MAINTAIN A GENERAL LEDGER
and
PROCESS JOURNAL ENTRIES
STUDENT MANUAL
NAME: _____________
Maintain a General Ledger and Process Journal Entries
USING A TRANSACTION ANALYSIS CHART
TO UNDERSTAND TRANSACTIONS
Understanding transactions is fundamental to accounting.
A transaction analysis chart is a tool to help you understand transactions. It is not
a formal accounting record - just a tool. It will assist you to apply the debit and
credit rules of accounting. This is what a (blank) transaction analysis chart looks
like:
Date
Account
Category
Increase
Amount
(PEARL)
or
$
Decrease
Debit or Credit
DR
CR
$
$
We will use a chart like this with some practical exercises soon but first let's recap
some very important accounting concepts
An account is a detailed record for every item of value associated with a business.
There are five categories of accounts. These are: Proprietorship (also known as
Capital or Owner's Equity), Expenses, Assets, Revenue, Liabilities. A simple way
to remember the categories of account is the acronym PEARL. Accounts are
located in an orderly and logical manner according to their category and can be
found summarised (or indexed) in a Chart of Accounts.
Every business will have a Chart of Accounts which suits its needs. That means
that no two businesses will have exactly the same Chart of Accounts. However,
every Chart of Accounts will be similar in that it will have the five categories of
accounts. Also, many accounts are commonly used eg Cash at Bank, wages &
salaries, loan accounts, capital, sales and so on.
The most basic accounting equation is Assets = Equities (ie internal and external
liabilities). However, it is more practical to express the equation as: Assets =
Liabilities + Proprietorship.
A simple way to remember this is A = L + P. The Balance Sheet report of a
business reflects this equation.
If
A=L+P
then the following must also be true
L = A- P
and
P=A-L
HIT Newcastle V2.2008
2
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
The expanded accounting is Assets + Expenses = Proprietorship + Liabilities +
Revenue. The Profit & Loss report of a business reflects the revenue and expenses
part of this equation.
The debit and credit rules of accounting are based on the above accounting
equation. The following table may help you to remember the rules:
Remember the following rules:
Type of change
an increase in
whereas a decrease in
an increase in
whereas a decrease in
Type of Account
Type of entry
an asset or expense ledger
is recorded as a debit
account
entry
an asset or expense ledger
is recorded as a credit
account
entry
a liability or proprietorship or
is recorded as a credit
revenue ledger account
entry
a liability or proprietorship or
is recorded as a debit
revenue ledger account
entry
THE OPENING ENTRY
The Opening Entry lists balances for all Assets, Liabilities and Capital at the
commencement of the business.
The transaction is recorded in the General Journal and then posted to the General Ledger.
All General Journal transactions are accompanied by a ‘narration’, which describes the
transaction.
Activity 1 has been completed for your reference.
HIT Newcastle V2.2008
3
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
ANALYSE THE OPENING ENTRY
(Hint: you need the rules and the accounting equation for these activities - so keep
them handy)
Activity 1 - Example
Complete a transaction analysis chart to help you prepare the opening general journal
entry for the commencement of the company Flip Flop Ltd on 1 November 200X when the
owner contributed cash ($5000), stock ($2200), a motor vehicle ($11000), office furniture
($1650), and a loan from the XYZ Bank ($500). (You will need to calculate the amount for
the (proprietors) capital account).
Hint - Look at the Chart of Accounts
Date of
transaction
Nov 1
Accounts
being
affected
What
Category
is the
account
(PEARL)
Think about it
Is it an
increase
or a
decrease
to the
account
Hint - Look at the Rules
What is
the
amount
affecting
the
account
$
Will it be a Debit
or a Credit entry
to the account
DR
CR
$
$
Bank
Asset
Increase
5 000
5 000
Inventory
Asset
Increase
2 200
2 200
MV at Cost
Asset
Increase
11 000
11 000
Off Furn
Asset
Increase
1 650
1 650
Bank Loans
Liability
Increase
500
500
Now write up the general journal entry to record the opening entry. (The source of this
information is an internal memo dated 1 Nov 200X from the owner).
General Journal of Flip Flop Ltd
Date
Nov 1
GJI
Particulars
Fol
Cash at Bank
1.1
5 000
Inventory
1.4
2 200
MV at Cost
1.14
11 000
Office Furniture at Cost
1.16
1 650
Indent
Credits
DR
CR
Bank Loans
2.16
500
Capital
3.1
19 350
Being assets, liabilities and capital at this date
19 850
19 850
Narration
To calculate Capital: Add Dr and Cr columns and then deduct Cr from Dr; the difference is
the Capital. Assets – Liabilities = Capital
HIT Newcastle V2.2008
4
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
Post the General Journal to the General Ledger; insert Folios for cross reference as you post,
eg Journal # in the Ledger and Ledger Account No in the Journal.
The particulars information is the opposite account in the transaction. In the opening entry all
accounts are opposite to Capital, therefore, Capital is entered but in the Capital account,
Sundries is entered. (See below)
GENERAL LEDGER
Cash at Bank
Date
Nov
1
1.1
Particulars
Folio
Capital
GJ1
Debit
Credit
5 000 00
5 000 dr
Inventory
Date
Nov
1
1.4
Particulars
Folio
Capital
GJ1
Debit
Credit
2 200 00
1.14
Date
Particulars
Folio
Debit
Nov 1
Capital
GJ1
11 000
Particulars
Folio
Debit
Capital
GJ1
1 650
Debit
Credit
1
Balance
11 000 dr
Office Furniture at Cost
Nov
Balance
2 200 dr
Motor Vehicles at Cost
Date
Balance
1.16
Credit
Balance
1 650 dr
Bank Loans 2.16
Date
Nov
1
Particulars
Folio
Capital
GJ1
Particulars
Folio
Sundries
GJ1
Credit
500
Capital
500 cr
3.1
Date
Nov
Balance
1
Debit
Credit
19 350
Balance
19 350 cr
Generate a Trial Balance for the month. Note the final balance in the General Ledger is
entered in the Trial balance on the same side, eg Debit or Credit.
