SUBSIDIARY LEDGERS – ACCOUNTS RECEIVABLE (DEBTORS) … · Chapter 7: Subsidiary Ledgers – Accounts Receivable (Debtors) and Accounts Payable (Creditors) 109 Capital Folio No 455

107

CHAPTER 7

SUBSIDIARY LEDGERS – ACCOUNTS RECEIVABLE (DEBTORS) AND ACCOUNTS PAYABLE (CREDITORS) Solution 7.1 (a) (i) General Journal of A Langer GJ1

Date Particulars Folio Debit Credit 20X5 $ $

Oct 1 Inventory 110 66 000 Capital 455 66 000 Asset introduced as capital on commencement. Accounts receivable control 115 946 I Herron 946 115.1 Sales 505 860 GST collected 315 86 Goods sold on credit Cost of goods sold 600 430 Inventory 110 430 Cost of goods sold

3 Accounts receivable control 115 671 M Beattie 671 115.2

Sales 505 610 GST collected 315 61 Goods sold on credit Cost of goods sold 600 300 Inventory 110 300 Cost of goods sold

5 Bank 125 1 188 Sales 505 1 080 GST collected 315 108 Goods sold for cash Cost of goods sold 600 500

Inventory 110 500 Cost of goods sold

6 Accounts receivable control 115 1 023 N Goldthorp 1 023 115.3 Sales 505 930 GST collected 315 93 Goods sold on credit Cost of goods sold 600 465 Inventory 110 465 Cost of goods sold

9 Sales 505 110 GST collected 315 11 Accounts receivable control 115 121 I Herron 121 115.1 Return of goods sold on credit Inventory 110 50 Cost of goods sold 600 50 Cost of goods returned

Solutions to Accounting – A Practical Approach

108

Date Particulars Folio Debit Credit 12 Bank 125 792

Discount allowed 785 30 GST collected 315 3 Accounts receivable control 115 825 I Herron 825 115.1 Payment of account

18 Sales 505 80 GST collected 315 8 Accounts receivable control 115 88 N Goldthorp 88 115.3 Return of goods sold on credit Inventory 110 40 Cost of goods sold 600 40 Cost of goods returned

21 Accounts receivable control 115 858 I Herron 858 115.1

Sales 505 780 GST collected 315 78 Goods sold on credit Cost of goods sold 600 380 Inventory 110 380 Cost of goods sold

29 Bank 125 450 Accounts receivable control 115 450 M Beattie 450 115.2 Part payment of account

(ii) General Ledger of A Langer

Inventory Folio No 11020X5 20X5

Oct 1 Capital GJ1 66 000 Oct 1 Cost of goods sold GJ1 430 9 Cost of goods sold GJ1 50 3 Cost of goods sold GJ1 300

18 Cost of goods sold GJ1 40 5 Cost of goods sold GJ1 500 6 Cost of goods sold GJ1 465 21 Cost of goods sold GJ1 380 31 Balance c/d 64 015 66 090 66 090

Nov 1 Balance b/d 64 015 Accounts Receivable Control Folio No 115

20X5 20X5 Oct 1 Sales GJ1 946 Oct 9 Sales GJ1 121

3 Sales GJ1 671 12 Bank GJ1 825 6 Sales GJ1 1 023 18 Sales GJ1 88

21 Sales GJ1 858 29 Bank GJ1 450 31 Balance c/d 2 014 3 498 3 498

Nov 1 Balance b/d 2 014 Bank Folio No 125

20X5 Oct 5 Sales GJ1 1 188

12 Accounts receivable control GJ1 792 29 Accounts receivable control GJ1 450

2 430 GST Collected Folio No 315

20X5 20X5 Oct 9 Accounts receivable control GJ1 11 Oct 1 Accounts receivable control GJ1 86

12 Accounts receivable control GJ1 3 3 Accounts receivable control GJ1 61 18 Accounts receivable control GJ1 8 5 Bank GJ1 108 31 Balance c/d 404 6 Accounts receivable control GJ1 93

21 Accounts receivable control GJ1 78 426 426 Nov 1 Balance b/d 404

Chapter 7: Subsidiary Ledgers – Accounts Receivable (Debtors) and Accounts Payable (Creditors)

109

Capital Folio No 455 20X5

Oct 1 Inventory GJ1 66 000 Sales Folio No 505

20X5 20X5 Oct 9 Accounts receivable control GJ1 110 Oct 1 Accounts receivable control GJ1 860

18 Accounts receivable control GJ1 80 3 Accounts receivable control GJ1 610 31 Balance c/d 4 070 5 Bank GJ1 1 080

6 Accounts receivable control GJ1 930 21 Accounts receivable control GJ1 780 4 260 4 260 Nov 1 Balance b/d 4 070

Cost of Goods Sold Folio No 600

20X5 20X5 Oct 1 Inventory GJ1 430 Oct 9 Inventory GJ1 50

3 Inventory GJ1 300 18 Inventory GJ1 40 5 Inventory GJ1 500 31 Balance c/d 1 985 6 Inventory GJ1 465

21 Inventory GJ1 380 2 075 2 075

Nov 1 Balance b/d 1 985 Discount Allowed Folio No 785

20X5 Oct 12 Accounts receivable control GJ1 30

(iii) A Langer

Accounts Receivable Subsidiary Ledger

I Herron Folio 115.1 Date Particulars Folio Debit Credit Balance20X5

Oct 1 Sales GJ1 946 946 DR 9 Sales – returns GJ1 121 825 DR

12 Bank GJ1 825 Nil 21 Sales GJ1 858 858 DR

M Beattie Folio 115.2 Date Particulars Folio Debit Credit Balance20X5

Oct 3 Sales GJ1 671 671 DR 29 Bank GJ1 450 221 DR

N Goldthorp Folio 115.3 Date Particulars Folio Debit Credit Balance20X5

Oct 6 Sales GJ1 1 023 1 023 DR 18 Sales (returns) GJ1 88 935 DR

(iv)

A Langer Trial Balance as at 31 October 20X5 Dr Cr $ $

Inventory 64 015 Accounts receivable control 2 014 Bank 2 430 GST collected 404 Capital 66 000 Sales 4 070 Cost of goods sold 1 985 Discount allowed 30 70 474 70 474


110

(v) Schedule of Accounts Receivable Balances

I Herron 858 M Beattie 221 N Goldthorp 935 Balance as per accounts receivable control 2 014

(b) (i) General Journal of A Langer GJ1

Date Particulars Folio Debit Credit 20X5 $ $ Oct 1 Inventory 110 66 000

Capital 455 66 000 Assets introduced as capital on commencement.

Sales Journal of A Langer SJ1

Date

Cost of Goods Sold

Accounts Receivable/Particulars Folio A/cs Receivable Sales

GST collected

20X5 $ $ $ Oct 1 430 I Herron 115.1 946 860 86

3 300 M Beattie 115.2 671 610 61 6 465 N Goldthorp 115.3 1 023 930 93 9 (50) I Herron (returns) 115.1 (121) (110) (11)

18 (40) N Goldthorp (returns) 115.3 (88) (80) (8) 21 380 I Herron 115.1 858 780 78

1 485 3 289 2 990 299 600/110 115 505 315

Cash Receipts Journal of A Langer Folio No: CR1

Date Cost of

Goods Sold Drawer and/or

particulars Folio BankAccounts

ReceivableDiscount Allowed Sales

GST collected

20X5 $ $ $ $ $Oct 3 500 Sales 1 188 1 080 108

12 I Herron 115.1 792 825 (30) (3)29 M Beattie 115.2 450 450

500 2 430 1 275 (30) 1 080 105

600/110 125 115 785 505 315 (ii)

Inventory Folio No 11020X5 20X5 Oct 1 Capital GJ1 66 000 Oct 31 Cost of goods sold SJ1 1 485

Cost of goods sold CR1 500 Balance c/d 64 015 66 000 66 000

Nov 1 Balance b/d 64 015

Accounts Receivable Control Folio No 11520X5 20X5

Oct 31 Sales SJ1 3 289 Oct 31 Bank CR1 1 275 Balance c/d 2 014 3 289 3 289

Nov 1 Balance b/d 2 014

Bank Folio No 12520X5

Oct 31 Receipts CR1 2 430

GST Collected Folio No 315 20X5

Oct 31 Accounts receivable SJ1 299 Bank CR1 105 404


111

Capital Folio No 455 20X5

Oct 1 Inventory GJ1 66 000

Sales Folio No 505 20X5 Oct 31 Accounts receivable SJ1 2 990 Bank CR1 1 080

4 070

Cost of Goods Sold Folio No 60020X5

Oct 31 Inventory SJ1 1 485 Inventory CR1 500 1 985

Discount Allowed Folio No 78520X5

Oct 31 Bank CR1 30 (iii) A Langer

Accounts Receivable Subsidiary Ledger

I Herron Folio 115.1 Date Particulars Folio Debit Credit Balance20X5

Oct 1 Sales SJ1 946 946 DR 9 Sales – returns SJ1 121 825 DR

12 Bank CR1 825 Nil 21 Sales SJ1 858 858 DR

M Beattie Folio 115.2 Date Particulars Folio Debit Credit Balance20X5

Oct 3 Sales SJ1 671 671 DR 29 Bank CR1 450 221 DR

N Goldthorp Folio 115.3 Date Particulars Folio Debit Credit Balance20X5

Oct 6 Sales SJ1 1 023 1 023 DR 18 Sales (returns) SJ1 88 935 DR

(iv)

A Langer Trial Balance as at October 31 20X5 Dr Cr $ $

Inventory 64 015 Accounts receivable control 2 014 Bank 2 430 GST collected 404 Capital 66 000 Sales 4 070 Cost of goods sold 1 985 Discount allowed 30 70 474 70 474


I Herron 858 M Beattie 221 N Goldthorp 935 Balance as per accounts receivable control 2 014


112

Solution 7.2 (a) (i) General Journal of C Anderson GJ1

Date Particulars Folio Debit Credit 20X0 $ $

July 1 Inventory 110 42 000 Bank 125 7 000 GST paid 135 6 500 Plant & machinery 215 23 000 Capital 455 78 500 Assets introduced at commencement Inventory 110 1 760 GST paid 135 176 Accounts payable control 305 1 936 J Gibson 1936 305.1 Inventory bought on credit

6 Stationery 762 340 GST paid 135 34 Accounts payable control 305 374 Paper Supplies 374 305.2 Stationery bought on credit

8 Accounts payable control 305 132 J Gibson 132 305.1 Inventory 110 120

GST paid 135 12 Credit note received from goods returned

9 Accounts payable control 305 1 804 J Gibson 1 804 305.1 Bank 125 1 727 Discount received 525 70 GST paid 135 7 Paid amount owing

11 Inventory 110 670 GST paid 135 67

Accounts payable control 305 737 M Cronin 737 305.3 Inventory bought on credit 14 Petty cash 130 600

Bank 125 600 Petty cash established

16 Inventory 110 250 GST paid 135 25 Accounts payable control 305 275 J Gibson 275 305.1 Inventory bought on credit

19 Accounts payable control 305 374 Paper Suppliers 374 305.2 Bank 125 352 Discount received 525 20

GST paid 135 2 Paid amount owing

21 Accounts payable control 305 187 M Cronin 187 305.3 Inventory 110 170 GST paid 135 17 Credit note received for goods returned

24 Stationery 762 230 GST paid 135 23 Accounts payable control 305 253 Paper Suppliers 253 305.2 Stationery bought on credit

31 Accounts payable control 305 44 Paper Suppliers 44 305.2 Stationery 762 40 GST paid 135 4 Stationery returned to supplier


113

(ii)

General ledger of C Anderson Inventory Folio No 110

20X0 20X0 July 1 Capital GJ1 42 000 July 8 Accounts payable control GJ1 120

Accounts payable control GJ1 1 760 21 Accounts payable control GJ1 170 11 Accounts payable control GJ1 670 31 Balance c/d 44 390 16 Accounts payable control GJ1 250

44 680 44 680 Aug 1 Balance b/d 44 390

Bank Folio No 125

20X0 20X0 July 1 Capital GJ1 7 000 July 9 Accounts payable control GJ1 1 727

14 Petty cash GJ1 600 19 Accounts payable control GJ1 352 31 Balance c/d 4 321 7 000 7 000

Aug 1 Balance b/d 4 321 Petty Cash Folio No 130

20X0 July 14 Bank GJ1 600

GST paid Folio No 135

20X0 20X0 July 1 Capital GJ1 6 500 July 8 Accounts payable control GJ1 12

Accounts payable control GJ1 176 9 Accounts payable control GJ1 7 6 Accounts payable control GJ1 34 19 Accounts payable control GJ1 2

11 Accounts payable control GJ1 67 21 Accounts payable control GJ1 17 16 Accounts payable control GJ1 25 31 Accounts payable control GJ1 4 24 Accounts payable control GJ1 23 Balance c/d 6 783

