This section of the practical is designed to allow you to compare how a basic General Journal and Ledger System operates with a system of Specialised Journals. You should be taking note of the different data entry processes and the efficiencies that can be achieved as well as any difficulties that arise with the more complex system.

You have been provided with an excel file which contains the General Journal and Ledger Accounts. The necessary accounts as well as blank accounts to be used if needed have been included. You will need to complete this task by entering the relevant information into the excel spreadsheet provided. The opening and reversing entries have been completed for you.

You will be re-entering the transaction data from Completion Point 1 as well as a number of new transactions into the new system using specialised journals.

Task 1

Using the excel file provided for Completion Point 2 you must enter the transactions below into the Specialised Journals and then update the Ledger accounts as required. (The transactions below include previous transactions that you have completed using only the General Journal and a number of new transactions)

Transactions

June 3 Purchased 20 Bags of Make Your Compost Go Around on credit from Nutrients Plus for $400 and was charged $80 for delivery. All amounts are net of GST.

June 5 Sold 5 Pretty Little Plant Kits to Learn to Grow for a total of 247.50 (including GST)

June 6 Made a cash sale of $350 (net of GST) to Mark Charlie when they bought 10 bags of Make Your Compost Go Around.

Received a cheque from Community Gardeners as full payment of their account.

June 7 Purchased 90 Pretty Little Plant Kits from Bill and Bens Flowers. Each kit costs $18 (net of GST).

June 8 Sold 25 containers of Food for your Flowers to Community Gardeners for $20 each plus a delivery fee of $50. The total GST charged was $55

June 10 Issued Cheque number 666 to Bill and Bens Flowers as part payment of their account, the cheque amount was $1188.

June 11 Received $242 cash (GST included) for providing a landscaping plan to Heather Phils in preparation for redeveloping their front garden.

Transactions continued

June 14 Purchased 70 containers of Food for your Flowers from Bill and Bens Flowers for $7 each. A $70 delivery charge was also applied. (All amounts are net of GST)

June 15 Sold 30 sets of The Garden Tool Kit to the Local School Collective for $135 each plus a delivery fee of $60. (All amounts are net of GST)

June 16 Paid Dig n Smash Tools $4048 as full payment of the account after receiving an 8% discount for customer loyalty.

Made a cash payment of $1573 to So You Want To Be On Radio for the last months advertising campaign and a $286 cash payment to The Transport Department for vehicle registration.

June 18 Received a cheque from Senior Landscape Pros as full payment of their account less a 5% discount for early payment.

June 21 Began work on Heather Phils front garden redevelopment and received an initial cash payment of $3000 (net of GST) and explained the balance of $6000 would be due once the work was complete in mid-July.

June 25 Paid a total of $5,120 to two part time employees Manuel LAbor and Rose Szared to cover their May and June wages.

June 29 Sold 40 Pretty Little Plant kits to Senior Landscapes Pros on credit for $45 each (net of GST).

June 30 Made a cash payment of $1161.60 (including $105.60 GST) to Opstragin for the next 6 months telephone and internet usage.

A stocktake on June 30 reveals $4500 worth of inventory on hand and $105 of gardening consumables on hand.

Prepaid insurance was paid for 4 months in advance on May 1, 2021. Prepaid Telephone and Internet was paid for 6 months in advance on 31 December, 2020.

Depreciation is calculated using the following information and needs to be updated for the month of June

• Landscaping Equipment Reducing Balance Rate of 20%.
• Equipment Storage Shed Residual Value of $6,000, Useful Life of 20 years.
• Vehicle Reducing Balance Rate of 15%.

Task 2

Once you have completed the data entry above, you will need complete Schedules for Accounts Receivable and Accounts Payable and you will need to create a Balance Sheet dated 30 June 2021.

Remember at this point accuracy of data entry is being checked, however the majority of the marks will be awarded based on the fact that all transactions have been entered.