SERVICE INDUSTRY ACCOUNTING – GENERAL JOURNAL, …€¦ · Office supplies bought on credit. Refer tax invoice no: 6914 12 Accounts receivable – H Ortico 115.1 4 400 GST collected

17

CHAPTER 3

SERVICE INDUSTRY ACCOUNTING – GENERAL JOURNAL, GENERAL LEDGER, TRIAL BALANCE AND INTRODUCTION TO FINANCIAL REPORTS Solution 3.1 (a) General Journal – B Jones GJ1

Date Particulars Folio Debit Credit20X4 $ $

Nov 1 Bank 50 000 Capital – Jones 50 000 Asset introduced as capital at commencement of business

(b) General Journal – L Buens GJ1


Jan 1 Bank 80 000 Equipment 50 000 Capital – L Buens 130 000 Assets introduced as capital at commencement of business

(c) General Journal – M Moroney GJ1

Date Particulars Folio Debit Credit20X8 $ $ Jul 1 Bank 40 000

Office furniture 70 000 Motor vehicle 24 000 Computer equipment 3 100 Capital – M Moroney 137 100 Assets introduced as capital at commencement of business

(d) General Journal – E Hobsbawm GJ1

Date Particulars Folio Debit Credit20X7 $ $ Feb 1 Land and buildings 200 000

Plant and machinery 150 000 Bank 90 000 Accounts receivable – I Idriess 12 000 Computer equipment 24 000 Capital – E Hobsbawm 476 000 Assets introduced as capital at commencement of business

(e)

Solutions to Accounting – A Practical Approach

18

General Journal – W Murdoch GJ1 Date Particulars Folio Debit Credit20X1 $ $ Oct 1 Office equipment 70 000

Office furniture 20 000 Bank 80 000 Accounts receivable – P Wright 18 000 Motor vehicle 17 000 Accounts payable – H Lawson 8 000 Capital – W Murdoch 197 000 Assets & liabilities introduced at commencement of business

Solution 3.2 (a) General Journal of S Ard GJ1

Date Particulars Folio Debit Credit20X3 $ $ Sep 1 Bank 125 30 000

Capital – S Ard 455 30 000 Cash introduced as capital

2 Office supplies 767 2 500 GST paid 135 250 Accounts payable – W Onder 305.1 2 750 Office supplies bought on credit. Refer tax invoice no: 7767

3 Bank 125 24 200 Fees income 520 22 000 GST collected 315 2 200 Fees received for cash. Refer receipt no: 0001

(b)

General Ledger of S Ard Bank 125

20X3 Sep 1 Capital GJ1 30 000

3 Fees income GJ1 24 200 54 200

GST paid 135

20X3 Sep 2 Accounts payable – W Onder GJ1 250

Accounts Payable – W Onder 305.1 20X3 Sep 2 Office supplies GJ1 2 750

Capital – S Ard 455

20X3 Sep 1 Bank GJ1 30 000

Fees Income 520

20X3 Sep 3 Bank GJ1 22 000

Office Supplies 767

20X3 Sep 2 Accounts payable – W Onder GJ1 2 500

GST collected 315

20X3 Sep 3 Bank GJ1 2 200

Chapter 3: Service Industry Accounting

19

(c) General Ledger of S Ard

Bank Folio no: 125Date Particulars Folio Debit Credit Balance20X3 Sep 1 Capital GJ1 30 000 30 000 Dr

3 Fees income GJ1 24 200 54 200 Dr

GST paid Folio no: 135Date Particulars Folio Debit Credit Balance

20X3 Sep 2 Accounts payable – W Onder GJ1 250 250 Dr

Accounts Payable – W Onder Folio no: 305.1

Date Particulars Folio Debit Credit Balance

20X3 Sep 2 Office supplies GJ1 2 750 2 750 Cr

Capital – S Ard Folio no: 455Date Particulars Folio Debit Credit Balance

20X3 Sep 1 Bank GJ1 30 000 30 000 Cr

Fees Income Folio no: 520Date Particulars Folio Debit Credit Balance

20X3 Sep 3 Bank GJ1 22 000 22 000 Cr

Office Supplies Folio no: 767Date Particulars Folio Debit Credit Balance

20X3 Sep 2 Accounts payable – W Onder GJ1 2 500 2 500 Dr

GST collected Folio no: 315Date Particulars Folio Debit Credit Balance

20X3 Sep 3 Bank GJ1 2 200 2 200 Cr

Solution 3.3 G Gartner

Trial Balance as at 31 January 20X7 Debit Credit $ $

Bank 13 200 GST paid 600 Plant and equipment 18 000 Motor vehicle 20 000 GST collected 1 800 Capital 38 000 Fees income 18 000 Office supplies 6 000 57 800 57 800


20

Solution 3.4 Trial Balance

Debit Credit $ $ $

Land and buildings 10 000 10 000 Investment in National Ltd 3 000 3 000 J Kelso (accounts receivable) 5 000 5 000 Wages 700 700 Fees income 8 000 8 000 Shop fittings 3 900 3 900 Motor vehicle 4 000 4 000 R Cohen (accounts payable) 3 000 3 000 GST paid 600 600 GST collected 4 150 4 150 Telephone 400 400 Repairs and maintenance 500 500 Capital ? 10 480 Loan from A Friend 3 000 3 000 Rent income 460 460 Electricity 320 320 Advertising 670 670 29 090 29 090

Solution 3.5 Complete the following Trial Balance using the figures provided:

Trial Balance of R Smith as at 30 June 20X2

Account Debit Credit $ $ $

Cash at bank 1 000 1 000 GST paid 620 620 Drawings 170 170 Fees income 14 700 14 700 Rent expense 340 340 Interest income 100 100 Plant and equipment 1 100 1 100 Factory machinery 5 480 5 480 Office supplies 8 760 8 760 A Brown (account receivable) 120 120 Petty cash 70 70 Light & power 750 750 S Giles (account payable) 2 400 2 400 Office equipment 1 850 1 850 Office expenses 120 120 Stationery 60 60 Wages 1 180 1 180 Capital (the difference) ? 3 241 Advertising 130 130 GST collected 1 649 1 649 Rates 340 340

