The following demonstration problem illustrates the use of the general journal, the four special journals introduced here, and the general ledger with two subsidiary ledgers.
Sidney Carton began business on 1 July 2019, specialising in the purchase and supply of packaging materials. Carton obtained the necessary ABN (99 111 222 333) and registered for the GST. An accounting system was designed and a chart of accounts was established.

The following transactions occurred during July 2019. The applicable rate of GST is 10%. All calculations are rounded to the nearest dollar.

Required

(a) Record the transactions in a general journal, a cash receipts journal, a cash payments journal, a sales journal and a purchases journal.

(b) Show the accounts receivable and accounts payable subsidiary ledgers as they would appear at the end of July, and prepare schedules of balances.

(c) Post all journals to the general ledger accounts (running balance).

(d) Prepare a trial balance of the general ledger as at 31 July 2019.

Transcribed Image Text:

101 Cash at Bank 158 Office Equipment 113 Accounts Receivable Control 201 Accounts Payable Control 117 Prepaid Insurance 118 Office Supplies 120 GST Receivable 151 Land 154 Buildings 156 Store Furniture 202 Bank Loan 240 GST Payable 251 Mortgage Payable 301 S. Carton, Capital 401 Sales 405 Discount Received 501 Purchases 503 Purchases Returns and Allowances 601 Salaries Expense 611 Delivery Expense 621 Office Expenses 631 Sundry Expenses 403 Sales Returns and Allowances 633 Discount Allowed