The post-closing trial balance of Raschella Ltd as at 1 November 2016 contained the following normal balances:
Question:
The post-closing trial balance of Raschella Ltd as at 1 November 2016 contained the following normal balances:
Account no. | Account title | Account balance | |||
1100 1120 1130 1140 1150 1160 1210 1215 1220 1225 2110 2120 2150 3110 3120 4110 4115 4120 5110 5115 5120 5130 5140 5150 | Cash at Bank Accounts Receivable Bills Receivable Inventory Prepaid Insurance GST Receivable Delivery Vehicle Accumulated Depreciation – Delivery Vehicle Office Equipment Accumulated Depreciation – Office Equipment Accounts Payable Bills Payable GST Payable Share Capital Retained Earnings Sales Sales Returns and Allowances Discount Received Purchases Purchases Returns and Allowances Discount Allowed Rent Expense Electricity Expense Salaries Expense | $ 60000 7270 750 80000 — 2000 40000 4000 24000 4000 5780 — 3500 192000 4740 — — — — — — — — — |
Subsidiary ledger balances at 31 October 2016 were:
Accounts Receivable | ||||||
Customer | Date of sale | Terms | Amount | |||
M. Peterson N. Mobius D. Temby | 28 October 30 October 18 October | 2/10, n/30 2/10, n/30 2/10, n/30 | $2100 2310 2860 |
Accounts Payable | ||||||
Creditor | Date of purchase | Terms | Amount | |||
Warnes Ltd B. Lau Gent Ltd | 19 October 10 October 23 October | 1/30, n/60 n/30 1/15, n/30 | $1640 2650 1490 |
Transactions for the month of November 2016 were:
Nov. | 1 3 4 5 8 10 11 12 13 14 18 19 20 21 26 27 28 30 | Bought inventory from B. Lau on credit, $2400 plus GST; terms n/30. Purchased 1 year’s insurance cover for $900 plus GST, cheque no. 400. Inventory sold to N. Mobius last month was returned. Issued an adjustment note for the amount of $110 (including GST). Received a cheque from M. Peterson to cover the sale made on 28 October. Paid Gent Ltd cheque no. 401 for purchase of 23 October. Purchased inventory from Warnes Ltd on credit, $2400 plus GST; terms 1/10, n/60. Issued cheque no. 402 for $1650 to B. Lau on account, and issued a 60-day 10% bill payable for the balance due on the purchase of 10 October. Paid November rent of premises $540 plus GST, cheque no. 403. Paid Warnes Ltd for the purchase of 19 October, cheque no. 404. Sold inventory on account to M. Menz, $4500 plus GST; terms 2/10, n/30. Received cash for the issue of additional share capital, $30000 (GST-free). Received cheque for $1430 from D. Temby in part payment of the sale made on 18October, together with a bill receivable for the balance due. Sold merchandise to M. Peterson on account, $4800 plus GST; terms 2/10, n/30. Purchased goods on credit from Gent Ltd, $3960; terms 1/15, n/30 (including GST). Paid fortnightly salaries by cheque no. 405, $1200. Cash sales from 1 November to 14 November, $9200 plus GST. Sold goods to D. Temby on account, $4650 plus GST; terms 2/10, n/30. Received an adjustment note from Gent Ltd for $77 for defective goods returned (includes GST). Forwarded cheque no. 406 to ATO to cover GST owing from previous month, $1500. M. Menz forwarded a cheque for $1320 on account; no discount was allowed. Purchased goods for cash. Issued cheque no. 407 for $5400 plus GST. Received a cheque from M. Peterson for $660 and a promissory note (bill receivable) for the balance of his account; no discount was allowed. D. Temby forwarded a cheque for the goods sold on 18 November. Paid Gent Ltd for the purchase made on 13 November, cheque no. 408. Paid fortnightly salaries with cheque no. 409, $1200 (GST-free). Electricity account paid by cheque no. 410, $210 plus GST. Cash sales from 15 November to 30 November, $9000 plus GST. Purchased inventory on credit from Gent Ltd, $3630; terms 1/15, n/30 (includes GST). |
Required
A. Record the November transactions (round amounts to the nearest dollar) in appropriate special journals and the general journal.
B. Open running balance accounts in the subsidiary ledgers and their control accounts in the general ledger, and enter the opening details of these accounts.
C. Post relevant data from the journals to the appropriate running balance subsidiary ledger accounts.
D. Prepare schedules of accounts receivable and accounts payable as at 30 November 2016, and reconcile to the appropriate subsidiary ledger control accounts in the general ledger.
E. Prepare the GST Payable and GST Receivable accounts as they would appear at 30 November 2016.
Accounts PayableAccounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Step by Step Answer:
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett