ACC101 Tutorial Qs
Aug.intake 2021 Week 6
Exercises
Exercise 6.1
Journal entries for both buyer and seller — periodic inventory system
Non- GST version
(a) Prepare general journal entries to record the following transactions (i) for Elwood
Ltd and (ii) for Balaclava Ltd. Both companies use a periodic inventory system.
(Assume neither is registered for GST.)
Elwood Ltd (Seller)
Balaclava Ltd (Buyer)
Debit
Credit
Debit
Credit
$
$
$
$
Apr3
A/R, Balaclava Ltd
3,250
Apr3
Purchases
3,250
Sales revenue
3,250
A/P, Elwood Ltd
3,250
5
Freight inwards
120
Cash at bank
120
7
SRA
420
7
A/P, Elwood Ltd
420
A/R, Bala…Ltd
420
PRA
420
8
Cash at bank
2,773.40
8
A/P, Elwood Ltd
2,830
Discount allowed
56.60
Cash at bank
2,773.40
A/R, Bala…Ltd
2,830
Discount received
56.60
(3250 – 420) X 2% = 56.60
(b)
A/R – CA in B/S
Sales – Income in I/S
SRA – Contra to Income in I/S
Cash at bank – CA in B/S
Discount allowed – Expense in I/S
Purchases – COS in I/S
A/P – CL in B/S
Freight inwards – COS in I/S
Cash at bank – CA in B/S
PRA – Contra to Purchases (COS) in I/S
Discount received – Income in I/S
(b) Indicate how each relevant account balance should be reported in the financial
statements of Elwood Ltd and Balaclava Ltd.
(LO3)
ACC101 Tutorial Qs
Aug.intake 2021 Week 6
Exercise 6.2
Journal entries — perpetual inventory system
Non-GST version
Using the perpetual inventory system, record the following transactions in the general
journal of Fitzroy Ltd (assume GST does not apply):
1. Purchased 240 units for $220 each on credit.
2. Returned 12 units to the supplier.
3. Sold 48 units for $380 each on credit.
4. Purchased office supplies for $360 cash.
5. Customer returned 6 of the units sold in (3).
6. Sold 42 units for $390 each on credit.
7. The physical inventory count at the end of the period consisted of 140 units of
inventory.
(LO3 and LO4)
1. Dr Inv & Cr A/P 52800
2. Dr A/P & Cr Inv. 2,640
3. Dr A/R & Cr Sales 18,240;
