CHAPTER 5 SPECIAL TRANSACTIONS

Transcription

1 CHAPTER 5 SPECIAL TRANSACTIONS Solution 5.1 General Journal of B Bower Jul 1 Inventory Bank Land & buildings Plant & equipment Accounts payable M Jones Capital B Bowen Assets and liabilities on commencement of business Solution 5.2 General Journal of B Murphy 20X5 Jan 1 Inventory Accounts receivable P O Brien Land Buildings Accounts payable S O Rourke Bank Loan Advance Finance Co % Mortgage on buildings Capital B Murphy Assets and liabilities on commencement of business Solution 5.3 General Journal of T Kruse 20X7 Mar 1 Bank Capital Capital introduced on commencement of business Apr 1 Motor vehicle Plant Capital Additional capital introduced Solution 5.4 General Journal of G Williams 20X4 Sep 1 Inventory Bank Capital Assets and liabilities on commencement of business Sep 15 Office furniture Computers Capital Additional capital introduced 65

2 Solutions to Accounting A Practical Approach Solution 5.5 General Journal of A Head Mar 1 Bank Capital Capital introduced at commencement 15 Inventory Furniture and fittings Plant and equipment Computers Vendor D Tail Purchase of business as a going concern Vendor D Tail Bank Discharge of purchase consideration Solution 5.6 General Journal of E Ball 20X1 Oct 1 Bank Loan Tiger Finance Co Capital Capital introduced at commencement 15 Inventory Furniture and fittings Motor vehicle Office equipment Goodwill Vendor G Jack Purchase of business as a going concern Vendor G Jack Bank Discharge of purchase consideration Solution 5.7 General Journal of H Minchan 20X4 June 1 Drawings 500 Bank 500 Cash withdrawn for personal use 15 Drawings 400 Bank 400 Drew cheque for golf club subscription Solution 5.8 General Journal of G Monty 20X6 April 1 Drawings Bank Drew cheque for refrigerator for private use 15 Drawings 450 Bank 450 Drew cheque for repairs to private motor vehicle 66

3 Chapter 5: Special Transactions Solution 5.9 (a) General Journal of C Teague 20X1 Feb 15 Drawings 517 GST paid 47 Inventory 470 Goods withdrawn for personal use 28 Drawings 891 GST paid 81 Inventory 810 Goods withdrawn for personal use 20X1 Feb 15 Inventory Inventory Drawings Solution 5.10 General Journal of R Clarke Oct 20 Motor vehicle GST paid Bank Accounts payable Mann Motors P/L Purchase of motor vehicle on credit after payment of cash deposit 31 Office furniture GST paid 110 Bank Cash purchase of office furniture Solution 5.11 General Journal of K Webb July 1 Computers (or office equipment) GST paid 170 Bank 200 Accounts payable - Megabyte Supply Co Purchase of a computer on credit after payment of a cash deposit Computers (or office equipment) 450 GST paidaccount 45 Bank 495 Cash purchase of computer equipment Solution 5.12 General Journal of I Doyle 20X6 Aug 3 Bank 792 GST collected 72 Office furniture 720 Office furniture sold for book value 15 Accounts receivable P Jones GST collected Motor vehicle Motor vehicle sold for book value Solution 5.13 Office Equipment 20X7 20X7 July 1 Balance b/d 900 July 15 Bank Accounts payable Bell Suppliers

4 Solutions to Accounting A Practical Approach Solution 5.14 General Journal of P Jones 20X1 Nov 1 Drawings 275 Inventory 250 GST paid 25 Goods withdrawn for private use 8 Accounts receivable H Miller 187 Office equipment 170 GST collected 17 Sold office equipment on credit 9 Plant Capital Plant introduced as additional capital 15 Motor vehicle GST paid Bank Accounts payable M V Retailers Purchase of motor vehicle on credit after payment of cash deposit Solution 5.15 General Journal of J Johns (a) Bank Inventory Land & buildings GST collected 200 Mortgage Capital J Johns Assets and liabilities at commencement of business Accounts receivable B Good Machinery GST collected 500 Sale of machinery on credit (c) Machinery GST paid Bank Accounts payable M Joyce Purchase of machinery on credit after payment of cash deposit (d) Bank Capital Additional capital introduced Solution 5.16 General Journal of A Rowe (a) Accounts Receivable R Clarke 55 GST collected 5 Late fee income 50 Late fee due on overdue account Late fee expense 30 GST paid 3 Accounts payable R Little 33 Expenses incurred due to account overlooked Solution 5.17 General Journal of L Boyd (a) Accounts Receivable M Rasheed 88 GST collected 8 Late fee income 80 Late fee due on overdue account Late fee expense 40 GST paid 4 Accounts payable I Conopoulos 44 Expenses incurred due to account overlooked 68

