Principles of Accounting

Q1. Accounting with sales journal and purchases journal (20 Marks) (GST version) Top Traders Lid uses sales and purchases journals in its accounting system. The following transactions occurred during April 2019 April Purchased merchandise on account from Smythe Lid, invoice 354, $1500, terms 2/10, n/30. 10 Purchased merchandise on account from Ellis Lid, invoice 376, $780, terms 2/10, n/30. Sold merchandise on account to B. Morran, invoice 345, $2280. 16 Sold merchandise on account to Bryde Lid, invoice 346, $2640. 19 26 Purchased merchandise on account from R. Rober, invoice 828, $630, terms 2/10, n/30. 29 Sold merchandise on account to G. Green, invoice 347, $1840. Sold merchandise on account to Bryde Lid, invoice 348, $1200. Required (a) Complete the requirements below, assuming that the business is registered for the GST. i. Establish all necessary general ledger accounts, accounts receivable subsidiary ledger accounts, and accounts payable subsidiary ledger accounts. Use the following account numbers: Accounts Receivable, 1200; GST Receivable, 1300; Accounts Payable, 2200; GST Payable, 2300; Sales, 4100; Purchases 5100. (5 Marks) ii. Enter the transactions for April in the appropriate special journals. (5 acer Marks) iii. Post the data from the journals to the general ledger and subsidiary accounts. (5 Marks) iv. Prepare a schedule of the accounts receivable subsidiary ledger and the accounts payable subsidiary ledger as at 30 April to prove that their totals are equal to the balances of the control accounts