Question 10

1.On the 3^rd February this year, the business received a stationery order-invoice no.63957 for $75.96 from the Office Shop. On the 4^th February, the business sold a garden setting to TR Brown for $153.95. Invoice no.73958. Complete the journal entries.

Office supplies

Date

Docket

Details

Debit

Credit

Balance

1 Feb

Opening Balance

1,408.54

Trade creditors

Date

Docket

Details

Debit

Credit

Balance

1 Feb

Opening Balance

0

Sales

Date

Docket

Details

Debit

Credit

Balance

1 Feb

Opening Balance

11,983.45

Debtors

Date

Docket

Details

Debit

Credit

Balance

1 Feb

Opening Balance

986.32

2.You notice that the rent for May is recorded as $650 but should have been $560. Complete the general journal.

General Journal

Date

Details

Debit

Credit

3.Reconcile the cash journal and bank statement shown. What differences are there between the journal and the statement?

Cash journal

Cash at bank

DateChequeDetailsDebitCredit

14/1/XX770981P R Smith and Sons28.95

16/1/XX770982Car Works257.95

16/1/XX770983Office Supply Co45.50

16/1/XXDepositCash and Cheques750.25

18/1/XX770984Corner Service Centre135.00

Bank statement

DateDescriptionDebitCreditBalance

14JanXXOpening Balance17,025.46

16JanXXYour Cheque 770982257.9516,767.51

16JanXXAgency Deposit750.2517,517.76

16JanXXDirect Credit Dolling128.9817,646.74

18JanXXYour Cheque 770984135.0017,511.74

18JanXXYour Cheque 77098345.5017,466.24

18JanXXClosing Balance17,466.24

4.You notice the electricity account has been used instead of the Rent account for the sum of $750.00.Make the relevant correction.

General Journal

Date

Details

Debit

Credit