QUESTION THREE GENERAL LEDGER 21 MARKS

Gloria from Glorias Garden Ornaments Ltd has asked you to post the following transactions into her general ledger and take out a trial balance at the end of July. The opening balances have been entered for you (except for share capital).

Jul 9	Bought stock on credit, $1,200.
10	Paid $80 on the bank loan, including $10 interest.
	Cash Sales $1,800; cost price $1,300.
16	Paid wages $900.
	Sold ornaments on credit, $2,000; cost price $1,500.
18	Customer returned goods bought on credit $500; cost price $375.
20	Received 60% of the opening balance from debtors.
	Issued 5,000 shares for 50 cents each.
25	Paid $1,150 to a creditor.
31	Bought a new EFTPOS machine on credit, $8,000.

REQUIRED:

1. Calculate the opening balance for share capital and enter it in the share capital ledger account.
2. Post the transactions for July.
3. Balance the ledger accounts as at 31 July.
4. Take out a trial balance as at 31 July.

GLORIAS GARDEN ORNAMENTS LTD

GENERAL LEDGER

BANK
Jul 1	Balance	15,000

ACCOUNTS RECEIVABLE
Jul 1	Balance	1,000

INVENTORY
Jul 1	Balance	2,000

SHOP EQUIPMENT
Jul 3	Balance	25,000

ACCOUNTS PAYABLE
			Jul 1	Balance	2,300