59 685
Marketable Securities 1-1150

1/6 Balance 30 485 21/6 CRJ1 12 000
Balance 18 485
30 485 30 485
18 485
Accounts Receivable Control 1-1200

1/6 Balance 13 220 4/6 GJ1 180
30/6 SJ1 3 170 24/6 GJ1 3 586
30/6 CRJ1 9 440
30/6 Balance c/d 3 184
16 390 16 390
30/6 Balance b/d 3 184
Bills Receivable 1-1300

24/6 GJ1 3 586
Bills Payable 2-2200

1/6 Balance 2 400
17/6 CRJ1 20 000
22 400
Sales 4-4100
1/6 Balance 207 030
30/6 SJ1 3 170

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similar places. The two latter occur in chains formed by fission; but
the sexual individuals (which are of distinct sexes, contrary to the
usual hermaphrodite condition of Flat Worms) only appear at stated
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marine, and one family, the Proboscidae (distinguished by having the
anterior end invaginated by special muscles and converted into a
sensory organ), is entirely so. The most cursory examination of
littoral weeds reveals species of Macrorhynchus, Acrorhynchus,
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however, still remains to be done before we possess an adequate
idea of the occurrence of this group on our coasts.
Fig. 19.—Forms of Rhabdocoelida. A, Mesostoma tetragonum O. F. M.

(Rhabdocoela), × 10; B, Convoluta paradoxa Oe. (Acoela), × 10;
C, Vorticeros auriculatum O. F. M., × 6; D, Monotus fuscus Oe.
(Alloeocoela), × 4. ap, Adhesive papillae; d, intestine; m, pharynx;
ot, otolith; rh, rhabdites; te, testes; ut, uterus with eggs; yg, yolk-
glands; ♂, male, ♀, female genital pores. (A after Braun.)
Some Rhabdocoels are parasitic. Fecampia erythrocephala, which

occurs in the lacunar spaces and alimentary canal of young shore
crabs (Carcinus maenas), is a white cylindrical animal ¼ inch long,
with a red snout. After attaining maturity it works its way out of the
crab and encysts under stones, forming a pyriform mass in shape
like a "Prince Rupert's drop." Within this case the eggs develop, and
the young probably emerge through the open narrow end of the hard
white tube, but how they reach the crab is not known. Graffilla
muricicola is found in the kidney of Murex brandaris and M.
trunculus, at Naples and Trieste; G. tethydicola in the foot of Tethys.
Anoplodium parasiticum occurs among the muscles which attach the
cloaca of Holothuria tubulosa to the body-wall; and A. schneideri
occurs in the sea-cucumber, Stichopus variegatus. These are truly
parasitic forms, constituting a special sub-family. They have no
rhabdites in the skin; the nervous system and sense-organs are only
slightly developed; and the pharynx has undergone a notable
reduction in relation to the simpler mode of obtaining nourishment.
Other cases of association between certain Rhabdocoels (closely
allied to, if not identical with, certain free-living species) and
Lamellibranchs or Sea-urchins, are, however, of another kind. Thus
on the gills or in the mantle cavity of species of Mytilus, Cyprina,
Tellina, and upon the test of Clypeaster, such forms as Enterostoma
mytili, Acmostoma cyprinae, and Provortex tellinae have been found.
But it is probable that these Turbellaria here obtain merely a
temporary shelter and possibly a supply of the food of the mussel or
sea-urchin.
The Alloeocoela afford a well-established case of association.

Monotus fuscus (Fig. 19, D), an abundant, active, elongated animal,
lives on our coasts in the upper part of the littoral zone among
Patella, Balanus, and sometimes Chiton. When the tide is low, the
Monotus, to obtain moisture and darkness, creeps between the
mantle-folds of these animals, where it may readily be found. Upon
the return of the tide it leaves its retreat and creeps or swims about
freely. Other Alloeocoela collect in great numbers in tufts of red-
seaweeds (Florideae). By placing such tufts in vessels, the sea-
water, especially as darkness sets in, begins to swarm with
Cylindrostoma 4-oculatum, species of Enterostoma and
Plagiostoma; P. vittatum, with three violet bands across the white
body, being a particularly obvious form. Vorticeros auriculatum (Fig.
19, C), another abundant species, is remarkable for the long
tentacles which can be completely withdrawn, and in this condition it
completely resembles a Plagiostoma.
The presence of a species (P. lemani) of the characteristically marine
genus Plagiostoma, in the Lake of Geneva, and in one or two other
Swiss lakes, at depths varying from 1 to 150 fathoms, is very
interesting, and is perhaps the only well-established case of the
survival of a once marine Rhabdocoelid under changed conditions.
Plagiostoma lemani is by far the biggest of the group to which it
belongs, being over half an inch in length. It is usually found in fine
mud, sometimes among Chara hispida, and has the general
appearance of an inactive white slug. We are indebted to Forel and
Duplessis for the discovery of this species, and also of
Otomesostoma morgiense, a Mesostoma with an otolith, dredged in
10 to 50 fathoms in the Lake of Geneva, the Lake of Zürich, and
found recently also by Zacharias in the Riesengebirge. The genus
Bothrioplana, first found by Braun in the water-pipes of Dorpat, has
been carefully investigated by Vejdovsky,[66] who places it in a
special family, Bothrioplanidae, among the Alloeocoela. One species
has recently been found near Manchester.
A comprehensive survey of the Rhabdocoelida shows that, with the

chief exception of the Proboscidae, the more lowly organised forms,
the Acoela and Alloeocoela, are marine, whereas the fresh-water
forms are in most cases the most highly organised genera
(Mesostoma, Vortex). But Macrorhynchus helgolandicus, though
minute (1.5-2 mm. long), has a more complex structure[67] than any
other species of the specialised marine genus to which it belongs,
and is a remarkable instance of great complexity being associated
with small size.
Reproduction.—The Rhabdocoelida present the greatest diversity

in the development of the reproductive system. The Acoela and
Alloeocoela have the simplest arrangement. Scattered testes, often
without a distinct membrane, form the spermatozoa, which in most
cases wander into parenchymatous spaces, but in Monoporus
rubropunctatus and Bothrioplana, into distinct vasa deferentia. In
both groups a protrusible penis opens independently to the exterior,
and may be simply muscular or provided with a chitinous armature.
Two ovaries are present, and the oviducts, if distinct, are
continuations of the ovarian membrane. In most forms a "bursa
seminalis," which receives the spermatozoa of another individual, is
appended to the female genital canal. In many of the Alloeocoela,
however, a portion of the ovary is sterile, and its cells, forming a yolk-
gland, feed the fertile portion, the whole structure being then spoken
of as a germ-yolk-gland. In many others (Monotidae) this sterile part
has become an independent yolk-gland, which communicates by
yolk-ducts with the oviducts. The Acoela form no egg-case, the body
of the parent becoming a bag for the ova, which elaborate their own
food-yolk. The Alloeocoela lay hard-shelled eggs, which are
produced in Bothrioplana and Automolos by the activity and
interaction of reproductive organs, resembling closely those of
certain Triclads.[68]
The Rhabdocoela exhibit every stage in the development of a

