COMPANY BACKGROUND

$$ Scallion Ltd began business on $1$ July $2022,$ specialising in the purchase and supply of packaging materials. An accounting system was designed and a chart of accounts was established. The business uses the periodic inventory system and is registered for GST at the rate of $10\%.$

$$ The company also employs two office staff who work a five$-$day week from Monday to Friday. One office staff member is responsible for overseeing the daily running of the business, including inventory ordering; the other maintains the company$$s accounting records.

ACCOUNTING SYSTEM

The company has a financial year$-$end $30$ June and prepares adjusting entries only at the end of the year. The firm uses the following journals to maintain its accounting records:

$$ Sales Journal: to record all credit sales of inventory

$$ Purchases Journal: to record all credit purchases of inventory

$$ Cash Receipts Journal: to record all cash receipts

$$ Cash Payments Journal: to record all cash payments

$$ General Journal: to record all transactions other than the above

Scallion Ltd uses subsidiary ledgers for Accounts Receivable and Accounts Payable only.

The company maintains a general ledger to record the increases and decreases in each asset, liability, owner$$s equity, revenue and expense account. Subsidiary ledgers are used to record the separate details of Accounts Receivable and Accounts Payable. The company maintains a periodic system to account for its inventory.

GOODS AND SERVICES TAX $($GST$)$

The company is registered for GST at the rate of $10\%$ and is required to pay GST on its purchases and to collect GST when making sales. The company uses a GST paid account for GST on purchases and a GST collected account for GST on sales $($for manual records$).$

YOUR ASSIGNMENT

The firm$$s in$-$house accountant has gone overseas for one month. You have been hired by Scallion Ltd to carry out the accounting duties in the accountant$$s absence$.$ This assignment provides you with the unadjusted trial balance at the end of May and requires you to record typical transactions for a retail business for the last month of the financial year. Once these transactions have been recorded and posted, you are required to complete the accounting cycle by journalising and posting adjusting and closing entries and preparing financial statements.