Record the following transactions in general ledger accounts.
Balance off the 'Cash at bank' account.
| Transaction | Details |
|---|---|
| 1 | Set up the business by introducing $150,000 in cash. |
| 2 | Purchase property costing $140,000. Pay in cash. |
| 3 | Purchase goods costing $5,000. Pay in cash. |
| 4 | Sell goods for $7,000. All cash sales. |
| 5 | Purchase goods costing $8,000. Pay in cash. |
| 6 | Pay a sundry expense of $100, by cheque. |
| 7 | Sell goods for $15,000. All cash sales. |
| 8 | Pay wages of $2,000 to an employee. |
| 9 | Pay postage costs of $100 by cheque. |
Note: A payment by cheque = a payment in cash.
Tip: Remember there is no such account as 'goods'.
State the journals required to record the following transactions in the general ledger:
Here is a ledger account from the general ledger of a business.
| Details | $ | Details | $ |
|---|---|---|---|
| Capital | 10,000 | Purchases | 300 |
| Sales | Rent | 2,500 | |
| Cash at bank | 1,000 | Electricity | 750 |
| New van | 15,000 |
Required:
Here is a cash at bank general ledger account at 30 June.
| Date | Details | $ | Date | Details | $ |
|---|---|---|---|---|---|
| 1 June | Balance b/d | 4,200 | 3 June | Purchases | 1,600 |
| 3 June | Sales | 3,700 | 8 June | Telephone expenses | 850 |
| 10 June | Sales | 6,100 | 15 June | Equipment | 2,000 |
| 15 June | Sales | 4,900 | 28 June | Purchases | 3,700 |
| 26 June | Sales | 8,800 | 29 June | Salaries payable | 14,200 |
Required:
Goods were sold to a credit customer at a list price of $1,250, subject to a trade discount of 20%. The customer has also been offered 2.5% discount for early settlement of the invoice. Show the relevant entries in the receivables and revenue general ledger accounts to record the initial transaction, and then record the subsequent receipt of cash in the receivables and the cash at bank account if the customer is not expected to take advantage of the settlement discount terms offered and subsequently pays outside of the discount period.
Goods were sold to a credit customer at a list price of $1,250, subject to a trade discount of 20%. The customer has also been offered 2.5% discount for early settlement of the invoice. Show the relevant entries in the receivables and revenue general ledger accounts to record the initial transaction, and then record the subsequent receipt of cash in the receivables and the cash at bank account if the customer is expected to take advantage of the settlement discount terms offered, and subsequently pays within the discount period.
Goods were sold to a credit customer at a list price of $1,250, subject to a trade discount of 20%. The customer has also been offered 2.5% discount for early settlement of the invoice. Show the relevant entries in the receivables and revenue general ledger accounts to record the initial transaction, and then record the subsequent receipt of cash in the receivables and the cash at bank account if the customer is expected to take advantage of the settlement discount terms offered, and subsequently pays after the discount period has expired.
Goods were sold to a credit customer at a list price of $1,250, subject to a trade discount of 20%. The customer has also been offered 2.5% discount for early settlement of the invoice. Show the relevant entries in the receivables and revenue general ledger accounts to record the initial transaction, and then record the subsequent receipt of cash in the receivables and the cash at bank account if the customer is not expected to take advantage of the settlement discount terms offered but who subsequently pays promptly within the early settlement period.
A purchase invoice with a value of $500 offering a 2% discount for early settlement is paid before the normal payment date by the business. Show the relevant entries in the payables and discounts received general ledger accounts of the customer.
Calculate the sales tax element on the following supplies assuming a sales tax rate of 20%: