CHAPTER 5 SPECIAL TRANSACTIONS Solution 5.1 General Journal of B Bower Jul 1 Inventory 3 700 Bank 6 540 Land & buildings 160 000 Plant & equipment 18 300 Accounts payable M Jones 2 460 Capital B Bowen 186 080 Assets and liabilities on commencement of business Solution 5.2 General Journal of B Murphy 20X5 Jan 1 Inventory 18 800 Accounts receivable P O Brien 11 000 Land 50 000 Buildings 140 000 Accounts payable S O Rourke 8 500 Bank 4 600 Loan Advance Finance Co 14 000 14% Mortgage on buildings 38 000 Capital B Murphy 154 700 Assets and liabilities on commencement of business Solution 5.3 General Journal of T Kruse 20X7 Mar 1 Bank 10 000 Capital 10 000 Capital introduced on commencement of business Apr 1 Motor vehicle 24 200 Plant 5 940 Capital 30 140 Additional capital introduced Solution 5.4 General Journal of G Williams 20X4 Sep 1 Inventory 2 200 Bank 12 800 Capital 15 000 Assets and liabilities on commencement of business Sep 15 Office furniture 10 780 Computers 2 860 Capital 13 640 Additional capital introduced 65
Solutions to Accounting A Practical Approach Solution 5.5 General Journal of A Head Mar 1 Bank 60 000 Capital 60 000 Capital introduced at commencement 15 Inventory 11 000 Furniture and fittings 7 000 Plant and equipment 6 000 Computers 8 000 Vendor D Tail 32 000 Purchase of business as a going concern Vendor D Tail 32 000 Bank 32 000 Discharge of purchase consideration Solution 5.6 General Journal of E Ball 20X1 Oct 1 Bank 80 000 Loan Tiger Finance Co 40 000 Capital 40 000 Capital introduced at commencement 15 Inventory 6 000 Furniture and fittings 14 000 Motor vehicle 20 000 Office equipment 5 000 Goodwill 5 000 Vendor G Jack 50 000 Purchase of business as a going concern Vendor G Jack 50 000 Bank 50 000 Discharge of purchase consideration Solution 5.7 General Journal of H Minchan 20X4 June 1 Drawings 500 Bank 500 Cash withdrawn for personal use 15 Drawings 400 Bank 400 Drew cheque for golf club subscription Solution 5.8 General Journal of G Monty 20X6 April 1 Drawings 1 200 Bank 1 200 Drew cheque for refrigerator for private use 15 Drawings 450 Bank 450 Drew cheque for repairs to private motor vehicle 66
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Transactions Solution 5.9 (a) General Journal of C Teague 20X1 Feb 15 Drawings 517 GST paid 47 Inventory 470 Goods withdrawn for personal use 28 Drawings 891 GST paid 81 Inventory 810 Goods withdrawn for personal use 20X1 Feb 15 Inventory 517 28 Inventory 891 1 408 Drawings Solution 5.10 General Journal of R Clarke Oct 20 Motor vehicle 40 000 GST paid 4 000 Bank 2 200 Accounts payable Mann Motors P/L 41 800 Purchase of motor vehicle on credit after payment of cash deposit 31 Office furniture 1 100 GST paid 110 Bank 1 210 Cash purchase of office furniture Solution 5.11 General Journal of K Webb July 1 Computers (or office equipment) 1 700 GST paid 170 Bank 200 Accounts payable - Megabyte Supply Co 1 670 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 18 260 GST collected 1 660 Motor vehicle 16 600 Motor vehicle sold for book value Solution 5.13 Office Equipment 20X7 20X7 July 1 Balance b/d 900 July 15 Bank 900 31 Accounts payable Bell Suppliers 1 240 67
