Question 1

Raquet Cave Ltd had the following selected transactions during July 2018. All purchases and sales were on account. The cost of all inventory sold was 70% of the sales price. Raquet Cave Ltd is registered for GST and the transactions below are inclusive of GST.

July 1Purchased inventory from Tennis Australia Ltd for $8,800.

2Received invoice for freight inwards from Johnson Shipping on Tennis Australia purchase of $550.

3Made sales to Squash Club Ltd $1,980 and to Teeny Tennis Ltd $2,200.

5Purchased inventory from Grant and Sons $5,500.

8Received credit on inventory returned to Grant and Sons $550.

13Purchased store supplies from Raquet Supplies $990.

15Purchased inventory from Tennis Australia Ltd $3,960 and from Lepa Ltd $3,190.

16Made sales to Martin Ltd $3,795 and to Teeny Tennis Ltd $1,507.

18Received invoice for advertising from Dennisen Advertisements $594.

21Sales were made to Squash Club Ltd $341 and to Randee Ltd $3,080.

22Granted allowance to Squash Club Ltd for inventory damaged in shipment $55.

24Purchased inventory from Grant and Sons $3,960.

26Purchased equipment from Raquet Supplies $330.

28Received an invoice for freight from Johnson Shipping on Grant purchases of 24 July, $462.

30Sales were made to Martin Ltd $4,290.

Required:

Journalise the transactions above in the special journals and the general journal provided.