Account
No
1.1
14
1.14
1.16
2.16
3.1
HIT Newcastle V2.2008
Trial Balance of Flip Flop
As at 1 November 200X
Account
Name
Debit
Credit
Cash at Bank
5 000
Inventory
2 200
MV at Cost
11 000
Off Furn at Cost
1 650
Bank Loans
500
Capital
19 350
Total
19 850
19 850
MUST BE EQUAL
5
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
Activity 2
Complete a transaction analysis chart to help you prepare the opening general journal
entry for the commencement of the company Wilson's Haberdashery on 15 April 200X
when the owner contributed cash ($15,000), materials ($13,200), a motor vehicle
($17,600), office furniture ($3,300), and a loan from the BMI Credit Union ($5,500) and a
sundry creditor Robertson ($2,200). (You will need to calculate the amount for the
(proprietor’s) capital account).
Hint - Look at the Chart of Accounts
Date of
transaction
Accounts
being affected
Think about it
What
Category is
the
account
(PEARL)
Is it an
increase
or a
decrease
to the
account
Hint - Look at the Rules
What is the
amount
affecting
the
account
$
Will it be a Debit or a
Credit entry to the
account
DR
CR
$
$
Now write up a general journal entry to record the opening entry. The source of this
information is an internal memo dated 15 April 200X from the Accountant
General Journal of Wilson’s Haberdashery
Date
Particulars
GJ1
Fol
DR
CR
April 15
HIT Newcastle V2.2008
6
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
GENERAL LEDGER
Cash at Bank
Date
1.1
Particulars
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Inventory
Date
1.4
Motor Vehicles at Cost
Date
1.14
Particulars
Office Furniture at Cost
Date
1.16
Particulars
Bank Loans
Date
2.16
Particulars
Sundry Creditor - Robertson
Date
2.6
Capital
Date
3.1
Trial Balance of Wilson’s Haberdashery
As at 15 April 200X
Account
No
HIT Newcastle V2.2008
Account
Name
Debit
7
Credit
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
Activity 3
Complete a transaction analysis chart to help you prepare the opening general journal
entry for the commencement of the company Dad & Dave's Bits & Pieces on 10 June
200X when the owner contributed cash ($10,000), stock (18,700), shop fittings ($3,300), a
trade debtor Hills ($1,100), and a loan from Barry's Finance ($6,600), and a trade creditor
Corrigans ($1,870). (You will need to calculate the amount for the (proprietors) capital
account).
Date of
transaction
Accounts
being
affected
What
Category
is the
account
(PEARL)
Is it an
increase
or a
decrease
to the
account
What is
the
amount
affecting
the
account
$
Will it be a Debit or a
Credit entry to the
account
DR
CR
$
$
Now write up a general journal entry to record the opening entry. The source of this
information is an internal memo dated 10 June 200X from the Financial Controller.
General Journal of Dad and Dave’s Bits and Pieces
Date
Particulars
HIT Newcastle V2.2008
GJ1
Fol
8
DR
GJ and GL Exercises
CR
Maintain a General Ledger and Process Journal Entries
GENERAL LEDGER
Cash at Bank
Date
Particulars
1.1
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Particulars
Folio
Debit
Credit
Folio
Debit
Credit
Folio
Debit
Credit
Particulars
Folio
Debit
Credit
Particulars
Folio
Debit
Credit
Particulars
Folio
Debit
Credit
Accounts Receivable Control
Date
1.3
Balance
Inventory
Date
1.4
Motor Vehicles at Cost
Date
Particulars
1.14
Office Furniture at Cost
Date
Particulars
Balance
2.16
Capital
Date
Balance
2.1
Bank Loans
Date
Balance
1.16
Accounts Payable Control
Date
Balance
Balance
3.1
Balance
Trial Balance of Dad and Dave’s
As at 10 June 200X
Account
No
HIT Newcastle V2.2008
Account
Name
9
Debit
Credit
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
GENERAL JOURNAL ENTRIES
for Adjustments
ACCOUNTS PAYABLE
1 Account Service Fee on Overdue Account
Memo: Our creditors will charge us interest on any overdue accounts.
For example, our creditor, Riley Mills has advised us they will charge 2% pa on our unpaid
account. We adjust the ledger accounts by creating a general journal entry. Calculation:
We owe $20,000 from August.
20,000 X 2% ÷ 12 = $33.33 + 10% GST = $36.66
General Ledger Accounts (a double entry):
Account Service Fee is an expense (increase) and therefore a DEBIT.
Accounts Payable is a liability (increase) and therefore a CREDIT.
Accounts Payable Ledger (a single entry):
Credit Riley Mills account to show we owe an additional $36.66
GENERAL JOURNAL
DATE PARTICULARS
FOLIO
(Account Name)
Sep 30 Late Fees Paid
GST Paid
Don’t
forget
narration
DEBIT
CREDIT
(Acc No)
6.26
Accounts Payable –
Riley Mills
(Account Service fee charged on
overdue account for one month $20,000
X 2% ÷ 12)
2.11
2.1
AP1
33.33
3.33
36.66
2 Correction of Errors
On rare occasions an error is made in posting! For example, a purchase of $1000 from
BJ Lewis (invoice #1002) may have been incorrectly posted to J Lewis & Co from the
Purchases Journal. This error has to be corrected by creating a General Journal entry.
GENERAL JOURNAL
DATE PARTICULARS
FOLIO
(Account Name)
DEBIT
GJ2
CREDIT
(Acc No)
Sep 30 Accounts Payable – J Lewis & Co
AP3
1000.00
Accounts Payable – BJ Lewis
AP2
1000.00
(Correction of posting error – reversing
invoice #1002 from BJ Lewis and
transferring to JB Lewis & Co)
The initial posting from the Purchases Journal to J Lewis & Co would have been a credit
entry. By debiting this account we have reversed the incorrect entry.
Don’t
forget to
indent
Credits
HIT Newcastle V2.2008
10
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
ACCOUNTS RECEIVABLE
3 Charge Account Service Fee on Overdue Account
Your business may charge an Account Service Fee on customer’s accounts which are
overdue.