6 825 6 825 Aug 1 Balance b/d 6 783

Plant and Machinery Folio No 215

20X0 July 1 Capital GJ1 23 000

Accounts Payable Control Folio No 305

20X0 20X0 July 8 Inventory GJ1 132 July 1 Inventory GJ1 1 936

9 Bank GJ1 1 804 6 Stationery GJ1 374 19 Bank GJ1 374 11 Inventory GJ1 737 21 Inventory GJ1 187 16 Inventory GJ1 275 31 Stationery GJ1 44 24 Stationery GJ1 253

Balance c/d 1 034 3 575 3 575 Aug 1 Balance b/d 1 034

Capital Folio No 455

20X0 July 1 Assets GJ1 78 500

Discount Received Folio No 525

20X0 July 9 Accounts payable control GJ1 70 19 Accounts payable control GJ1 20 90

Stationery Folio No 762

20X0 20X0 July 6 Accounts payable control GJ1 340 July 31 Accounts payable control GJ1 40

24 Accounts payable control GJ1 230 Balance c/d 530 570 570


114

Aug 1 Balance b/d 530 (iii)

Accounts Payable Ledger of C Anderson J Gibson 305.1

Date Particulars Folio Debit Credit Balance20X0 July 1 Inventory GJ1 1 936 1 936 CR

8 Inventory returns GJ1 132 1 804 CR 9 Bank GJ1 1 804 Nil

16 Inventory GJ1 275 275 CR

Paper Suppliers 305.2 Date Particulars Folio Debit Credit Balance20X0 July 6 Stationery GJ1 374 374 CR

19 Bank GJ1 374 Nil 24 Stationery GJ1 253 253 CR 31 Stationery – returns GJ1 44 209 CR

M Cronin 305.3

Date Particulars Folio Debit Credit Balance20X0 July 11 Inventory GJ1 737 737 CR

21 Inventory – returns GJ1 187 550 CR (iv)

Trial Balance of C Anderson as at July 31 20X0 $ $

Inventory 44 390 Bank 4 321 Petty Cash 600 GST paid 6 783 Plant & machinery 23 000 Accounts payable control 1 034 Capital 78 500 Discount received 90 Stationery 530 79 624 79 624

(v) Schedule of Accounts Payable Balances

$

J Gibson 275 Paper Suppliers 209 M Cronin 550 Balance as per accounts payable control 1 034

(b) (i)

General Journal of C Anderson Date Particulars Folio Debit Credit20X0 July 1 Inventory 110 42 000

Bank 125 7 000 GST paid 135 6 500 Plant & machinery 215 23 000

Capital – C Anderson 78 500 Assets introduced at commencement of business

Purchases Journal of C Anderson PJ1

Date Details Folio Accounts Payable Inventory Stationery GST paid

20X0 $ $ $ $ July 1 J Gibson 305.1 1 936 1 760 176

6 Paper Suppliers 305.2 374 340 34 8 J Gibson – returns 305.1 (132) (120) (12)

11 M Cronin 305.3 737 670 67


115

16 J Gibson 305.1 275 250 25 21 M Cronin – returns 305.3 (187) (170) (17) 24 Paper Suppliers 305.2 253 230 23 31 Paper Suppliers – returns 305.2 (44) (40) (4)

3 212 2 390 530 292 305 110 762 135

Cash Payments Journal of C Anderson CPJ1

Date Details Folio Bank Accounts Payable

DiscountRec’d

Petty Cash GST paid

20X0 $ $ $ $ $ July 9 J Gibson 305.1 1 727 1 804 (70) (7)

14 Petty cash 600 600 19 Paper Suppliers 305.2 352 374 (20) (2)

2 679 2 178 (90) 600 (9) 125 305 525 130 135

(ii) General Ledger of C Anderson

Inventory Folio 110 20X0 July 1 Capital – C Anderson GJ1 42 000

31 Accounts payable PJ1 2 390 44 390

Bank Folio 125

20X0 20X0 July 1 Capital – C Anderson GJ1 7 000 July 31 Bank CPJ1 2 679

Balance c/d 4 321 7 000 7 000

Aug 1 Balance b/d 4 321

Petty Cash Folio 130 20X0

July 31 Payments CPJ1 600

GST Paid Folio 135 20X0 20X0 July 1 Capital – C Anderson GJ1 6 500 July 31 Bank CPJ1 9

31 Accounts payable PJ1 292 Balance c/d 6 783 6 792 6 792


Plant & Machinery Folio 215 20X0 July 1 Capital GJ1 23 000

Accounts Payable Control Folio 305

20X0 20X0 31 Bank CPJ1 2 178 July 31 Inventory PJ1 3 212

Balance c/d 1 034 3 212 3 212 Aug 1 Balance b/d 1 034

Capital – C Anderson Folio 455

20X0 July 1 Assets GJ1 78 500

Discount Received Folio 525

20X0 July 31 Bank CPJ1 90

Stationery Folio 762

20X0 July 31 A/cs payable control PJ1 530

(iii)


116

Accounts Payable Ledger of C Anderson J Gibson 305.1

Date Particulars Folio Debit Credit Balance20X0 July 1 Inventory PJ1 1 936 1 936 CR

8 Inventory returns PJ1 132 1 804 CR 9 Bank CPJ1 1 804 Nil

16 Inventory PJ1 275 275 CR

Paper Suppliers 305.2 Date Particulars Folio Debit Credit Balance20X0 July 6 Stationery PJ1 374 374 CR

19 Bank CPJ1 374 Nil 24 Stationery PJ1 253 253 CR 31 Stationery – returns PJ1 44 209 CR

M Cronin 305.3

Date Particulars Folio Debit Credit Balance20X0 July 11 Inventory PJ1 737 737 CR

21 Inventory – returns PJ1 187 550 CR (iv)

Trial Balance of C Anderson as at July 31 20X0 $ $

Inventory 44 390 Bank 4 321 Petty Cash 600 GST paid 6 783 Plant & machinery 23 000 Accounts payable control 1 034 Capital 78 500 Discount received 90 Stationery 530 79 624 79 624

(v) Schedule of Accounts Payable Balances

$

J Gibson 275 Paper Suppliers 209 M Cronin 550 Balance as per accounts payable control 1 034

Solution 7.3 (a) (i)

General Journal of B White Date Particulars Folio Debit Credit 20X7

Dec 1 Inventory 110 5 140 Fittings & furniture 230 1 900 Premises 210 40 000 Bank 125 1 500 Capital 455 45 540 Capital introduced at commencement

2 Accounts Receivable control 115 572 T Mitchell $572 115.1

Sales 505 520 GST collected 315 52

Goods sold on credit Cost of goods sold 600 210 Inventory 110 210 Cost of goods sold

3 Inventory 110 620 GST paid 135 62


117

Date Particulars Folio Debit Credit Accounts payable control 305 682 G Cunningham $682 305.1 Goods bought on credit

5 Accounts receivable control 115 440 C Brown $440 115.2 Sales 505 400 GST collected 315 40 Goods sold on credit Cost of goods sold 600 220 Inventory 110 220 Cost of goods sold

7 Inventory 110 680 GST paid 135 68 Accounts payable control 305 748 A Sturt $748 305.2 Goods bought on credit

10 Advertising 710 180 GST paid 135 18 Bank 125 198 Paid advertising Wages 740 1 150 Bank 125 1 150 Paid wages

15 Drawings 460 160 Bank 125 160 Drew cash for personal expenses

22 Motor vehicle 225 9 000 GST paid 135 900 Accounts payable control 305 9 900 Garnet Motors $9 900 305.3 Purchased motor vehicle on credit Accounts payable control 305 900 Garnet Motors $900 305.3 Bank 125 900 Deposit paid on motor vehicle purchase

23 Drawings 460 242 Inventory 110 220 GST paid 135 22 Goods taken for own use

24 Inventory 110 4 600 GST paid 135 460 Bank 125 5 060 Cash purchases Rent expense 745 240 GST paid 135 24 Bank 125 264 Paid rent

31 Sales 505 80 GST collected 315 8 Accounts receivable control 115 88 C Brown 115.2 Goods returned Inventory 110 40 Cost of goods sold 600 40 Cost of goods returned

(ii)

General Journal of B White Inventory Folio No 11020X7 20X7 Dec 1 Capital GJ1 5 140 Dec 2 Cost of goods sold GJ1 210

3 Accounts payable control GJ1 620 5 Cost of goods sold GJ1 220 7 Accounts payable control GJ1 680 23 Drawings GJ1 220

24 Bank GJ1 4 600 31 Balance c/d 10 430 31 Cost of goods sold GJ1 40


118

11 080 11 080 20X8 Jan 1 Balance b/d 10 430

Accounts Receivable Control Folio No 11520X7 20X7 Dec 2 Sales GJ1 572 Dec 31 Sales GJ1 88

5 Sales GJ1 440 Balance c/d 924 1 012 1 012

20X8 Jan 1 Balance b/d 924

Bank Folio No 125

20X7 Dec 1 Capital GJ1 1 500 10 Advertising GJ1 198 Wages GJ1 1 150 15 Drawings GJ1 160 22 Accounts payable control GJ1 900 24 Inventory GJ1 5 060 Rent expense GJ1 264 9 232

GST paid Folio No 13520X7 20X7 Dec 3 Accounts payable control GJ1 62 Dec 23 Drawings GJ1 22

7 Accounts payable control GJ1 68 31 Balance c/d 1 510 10 Bank GJ1 18 22 Accounts payable control GJ1 900 24 Bank GJ1 460

Bank GJ1 24 1 532 1 532

20X8 Jan 1 Balance b/d 1 510

Premises Folio No 21020X7 Dec 1 Capital GJ1 40 000

Motor Vehicles Folio No 22520X7

Dec 22 Accounts payable control GJ1 9 000 Fittings & Furniture Folio No 23020X7 Dec 1 Capital GJ1 1 900

Accounts Payable Control Folio No 30520X7 20X7

Dec 22 Bank GJ1 900 Dec 3 Inventory GJ1 682 31 Balance c/d 10 430 7 Inventory GJ1 748

22 Motor vehicle GJ1 9 900 11 330 11 330 20X8 Jan 1 Balance b/d 10 430

GST collected Folio No 31520X7 20X7

Dec 31 Accounts receivable control GJ1 8 Dec 2 Accounts receivable control GJ1 52 Balance c/d 84 5 Accounts receivable control GJ1 40 92 92


Capital Folio No 455

20X7


119

Dec 2 Assets & liabilities GJ1 45 540

Drawings Folio No 46020X7 Dec 15 Bank GJ1 160

23 Inventory GJ1 242 402

Sales Folio No 50520X7 20X7

Dec 31 Accounts receivable control GJ1 80 Dec 2 Accounts receivable control GJ1 520 Balance c/d 840 5 Accounts receivable control GJ1 400 920 920 20X8 Jan 1 Balance b/d 840

Cost of Goods Sold Folio No 600

20X7 20X7 Dec 1 Inventory GJ1 210 Dec 31 Inventory GJ1 40

5 Inventory GJ1 220 Balance c/d 390 430 430


Advertising Folio No 710

20X7 Dec 10 Bank GJ1 180

Wages Folio No 740

20X7 Dec 10 Capital GJ1 1 150

Rent Expense Folio No 745

20X7 Dec 24 Bank GJ1 240

(iii) Accounts Receivable Ledger of B White T Mitchell Folio 115.1

Date Particulars Folio Debit Credit Balance20X7 Dec 2 Sales SJ1 572 572 Dr

C Brown Folio 115.2


28 Sales (returns) SJ1 88 352 Dr

Accounts Payable Ledger of B White G Cunningham Folio 305.1

Date Particulars Folio Debit Credit Balance20X7 Dec 5 Inventory PJ1 682 682 Cr

A Sturt Folio 305.2


Garnett Motors Folio 305.3

Date Particulars Folio Debit Credit Balance20X7

Dec 22 Motor vehicles PJ1 9 900 9 900 CR Bank CD1 900 9 000 CR

(iv)


120

Trial Balance of B White at 31 December 20X7 $ $ Inventory 10 430 Accounts receivable control 924 Bank 9 232 GST paid 1 510 Premises 40 000 Motor vehicles 9 000 Fittings & furniture 1 900 Accounts payable control 10 430 GST collected 84 Capital – B White 45 540 Drawings – B White 402 Sales 840 Cost of goods sold 390 Advertising 180 Wages 1 150 Rent 240 66 126 66 126


$ T Mitchell 572 C Brown 352 Balance as per accounts receivable control 924

Schedule of Accounts Payable Balances

$ G Cunningham 682 A Sturt 748 Garnet Motors 9 000 Balance as per accounts payable control 10 430