5 Chapter 5: Special Transactions Solution 5.18 General Journal of M Tee (a) Late fee expense 60 GST paid 6 Accounts payable Optical Ltd 66 Expenses incurred due to account overlooked Accounts Receivable Local Mart 121 GST collected 11 Late fee income 110 Late fee due on overdue account Solution 5.19 (a) General Journal of D Burge 20X9 Aug 1 Bank Accounts receivable S King Received in part payment of account 6 Accounts receivable S King Bank Recording dishonour of cheque received on 1 August Accounts Receivable S King 20X9 20X9 Aug 1 Balance b/d Aug 1 Bank Bank (cheque dishonoured) Balance c/d Sep 1 Balance b/d Solution 5.20 General Journal of H Hamp May 5 Bank Accounts receivable A Munce Part payment of account 7 Bank Sales 940 GST collected 94 Cash sale 10 Accounts receivable A Munce Bank Dishonour of cheque received May 5 12 Sales 940 GST collected 94 Bank Dishonour of cheque received May 7 Bank charges 70 Bank 70 Bank charges incurred when cheque dishonoured Accounts receivable A Munce 70 Bank charges 70 Bank charges incurred due to cheque dishonoured Solution 5.21 (a) General Journal of C Stevenson 20X1 Jun 17 Accounts receivable R Yap Sales GST collected 275 Goods sold on credit 21 Bank Accounts receivable R Yap

6 Solutions to Accounting A Practical Approach Cheque received for payment of account 25 Accounts receivable R Yap Bank Dishonour of cheque received on June 21 Accounts Receivable R Yap 20X1 20X1 June 17 Sales June 21 Bank Bank (cheque dishonoured) Balance c/d July 1 Balance b/d Solution 5.22 (a) General Journal of C Need 20X5 June 3 Bank Accounts receivable G Scimone Cheque received for payment of account 7 Accounts receivable G Scimone Bank Cheque received on June 3 dishonoured Bank charges 45 Bank 45 Bank charges incurred for dishonoured cheque 7 Accounts receivable G Scimone 45 Bank charges 45 Bank charges incurred when cheque dishonoured Accounts Receivable G Scimone 20X5 20X5 June 1 Balance b/d June 3 Bank Bank (cheque dishonoured) Balance c/d Bank charges July 1 Balance b/d Solution 5.23 General Journal of J Ford Bad debts Accounts receivable L Moloney Bad debt written off Solution 5.24 (a) General Journal of M Wilson June 30 Bad debts GST collected 120 Accounts receivable R Thompson Bad debt written off Accounts Receivable R Thompson Jan 15 Balance b/d June 30 Bad debts GST collected Solution 5.25 (a) 70

7 Chapter 5: Special Transactions General Journal of M Dawson June 15 Bank Accounts receivable S Arnold Part payment of account $0.23 in $ on $5 000 Bad debts GST collected 350 Accounts receivable S Arnold Bad debt written off Accounts Receivable S Arnold Apr 1 Balance b/d Jun 15 Bank Bad debts Solution 5.26 (a) General Journal of M Metzger 20X9 Feb 25 Bank 836 Accounts receivable D Spriggs 836 Cash received for part payment of account (4 180 x $0.20) Bad debts GST collected 304 Accounts receivable D Spriggs Bad debt written off Accounts Receivable D Spriggs 20X9 Nov 1 Sales Feb 25 Bank 836 Bad debts Solution 5.27 General Journal of E Heyer June 30 Bad debts GST collected 420 Accounts receivable G Ryan Bad debt written off Oct 28 Accounts receivable G Ryan GST collected 420 Bad debts recovered Bad debt previously written off now received Bank Accounts receivable G Ryan Cash received for amount owing Solution 5.28 (a) General Journal of J Brown Jun 30 Bad debts GST collected 576 Accounts receivable J Cassidy Bad debt written off Nov 3 Accounts receivable J Cassidy GST collected

