QUESTION 1

1. John & Daughters uses sales, purchases, cash receipts, cash payments and a general journal (ignore GST). The following column totals were taken from the entitys journals at the end of June (12 marks):

   1. Sales journal 2. Purchases journal 3. Cash receipts journal: (a) Cash (b) Accounts receivable (c) Sales (d) Discounts allowed

   $8 000 4 000 6 215 5 210 1 050 48

   4. Cash payments journal: (a) Cash (b) Accounts payable (c) Discounts received (d) Purchases

   $5 912 5 010 100 1 000

   The balance in the Accounts Receivable Control account on 1 June was $3000 and the Accounts Payable Control account balance was $4500.

   Required

   i. At the end of June, the total amount from the sales journal should be posted to what account or accounts?

   ii. At the end of June, the total amount from the purchases journal should be posted to what account or accounts?

   iii. For each column total in the cash receipts and the cash payments journals, specify whether it would be posted to the general ledger as a debit or a credit, and to which account.

   iv. After the amounts in the journals have been posted to the general ledger for June, what would be the balances in the Accounts Receivable Control and the Accounts Payable Control accounts?