Total 22 090 22 090


21

Solution 3.6 Enter the following items in the appropriate column of the Trial Balance:

Account Debit Credit $ $ $

Capital 450 000 450 000 Drawings 65 000 65 000 Fees income 245 500 245 500 Interest income 4 000 4 000 Rent income 18 000 18 000 Petty cash 1 000 1 000 Bank (overdraft) 12 000 12 000 W Morgan (account receivable) 36 400 36 400 Shares in public company 122 000 122 000 GST paid 6 000 6 000 Motor vehicles 44 600 44 600 Office furniture & equipment 17 000 17 000 Land & buildings (the difference) ? 264 500 F Jones (account payable) 5 000 5 000 Mortgage on land & buildings 60 000 60 000 Computer equipment 130 000 130 000 Salaries and wages 91 200 91 200 Photocopying & fax charges 7 100 7 100 Telephone 4 800 4 800 GST collected 18 200 18 200 Building maintenance 23 100 23 100

Total 812 700 812 700

Solution 3.7 (a) General Journal of F Napkins GJ1

Date Particulars Folio Debit Credit 20X4 $ $ Feb 1 Bank 125 15 000

Capital – F Napkins 455 15 000 Cash introduced as capital

2 Stationery 762 1 500 GST paid 135 150 Accounts payable – S Alt 305.1 1 650 Stationery bought on credit. Refer tax invoice no: 1216

4 Stationery 762 2 000 GST paid 135 200 Bank 2 200 Stationery bought for cash. Refer cheque no: 751

5 Bank 125 1925 GST collected 315 175 Fees income 520 1 750 Received cash for fees. Refer cash receipt no: 0001

7 Wages 740 3 000 Bank 125 3 000 Wages paid refer cheque no: 752 Bank 125 20 000 Panda Loan Company 320 20 000 Loan received

(b) General Ledger of F Napkins

Bank 12520X4 20X4 Feb 1 Capital GJ1 15 000 Feb 4 Stationery GJ1 2 200

5 Fees income GJ1 1 925 7 Wages GJ1 3 000 7 Panda Finance Co GJ1 20 000 Balance c/d 31 725

20X4 36 925 36 925 Feb 8 Balance b/d 31 725


22

GST paid 13520X4 Feb 2 Accounts payable – S Alt GJ1 150

4 Bank GJ1 200 350

Accounts payable – S Alt 305.1

20X4 Feb 2 Stationery GJ1 1 650

GST collected 315

20X4 Feb 5 Bank GJ1 175

Panda Loan Co 320

20X4 Feb 7 Bank GJ1 20 000

Capital – F Napkins 455

20X4 Feb 1 Bank GJ1 15 000

Fees Income 520

20X4 Feb 5 Bank GJ1 1 750

Stationery 762

20X4 Feb 2 Accounts payable – S Alt GJ1 1 500

4 Bank GJ1 2 000 3 500

Wages 740

20X4 Feb 7 Bank GJ1 3 000

(c) Trial Balance of F Napkins

as at 7 February 20X4 Particulars Debit Credit

$ $ Bank 31 725 Accounts payable – S Alt 1 650 GST paid 350 GST collected 175 Panda Loan Co 20 000 Capital – F Napkins 15 000 Fees income 1 750 Stationery 3 500 Wages 3 000 $38 575 $38 575


23

Solution 3.8 (a) General Journal of O Zone GJ1

Date Particulars Folio Debit Credit20X6 $ $ Aug 1 Bank 125 16 000

Motor Vehicle 225 25 400 Computers 235 12 000 Capital – O Zone 455 53 400 Assets introduced at commencement

2 Bank 125 6 600 GST collected 315 600 Service revenue 507 6 000 Received cash for services given. Refer cash receipt

no: 0001

7 Office supplies 767 9 500 GST paid 135 950 Accounts payable – J Pot 305.1 10 450 Office supplies bought on credit. Refer tax invoice no: 6914

12 Accounts receivable – H Ortico 115.1 4 400 GST collected 315 400 Service revenue 507 4 000 Sent invoice for services given. Refer tax invoice no: 0001

18 Office supplies 767 2 500 GST paid 135 250 Bank 125 2 750 Office supplies bought for cash. Refer cheque no: 801

22 Accounts payable – J Pot 305.1 770 Office supplies 767 700 GST paid 135 70 Office supplies returned. Refer credit note: 717

24 Bank 125 4 400 Accounts receivable – H Ortico 115.1 4 400 Received payment of account. Refer receipt no: 1002

(b) General Ledger of O Zone

Accounts Receivable – H Ortico 115.120X6 20X6 Aug 12 Service revenue GJ1 4 400 Aug 24 Bank GJ1 4 400

4 400 4 400

Bank 125

20X6 20X6 Aug 1 Capital GJ1 16 000 Aug 18 Office supplies GJ1 2 750

2 Service revenue GJ1 6 600 31 Balance c/d 24 250 24 Accounts receivable – H Ortico GJ1 4 400

27 000 27 000 Sep 1 Balance b/d 24 250

GST paid 135

20X6 20X6 Aug 7 Accounts payable – J Pot GJ1 950 Aug 22 Accounts payable – J Pot GJ1 70

18 Bank GJ1 250 31 Balance c/d 1 130 1 200 1 200 Sep 1 Balance b/d 1 130

Motor Vehicle 22520X6 Aug 1 Capital GJ1 25 400

Computers 235

20X6 Aug 1 Capital GJ1 12 000


24

Accounts Payable – J Pot 305.120X6 20X6 Aug 22 Office supplies GJ1 770 Aug 7 Office supplies GJ1 10 450

31 Balance c/d 9 680 10 450 10 450 Sep 1 Balance b/d 9 680

GST collected 315

20X6 Aug 2 Bank GJ1 600

12 Accounts receivable – H Ortico GJ1 400 1 000

Capital – O Zone 455 20X6 Aug 1 Assets GJ1 53 400

Service Revenue 507

20X6 Aug 2 Bank GJ1 6 000 12 Accounts receivable – H Ortico GJ1 4 000 10 000

Office Supplies 767

20X6 20X6 Aug 7 Accounts payable – J Pot GJ1 9 500 Aug 22 Accounts payable – J Pot GJ1 700