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 3 850 Capital 3 850 Plant introduced as additional capital 15 Motor vehicle 15 000 GST paid 1 500 Bank 2 500 Accounts payable M V Retailers 14 000 Purchase of motor vehicle on credit after payment of cash deposit Solution 5.15 General Journal of J Johns (a) Bank 5 000 Inventory 2 400 Land & buildings 100 000 GST collected 200 Mortgage 70 000 Capital J Johns 37 200 Assets and liabilities at commencement of business Accounts receivable B Good 5 500 Machinery 5 000 GST collected 500 Sale of machinery on credit (c) Machinery 12 500 GST paid 1 250 Bank 1 375 Accounts payable M Joyce 12 375 Purchase of machinery on credit after payment of cash deposit (d) Bank 5 000 Capital 5 000 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
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 2 300 Accounts receivable S King 2 300 Received in part payment of account 6 Accounts receivable S King 2 300 Bank 2 300 Recording dishonour of cheque received on 1 August Accounts Receivable S King 20X9 20X9 Aug 1 Balance b/d 4 900 Aug 1 Bank 2 300 6 Bank (cheque dishonoured) 2 300 31 Balance c/d 4 900 7 200 7 200 Sep 1 Balance b/d 4 900 Solution 5.20 General Journal of H Hamp May 5 Bank 1 700 Accounts receivable A Munce 1 700 Part payment of account 7 Bank 1 034 Sales 940 GST collected 94 Cash sale 10 Accounts receivable A Munce 1 700 Bank 1 700 Dishonour of cheque received May 5 12 Sales 940 GST collected 94 Bank 1 034 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 3 025 Sales 2 750 GST collected 275 Goods sold on credit 21 Bank 3 025 Accounts receivable R Yap 3 025 69
Solutions to Accounting A Practical Approach Cheque received for payment of account 25 Accounts receivable R Yap 3 025 Bank 3 025 Dishonour of cheque received on June 21 Accounts Receivable R Yap 20X1 20X1 June 17 Sales 3 025 June 21 Bank 3 025 25 Bank (cheque dishonoured) 3 025 30 Balance c/d 3 025 6 050 6 050 July 1 Balance b/d 3 025 Solution 5.22 (a) General Journal of C Need 20X5 June 3 Bank 2 200 Accounts receivable G Scimone 2 200 Cheque received for payment of account 7 Accounts receivable G Scimone 2 200 Bank 2 200 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 2 200 June 3 Bank 2 200 7 Bank (cheque dishonoured) 2 200 30 Balance c/d 2 245 Bank charges 45 4 445 4 445 July 1 Balance b/d 2 245 Solution 5.23 General Journal of J Ford Bad debts 1 200 Accounts receivable L Moloney 1 200 Bad debt written off Solution 5.24 (a) General Journal of M Wilson June 30 Bad debts 1 200 GST collected 120 Accounts receivable R Thompson 1 320 Bad debt written off Accounts Receivable R Thompson Jan 15 Balance b/d 1 320 June 30 Bad debts 1 200 GST collected 120 1 320 1 320 Solution 5.25 (a) 70
Chapter 5: Special Transactions General Journal of M Dawson June 15 Bank 1 150 Accounts receivable S Arnold 1 150 Part payment of account $0.23 in $ on $5 000 Bad debts 3 500 GST collected 350 Accounts receivable S Arnold 3 850 Bad debt written off Accounts Receivable S Arnold Apr 1 Balance b/d 5 000 Jun 15 Bank 1 150 Bad debts 3 850 5 000 5 000 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 3 040 GST collected 304 Accounts receivable D Spriggs 3 344 Bad debt written off Accounts Receivable D Spriggs 20X9 Nov 1 Sales 4 180 Feb 25 Bank 836 Bad debts 3 344 4 180 4 180 Solution 5.27 General Journal of E Heyer June 30 Bad debts 4 200 GST collected 420 Accounts receivable G Ryan 4 620 Bad debt written off Oct 28 Accounts receivable G Ryan 4 620 GST collected 420 Bad debts recovered 4 200 Bad debt previously written off now received Bank 4 620 Accounts receivable G Ryan 4 620 Cash received for amount owing Solution 5.28 (a) General Journal of J Brown Jun 30 Bad debts 5 760 GST collected 576 Accounts receivable J Cassidy 6 336 Bad debt written off Nov 3 Accounts receivable J Cassidy 1 584 GST collected 144 71
