Question
Transactions
Journalise the June transactions.
June 1 The owner opened a bank account for the business with a deposit of $24,200. This is capital provided by him. 1 Purchased shop equipment (computer, cash register, shelving etc.) from Shop Outfitters Pty Ltd for $44,760. This was paid for with a loan of $42,050 from the bank and cheque for $2,710 from the business bank account. The Bank loan is repayable over 4 years. 2 Purchased inventory (skateboards, roller blades, helmets and other protective gear) from Daintree Importers for $18,486 on terms on net 30. 2 Paid $3,528 for a 1-year insurance policy covering fire, theft, and public liability. 3 Paid rent of $2,000 for the shop for June. 6 Cash sale of a skateboard and protective equipment for $477 (Cost of sales $168). 7 Returned some protective gear to Daintree Importers that was faulty and received an adjustment note (credit note) from them for $155. 8 Credit sale to Serious Fun of skateboards and roller blades for $5,880 (Cost of sales $3,037). This customer was given terms of 5/10, n/30. 10 Purchased scooters from Scoot Imports for $10,640 on terms of 10/10, n/30. 14 Paid Daintree Importers $4,560 of the amount owing to them. 15 Credit sale to Action World of various inventory items for $6,530 (Cost of sales $3,025). Terms net 30. 16 Received a cheque from Serious Fun for the amount owing by them after deducting the prompt payment discount. 17 Paid Scoot Imports the amount owing to them less the prompt payment discount. 20 Credit sale to Toys Plus of 27 scooters at a discounted price of $401 each on terms of net 15. Cost of sales $6,430. 21 Cash sale of inventory to the value of $688 (Cost of sales $306). 22 Issued an adjustment note (credit note) to Action World for 5 helmets at $99 each that were not the style they prefer to sell. The cost of the helmets to us was $40 each and they were put back into inventory. 24 Paid wages to James Paget the sales assistant of $470 less PAYG Withholding of $38 for the five days he has been employed. In future he will be paid fortnightly. 27 The owner withdrew $910 cash from the business bank account for his own personal use. 28 Purchased scooters from Scoot Imports for $11,420 on terms of 10/10, n/30. 29 Received and banked a cheque from Toys Plus for the amount owing by them. 30 Credit sale to Serious Fun of scooters for $4,600 (Cost of sales $1,810). Terms 5/10, n/30. 30 A repayment of $1,100 was made on the bank loan.
Explanation / Answer
June 1 Bank A/c - Dr 24,200
To Capital 24,200
1 Shop Equipment A/c -Dr 44,760
To Bank Loan 42,050
To Bank A/c 2,710
2 Inventory A/c - Dr 18,486
To Daintree Importers 18,486
2 Insurance Premuim- Dr 3,528
To Bank 3,528
Prepaid Insurance-Dr 1,470
To Insurance 1,470
Note- Financial Year is assumed to be from January to December, so on that basis, policy is taken in month of june, so Insurance expense belonging to current Fianacial Year comes to be from June to December=7Months.So insurance amount comes to be=3528/12*7months=2,058 and prepaid insurance amount =3528-2058=1470
3 Rent A/c - Dr 2,000
To Bank 2,000
6 Cash A/c-Dr 477
Cost of Sales- Dr 168
To Sales 477
To Inventory 168
7 Daintree Importers- Dr 155
To inventory 155
8 Serious Fun-Dr 5,880
Cost Of Sales-Dr 3,037
To Sales 5,880
To Inventory 3,037
10 Scooters A/c-Dr 10,640
To Scoot Import 10,640
14 Daintree Importer-Dr 4,560
To Bank 4,560
15 Action World-Dr 6,530
Cost of Sales-Dr 3,025
To Sales 6,530
To Inventory 3,025
16 Bank A/c-Dr 5,586
Discount A/c-Dr 294
To Serous Fun 5,880
17 Scoot Imports A/c-Dr 10,640
To Bank 9,576
To Discount 1,064
20 Toys Plus-Dr 10,827
Cost Of Sales-Dr 6,430
To Sales 10,827
To Scooters 6,430
21 Bank A/c-Dr 688
Cost of Sales-Dr 306
To Sales 688
To Inventory 306
22 Sales Return-DR 495(99*5)
Inventory-Dr 200(400*5)
To Action World 495
To Cost Of Sales 200
24 Wages-Dr 470
To PAYG Witholding 38
To Bank 432
27 Drawing-Dr 910
To Bank 910
28 Scooters-Dr 11,420
To Scoot Imports 11,420
29 Bank -Dr 10,827(27 scooters*401)
To Toys Plus 10,827
30 Serious Fun-Dr 4,600
Cost Of Sales-Dr 1,810
To Sales 4,600
To Scooter 1,810
30 Bank Loan-Dr 1,100
To Bank 1,100
Journal For the Month of June Date Particular Debit Credit