complex reproductive system, from the simple ovaries and testes of
a Microstoma or Macrostoma, to the intricate system of ducts and
glands of a Macrorhynchus (Proboscidae), in which there is still
much to be made out. The complications of the copulatory organs
chiefly arise from the way in which the spermatozoa are brought into
contact with a nutritive prostatic fluid, or are formed into
spermatophores; and also from the penial armature, which is often
very complex, and may consist of a curved chitinoid hook or a coiled
loop (Promesostoma), of hooks (Proboscidae), or of an intricate
arrangement of plates (Proxenetes); or the penis may take on a
complex corkscrew-like form (Pseudorhynchus). The (frequently
armed) female genital canal usually possesses a bursa seminalis for
the fertilisation of the eggs, but a receptaculum seminis or
spermatheca may serve for the reception, the bursa, for the
lodgment of the spermatozoa of another individual. The fertilised
ovum is provided with a supply of food-yolk and with a shell, which
may be formed in a special diverticulum, the "uterus." The
development of these organs strains the resources of the animal to
the utmost, and in some Proboscidae the alimentary canal is
squeezed out and disintegrates, in order to make room for them.
A few Mesostoma (M. ehrenbergii, M. productum, M. lingua) produce
two kinds of eggs—thin- and thick-shelled. The latter are laid
throughout the summer, and lie dormant through winter. The young
which hatch in spring out of these "winter" eggs develop rapidly, and
when only 7 to 8 mm. long (i.e. one-third the size of the parent)
already possess functional genital organs; the penis, however, is
rudimentary, and incapable of being used for copulation. Hence it is
probable that this stunted progeny self-fertilise their thin-shelled or
"summer" eggs. After the formation of these eggs the same parent is
said (Schneider[69]) to produce thick-shelled or winter eggs, but
however that may be, the first young which hatch from the thin-
shelled ova are produced in great numbers at a time (April to May)
when food is abundant. These grow rapidly to the full size, and then
having attained maturity, cross-fertilise one another's ova, which
become encased in a thick brown shell; and it is these numerous
"winter" eggs that lie dormant throughout the autumn and winter.
Many Mesostoma, and practically all other Rhabdocoela, however,
produce only thick-shelled eggs, and in all cases it is probable that to
these many species owe their wide distribution, the exact range of
which is, however, unknown, as is also the means of dispersal.
Classification of Rhabdocoelida.
ACOELA.
Family. Genus and British species.
Proporidae Proporus venenosus O. Sch. Plymouth.
Monoporus rubropunctatus O. Sch.
Plymouth.
Haplodiscus.
Aphanostomatidae Aphanostoma diversicolor Oe. Common.
A. elegans Jen. Plymouth.
Convoluta saliens Grff. Plymouth,
Millport.
C. paradoxa Oe. (Fig. 19, B). Common.
C. flavibacillum Jen. Plymouth, Port
Erin, Millport.
Amphicoerus.
Polychoerus.
RHABDOCOELA.
Macrostomatidae Mecynostoma.
Macrostoma hystrix Oe. Stagnant water.
Omalostoma.
Microstomatidae Microstoma lineare Oe. Fresh water.
M. groelandicum Lev. Plymouth, among
Ulva.
Stenostoma (Catenula) lemnae Dug.
Near Cork.
S. leucops O. Sch. Common in fresh
water.
Alaurina claparedii Grff. Skye.
Prorhynchidae Prorhynchus stagnalis M. Sch. In
Devonshire rivers.
Promesostoma marmoratum M. Sch.
Common.
P. ovoideum O. Sch., P. agile Lev.
Plymouth. P. solea O. Sch. Plymouth,
Port Erin. P. lenticulatum O. Sch. Port
Erin.
Mesostomatidae Byrsophlebs graffii Jen. Plymouth,
Millport.
B. intermedia Grff. Millport, Port Erin.
Proxenetes flabellifer Jen. Millport,
Plymouth, Port Erin.
P. cochlear Grff. Millport.
Otomesostoma.
Mesostoma productum Leuck., M. lingua
O. Sch., M. ehrenbergii O. Sch., M.
tetragonum O. F. M. (Fig. 19, A). All at
Cambridge.
M. rostratum Ehr. Widely distributed. M.
viridatum M. Sch. Manchester. M.
robertsonii Grff., M. flavidum Grff. Both
at Millport.
Bothromesostoma personatum O. Sch.
Preston.
Castrada.
Proboscidae Pseudorhynchus bifidus M‘Int. Millport,
St. Andrews, Port Erin.
Acrorhynchus caledonicus Clap.
Generally distributed.
Macrorhynchus naegelii Köll., M. croceus
Fabr. Plymouth, Millport.
M. helgolandicus Metsch. West coast.
Gyrator hermaphroditus Ehrbg. St.
Andrews. Also common in fresh water.
Hyporhynchus armatus Jen. Plymouth,
Port Erin.
H. penicillatus O. Sch. Plymouth.
Vorticidae Schultzia. Provortex balticus M. Sch.
Generally distributed.
P. affinis Jen., P. rubrobacillus Gamb.
Plymouth.
Vortex truncatus Ehrbg. Abundant in
fresh water.
V. armiger O. Sch. Millport (fresh water).
V. schmidtii Grff., V. millportianus Grff.
Millport. V. viridis M. Sch. Generally
distributed.
Jensenia.
Opistoma.
Derostoma unipunctatum Oe. Edinburgh.
Graffilla.
Anoplodium.
Fecampia erythrocephala Giard.
Plymouth, Port Erin.
Solenopharyngidae Solenopharynx.
ALLOEOCOELA.
Plagiostomatidae Acmostoma. Plagiostoma dioicum
Metsch., P. elongatum Gamb., P.
pseudomaculatum Gamb., P. sagitta
Ulj., P. caudatum Lev., P.
siphonophorum O. Sch., P.
ochroleucum Grff. All at Plymouth.
P. sulphureum Grff. Port Erin. P. vittatum
F. and Leuck. Millport, Plymouth, Port
Erin. P. koreni Jen. Plymouth, Millport.
P. girardi O. Sch. Plymouth, Port Erin,
Valencia.
Vorticeros auriculatum O. F. M. (Fig. 19,
C). Port Erin, Plymouth.
V. luteum Grff. Plymouth.
Enterostoma austriacum Grff. Plymouth,
Port Erin.
E. fingalianum Clap. Skye, Plymouth. E.
coecum Grff. Millport.
Allostoma pallidum van Ben. Millport.
Cylindrostoma 4-oculatum Leuck. Skye,
Millport, Plymouth.
C. inerme Hall, C. elongatum Lev.
Plymouth.
Monoophorum striatum Grff. Plymouth.
Bothrioplanidae Bothrioplana.
Bothrioplana sp.? Manchester.
Otoplana.
Monotidae Monotus lineatus O. F. M., M. fuscus Oe.
(Fig. 19, D). Both common littoral
forms.
M. albus Lev. Plymouth.
Automolos unipunctatus Oe. Skye, St.
Andrews, Plymouth.
A. horridus Gamb., A. ophiocephalus O.
Sch. Plymouth.
CHAPTER II
TREMATODA
CHARACTERS OF TREMATODES—HABITS AND STRUCTURE OF