For example: Our customer, W Ross, has an overdue account and we are charging
interest @5%pa. We adjust the ledger accounts by creating a general journal entry.
Calculation: W Ross owes $10,000 from August.
10,000 X 5% ÷ 12 = $41.67 + 10% GST = $45.83
General Ledger Accounts (a double entry):
Accounts Receivable is an asset (increase) and therefore a DEBIT.
Interest Received is income (increase) and therefore a CREDIT.
Accounts Receivable Ledger (a single entry):
Debit W Ross’ account to show they owe an additional $45.83
GENERAL JOURNAL
DATE PARTICULARS
FOLIO
(Account Name)
DEBIT
CREDIT
(Acc No)
Sep 30 Accounts Receivable –
W Ross
1-3
AR1
45.83
Late Fees Collected
4.4
41.67
GST Collected
2.10
4.16
(Account Service fee charged on overdue
account for one month $10,000 X 5% ÷
12)
4 Write Off Bad Debt
Memo: We have been informed that one of our debtors has been declared bankrupt. In
this case we would write the account off as a bad debt.
For example: J Sparks owes us $1100.00.
Calculation of GST: Total amount owed includes GST.
GST = 1100 ÷ 11
GST = 100
General Ledger Accounts (a double entry):
Bad Debts Account is an expense (increase) and therefore a DEBIT.
GST Collected must be reversed and is therefore a DEBIT.
Accounts Receivable liability (decrease) and is therefore a CREDIT.
Accounts Receivable Ledger (a single entry):
Credit J Sparks account to show their balance is now Nil.
HIT Newcastle V2.2008
11
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
GENERAL JOURNAL
DATE PARTICULARS
FOLIO
(Account Name)
DEBIT
CREDIT
(Acc No)
Sep 30 Bad Debts Expense
GST Collected
Accounts Receivable –
J Sparks
(Debtor bankrupt – debt written off)
6-5
1000.00
2-10
1-3
AR5
100.00
1100.00
Total Debits
equals (=)
Total Credits
5 Provision for Doubtful Debts
Many businesses provide for customers whose debts cannot be collected. No
external adjustments, for taxation purposes, occur until a bad debt is written off.
GENERAL JOURNAL
DATE
PARTICULARS
FOLIO
(Account Name)
(Acc No)
Sep 30 Doubtful Debts
Don’t forget
to indent
your credit
entries
DEBIT
CREDIT
500.00
Less Prov’n Doubtful Debts
Provision for Doubtful Debts
500.00
1.17
Depreciation
Fixed assets are depreciated by creating a General Journal entry each month.
Depreciation is calculated on an annual basis and divided by 12 in order to show the true
position of the company each month.
Motor Vehicles valued at $15 000 are to be depreciated at the rate of 15% per annum.
DATE
PARTICULARS
FOLIO
(Account Name)
(Acc No)
Sep 30 Depreciation Expense
6.20
MV Accum Depreciation
1.14A
DEBIT
CREDIT
187.50
187.50
September’s Depreciation Expense
$15 ,000 x 15% ÷ 12
HIT Newcastle V2.2008
12
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
The General Journal would look like this:
GENERAL JOURNAL
DATE PARTICULARS
FOLIO
(Account Name)
Sep 30
DEBIT
GJ2
CREDIT
(Acc No)
Late Fees Paid
Accounts Payable –
Riley Mills
6.1
2-1
AP1
33.33
AP3
1000.00
33.33
(A/c service fee charged on overdue
account for one month $20,000 X 2% ÷ 12)
Sep 30
Accounts Payable – J Lewis & Co
Accounts Payable – BJ Lewis
AP2
1000.00
(Correction of posting error – reversing
invoice #1002 from BJ Lewis and
transferring to JB Lewis & Co)
Sep 30
Accounts Receivable –
W Ross
1-3
AR1
Late Fees Collected
41.67
4.4
41.67
(IA/c Service fee charged on overdue
account for one month $10,000 X 5% ÷ 12)
Sep 30
Bad Debts Expense
6.5
1000.00
GST Collected
Accounts Receivable –Sparks
2-10
1-3
AR5
100.00
1100.00
(Debtor bankrupt – debt written off)
Sep 30
Doubtful Debts
Less Prov’n Doubtful Debts
500.00
500.00
Provision for Doubtful Debts
Sep 30
Depreciation Expense
6.20
MV Accum Depreciation
187.50
1.14A
187.50
(September’s Depreciation Expense)
Sep 30
Wages and Salaries
6.17
1254.50
Other Employer Expenses
6.27
138.00
2.7
Accrued Expense
1392.50
Wages Accrued but not yet paid
Sep 30
Insurance
6.9
600.00
Advertising
Prepayments
6.4
120.00
1.6
720.00
September’s Prepaid Insurance and Advert
HIT Newcastle V2.2008
13
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
Activity 4
Analyse the following transactions using a transaction analysis chart for the business Toys
Galore. The proprietor (owner) is W Smith:
Jan
1
W Smith invested $10 000 cash in the business (nil GST)
2
The business purchased a motor vehicle priced at $5500 for cash including
$500 GST.
3
A cash register priced at $4400 including $400 GST was purchased on credit
from Ace Shop Fitters.
4
The business borrowed $5500 from ABC Bank (nil GST).
5
The business purchased land and buildings priced at $55000 including
$5000 GST, to be used as shop and office. A cash deposit of $5000 cash
was paid to cover the GST component and a mortgage loan obtained for the
remaining $50000.
6
W Smith gave to the business his personal computer valued at $2000 (nil
GST).
7
W Smith withdrew from the business $100 cash to pay for a gift (nil GST).
8
Cash of $5000 was taken by W Smith from his personal account and
deposited into the business bank account (nil GST).
9
The business purchased trading stock priced at $4 400, including $400 GST,
for cash.
10
Wages and salaries of $286 were paid to employees (nil GST).