(b) (i) General Journal of B White Folio GJ1

Date Particulars Folio Debit Credit20X7

Dec 1 Inventory 110 5 140 Fittings and furniture 230 1 900 Premises 210 40 000 Bank 125 1 500 Capital – B White 455 45 540 Assets liabilities and capital at this date

23 Drawings 460 242 GST paid 135 22 Inventory 110 220 Goods taken for private use

Sales Journal of B White Folio SJ1

Date

Cost of Goods Sold Details Folio

Accounts Receivable Sales

GST collected

20X7 $ $ $ Dec 2 210 T Mitchell 115.1 572 520 52

5 220 C Brown 115.2 440 400 40 31 (40) C Brown 115.2 (88) (80) (8)

390 924 840 84 600/110 115 505 315

Purchases Journal of B White Folio PJ1

Date Details Folio Accounts Payable Inventory

Motor Vehicles GST paid

20X7 $ $ $ $ Dec 3 G Cunningham 305.1 682 620 62

7 A Sturt 305.2 748 680 68 22 Garnett Motors 305.3 9 900 9 000 900


121

11 330 1 300 9 000 1 030 305 110 225 135

Cash Payments Journal of B White Folio CPJ1

Date Details

Folio Bank A/cs

PayableAdvert-

ising WagesDraw-ings Inventory Rent

GSTpaid

20X7 $ $ $ $ $ $ $ $ Dec

10 Advertising 198 180 18

Wages 1 150 1 150 15 Drawings 160 160 22 Garnet Motors 305.3 900 900 24 Inventory 5 060 4 600 460

Rent 264 240 24 7 732 900 180 1 150 160 4 600 240 502

125 305 710 740 460 110 745 135

(ii) General Journal of B White

Inventory Folio 11020X7 20X7 Dec 1 Capital – B White GJ1 5 140 Dec 23 Drawings GJ1 220

31 A/cs payable control PJ1 1 300 31 Cost of goods sold SJ1 390 Bank CPJ1 4 600 Balance c/d 10 430 11 040 11 040

20X8 Jan 1 Balance b/d 10 430

Accounts Receivable Control Folio 115

20X7 Dec 31 Sales SJ1 924

Bank Folio 125

20X7 Dec 1 Capital GJ1 1 500 31 Payments CPJ1 7 732 9 232

GST paid Folio 135

20X7 20X7 Dec 31 Accounts payable control PJ1 1 030 Dec 23 Drawings GJ1 22

Bank CPJ1 502 31 Balance c/d 1 510 1 532 1 532

Jan 1 Balance b/d 1 510

Premises Folio 210 20X7 Dec 1 Capital – B White GJ1 40 000

Motor Vehicles Folio 225

20X7 Dec 31 A/cs payable control PJ1 9 000

Fittings & Furniture Folio 230

20X7 Dec 1 Capital – B White GJ1 1 900

Accounts Payable Control Folio 305 20X7 20X7 Dec 31 Bank CPJ1 900 Dec 31 Purchases 11 330

Balance c/d 10 430 11 330 11 330 20X8 Jan 1 Balance b/d 10 430

GST Collected Folio 315 20X7

Dec 31 A/cs receivable control SJ1 84


122

Capital – B White Folio 455 20X7

Dec 1 Assets & Liabilities GJ1 45 540

Drawings – B White Folio 460 20X7 Dec 23 Inventory GJ1 242

31 Bank CPJ1 160 402

Sales Folio 505

20X7 Dec 31 A/cs rec control SJ1 840

Cost of Goods Sold Folio 600

20X7 Dec 31 Inventory SJ1 390

Advertising Folio 710

20X7 Dec 31 Bank CPJ1 180

Wages Folio 740

20X7 Dec 31 Bank CPJ1 1 150

Rent Folio 745

20X7 Dec 31 Bank CPJ1 240

(iii) Accounts Receivable Ledger of B White T Mitchell Folio 115.1


C Brown Folio 115.2


28 Sales (returns) SJ1 88 352 Dr

Accounts Payable Ledger of B White G Cunningham Folio 305.1


A Sturt Folio 305.2


Garnett Motors Folio 305.3


Dec 22 Motor vehicles PJ1 9 900 9 900 CR Bank CPJ1 900 9 000 CR

(iv) Trial Balance of B White at 31 December 20X7

$ $ Inventory 10 430 Accounts receivable control 924


123

Bank 9 232 GST paid 1 510 Premises 40 000 Motor vehicles 9 000 Fittings & furniture 1 900 Accounts payable control 10 430 GST collected 84 Capital – B White 45 540 Drawings – B White 402 Sales 840 Cost of goods sold 390 Advertising 180 Wages 1 150 Rent 240 66 126 66 126


$ T Mitchell 572 C Brown 352 Balance as per accounts receivable control 924


$ G Cunningham 682 A Sturt 748 Garnet Motors 9 000 Balance as per accounts payable control 10 430

Solution 7.4 (a) (i) General Journal of L Smith GJ1

Date Particulars Folio Debit Credit 20X2 $ $ April 1 Bank 125 8 000

Inventory 110 6 000 Motor vehicle 225 10 000 Furniture & Fittings 230 1 200 GST paid 135 1 720

Loan Finance Co 410 9 000 Capital 455 17 920 Assets & liabilities at commencement Accounts receivable control 115 2 640 T Yates 2640 115.1 Sales 505 2 400 GST collected 315 240 Goods sold on credit Cost of goods sold 600 1 200 Inventory 110 1 200 Cost of goods sold

3 Accounts receivable control 115 3 960 J Hope 3 960 115.2 Sales 505 3 600 GST collected 315 360 Goods sold on credit Cost of goods sold 600 1 800 Inventory 110 1 800 Cost of goods sold

4 Inventory 110 500 GST paid 135 50 Accounts payable control 305 550 M Buffier 550 305.1 Goods bought on credit

6 Computers 235 2 300 GST paid 135 230 Accounts payable control 305 2 530


124

Date Particulars Folio Debit Credit Supreme Office Equipment 2 530 305.2

Computer bought on credit 9 Bank 125 1 100

Sales 505 1 000 GST collected 315 100 Goods sold for cash Cost of goods sold 600 500 Inventory 110 500 Cost of goods sold

12 Drawings 460 75 Bank 125 75 Cash withdrawn for private use

15 Accounts payable control 305 550 M Buffier 550 305.1 Bank 125 539 Discount received 525 10 GST paid 135 1 Payment of account

23 Sales 505 100 GST collected 315 10 Accounts receivable control 115 110 J Hope 110 115.2 Goods returned Inventory 110 50 Cost of goods sold 600 50 Cost of goods returned

25 Bank 125 3 773 Discount allowed 610 70 GST collected 315 7 Accounts receivable control 115 3 850 J Hope 3 850 115.2 Received payment of account

26 Inventory 110 800 GST paid 135 80 Bank 125 880 Cash purchases

28 Bank charges 792 10 Bank 125 10 Bank charges incurred

(ii) General Ledger of L Smith

Inventory Folio 110 20X2 20X2 Apr 1 Capital GJ1 6 000 Apr 1 Cost of goods sold GJ1 1 200

4 Accounts payable control GJ1 500 3 Cost of goods sold GJ1 1 800 23 Cost of goods sold GJ1 50 9 Cost of goods sold GJ1 500 26 Bank GJ1 800 30 Balance c/d 3 850

7 350 7 350 May 1 Balance b/d 3 850

Accounts Receivable Control Folio 115 20X2 20X2 Apr 1 Sales GJ1 2 640 Apr 23 Sales GJ1 110

3 Sales GJ1 3 960 25 Bank GJ1 3 850 30 Balance c/d 2 640 6 600 6 600

May 1 Balance b/d 2 640

Bank Folio 125 20X2 20X2 Apr 1 Capital GJ1 8 000 Apr 12 Drawings GJ1 75

9 Sales GJ1 1 100 15 Accounts payable control GJ1 539 25 Accounts receivable control GJ1 3 773 26 Inventory GJ1 880

28 Bank charges GJ1 10 30 Balance c/d 11 369 12 873 12 873


125


GST paid Folio 135 20X2 20X2 Apr 1 Capital GJ1 1 720 Apr 15 Accounts payable control GJ1 1

4 Accounts payable control GJ1 50 30 Balance c/d 2 079 6 Accounts payable control GJ1 230

26 Bank GJ1 80 2 080 2 080


Motor Vehicles Folio 225 20X2 Apr 1 Capital GJ1 10 000

Furniture & Fittings Folio 230

20X2 Apr 1 Capital GJ1 1 200

Computers Folio 235

20X2 Apr 6 Accounts payable control GJ1 2 300


20X2 20X2 Apr 15 Bank GJ1 550 Apr 4 Inventory GJ1 550

30 Balance c/d 2 530 6 Computers GJ1 2 530 3 080 3 080 May 1 Balance b/d 2 530

GST Collected Folio 315

20X2 20X2 Apr 23 Accounts receivable control GJ1 10 Apr 1 Accounts receivable control GJ1 240

25 Accounts receivable control GJ1 7 3 Accounts receivable control GJ1 360 30 Balance c/d 683 9 Bank GJ1 100

700 700 May 1 Balance b/d 683

Loan Finance Co Folio 410

20X2 Apr 1 Capital GJ1 9 000

Capital Folio 455

20X2 Apr 1 Assets & liabilities GJ1 17 920

Drawings Folio 460

20X2 Apr 12 Bank GJ1 75

Sales Folio 505

20X2 20X2 Apr 23 Accounts receivable control GJ1 100 Apr 1 Accounts receivable control GJ1 2 400

30 Balance c/d 6 900 3 Accounts receivable control GJ1 3 600 9 Bank GJ1 1 000 7 000 7 000 May 1 Balance b/d 6 900


20X2 Apr 15 Accounts payable control GJ1 10


20X2 20X2 Apr 1 Inventory GJ1 1 200 Apr 23 Inventory GJ1 50

3 Inventory GJ1 1 800 30 Balance c/d 3 450


126

9 Inventory GJ1 500 3 500 3 500


Discount Allowed Folio 610 20X2 Apr 25 Accounts receivable control GJ1 70 150

Bank Charges Folio 792

20X2 Apr 28 Bank GJ1 10

(iii)

L Smith Accounts Receivable Ledger

T Yates Folio 115.1 Date Particulars Folio Debit Credit Balance20X2

Apr 1 Sales SJ1 2 640 2 640 DR J Hope Folio 115.2


Apr 3 Sales SJ1 3 960 3 960 DR 23 Sales – returns SJ1 110 3 850 DR 25 Bank CR1 3 850 Nil

L Smith Accounts Payable Ledger

M Buffier Folio 305.1 Date Particulars Folio Debit Credit Balance20X2

Apr 4 Inventory PJ1 550 550 CR 15 Bank CPJ1 550 Nil

Supreme Office Equipment Folio 305.2


Apr 6 Computers PJ1 2 530 2 530 CR

(iv) Trial Balance of L Smith as at 30 April 20X2

$ $ Inventory 3 850 Accounts receivable control 2 640 Bank 11 369 GST paid 2 079 Motor vehicles 10 000 Furniture & fittings 1 200 Computers 2 300 Accounts payable control 2 530 GST collected 683 Loan 9 000 Capital – L Smith 17 920 Drawings 75 Sales 6 900 Discount received 10 Cost of goods sold 3 450 Discount allowed 70 Bank charges 10 37 043 37 043


$ T Yates 2 640



127

$ Supreme Office Equipment 2 530

(b) (i) General Journal of L Smith GJ1

Date Particulars Folio Debit Credit20X2 Apr 1 Bank 125 8 000

Inventory 110 6 000 Motor vehicle 225 10 000

Furniture & fittings 230 1 200 GST paid 135 1 720 Loan 410 9 000 Capital – L Smith 455 17 920 Assets & liabilities at commencement of business

Sales Journal of L Smith

Date

Cost of Goods Sold Details

Folio


GST collected

20X2 $ $ $ Apr 1 1 200 T Yates 115.1 2 640 2 400 240

3 1 800 J Hope 115.2 3 960 3 600 360 23 (50) J Hope – returns 115.2 (110) (100) (10)

2 950 6 490 5 900 590 600/110 115 505 315

Purchases Journal of L Smith

Date Details Folio Accounts Payable Inventory Computers

GST paid

20X2 $ $ $ $ Apr 4 M Buffier 305.1 550 500 50

6 Supreme Office Equip 305.2 2 530 2 300 230 3 080 500 2 300 280 305 110 235 135

Cash Receipts Journal of L Smith

Date


Folio Bank

Accounts Receivable

Discount Allowed Sales

GST collected

20X2 $ $ $ $ $ Apr 9 500 Sales 1 100 1 000 100

25 J Hope 115.2 3 773 3 850 (70) (7) 500 4 873 3 850 (70) 1 000 93 600/110 125 115 610 505 315

Cash Payments Journal of L Smith

Date Details

Folio Bank AccountsPayable

DiscRec’d Drawings Inventory

Bank Charge

GST paid

20X2 $ $ $ $ $ $ $Apr 12 Drawings 75 75

15 M Buffier 305.1 539 550 (10) (1)26 Purchases 880 800 8028 Bank charges 10 10

1 504 550 (10) 75 800 10 79

125 305 525 460 110 792 135

(ii) General Ledger of L Smith

Inventory Folio 110 20X2 20X2

Apr 1 Capital – L Smith GJ1 6 000 Apr 30 Cost of goods sold SJ1 2 950 30 Purchases PJ1 500 Cost of goods sold CR1 500

