Charlotte and Nathan runs a partnership which wholesales clothing pants and T-shirts under the business
Question:
Charlotte and Nathan runs a partnership which wholesales clothing – pants and T-shirts – under the business name “Charlatan House”.
Their price list and unit costs (if applicable) are shown below.
Products | Price List ($) | Unit Cost ($) |
Pants | @ $21.89 (GST Inclusive) | $7.70 (GST Inclusive) |
T-shirt | @ $17.60 (GST Inclusive) | $6.05 (GST Inclusive) |
Charlatan House is registered for GST, and the following transactions occurred during the first five working days of December 2019 (Monday, 2 December – Friday, 6 December 2019).
2 The business purchased $1,320 of office supplies with cash (GST Inclusive).
2 The business made a credit sale 50 pants and 15 T-shirts to their regular customer, SmartyPants Pty. Ltd. (net 7). Delivery was made on the same day.
3 The business purchased 50 pants on credit, 2/10 net 30; the business can opt to either receive 2% discount for payment to the supplier within 10 days or without any discount in 30 days.
3 Charlotte took two (2) pants for personal use.
5 The business’ client, SmartyPants Pty. Ltd., returned 5 pants purchased on the 2nd of December 2019 as they are not in favour of the colours.
5 Received full payment from SmartyPants Pty. Ltd. on the outstanding balance of the credit sale made during the week.
6 Paid office staff salaries for the week (Gross salaries $2,454; PAYG $686)
Required:
Record the transactions provided above in the general journal provided
Expert Answer:
Solution General Journal Date Accounts Description Ref Debit Credit 02122019 Office Supplies 1320 Ca... View the full answer