18 Bank GJ1 2 500 31 Balance c/d 11 300 12 000 12 000

Sep 1 Balance b/d 11 300 (c)

General Ledger of O Zone Accounts Receivable – H Ortico Folio no: 115.1

Date Particulars Folio Debit Credit Balance20X6 Aug 12 Service revenue GJ1 4 400 4 400 Dr

24 Bank GJ1 4 400 Nil

Bank Folio no: 125Date Particulars Folio Debit Credit Balance20X6 Aug 1 Capital GJ1 16 000 16 000 Dr

2 Service revenue GJ1 6 600 22 600 Dr 18 Office supplies GJ1 2 750 19 850 Dr 24 Accounts receivable – H Ortico GJ1 4 400 24 250 Dr

GST paid Folio no: 135

Date Particulars Folio Debit Credit Balance20X6 Aug 7 Accounts payable – J Pot GJ1 950 950 Dr

18 Bank GJ1 250 1 200 Dr 22 Accounts payable – J Pot GJ1 70 1 130 Dr

Motor Vehicle Folio no: 225

Date Particulars Folio Debit Credit Balance20X6 Aug 1 Capital GJ1 25 400 25 400 Dr


25

Computers Folio no: 235Date Particulars Folio Debit Credit Balance20X6 Aug 1 Capital GJ1 12 000 12 000 Dr

Accounts Payable – J Pot Folio no: 305.1Date Particulars Folio Debit Credit Balance20X6 Aug 7 Office supplies GJ1 10 450 10 450 Cr

22 Office supplies GJ1 770 9 680 Cr

GST collected Folio no: 315Date Particulars Folio Debit Credit Balance20X6 Aug 2 Bank GJ1 600 600 Cr

12 Accounts receivable – H Ortico GJ1 400 1 000 Cr

Capital – O Zone Folio no: 455Date Particulars Folio Debit Credit Balance20X6 Aug 1 Assets GJ1 53 400 53 400 Cr

Service Revenue Folio no: 507Date Particulars Folio Debit Credit Balance20X6 Aug 2 Bank GJ1 6 000 6 000 Cr

12 Accounts receivable – H Ortico GJ1 4 000 10 000 Cr

Office Supplies Folio no: 767Date Particulars Folio Debit Credit Balance20X6 Aug 7 Accounts payable – J Pot GJ1 9 500 9 500 Dr

18 Bank GJ1 2 500 12 000 Dr 22 Accounts payable – J Pot GJ1 700 11 300 Dr

(d) Trial Balance of O Zone

as at 31 August 20X6 Particulars Debit Credit

$ $ Bank 24 250 GST paid 1 130 Motor vehicle 25 400 Computers 12 000 Accounts payable – J Pot 9 680 GST collected 1 000 Capital – O Zone 53 400 Service revenue 10 000 Office supplies 11 300 $74 080 $74 080


26

Solution 3.9 (a) General Journal of B Baynton GJ1

Date Particulars Folio Debit Credit20X2 $ $ Jan 2 Bank 125 20 000

Capital – B Baynton 455 20 000 Cash introduced as capital

4 Office furniture 230 1 200 GST paid 135 120 Accounts payable – N Stennard 305.1 1 320 Office furniture bought on credit. Refer purchase invoice

no: 6413

7 Accounts receivable – P Woods 115.1 440 GST collected 315 40 Fees income 520 400 Sent invoice for services given. Refer sales invoice no: 0001

8 Advertising 710 90 GST paid 135 9 Bank 125 99 Paid advertising. Refer cheque no: 251

19 Fees income 520 100 GST collected 315 10 Accounts receivable – P Woods 115.1 110 Fees overcharged. Refer credit note no: 101

27 Bank 125 1 540 GST collected 315 140 Fees income 520 1 400 Received cash for fees. Refer cash receipt no: 101

30 Bank 125 330 Accounts receivable – P Woods 115.1 330 Received payment of account. Refer receipt no: 451 Wages 740 1 300 Bank 125 1 300 Payment of wages. Refer cheque no: 252

31 Accounts payable – N Stennard 305.1 550 Office furniture 230 500 GST paid 135 50 Office furniture returned to supplier. Refer credit note no: 28

(b)

Accounts Receivable – P Woods 115.120X2 20X2 Jan 7 Fees income GJ1 440 Jan 28 Fees income GJ1 110

Bank GJ1 330 440 440

Bank 125

20X2 20X2 Jan 2 Capital GJ1 20 000 Jan 8 Advertising GJ1 99

27 Fees income GJ1 1 540 30 Wages GJ1 1 300 30 Accounts receivable – P Woods GJ1 330 31 Balance c/d 20 471

21 870 21 870 Feb 1 Balance b/d 20 471

GST paid 135

20X2 20X2 Jan 4 Accounts payable – N Stennard GJ1 120 Jan 31 Accounts payable – N Stennard GJ1 50

8 Bank GJ1 9 31 Balance c/d 79 129 129

Feb 1 Balance b/d 79


27

Office Furniture 230

20X2 20X2 Jan 4 Accounts payable – N Stennard GJ1 1 200 Jan 31 Accounts payable – N Stennard GJ1 500

Balance c/d 700 1 200 1 200

Feb 1 Balance b/d 700

Accounts Payable – N Stennard 305.1

20X2 20X2 Jan 31 Office furniture GJ1 550 Jan 4 Office furniture GJ1 1 320

Balance c/d 770 1 320 1 320 Feb 1 Balance b/d 770

GST collected 315

20X2 20X2 Jan 19 Accounts receivable – P Woods GJ1 10 Jan 7 Accounts receivable – P Woods GJ1 40

31 Balance c/d 170 27 Bank GJ1 140 180 180 Feb 1 Balance b/d 170

Capital – B Baynton 455

20X2 Jan 2 Bank GJ1 20 000

Fees Income 520

20X2 20X2 Jan 19 Accounts receivable – P Woods GJ1 100 Jan 7 Accounts receivable – P Woods GJ1 400