Bank CPJ1 800 Balance c/d 3 850 7 300 7 300


128


Accounts Receivable Control Folio 115 20X2 20X2

Apr 30 Sales SJ1 6 490 Apr 30 Bank CR1 3 850 Balance c/d 2 640 6 490 6 490

May 1 Balance c/d 2 640

Bank Folio 125 20X2 20X2

Apr 1 Capital – L Smith GJ1 8 000 Apr 30 Payments CPJ1

1 504

30 Receipts CR1 4 873 Balance c/d 11 369 12 873 12 873


GST Paid Folio 135 20X2 Apr 1 Capital – L Smith GJ1 1 720

30 A/cs payable PJ1 280 Bank CPJ1 79 2 079


20X2 Apr 1 Capital – L Smith GJ1 10 000

Furniture & Fittings Folio 230


Computers Folio 235

20X2 Apr 30 A/cs payable control GJ1 2 300


20X2 20X2 Apr 30 Bank CPJ1 550 Apr 30 Purchases PJ1 3 080

Balance c/d 2 530 3 080 3 080 May 1 Balance b/d 2 530


20X2 Apr 30 Accounts receivable SJ1 590 Bank CR1 93 683

Loan Folio 410


Capital – L Smith Folio 455

20X2 Apr 1 Assets & liabilities GJ1 17 920

Drawings Folio 460

20X2 Apr 30 Bank CPJ1 75

Sales Folio 505

20X2 Apr 30 Bank CR1 1 000 A/cs receivable control SJ1 5 900 6 900


129




20X2 Apr 30 Inventory SJ1 2 950

Inventory CR1 500 3 450

Discount Allowed Folio 785

20X2 Apr 30 Bank CR1 70



(iii)

L Smith Accounts Receivable Ledger

T Yates Folio 115.1 Date Particulars Folio Debit Credit Balance20X2

Apr 1 Sales SJ1 2 640 2 640 DR J Hope Folio 115.2


Apr 3 Sales SJ1 3 960 3 960 DR 23 Sales – returns SJ1 110 3 850 DR 25 Bank CR1 3 850 Nil

L Smith Accounts Payable Ledger

M Buffier Folio 305.1 Date Particulars Folio Debit Credit Balance20X2

Apr 4 Inventory PJ1 550 550 CR 15 Bank CPJ1 550 Nil

Supreme Office Equipment Folio 305.2


Apr 6 Computers PJ1 2 530 2 530 CR (iv)

Trial Balance of L Smith as at 30 April 20X2 $ $ Inventory 3 850 Accounts receivable control 2 640 Bank 11 369 GST paid 2 079 Motor vehicles 10 000 Furniture & fittings 1 200 Computers 2 300 Accounts payable control 2 530 GST collected 683 Loan 9 000 Capital – L Smith 17 920 Drawings 75 Sales 6 900 Discount received 10 Cost of goods sold 3 450 Discount allowed 70 Bank charges 10 37 043 37 043


130


$ T Yates 2 640


$ Supreme Office Equipment 2 530

Solution 7.5 (a) (i) General Journal of K Cole Folio GJ1

Date Particulars Folio Debit Credit 20X7 $ $ July 2 Sales 505 220

GST collected 315 22 Accounts receivable control 115 242 F Morrison $242 115.2 Goods returned Inventory 110 110 Cost of goods sold 600 110 Cost of goods returned

3 Accounts receivable control 115 473 C Meredith $473 115.4 Bad debts recovered 540 430 GST collected 315 43 Re-instating bad debt now recovered Bank 125 473 Accounts receivable control 115 473 C Meredith $473 115.4 Cash received for amount owing

4 Bank 125 902 Discount allowed 785 40 GST collected 315 4 Accounts receivable control 115 946 F Morrison $946 115.2 Cash received for amount owing

5 Inventory 110 750 GST paid 135 75 Accounts payable control 305 825 T Waddell $825 305.2 Bought inventory on credit

6 Accounts payable control 305 1 642 B Johnson $1 642 305.1 Bank 125 1 554 Discount received 525 80 GST paid 135 8 Paid amount owing Accounts receivable control 115 22 B Schadel $22 115.3 Late fee income 547 20 GST collected 315 2 Late fee charged on overdue account

7 Accounts payable control 305 66 T Waddell $66 305.2 Inventory 110 60 GST Paid 135 6 Goods returned

11 Accounts receivable control 115 1 188 F Jonnies $1 188 115.5

Sales 505 1 080 GST collected 315 108 Goods sold on credit Cost of goods sold 600 500 Inventory 110 500 Cost of goods sold


131

Date Particulars Folio Debit Credit 14 Bank 125 1 892

Sales 505 1 720 GST collected 315 172 Goods sold for cash Cost of goods sold 600 850 Inventory 110 850 Cost of goods sold

17 Accounts receivable control 115 275 K Clarke $275 115.6 Plant & equipment 220 250

GST collected 315 25 Plant sold at book value

18 Bank 125 1 188 Accounts receivable control 115 1 188 F Jonnies $1 188 115.5 Cash received for amount owing

21 Accounts receivable control 115 1 188 F Jonnies $1 188 115.5 Bank 125 1 188 Recording cheque dishonoured

23 Accounts payable control 305 1 598 T Waddell $1 598 305.2 Bank 125 1 521 Discount received 525 70 GST paid 135 7 Payment of amount owing

25 Bad debts 787 1 090 GST collected 315 109

Accounts receivable control 115 1 199 K Gwynne $1 199 115.1 Bad debt written off

(ii) General Ledger of K Cole

Inventory Folio 11020X7 20X7 July 1 Balance b/d 38 400 July 7 Accounts payable control GJ1 60

2 Cost of goods sold GJ1 110 11 Cost of goods sold GJ1 500 5 Accounts payable control GJ1 750 14 Cost of goods sold GJ1 850

31 Balance c/d 37 850 39 260 39 260


Accounts Receivable Control Folio 11520X7 20X7 July 1 Balance b/d 3 381 July 2 Sales GJ1 242

3 Bad debts recovered GJ1 473 3 Bank GJ1 473 6 Late fee income GJ1 22 4 Bank GJ1 946

11 Sales GJ1 1 188 18 Bank GJ1 1 188 17 Plant & machinery GJ1 275 23 Bad debts GJ1 1 199 21 Bank GJ1 1 188 31 Balance c/d 2 479

6 527 6 527 Aug 1 Balance b/d 2 479

Bank Folio 12520X7 20X7 July 3 Accounts receivable control GJ1 473 July 1 Balance b/d 11 380

4 Accounts receivable control GJ1 902 6 Accounts payable control GJ1 1 554 14 Sales GJ1 1 892 21 Accounts receivable control GJ1 1 188 18 Accounts receivable control GJ1 1 188 23 Accounts payable control GJ1 1 521 31 Balance c/d 11 188

15 643 15 643 Aug 1 Balance b/d 11 188

Petty Cash Folio 130

20X7 July 1 Balance b/d 1 000


132

GST Paid Folio 135

20X7 20X7 July 1 Balance b/d 1 830 July 6 Accounts payable control GJ1 8

5 Accounts payable control GJ1 75 7 Accounts payable control GJ1 6 23 Accounts payable control GJ1 7 31 Balance c/d 1 884 1 905 1 905


Land & Buildings Folio 21020X7 July 1 Balance b/d 220 000

Plant & Equipment Folio 22020X7 20X7 July 1 Balance b/d 68 210 July 17 Accounts receivable control GJ1 250

31 Balance c/d 67 960 68 210 68 210


Accounts Payable Control Folio 30520X7 20X7 July 6 Bank GJ1 1 642 July 1 Balance b/d 6 663

7 Inventory GJ1 66 5 Inventory GJ1 825 23 Bank GJ1 1 598 31 Balance c/d 4 182

7 488 7 488 Aug 1 Balance b/d 4 182


20X7 20X7 July 2 Accounts receivable control GJ1 22 July 1 Balance b/d 910

4 Accounts receivable control GJ1 4 3 Accounts receivable control GJ1 43 23 Accounts receivable control GJ1 109 6 Accounts receivable control GJ1 2 31 Balance c/d 1 125 7 Accounts receivable control GJ1 108

14 Bank GJ1 172 17 Accounts receivable control GJ1 25 1 260 1 260 Aug 1 Balance b/d 1 125

Loan from Finance Co Folio 410


Capital Folio 455


Sales Folio 505

20X7 20X7 July 2 Accounts receivable control GJ1 220 July 11 Accounts receivable control GJ1 1 080

31 Balance c/d 2 580 14 Bank GJ1 1 720 2 800 2 800 Aug 1 Balance b/d 2 580

Late Fee Income Folio 547

20X7 July 6 Accounts receivable control GJ1 20

Bad Debts Recovered Folio 540

20X7 July 3 Accounts receivable control GJ1 430


20X7


133

July 6 Accounts payable control GJ1 80 23 Accounts payable control GJ1 70 150


20X7 20X7 July 11 Inventory GJ1 500 July 2 Inventory GJ1 110

14 Inventory GJ1 850 31 Balance c/d 1 240 1 350 1 350


Discount Allowed Folio 78520X7 July 4 Accounts receivable control GJ1 40

Bad Debts Folio 787

20X7 July 23 Accounts receivable control GJ1 1 090

(iii)

K Cole Accounts receivable Ledger K Gwynne Folio 115.1


July 1 Balance 1 199 1 199 DR 25 Bad debts GJ1 1 199 Nil DR

F Morrison Folio 115.2


July 1 Balance 1 188 1 188 DR 2 Sales (returns) SJ1 242 946 DR 4 Bank CR1 946 Nil

B Schadel Folio 115.3


July 1 Balance 994 994 DR 6 Late fee income GJ1 22 1 016 DR

C Meredith Folio 115.4


July 3 Bad debts recovered GJ1 473 473 DR Bank CR1 473 Nil

F Jonnies Folio 115.5

Date Particulars Folio Debit Credit Balance20X7 July 11 Sales SJ1 1 188 1 188 DR

18 Bank CR1 1 188 Nil 21 Bank – cheque dishonoured CR1 1 188 1 188 DR

K Clarke Folio 115.6

Date Particulars Folio Debit Credit Balance20X7 July 17 Plant & Equipment SJ1 275 275 DR

K Cole Accounts Payable Ledger

B Johnson Folio 305.1 Date Particulars Folio Debit Credit Balance20X7

July 1 Balance 1 642 1 642 CR 6 Bank CPJ1 1 642 Nil


134

T Waddell Folio 305.2 Date Particulars Folio Debit Credit Balance20X7

July 1 Balance 839 839 CR 5 Inventory PJ1 825 1 664 CR 7 Inventory returns PJ1 66 1 598 CR

23 Bank CPJ1 1 598 Nil

M Tek Folio 305.3 Date Particulars Folio Debit Credit Balance20X7

July 1 Balance 4 182 4 182 CR

(iv) Trial Balance of K Cole as at 31 July 20X7

$ $ Inventory 37 850 Accounts receivable control 2 479 Bank 11 188 Petty Cash 1 000 GST paid 1 884 Land & buildings 220 000 Plant & equipment 67 960 Accounts payable control 4 182 GST collected 1 125 Finance Company Ltd 17 000 Capital – K Cole 296 868 Sales 2 580 Late fee income 20 Discount received 150 Bad debts recovered 430 Cost of goods sold 1 240 Discount allowed 40 Bad debts 1 090 333 543 333 543


$ B Schadel 1 016 F Jonnies 1 188 K Clarke 275 Balance as per accounts receivable control 2 479


$ M Tek 4 182 Balance as per accounts payable control 4 182

(b) (i) General Journal of K Cole Folio GJ1

Date Particulars Folio Debit Credit20X7

July 3 Accounts receivable control 115 473 - C Meredith 473 115.4 Bad debts recovered 540 430

GST collected 315 43 Recovery of amount previously written off

6 Accounts receivable control 115 22 - B Schadel 22 115.3 Late fee income 547 20 GST collected 315 2 Late fee charged on overdue account

25 Bad debts 787 1 090 GST collected 315 109 Accounts receivable control 115 1 199 K Gwynne 1 199 115.1


135

Bad debt written off

Sales of K Cole Folio SJ1

Date


Folio


Plant & Equip

GST Collected

20X7 $ $ $ $ July 2 (110) F Morrison (Returns) 115.2 (242) (220) (22)

