Question 1: Answer ALL questions [24 Marks]

Fox Ltd had the following transactions during the month of September. The business is registered for GST and all transactions provided below are INCLUSIVE of GST.

September 1 Sold inventory on account to J Jurb, for $3,850, terms 2/10, n/30.

1. Borrowed $9,000 cash from the bank at 10% p.a. Interest accrues monthly on the loan.

8 Made cash sales for the week totaling $2,178

10. Sold inventory on account to T Wyse, for $638, terms 1/7, n/30.

11 Received payment from J. Jurb.

17 Sold inventory on account to J Raffe, for $4,400, terms 2.5/14, n/30.

18 Jamie Fox (the owner) invested additional cash of $6,500 into the business.

19 Issued a credit note to J.Raffe for returned goods sold on credit for $440.

23 Sold inventory to P Donald for $1,100 cash

30 Received payment from J. Raffe.

30 Purchased store furniture on credit terms from Cortina Ltd for $6,050, terms n/60.

Required:

1. Record the transactions for the month of September in the journals provided below Total the special journals. Ignore narrations. Round amounts to the nearest whole $.

2. Post the necessary entries to the GST Collected account in the General Ledger. Balance and total the account.

3. Since all necessary detail is recorded in subsidiary ledgers for customers, Accounts Receivable Control account in the general ledger could be dispensed with. Discuss.