31 Balance c/d 1 700 27 Bank GJ1 1 400 1 800 1 800 Feb 1 Balance b/d 1 700

Advertising 710

20X2 Jan 8 Bank GJ1 90

Wages 740

20X2 Jan 30 Bank GJ1 1 300

(c) Trial Balance of B Baynton

as at 31 January 20X2 Particulars Debit Credit

$ $ Bank 20 471 GST paid 79 Office furniture 700 Accounts payable – N Stennard 770 GST collected 170 Capital – B Baynton 20 000 Fees income 1 700 Advertising 90 Wages 1 300 22 640 22 640


28

Solution 3.10 (a) General Journal of G Barclay GJ1


Jul 1 Bank 125 6 000 Motor vehicle 225 18 700 Capital – G Barclay 455 24 700 Capital introduced at commencement

3 Accounts receivable – M Cole 115.1 330 GST collected 315 30 Service revenue 507 300 Sent invoice for services given. Refer tax invoice no: 0001

5 Plumber’s supplies 630 150 GST paid 135 15 Bank 125 165 Plumber’s supplies purchased for cash. Refer cheque no: 411

7 Bank 125 770 GST collected 315 70 Service revenue 507 700 Received cash for services given. Refer cash receipts no: 101

12 Advertising 710 270 GST paid 135 27 Accounts payable – Lantern Publishing 305.1 297 Invoice received for advertising – invoice no: 872

15 Bank 125 495 Rent income 510 450 GST collected 315 45 Rent income received. Refer cash receipt no: 102

18 Plant 215 2 140 GST paid 135 214 Accounts payable – CCD Hardware 305.2 2 354 Purchased plant on credit. Refer CCD Hardware tax invoice no: 7198

23 Accounts payable – Lantern Publishing 305.1 77 GST paid 135 7 Advertising 710 70 Credit note no: 104 received for advertising overcharge

28 Accounts payable – CCD Hardware 305.2 88 GST paid 135 8 Plant 215 80 Received credit note no: 386 for overcharge

(b)

Accounts Receivable – M Cole 115.120x4 Jul 3 Service Revenue GJ1 330

Bank 125

20X4 20X4 Jul 1 Capital GJ1 6 000 Jul 5 Plumber’s supplies GJ1 165

7 Service revenue GJ1 770 31 Balance c/d 7 100 15 Rent income GJ1 495

7 265 7 265 Aug 1 Balance b/d 7 100

GST paid 135

20X4 20X4 Jul 5 Bank GJ1 15 July 23 Accounts payable – Lantern

Publishing GJ1 7

12 Accounts payable – Lantern Publishing

GJ1 27 28 Accounts payable – CCD Hardware GJ1 8

18 Accounts payable – CCD Hardware GJ1 214 31 Balance c/d 241 256 256

Aug 1 Balance b/d 241


29

Plant 21520X4 20X4 Jul 18 Accounts payable – CCD Hardware GJ1 2 140 Jul 28 Accounts payable – CCD Hardware GJ1 80

31 Balance c/d 2 060 2 140 2 140

Aug 1 Balance b/d 2 060

Motor Vehicle 22520X4 Jul 1 Capital GJ1 18 700

Accounts Payable – Lantern Publishing 305.1

20X4 20X4 Jul 23 Advertising GJ1 77 Jul 12 Advertising GJ1 297

31 Balance c/d 220 297 297 Aug 1 Balance b/d 220

Accounts Payable – CCD Hardware 305.2

20X4 20X4 Jul 28 Plant GJ1 88 Jul 18 Plant GJ1 2 354

31 Balance C/d 2 266 2 354 2 354 Aug 1 Balance b/d 2 266

GST collected 315

20X4 July 3 Accounts receivable – M Cole GJ1 30 7 Bank GJ1 70 15 Bank GJ1 45 145

Capital – G Barclay 455

20X4 Jul 1 Assets GJ1 24 700

Service Revenue 507 20X4

Jul 3 Accounts receivable – M Cole GJ1 300 7 Bank GJ1 700 1 000

Rent Income 510

20X4 July 15 Bank GJ1 450

Plumber’s Supplies 630

20X4 Jul 5 Bank GJ1 150

Advertising 710

20X4 20X4 Jul 12 Accounts payable – Lantern

Publishing GJ1 270 Jul 23 Accounts payable – Lantern

Publishing GJ1 70 31 Balance c/d 200 270 270

Aug 1 Balance b/d 200


30

(c) Trial Balance of G Barclay as at 31 July 20X4 Particulars Debit Credit

$ $ Accounts receivable – M Cole 330 Bank 7 100 GST paid 241 Plant 2 060 Motor vehicle 18 700 Accounts payable – Lantern Publishing 220 Accounts payable – CCD Hardware 2 266 GST collected 145 Capital – G Barclay 24 700 Service revenue 1 000 Rent income 450 Plumber’s supplies 150 Advertising 200 28 781 28 781

Solution 3.11 (a) General Journal of G Barclay GJ1

Date Particulars Folio Debit Credit20X9 $ $ Sep 1 Bank 125 15 400

Loan from Cardbank Ltd 410 5 000 Capital 455 10 400 Assets & liabilities introduced at commencement of business

Sep 2 Bank 125 20 000 Loan – Cardbank Ltd 410 20 000 Loan received from Cardbank Ltd.