11 500 F Jonnies 115.5 1 188 1 080 108 17 K Clarke 115.6 275 250 25

390 1 221 860 250 111 600/110 115 505 220 315

Purchases of K Cole Folio PJ1

Date Details Folio Accounts Payable Inventory GST Paid

20X7 $ $ $ July 5 T Waddell 305.2 825 750 75

7 T Waddell – returns 305.2 (66) (60) (6) 759 690 69 305 110 135

Cash Receipts Journal of K Cole Folio CR1

Date


Folio Bank

Accounts Receivable

Discount Allowed Sales

GST Collected

20X7 $ $ $ $ July 3 C Meredith 115.4 473 473

4 F Morrison 115.2 902 946 (40) (4) 14 850 Sales 1 892 1 720 172 18 F Jonnies 115.5 1 188 1 188 21 F Jonnies – chq

dishonour 115.5 (1 188) (1 188)

850 3 267 1 419 (40) 1 720 168 600/110 125 115 610 505 315

Cash Payments Journal of K Cole Folio CPJ1

Date Details

Folio Bank A/cs

Payable Disc

Rec’d GST Paid

20X7 $ $ $ $ July 6 B Johnson 305.1 1 554 1 642 (80) (8)

23 T Waddell 305.2 1 521 1 598 (70) (7) 3 075 3 240 (150) (15) 125 305 525 135

(ii)

General Ledger of K Cole Inventory Folio 110

20X7 20X7 July 1 Balance b/d 38 400 July 31 Cost of goods sold SJ1 390

31 Accounts payable control PJ1 690 Cost of goods sold CR1 850 Balance c/d 37 850 39 090 39 090


Accounts Receivable Control Folio 115 20X7 20X7 July 1 Balance b/d 3 381 July 25 Bad debts GJ1 1 199

3 Bad debts recovered GJ1 473 31 Bank CR1 1 419 6 Late fee income GJ1 22 Balance c/d 2 479

31 Sales SJ1 1 221 5 097 5 097



136

Bank Folio 125 20X7 20X7

July 31 Receipts CR1 3 267 July 1 Balance b/d 11 380 Balance c/d 11 188 31 Bank CPJ1 3 075 14 455 14 455 Aug 1 Balance b/d 11 188



GST Paid Folio 13520X7 20X7 July 1 Balance b/d 1 830 Jul 31 Accounts payable control CPJ1 15

31 Accounts payable control PJ1 69 31 Balance c/d 1 884 1 899 1 899

Aug 1 Balance b/d 1 884 Land & Buildings Folio 210


Plant & Equipment Folio 220 20X7 20X7 July 1 Balance b/d 68 210 July 31 A/cs receivable control SJ1 250

Balance c/d 67 960 68 210 68 210


Accounts Payable Control Folio 305 20X7 20X7 July 31 Bank CPJ1 3 240 July 1 Balance b/d 6 663

Balance c/d 4 182 31 Inventory PJ1 759 7 422 7 422 Aug 1 Balance b/d 4 182


20X7 20X7 July 31 July 1 Balance b/d 910

31 Accounts receivable control GJ1 109 3 A/cs receivable control GJ1 43 31 Balance c/d 1 125 6 A/cs receivable control GJ1 2

31 A/cs receivable control SJ1 111 Bank CR1 168 1 234 1 234 Aug 1 Balance b/d 1 125

Finance Company Ltd Folio 410


Capital – K Cole Folio 455


Sales Folio 505

20X7 July 31 Bank CR1 1 720 A/cs receivable control SJ1 860 2 580

Late Fee Income Folio 547

20X7 July 31 A/cs receivable control GJ1 20


137

Discount Received Folio 525 20X7

July 31 Bank CPJ1 150

Bad Debts Recovered Folio 540 20X7

July 3 A/cs receivable control GJ1 430

Cost of Goods Sold Folio 600 20X7

July 31 Inventory SJ1 390 Inventory CR1 850 1 240


20X7 July 31 Bank 40

Bad Debts Folio 787

20X7 July 25 A/cs receivable control GJ1 1 090

(iii) K Cole Accounts receivable Ledger

K Gwynne Folio 115.1 Date Particulars Folio Debit Credit Balance20X7

July 1 Balance 1 199 1 199 DR 25 Bad debts GJ1 1 199 Nil DR

F Morrison Folio 115.2


July 1 Balance 1 188 1 188 DR 2 Sales (returns) SJ1 242 946 DR 4 Bank CR1 946 Nil

B Schadel Folio 115.3


July 1 Balance 994 994 DR 6 Interest income GJ1 22 1 016 DR

C Meredith Folio 115.4


July 3 Bad debts recovered GJ1 473 473 DR Bank CR1 473 Nil

F Jonnies Folio 115.5

Date Particulars Folio Debit Credit Balance20X7 July 11 Sales SJ1 1 188 1 188 DR

18 Bank CR1 1 188 Nil 21 Bank – cheque dishonoured CR1 1 188 1 188 DR

K Clarke Folio 115.6

Date Particulars Folio Debit Credit Balance20X7 July 17 Plant & Equipment SJ1 275 275 DR

K Cole Accounts Payable Ledger

B Johnson Folio 305.1 Date Particulars Folio Debit Credit Balance20X7

July 1 Balance 1 642 1 642 CR 6 Bank CPJ1 1 642 Nil


138

T Waddell Folio 305.2


July 1 Balance 839 839 CR 5 Inventory PJ1 825 1 664 CR 7 Inventory returns PJ1 66 1 598 CR

23 Bank CPJ1 1 598 Nil

M Tek Folio 305.3 Date Particulars Folio Debit Credit Balance20X7

July 1 Balance 4 182 4 182 CR (iv)

Trial Balance of K Cole as at 31 July 20X7 $ $ Inventory 37 850 Accounts receivable control 2 479 Bank 11 188 Petty Cash 1 000 GST Paid 1 884 Land & buildings 220 000 Plant & equipment 67 960 Accounts payable control 4 182 GST collected 1 125 Finance Company Ltd 17 000 Capital – K Cole 296 868 Sales 2 580 Late fee income 20 Discount received 150 Bad debts recovered 430 Cost of goods sold 1 240 Discount allowed 40 Bad debts 1 090 333 543 333 543


$ B Schadel 1 016 F Jonnies 1 188 K Clarke 275 Balance as per accounts receivable control 2 479


$ M Tek 4 182 Balance as per accounts payable control 4 182

Solution 7.6 (a)

General Ledger of I Lucas Accounts Receivable Control Folio 115

20X9 20X9 Sept 18 Service revenue GJ1 715 Sept 24 Bank GJ1 300

27 Service revenue GJ1 1 760 29 Service revenue GJ1 77 30 Balance c/d 2 098 2 475 2 475

Oct 1 Balance b/d 2 098

Bank Folio 12520X9 Sept 1 Capital GJ1 30 800

2 Loan from Ozzie GJ1 40 000 5 Service revenue GJ1 1 540

24 Accounts receivable control GJ1 300 72 640


139

GST paid Folio 135

20X9 20X9 Sept10 Accounts payable control GJ1 190 Sep 21 Accounts payable control GJ1 18

14 Accounts payable control GJ1 86 30 Balance c/d 258 276 276

Oct 1 Balance b/d 258

Accounts Payable Control Folio 30520X9 20X9

Sept 21 Office supplies GJ1 198 Sept 10 Office supplies GJ1 2 090 30 Balance c/d 2 838 14 Advertising GJ1 946

3 036 3 036 Oct 1 Balance b/d 2 838

GST collected Folio 315

20X9 20X9 Sept 29 Accounts receivable control GJ1 7 Sept 5 Bank GJ1 140

30 Balance c/d 358 18 Accounts receivable control GJ1 65 27 Accounts receivable control GJ1 160 365 365 Oct 1 Balance b/d 358

Loan from Ozzie Folio 410

20X9 Sept 1 Capital GJ1 5 000 2 Bank GJ1 40 000 45 000

Capital Folio 455

20X9 Sept 1 Assets & liabilities GJ1 25 800

Service Revenue Folio 507

20X9 20X9 Sept 29 Accounts receivable control GJ1 70 Sept 5 Bank GJ1 1 400

30 Balance c/d 3 580 18 Accounts receivable control GJ1 650 27 Accounts receivable control GJ1 1 600 3 650 3 650 Oct 1 Balance b/d 3 580


20X9 Sept 14 Accounts payable control GJ1 860

Office Supplies Folio 767

20X9 20X9 Sept 10 Accounts payable control GJ1 1 900 Sept 21 Accounts payable control GJ1 180

30 Balance c/d 1 720 1 900 1 900

Oct 1 Balance b/d 1 720

Accounts Receivable Ledger R Stone Folio 115.1

Date Particulars Folio Debit Credit Balance20X9 Sept 18 Service revenue GJ1 715 715 DR

24 Bank GJ1 300 415 DR 29 Service revenue GJ1 77 338 DR

N Younis Folio 115.2Date Particulars Folio Debit Credit Balance20X9 Sept 27 Service revenue GJ1 1 760 1 760 DR


140

Accounts Payable Ledger

R Lee Folio 305.1Date Particulars Folio Debit Credit Balance20X9 Sept 10 Office supplies GJ1 2 090 2 090 CR

21 Office supplies GJ1 198 1 892 CR

Ad Co Folio 305.2

Date Particulars Folio Debit Credit Balance20X9 Sept 14 Advertising GJ1 946 946 CR

(b)

I Lucas Trial balance as at 30 September 20X9

Debit Credit $ $ Accounts receivable control 2 098 Bank 72 640 GST paid 258 Accounts payable control 2 838 GST collected 358 Loan from Ozzie 45 000 Capital 25 800 Service revenue 3 580 Advertising 860 Office supplies 1 720 77 576 77 576

(c) Schedule of Accounts Receivable Balances

$ R Stone 338 N Younis 1 760 Balance as per accounts receivable control 2 098


R Lee 1 892 Ad Co 946 Balance as per accounts payable control 2 838

Solution 7.7 (a)

General ledger of R Clift Inventory Folio 110

20X6 20X6 Feb 21 Capital GJ1 10 000 Feb 22 Cost of goods sold GJ1 190

24 Accounts payable control GJ1 1 100 23 Cost of goods sold GJ1 1 200 26 Cost of goods sold GJ1 150 25 Cost of goods sold GJ1 630

A./c’s payable control GJ1 1 200 28 Drawings GJ1 230 Balance c/d 10 200 12 450 12 450

March 1 Balance b/d 10 200

Accounts Receivable Control Folio 11520X6 20X6 Feb 22 Sales GJ1 440 Feb 24 Bank GJ1 440

23 Sales GJ1 2 420 26 Sales GJ1 352 25 Sales GJ1 1 430 28 Balance c/d 3 498

4 290 4 290 March 1 Balance b/d 3 498

Bank Folio 125

20X6 20X6 Feb 21 Capital GJ1 20 000 Feb 27 Accounts payable control GJ1 3 968


141

24 Accounts receivable control GJ1 418 28 Balance c/d 16 450 20 418 20 418

March 1 Balance b/d 16 450

GST paid Folio 13520X6 20X6 Feb 24 Accounts payable control GJ1 110 Feb 27 Accounts payable control GJ1 22

25 Accounts payable control GJ1 48 28 Accounts payable control GJ1 11 26 Accounts payable control GJ1 120 Drawings GJ1 23

Balance c/d 222 278 278

March 1 Balance b/d 222

Motor Vehicle Folio 22520X6 Feb 21 Capital GJ1 30 000


20X6 20X6 Feb 27 Bank GJ1 4 210 Feb 21 Capital GJ1 3 000

28 Stationery GJ1 121 24 Inventory GJ1 1 210 Balance c/d 1 727 25 Stationery GJ1 528 26 Inventory GJ1 1 320 6 058 6 058 March 1 Balance b/d 1 727


20X6 20X6 Feb 24 Accounts receivable control GJ1 2 Feb 22 Accounts receivable control GJ1 40

26 Accounts receivable control GJ1 32 23 Accounts receivable control GJ1 220 28 Balance c/d 356 25 Accounts receivable control GJ1 130

390 390 March 1 Balance b/d 356

Capital Folio 455

20X6 Feb 21 Assets & liabilities GJ1 57 000

Drawings Folio 460

20X6 Feb 28 Inventory GJ1 253

Sales Folio 505

20X6 20X6 Feb 26 Accounts receivable control GJ1 320 Feb 22 Accounts receivable control GJ1 400

28 Balance c/d 3 580 23 Accounts receivable control GJ1 2 200 25 Accounts receivable control GJ1 1 300 3 900 3 900 March 1 Balance b/d 3 580