Date of
transaction
Accounts
being
affected
Jan 1 Bank
Capital
2 MV at Cost
GST Paid
Bank
3
HIT Newcastle V2.2008
What
Category
is the
account
(PEARL)
Is it an
increase
or a
decrease
to the
account
A
P
A
L
A
Inc
Inc
Inc
Dec
Dec
14
What is
the
amount
affecting
the
account
$
Will it be a Debit
or a Credit entry
to the account
DR
CR
$
$
10 000
10 000
5 000
500
5 500
10 000
10 000
5 000
500
5 500
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
General Journal of Toys Galore
Date
GJ 1
Fol
Particulars
DR
CR
Jan 1
HIT Newcastle V2.2008
15
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
Date
Fol
Particulars
DR
CR
GENERAL LEDGER
Cash at Bank
Date
1.1
Particulars
Folio
Debit
Credit
Particulars
Folio
Debit
Credit
Premises
Date
Balance
1.11
HIT Newcastle V2.2008
16
Balance
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
Motor Vehicles
Date
Particulars
1.14
Folio
Debit
Credit
Particulars
Folio
Debit
Credit
Particulars
Folio
Debit
Credit
Office Equipment
Date
1.15
Inventory
Date
2.6
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
2.11
Mortgage
Date
2.15
Bank Loans
Date
2.16
Capital
Date
Balance
Particulars
GST Paid
Date
Balance
1.4
Sundry Creditor Ace Shop Fitters
Date
Balance
3.1
HIT Newcastle V2.2008
17
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
Drawings
Date
3.2
Particulars
Folio
Debit
Credit
Wages and Salaries
Date
Balance
6.17
Particulars
Folio
Debit
Credit
Balance
TRIAL BALANCE of Toys Galore
Acc No
Acc Name
1.1
Bank
1.11
Premises
1.14
Motor Vehicles
1.15
Office Equipment
1.4
Inventory
2.11
GST Paid
2.15
Mortgage
2.16
Bank Loans
2.6
Sundry Creditor – Ace
3.1
Capital
3.2
Drawings
6.17
Wages and Salaries
TOTAL
HIT Newcastle V2.2008
18
Debit
Credit
76 900
76 900
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
Activity 4.1
Complete the following transactions for the business called Norman’s Trading
Shop Pty Ltd.
June 1
The owner contributed $20,000 into the business bank account.
2
The business purchased a motor vehicle priced at $3,850, including GST of
$350, for cash.
3
Purchased trading stock priced at $1,100, including $100 GST, for cash.
4
Paid the electricity account of $220, including $20 GST.
5
Purchased stock priced at $220, including $20 GST, for Cash.
Date of
transaction
Accounts
being
affected
HIT Newcastle V2.2008
What
Category is
the account
(PEARL)
Is it an
increase
or a
decrease
to the
account
19
What is
the
amount
affecting
the
account
$
Will it be a Debit or a
Credit entry to the
account
DR
CR
$
$
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
General Journal of Norman’s Trading Shop P/L
Date
Particulars
HIT Newcastle V2.2008
Fol
20
GJ 1
DR
CR
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
GENERAL LEDGER of Norman’s Trading
Bank
1.1
Date
Particulars
Folio
Debit
Credit
Particulars
Folio
Debit
Particulars
Folio
Debit
Credit
Particulars
Folio
Debit
Credit
Balance
Jun
Inventory
Date
1.4
Credit
Balance
Jun
Motor Vehicles at Cost
Date
1.14
Balance
Jun
GST Paid
Date
2.11
Balance
Jun
Capital
3.1
Date
Jun
Particulars
Folio
Debit
Credit
Electricity
Date
Balance
1
6.7
Particulars
HIT Newcastle V2.2008
Folio
Debit
21
Credit
Balance
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
Trial Balance of Normans Trading Shop
As at 30 June 200X
Account
No
Account
Name
Debit
Credit
1.1
1.14
1.4
2.11
3.1
6.7
TOTAL
HIT Newcastle V2.2008
22
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
Activity 4.2
Complete the following transactions for the business called Bill Barton’s Coffee Shop.
July
1
Proprietor Barton contributed cash of $10,000 to the business.
2
Cash purchase of trading stock priced at $3,300, including $300 GST.
Proprietor Barton withdrew cash $50 to pay for a pair of shoes.
3
Credit purchases of stock $2,200, including $200 GST, for Cash.
Paid wages of $1100 to employees.
6
Purchased office equipment priced at $2,530, including $230 GST on credit
from Wilson’s.
General Journal of Bill Barton
Date
GJ 1
Particulars
HIT Newcastle V2.2008
Fol
23
DR
CR
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
Date
Particulars
Fol
DR
CR
Balance
GENERAL LEDGER – BARTON
Bank
Date
1.1
Particulars
Folio
Debit
Credit
Particulars
Folio
Debit
Credit
Particulars
Folio
Debit
Particulars
Folio
Debit
Jul
Inventory
Date
1.4
Balance
Jul
Office Equipment at Cost
Date
1.15
Credit
Balance
Jul
GST Paid
Date
2.11
Credit
Balance
Jul
HIT Newcastle V2.2008
24
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
Capital
Date
3.1
Particulars
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Folio
Debit
Drawings
Date
3.2
Jul
Wages and Salaries
Date
Particulars
6.17
Credit
Balance
Jul
Trial Balance of Barton’s
as at 31 July 200X
Account
No
Account
Name
Debit
Credit
1.1
1.4
1.15
2.11
3.1
3.2
6.17
TOTAL
HIT Newcastle V2.2008
25
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
Activity 4.3
Daggy Duggan’s Supplies Pty Ltd commenced business on Aug 1.
Record the Opening Entry
Record the General Journal transactions
Post the General Journal to the General Ledger
Extract a Trial Balance
•
•
•
•
Aug
1
At commencement the opening balances of a new business are:
-
Cash $91 000
-
Motor Vehicle valued at $10,000
-
Sundry Creditor – Lockhart $500
-
Inventory
$5 000
3
Capital (Calculate)
Purchased land and office building priced at $77 000, including $7 000 GST.
A cash deposit of $50 000 was paid with a mortgage established for the
remainder.
Cash purchase of stock $1 320, including $120 GST.
7
Paid $220, including $20 GST, for office expenses.
2
10
31
Purchased carpet for the office priced at $1 650, including $150 GST, on
credit from Carpet Co.