5 Bank 125 770 GST collected 315 70 Fees income 520 700 Received cash for fees. Refer receipt no: 101

7 Motor vehicle 225 24 000 GST paid 135 2 400 Bank 26 400 Motor vehicle purchased for cash. Refer cheque no: 250

12 Office supplies 767 1 200 GST paid 135 120 Accounts payable – Torquay Trading Co 305.1 1 320 Office supplies purchased on credit. Refer Torquay Trading Co tax

invoice no: 5819

20 Petty cash 130 500 Bank 125 500 Establishment of petty cash float. Refer cheque no: 251

22 Advertising 710 120 GST paid 135 12 Accounts payable – Lamp Publications Ltd 305.2 132 Recording advertising account. Refer Lamp Publications Ltd tax

invoice no: 9124

23 Accounts receivable – N Younis 115.1 715 GST collected 315 65 Fees income 520 650 Sent invoice for fees. Refer tax invoice no: 0001

25 Loan – Cardbank Ltd 410 500 Bank 125 500 Paid on account. Refer cheque no: 252

27 Accounts payable – Torquay Trading Co 305.1 220 Office supplies 605 200 GST paid 135 20 Recording credit no: 79 for overcharge

30 Bank 125 150 Accounts receivable – N Younis 115.1 150 Received payment on account. Refer receipt no: 102 Electricity 750 400 GST paid 135 40 Bank 125 440


31

Paid electricity account. Refer cheque no: 253 (b)

Accounts Receivable – N Younis 115.120X9 20X9

Sep 23 Fees income GJ1 715 Sep 30 Bank GJ1 150 Balance c/d 565 715 715

Oct 1 Balance b/d 565

Bank 12520X8 20X8 Sep 1 Capital GJ1 15 400 Sep 12 Motor vehicle GJ1 26 400

2 Loan from Cardbank GJ1 20 000 20 Petty cash GJ1 500 5 Fees income GJ1 770 25 Loan from Cardbank GJ1 500

30 Accounts receivable – N Younis GJ1 150 30 Electricity GJ1 440 Balance c/d 8 480 36 320 36 320

Oct 1 Balance b/d 8 480

Petty Cash 13020X9

Sep 20 Bank GJ1 500

GST paid 13520X9 20X9 Sep 7 Bank GJ1 2 400 Sep 27 Accounts payable – Torquay

Trading Co GJ1 20

12 Accounts payable – Torquay Trading Co

GJ1 120 30 Balance c/d 2 552

22 Accounts payable – Lamp Publications

GJ1 12

30 Bank GJ1 40 2 572 2 572

Oct 1 Balance b/d 2 552

Motor Vehicle 22520X9 Sep 7 Bank GJ1 24 000

Accounts Payable – Torquay Trading Co 305.1

20X9 20X9 Sep 27 Office supplies GJ1 220 Sep 12 Office supplies GJ1 1 320

30 Balance c/d 1 100 1 320 1 320 Oct 1 Balance b/d 1 100

Accounts Payable – Lamp Publications Ltd 305.2

20X9 Sep 22 Advertising GJ1 132

GST collected 315

20X9 Sep 5 Bank GJ1 70 23 Accounts receivable – N Younis GJ1 65 135

Loan from Cardbank Ltd 410

20X9 20X9 Sep 25 Bank GJ1 500 Sep 1 Capital GJ1 5 000

30 Balance c/d 24 500 2 Bank GJ1 20 000 25 000 25 000 Oct 1 Balance b/d 24 500

Capital – G Hughes 455

20X9 Sep 1 Assets & liabilities GJ1 10 400


32

Fees Income 520

20X9 Sep 5 Bank GJ1 700 23 Accounts receivable – N Younis GJ1 650 1 350

Advertising 710

20X9 Sep 22 Accounts Payable – Lamp

Publications Ltd GJ1 120

Electricity 750

20X9 Sep 30 Bank GJ1 400

Office Supplies 76720X9 20X9

Sep 12 Accounts payable – Torquay Trading Co GJ1 1 200

Sep 27 Accounts payable – Torquay Trading Co GJ1 200

30 Balance c/d 1 000 1 200 1 200

Oct 1 Balance b/d 1 000 (c)

Accounts Receivable – N Younis Folio no: 115.1Date Particulars Folio Debit Credit Balance20X9 Sep 23 Fees income GJ1 715 715 Dr

30 Bank GJ1 150 565 Dr

Bank Folio no: 125Date Particulars Folio Debit Credit Balance20X9 Sep 1 Capital GJ1 15 400 15 400 Dr

2 Loan from Cardbank GJ1 20 000 35 400 Dr 5 Fees income GJ1 770 36 170 Dr

12 Motor vehicle GJ1 26 400 9 770 Dr 20 Petty cash GJ1 500 9 270 Dr 25 Loan from Cardbank GJ1 500 8 770 Dr 30 Accounts receivable – N Younis GJ1 150 8 920 Dr

Electricity GJ1 440 8 480 Dr

Petty Cash Folio no: 130Date Particulars Folio Debit Credit Balance20X9 Sep 20 Bank GJ1 500 500 Dr

GST paid Folio no: 135Date Particulars Folio Debit Credit Balance20X9

Sep 7 Bank GJ1 2 400 2 400 Dr 12 Accounts payable – Torquay Trading Co GJ1 120 2 520 Dr 22 Accounts payable – Lamp Publications GJ1 12 2 532 Dr 27 Accounts payable – Torquay Trading Co GJ1 20 2 512 Dr 30 Bank GJ1 40 2 552 Dr


33

Motor Vehicle Folio no: 225Date Particulars Folio Debit Credit Balance20X9 Sep 7 Bank GJ1 24 000 24 000 Dr

Accounts Payable – Torquay Trading Co Folio no: 305.1Date Particulars Folio Debit Credit Balance20X9 Sep 12 Office supplies GJ1 1 320 1 320 Cr

27 Office supplies GJ1 220 1 100 Cr

Accounts Payable – Lamp Publications Ltd Folio no: 305.2Date Particulars Folio Debit Credit Balance20X9 Sep 22 Advertising GJ1 132 132 Cr

GST collected Folio no: 315Date Particulars Folio Debit Credit Balance20X9 Sep 5 Bank GJ1 70 70 Cr

23 Accounts receivable – N Younis GJ1 65 135 Cr

Loan from Cardbank Ltd Folio no: 410Date Particulars Folio Debit Credit Balance20X9 Sep 1 Capital GJ1 5 000 5 000 Cr

2 Bank GJ1 20 000 25 000 Cr 25 Bank GJ1 500 24 500 Cr

Capital – G Hughes Folio no: 455

Date Particulars Folio Debit Credit Balance20X9 Sep 1 Assets & liabilities GJ1 10 400 10 400 Cr

