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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
Date Particulars Folio Debit Credit20X2 $ $
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
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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
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(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
Solutions to Accounting – A Practical Approach
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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
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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
Solutions to Accounting – A Practical Approach
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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
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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
Solutions to Accounting – A Practical Approach
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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
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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
Solutions to Accounting – A Practical Approach
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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
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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
Solutions to Accounting – A Practical Approach
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Solution 3.10 (a) General Journal of G Barclay GJ1
Date Particulars Folio Debit Credit20X4 $ $
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
Chapter 3: Service Industry Accounting
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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
Solutions to Accounting – A Practical Approach
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(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
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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
Solutions to Accounting – A Practical Approach
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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
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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
Solutions to Accounting – A Practical Approach
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(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
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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
Solutions to Accounting – A Practical Approach
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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
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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
Solutions to Accounting – A Practical Approach
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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
20X6 June 1 Capital GJ1 45 000
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
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Hotels 340 340 July 1 Balance b/d 337
Loan from Finance Co Folio no: 410
20X6 June 1 Capital GJ1 30 000
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
Solutions to Accounting – A Practical Approach
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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
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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
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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
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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