Sundry Creditor Lockhart advises that they are charging an Account Service
Fee of 5% per annum for one month on our balance.
Daggy Duggan’s has decided to create a Provision for Doubtful Debts of
$400.00
D Duggan (Owner) took Inventory valued at $550.00 incl GST for his
personal use.
General Journal of Daggy Duggan’s
Date
GJ 1
Particulars
Fol
DR
CR
Aug 1
HIT Newcastle V2.2008
26
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
Date
Particulars
HIT Newcastle V2.2008
Fol
27
DR
CR
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
GENERAL LEDGER – Daggy Duggan’s
Bank
Date
1.1
Particulars
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Aug
Inventory
Date
1.4
Aug
Less Prov’n for Doubtful Debts
Date
Particulars
1.7
Aug
Motor Vehicles at Cost
Date
Particulars
1.14
Aug
Furniture and Fittings
Date
1.15
Aug
Premises
Date
1.11
Aug
Sundry Creditor Lockhart
Date
Particulars
2.6
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Aug
Sundry Creditor Carpet Co
Date
Particulars
2.6A
Aug
HIT Newcastle V2.2008
28
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
GST Collected
Date
2.10
Particulars
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Folio
Debit
Credit
Aug
GST Paid
Date
2.11
Aug
Bank Loans
Date
Aug
2.16
2
Capital
Date
3.1
Aug
Drawings
Date
3.2
Aug
Office Expenses
Date
Particulars
6.14
Balance
Aug
Late Fees Paid
Date
Particulars
6.26
Balance
Aug
Doubtful Debts
Date
Particulars
6.28
Folio
Debit
Credit
Balance
Aug
HIT Newcastle V2.2008
29
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
Trial Balance of Daggy Duggan’s
As at 31 August 200X
Account
No
1.1 Bank
Account
Name
Debit
Credit
1.4 Inventory
1.7 Less Prov’n Doubtful Debts
1.11 Premises
1.14 Motor Vehicles
1.15 Furniture and Fittings
2.6 Sundry Creditor Lockhart
2.6A Sundry Creditor Carpet Co
2.10 GST Collected
2.11 GST Paid
2.16 Bank Loans
3.1 Capital
3.2 Drawings
6.14 Office Expenses
6.26 Late Fees Paid
6.28 Doubtful Debts
TOTAL
HIT Newcastle V2.2008
30
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
Exercise 1
As bookkeeper for Middle Park Distributors you are required to perform the following
tasks:
Middle Park commenced business on 1 March with the following Assets and Liabilities:
Cash at Bank $5,000; Stock on hand $25,000 ; Prepayments $1,000; Premises
$40,000; Fixtures & Fittings $4,400; Motor Vehicles $15,400; Office Equipment
$3,000; Accounts Receivable Control $3624.50 (P Gibson & Sons $649.00; J
Cunningham Ltd $990.00; D Smith Ltd $330.00; J Sarowski Pty Ltd $555.50; J Brown Ltd
$1100.00); Mortgage on Premises $15000; Accounts Payable Control $2,506.90 (M
Finch & Co $726.00; L McDonough Ltd $889.90; K Nelson Pty Ltd $891.00); GST
Collected $329.50; GST Outlaid (Paid) $227.90. (Calculate Capital.)
Tasks:
1
Prepare the General Journal opening entry for May.
2
Prepare General Journal entries to record miscellaneous transactions to
adjust/correct entries.
3
Post ALL journals (use the trade and cash journals from Process Accounts Payable
and Receivable unit) to the General Ledger and extract a trial balance as at
31 March.
Miscellaneous Transactions
On 27 March sold an old fridge/freezer for $1100 (GST inclusive) on credit to
Like-Nu Shop Fittings Pty Ltd (TIN AB321).
On 30 March, Dale Carss purchased a lap-top computer on credit from Tri
Computing for $4235, GST inclusive (TIN B1011).
On 30 March, Dale Carss, the owner, took goods at cost price $770 for
personal use.
On 31 March, depreciate motor vehicles at the rate of 20% per annum for one
month.
On 31 March, transfer $100 from Prepayments to Advertising
HIT Newcastle V2.2008
31
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
GENERAL JOURNAL OF: Middle Park
DATE
HIT Newcastle V2.2008
PARTICULARS
Folio
FOLIO
32
DEBIT
GJ1
CREDIT
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
DATE
PARTICULARS
FOLIO
DEBIT
CREDIT
Posting Special Journals to the General Ledger
You are familiar with the General Journal, now it is time to post all other
journals. These are posted at the end of the month.
As with the General Journal the opposite account is entered in the particulars
column of the Ledger, eg when posting to the Purchases Account - enter
Accounts Payable and in the Accounts Payable account – enter Purchases.
There are examples on the next page for your reference.
Do not post these figures; post from your own journals.
