Practical Completion Point 2

This section of the practical is designed to allow you to compare how a basic General Journal and Ledger System operates with a system of Specialised Journals. You should be taking note of the different data entry processes and the efficiencies that can be achieved as well as any difficulties that arise with the more complex system.

You have been provided with an excel file which contains the General Journal and Ledger Accounts. The necessary accounts as well as blank accounts to be used if needed have been included. This task needs to be completed by entering the relevant information into the excel spreadsheet provided. The opening and reversing entries have been completed for you.

You will be re-entering the transaction data from Completion Point 1 as well as a number of new transactions into the "new" system using specialised journals.

Task 1

Using the excel file provided for Completion Point 2 you must enter the transactions below into the Specialised Journals

Transactions

July 1Sold 40 Energy Saving light globes on credit to Unplugged Ltd for $440 (including GST).

July 2Received a cheque for $2475 from Developing Naturally as part payment of their account.

July 4Sold 2 Smart Meters to The Charity Stores for $350 each plus a $50 delivery fee (all amounts are net of GST)

July 6Issued Cheque number 718 to Flooded Industries. The cheque amount was $1752.30 and a discount of $194.7 (including GST of $17.70) was received for early payment.

July 8 Purchased 200 metres of premium low voltage cabling from Get Connected for $4 per metre, plus a freight charge of $50 and total GST of $85.

July 12Received $450 cash (net of GST) from Ms Elvia Marks for a full house inspection and energy usage report.

July 13Purchased 500 Energy Saving light globes for $3 each from Get Connected Ltd. The delivery charge was $100. All amounts are net of GST. Their invoice No: 726.

July 15Cash Sale of 12 Energy Saving light globes to Ms Christa Heathers for $10 each (net of GST).

Transactions continued

July 16Paid wages of $1,680 to Minnie's two part time employees Lei Zhee and Ena Jetic.

July 16Made a cash purchase of $60 stationery (net of GST) from Little M department store.

July 19Purchased 15 LED Lighting Kits for a total of $330 (GST inclusive) from Flooded Industries.

July 20Cash Sale to Mr D Rock of 5 LED Lighting Kits for a total of $275 (including GST)

July 20Received a cheque from Unplugged Ltd of $1166 being full settlement of their account.

July 21Sold 100 meters of premium low voltage cable to Unplugged Ltd for $20 per meter (net of GST)

July 23The office supplies account of $186 was paid in full in cash.

July 25Minnie Armim withdrew $1,050 cash for personal use.

July 27Sold 3 Smart Meters to Hotels United for $350 each plus a delivery fee of $100 (all amounts are net of GST)

July 29Paid all amounts owing to Reduce, Reuse, Get Rich.

July 30Made a cash payment of $921 (including $40 GST) to The Big Telco for the last two months telephone and internet usage.

A stocktake on July 31 reveals $4 140 worth of inventory on hand and $114 of stationery on hand.

Prepaid insurance was paid for 3 months in advance on June 30, 2020. Prepaid rent was paid for 6 months in advance on 1 June, 2020.

Depreciation is only calculated at the end of the financial year and so no adjustments are required for these accounts.

Date Details Posting Reference DR CR

1/07/20 Petty Cash Imprest 91 210.00

Bank 90 3,860.00

Accts Receiv Control 610 13,585.00

Unplugged Ltd - 726 x

The Charity Stores - 2310 x

Developing Naturally - 4455 x

Hotels United - 6094 x

Inventory on Hand 111 3,090.00

Stationery on Hand 113 130.00

Prepaid Insurance 115 1,800.00

Prepaid Rent 116 10,000.00

Equipment 140 6,400.00

Premises 150 140,000.00

Vehicle 150 23,000.00

Allow for Bad & Doubtful Debts 611 462.00

Acc. Dep'n - Equipment 141 1,460.00

Acc. Dep'n - Premises 151 21,000.00

Acc. Dep'n - Vehicle 161 229.00

Accts Payable Control 800 7,887.00

Get Connected Ltd- 4180 x

Reduce, Reuse, Get Rich - 1760 x

Flooded Industries - 1947 x

Office Supplies Owing 205 186.00 Internet & Tele. Exp Payable 210 481.00 Wages Expense Payable 220 862.00

GST 820 950.00 Big 4 Bank Mortgage Loan (5-yr) 250 123,000.00 Capital - Minnie Armin 303 45,558.00

Opening Entry 202,075.00 202,075.00

1/07/2020 Wages Expense Payable 220 862

Wages Expense 505 862

Reversing Entry

1/07/2020 Internet and Telephone Exp Payable 210 481.00

Internet and Telephone Exp 510 481.00

Reversing Entry

1/07/2020 Office Supplies Owing 205 186

Office Supplies Expense 520 186

Reversing Entry