20X6 Feb 27 Accounts payable control GJ1 220


20X6 20X6 Feb 22 Inventory GJ1 190 Feb 26 Inventory GJ1 150

23 Inventory GJ1 1 200 28 Balance c/d 1 870 25 Inventory GJ1 630

2 020 2 020 March 1 Balance b/d 1 870


20X6 20X6


142

Feb 25 Accounts payable control GJ1 480 Feb 28 Accounts payable control GJ1 110 Balance c/d 370 480 480

March 1 Balance b/d 370

Discount Allowed Folio 78520X6 Feb 24 Accounts receivable control GJ1 20

R Clift

Accounts Payable Ledger J Lee Folio 305.1

Date Particulars Folio Debit Credit Balance20X6 Feb 21 Balance 3 000 3 000 CR

24 Inventory GJ1 1 210 4 210 CR 27 Bank GJ1 4 210 Nil

R Bock Folio 305.2

Date Particulars Folio Debit Credit Balance20X6 Feb 25 Stationery GJ1 528 528 CR

28 Stationery (returns) GJ1 121 407 CR

M Such Folio 305.3Date Particulars Folio Debit Credit Balance20X6 Feb 26 Inventory GJ1 1 320 1 320 CR

R Clift Accounts Receivable Ledger

R Best Folio 115.1Date Particulars Folio Debit Credit Balance20X6 Feb 22 Sales GJ1 440 440 DR

24 Bank GJ1 440 Nil 25 Sales GJ1 1 430 1 430 DR 26 Sales (returns) GJ1 352 1 078 DR

R Bay Folio 115.2

Date Particulars Folio Debit Credit Balance20X6 Feb 23 Sales GJ1 2 420 2 420 DR

(b) R Clift

Trial balance as at 28 February 20X6 Debit Credit $ $ Inventory 10 200 Accounts receivable control 3 498 Bank 16 450 GST paid 222 Motor vehicles 30 000 Accounts payable control 1 727 GST collected 356 Capital 57 000 Drawings 253 Sales 3580 Discount received 220 Cost of goods sold 1 870 Stationery 370 Discount allowed 20 62 883 62 883



143

$ R Best 1 078 R Bay 2 420 Balance as per accounts receivable control 3 498


R Bock 407 M Such 1 320 Balance as per accounts payable control 1 727

Solution 7.8 (a)

General Ledger of J Fisher Inventory Folio 110

20X8 20X8 Mar 1 Capital GJ1 30 000 Mar 29 Drawings GJ1 130

31 Accounts payable control PJ1 1 160 30 Donations GJ1 150 Bank

CPJ1 140 31 Cost of goods sold SJ1 364

Cost of goods sold CR1 530 Balance c/d 30 126

31 300 31 300 Apr 1 Balance b/d 30 126


20X8 20X8 Mar 1 Capital – J Fisher GJ1 10 250 Mar 31 Bank CR1 3 124

31 Sales SJ1 2 882 Bad debts GJ1 1 023 Balance c/d 8 985 13 132 13 132

Apr 1 Balance b/d 8 985

Bank Folio 12520X8 20X8 Mar 1 Capital – J Fisher GJ1 40 000 Mar 31 Payments CPJ1 2 110

31 Receipts CR1 4 257 Balance c/d 42 147 44 257 44 257


GST paid Folio 13520X8 20X8 Mar 1 Capital – J Fisher GJ1 870 Mar 29 Drawings GJ1 13

Mar 31 A/cs payable control PJ1 186 30 Donations GJ1 15 Bank CPJ1 43 31 Balance c/d 1071 1 099 1 099


Plant Folio 22020X8 Mar 1 Capital – J Fisher GJ1 16 000


20X8 20X8 Mar 1 Capital – J Fisher GJ1 11 200 Mar 31 A/cs receivable control SJ1 1 900

Balance c/d 9 300 11 200 11 200


Furniture & Equipment Folio 23020X8 20X8

Mar 1 Capital – J Fisher GJ1 6 000 Mar 31 Bank CR1 70 31 A/cs payable control PJ1 700 A/cs receivable control SJ1 110

Bank CPJ1 250 Balance c/d 6 770 6 950 6 950



144


20X8 20X8 Mar 31 Bank CPJ1 1 505 Mar 1 Capital – J Fisher GJ1 2 470

Balance c/d 3 011 31 Purchases PJ1 2 046 4 516 4 516 Apr 1 Balance b/d 3 011


20X8 20X8 Mar 31 A/cs receivable control GJ1 93 Mar 1 Capital – J Fisher GJ1 1 090

Balance c/d 1 362 31 A/cs receivable control SJ1 262 Bank CR1 103 1 455 1 455 Apr 1 Balance b/d 1 362

Capital – J Fisher

20X8 Mar 1 Assets & liabilities GJ1 110 760

Drawings Folio 460

20X8 Mar 29 Inventory GJ1 143

31 Bank CPJ1 132 275

Sales Folio 505

20X8 Mar 31 A/cs receivable control GJ1 610 Bank CR1 960 1 570


20X8 Mar 31 Bank

CPJ1 80


20X8 Mar 31 Inventory SJ1 364

Bank CR1 530 894


20X8 Mar 31 Bank CPJ1 120

Donations Folio 777

20X8 Mar 30 Inventory GJ1 165

Accounts Receivable Ledger of J Fisher

W Black Folio 115.1 Date Particulars Folio Debit Credit Balance20X8

Mar 1 Balance GJ1 3 750 3 750 DR 3 Sales SJ1 308 4 058 DR

16 Sales (returns) SJ1 11 4 047 DR 25 Bank CR1 261 3 786 DR 30 Bank (chq dishonoured) CR1 261 4 047 DR 31 Bank CR1 3 024 1 023 DR

Bad Debts Folio 78720X8

Mar 31 A/cs receivable control GJ1 930


145

Bad debts GJ1 1 023 Nil

B Day Folio 115.2 Date Particulars Folio Debit Credit Balance20X8

Mar 1 Balance GJ1 6 500 6 500 DR 14 Sales SJ1 374 6 874 DR 25 Bank CR1 100 6 774 DR

W Blue Folio 115.3

Date Particulars Folio Debit Credit Balance20X8 Mar 23 Furniture & equipment SJ1 121 121 DR

Ryde Motor Cycles Folio 115.4

Date Particulars Folio Debit Credit Balance20X8 Mar3 1 Motor vehicle SJ1 2 090 2 090 DR

Accounts Payable Ledger of J Fisher

P Perkins Folio 305.1 Date Particulars Folio Debit Credit Balance20X8

Mar 1 Balance GJ1 1 230 1 230 CR 2 Inventory PJ1 297 1 527 CR

13 Inventory returns PJ1 22 1 505 CR 22 Inventory PJ1 110 1 615 CR 27 Bank CPJ1 1 505 110 CR

J Parker Folio 305.2


Mar 1 Balance GJ1 1 240 1 240 CR 7 Inventory PJ1 891 2 131 CR

C Harris Folio 305.3


Mar 5 Furniture & equipment PJ1 770 770 CR

(b) Trial Balance of J Fisher as at 31 March 20X8

$ $ Inventory 30 126 Accounts receivable control 8 985 Bank 42 147 GST paid 1 071 Plant 16 000 Motor vehicles 9 300 Furniture & equipment 6 770 Accounts payable control 3 011 GST clearing 1 362 Capital – J Fisher 110 760 Drawings 275 Sales 1 570 Discount received 80 Cost of goods sold 894 Advertising 120 Donations 165 Bad debts 930 116 783 116 783


$ W Blue 121 B Day 6 774


146

Ryde Motor Cycles 2 090 Balance as per accounts receivable control 8 985


$ P Perkins 110 J Parker 2 131 G Harris 770 Balance as per accounts payable control 3 011

Solution 7.9 (a)

General Ledger of A Ford Inventory Folio 110

20X8 20X8 July 1 Capital GJ1 8 000 July 6 Drawings GJ1 60

31 Accounts payable control PJ1 560 31 Cost of goods sold SJ1 620 Cost of goods sold CR1 860 Balance c/d 7 020 8 560 8 560


Accounts Receivable Control Folio 11520X8 20X8

July 1 Capital – A Ford GJ1 1 314 July 31 Bad debts GJ1 352 31 Sales SJ1 1 518 Bank CR1 257

Balance c/d 2 223 2 832 2 832


Bank Folio 12520X8 20X8

July 1 Capital – A Ford GJ1 2 450 July 31 Payments 3 097 31 Receipts 2 149 Balance c/d 1 502

4 599 4 599 Aug 1 Balance b/d 1 502

GST paid Folio 135

20X8 20X8 July 1 Capital GJ1 40 July 6 Drawings GJ1 6

Accounts payable control GJ1 67 Bank CPJ1 11 31 Balance c/d 112 118 118

Aug 1 Balance b/d 112

Office Equipment Folio 23020X8 July 31 A/cs payable control PJ1 110


20X8 20X8 July 31 Bank CPJ1 1 100 July 1 Capital GJ1 1 595

Balance c/d 1 232 31 Purchases 737 2 332 2 332 Aug 1 Balance b/d 1 232


20X8 20X8 July 31 Accounts receivable control GJ1 32 July 1 Capital – A Ford GJ1 70

Balance c/d 348 31 Ac/s receivable control SJ1 138 Bank CR1 172 380 380 Aug 1 Balance b/d 348

Capital – A Ford Folio 455

20X8


147

July 1 Assets & liabilities GJ1 10 139

Drawings Folio 46020X8 July 6 Inventory GJ1 66

Sales Folio 505

20X8 July 31 Bank CR1 1 720 A/cs receivable control GJ1 1 380 3 100




20X8 July 31 Inventory SJ1 620

Inventory CR1 860 1 480



Wages & Salaries Folio 740

20X8 July 31 Bank CPJ1 1 876

Bad Debts Folio 787

20X8 July 31 A/cs receivable control GJ1 320

Accounts Payable Ledger

J Crane Folio 305.1Date Particulars Folio Debit Credit Balance20X8

July 1 Balance 145 145 CR 15 Inventory PJ1 143 288 CR

R Pepper Folio 305.2


July 1 Balance 350 350 CR 27 Inventory PJ1 473 823 CR

K Blue Folio 305.3


July 1 Balance 1 100 1 100 CR 27 Bank CP1 1 100 Nil

J Wedderburn Folio 305.4

Date Particulars Folio Debit Credit Balance20X8 July 21 Office equipment PJ1 121 121 CR

Accounts Receivable Ledger

T Roberts Folio 115.1Date Particulars Folio Debit Credit Balance20X8

July 1 Balance 187 187 DR 2 Sales SJ1 253 440 DR

31 Sales CR1 88 352 DR Bad debts GJ1 352 Nil


148

M Carroll Folio 115.2


July 1 Balance 369 369 DR 4 Bank CR1 169 200 DR

15 Sales SJ1 1 342 1 542 DR 27 Sales (returns) SJ1 374 1 168 DR

J Jonnies Folio 115.3


July 1 Balance 758 758 DR Bank CR1 758 Nil

19 Sales SJ1 297 297 DR 26 Bank (chq dishonoured) CR1 758 1 055 DR

(b) Trial Balance of A Ford as at 1 July 20X8

$ $ Inventory 7 020 Accounts receivable control 2 223 Bank 1 502 GST paid 112 Office equipment 110 Accounts payable control 1 232 GST collected 348 Capital – A Ford 10 139 Drawings 66 Sales 3 100 Discount received 30 Cost of goods sold 1 480 Advertising 140 Wages & salaries 1 876 Bad debts 320 14 849 14 849


$ M Carroll 1 168 J Jonnies 1 055 Balance as per accounts receivable control 2 223

Schedule of Accounts Payable Balances $ J Crane 288 R pepper 823 J Wedderburn 121 Balance as per accounts payable control 1 232

Solution 7.10 (a)

General Ledger of R David Inventory Folio 110

20X8 20X8 May 1 Capital GJ1 50 000 May 31 Cost of goods sold SJ1 1 945

31 Accounts payable control PJ1 920 Balance c/d 50 165 Bank

CPJ1 1 190

52 110 52 110 June 1 Balance b/d 50 165


20X8 20X8 May 1 Capital – R David GJ1 10 635 May 29 Bad debts GJ1 1 859

1 Sales SJ1 5 115 31 Bank CR1 4 660 Balance c/d 9 231 15 750 15 750


149

June1 Balance b/d 9 231 Bank Folio 125

20X8 20X8 May 31 Receipts CR1 7 649 May 1 Capital – R David GJ1 9 600

Balance c/d 6 547 31 Bank CPJ1 4 596 14 196 14 196 June 1 Balance b/d 6 547


20X8 May 1 Capital – R David GJ1 700

GST paid Folio 135

20X8 May 1 Capital – R David GJ1 1 700

31 Accounts payable control PJ1 107 Bank CPJ1 115 1 922

Land & Buildings Folio 210


Plant & Machinery Folio 215




Office Furniture & Equipment Folio 230

20X8 20X8 May 1 Capital – R David GJ1 9 400 May 31 A/cs receivable control SJ1 900

