Problems

Chapter $7$

Problem $7\mathrm{.}16$

Accounting with sales journal and purchases journal

Non$-$GST version

Toby's Traders Ltd uses sales and purchases journals in its accounting system. The following transactions occurred during April $2025.$

$\backslash$table$[[$April$,5,$Purchased merchandise on account from Smythe Ltd$,$ invoice $354,$$$1500,$ terms $\frac{2}{10},\frac{n}{30}.],[8,$Purchased merchandise on account from Ellis Ltd$,$ invoice $376,$$$780,$ terms $\frac{2}{10},\frac{n}{30}.,],[10,$Sold merchandise on account to B$.$ Morran, invoice $345,$ $$2280.,],[16,$Sold merchandise on account to Bryde Ltd$,$ invoice $346,$ $$2640.,],[19,$Purchased merchandise on account from R$.$ Rober, invoice $828,$ $$630,$ terms $\frac{2}{10},\frac{n}{30}.,],[26,$Sold merchandise on account to G$.$ Green, invoice $347,$ $$1840.,],[29,$Sold merchandise on account to Bryde Ltd$,$ invoice $348,$ $$1200.,]]$

Required

$($a$)$Complete the requirements below, assuming that the business is not registered for the GST$.$

i$.$ Establish all necessary general ledger accounts, accounts receivable subsidiary ledger accounts, and accounts payable subsidiary ledger accounts. Use the following account numbers: Accounts Receivable, $1200$; Accounts Payable, $2200$; Sales, $4100$; Purchases $5100.$

ii$.$ Enter the transactions for April in the appropriate special journals.

iii. Post the data from the journals to the general ledger and subsidiary accounts.

iv$.$ Prepare a schedule of the accounts receivable subsidiary ledger and the accounts payable subsidiary ledger as at $30$ April to prove that their totals are equal to the balances of the control accounts.