TREMATODA ECTOPARASITICA (MONOGENEA)—LIFE-HISTORIES OF
POLYSTOMUM INTEGERRIMUM, DIPLOZOON PARADOXUM, AND
GYRODACTYLUS ELEGANS—TREMATODA ENDOPARASITICA (DIGENEA)—
OCCURRENCE AND HABITS OF DIGENEA—LIFE-HISTORY OF DISTOMUM
MACROSTOMUM—DISTOMUM HEPATICUM AND ITS EFFECTS—BILHARZIA
HAEMATOBIA—BISEXUAL TREMATODES—TABLE OF HOSTS—
CLASSIFICATION.
From the Turbellaria we now pass on to a consideration of the

second great subdivision of the Platyhelminthes, the Trematodes or
"flukes," of which the "liver-fluke" is the best known, since it is one of
the most dangerous parasites that infest domestic animals.
It has been pointed out that the Polyclads, Triclads, and

Rhabdocoels are carnivorous, and that in each of these groups
sporadic cases of parasitism occur. In other words, when the prey is
much larger than the Turbellarian, the latter tends to become a
parasite, and we can trace the development of the parasitic habit
from the gradual association of Turbellaria with Ascidians,
Crustacea, Molluscs, and Polyzoa merely for protective purposes,
through the adoption, not only of the body of the host for shelter, but
of its flesh for food; though it is only in some Rhabdocoels (Graffilla,
etc.) that there exists a degeneration corresponding to the easier
mode of nutrition and simpler life. The Trematodes,[70] however, are
wholly parasitic, either on the outer surface, the gills, or internal
organs of their host, which is almost always a Vertebrate. Some
Trematodes lodge in the mouth; others wander down the
oesophagus into the stomach or intestine, where they fix themselves
to the mucous membrane. Again, others work their way into the
digestive glands by the ducts, and thus become further and further
removed from the external world, and more adapted to live in the
particular organs of that host in which they best flourish. The most
important result of the adoption of this internal habitat by
endoparasitic Trematodes is, however, seen in their life-history. If a
liver-fluke were to deposit its million or so of eggs in the bile-ducts of
the sheep, and these were to develop in situ, the host could not
withstand the increased drain upon its vital resources, and host and
parasites would perish together. Hence it is clear that the infection of
a second host by Trematodes is highly necessary, whether they be
ectoparasitic, in which case the infection is easily effected, when two
hosts are in contact, by the adult worms, as well as when they are
apart, by free-swimming larvae. In endoparasitic Trematodes it is
brought about by the migration of the young to the outer world, their
entrance into a, usually, Invertebrate host and their asexual
multiplication within it, and the capture and deglutition of this
"intermediate host" by the final Vertebrate one. Within the latter the
immature parasites find out the organ in which their parents
flourished, and here they too grow and attain maturity. The chances
of any one egg of an endoparasitic Trematode producing eventually
an adult are, therefore, far less favourable than in the case of an
ectoparasitic form. In other words, while the former must lay a great
number of small eggs, the latter need only deposit a (comparatively)
few large ones, and this fact has a corresponding influence on the
structure of the genitalia in the two cases. The Digenea, which
employ two hosts in a lifetime, have accordingly a different
generative mechanism from that of the Monogenea. The great need
of the latter is a powerful apparatus for adhering to the surface of the
body of its host; while the adaptations which the endoparasite
requires are, in addition, (1) protection against the solvent action of
the glands of its host, (2) the power of firm adhesion to a smooth
internal surface, and (3) the ability not only to produce a large
quantity of spermatozoa and ova, but in the absence of a fellow-
parasite, to fertilise its own ova; and we find these conditions
abundantly satisfied.
Trematoda monogenea (ectoparasitica).
There are four subdivisions of the Monogenea:—
I. Temnocephalidae, with four to twelve tentacles, and one sucker

posteriorly (Fig. 20).
II. Tristomatidae, with two lateral, anteriorly-placed suckers. Oral