Balance c/d 8 500 9 400 9 400

June 1 Balance b/d 8 500

Investments Folio 26020X8 May 1 Capital – R David GJ1 60 000


20X8 20X8 May 31 Bank CPJ1 1 912 May 1 Capital – R David GJ1 4 361

Balance c/d 4 472 31 Purchases PJ1 2 023 6 384 6 384 June 1 Balance b/d 4 472


20X8 20X8 May 29 Accounts receivable control GJ1 169 May 1 Capital – R David GJ1 2 100

31 Bank CR1 1 31 A/cs receivable control SJ1 465 Balance c/d 2 395 2 565 2 565 June 1 Balance b/d 2 395

Capital – R David Folio 455

20X8 May 1 Assets & liabilities GJ1 359 574 4 Motor vehicle GJ1 20 240 379 814

Sales Folio 505


150

20X8 May 31 A/cs receivable control SJ1 3 750

Interest Income Folio 515

20X8 May 31 Bank CR1 3 000


20X8 May 31 Bank CPJ1 40


20X8 May 31 Inventory SJ1 1 945


20X8 May 31 Bank CR1 10

Wages Folio 740

20X8 May 31 Bank CPJ1 1 320

Rates Folio 760

20X8 May 1 A/cs payable control PJ1 846

Stationery Folio 76220X8 May 31 A/cs payable control PJ1 150

Bad Debts Folio 787

20X8 May 31 A/cs receivable control GJ1 1 690


20X8 May 31 Bank CPJ1 99

Accounts Receivable Ledger of R David

W Scott Folio 115.1 Date Particulars Folio Debit Credit Balance20X8

May 1 Balance 4 019 4 019 DR 29 Bank CR1 2 160 1 859 DR

Bad debts GJ1 1 859 Nil

W Janine Folio 115.2 Date Particulars Folio Debit Credit Balance20X8

May 1 Balance 3 622 3 622 DR Sales SJ1 1 045 4 667 DR

8 Sales (returns) SJ1 110 4 557 DR 13 Bank CR1 3 622 935 DR 16 Bank – dishonoured chq CR1 3 622 4 557 DR 28 Bank 500 4 057 DR

W Payne Folio 115.3


May 1 Balance 2 994 2 994 DR 5 Bank CR1 1 549 1 445 DR

23 Sales SJ1 2 739 4 184 DR

W Susan Folio 115.4 Date Particulars Folio Debit Credit Balance20X8


151

May 11 Sales 451 451 DR 18 Bank CR1 451 Nil

C Palmer Folio 115.5

Date Particulars Folio Debit Credit Balance20X8 May 15 Furniture & equipment SJ1 990 990 DR

Accounts Payable Ledger of R David

W Laurence Folio 305.1 Date Particulars Folio Debit Credit Balance20X8

May 1 Balance 1 912 1 912 CR 6 Bank CPJ1 1 912 Nil

22 Inventory 253 253 CR 25 Inventory – returns 44 209 CR

W Gillett Folio 305.2


May 1 Balance 1 004 1 004 CR W Renae Folio 305.3


May 1 Balance 1 445 1 445 CR

C Gillett Folio 305.4 Date Particulars Folio Debit Credit Balance20X8

May 6 Inventory PJ1 803 803 CR

Bangor Office Supplies Folio 305.5 Date Particulars Folio Debit Credit Balance20X8 May 19 Stationery PJ1 198 198 CR

26 Stationery overcharge PJ1 33 165 CR

Hiland Council Folio 305.6 Date Particulars Folio Debit Credit Balance20X8 May 24 Rates PJ1 846 846 CR

(b)

Trial Balance of R David as at 31 May 20X8 $ $ Inventory 50 165 Accounts receivable control 9 231 Bank 6 547 Petty Cash 700 GST paid 1 922 Land & buildings 195 000 Plant & machinery 48 200 Motor vehicles 20 240 Office furniture & equipment 8 500 Investments 60 000 Accounts payable control 4 472 GST collected 2 395 Capital – R David 379 814 Sales 3 750 Interest income 3 000 Discount received 40 Cost of goods sold 1 945 Wages 1 320 Rates 846 Stationery 150 Discount allowed 10


152

Bad debts 1 690 Bank charges 99 400 018 400 018

(c)

Schedule of Accounts Receivable Balances $ W Janine 4 057 W Payne 4 184 C Palmer 990 Balance as per accounts receivable control 9 231


$ W Laurence 209 W Gillett 1 004 C Gillett 803 W. Renae 1 445 Bangor Office Supplies 165 Hiland Council 846 Balance as per accounts payable control 4 472

Solution 7.11 (a) & (b)

General Ledger of Percy Brown Inventory Folio 110

20X2 20X2 July 1 Balance b/d 10 500 July 31 Cost of goods sold 14 500

31 Bank 8 000 15 Drawings 50 Accounts payable control 5 960 31 Cost of goods sold 5 000 Balance c/d 4 910 24 460 24 460

Aug 1 Balance c/d 4 910

Accounts Receivable Control Folio 11520X2 20X2 July 1 Balance b/d 9 800 July 7 Bad debts 77

31 Sales 10 835 31 Receipts 8 099 Late fee income 11 Balance c/d 12 470 20 646 20 646


Bank Folio 12520X2 20X2 July 1 Balance b/d 12 300 July 31 Payments 17 085

31 Receipts 35 500 Balance c/d 30 715 47 800 47 800


Petty Cash Folio 13020X2 July 1 Balance b/d 100

GST paid Folio 135

20X2 20X2 July 1 Balance b/d 580 Jul 15 Drawings 5

Bank ** 1 066 31 Balance c/d 2 237 A/cs payable control 596 2 242 2 242


** 1 070 less 4 from discount received

Machinery & Equipment Folio 22020X2 July 1 Balance b/d 15 000


153

Accounts Payable Control Folio 30520X2 20X2

July 31 Bank 4 844 July 1 Balance b/d 5 100 Balance c/d 6 812 31 Inventory 6 556 11 656 11 656 Aug 1 Balance c/d 6 812


20X2 20X2 July 31 A/cs receivable control 7 July 1 Balance b/d 470

Balance c/d 3 940 31 A/cs receivable control 1 Bank * 2 491 A/cs receivable control 985 3 947 3 947 Aug 1 Balance b/d 3 940

* 2 500 less 9 from discount allowed Loan from ABX Ltd Folio 410


Capital – Percy Brown Folio 455


Drawings Folio 460

20X2 July 15 Inventory 55

31 Bank 500 555

Sales Folio 505

20X2 July 31 Bank 25 000 A/cs receivable control 9 850 34 850



Late fee Income Folio 515

20X2 July 17 A/cs receivable control 10


20X2 July 31 Inventory 14 500

Inventory 5 000 19 500





Wages Folio 740

20X2 July 31 Bank 2 000

Rent Folio 745



154

Telephone Folio 75520X2 July 31 Bank 175

Postage Folio 757




Bad Debts Folio 787

20X2 July 7 A/cs receivable control 70

(c)

Trial Balance of Percy Brown as at 31 July 20X2 $ $ Inventory 4 910 Accounts receivable control 12 470 Bank 30 715 Petty cash 100 GST Paid 2 237 Machinery & equipment 15 000 Accounts payable control 6 812 GST collected 3 940 ABX Ltd Advance 10 000 Capital – B Lawrence 32 710 Drawings 555 Sales 34 850 Discount received 40 Late fee income 10 Cost of goods sold 19 500 Discount allowed 90 Advertising 150 Wages 2 000 Rent 200 Telephone 175 Postage 100 Stationery 75 Bad debts 70 Bank charges 15 88 362 88 362

Solution 7.12 (a)

Accounts Receivable Control 20X3 20X3 June 1 Balance b/d 174 300 June 30 Bank 297 600

30 Sales 308 506 Discount allowed 7 800 Balance c/d 177 406 482 806 482 806

July 1 Balance b/d 177 406 (b)

Accounts Receivable Control 20X3 20X3 June 1 Balance b/d 88 100 June 30 Bank 183 500

30 Sales 163 900 Discount allowed 700 Bad debts 1 804 Balance c/d 65 996 252 000 252 000

July 1 Balance b/d 65 996

Bank Charges Folio 79220X2 July 31 Bank 15


155

(c) Accounts Receivable Control

20X3 20X3 June 1 Balance b/d 45 200 June 30 Bank 107 400

30 Sales 121 308 Discount allowed 300 Bad debts recovered 2 805 Balance c/d 61 613 169 313 169 313

July 1 Balance b/d 61 613

Solution 7.13 (a)

Accounts Payable Control 20X9 20X9 May 31 Bank 194 300 May 1 Balance b/d 101 100

Discount received 1 700 31 Inventory (Purchases) 183 590 Balance c/d 88 690 284 690 284 690 June 1 Balance b/d 88 690

(b) Accounts Payable Control

20X9 20X9 May 31 Bank 137 800 May 1 Balance b/d 129 200

Discount received 2 300 31 Inventory (Purchases) 201 410 Balance c/d 191 170 Late fee expense 660 331 270 331 270 June 1 Balance b/d 191 170

(c) Accounts Payable Control

20X9 20X9 May 31 Bank 71 900 May 1 Balance b/d 68 400

Discount received 700 31 Inventory (Purchases) 22 990 Balance c/d 20 088 Late fee expense 1 298 92 688 92 688 June 1 Balance b/d 20 088

Solution 7.14 Accounts Receivable Control

20X1 20X1 Mar 1 Balance b/d 2 300 Mar 31 Bank 2 080

Sales 1 925 Disc allowed & GST 50 Bad debts recovered 77 Bad debts 121 Balance c/d 2 051 4 302 4 302


Accounts Payable Control 20X1 20X1 Mar 31 Bank 1 320 Mar 1 Balance b/d 3 400

Disc rec’d & GST 20 Inventory (Purchases) 1 100 Balance b/d 3 160 4 500 4 500 Apr 1 Balance b/d 3 160


20X7 20X7 July 1 Balance b/d 8 115 Dec 31 Sales (returns) 220

Dec 31 Sales 37 961 Bad debts 286 Late fee income 429 Bank 39 755 Dis allowed & GST 666 Balance c/d 5 578

20X8 46 505 46 505 Jan 1 Balance b/d 5 578

Accounts Payable Control

20X7 20X7 Dec 31 Inventory returns 110 July 1 Balance b/d 14 223


156

Bank 24 982 Dec 31 Inventory (Purchases) 31 625 Disc rec & GST 198 Balance c/d 20 558 45 848 20X8 45 848 Jan 1 Balance b/d 20 558


20X2 20X2 Nov 1 Balance b/d 101 480 Nov 30 Bad debts 3 795

30 Sales 84 117 Bank 67 900 Bad debts recovered 990 Balance c/d 114 892 186 587 186 587

Dec 1 Balance b/d 114 892

Accounts Payable Control 20X2 20X2

Nov 30 Bank 47 470 Nov 1 Balance b/d 41 090 Balance c/d 51 766 30 Inventory (Purchases) 58 146 99 236 99 236 Dec 1 Balance b/d 51 766


20X6 20X6 May 1 Balance b/d 63 490 May 31 Bank 142 890

31 Sales 228 591 Bad debts 3 740 Bad debts recovered 4 070 Balance c/d 157 621 Late fee income 8 100 304 251 304 251

June 1 Balance b/d 157 621

Accounts Payable Control 20X6 20X6

May 31 Bank 89 990 May 1 Balance b/d 89 610 Balance c/d 151 816 31 Inventory 152 196 241 806 241 806 June 1 Balance b/d 151 816


157

Solution 7.18

Cash payments journal of R Gooney CP1

Date Chq no:

Payee and/or

Particulars Folio Bank A/cs Pay Disc rec’d Inventory Wages

Bank charges GST paid

20X2 $ $ $ $ $ $ $

Nov 16 H Gant 3 482 3 553 (65) (6) 28 H Gant 10 202 10 296 (86) (8)

Nov 28 – Payment is made up as follows: Invoice 3665 $5 588 (Invoice $5 632 less credit note $44 = $5 588) (Bank $5 588) Invoice 4511 $4 708 (Bank $4 614; Discount received $86; GST paid $8)

Accounts payable ledger of R Gooney

H Gant Folio no: 305.1

Date Particulars Folio Debit Credit Balance

20X2 Nov 2 Inventory (invoice 2818) PJ1 3 553 3 553 Cr

7 Inventory (invoice 3665) PJ1 5 632 9 185 Cr 13 Inventory (credit note 1577) PJ1 44 9 141 Cr 14 Inventory (invoice 4511) PJ1 4 708 13 849 Cr 16 Bank CP1 3 482 10 367 Cr

Discount received CP1 71 10 296 Cr 28 Bank CP1 10 202 94 Cr

Discount received CP1 94 Nil


158

Solution 7.19

Cash payments journal of A Davison CP1

Date Chq no:

Payee and/or

Particulars Folio Bank A/cs Pay

Disc rec’d Inventory Wages

Bank charges GST paid

20X0 $ $ $ $ $ $ $

Jan 8 W Atters 642 676 (31) (3) 15 W Atters 749 788 (35) (4)

29 W Atters 1 464 1 489 (23) (2)

Jan 29 – Payment is made up as follows: Invoice 859 $977 (Bank $977) Invoice 927 $512 (Bank $487; Discount received $23; GST paid $2)

Accounts payable ledger of A Davison

W Atters Folio no: 305.1


20X0 Jan 1 Inventory (invoice 671) PJ1 676 676 Cr

8 Inventory (invoice 732) PJ1 813 1 489 Cr Bank CP1 642 847 Cr Discount received CP1 34 813 Cr

12 Inventory (credit note 25) PJ1 25 788 Cr Inventory (invoice 859) PJ1 977 1 765 Cr

15 Bank CP1 749 1 016 Cr Discount received CP1 39 977 Cr

22 Inventory (invoice 927) PJ1 512 1 489 Cr 29 Bank CP1 1 464 25 Cr

Discount received CP1 25 Nil

Solution 7.20 Statement of reconciliation M Morgan

$ $

Balance as per statement dated 30 April 20X7 366 Less: Invoices not yet received 503 26 Apr 20X7 77 644 30 Apr 20X7 130 207 159 Less: Discount received not yet processed 22 Apr 20X7 11 11

Balance as per subsidiary ledger 148

The following action should be taken:

Make inquiries as to why the discount of $11 for the payment made on 22 April has not been processed.