8 Solutions to Accounting A Practical Approach Bad debts recovered Part bad debt previously written off now received Bank Accounts receivable J Cassidy Cash received for amount owing Accounts Receivable J Cassidy April 3 Sales June 30 Bad debts Nov 3 Bad debts recovered Nov 3 Bank Solution 5.29 General Journal of J Simmonds Accounts payable G Elley Accounts receivable G Elley Contra account Bank Accounts receivable G Elley Received payment for balance of account Solution 5.30 General Journal of A Mitchell Accounts payable B Kennedy Accounts receivable B Kennedy Contra account Accounts payable B Kennedy Bank Payment of balance of account Solution 5.31 Transaction Debit Credit 1 Proprietor introduced cash as additional capital Bank Capital S Klim 2 Purchased motor vehicle on credit from Lanock Motors 3 M Riley charged S Klim a late fee on overdue account 4 Cheque received from T Brown (debtor) has been returned by the bank dishonoured 5 S Klim charge T Tran (a debtor) a late fee on an overdue account Motor vehicle GST paid Late fee expense GST paid Accounts receivable T Brown Accounts receivable T Tran Accounts payable Lanock Motors Accounts payable M Riley Bank Late fee income GST collected 6 Debt owing by T Brown written off as a bad debt Bad debts GST collected Accounts receivable T Brown 7 Sold motor vehicle for cash Bank Motor vehicle GST collected 8 Debt of T Brown previously written off has been recovered and the cash has been received Accounts receivable T Brown Bank Bad debts recovered GST collected Accounts receivable T Brown Solution 5.32 (a) & General Journal Leon Tevlet July 1 Land & buildings Plant & equipment 750 Inventory Bank

9 Chapter 5: Special Transactions Accounts receivable W Vilson Accounts receivable V Linall GST paid Accounts payable I Macano Accounts payable K Tinto Capital Assets and liabilities introduced at commencement 2 Inventory 350 GST paid 35 Accounts payable M Jolski 385 Purchase of goods on credit Accounts receivable N Rand 880 Sales 800 GST collected 80 Goods sold on credit Cost of goods sold 460 Inventory 460 Cost of goods sold to N Rand 3 Motor vehicles GST paid Bank Accounts payable Morgan Motors Purchase of motor vehicle with a cash deposit 4 Bank Sales GST collected 427 Goods sold for cash Cost of goods sold Inventory Cost of goods sold for cash 5 Accounts payable M Jolski 22 Inventory 20 GST paid 2 Credit note received for overcharge 7 Drawings 330 Inventory 300 GST paid 30 Stock drawn for private use 9 Bank Accounts receivable V Linall Cheque received for amount owing 14 Plant & equipment GST paid 135 Accounts payable B Sooth Plant & equipment bought on credit Accounts payable B Sooth 550 Plant & equipment 500 GST collected 50 Trade-in allowed on purchase of new plant 21 Late fee expense 110 GST paid 11 Accounts payable I Macano 121 Late fee charged on overdue account 27 Bank 847 Accounts receivable N Rand 847 Cheque received for amount owing 31 Accounts receivable N Rand 847 Bank 847 Recording N Rand s cheque dishonoured (c) General Ledger of Leon Tevlet Inventory July 1 Capital July 2 Cost of goods sold Accounts payable M Jolski Cost of goods sold

10 Solutions to Accounting A Practical Approach 5 Accounts payable M Jolski 20 7 Drawings Balance c/d Aug 1 Balance b/d Accounts Receivable W Vilson July 1 Capital July 1 Accounts Receivable V Linall July 1 Capital July 9 Bank Accounts Receivable N Rand July 2 Sales 880 July 27 Bank Bank Balance c/d Aug 1 Balance b/d 880 Bank July 1 Capital July 3 Motor vehicle Sales Accounts receivable N Rand Accounts receivable V Linall Accounts receivable N Rand 847 Balance c/d Aug 1 Balance b/d GST paid July 1 Capital July 5 Accounts payable M Jolski 2 2 Accounts payable M Jolski 35 7 Drawings 30 3 Accounts payable Morgan Motors Accounts payable B Sooth Accounts payable I Macano Balance c/d Aug 1 Balance b/d Land and Buildings July 1 Capital Plant and Equipment July 1 Capital 750 July 14 Accounts payable B Sooth Accounts payable B Sooth Balance c/d Aug 1 Balance b/d Motor Vehicle July 3 Accounts payable Morgan Motors Accounts Payable I Macano July 1 Capital Late fee expense Accounts Payable M Jolski July 5 Inventory 22 July 2 Inventory

11 Chapter 5: Special Transactions 31 Balance c/d Aug 1 Balance b/d 363 Accounts Payable Morgan Motors Ltd July 3 Motor vehicle Accounts Payable B Sooth July 14 Plant & equipment 550 July 14 Plant & equipment Balance c/d Aug 1 Balance b/d 935 Accounts Payable K Tinto July 1 Capital GST collected July 2 Accounts receivable N Rand 80 4 Bank Accounts payable B Sooth Drawings July 7 Inventory 330 Cost of Goods Sold July 2 Inventory Inventory Late Fee Expense July 21 Accounts payable I Macano 110 Capital July 1 Assets & Liabilities Sales July 2 Accounts receivable N Rand Bank (d) Leon Tevlet Trial Balance as at 31 July $ $ Inventory Accounts receivable W Vilson Accounts receivable N Rand 880 Bank GST paid Land & buildings Plant & equipment Motor vehicle Accounts payable I Macano Accounts payable M Jolski