suckers are absent, a large posterior sucker is constant, and is often
armed with hooks (Fig. 22, C).
III. Polystomatidae, with, usually, two oral suckers and a posteriorly-

placed adhesive disc armed with suckers and hooks (Figs. 23 and
24).
IV. Gyrodactylidae (Fig. 29).
Habits and Structure of Ectoparasitic Trematodes.
I. Temnocephalidae.—These interesting forms, of which a good

account has lately been written by Haswell,[71] occur on the surface
(rarely in the branchial chamber) of fresh-water crayfish and crabs in
Australasia, the Malay Archipelago, Madagascar, and Chili. Others
have been found on the carapace of a fresh-water tortoise, and in
the branchial chamber of the mollusc Ampullaria from Brazil. Wood-
Mason discovered others, again, in bottles containing spirit-
specimens of Indian fish. Temnocephala is rarely more than a
quarter of an inch long, and looks like a minute Cephalopod or a
broad flattened Hydra. By the ventral sucker each species adheres
to its own particular host, the tentacles being used as an anterior
sucker for "looping" movements. The food, consisting of
Entomostraca, Rotifera, and Diatoms, is first swallowed whole by the
large pharynx (Fig. 20, ph), which can be protruded through the
ventrally-placed mouth, and is then received into a simple lobed
intestine (d). The skin, especially on the surface of the tentacles, is
provided here and there with patches of cilia borne by the cellular
epidermis,—the only undoubted case of external cilia occurring in an
adult Trematode. Minute rhabdites formed in special gland-cells,
occur plentifully on the tentacles, and are another distinctly
Turbellarian feature. The excretory system is peculiar (Fig. 21). Fine
ducts proceed from the various organs of the body, and open to the
exterior by means of a pair of contractile sacs placed on the dorsal
surface. Each sac is a single cell, and within it not one merely, but
several "flames," or bunches of rhythmically contractile cilia, are
present. These are placed on the course of excessively fine canals,
which perforate the protoplasm of this cell. The terminal branches of
the excretory canals end in branched cells, apparently devoid of
"flames."
Fig. 20.—Temnocephala novae-zealandiae Has. × 10. Ventral view to

show the digestive and reproductive systems. (After Haswell.)
Fig. 21.—The same from the dorsal surface, to show the excretory
system (double line), and the nervous system (black and shaded).
(After Haswell.)
d, Intestine; dln, dorso-lateral nerve; dn, dorsal nerve; ex.o, excretory
aperture on dorsal surface; ex.s, terminal excretory sac; m,
mouth; ov, ovary; ovd, oviduct; ph, pharynx; rh, rhabdites; rh.c,
cells in which the rhabdites are formed; rv, yolk receptacle; sc,
sucker; sh, shell-gland; te, testes; ut, uterus; vg, vagina; vn,
ventral nerve; vs, vesicula seminalis; yd, yolk-duct; yg, yolk-gland.
♀, ♂, common genital pore.
The reproductive system is very similar to that of certain

Rhabdocoels. An armed penis and the female genital duct open into
a genital atrium, and this by a single aperture (♀, ♂, Fig. 20) to the
exterior. The fertilised ovum and yolk are enclosed in a stalked shell
formed in the uterus.
The interest and importance of the Temnocephalidae lies in the fact

that they are almost as much Turbellaria as Trematodes. In habits, in
the character of the skin, the muscular, digestive, and reproductive
systems, they find their nearest allies in Rhabdocoels (Vorticidae).
But in the excretory and nervous systems, the latter composed of
two dorsal, two lateral, and two ventral trunks all connected together
(Fig. 21), they are Tristomid Trematodes. Thus they may fitly connect
an account of the two great groups.
Fig. 22.—A, Nematobothrium filarina van Bened. Nat. size. Two

individuals (a and b) are found together, encysted on the branchial
chamber of the Tunny. B, Udonella caligorum Johns. A Tristomid,
several of which are attached to the ovary of a Copepod
(Caligus), itself a parasite on the gills of the Hake. × 8. C,
Epibdella hippoglossi O. F. M. A Tristomid found on the body of
the Halibut. Nat. size. m, Mouth; ms, lateral suckers; ov, ovary;
ps, posterior sucker; te, testes. (All after P. J. van Beneden.)
II. Tristomatidae and III. Polystomatidae.[72]—The members of these
families are found on the body, or attached to the gills, of fresh-water
and marine fishes. The edible and inedible fish of our coasts have
each their particular ectoparasitic Trematodes; while the Minnows,
Sticklebacks, and Miller's Thumbs of streams and ponds are
attacked by Diplozoon, Gyrodactylus, and other forms. The aquatic
Amphibia also harbour a number. Polystomum integerrimum is
common in the bladder of Frogs, where it leads a practically aquatic
life. Other species of Polystomum inhabit the buccal and nasal
cavities of certain Chelonia, but naturally no terrestrial Vertebrates
are infested externally by these Trematodes. The blood and epithelia
of the host are sucked, and to this end the pharynx has frequently a
chitinous armature to aid in the abrasion or inflammation of the
tissues upon which the parasite feeds. In the case of a Sturgeon
attacked by Nitzschia elongata, a Tristomid, the mouth of the host
appeared to be highly inflamed by these attacks (v. Baer).
Fig. 23.—Octobothrium merlangi Kuhn, from the gills of the whiting, ×