Fees Income Folio no: 520

Date Particulars Folio Debit Credit Balance20X9 Sep 5 Bank GJ1 700 700 Cr

23 Accounts receivable – N Younis GJ1 650 1 350 Cr

Advertising Folio no: 710Date Particulars Folio Debit Credit Balance20X9 Sep 22 Accounts payable – Lamp Publications GJ1 120 120 Dr

Electricity Folio no: 750

Date Particulars Folio Debit Credit Balance20X9 Sep 30 Bank GJ1 400 400 Dr

Office Supplies Folio no: 767

Date Particulars Folio Debit Credit Balance20X9 Sep 12 Accounts payable – Torquay Trading Co GJ1 1 200 1 200 Dr

27 Accounts payable – Torquay Trading Co GJ1 200 1 000 Dr


34

(d) Trial Balance of G Hughes as at 30 September 20X9

Particulars Debit Credit $ $

Accounts receivable – N Younis 565 Bank 8 480 Petty cash 500 GST paid 2 552 Motor vehicle 24 000 Accounts payable – Torquay Trading Co 1 100 Accounts payable – Lamp Publications Ltd 132 GST collected 135 Loan from Cardbank Ltd 24 500 Capital – G Hughes 10 400 Fees income 1 350 Advertising 120 Electricity 400 Office supplies 1 000 37 617 37 617

Solution 3.12 (a) General Journal of H Ma

Date Particulars Folio Debit Credit20X4 $ $ April 1 Motor vehicle 225 30 000

Bank 125 10 000 Capital 455 40 000 Assets introduced at commencement

3 Accounts receivable – T Poulos 115.1 616 Courier fees income 520 560 GST collected 315 56 Invoice no: 421 sent to T Poulos

4 Motor vehicle expenses 775 240 GST paid 135 24 Accounts payable – D Brooks 305.1 264 Invoice 889 received from D Brooks

11 Courier fees income 520 200 GST collected 315 20 Accounts receivable – T Poulos 115.1 220 Credit note no: 188 sent to T Poulos

15 Accounts payable – D Brooks 305.1 66 Motor vehicle expenses 775 60

GST paid 135 6 Received credit note no: 34 from D Brooks

16 Bank 125 396 Accounts receivable – T Poulos 115.1 396 Refer receipt no: 201 for account paid in full

17 Advertising 710 390 GST paid 135 39 Accounts payable – Daily Planet 305.2 429 Invoice no: 6819 received for advertising Accounts receivable – P Allan 115.2 1 540 Courier fees income 520 1 400 GST collected 315 140 Invoice no: 422 sent to P Allan

20 Accounts payable – Daily Planet 305.2 77 Advertising 710 70 GST paid 135 7 Credit note no: 1318 received for overcharge

21 Motor vehicle expenses 775 300 GST paid 135 30 Bank 125 330 Paid cheque no: 2964 for motor vehicle expenses

23 Accounts receivable – P Allan 115.2 3 960 Courier fees income 520 3 600 GST collected 315 360


35

Invoice no: 423 sent to P Allan 27 Electricity 750 330

GST paid 135 33 Accounts payable – Freetown Power Supply 305.3 363 Invoice no: 13174 received for electricity

(b) General Ledger of H Ma

Accounts Receivable – T Poulos Folio no: 115.120X4 20X4 April 3 Courier fees income GJ1 616 April 11 Courier fees income GJ1 220

16 Bank GJ1 396 616 616

Accounts Receivable – P Allan Folio no: 115.2

20X4 April 17 Courier fees income GJ1 1 540

23 Courier fees income GJ1 3 960 5 500

Bank Folio no: 125

20X4 20X4 April 1 Capital GJ1 10 000 April 21 Motor vehicle expenses GJ1 330

16 Accounts receivable – T Poulos GJ1 396 30 Balance c/d 10 066 10 396 10 396

May 1 Balance b/d 10 066

GST paid Folio no: 13520X4 20X4 April 4 Accounts payable – D Brooks GJ1 24 April 15 Accounts payable – D Brooks GJ1 6

17 Accounts payable – Daily Planet GJ1 39 20 Accounts payable – Daily Planet GJ1 7 21 Bank GJ1 30 30 Balance c/d 113 27 Accounts payable – Freetown

Power Supply GJ1 33

126 126 May 1 Balance b/d 113 May 1 Balance b/d

Motor Vehicle Folio no: 22520X4 April 1 Capital GJ1 30 000

Accounts Payable – D Brooks Folio no: 305.120X4 20X4 April 15 Motor vehicle expenses GJ1 66 April 4 Motor vehicle expenses GJ1 264

30 Balance c/d 198 264 264 May 1 Balance b/d 198

Accounts Payable – Daily Planet Folio no: 305.2

20X4 20X4 April 20 Advertising GJ1 77 April 17 Advertising GJ1 429

30 Balance c/d 352 429 429 May 1 Balance b/d 352

Accounts Payable – Freetown Power Supply Folio no: 305.3

20X4 April 27 Electricity GJ1 363

GST collected Folio no: 315

20X4 20X4 April 11 Accounts receivable – T Poulos GJ1 20 April 3 Accounts receivable – T Poulos GJ1 56

30 Balance c/d 536 17 Accounts receivable – P Allan GJ1 140 23 Accounts receivable – P Allan GJ1 360 556 556 May 1 Balance b/d 536


36

Capital Folio no: 455

20X4 April 1 Assets GJ1 40 000

Courier fees income Folio no: 520

20X4 20X4 April 11 Accounts receivable – T Poulos GJ1 200 April 3 Accounts receivable – T Poulos GJ1 560

30 Balance c/d 5 360 17 Accounts receivable – P Allan GJ1 1 400 23 Accounts receivable – P Allan GJ1 3 600 5 560 5 560 May 1 Balance b/d 5 360

Advertising Folio no: 710

20X4 20X4 April 17 Accounts payable – Daily Planet GJ1 390 April 20 Accounts payable – Daily Planet GJ1 70

