A. Elliott started business on 1 July 2016. The accounting system includes a sales journal, a purchases journal, a cash receipts journal, a cash payments journal and a general journal. The chart of accounts shows the following titles:

100 110 115 150 201 210 300 400

Cash at Bank AccountsReceivable Control Prepaid Insurance Office Equipment Accounts Payable Control Loan Payable A. Elliott, Capital Sales

410 420 500 503 510 550 560 570

SalesReturns and Allowances Discount Received Purchases Purchases Returns Discount Allowed Rent Expense Insurance Expense Sundry Expenses

During June, the transactions were as follows (ignore GST):

June

1 3 4 5 6 8 10 12 12 13 16 17 20 23 25 28 30 30

A. Elliott deposited $50000 capital in the business bank account. Paid rent for June, $8800, by interbank transfer. Borrowed $30000 from the Regional Australia Bank. Purchased inventory on credit from Hendry Ltd, $11 300, invoice 743, terms 2/10, n/30. Purchased inventory on credit from Kelly Ltd, $4400, invoice 312, terms 2/10, n/30. Purchased office equipment, $2520, using the business’ debit card. Sold inventory on credit to Leschev Ltd, $4620, terms 2/10, n/30, invoice 532. Paid for inventory purchased from Hendry Ltd, invoice 743, using an interbank transfer. Received an adjustment (credit) note from Kelly Ltd for inventory returned, $250. Forwarded cheque no. 977 to Kelly Ltd for balance owing on invoice 312. Sold inventory for cash, $1575. Had an automatic direct debit from the bank account for a 12-month insurance policy, $3150. The effective date of the policy was 1 June. Purchased inventory on credit from L. Mihai, $6720, invoice 763, terms n/30. Purchased inventory on credit from F. Nunn, $3690, invoice 506, terms 2/10, n/30. Sold inventory on credit to B. Bear, $3150, invoice 533, terms 2/10, n/30. Received payment from Leschev Ltd in full settlement of invoice 532. Sold inventory on credit to Nottage Ltd, invoice 534, $5250, terms 2/10, n/30. Paid F. Nunn in full for goods purchased on 20 June, cheque no. 978. Issued cheque no. 979, $320, for sundry expenses. Issued an adjustment (credit) note to Nottage Ltd for defective goods sold on 28 June, $125. Received payment from B. Bear in settlement of invoice 533.

Required

Record the transactions in the appropriate journals. Indicate how the postings would be made from the journals by entering the relevant posting references.