8. int, Intestine; ms, mouth; sc suckers with chitinoid armature; yk
yolk-glands. (After v. Nordmann.)
The suckers, in the two families under consideration, vary in number

and complexity. There is always a powerful apparatus at the hinder
end of the body securing the Trematode firmly to the slimy body or
gills of its host, and, usually in the Polystomatidae, a pair of suckers
at the sides of the mouth accessory to the pumping action of the
pharynx. In Axine, and to a less extent in Octobothrium (Fig. 23), the
suckers are strengthened by a complex hingework of chitinoid bars
or hooks, which serve as insertions for the muscles of the suckers,
and thus increase their efficiency.
The mouth is invariably present just beneath the anterior end of the
body. It leads into a muscular, pumping pharynx (Fig. 24, ph), and
this into a bifurcated intestine which ends blindly. The two openings
of the excretory system lie on the dorsal surface (as in
Temnocephala), and the excretory canals branch through the
substance of the body, ending usually in "flame-cells." The nervous
system is highly developed, and resembles that of Temnocephala
(Fig. 21) in detail. Upon the brain one or even two pairs of eye-spots
are present in the larvae, and may persist throughout life. Tactile
setae occur in Sphyranura, a parasite of the North American
Amphibian Necturus, but a cellular epidermis is apparently rendered
impossible, perhaps from the nature of the mucus in which the body
is bathed, or to the attempts of the host to free itself from these
parasites; and hence an investing membrane is present, which
morphologically is either a modified epithelium, or a cuticle formed
by the glandular secretion of the parenchyma.
Fig. 24.—Polystomum integerrimum Fröh., from the bladder of the

Frog, and seen from the ventral surface. The alimentary canal is
black, the white dots upon it being the yolk-glands, dvi, Ductus
vitello-intestinalis (probably homologous with the Laurer's canal or
"vagina" of Digenea); eh, hooks of sucking disc; int, intestine; m,
mouth; ov, ovary; pe, penis; ph, pharynx; sc, suckers with an
embryonic hook persisting in each; te, testes; ut, uterus with eggs;
vag, left vagina; vd, vas deferens; yd, yolk-duct; yg, yolk-glands; ♂
♀, common genital aperture. (Modified from Zeller.) × 8.
The reproductive organs of the Polystomatidae may be understood

from Figs. 24, 27, and 28. At the point of union of the oviduct (Fig.
28, ovd), the vitelline ducts (yd), and the commencement of the
uterus (ut), a slender duct is given off which opens into the intestine,
and is known as the "vitello-intestinal canal" (Fig. 24, dvi; Fig. 28,
gic). This duct has apparently the same relations as the "canal of
Laurer" of Digenea,[73] except only that the latter opens to the
exterior directly. In connexion with this vitello-intestinal canal a
"vagina" is present, which in Polystomum and most Monogenea is
paired (Fig. 24, vag), in Diplozoon and in one or two other forms,
however, unpaired. The vagina receives the penis of another
individual during copulation (Fig. 26), and does not appear to have
an homologue in the liver-fluke or other Digenea.
Fig. 25.—Eggs of Monogenea. A, Eggs of Encotylabe pagelli v. Ben.-

