Zhang Ltd uses sales, purchases, cash receipts, cash payments and a general journal along with subsidiary ledgers for accounts receivable and accounts payable. Zhang Ltd’s financial year ends on 31 December 2016. The post-closing trial balance as at 30 June 2016 and schedules of balances of the subsidiary ledgers are presented below.

	ZHANG LTD Post-closing Trial Balance as at 30 June 2016
	1-100 1-110 1-150 1-170 1-175 2-200 3-300 3-350 4-400 4-405 4-410 5-500 5-505 5-512 5-530 5-540 5-550	Cash at bank Accounts receivable control Inventory Office equipment Accumulated depreciation – office equipment Accounts payable control Share capital Retained earnings Sales Sales returns Discount received Purchases Purchases returns Discount allowed Rent expense Sundry expenses Commissions expense	$26 680 15 440 25 280 53000 — — — — — —		$  7 800 20 590 60000 32 010 — — —
			$120 400		$120 400

Schedule of Accounts Receivable as at 30 June 2016
	Moorman Ltd Lo Ltd North Ltd	$3 600 7 210   4 630
		$15 440

Schedule of Accounts Payable as at 30 June 2016
	Higgins Ltd G. McClure Ventura Ltd	$7 200 5 150   8 240
		$20 590

The following transactions occurred in July 2016:

July

1 2 3 5 7 10 11 12

Received a cheque from Moorman Ltd for payment on account, $3600. Paid rent for July, $3700, by interbank transaction to Buildings Ltd. Sold inventory to Kemp Ltd on credit, invoice 342, $4200, terms 2/10, n/30. Purchased inventory on credit from F. Falla, $4900, invoice 243, terms 2/10, n/30. Paid G. McClure for inventory purchased previously (no discount), $5150, by interbank transfer. Received payment from Kemp Ltd for full settlement of invoice 342. Received an adjustment note from F. Falla for inventory returned, $200. Paid F. Falla in full for invoice 243 by interbank transfer. Paid sales commissions, $9580, by interbank transfer.

15 16 18 19 20 24 25 26 30 30

Received a cheque from Lo Ltd in part payment of the account, $3600, no discount applicable. Paid $14 000 for new office equipment, cheque no. 304. Cash sales, $2620. Sold inventory on credit to Moorman Ltd, $4430, invoice 343, terms 2/10, n/30. Sold inventory on credit to C. Gable, $2200, invoice 344, terms 2/10, n/30. Paid Ventura Ltd for inventory purchased in May, $8240, cheque no. 305. Cash sales, $2800. Issued cheque no. 306 to pay sundry expenses, $1280. North Ltd directly credited Zhang’s bank account for $4630, for payment of account. Received a cheque from C. Gable in payment of invoice 344.

Required

A. 1. Journalise the transactions in the appropriate journals.

2. Make all necessary postings for the month.

3. Prepare a trial balance of the general ledger as at 31 July 2016, and reconcile subsidiary ledgers with their control accounts.

B. Rework requirements A.1, A.2 and A.3 assuming that recording of GST is required. Add 1-800 GST Receivable and 2-250 GST Payable to the post-closing trial balance (assume both accounts have zero balances). Round amounts to the nearest dollar. Sales commissions do not incur GST.