12 Solutions to Accounting A Practical Approach Accounts payable Morgan Motors Accounts payable B Sooth 935 Accounts payable K Tinto GST collected 557 Capital Drawings 330 Sales Cost of goods sold Interest expense Solution 5.33 General Journal Sina Tinkom July 2 Bank Sales GST collected 943 Goods sold on credit Cost of goods sold Inventory Cost of good sold for cash 3 Bank Accounts receivable R Archer Cheque received for amount owing 9 Inventory GST paid 117 Accounts payable T Wicker Goods purchased on credit 10 Bad debts GST collected 175 Accounts receivable B Preston Bad debt written off 17 Drawings 484 Inventory 440 GST paid 44 Stock withdrawn for private use 19 Late fee expense 120 GST paid 12 Accounts payable A Bond 132 Charged on overdue account 21 Accounts payable A Bond 500 Bank 500 Payment on account 23 Accounts payable J Forest Bank Payment of account owing Inventory GST paid 217 Bank Cash purchases of trading goods 24 Repairs to equipment 470 GST paid 47 Accounts payable Yanso Ltd 517 Invoice received for equipment repairs Accounts payable T Wicker 88 GST paid 8 Inventory 80 Credit note received for goods returned 27 Accounts payable Yanso Ltd 55 GST paid 5 Repairs to equipment 50 Credit note received for overcharge 30 Wages Bank Paid casual wages for month 76

13 Chapter 5: Special Transactions 31 Accounts receivable B Preston 561 GST collected 51 Bad debts recovered 510 Reinstating bad debt recovered Bank 561 Accounts receivable B Preston 561 Cheque received for bad debt recovered (c) General Ledger of Sina Tinkom Inventory July 1 Balance b/d July 2 Cost of goods sold Accounts payable T Wicker Drawings Bank Accounts payable T Wicker Balance c/d Aug 1 Balance b/d Accounts Receivable R Archer July 1 Balance b/d July 3 Bank b/d Accounts Receivable B Preston July 1 Balance b/d July 10 Bad debts Bad debts recovered Bank Bank July 2 Sales July 1 Balance b/d Accounts receivable R Archer Accounts payable A Bond Accounts receivable B Preston Accounts payable J Forest Inventory Wages Balance Aug 1 Balance b/d 825 GST paid July 1 Balance b/d July 17 Drawings 44 9 Accounts payable T Wicker Accounts payable T Wicker 8 19 Accounts payable A Bond Accounts payable Yanso Ltd 5 23 Inventory Accounts payable Yanso Ltd Balance c/d Aug 1 Balance b/d Motor Vehicles July 1 Balance b/d Office Furniture and Equipment July 1 Balance b/d Accounts Payable Marvel Motors July 1 Balance b/d Accounts Payable J Forrest July 23 Bank July 1 Balance b/d

14 Solutions to Accounting A Practical Approach Accounts Payable A Bond July 21 Bank 500 July 1 Balance b/d Balance c/d Late fee expense Aug 1 Balance b/d Accounts Payable T Wicker July 24 Inventory 88 July 9 Inventory Balance c/d Aug 1 Balance b/d Accounts Payable Yanso Ltd July 27 Repairs to equipment 55 July 24 Repairs to equipment Balance c/d Aug 1 Balance b/d 462 GST collected July 10 Accounts receivable B Preston 175 July 2 Bank Balance c/d Accounts receivable B Preston Aug 1 Balance b/d 819 Drawings July 17 Inventory 484 Cost of Goods Sold July 2 Inventory Wages July 27 Bank Capital July 1 Balance b/d Sales July 31 Bank Bad Debts Recovered July 31 Accounts receivable B Preston 510 Repairs to Equipment July 24 Accounts payable Yanso Ltd 470 July 27 Accounts payable Yanso Ltd Balance c/d Aug 1 Balance b/d 420 Bad Debts July 10 Accounts receivable B Preston