Hesse; B, eggs of Udonella pollachii v. Ben.-Hesse (with young
forms just hatching out); C, egg of Microcotyle labracis v. Ben.-
Hesse. (After van Beneden and Hesse.) × 50.
Life-Histories of the Polystomatidae.[74]—Polystomum

integerrimum. After the mutual fertilisation of two individuals, the
eggs are laid in the water by the protrusion of the body of the parent
through the urinary aperture of the Frog. About 1000 eggs are laid in
the spring at the rate of 100 a day for ten days. After about six
weeks, the larva (.3 mm. long) hatches out, and swims about freely
by means of bands of large ciliated cells (Fig. 26, A); but if it does
not meet with a tadpole within twenty-four hours, it dies. Should it,
however, encounter one, the larva creeps along it in a looping
fashion until it approaches the opercular spout, or opening of the
branchial chamber, on the left side; into this it darts suddenly, fixes
itself, and throws off its cilia. Here it remains eight or ten weeks,
feeding, increasing in size, and forming the suckers from behind
forwards. At the time of the tadpole's metamorphosis, the young
Polystomum works its way down the pharynx into the oesophagus
and along the intestine, till it reaches and enters the opening of the
bladder. Three years afterwards it becomes mature.
Sometimes, however, Polystomum experiences another fate. The

larvae settling down on the external gills of a young, recently-
hatched tadpole, and obtaining a richer supply of blood than in the
previous case, grow far more rapidly, so that in five weeks they are
mature, although still in the branchial chamber of the tadpole. They
do not then wander into the alimentary canal, but usually, having
discharged their eggs, die at the time of the tadpole's
metamorphosis. Still more interesting, however, is the difference
between the genitalia in these and in the normal Polystomum. In
contrast with the latter, these possess (1) one testis and a
rudimentary penis; and their spermatozoa differ in structure and
shape from those of the normal Polystomum. (2) The vaginae are
absent, a fact connected with the absence of a functional copulatory
organ. (3) In compensation for the loss of these, a duct connects the
single testis and the point of union of oviduct and yolk-ducts, and by
this self-fertilisation occurs. (4) The uterus is absent; the "ootype" or
duct into which the shell-gland opens, communicating directly with
the exterior. In (1) and (4) these aberrant Polystomum resemble P.
ocellatum, from the Tortoise Emys europaea.
Fig. 26.—Polystomum integerrimum. A, Free-swimming larva, seen
from the ventral surface. × 80. B, Two mature individuals in
mutual coition attached to the bladder of a Frog. × 5. (After Zeller.)
d, Intestine; ex.o, excretory pore, dorsal in position, seen here by
transparency; ey, eye-spots; gl, frontal glands; m, mouth; ph,
pharynx; sd, adhering disc; vag, vagina.
Fig. 27.—A, Egg of Diplozoon paradoxum v. Nord., consisting of a shell

enclosing ov, the actual ovum, surrounded by yc, the yolk-cells; B,
larva just hatched (× 125); C, two Diporpa (I and II) about to unite;
D, conjugation in progress but not yet complete. dt, Dorsal papilla;
e, eye; g, intestine; m, mouth; sc, ad-oral sucker; th, spirally-
wound thread attaching the egg to the gill of the Minnow; vs,
ventral sucker; (in D) I, I, one Diporpa, ventral view; II, II, the
other, dorsal view. (After Zeller.)
Fig. 28.—Hinder part of the body of Diplozoon paradoxum. The fusion
of the two Diporpa, where they come into contact, is now
complete. They now cross each other like an X, and are twisted,
so that Diporpa I, in front of the point of fusion, is seen from the
dorsal surface; behind, from the ventral surface; and the reverse
is the case with Diporpa II. The compound animal is seen from the
opposite surface to that shown in Fig. 27, D. The digestive and
excretory organs are omitted. (After Zeller.) I Ant. dorsal, dorsal
surface of Diporpa I, facing the anterior end; I Post. ventral,
ventral surface of Diporpa I, posterior end; and similarly for II Ant.
ventral and II Post. dorsal. d, Piece of the intestine showing
opening of, gic, vitello-intestinal canal; ov, ovary; ovd, point of
union of female genital ducts; sc, suckers; te, testis; ut (in Diporpa
I), "ootype" or chamber into which shell-glands open. This is
continuous with the uterus (ut) of Diporpa I; uto, ventral opening of
uterus; vag, vagina, with vd, vas deferens, permanently inserted
into it through the genital pore; yd, yolk-ducts; yg, yolk-glands.
Diplozoon paradoxum.—The life-history of Diplozoon is unique. For

whereas the larvae of most animals grow up, each into a single
adult, in Diplozoon, of the few larvae that survive the dangers of their
free-swimming existence, only those become mature which
conjugate permanently with another individual. But although there
are thus only half as many adult Diplozoon as there were
conjugating larvae (or Diporpa, as they were called when they were
considered distinct forms), yet the total number of eggs produced is
probably as great as if each larva became individually mature.
Fig. 29.—Gyrodactylus elegans v. Nord., from the fins of the
Stickleback. (After v. Nordmann.) × 125. emb, Embryo.
Diplozoon paradoxum lays its eggs on the gills of the Minnow, which
it frequently infests in great numbers. The ovum divides rapidly at the
expense of the yolk-cells, and in a fortnight a larva (.2 mm. long) of
the shape and complexity shown in Fig. 27, B, hatches out, which,
however, succumbs if it does not meet with a Minnow in five or six
hours. Should it survive, a dorsal papilla, a median ventral sucker,
and a second pair of posterior suckers develop. Thus the Diporpa
stage is attained. These Diporpa may acquire a third and even a
fourth pair of suckers, and continue to live three months, but they
only develop and mature their reproductive organs, if each
conjugates with another Diporpa (Fig. 27, C, D), and this only occurs
in a small percentage of instances. Each grasps the dorsal papilla of
the other by its own ventral sucker, thus undergoing a certain
amount of torsion. Where the two bodies touch, complete fusion
occurs, and, as shown in Fig. 28, the united Diporpa (or Diplozoon,
as the product is now called) decussate, each forming one limb of
the X-shaped Diplozoon, within which the two sets of complex
genitalia develop (Fig. 28).
IV. Gyrodactylidae.—Gyrodactylus (Fig. 29), the structure of which is

in many ways peculiar, produces one large egg at a time. An
embryo, in which the large and smaller hooks of the adhesive disc
can be seen (emb), develops from this egg while still within the body
of the parent, and may give rise to yet another generation within

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Accounting 9th Edition Hoggett

© John Wiley & Sons Australia, Ltd 2015

A system of internal control consists of all the measures used by a business:

© John Wiley & Sons Australia, Ltd 2015 7.2

• Mechanical and electronic devices

© John Wiley & Sons Australia, Ltd 2015 7.3

© John Wiley & Sons Australia, Ltd 2015 7.4

© John Wiley & Sons Australia, Ltd 2015 7.5

Exercise 7.1 Subsidiary ledger and control account

© John Wiley & Sons Australia, Ltd 2015 7.6

Exercise 7.2 Reconciling a control account and a subsidiary ledger

Amended Accounts Receivable Control A/c

© John Wiley & Sons Australia, Ltd 2015 7.7

Date Explanation Post Ref. Debit Credit Balance

© John Wiley & Sons Australia, Ltd 2015 7.8

Exercise 7.3 Reconciling a control account and a subsidiary ledger

A. Missing amount in the control account is $16945 ($22 370 – 5425 )

© John Wiley & Sons Australia, Ltd 2015 7.9

Exercise 7.4 Reconciling a control account and a subsidiary

Bal. b/d Sales returns Discount

Bal. b/d Credit Purchases returns Discount

The following additional information is available:

© John Wiley & Sons Australia, Ltd 2015 7.10

Accounts Payable Control A/c

Accounts Payable – Rainsford Ltd

Moses & Co $7 410

Schedule of Accounts Payable

Aster Suppliers $9 930

© John Wiley & Sons Australia, Ltd 2015 7.11

Rainsford Ltd 9 530

© John Wiley & Sons Australia, Ltd 2015 7.12

Exercise 7.5 Matching transaction types with journals

1. Issue of shares for cash.

1. Cash receipts journal

© John Wiley & Sons Australia, Ltd 2015 7.13

Exercise 7.6 Matching ledger accounts with journals

Cash at Bank 110 Discount Received 450

Accounts Receivable Control 120 Purchases 510

Accounts Payable Control 210 Purchases Allowances 515

Sales 410 Discount Allowed 520

B. Accounts affected by GST would be:

© John Wiley & Sons Australia, Ltd 2015 7.14

Exercise 7.7 Recording transactions in purchases and sales journals

Oct 3 Purchased inventory from P. Forza, $1030, terms 2/15, n/30.

Date Date of Account Terms Post Purchases

Date Inv. No. Account Terms Post Sales

© John Wiley & Sons Australia, Ltd 2015 7.15

Date Date of Account Terms Post Purchases GST Accounts

Date Inv. Account Terms Post Sales GST Accounts

© John Wiley & Sons Australia, Ltd 2015 7.16

Exercise 7.8 Journals, subsidiary ledgers and control accounts

General journal: Talbot returned goods for a credit of $178.

Accounts Receivable Control A/c

Accounts Receivable Subsidiary Ledger

© John Wiley & Sons Australia, Ltd 2015 7.17

Sep. 1 Balance 3 337

© John Wiley & Sons Australia, Ltd 2015 7.18

Sales Journal Page

© John Wiley & Sons Australia, Ltd 2015 7.19

Accounts Receivable Control A/c

Schedule of Accounts Receivable

© John Wiley & Sons Australia, Ltd 2015 7.20

Purchases Journal Page Cash Payments Journal Page 1