Solutions to Accounting A Practical Approach Bad debts recovered 1 440 Part bad debt previously written off now received Bank 1 584 Accounts receivable J Cassidy 1 584 Cash received for amount owing Accounts Receivable J Cassidy April 3 Sales 6 336 June 30 Bad debts 6 336 Nov 3 Bad debts recovered 1 584 Nov 3 Bank 1 584 Solution 5.29 General Journal of J Simmonds Accounts payable G Elley 1 300 Accounts receivable G Elley 1 300 Contra account Bank 1 400 Accounts receivable G Elley 1 400 Received payment for balance of account Solution 5.30 General Journal of A Mitchell Accounts payable B Kennedy 1 800 Accounts receivable B Kennedy 1 800 Contra account Accounts payable B Kennedy 1 900 Bank 1 900 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 185 632 Plant & equipment 750 Inventory 17 256 Bank 4 368 72
Chapter 5: Special Transactions Accounts receivable W Vilson 3 900 Accounts receivable V Linall 1 935 GST paid 2 100 Accounts payable I Macano 2 736 Accounts payable K Tinto 1 871 Capital 211 334 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 21 360 GST paid 2 136 Bank 3 496 Accounts payable Morgan Motors 20 000 Purchase of motor vehicle with a cash deposit 4 Bank 4 697 Sales 4 270 GST collected 427 Goods sold for cash Cost of goods sold 2 380 Inventory 2 380 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 1 935 Accounts receivable V Linall 1 935 Cheque received for amount owing 14 Plant & equipment 1 350 GST paid 135 Accounts payable B Sooth 1 485 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 17 256 July 2 Cost of goods sold 460 2 Accounts payable M Jolski 350 4 Cost of goods sold 2 380 73
Solutions to Accounting A Practical Approach 5 Accounts payable M Jolski 20 7 Drawings 300 31 Balance c/d 14 446 17 606 17 606 Aug 1 Balance b/d 14 446 Accounts Receivable W Vilson July 1 Capital 3 900 July 1 Accounts Receivable V Linall July 1 Capital 1 935 July 9 Bank 1 935 Accounts Receivable N Rand July 2 Sales 880 July 27 Bank 847 31 Bank 847 31 Balance c/d 880 1 727 1 727 Aug 1 Balance b/d 880 Bank July 1 Capital 4 368 July 3 Motor vehicle 3 496 4 Sales 4 697 31 Accounts receivable N Rand 847 9 Accounts receivable V Linall 1 935 27 Accounts receivable N Rand 847 Balance c/d 7 504 11 847 11 847 Aug 1 Balance b/d 7 504 GST paid July 1 Capital 2 100 July 5 Accounts payable M Jolski 2 2 Accounts payable M Jolski 35 7 Drawings 30 3 Accounts payable Morgan Motors 2 136 14 Accounts payable B Sooth 135 21 Accounts payable I Macano 11 31 Balance c/d 4 385 4 417 4 417 Aug 1 Balance b/d 4 385 Land and Buildings July 1 Capital 185 632 Plant and Equipment July 1 Capital 750 July 14 Accounts payable B Sooth 500 14 Accounts payable B Sooth 1 350 31 Balance c/d 1 600 2 100 2 100 Aug 1 Balance b/d 1 600 Motor Vehicle July 3 Accounts payable Morgan Motors 21 360 Accounts Payable I Macano July 1 Capital 2 736 21 Late fee expense 121 2 857 Accounts Payable M Jolski July 5 Inventory 22 July 2 Inventory 385 74
Chapter 5: Special Transactions 31 Balance c/d 363 385 385 Aug 1 Balance b/d 363 Accounts Payable Morgan Motors Ltd July 3 Motor vehicle 20 000 Accounts Payable B Sooth July 14 Plant & equipment 550 July 14 Plant & equipment 1 485 31 Balance c/d 935 1 485 1 485 Aug 1 Balance b/d 935 Accounts Payable K Tinto July 1 Capital 1 871 GST collected July 2 Accounts receivable N Rand 80 4 Bank 427 14 Accounts payable B Sooth 50 557 Drawings July 7 Inventory 330 Cost of Goods Sold July 2 Inventory 460 4 Inventory 2 380 2 840 Late Fee Expense July 21 Accounts payable I Macano 110 Capital July 1 Assets & Liabilities 211 334 Sales July 2 Accounts receivable N Rand 800 4 Bank 4 270 5 070 (d) Leon Tevlet Trial Balance as at 31 July $ $ Inventory 14 446 Accounts receivable W Vilson 3 900 Accounts receivable N Rand 880 Bank 7 504 GST paid 4 385 Land & buildings 185 632 Plant & equipment 1 600 Motor vehicle 21 360 Accounts payable I Macano 2 857 Accounts payable M Jolski 363 75