The outstanding invoices are at the end of the month and may be in process. General inquiry only required at this stage.


159

Solution 7.21

Statement of reconciliation S Moker $ $

Balance as per statement dated 31 July 20X6 10 623 Less: Invoices not yet received 49148 7 July 20X6 5 834 50912 23 July 20X6 1 001 6 835 3 788 Less: Payment not yet processed 20 July 20X6 910 910 2 878 Less: Credit note request not yet processed 24 July 20X6 682 682 2 196 Add: Underpayment: Invoice 48312 shown as 1 268 Subsidiary ledger shown as 1 286 18

Balance as per subsidiary ledger 2 214

Obtain details of invoices not yet received. Of particular interest is the 7 July 20X6 invoice as this is well overdue.

Make inquiries as to why the payment made on 20 July 20X6 has not been processed. Make inquiries regarding credit note request of 24 July 20X6. Determine which amount for invoice 48312 is correct.


160

Solution 7.22 J Press Remittance Advice 30 November 20X0

To: L Tuffs Account No: 025

Date Particulars Debit Credit Balance

20X0 $ $ $

Nov 3 Purchases invoice 2678 1 329 1 329 6 Purchases credit 1013 191 1 138

10 Purchases invoice 2696 2 876 4 014 17 Purchases invoice 2737 606 4 620 20 Purchases credit 1037 242 4 378 30 Discount taken 109 4 269

Cheque attached 4 269

The accounts receivable subsidiary ledger for J Press revealed:

Accounts receivable ledger of L Tuffs

J Press Folio no: 115.1


20X0 Oct 14 Sales (invoice 2530) SJ1 2 072 2 072 Dr

21 Sales (invoice 2678) SJ1 1 329 3 401 Dr

28 Sales (credit note 1013) SJ1 191 3 210 Dr

Nov 7 Sales (invoice 2696) SJ1 2 876 6 086 Dr

Bank (receipt 63) CR1 2 072 4 014 Dr

14 Sales (invoice 2737) SJ1 660 4 674 Dr

17 Sales (credit note 1037) SJ1 242 4 432 Dr

26 Sales (invoice 2889) SJ1 3 484 7 916 Dr


Sales invoice 2737 has been recorded differently. Check back to sales invoice to see which amount is correct ($660 or $606). If our figures are correct notify debtor. If the debtor has correctly recorded the amount it will be necessary to update our journals and posting to subsidiary ledger.

Ensure the terms of discount have been met to determine if discount of $109 claimed meets the terms. If terms met, then process discount allowed in journal. If terms of discount have not been met then advise debtor.

$ $

Balance as per debtor’s subsidiary ledger account as at 30 November 20X0 7 916 Less: Invoices not paid

2889 (26 Nov 20X0) 3 484 3 484 4 432 Less: Invoice short paid by customer

2737 (14 Nov 20X0) Should be 660 Paid as 606 54

4 378 Less discount not yet recorded in our records 109 Amount as per remittance advice 4 269


161

Solution 7.23

S Grace Remittance Advice 30 April 20X9

To: A Celeste Account No: 3131

Date Particulars Debit Credit Balance 20X9 $ $ $

Apr 4 Purchases invoice 12631 229 229 6 Purchases invoice 11876 90 319 9 Purchases invoice 12043 74 393

15 Purchases invoice 12831 84 477 27 Purchases credit 2637 31 446 30 Discount 11 435

Cheque attached 435

The accounts receivable subsidiary ledger for S Grace revealed:

Accounts receivable ledger of A Celeste

S Grace Folio no: 115.1


20X9 Mar 1 Sales (invoice 11403) SJ1 281 281 Dr

4 Sales (invoice 11514) SJ1 264 545 Dr

278 Sales (invoice 11876) SJ1 90 635 Dr

10 Sales (credit note 2031) SJ1 58 577 Dr 15 Sales (credit note 2139) SJ1 22 555 Dr

Sales (invoice 11989) SJ1 60 615 Dr 20 Sales (invoice 12043) SJ1 74 689 Dr 30 Sales (invoice 12514) SJ1 257 946 Dr

Apr 3 Bank rec no: 141 CR1 484 462 Dr Discount: 141 CR1 39 423 Dr

11 Sales (invoice 12631) SJ1 229 652 Dr 19 Sales (invoice 12831) SJ1 84 736 Dr 21 Sales (credit note 2589) SJ1 51 685 Dr 28 Sales (credit note 2637) SJ1 31 654 Dr 30 Sales (invoice 13412) SJ1 546 1 200 Dr


Sales invoice 11989 from 15 March 20X9 and 12514 from 30 March 20X9 are still outstanding. Contact debtor to follow up payment.

Similarly credit note 2031 from 10 March 20X9 has not been recorded by debtor. Follow up with debtor.

Ensure the terms of discount have been met to determine if discount of $11 claimed meets the terms. If terms met, then process discount allowed in journal. If terms of discount have not been met then advise debtor.

$ $

Balance as per debtor’s subsidiary ledger account as at 30 April 20X9 1 200 Less: Invoices not paid

11989 (15 March 20X9) 60 12514 (30 March 20X9) 257 13412 (30 April 20X9) 546 863


162

337 Add: Credit note not yet claimed

2031 (10 March 20X9) 58 2589 (21 March 20X9) 51 109

446 Less discount not yet recorded in our records 11 Amount as per remittance advice 435


163

Solution 7.24

Match invoices to payments and tick () both.

Accounts receivable ledger of E Cashman

J Slade Folio no: 115.1


20X4 Nov 1 Sales SJ1 770 770 Dr

15 Sales SJ1 880 1 650 Dr 30 Bank CR1 770 880 Dr

Dec 5 Sales SJ1 440 1 320 Dr

Jan 22 Sales SJ1 1 100 2 420 Dr

Feb 15 Bank CR1 440 1 980 Dr

28 Bank CR1 1 100 880 Dr

P Swine Folio no: 115.2


20X4 Nov 14 Sales SJ1 550 550 Dr

Dec 1 Sales SJ1 110 660 Dr

2 Bank CR1 550 110 Dr

Jan 4 Sales SJ1 775 885 Dr

Feb 18 Sales SJ1 555 1 440 Dr

19 Bank CR1 775 665 Dr

P Jumbuk Folio no: 115.3


20X4 Dec 15 Sales SJ1 670 670 Dr

Jan 1 Sales SJ1 1 112 1 782 Dr 12 Sales SJ1 660 2 442 Dr

22 Bank CR1 1 112 1 330 Dr

Feb 16 Sales SJ1 988 2 318 Dr

Record the outstanding invoices in accordance with their overdue period. It is sometimes easier to identify month of current, 30 days, etc.

Aged Debtors Report as at 28 February 20X4

Debtor Folio Total Current

(Feb)

30 days

(Jan)

60 days

(Dec)

90 days and over

(Nov)

J Slade 115.1 880 880 P Swine 115.2 665 555 110 P Jumbuk 115.3 2 318 988 660 670

TOTAL 3 863 1 543 660 780 880

The following outstanding invoices should be followed up: J Slade $880 dated 15 November – whilst this customer has paid subsequent invoices this invoice is still outstanding. Perhaps there is a dispute over this invoice. Ongoing consultation should be occurring and referring to supervisor as necessary and in accordance with organisational policy.


164

P Swine $110 dated 1 December – this customer has paid subsequent invoices and again may have overlooked this invoice or there may be a dispute. Ongoing consultation should be occurring and referring to supervisor as necessary and in accordance with organisational policy. P Jumbuk $670 dated 15 December and $660 dated 12 January – whilst this customer has paid a large invoice from 1 January it is unacceptable to have two invoices outstanding over 30 days. Consultation should be made with this customer and recommend to supervisor that credit is temporarily suspended until accounts are paid. All customers have invoices outstanding over 30 days. This means that the full payment within 30 days is not being met by any customer. It is important for the business cash flow that debtors pay their accounts within the terms of the credit policy. An overall review of credit policy may be warranted by management.


165

Solution 7.25

Match invoices to payments and tick () both.

Accounts receivable ledger of P Jess

R Kawal Folio no: 115.1


20X2 May 3 Sales SJ1 3 278 3 278 Dr

17 Sales SJ1 4 666 7 944 Dr 31 Sales SJ1 3 812 11 756 Dr

Jun 2 Bank CR1 7 090 4 666 Dr 14 Sales SJ1 4 012 8 678 Dr 28 Sales SJ1 4 533 13 211 Dr

Jul 1 Bank CR1 8 545 4 666 Dr 13 Sales SJ1 3 155 7 821 Dr 27 Sales SJ1 3 780 11 601 Dr

J Pham Folio no: 115.2


20X2 May 7 Sales SJ1 1 676 1 676 Dr

28 Sales SJ1 1 343 3 019 Dr Jun 5 Bank CR1 1 676 1 343 Dr

20 Sales SJ1 2 100 3 443 Dr 26 Bank CR1 1 343 2 100 Dr

Jul 11 Sales SJ1 1 245 3 345 Dr 31 Sales SJ1 1 877 5 222 Dr

C Litch Folio no: 115.3


20X2 May 7 Sales SJ1 1 340 1 340 Dr Jun 1 Sales SJ1 2 224 3 564 Dr

12 Sales SJ1 1 320 4 884 Dr 22 Bank CR1 1 340 3 544 Dr

Jul 16 Sales SJ1 1 976 5 520 Dr

Record the outstanding invoices in accordance with their overdue period. It is sometimes easier to identify month of current, 30 days, etc.

Aged Debtors Report as at 31 July 20X2

Debtor Folio Total Current

(Jul)

30 days

(Jun)

60 days

(May)

90 days and over

(Apr)

R Kawal 115.1 11 601 6 935 4 666 J Pham 115.2 5 222 3 122 2 100 C Litch 115.3 5 520 1 976 3 544

TOTAL 22 343 12 033 5 644 4 666

The following outstanding invoices should be followed up:


166

R Kawal $4 666 dated 17 May– whilst this customer has paid subsequent invoices this invoice is still outstanding. Perhaps there is a dispute over this invoice. Ongoing consultation should be occurring and referring to supervisor as necessary and in accordance with organisational policy. J Pham $2 100 dated 20 June – this customer has previously paid invoices within the 30 day period. This may have been an oversight. A courtesy call to the customer may suffice. C Litch $2 224 dated 1 June and $1 320 dated 12 June – this customer has previously taken 6 weeks to pay an invoice. The 1 June invoice is now 2 months overdue. It is a concern that the payment period is extending. It is unacceptable to have two invoices outstanding over 30 days. Consultation should be made with this customer and recommend to supervisor that credit is temporarily suspended until accounts are paid. All customers have invoices outstanding over 30 days. This means that the full payment within 30 days is not being met by any customer. It is important for the business cash flow that debtors pay their accounts within the terms of the credit policy. An overall review of credit policy may be warranted by management.

Documents

SUBSIDIARY LEDGERS – ACCOUNTS RECEIVABLE (DEBTORS) … · Chapter 7: Subsidiary Ledgers – Accounts Receivable (Debtors) and Accounts Payable (Creditors) 109 Capital Folio No 455