15 Chapter 5: Special Transactions Late Fee Expense July 19 Accounts payable A Bond 120 (d) Trial Balance of Sina Tinkom as at 31 July Debit Credit $ $ Inventory Bank 825 GST paid Motor vehicles Office furniture & equipment Accounts payable Marvel Motors Accounts payable A Bond Accounts payable T Wicker Accounts payable Yanso Ltd 462 GST collected 819 Capital Drawings 484 Sales Bad debts recovered 510 Cost of goods sold Wages Repairs to equipment 420 Bad debts Late fee expense Solution 5.34 General Journal of Jack Kure Jan 2 Accounts receivable B Moulas Fees income GST collected 264 Sent invoice for services given 4 Accounts payable L Hart Bank Payment of account Stationery 640 GST paid 64 Accounts payable I Lucas 704 Stationery purchased on credit 6 Bad debts GST collected 262 Accounts receivable J Clarke Bad debt written off 7 Fees income 140 GST collected 14 Accounts receivable B Moulas 154 Sent credit note for overcharge 9 Donation 275 Bank 275 Donation to Boy Scouts Association Accounts payable I Lucas 704 Bank 704 Payment of balance owing 14 Accounts receivable J Turner 506 Office furniture & equipment 460 GST collected 46 Sent invoice for furniture sold 15 Accounts receivable R Stodart

16 Solutions to Accounting A Practical Approach Bad debts recovered 240 GST collected 24 Re-instating bad debt recovered Bank 264 Accounts receivable R Stodart 264 Part payment of amount previously written off 21 Bank Accounts receivable B Moulas Cheque received for amount owing on Stationery 160 GST paid 16 Accounts payable Paper Products 176 Purchase of stationery on credit 24 Wages Bank Wages paid 26 Drawings 184 Bank 184 Paid private residence water rates 28 Rent GST paid 180 Bank Paid rent for premises 31 Accounts payable Paper Products 33 Stationery 30 GST paid 3 Credit note received for overcharge (c) General Ledger of Jack Kure Accounts Receivable B Moulas Jan 1 Balance b/d Jan 7 Fees income Fees income Bank Balance c/d Feb 1 Balance b/d Accounts Receivable J Clarke Jan 1 Balance b/d Jan 6 Bad debts Accounts Receivable J Turner Jan 14 Office furniture & equipment 506 Accounts Receivable R Stodart Jan 15 Bad debts recovered 264 Jan 15 Bank 264 Bank Jan 15 Accounts receivable R Stodart 264 Jan 1 Balance b/d Accounts receivable B Moulas Accounts payable L Hart Balance c/d Donations 275 Accounts receivable I Lucas Wages Drawings Rent Feb 1 Balance b/d

17 Chapter 5: Special Transactions GST paid Jan 1 Balance b/d 280 Jan 31 Accounts payable Paper Products 3 4 Accounts payable I Lucas 64 Balance c/d Accounts payable Paper Products Bank Feb 1 Balance b/d 537 Office Furniture and Equipment Jan 1 Balance b/d Jan 14 Accounts receivable J Turner Balance c/d Feb 1 Balance b/d Motor Vehicle Jan 1 Balance b/d Machinery Jan 1 Balance b/d Accounts Payable L Hart Jan 1 Bank Jan 1 Balance b/d Accounts Payable J Egan Jan 1 Balance b/d Accounts Payable I Lucas Jan 9 Bank 704 Jan 4 Stationery 704 Accounts Payable Paper Products Ltd Jan 31 Stationery 33 Jan 22 Stationery 176 Balance c/d Feb 1 Balance b/d 143 GST collected Jan 6 Accounts receivable J Clarke 262 Jan 2 Accounts receivable B Moulas Accounts receivable B Moulas Accounts receivable J Turner Balance c/d Accounts receivable R Stodart Feb 1 Balance b/d 58 Drawings Jan 26 Bank 184 Capital Jan 1 Balance b/d Fees Income Jan 7 Accounts receivable B Moulas 140 Jan 2 Accounts receivable B Moulas Balance c/d Feb 1 Balance b/d

18 Solutions to Accounting A Practical Approach Wages Jan 24 Bank Rent Jan 28 Bank Bad Debts Recovered Jan 15 Accounts receivable R Stodart 240 Stationery Jan 4 Accounts payable I Lucas 640 Jan 31 Accounts payable Paper Products Accounts payable Paper Products 160 Balance c/d Feb 1 Balance b/d 770 Donations Jan 9 Bank 275 Bad Debts Jan 6 Accounts receivable J Clarke (d) Trial Balance of Jack Kure as at 31 January Debit Credit $ $ Accounts receivable B Moulas Accounts receivable J Turner 506 Bank GST paid 537 Office furniture & equipment Motor vehicles Machinery Accounts payable J Egan Accounts payable Paper Products Ltd 143 GST collected 58 Capital Drawings 184 Fees income Bad debts recovered 240 Wages Rent Stationery 770 Donations 275 Bad debts