HIT Newcastle V2.2008
33
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
PURCHASES JOURNAL OF
Date
200X
Tax
Inv
Folio P1
Particulars-Acc Payable
Foiol
TOTAL
31/5
Purchases
Freight &
Ins Paid
3439
61
105
Dr 6.1
Dr
Acc Payable
Control
(Creditors)
GST Outlaid
(Paid)
00
354
48
3899
Dr
09
Cr
Debit the Purchases Account, - Freight Paid, GST Paid - Increase expense
Credit the Accounts Payable (Creditor) –Increase Liability - (Equal Dr and Cr)
PURCHASES RETURNS AND ALLOWANCES JOURNAL OF
Date
200X
31/5
Adj
Not
e
Particulars-Acc Pay
Folio
TOTAL
Purchases
Returns
462
Folio PR1
Freight & Ins
Paid
50
Acc Pay
Control
(Creditors)
GST (Paid)
5 00
46
76
514
Cr
Cr
Cr 6.2
Cr Purchases Returns, Freight/Ins Paid, GST Paid – Decrease expense
Dr Accounts Payable – Decreasing balance
SALES JOURNAL OF
Date
200X
Particulars-Accounts
Receivable
Tax
Invoice
31/5
26
Dr
Folio S1
Folio
TOTAL
GST
Collected
Sales
4194
00
419
Cr 4.1
Accounts
Receivable Control
(Debtors)
40
4613
Cr
40
Dr
Credit Sales – Increase Income, GST Collected – Increase Liability
Dr Accounts Receivable (Debtor) – Increase Asset (Equal Dr and Cr)
SALES RETURNS AND ALLOWANCES JOURNAL OF
Date
200X
31/5
Particulars-Accounts
Receivable
Adjust
Note
Folio
TOTAL
Sales
Returns
450
00
Dr 4.2
Folio SR1
GST
Collected
45
00
Dr
Accounts
Receivable Control
(Debtors)
495
Cr
Dr Sales Returns – decreasing Income, GST Collected
Cr Accounts Receivable – Decreasing balance
HIT Newcastle V2.2008
34 of 56
GJ and GL Exercises
00
Maintain a General Ledger and Process Journal Entries
EXTRACT CASH PAYMENTS JOURNAL OF
Folio CP 1
Credits
Debits
Date
200X
CH
No
MAY 02
1299
Petty Cash (Imprest)
1.2
200
00
04
1300
Electricity
6.7
500
00
31
Account Debited
Folio
TOTAL
Accounts
Payable
2584 20
Other
Accounts
Purchases
840 00
Dr
GST Outlaid
50
6145 90
Dr
00
590 00
Dr each
Account
Cash at Bank
200
00
550
00
10524 35
Dr
Discount
Received
32 50
Cr 1.1
MAY 04
1140
A Argent Ltd
1146
Capital
BS
Interest on Account
31
31
Account Credited
TOTAL
Folio
Cash at Bank
Discount
Allowed
Credits
55
GST
Collected
3.1
10463
10
10000
00
4.4
19
20
19
20
17981
55
10094
20
Dr
50
5
14
50
65
Dr
1210
Other
Accounts
Sales
50
146
00
Accounts
Receivable
1149
Dr 1.1
Cr
Folio CR 1
Debits
Rec
No
3 25
Cr
EXTRACT CASH RECEIPTS JOURNAL OF
Date
200X
GST
Outlaid
00
3718 00
Cr
GST
Collected
3045
Cr
00
385
Cr each
Account
50
Cr
Post the Cash Payments and Cash Receipts Journals, according to the Debit, Credit at the top of the columns to the Account
Names in the headings.
All amounts in the Other Accounts column must be posted individually to the account shown in the Account Debited/Credited
column and the account number entered in the Folio column of the Journal. Remember to write the Dr or Cr and Acc No at the
bottom of the column.
HIT Newcastle V2.2008
30
GJ and GL Exercises
Maintain a General Ledger and Process Journal Entries
GENERAL LEDGER – Middle Park
Bank
Date
1.1
Particulars
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Petty Cash
Date
1.2
Particulars
Accounts Receivable
Date
Particulars
1.3
Folio
Debit
Credit
Inventory
Date
1.4
Particulars
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Sundry Debtor
Date
Particulars
1.5
Prepayments
Date
Balance
Particulars
HIT Newcastle V2.2008
1.6
36 of 56
GL and GJ Exercises
Maintain a General Ledger and Process Journal Entries
Premises
Date
1.11
Particulars
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Furniture and Fixtures at Cost
Date
Particulars
1.13
Motor Vehicles at Cost
Date
Particulars
1.14
Accumulated Depreciation MV
Date
Particulars
1.14A
Office Equipment at Cost
Date
Particulars
1.15
Accounts Payable Control
Date
Particulars
2.1
Sundry Creditor
Date
Particulars
HIT Newcastle V2.2008
Balance
2.6
Folio
37 of 56
Debit
Credit
Balance
GL and GJ Exercises
Maintain a General Ledger and Process Journal Entries
GST Collected
Date
2.10
Particulars
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
GST Paid
Date
2.11
Mortgage
Date
2.15
Capital
Date
3.1
Drawings
Date
3.2
Sales
Date
4.1
HIT Newcastle V2.2008
38 of 56
GL and GJ Exercises
Maintain a General Ledger and Process Journal Entries
Sales Returns and Allowances
Date
Particulars
4.2
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Discount Received
Date
Particulars
4.3
Interest Received
Date
4.4
Dividends
Date
4.8
Purchases
Date
Particulars
6.1
Purchases Returns and Allowances
Date
Particulars
6.2
Discount Allowed
Date
Particulars
6.3
Advertising
Date
Particulars
6.4
Bank Charges
Date
6.6
Electricity
Date
6.7
HIT Newcastle V2.2008
39 of 56
GL and GJ Exercises
Maintain a General Ledger and Process Journal Entries
Postage
Date
6.11
Particulars
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Rent Expense
Date
Particulars
6.12
Office Supplies
Date
Particulars
6.14
Wages and Salaries
Date
Particulars
6.17
Freight and Insurance Paid
Date
Particulars
6.18
Depreciation Expense
Date
6.20
Gas
Date
6.25
Late Fees Paid
Date
Particulars
HIT Newcastle V2.2008
6.26
40 of 56
GL and GJ Exercises
Maintain a General Ledger and Process Journal Entries
Trial Balance of Middle Park
As at 31 March 200X
Account
No
1.1
1.2
1.3
1.4
1.5
1.6
1.11
1.13
1.14
1.14A
1.15
2.1
2.6
2.10
2.11
2.15
3.1
3.2
4.1
4.2
4.3
4.4
4.8
4.9
6.1
6.2
6.3
6.4
6.6
6.7
6.11
6.12
6.14
6.17
6.18
6.20
6.25
Account
Name
Debit
Credit
Bank
Petty Cash Imprest
Accounts Receivable
Inventory
Sundry Debtor
Prepayments
Premises
Furniture and Fixtures
Motor Vehicles at Cost
Accum Depreciation on MV
Office Equipment at Cost
Accounts Payable Control
Sundry Creditor
GST Collected
GST Paid
Mortgage
Capital
Drawings
Sales
Sales Returns and Allowances
Discount Received
Interest Income
Dividends
Purchases
Purchases Returns and Allowances
Discount Allowed
Advertising
Bank Charges
Electricity
Postage
Rent Expense
Office Supplies
Wages and Salaries
Freight and Insurance Paid
Depreciation Expense
Gas
TOTAL
HIT Newcastle V2.2008
41 of 56
GL and GJ Exercises
Maintain a General Ledger and Process Journal Entries
Argent Hardware Supplies
1
Argent Hardware Supplies commenced business on 1 May with the
following opening balances:
Cash at Bank $9,510; Stock on hand $12,000; Prepayments $9,600
Premises $110,000; Office Furniture $4,650; Motor Vehicles $18,800; Office
Equipment $8,000; Accounts Receivable Control $9,801.00 (James Brown Ltd
$880; Michael Bevan Ltd $891; Jackson Industries $330; John Bauer Ltd $660;
Frank Sinatra Ltd $7040); Mortgage on Premises $50,000; Accounts Payable
Control $2,186.95 (Spencer Ltd $880; Nelson Eddy Pty Ltd $550; Dales Carss
Ltd $360; Geoffrey Barrett Ltd $396.95); GST Collected $198.81; GST Outlaid
(Paid) $391. (Calculate Capital.)
