Question 2, preapre general journal, sale journal, purchases journal, cash receipts journal and a cash payments journal.
Petty L ace Crafts, owned by Penny Buttons, is a shop selling locally produced crafts and toys. Penny keeps subsidiary ledgers for both debtors and creditors and records stock on a physical basis, i.e. Purchases Account is used when purchasing inventory Penny is registered for GST on the invoice basis and she employs a part- time shop assistant. (Record PAYE in the general journal.) On 1 February 2018, Penny had the following balances in her asset and liability accounts in the general ledger Cash at Bank 9,050.00 Accounts Receivable Control 4,150.00 65,100.00 9,780.00 Inventories Fixtures and Fittings Office Equipment Accounts Payable Control 1,800.00 5,715.00 1,578.00 GST Control (credit balance) 372.00 PAYE Payable (credit balance) Schedule of Accounts Receivable: 1,600.00 C Fisher 700.00 Maggie Jones 1,850.00 Lucky Markets Schedule of Accounts Payable: 2,050.00 Heartland Hobbies ,620.00 Kamo Crafts 2,045.00 Fyfe Pty Ltd All figures are GST inclusive where appropriate Round all figures to the nearest 2 decimal places. During February the following transactions took place: Feb 2 Sold goods on credit to Maggie Jones, $600.00 Paid $480 for rent of premises (2 weeks) 4 Banked cash sales, $897 Sold goods on credit to F. Wynn (a new customer) for $1.265 5 Received a cheque for $1,425.00 from C Fisher in full settlement of his December Account (i.e. a discount was allowed). X Purchased new desk and chair (Furniture and Fittings) for $475.00 from Regent Office Supplies on credit. 6 Purchased a new computer (Office Equipment) from NextGen PC's and paid cash, $1,564. Received telephone account from Telecom, $285.20, due 25 February Paid $1,500 to Kamo Crafts in full settlement of Account owing at 1st February. (I.e. we received a cash discount.) x Purchased inventory on credit from Ride-On Toys (a new supplier) for $980.00 7 Paid cash for stationery, $189.75 Withdrew cash from bank for drawings. $550 x 8 Paid wages, $364.50 (Gross S450, PAYE Payable $85.50) x 12 Banked cash sales, $1,104 Returned a damaged scooter, which cost $287.50, to Ride-on Toys 15 Sold goods on credit to Lucky Markets, $644. Withdrew cash from bank for drawings, $550 x 16 Maggie Jones paid $500 off their account. X Paid $480 rent (2 weeks). V Paid wages $364.50 (Gross S450, PAYE Payable on credit from Heartland Hobbies for $1,821.60 ccount from Northland News for advertising, $224.25 ntory on credit from Fyfe Pty Ltd for $1,250.00 tationery on credit from Regent Office Supplies, $184. credit to Maggie Jones, $977.50 owed at 31 January for PAYE Payable X IRD $372 owed at 31 Janua Paid IRD ay Ltd amount owing on 1 February 8 Paid Fyfe Pty Ltd Design a suitably numbered Chart of Accounts that will suit Penny's business. (4 marks) 2. Prepare a general joumal, sales journal, purchases journal, a cash receipts journal and a cash payments journal to record the transactions for the month of February. (Note: Sales Retums and Purchases Returns are recorded in the general journal.) (26 marks) 3. Open General Ledger accounts and Subsidiary Ledger accounts to reflect Penny's financial position as at 1 February 2018 (1 mark) Post all of the above journals to the appropriate General Ledger and Subsidiary Ledgers, adding new accounts as necessary 4. (20 marks) 5. Prepare the subsidiary ledger reconciliations (2 marks) Prepare a Trial Balance as at 31st February 2018 6. (2 marks)