Solutions to Accounting A Practical Approach Accounts payable Morgan Motors 20 000 Accounts payable B Sooth 935 Accounts payable K Tinto 1 871 GST collected 557 Capital 211 334 Drawings 330 Sales 5 070 Cost of goods sold 2 840 Interest expense 110 242 987 242 987 Solution 5.33 General Journal Sina Tinkom July 2 Bank 10 373 Sales 9 430 GST collected 943 Goods sold on credit Cost of goods sold 5 270 Inventory 5 270 Cost of good sold for cash 3 Bank 2 862 Accounts receivable R Archer 2 862 Cheque received for amount owing 9 Inventory 1 170 GST paid 117 Accounts payable T Wicker 1 287 Goods purchased on credit 10 Bad debts 1 750 GST collected 175 Accounts receivable B Preston 1 925 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 3 149 Bank 3 149 Payment of account owing Inventory 2 170 GST paid 217 Bank 2 387 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 1 300 Bank 1 300 Paid casual wages for month 76
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 49 863 July 2 Cost of goods sold 5 270 9 Accounts payable T Wicker 1 170 17 Drawings 440 23 Bank 2 170 24 Accounts payable T Wicker 80 31 Balance c/d 47 413 53 203 53 203 Aug 1 Balance b/d 47 413 Accounts Receivable R Archer July 1 Balance b/d 2 862 July 3 Bank b/d 2 862 Accounts Receivable B Preston July 1 Balance b/d 1 925 July 10 Bad debts 1 925 31 Bad debts recovered 561 31 Bank 561 2 486 2 486 Bank July 2 Sales 10 373 July 1 Balance b/d 5 635 3 Accounts receivable R Archer 2 862 21 Accounts payable A Bond 500 31 Accounts receivable B Preston 561 23 Accounts payable J Forest 3 149 23 Inventory 2 387 27 Wages 1 300 31 Balance 825 13 796 13 796 Aug 1 Balance b/d 825 GST paid July 1 Balance b/d 3 972 July 17 Drawings 44 9 Accounts payable T Wicker 117 24 Accounts payable T Wicker 8 19 Accounts payable A Bond 12 27 Accounts payable Yanso Ltd 5 23 Inventory 217 24 Accounts payable Yanso Ltd 47 31 Balance c/d 4 308 4 365 4 365 Aug 1 Balance b/d 4 308 Motor Vehicles July 1 Balance b/d 28 400 Office Furniture and Equipment July 1 Balance b/d 16 475 Accounts Payable Marvel Motors July 1 Balance b/d 16 417 Accounts Payable J Forrest July 23 Bank 3 149 July 1 Balance b/d 3 149 77
Solutions to Accounting A Practical Approach Accounts Payable A Bond July 21 Bank 500 July 1 Balance b/d 1 981 31 Balance c/d 1 613 19 Late fee expense 132 2 113 2 113 Aug 1 Balance b/d 1 613 Accounts Payable T Wicker July 24 Inventory 88 July 9 Inventory 1 287 31 Balance c/d 1 199 1 287 1 287 Aug 1 Balance b/d 1 199 Accounts Payable Yanso Ltd July 27 Repairs to equipment 55 July 24 Repairs to equipment 517 31 Balance c/d 462 517 517 Aug 1 Balance b/d 462 GST collected July 10 Accounts receivable B Preston 175 July 2 Bank 943 31 Balance c/d 819 31 Accounts receivable B Preston 51 994 994 Aug 1 Balance b/d 819 Drawings July 17 Inventory 484 Cost of Goods Sold July 2 Inventory 5 270 Wages July 27 Bank 1 300 Capital July 1 Balance b/d 76 315 Sales July 31 Bank 9 430 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 50 31 Balance c/d 420 470 470 Aug 1 Balance b/d 420 Bad Debts July 10 Accounts receivable B Preston 1 750 78
