The chart of accounts of Victoria Ltd includes the following selected accounts. 

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

Required

(a) Journalise the transactions above in a purchases journal, a sales journal, and a general journal. The purchases journal should have the following column headings: Date, Accounts 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 beginning balances.)

(c) Agree the control account and subsidiary ledger balances.

Transcribed Image Text:

112 Accounts Receivable 120 Inventory 126 Supplies 157 Equipment 201 Accounts Payable 401 412 505 Sales Sales Returns and Allowances Cost of Sales Freight Inwards 510 610 Advertising Expense