The chart of accounts of Fancy Footware Ltd includes the following selected accounts.

In July the following selected transactions were completed. All purchases and sales were on account. The cost of all inventory sold was 70% of the sales price. 

Required

(a) Journalise these transactions in a purchases journal, a sales journal and a general journal. The purchases journal should have the following column headings: Date, Account Credited (Debited), Post Ref, Other Accounts Dr, and Inventory Dr/Accounts Payable Cr.

(b) Post to both the general and subsidiary ledger accounts. (Assume that all accounts have nil opening balances.)

(c) Check that the control and subsidiary accounts balances agree.

(d) Explain the advantages and disadvantages of computerised accounting systems or manual accounting systems.  

Transcribed Image Text:

112 Accounts Receivable 120 Inventory 126 Supplies 157 Equipment 201 Accounts Payable 401 412 Sales Sales Returns and Allowances 505 Cost of Sales 506 Freight Inwards 610 Advertising Expense