30 Balance c/d 320 390 390

May 1 Balance b/d 320

Electricity Folio no: 75020X4

April 27 Accounts payable – Freetown Power Supply

GJ1 330

Motor Vehicle Expenses Folio no: 775

20X4 20X4 April 4 Accounts payable – D Brooks GJ1 240 April 15 Accounts payable – D Brooks GJ1 60

21 Bank GJ1 300 30 Balance c/d 480 540 540

May 1 Balance b/d 480 (c)

H Ma Trial Balance as at 30 April 20X4

Folio Debit Credit Accounts receivable – P Allan 115.2 5 500 Bank 125 10 066 GST paid 135 113 Motor vehicle 225 30 000 Accounts payable – D Brooks 305.1 198 Accounts payable – Daily Planet 305.2 352 Accounts payable – Freetown Power Supply 305.3 363 GST collected 315 536 Capital 455 40 000 Courier fees income 520 5 360 Advertising 710 320 Electricity 750 330 Motor vehicle expenses 775 480

46 809 46 809


37

Solution 3.13 (a) General Journal of A Gale GJ1

Date Particulars Folio Debit Credit20X6 $ $ June 1 Bank 125 10 000

Motor vehicle 225 45 000 Plant & equipment 220 90 000 Loan from Finance Co 410 30 000 Capital 455 115 000 Assets & liabilities introduced Accounts receivable – F Conway 115.1 198 c 507 180 GST collected 315 18 Recording sale on tax invoice no: 001

2 Rent 745 2 000 GST paid 135 200 Accounts payable – R Stubbs 305.1 2 200 Rent of property. Refer tax invoice no: 386

4 Service income 507 30 GST collecetd account 315 3 Accounts receivable – F Conway 115.1 33 Overcharge invoice no: 001. See credit note no: 001

6 Bank 125 132 Service income 507 120 GST collected 315 12 Cash sale. Refer receipt no: 101

7 Repairs & maintenance 765 320 GST paid 135 32 Bank 125 352 Cash paid for repairs. Refer cheque no: 601

9 General expenses 772 440 GST paid 135 44 Accounts payable – C Richards 305.2 484 Purchase of laundry material. See tax invoice no: 762

12 Office furniture 230 900 Capital 455 900 Additional capital introduced. See voucher no: 1

14 Accounts payable – C Richards 305.2 88 General expenses 772 80 GST paid 135 8 Adjusting overcharge. Refer credit note no: 122

18 Advertising 710 520 GST paid 135 52 Accounts payable – PBL Radio 305.3 572 Advertising account. See tax invoice no: 909

21 Accounts payable – R Stubbs 305.1 2 200 Bank 125 2 200 Payment of account. See cheque no: 602

24 Accounts receivable – Apex Hotels 115.2 3 410 Service income 507 3 100

GST collected 315 310 Recording sale on tax invoice no: 002

27 Plant & equipment 220 1 640 GST paid 135 164 Accounts payable – E Dawes 305.4 1 804 Purchased washing machine. See tax invoice no: 1649

(b) General Ledger of A Gale

Accounts Receivable – F Conway Folio no: 115.120X6 20X6 June 1 Service income GJ1 198 June 4 Service income GJ1 33

30 Balance c/d 165 198 198

July 1 Balance b/d 165


38

Accounts Receivable – Apex Hotels Folio no: 115.2

20X6 June 24 Service income GJ1 3 410

Bank Folio no: 12520X6 20X6 June 1 Capital GJ1 10 000 June 7 Repairs & maintenance GJ1 352

6 Service income GJ1 132 21 Accounts payable – R Stubbs GJ1 2 200 30 Balance c/d 7 580 10 132 10 132

July 1 Balance b/d 7 580

GST paid Folio no: 13520X6 20X6 June 2 Accounts payable – R Stubbs GJ1 200 June 14 Accounts payable – C Richards GJ1 8

7 Bank GJ1 32 30 Balance c/d 484 9 Accounts payable – C Richards GJ1 44

18 Accounts payable – PBL Radio GJ1 52 27 Accounts payable – E Dawes GJ1 164

492 492 July 1 Balance b/d 484

Plant and Equipment Folio no: 220

20X6 June 1 Capital GJ1 90 000

27 Accounts payable – E Dawes GJ1 1 640 91 640

Motor Vehicles Folio no: 225


Office Furniture Folio no: 23020X6 June 1 Capital GJ1 900

Accounts Payable – R Stubbs Folio no: 305.120X6 20X6

June 21 Bank GJ1 2 200 June 20 Rent paid GJ1 2 200

Accounts Payable – C Richards Folio no: 305.220X6 20X6

June 14 General expenses GJ1 88 June 9 General expenses GJ1 484 30 Balance c/d 396

484 484 July 1 Balance b/d 396

Accounts Payable – PBL Radio Folio no: 305.3

20X6 June 18 Advertising GJ1 572

Accounts Payable – E Dawes Folio no: 305.4 20X6

June 27 Plant & equipment GJ1 1 804

GST collected Folio no: 315

20X6 20X6 June 4 Accounts receivable – F Conway GJ1 3 June 1 Accounts receivable – F Conway GJ1 18

30 Balance c/d 337 6 Bank GJ1 12 24 Accounts receivable – Apex GJ1 310


39

Hotels 340 340 July 1 Balance b/d 337

Loan from Finance Co Folio no: 410


Capital Folio no: 455

20X6 June 1 Assets & liabilities GJ1 115 000 12 Office furniture GJ1 900 115 900

Service income Folio no: 507

20X6 20X6 June 4 Accounts receivable – F Conway GJ1 30 June 1 Accounts receivable – F Conway GJ1 180

30 Balance c/d 3 370 6 Bank GJ1 120 21 Accounts receivable – Apex

Hotels GJ1 3 100

3 400 3 400 July 1 Balance b/d 3 370

Advertising Folio no: 710

20X6 June 18 Accounts payable – PBL Radio GJ1 520

Rent Paid Folio no: 745

20X6 June 2 Accounts payable – E Stubbs GJ1 2 000

Repairs & Maintenance Folio no: 765

20X6 June 7 Bank GJ1 320

General Expenses Folio no: 772

20X6 20X6 June 9 Accounts payable – C Richards GJ1 440 June 14 Accounts payable – C Richards GJ1 80

30 Balance c/d 360 440 440

July 1 Balance b/d 360 (c)

A Gale Trial balance as at 30 June 20X6

Folio Debit CreditAccounts receivable – F Conway 115.1 165 Accounts receivable – Apex Hotels 115.2 3 410 Bank 125 7 580 GST paid 135 484 Plant & equipment 220 91 640 Motor vehicles 225 45 000 Office furniture 230 900 Accounts payable – C Richards 305.2 396 Accounts payable – PBL Radio 305.3 572 Accounts payable – E Dawes 305.4 1 804 GST collected 315 337 Loan from Finance Co 410 30 000 Capital 455 115 900 Service income 507 3 370 Advertising 710 520 Rent paid 745 2 000 Repairs & maintenance 765 320 General expenses 772 360 152 379 152 379


40

Solution 3.14 Debit Credit $ $

Cash at bank 2 600 Inventory 14 000 Accounts payable – J Smith 2 100* Motor vehicle 28 000 Loan from Candid Finance Co 10 000 GST paid 500 Capital 33 000 45 100 45 100

* Account with error

Solution 3.15 Trial Balance of T Nguyen as at 7 September 20X7

Debit Credit $ $

Plant 60 000 Bank 44 000 Accounts payable – L Paper 5 000 Capital – T Nguyen 60 000 Fees income 44 000 Office supplies 5 000 109 000 109 000

Solution 3.16 Sara Bos Trial Balance as at 7 February 20X4

Debit Credit $ $

Bank 18 000 Accounts receivable – P Raise 6 500 Accounts payable – C Cumber 13 000 Capital Sara Bos 18 000 Fees income 6 500* Office supplies 13 000 37 500 37 500

* Account containing error

Solution 3.17 Debit Credit $ $

Bank overdraft 5 450* Capital 80 515* Fees income 120 300* Premises 125 500* Office equipment 13 390 Interest expense 5 995* Plumber’s supplies 7 820 Mortgage on premises 37 750 Donations 390 Delivery expenses 950 Electricity 450 Salaries & wages 20 800 Rent income 12 000* Shares in PMA Ltd 88 000 GST collected 9 680 Petty cash 100 Accounts receivable (A Brown) 3 500* Accounts payable (D Jones) 1 200 266 895 266 895

* Accounts with errors


41

Solution 3.18 (a)

W Mason Income Statement

for year ended 30 June 20X7 Revenue Fees income 29 000 Expenses Advertising 1 800 Electricity 590 Wages 8 200 10 590 Net Profit 18 410

(b) W Mason

Balance sheet as at 30 June 20X7

Assets Liabilities Accounts receivable – L Thompson 900 Accounts payable – W Knox 1 800 Bank 19 000 GST collected 4 200 GST paid 1 400 Loan from Shark Arm Ltd 14 000 Motor vehicle 27 000 20 000 48 300 Owners’ Equity Capital 9 890 Net profit 18 410 28 300 48 300 48 300 (c)

W Mason Balance Sheet

as at 30 June 20X7 Assets $ $ Accounts receivable – L Thompson 900 Bank 19 000 GST paid 1 400 Motor vehicle 27 000 Total Assets 48 300

Less Liabilities Accounts payable – W Knox 1 800 GST collected 4 200 Loan from Shark Arm Ltd 14 000 Total Liabilities 20 000 Net assets 28 300 Owners’ Equity Capital 9 890 Net profit 18 410 28 300

Solution 3.19 (a)

Souvla & Sons Surveyors Income Statement

for year ended 30 June 20X8 Revenue Fees income 197 000 Interest income 2 000 199 000 Expenses Insurance 1 100 Salaries & wages 38 000 Telephone 1 700 Postage 660 Motor vehicle expenses 25 800 67 260 Net Profit 131 740


42

(b) Souvla & Sons Surveyors

Balance Sheet as at 30 June 20X8

Assets Liabilities Accounts receivable – G Stains 1 760 Accounts payable – D Note 940 Bank 8 600 GST collected 5 820 Petty cash 500 6 760 GST paid 2 800 Owners’ Equity Motor vehicles 88 000 Capital 7 160 Plant & equipment 24 000 Net profit 131 740 Cash on fixed deposit 20 000 138 900 145 660 145 660 145 660 (c)

Souvla & Sons Surveyors Balance Sheet

as at 30 June 20X8 Assets $ $ Accounts receivable – G Stains 1 760 Bank 8 600 Petty cash 500 GST paid 2 800 Motor vehicles 88 000 Plant & equipment 24 000 Cash on fixed deposit 20 000 Total Assets 145 660

Less Liabilities Accounts payable – D Mote 940 GST collected 5 820 Total liabilities 6 760 Net Assets 138 900 Owners’ Equity Capital 7 160 Net Profit 131 740 138 900

Solution 3.20 (a)

I Cleanem Income Statement

for year ended 30 June 20X7 Revenue $ $ Sales 89 000 Commission income 1 300 90 300 Expenses Advertising 3 800 Salaries & wages 58 000 Light & power 16 200 Telephone 3 100 Repairs & maintenance 3 900 General expenses 4 100 Motor vehicle expenses 2 700 Interest expense 3 600 95 400 Net Loss (5 100)

(b) I Cleanem

Balance sheet as at 30 June 20X7

Assets $ $ Accounts receivable – Gosport Hotel 1 620 Premises 120 000 Plant & equipment 40 000 Motor vehicle 26 000 Total Assets 187 620

Less Liabilities Accounts payable – Gilbert Chemicals 4 000 GST collected 5 600


43

Loan from Snide Finance Company 30 000 Total Liabilities 39 600 Net Assets 148 020 Owners’ Equity Capital 153 120 Net Loss (5 100) 148 020

Documents

SERVICE INDUSTRY ACCOUNTING – GENERAL JOURNAL, …€¦ · Office supplies bought on credit. Refer tax invoice no: 6914 12 Accounts receivable – H Ortico 115.1 4 400 GST collected