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 47 413 Bank 825 GST paid 4 308 Motor vehicles 28 400 Office furniture & equipment 16 475 Accounts payable Marvel Motors 16 417 Accounts payable A Bond 1 613 Accounts payable T Wicker 1 199 Accounts payable Yanso Ltd 462 GST collected 819 Capital 76 315 Drawings 484 Sales 9 430 Bad debts recovered 510 Cost of goods sold 5 270 Wages 1 300 Repairs to equipment 420 Bad debts 1 750 Late fee expense 120 106 765 106 765 Solution 5.34 General Journal of Jack Kure Jan 2 Accounts receivable B Moulas 2 904 Fees income 2 640 GST collected 264 Sent invoice for services given 4 Accounts payable L Hart 1 765 Bank 1 765 Payment of account Stationery 640 GST paid 64 Accounts payable I Lucas 704 Stationery purchased on credit 6 Bad debts 2 620 GST collected 262 Accounts receivable J Clarke 2 882 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 264 79
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 3 960 Accounts receivable B Moulas 3 960 Cheque received for amount owing on 1.2. 22 Stationery 160 GST paid 16 Accounts payable Paper Products 176 Purchase of stationery on credit 24 Wages 1 300 Bank 1 300 Wages paid 26 Drawings 184 Bank 184 Paid private residence water rates 28 Rent 1 800 GST paid 180 Bank 1 980 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 3 960 Jan 7 Fees income 154 2 Fees income 2 904 21 Bank 3 960 31 Balance c/d 2 750 6 864 6 864 Feb 1 Balance b/d 2 750 Accounts Receivable J Clarke Jan 1 Balance b/d 2 882 Jan 6 Bad debts 2 882 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 11 295 21 Accounts receivable B Moulas 3 960 4 Accounts payable L Hart 1 765 31 Balance c/d 13 279 9 Donations 275 Accounts receivable I Lucas 704 24 Wages 1 300 26 Drawings 184 28 Rent 1 980 17 503 17 503 Feb 1 Balance b/d 13 279 80
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 537 22 Accounts payable Paper Products 16 28 Bank 180 540 540 Feb 1 Balance b/d 537 Office Furniture and Equipment Jan 1 Balance b/d 67 050 Jan 14 Accounts receivable J Turner 460 31 Balance c/d 66 590 67 050 67 050 Feb 1 Balance b/d 66 590 Motor Vehicle Jan 1 Balance b/d 18 400 Machinery Jan 1 Balance b/d 18 800 Accounts Payable L Hart Jan 1 Bank 1 765 Jan 1 Balance b/d 1 765 Accounts Payable J Egan Jan 1 Balance b/d 3 225 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 143 176 176 Feb 1 Balance b/d 143 GST collected Jan 6 Accounts receivable J Clarke 262 Jan 2 Accounts receivable B Moulas 264 7 Accounts receivable B Moulas 14 14 Accounts receivable J Turner 46 31 Balance c/d 58 15 Accounts receivable R Stodart 24 334 334 Feb 1 Balance b/d 58 Drawings Jan 26 Bank 184 Capital Jan 1 Balance b/d 95 087 Fees Income Jan 7 Accounts receivable B Moulas 140 Jan 2 Accounts receivable B Moulas 2 640 31 Balance c/d 2 500 2 640 2 640 Feb 1 Balance b/d 2 500 81
Solutions to Accounting A Practical Approach Wages Jan 24 Bank 1 300 Rent Jan 28 Bank 1 800 Bad Debts Recovered Jan 15 Accounts receivable R Stodart 240 Stationery Jan 4 Accounts payable I Lucas 640 Jan 31 Accounts payable Paper Products 30 22 Accounts payable Paper Products 160 Balance c/d 770 800 800 Feb 1 Balance b/d 770 Donations Jan 9 Bank 275 Bad Debts Jan 6 Accounts receivable J Clarke 2 620 (d) Trial Balance of Jack Kure as at 31 January Debit Credit $ $ Accounts receivable B Moulas 2 750 Accounts receivable J Turner 506 Bank 13 279 GST paid 537 Office furniture & equipment 66 590 Motor vehicles 18 400 Machinery 18 800 Accounts payable J Egan 3 225 Accounts payable Paper Products Ltd 143 GST collected 58 Capital 95 087 Drawings 184 Fees income 2 500 Bad debts recovered 240 Wages 1 300 Rent 1 800 Stationery 770 Donations 275 Bad debts 2 620 114 532 114 532 82