2
Tasks:
Prepare the General Journal opening entry for 1 May.
From the information below, prepare General Journal entries to record the
transactions.
Post ALL journals (use the trade and cash journals from Process Accounts
Payable and Receivable unit) to the General Ledger and extract a trial balance as
at 31 May.
•
1 May – Depreciate Office Furniture, Office Equipment and Motor
Vehicles at the rate of 12.5% for one month. Calculate to the nearest
dollar.
•
5 May - Purchase of an Asset on Credit: A motor Vehicle was
purchased on Credit from Argenton Motors for $33,000 incl GST
•
7 May - Sale of an Asset on Credit: Old office furniture was sold on
credit to Like ‘Nu for $1650 incl GST
•
15 May - Owner invested an additional $10,000 in the business
•
16 May - Obtained an loan from That Bank for $20,000
•
21 May - Purchased a large safe on credit from Tubb’s Safes for
$8,800 incl GST
•
23 May - Sold an old Motor Vehicle for $11,000 cash incl GST
HIT Newcastle V2.2008
42 of 56
GL and GJ Exercises
Maintain a General Ledger and Process Journal Entries
•
31 May - Prepayments: Transfer $1000 from prepayments to
Insurance and $200 to Advertising
•
31 May - Accrued Expenses: Record accrued wages of $2600 and
Other Employer Expenses of $312
•
31 May – Provision for Doubtful Debts for $500.00
GENERAL JOURNAL OF: Argent Hardware Supplies
DATE
PARTICULARS
FOLIO DEBIT
HIT Newcastle V2.2008
43 of 56
GJ1
CREDIT
Folio
GL and GJ Exercises
Maintain a General Ledger and Process Journal Entries
DATE
PARTICULARS
HIT Newcastle V2.2008
FOLIO
44 of 56
DEBIT
CREDIT
GL and GJ Exercises
Maintain a General Ledger and Process Journal Entries
GENERAL LEDGER – Argent
Bank
Date
1.1
Particulars
Folio
Debit
Folio
Debit
Credit
Petty Cash
Date
Particulars
1.2
Credit
Accounts Receivable
Date
Particulars
Debit
Credit
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
1.5
Prepayments
Date
Particulars
1.6
Less Prov’n Doubtful Debts
Date
Balance
1.4
Particulars
Sundry Debtor
Date
Balance
1.3
Folio
Inventory
Date
Balance
Particulars
HIT Newcastle V2.2008
1.7
45 of 56
GL and GJ Exercises
Maintain a General Ledger and Process Journal Entries
Premises
Date
1.11
Particulars
Folio
Debit
Folio
Debit
Credit
Balance
May
Furniture & Fixtures at Cost
Date
Particulars
1.13
Credit
Balance
May
Furniture and Fixtures Accumulated Depreciation
Date
Particulars
Folio
Debit
1.13A
Credit
Balance
May
Motor Vehicles at Cost
Date
Particulars
1.14
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
May
MV Accumulated Depreciation
Date
Particulars
1.14A
Office Equipment at Cost
Date
Particulars
1.15
May
Office Equipment Accumulated Depreciation
Date
Particulars
Folio
1.15A
Debit
Credit
Accounts Payable Control
Date
Particulars
2.1
Folio
Debit
Credit
Sundry Creditor
Date
Particulars
Balance
2.6
Folio
May
HIT Newcastle V2.2008
Balance
Debit
Credit
Balance
cr
46 of 56
GL and GJ Exercises
Maintain a General Ledger and Process Journal Entries
Accrued Expenses
Date
Particulars
2.7
Folio
Debit
Credit
Balance
May
GST Collected
Date
2.10
Particulars
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Particulars
Folio
Particulars
Folio
May
GST Paid
Date
2.11
May
Bank Loans
Date
2.16
May
Mortgage
Date
2.15
May
Capital
Date
3.1
Debit
Credit
Balance
May
Drawings
Date
3.2
Debit
Credit
Balance
May
HIT Newcastle V2.2008
47 of 56
GL and GJ Exercises
Maintain a General Ledger and Process Journal Entries
Sales
4.1
Date
Particulars
Folio
Debit
Credit
Balance
May
Sales Returns and Allowances
Date
Particulars
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
May
Discount Received
Date
Particulars
May
Interest Received
Date
4.4
May
Dividends
Date
May
4.8
31
Purchases
Date
Particulars
6.1
May
Purchases Returns and Allowances
Date
Particulars
Folio
Debit
Credit
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Advertising
Date
Particulars
Balance
6.4
May
Bad Debts
Date
Particulars
6.5
May
Discount Allowed
Date
Particulars
May
HIT Newcastle V2.2008
48 of 56
GL and GJ Exercises
Maintain a General Ledger and Process Journal Entries
Insurance
Date
May
6.9
Particulars
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
31
Interest Expense
Date
Particulars
6.10
May
Wages and Salaries
Date
Particulars
6.17
Freight and Insurance Paid
Date
Particulars
6.18
May
Bank Fees
Date
Particulars
May
Depreciation Expense
Date
Particulars
6.20
Other Employer Expenses
Date
Particulars
6.27
May
Doubtful Debts
Date
Particulars
HIT Newcastle V2.2008
6.28
49 of 56
GL and GJ Exercises
Maintain a General Ledger and Process Journal Entries
Account
No
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.11
1.13
1.13A
1.14
1.14A
1.15
1.15A
2.1
2.6
2.9
2.10
2.11
2.15
2.16
3.1
4.1
4.2
4.8
6.1
6.2
6.4
6.6
6.7
6.9
6.13
6.14
6.15
6.17
6.18
6.20
6.27
6.28
Trial Balance of Argent Hardware Supplies
As at 31 May
Account
Name
Debit
Bank
P/Cash
A/c Receivable
Inventory
Sundry Debtor Like Nu
Prepayments
Less Prov’n for Doubtful Debts
Premises
Furniture and Fixtures at Cost
F&F Accumulated Depreciation
MV at Cost
MV Accumulated Depreciation
Equip at Cost
Equip Accumulated Depreciation
A/c Payable
Sundry Creditor Argenton Motors
Accrued Expenses
GST Collected
GST Paid
Mortgage
Bank Loans
Capital
Sales
S/Returns
Dividends
Purchases
P/Returns
Advertising
Bank Charges
Electricity
Insurance
Repairs and Maintenance
Stationery/Office Supplies
Telephone
Wages
Freight and Ins Paid
Depreciation
Other Employer Expenses
Doubtful Debts
TOTAL
HIT Newcastle V2.2008
50 of 56
305,558.90
Credit
305,558.90
GL and GJ Exercises
Maintain a General Ledger and Process Journal Entries
MEDOWLEA NEWSAGENCY
Margaret Smith (proprietor) purchases MEDOWLEA NEWSAGENCY (18A Main Road
Medowlea, NSW 2318; ABN 21 354 444 673) and commences a new set of books on 1
September with the following assets and liabilities:
Cash at Bank
$8,000.00
Motor Vehicles
12,100.00
Premises
18,700.00
Stock
22,000.00
Furniture and Fittings
1,540.00
Office Equipment
2,530.00
D Gray—Sundry Debtor
770.00
Accounts Receivable
1,507.00
K Batt
M Pont Dancing School
D Kerkin
G Jones
Accounts Payable
671.00
P Fleck
T Booth
A Lee
D Queen
M Carter
Regis Motors—Sundry Creditor
2200.00
GST Collected
137.00
GST Outlaid (Paid)
61.00
(Remember to calculate CAPITAL)
$440.00
517.00
220.00
330.00
$33.00
132.00
154.00
242.00
110.00
Tasks:
Prepare the General Journal opening entry as at 1 September.
Prepare General Journal entries to record general transactions.
Post ALL journals to the General Ledger and extract a trial balance as at 30 September
General Journal transactions for September:
SEP 02
Bought a motor vehicle (book value $4000.00) on credit from Regis Motors,
$4,400.00 (GST inclusive).
08
Medowlea acquires a Bank Loan of $10,000 from That Bank.
25
Sold Furniture and Fittings on credit to D Gray, $1100.00 (GST inclusive)—
Invoice 872.
30
Motor Vehicles are depreciated at 17.5% per annum. Record September’s
depreciation.
Record accrued Wages of $1500 and Other Employer Expenses $180
Mary Williams has decided to set up a Provision for Doubtful Debts of $200.
HIT Newcastle V2.2008
51 of 56
GL and GJ Exercises
Maintain a General Ledger and Process Journal Entries
GENERAL JOURNAL OF MEDOWLEA NEWSAGENCY
HIT Newcastle V2.2008
52 of 56
GJ1
GL and GJ Exercises
Maintain a General Ledger and Process Journal Entries
GENERAL JOURNAL OF MEDOWLEA NEWSAGENCY
HIT Newcastle V2.2008
53 of 56
GJ2
GL and GJ Exercises
Maintain a General Ledger and Process Journal Entries
GENERAL LEDGER OF MEDOWLEA NEWSAGENCY
Bank
Date
1.1
Particulars
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Debit
Credit
Balance
Accs Receivable
Date
1.3
Inventory
Date
1.4
Sundry Debtor Gray
Date
Particulars
1.5
Less Prov’n Doubtful Debts
Date
1.7
Premises
Date
1.11
Furniture and Fixtures at Cost
Date
Particulars
1.13
Motor Vehicles at Cost
Date
Particulars
1.14
Folio
Motor Vehicles Accumulated Depreciation
Date
Particulars
HIT Newcastle V2.2008
Folio
54 of 56
1.14A
Debit
Credit
Balance
GL and GJ Exercises
Maintain a General Ledger and Process Journal Entries
Office Equipment at Cost
Date
Particulars
1.15
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Particulars
Folio
Debit
Credit
Balance
Accounts Payable
Date
Particulars
2.1
Sundry Creditor Regis
Date
Particulars
2.6
Accrued Expenses
Date
Particulars
2.7
GST collected
Date
2.10
GST Paid
Date
2.11
Bank Loans
Date
Particulars
2.16
Folio
Debit
Bank
Credit
10000
Capital
Date
Folio
Debit
Credit
64200
Wages
Balance
64200 cr
6.17
Particulars
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
6.20
Depreciation Expense
Date
10000 cr
3.1
Particulars
Sundries
Date
Balance
Particulars
HIT Newcastle V2.2008
55 of 56
GL and GJ Exercises
Maintain a General Ledger and Process Journal Entries
6.27
Other Employer Expenses
Date
Particulars
Folio
Debit
Credit
Balance
Folio
Debit
Credit
Balance
6.28
Doubtful Debts
Date
Particulars
Trial Balance of Medowlea Newsagency
As at 30 September 20XX
ACCOUNT NAME
DEBIT
NO
1.1
1.3
1.4
1.5
1.7
1.11
1.13
1.14
1.14A
1.15
2.1
2.6
2.7
2.10
2.11
2.16
3.1
6.17
6.20
6.27
6.28
CREDIT
TOTAL
HIT Newcastle V2.2008
56 of 56
GL and GJ Exercises